Hello everyone.

My fiancé worked at Northwestern Mutual as a financial advisor for part of this year before quitting in November. He has received an invoice for “reversed policies” stating he had to pay back over $3000. Has anyone had success in not paying this back? Is he legally obligated to pay these commissions back? Thanks!

Comments

expertestateattorney t1_j2dvyy1 wrote on December 31, 2022 at 3:14 PM

I assume when they say "Reversed policies" it means customers canceled policies soon after buying them. If that is the case, clawing back commissions paid to the advisor is common. I have no experience with Northwestern to give insight into how hard they will push to collect this money. I would guess that they will be aggressive.

K_b_lld OP t1_j2dwfvw wrote on December 31, 2022 at 3:18 PM

Thank you. Yes, two policies lapsed so they have sent an invoice for the commissions they paid. Good to know it’s common as this was a new field for us.

expertestateattorney t1_j2dwz89 wrote on December 31, 2022 at 3:22 PM

In his employment paperwork it will set out how long the policies need to be in place before there is no reverse commission charge. You need that info before you can determine if it is owed, but it likely is a valid charge back.

zwzwzw19 t1_j2e21pu wrote on December 31, 2022 at 3:59 PM

The slimiest company I’ve ever seen doing more slimy things. Surprise surprise.