Minnesota Sues Allianz Over Annuity Sales to Senior Citizens.
Annuity sales to senior citizens have significantly risen over the past several years. With this increase in sales has come consumer confusion, prompting regulatory warnings about misleading sales by companies and their agents to the uninformed buyer. http://www.nasd.com/InvestorInformation/InvestorAlerts/index.htm Companies now find themselves in even more rocky terrain as a result of a lawsuit filed this week in Minnesota. On January 9, 2007, the State of Minnesota filed a Complaint against Allianz Life Insurance Company, alleging unlawful sales practices by Allianz of deferred annuity products in Minnesota to unsuspecting senior citizens. In particular, the Complaint asserts that specified Allianz deferred annuity products have long income deferral periods (5-year plus) that are unsuitable for certain senior citizens, that such products lock-up monies for long periods unless steep surrender charges are paid, and that Allianz used deceptive marketing practices to lure seniors to invest, touting "immediate bonuses" when, in reality, such bonuses aren't fully paid for many years. Minnesota is seeking civil penalties against Allianz, restitution for all Minnesota senior citizens injured by Allianz's actions, an injunction barring Allianz from selling deferred annuities to seniors without first determining their suitability, among other relief.
Minnesota's newly elected attorney general, Lori Swanson, told reporters that deceptive sales of deferred annuities to uninformed senior citizens are a widespread abuse driven by lucrative upfront commissions paid to insurance agents. According to news articles, Swanson's office reports that Allianz has sold more than 4,900 deferred annuities to Minnesotans over the age of 70 since 2000, totaling more than $259 million. http://www.startribune.com/535/story/925280.html
The Complaint against Allianz comes on the heels of an earlier lashing by the NASD of the firm's subsidiary. In December 2006, the NASD announced that it had fined US Allianz Securities $5 million for "widespread deficiencies in its supervisory system and for record-keeping violations." www.nasd.com/PressRoom/NewsReleases/2006NewsReleases/NASDW_018112
Other insurance companies are sure to be keeping a watchful eye on this litigation, wondering if they, too, will become embroiled in complaints involving similar practices. Stay tuned . . . we'll update you as this matter progresses.
the state government that aproved the products for sale are intern having to make themselvs defendants... wow government at work... 12 olicies fro 250,000...
allianz sold over 160,000 annuities for 13 billion in premium. Show me another company doing things right 99.99% of the time.
the state government that aproved the products for sale are intern having to make themselvs defendants... wow government at work... I bet all of it the Attorney general runs for higer office soon!!! Deep pockets of an insurance make for free publicity.
allianz sold over 160,000 policies in 2006 alone for 13 billion in premium. Show me another company doing things right 99.99% of the time.
I HAVE SOLD ANNUITIES FOR OVER 20 YEARS, AND HAVE NEVER HAD ONE COMPLAINT OVER THE UNSUITABILITY OF THESE PRODUCTS. WHICH OTHER INVESTMENT COULD WE BE GUARANTEED A LIFETIME INCOME (NOT A CD OR THE STOCK MARKET?) LET ALONE THE TAX ADVANTAGES OF A TAX DEFERRED ANNUITY!!!!
I HAVE SAVED SENIORS THEIR WHOLE LIFE SAVINGS WHICH COULD HAVE BEEN LOST TO NURSING HOME EXPENSES BY TRANSFERRING LIQUID ASSETS INTO AN ANNUITY (USING OBRA 93 GUIDELINES) SO THAT THE WELL SPOUSE DID NOT HAVE TO LITERALLY END UP ON THE STREET TRYING TO FOR NURSING HOME EXPENSES.
TALK TO THOSE SENIORS (OVER 85)WHO WERE ABLE TO SAVE SOME OF THEIR HARD EARNED MONEY HOW MUCH THEY L O V E ANNUITIES.
HOW COULD WE CURSE ANNUITIES WHEN WE LOOK BACK AT THE STOCK MARKET JUST A DECADE AGO. PLENTY OF SENIORS LOST ONE HALF OF THEIR SAVINGS!!!!!! THAT'S A DISGRACE!!!!!!
I WILL FIGHT FOR ALLIANZ
THEY HAVE NEVER DONE ME OR ANY OF MY CLIENTS ANY HARM.
IT'S NOT ALLIANZ OR ANY OTHER COMPANY GUYS.
WE AS AGENTS ARE TO BLAME IF WE SELL AN UNSUITABLE PRODUCT TO A SENIOR OR A YOUNG CLIENT. ALLIANZ ALONG WITH EVERY OTHER ANNUITY COMPANY GIVES US THE TOOLS AND DISCLOSURES TO VERIFY
WITH OUR CLIENTS.THEY WOULD NOT HAVE EARNED THEIR RATINGS IF THEY WERE A FRAUDULENT COMPANY.
WAKE UP MINNESOTA!!!!