Article: BIG INSURANCE SETTLEMENT HAS DRAWBACKS.(Business)(Column)

In theory, tens of thousands of people stand to benefit from the class-action lawsuits brought against several major life insurance companies.

Prudential, Metropolitan Life, New York Life and Phoenix Mutual have agreed to nationwide restitution after being charged with misleading sales practices. Prudential, which recently agreed to pay $90 million in legal fees, started notifying 10.7 million policyholders last week. Cases are pending against John Hancock and Equitable, among others.

But for one reason or another, many people who ought to benefit from the settlements won't. Insurance companies mail out information. But bilked policyholders may not ...

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