(wire)
Nationwide reaches $2.1M settlement
Nationwide Life Insurance Co. has agreed to pay $2.1 million to five state insurance regulators over claims involving allegedly unsuitable variable annuity sales.
The nine-year-old claims involve regulators in California, Kansas, Minnesota, Missouri and Wisconsin.
The charges stem from events in 2001 and 2002 when advisors advertised two new variable annuities that were developed by Nationwide.
According to allegations, clients were encouraged to switch from other contracts into the Nationwide products, leading to the surrender of nearly 7,000 annuities valued at $616 million.
As part of the settlement, Nationwide will offer to reimburse those affected for their surrender charges and provide an option to rescind some of the riders purchased with the annuities.
According to Nationwide spokesman Chad Green, "We feel it is the best interests of all parties to settle these matters rather than to continue to engage further resource to them. This settlement resolves the matter and allows Nationwide and the participating states to move on."
Nationwide entered the agreement without any admission of wrongdoing, saying it has cooperated fully with regulators in order to reach the settlement.
The nine-year-old claims involve regulators in California, Kansas, Minnesota, Missouri and Wisconsin.
The charges stem from events in 2001 and 2002 when advisors advertised two new variable annuities that were developed by Nationwide.
According to allegations, clients were encouraged to switch from other contracts into the Nationwide products, leading to the surrender of nearly 7,000 annuities valued at $616 million.
As part of the settlement, Nationwide will offer to reimburse those affected for their surrender charges and provide an option to rescind some of the riders purchased with the annuities.
According to Nationwide spokesman Chad Green, "We feel it is the best interests of all parties to settle these matters rather than to continue to engage further resource to them. This settlement resolves the matter and allows Nationwide and the participating states to move on."
Nationwide entered the agreement without any admission of wrongdoing, saying it has cooperated fully with regulators in order to reach the settlement.
