Esfand Dinshaw, President of Midland National's Annuity Division, stated: "Midland National has always been an industry leader in adopting protections that help assure each annuity contract is suitable for the customer.
To help assure that sales are proper, Midland National has, for a long time, had suitability review procedures and a dispute resolution process unique among insurance companies.
Any customer who believes that he
purchased an inappropriate annuity contract has always been able to ask us to review his
entered into the settlement agreement because the agreement is consistent with Midland National's procedures."
strongly disputed and continues to dispute the Minnesota
Attorney General's Office's investigation and lawsuit against Midland National
," Mr. Dinshaw
has been and remains committed to offering quality products through proper sales processes.
We simply did not see the merit in proceeding with litigation when our efforts can be better spent working with our customers in these unique times."
stated: "We believe Midland National
deferred annuity products are excellent retirement and savings vehicles that have protected many seniors from the recent market downturn.
Deferred fixed annuities are appropriate for people seeking to preserve assets, while obtaining a steady stream of income.
Many of our customers have maintained their full account values and some have even seen gains in their accounts during the recent downturn.
We are proud that our products have protected the assets of many customers who might otherwise have suffered staggering losses in the equities markets."
concluded: "The settlement is expected to have no significant impact on Midland National
and no adverse impact on its policyholders in Minnesota."