The National Association of Securities Dealers is investigating allegations that some agents of Northwestern Mutual Life Insurance Company misled some customers into buying certain variable life insurance policies.
A spokeswoman for Northwestern Mutual, in Milwaukee, acknowledges the investigation but insists the company did nothing wrong in any of the cases cited by the NASD.
She also said the investigation was part of an industrywide probe of sales practices that the NASD began in 1999.
“We were at the end of the train, in a sense,” says the spokeswoman, Deanna Tillisch.
NASD officials approached the company in April 2001 and asked for a “representative sample” of variable life insurance policy owners, she says. Northwestern supplied around 2,500 names.