Jefferies Finance Llc

Summary: HUD'S MORTGAGE REVIEW BOARD ISSUED A NOTICE OF VIOLATION AND A NOTICE OF INTENT TO SEEK CIVIL MONEY PENALTIES INFORMING MASSMUTUAL OF HUD'S INTENT TO TAKE AN ADMINISTRATIVE ACTION OR IMPOSE CIVIL MONEY PENALTIES PURSUANT TO 12 U.S.C. § 1708 AND 1735F-14, AND 24 C.F.R. PARTS 25 AND 30, ON THE BASIS OF MASSMUTUAL'S FAILURE TO COMPLY WITH HUD-FHA'S ANNUAL CERTIFICATION REQUIREMENTS WITH RESPECT TO FISCAL YEAR ENDING DECEMBER 2012. THE BOARD THEN ISSUED A NOTICE OF ADMINISTRATIVE ACTION WITHDRAWING MASSMUTUAL'S FHA APPROVAL. MASSMUTUAL HAS SINCE SUBMITTED THE REQUIRED DOCUMENTATION AND PAID A $7,500 CIVIL MONETARY PENALTY. THE MORTGAGE REVIEW BOARD HAS RESCINDED THE NOTICE OF ADMINISTRATIVE ACTION AND REINSTATED MASSMUTUAL AS AN APPROVED TITLE II MORTGAGEE. ON NOVEMBER 17, 2014, AN ADMINISTRATIVE LAW JUDGE WITH HUD'S OFFICE OF HEARINGS AND APPEALS DISMISSED THE MATTER, WITH PREJUDICE.

Summary: THE DEPARTMENT CONDUCTED A MARKET CONDUCT EXAMINATION FOR THE PERIOD OF JANUARY 1, 2007 THROUGH NOVEMBER 30, 2009, FINDING THAT MASSMUTUAL, C.M. LIFE, AND MML BAY STATE VIOLATED REGULATIONS RSA 408:29; RSA 409-A:5, INS 401.12, AND RSA 417:4I(H) CONCERNING CONTRACT ANNUITIZATION AT MATURITY PROCEDURESAND PROCESS. MASSMUTUAL, C.M. LIFE, AND MML BAY STATE WERE ORDERED TO SUBMIT A PROPOSED CORRECTIVE PLAN OF ACTION WITH RESPECT TO POLICIES AND PROCEDURES FOR FORECED ANNUITIZATION AT MATURITY AND A PROPOSED RESTITUTION PLAN FOR ANY LOSSES SUSTAINED BY CONSUMERS RELATED TO THE FINDINGS OF THE MARKET CONDUCT EXAMINATION REPORT.

Summary: A MARKET CONDUCT EXAMINATION BY THE STATE OF CONNECTICUT, DEPARTMENT OF INSURANCE WAS CONDUCTED FOR THE PERIOD JANUARY 1, 2014 THROUGH DECEMBER 31, 2016 OF MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY. MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY ("MASSMUTUAL") IS THE ULTIMATE PARENT OF MML INVESTORS SERVICES, LLC ("MML INVESTORS SERVICES"). AT THE CONCLUSION OF THE EXAMINATION, THE INSURANCE DEPARTMENT ALLEGED THAT MASSMUTUAL VIOLATED SUBSECTIONS 38A-15 AND 38A-702M OF THE CONNECTICUT GENERAL STATUTES. DURING THE PERIOD UNDER EXAMINATION (JANUARY 1, 2014-DECEMBER 31, 2016), THE CONNECTICUT INSURANCE DEPARTMENT ALLEGED THAT MASSMUTUAL IN CERTAIN INSTANCES, FAILED TO FOLLOW ESTABLISHED PRACTICES AND PROCEDURES TO ENSURE COMPLIANCE WITH STATUTORY REQUIREMENTS RESULTING IN INSTANCES OF: 35 PRODUCERS ACTING AS AGENTS WITHOUT BEING APPOINTED; 1 INSTANCE WHERE IT FAILED TO RETURN PREMIUM IN A TIMELY MANNER; 5 INSTANCES WHERE IT FAILED TO PROVIDE DOCUMENTATION FOR REGULATORY REVIEW; AND 1 INSTANCE WHERE IT FAILED TO RESPOND TIMELY TO A WRITTEN REQUEST FOR INFORMATION. MASSMUTUAL AGREED TO PROVIDE THE DEPARTMENT WITH A SUMMARY OF ACTIONS TAKEN TO COMPLY WITH THE RECOMMENDATIONS IN THE MARKET CONDUCT REPORT WITHIN 90 DAYS AND MASSMUTUAL AGREED TO PAY A FINE IN THE AMOUNT OF $61,000.

