Nationwide agrees to settle lawsuit by policyholders
Article Abstract:
Nationwide Life Insurance Co. agreed to pay an estimated $100 million to policyholders to settle a class action lawsuit. The suit was filed in state Supreme Court in Syracuse, N.Y. in February 1997. The suit alleged that Nationwide agents misled customers to believe that certain life insurance policies would pay for themselves over many years through "vanishing premiums." An estimated 650, 000 customers are covered by the settlement. Nationwide said it settled to avoid a costly court fight. The company admitted no wrongdoing.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Mutually owned Met Life plans conversion, IPO
Article Abstract:
Metropolitan Life will follow Prudential Insurance Co. of America and John Hancock Mutual Life in demutualizing, making all policyholders stockholders by the end of 1999. Approximately 12 to 13 million policyholders will own about $14 billion in stock value. The company would have preferred a hybrid structure of public and mutual ownership, but recently passed New York insurance law now prohibits that. With stock as currency, the company will be able to grow with greater responsiveness to be more competitive.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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