Aug 6 (Reuters) -

Prudential Financial ( PRU ) reached a $100 million

settlement to resolve U.S. Federal Trade Commission civil

charges that its Assurance IQ unit misled consumers into buying

healthcare plans that did not provide the promised coverage.

A settlement with Assurance, which Prudential shut down last

year, was filed on Wednesday in Seattle federal court.

Assurance was accused of misleading consumers needing

low-cost insurance, both online and in telemarketing, into

believing its plans provided comprehensive coverage and

essential health benefits of the sort provided under the

Affordable Care Act.

The FTC said Assurance claimed its plans would substantially

lower medical bills but failed to disclose significant coverage

and benefits restrictions, "leaving consumers exposed to

unexpected and significant out-of-pocket healthcare expenses."

Assurance did not admit or deny wrongdoing. A lawyer for

Prudential had no immediate comment, and the Newark, New

Jersey-based company did not immediately respond to requests for

comment.

Prudential

bought Assurance IQ

for $2.35 billion in 2019, three years after the startup

was founded in Bellevue, Washington, a Seattle suburb.

At the time, Prudential said Assurance's

direct-to-consumer platform would reach an under-served mass

market for health services, including an estimated 17 million

customers needing insurance.

Prudential decided to wind down Assurance in early 2024,

after taking $2.14 billion of goodwill writedowns in the three

previous years.

The case is FTC v Assurance IQ LLC, U.S. District Court,

Western District of Washington, No. 25-01485.