Kansas has received $415,000 from a five-state, $2.1 million settlement with the Nationwide Insurance Co. over questionable annuities sold by Overland Park-based Waddell & Reed Inc., the Insurance Department announced Thursday.
The settlement ends about 10 years of complaints and litigation over the annuities, said Bob Hanson, an aide to Insurance Commissioner Sandy Praeger.
The insurance departments alleged that in 2000, Wadell & Reed, a multi-state financial-advising firm, asked Nationwide to develop annuities that the company could exchange for annuities that some Wadell & Reed clients held.
Annuities are life insurance policies that pay benefits over time, either for a set period or for the life of the policyholder.
The insurance departments alleged that the problem with the Nationwide annuities was that the death benefits were lower than the benefits in the annuities that customers exchanged for them, Hanson said.
Nationwide did not admit to any wrongdoing.