Massachusetts Attorney General Tom Reilly says he reached a settlement with Nationwide Life Insurance Company Inc. yesterday following an investigation of allegedly misleading insurance policies sold between 1997 and 2001.
The settlement calls for Nationwide, Columbus, Ohio, to pay $650,000 in restitution and aid to consumers. It also calls on the company to change sales practices called into question after some consumers alleged the company deceived them into buying policies that exceed their financial means.
Nationwide sold the policies in Massachusetts through local brokers under the New England Advisory Group, Reilly says.
The lawsuit alleged Nationwide misled consumers into accepting policies that were unclear about investment benefits and premium costs. As a result, many consumers saw their policies lapse when they were unable to keep up with their premium payments, the AG charges.