Summary: THE NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES ("DFS") COMMENCED AN INVESTIGATION FOR THE PERIOD OF 1/1/2012-5/31/2018. DURING ITS INVESTIGATION, DFS IDENTIFIED A PRACTICE ARISING FROM THE REPLACEMENT OF DEFERRED ANNUITY CONTRACTS WITH IMMEDIATE INCOME ANNUITY CONTRACTS IN VIOLATION OF THE DISCLOSURE AND SUITABILITY REQUIREMENTS OF NEW YORK REGULATIONS 60 AND 187. IT WAS ALLEGED THAT MASSMUTUAL SOLD OR ISSUED 692 REPLACEMENT CONTRACTS TO CONSUMERS WITHOUT REASONABLE BASES TO BELIEVE THE ANNUITIES AT ISSUE WERE SUITABLE IN SOME INSTANCES, AND WITHOUT PROVIDING CONSUMERS WITH THE REQUIRED ANNUITIZATION INFORMATION FOR REPLACED DEFERRED ANNUITIES. IT WAS ALSO ALLEGED THAT MASSMUTUAL DID NOT ESTABLISH A SUPERVISORY SYSTEM DESIGNED TO ACHIEVE COMPLIANCE WITH RULE 187 IN CONNECTION WITH THE DEFERRED-TO-IMMEDIATE REPLACEMENTS AT ISSUE.

Allegations: ON MARCH 17, 2022, THE COMMISSIONER OF INSURANCE OF PUERTO RICO ISSUED AN ORDER AGAINST MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY STATING THAT THE COMPANY HAD VIOLATED ARTICLES 11.230 AND 27.160 OF THE PUERTO INSURANCE CODE, 26 LPRA SECTIONS 1123 AND 2716, FOR WHICH AN ADMINISTRATIVE FINE OF $3,000 WAS IMPOSED. MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY WAS ORDERED TO RESCIND THE POLICY IN DISPUTE AND RETURN TO THE APPLICANT (COMPLAINANT) THE AMOUNT OF $65,000, CORRESPONDING TO THE UNDULY COLLECTED PREMIUM. MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY ALSO WAS ORDERED TO CEASE AND DESIST FROM THE PRACTICES DESCRIBED IN THE ORDER. GIVEN THE ACCEPTANCE AND COMMITMENT OF MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY TO TAKE THE NECESSARY MEASURES TO AVOID SIMILAR MATTERS IN THE FUTURE, THE INSURANCE COMMISSIONER OF PUERTO RICO AGREED TO MODIFY THE ADMINISTRATIVE FINE TO $1,500. Status: Final Sanction Detail: ON MARCH 17, 2022, THE COMMISSIONER OF INSURANCE OF PUERTO RICO ISSUED AN ORDER AGAINST MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY STATING THAT THE COMPANY HAD VIOLATED ARTICLES 11.230 AND 27.160 OF THE PUERTO INSURANCE CODE, 26 LPRA SECTIONS 1123 AND 2716, FOR WHICH AN ADMINISTRATIVE FINE OF $3,000 WAS IMPOSED. MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY WAS ORDERED TO RESCIND THE POLICY IN DISPUTE AND RETURN TO THE APPLICANT (COMPLAINANT) THE AMOUNT OF $65,000, CORRESPONDING TO THE UNDULY COLLECTED PREMIUM. MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY ALSO WAS ORDERED TO CEASE AND DESIST FROM THE PRACTICES DESCRIBED IN THE ORDER. GIVEN THE ACCEPTANCE AND COMMITMENT OF MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY TO TAKE THE NECESSARY MEASURES TO AVOID SIMILAR MATTERS IN THE FUTURE, THE INSURANCE COMMISSIONER OF PUERTO RICO AGREED TO MODIFY THE ADMINISTRATIVE FINE TO $1,500. Summary: ON MARCH 17, 2022, THE COMMISSIONER OF INSURANCE OF PUERTO RICO ISSUED AN ORDER AGAINST MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY STATING THAT THE COMPANY HAD VIOLATED ARTICLES 11.230 AND 27.160 OF THE PUERTO INSURANCE CODE, 26 LPRA SECTIONS 1123 AND 2716, FOR WHICH AN ADMINISTRATIVE FINE OF $3,000 WAS IMPOSED. MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY WAS ORDERED TO RESCIND THE POLICY IN DISPUTE AND RETURN TO THE APPLICANT (COMPLAINANT) THE AMOUNT OF $65,000, CORRESPONDING TO THE UNDULY COLLECTED PREMIUM. MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY ALSO WAS ORDERED TO CEASE AND DESIST FROM THE PRACTICES DESCRIBED IN THE ORDER. GIVEN THE ACCEPTANCE AND COMMITMENT OF MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY TO TAKE THE NECESSARY MEASURES TO AVOID SIMILAR MATTERS IN THE FUTURE, THE INSURANCE COMMISSIONER OF PUERTO RICO AGREED TO MODIFY THE ADMINISTRATIVE FINE TO $1,500.