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New York Life Settles Lawsuit Over Alleged Excessive Fees in Its 401(k) Plans

"New York Life Insurance Co. has settled a class-action lawsuit for $3 million with participants in two company 401(k) plans ... Plan participants said two New York Life 401(k) plans should have searched for S&P 500 index funds that were cheaper than New York Life's MainStay S&P 500 fund. 'From 2010 to 2016, the plans' fiduciaries did not act in the best interests of the plans and their participants,' the lawsuit said."

The Price of New York Life's 401(k) Lawsuit: $19M

"New York Life has agreed to pay $19 million to end a lawsuit over the company's use of its own investment products in its 401(k) plans. The agreement ... will bring to a close a three-year old case that accused the insurance company of breaching its fiduciary duty to its employees." [Krohnengold v. New York Life Ins. Co., No. 21-1778 (S.D.N.Y. Aug. 10, 2022; proposed settlement agreement filed Feb. 26, 2024)]

Second Circuit: New York Law Prohibits Insurance Company from Offsetting Personal Injury Settlement Against Long Term Disability Benefits

"Arnone argued that, because he is a New York resident who was employed in New York and injured in New York, N.Y. Gen. Oblig. Law Section 5-335 applies to his settlement and prohibits Aetna from reducing his LTD benefit.... [T]he court found that: [1] section 5-335 would prohibit Aetna's offset action as a matter of law and, for that reason, would render its decision arbitrary and capricious; [2] section 5-335 is a law that regulates insurance and is saved from express preemption under ERISA; [3] the Plan's choice of law provision sets forth only which jurisdiction's law of contract interpretation and contract construction will be applied, it does not bind the court to apply the full breadth of Connecticut law[.]" [Arnone v. Aetna Life Ins. Co., No. 15-2322 (2d Cir. June 22, 2017)]

New York State Fines Pacific Life for Pension Risk Transfer Violations

"New York state investigations ... found that, in 2016 and 2019, the company bid on and won two large transactions with a New York-based sponsor, in violation of state insurance laws.... This enforcement action is the third penalty from DFS against unlicensed insurance businesses that have solicited and engaged in violations connected to PRT businesses. "

Text of DOL Amicus Brief Supporting Money Damages Against Employer as Fiduciary in Life Ins. Case

Callery v. The United States Life Insurance Company in New York, No. 03-4097 (filed with 10th Cir. on Aug. 20, 2003). Excerpt: Star Buffet offered life insurance coverage to its employees through a policy issued by United States Life Insurance Company ... Callery was never provided with a summary plan description that outlined the life insurance policy's scope of coverage and exclusions, nor had the insurance policy itself been distributed to Callery or other Star Buffet employees.

Investing Your Lump Sum at Retirement (PDF)

Excerpt: This essay is based, in part, on a study by the same authors entitled 'Rational Decumulation,' Wharton Financial Institutions Center Working Paper #06-14, May 2007. That study was co-sponsored by the Wharton Financial Institutions Center and New York Life Insurance Company. The usual disclaimer applies. http://fic.wharton.upenn.edu/fic/papers/06/p0614.htm

District Court Grants Defendant's Motion to Transfer Venue to Plaintiff's Resident District for ERISA Disability Benefits Claim

"Noting ERISA's broad venue provisions permitting jurisdiction 'where the plan is administered, where the breach took place, or where a defendant resides or may be found' ... the Court found that venue in the District of Utah would be proper as Plaintiff resided and worked in Utah, received benefits checks in Utah, and had his benefits terminated while residing in Utah. As to the second requirement, whether transfer is appropriate and in the interest of justice, the Court considered nine factors ... [and] concluded that the District of Utah was clearly the proper forum for the matter[.]" [Penrose v. New York Life Insurance Company & Life Insurance Company of North America, No. 22-2184 (S.D.N.Y. Sep. 22, 2023)]

N.Y. Insurance Co. Exec: 'Life Will Go On,' Expensively, Without Individual Mandate

"If the Supreme Court strikes down the health law, New York would be in a somewhat unique position, according to David Abernethy, a senior vice president of EmblemHealth [whose companies] insure almost 3 million people in the state. Abernethy says unlike other states, New York already requires insurers to cover all applicants, regardless of health status- that's known as 'guaranteed issue.'" [Video and transcript of interview at link.]

This Is Not Your Parents' Health Insurance

"Oscar is not your typical health insurance company. The New York City startup -- the first new health insurer in years -- is run by veterans of many of Silicon Valley's biggest names. And the way the company's founders see it, your insurance should play a bigger role in your life -- not just handling claims, but using technology to keep medical life organized."

Fidelity Suspends MetLife Annuity Sales as Insurer Mulls Breakup

"Fidelity Investments, the second-largest U.S. mutual fund company, suspended sales of MetLife Inc.'s annuities as the life insurer weighs a possible sale, spinoff or public offering of a retail unit that provides the retirement products.... The loss is a setback for MetLife, the largest U.S. life insurer, which has declined about 21 percent this year in New York trading. The insurer's Accumulation Annuity and Growth and Income Annuity are no longer available to new investors through Fidelity[.]"