New York Attorney General Andrew M. Cuomo says his office has opened a "major fraud investigation" into the life insurance industry.
Cuomo announced Thursday that his office had served subpoenas on Prudential Financial (PRU) and MetLife (MET) as part of the probe.
The attorney general's office is investigating whether insurers are profiting off of grieving families by placing funds from life insurance policies into potentially risky accounts that the companies control. The office says it appears companies are earning interest off the accounts, while paying out low yields to beneficiaries.
MetLife said it had not received the subpoena and therefore could not comment.
Prudential Financial says it will fully cooperate with the attorney general's investigation.