CID: New Releases (09/06/2012) - State Receives $260,000 From Allianz Life Insurance Co. of North America In Settlement Over Fixed Annuity Complaints

{Connecticut Insurance Department}
STATE OF CONNECTICUT
Insurance Department
 
 
Thomas B. Leonardi
                               Commissioner                                      
 
 
FOR IMMEDIATE RELEASE
 CONTACT: 
Donna Tommelleo
 
860-297-3958
September 6th, 2012

State Receives $260,000 From Allianz Life Insurance Co. of North America
In Settlement Over Fixed Annuity Complaints
 
State Insurance Commissioner Thomas B. Leonardi today announced that the state has received approximately $260,000 from Allianz Life Insurance Co. of North America as part of a multi-state settlement over complaints regarding the company’s sales practices of fixed annuities
 
The Commissioner said that Connecticut was one of 43 states participating in the settlement that followed a review of Allianz fixed annuity practices from 2001 to 2008. The agreement establishes corrective actions, a mediation plan and a $10 million fine to be distributed among the participating states. Connecticut’s share of the fine –  $258,888 – will be deposited into the state General Fund.
 
“This agreement resulted from solid cooperative work among many state regulators focused on the goal of helping consumers safeguard their investments,” Commissioner Leonardi said. “We will continue to monitor the carrier to ensure full compliance with the corrective actions and standards that are part of this agreement.”
 
The review was conducted by lead state Iowa with assistance from Minnesota, Missouri and Florida. Connecticut and 38 other states signed on to the final agreement.
 
Commissioner Leonardi said many consumers had complained to Allianz over the suitability of the annuities or how the product was represented by the company and its agents during the sale. Regulators responded with a review that scrutinized how the policies were sold and how they performed. The company has agreed to:
  • Review old and new complaints
  • Offer a retroactive policy cancellation and full refund for justified complaints
  • Change the format of its policy annual reports
  • Maintain training and monitoring of agents
  • Submit reports to the lead states to confirm compliance
 
Connecticut consumers who bought a fixed annuity from Allianz between 2001 and 2008 and who have questions about their policies or the complaint process can contact the Insurance Department’s Consumer Affairs Unit by phone 800-203-3447 or e-mail at cid.ca@ct.gov.
 
Affected consumers can also file a complaint with Allianz, either through the “Contact Us” feature on Allianz Web site or by telephone: 866-604-7488. Deadline for new complaints is March 31, 2013.
 
Additional links:
 
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Content Last Modified on 9/6/2012 1:10:33 PM