New York State Department of Financial Services Fines Underwriters At Lloyd’s Of London, Clements & Company And United Nations Federal Credit Union $1.47 Million For Underwriting And Selling Unlicensed Life Insurance To U.N. Employees - Settlement with DFS Establishes New Licensed Program To Ensure UN Employees Are Fully Protected Under New York Law

Financial Services Superintendent Maria T. Vullo today announced that the Department of Financial Services (DFS) has entered into a consent order with Clements & Company, Underwriters at Lloyd’s of London, and the United Nations Federal Credit Union (UNFCU) for offering, marketing and underwriting an unlicensed credit and debit card-based life insurance program for UNFCU members.  The order requires the parties to pay a total of $1.47 million in fines for unlicensed life insurance business and to establish an insurance program with a DFS-licensed insurer.  The insurance program offered guaranteed-issue term life insurance to UNFCU’s members in more than 210 countries and territories.  A total of more than 4,300 policies were sold, including to 804 members listing New York as their primary location.