A Claremont, Calif., lawyer says life insurers should compare annuity deferral periods with customers’ life expectancies.[@@]
The lawyer, William Shernoff of Shernoff Bidart & Darras L.L.P., has joined with other lawyers to file a suit concerning the deferral period issue in a state court in Los Angeles.
The complaint accuses Midland National Life Insurance Company, West Des Moines, Iowa, of selling annuities with payment schedules calling for payments to start after the end of the purchasers’ projected lifespans.
In the suit, Shernoff identifies one annuitant, John Migliaccio, who was 73 when he paid $43,000 for a Midland National annuity. Migliaccio, who has died, was scheduled to start receiving annuity payments after the end of his expected lifespan, Shernoff says.