|
The Denver Post reported on September 5, 2006 that two Colorado Springs men agreed to several sanctions imposed by the Colorado Division of Insurance, including a seven year license revocation for Dennis Marlow and a four year suspension following a six month revocation for Joseph D'Altilia. They sold index annuity contracts to 153 people, many elderly, and many too old to get their money out without having to pay hefty withdrawal charges. This dubious tactic was highlighted in my article entitled Equity Indexed Annuities: Are They Suitable for Anyone?, posted to my blog on June 28, 2006. Deputy Insurance Commissioner Erin Toll was quoted as saying, "These two guys preyed on the elderly." Allianz was a main provider of this "product" which was a so-called fixed index annuity, which, according to Toll was one in which purchasers "couldn't realize their investments for 15 years." According to the Denver Post, the two had sold other annuity products to many of the consumers involved, and then collected commissions while clients were hit with surrender charges when they rolled over into the Allianz product. This tactic was also highlighted in my blog article entitled Equity Indexed Annuities: Are They Suitable for Anyone? Basically, the idea is to take the customer out of one index annuity product and then roll the him or her into another index annuity product, collect another hefty commission, and leave the customer holding the bag with (a) a stiff withdrawal fee (some providers' penalties range from 7% to 25%); (b) a questionable "investment," which also has severe withdrawal restrictions. Copyright 2006 by Robert W. Hutchinson
|
|
News
Securities
[03/09] Broadridge Financial buys StockTrans
[03/09] EADS loss weighs on European stocks
[03/09] World markets mixed after lackluster US finish
[03/08] Alamo Group reaps 4Q profit from recent purchase
[03/08] Legacy Bancorp to pay 5 cent dividend on April 1
[03/08] H&R Block 3Q profit rises despite fewer returns
[03/08] Comerica to offer $800 million worth of stock
[03/08] Wells Fargo downgrades Crown Castle
[03/08] NovaGold Resources to issue 13.6M shares
[03/08] Allergan CEO got $11.1M in compensation in 2009
Read More
Securities Litigation
[03/03] 10th guilty plea in Galleon insider trading case
[02/04]
Read More
Web Resources
Hutchinson Law Firm LLC FindLaw Thomson West U.S. Courts Westlaw United States Chamber of Commerce FirstGov Legislative Branch Library of Congress White House Internal Revenue Service National Weather Service Yahoo!Maps YellowPages.com New York Times Newspapers Online USA Today Wall Street Journal AOL Google Yahoo!Legal Blog Directory
|