REPRESENTING PRUDENTIAL DISABILITY INSURANCE POLICYHOLDERS

REPRESENTING PRUDENTIAL DISABILITY INSURANCE POLICYHOLDERS

Prudential Financial (NYSE: PRU) is the holding company for all operations, making Prudential Insurance (the company’s former name) a subsidiary and pure life insurer. It offers a variety of financial and insurance services to individuals and businesses. The company primarily conducts its insurance business through its Insurance Division where its insurance products include life insurance, long-term and short-term group disability insurance, long-term care insurance, accidental death and dismemberment policies as well as other insurance coverage plans. In a cost cutting move, Prudential reduced its operating divisions to Insurance, Investments, and International Insurance & Investments (in addition to the Retirement division formed with the Cigna acquisition) and sold its national personal-lines property/casualty unit to Liberty Mutual.   Prudential experienced scrutiny by several states because of “churning,” a process in which agents generated commissions by inducing policyholders to trade up to more expensive policies. In 1996 regulators from 30 states found that Prudential knew about the churning earlier than it had admitted, had not stopped the practice, and had even promoted wrongdoers. A 1997 settlement called for the company to pay restitution, but the more than $2 billion estimated cost was thought to be less than the losses customers had suffered.   As the financial services industry continued to restructure, Prudential in 1998 announced plans to demutualize. To focus on life insurance, the company sold its health care unit to Aetna in 1999. The same year, Prudential paid $62 million to resolve more churning claims, revamped itself into international, institutional, and retail divisions, and trimmed jobs.   For help regarding your Prudential disability insurance claim, fill out the Schwartz, Conroy & Hack contact form here or call us toll-free at 1-800-745-1755.