New York Attorney General Andrew Cuomo says his office has opened a fraud investigation into the life insurance industry.

Cuomo announced Thursday that his office had served subpoenas on Prudential Financial, Inc., and MetLife, Inc., as part of its inquiry.

The attorney general's office is investigating whether insurers are profiting from grieving families by placing funds from life insurance policies into potentially risky accounts controlled by the companies. The office says it appears companies are earning interest from the accounts, while paying out low yields to beneficiaries.

MetLife said it had not received the subpoena and therefore could not comment.

Prudential Financial, Inc. didn't immediately respond to an e-mailed request for comment about the investigation.

- AP

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