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.
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