Pacific Life Insurance Co. will pay a $3 million penalty to New York state for violations of state insurance law related to its pension risk transfer business.
The penalty was assessed by the New York State Department of Financial Services, which said Pacific Life solicited and completed two unauthorized pension risk transfer transactions with New York-based corporate pension plan sponsors in 2016 and 2019, according to a news release from the department. The firm is not licensed as an insurer in New York.
Along with the fine from the state's department of financial services, Pacific Life is transferring future transactions to its New York-based subsidiary, Pacific Life & Annuity Co., the release said.
It is the third PRT-related action by DFS against an insurer. Early in 2021, American International Group paid a $12 million penalty related to the pension risk transfer business of subsidiary American General Life Insurance Co., and in 2020 Athene Holding Ltd. paid a $45 million penalty related to the pension risk transfer business of subsidiary Athene Annuity & Life Co.
"Pacific Life has taken the necessary steps to resolve the issue with the NYDFS and has implemented necessary changes to ensure proper pension risk-transfer business practices in New York moving forward," Pacific Life spokeswoman Jesse Page said in an email.