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Prudential withdraws quotes

Date: Wed, 16 Apr 03 Analysis

LONDON, UK - Insurance group Prudential has been accused of failing to honour thousands of insurance quotes dating back only a couple of months, according to today's Guardian.

It has withdrawn a number of deals following unexpectedly high interest in its best-buy life insurance and critical illness policies.

New higher rates have been introduced and applied retrospectively to thousands of applications agreed to by individuals on the basis of earlier quotes.

The specialist life insurance broker, LifeSearch, described the Pru's actions as 'cavalier' and is currently engaged in discussions with its solicitors.

Prudential explained it was under no obligation to honour quotes, stating: 'The rates we had on offer, we have sold out of. From yesterday [Monday] we have changed the rates.'

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