Northwestern Mutual Life Insurance Co. will pay a $287,000 penalty in a settlement reached with the Vermont Department of Financial Regulation for improperly calculating interest, the result being underpayments to life insurance beneficiaries.
The company will also be required to report quarterly to the department on its claims payments for the next two years. Northwestern Mutual also provided full restitution to all Vermonters who were underpaid.
“Our department strives to ensure Vermonters receive the full benefit of their bargain and the full protection of our laws. I am pleased Northwestern Mutual provided restitution to every impacted Vermonter and agreed to a substantial penalty to resolve this matter,” said Michael Pieciak, commissioner of the Department of Financial Regulation. “The settlement also ensures this will not happen again by requiring Northwestern Mutual to change its procedures and system safeguards.”
Since the investigation began, Northwestern Mutual has provided accurate information, began a comprehensive system overhaul, and improved its supervisory procedures, state officials said, calling the company’s response forthcoming, detailed and timely.
Pieciak credited staff members Chris Rouleau, Izzi Keiser and Jennifer Rood for their work on the settlement.Vermonters with insurance concerns can contact the consumer services section of the Vermont Department of Financial Regulation at 802-828-3302 or 800-964-1784, or email dfr.insuranceinfo@vermont.gov.
