
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, December 28, 1993                   TAG: 9312280112
SECTION: BUSINESS                    PAGE: A7   EDITION: STATE 
SOURCE: Newsday
DATELINE: NEW YORK                                LENGTH: Short

METLIFE FIRES EXECUTIVES IN SCANDAL

In an effort to put a growing scandal behind it, Metropolitan Life Insurance Co. Monday announced the firing, resignation or retirement of seven executives, a restitution effort for policyholders that could cost as much as $30 million and a new compliance program to monitor agents.

Harry P. Kamen, chairman and chief executive, described how MetLife had ignored warning signs of unethical practices that he said began in its Tampa, Fla., office and spread elsewhere.

"You could say the company is a little too trusting," he said, referring to incidents in which auditors told executives to stop certain practices and assumed the orders had been carried out. He said auditors at the home office uncovered practices in Tampa that were counter to MetLife policy. Although the problems were reported to the appropriate executives, no action was taken.

The company is under investigation in several states including New York, Florida, Texas and Pennsylvania. State regulators applauded MetLife's actions but said they would continue their investigations.

by CNB