Northwestern Mutual Life Insurance Co. has agreed to settle a class action lawsuit for up to $92 million.
The lawsuit accused Northwestern Mutual of failing to pay dividends on certain term life policies and using improper sales and marketing practices.
The lawsuit was filed four years ago by a customer in California who said the insurer’s sales materials misled him about whether dividends would be paid on term life and disability insurance.
Northwestern Mutual denies the lawsuit’s allegations. Company spokeswoman Jean Towell says they decided to settle to avoid “the uncertainty and expense of litigation.”
The proposed settlement covers about 1.3 million current and 1.6 million former policy owners who purchased term life or disability coverage since 1981.
Topics Lawsuits
Was this article valuable?
Here are more articles you may enjoy.
NAIC Victim of Cyber Incident Via PeopleSoft System 
Ship Insurers Set for Major Claims From Iran War, Allianz Says 
What Happens to Property Pricing in ’27, Insurance, Reinsurance Execs Ask 
More Americans Are Moving Away From Flood Risk Than Toward It 
