By Linsey B. Knerl

A recent class action lawsuit filed against Northwestern Mutual Life Insurance Company (NM) looks to compensate customers who allegedly didn’t receive entitled dividends payments. But it doesn’t end there. Accusations of using unethical sales and marketing tactics have the company facing legal trouble in California Courts.

Who is affected? There are two classes of members in this lawsuit.

Members of the Term Class include all persons and entities (such as companies or trusts) that at any time owned a Term Life Policy, Series MN through TT (excluding Extra Ordinary Term policies), issued by NM between 1983 and October 7, 2008.

Members of the Disability Class include all persons and entities (such as companies or trusts) that at any time owned an individual Disability Policy, Series LL through RR, issued by NM between 1981 and October 7, 2008.

(It’s important to note that you are not entitled to be included in the settlement if you were offered insurance and didn’t accept it, or if a policy was at anytime rescinded or returned.)

What do you do if you would like to be compensated? Nothing. This simple case hearing is scheduled for December 24, 2008, and soon after a decision will be made regarding settlement. If you are a member of the Term Class, payment will be mailed by check automatically. (The amount is unknown at this time and will depend on the final settlement amount of up to $92 million, the attorney’s fees, and the number of members in the suit. The estimated number in the class could reach 2.9 million customers.)

If you are a member of the Disability Class, you will receive a pamphlet entitled “A Few Words About . . . Your Northwestern Mutual individual disability insurance policy, dividends, and illustrations,” informing you of your policy terms. (What a sweet payout.)

If you don’t want to be included, you must exclude yourself by mailing a written request to the Settlement Administrator at the address listed on page 6 of the Notice, postmarked on or before December 4, 2008.

According to the website:

“By remaining in the settlement class and accepting the benefits of the settlement, you are agreeing to release certain claims you may have or potentially may have in connection with your policy or policies. This settlement does not, however, change any of your contractual rights under the express terms of your existing term life insurance or disability insurance policy or policies. If your policy is in force and you continue to pay any premiums that become due, you still will be able to make a claim for any benefits that may become payable under your policy’s terms.”

So don’t stop paying while you wait for your money. Like all lawsuits, Northwestern Mutual Life Insurance is denying any wrongdoing. The lawsuit is expected to be settled sometime next year. For full details and updates on the case, visit the official website at www.nmclass.com or call 1-888-356-0268.