>Aug. 03–Milwaukee-based Northwestern Mutual Life Insurance Co. is among eight insurers subpoenaed by New York’s attorney general in an investigation of the way the industry handles death benefit payouts.
Attorney General Andrew Cuomo last week announced a probe into so-called retained-asset accounts. The accounts let insurers control death-benefit money for months or sometimes years, allowing them to invest the funds profitably while paying modest interest to beneficiaries.
That, Cuomo said in a statement, yields millions in “secret profits” for insurance companies on money that really belongs to families of the insured.
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