AmerUs Group Company is fighting back against a lawsuit filed by California regulators.[@@]
The suit, filed by California Attorney General Bill Lockyer and California Insurance Commissioner John Garamendi, deals with strategies that 2 marketing organizations, an AmerUs insurance subsidiary and several individuals allegedly used to sell annuities to older consumers.
California regulators allege in a complaint filed in a state court in Los Angeles that the defendants arranged estate-planning meetings with older consumers to persuade the consumers to replace existing annuities with new, unsuitable annuities.
Regulators are seeking about $110 million in restitution, penalties and damages.
Regulators also are asking the court to ban the strategies that regulators say the defendants used to sell the annuities.
AmerUs “believes it has appropriate defenses against the suit and intends to vigorously defend its position in court,” AmerUs says in a statement about the suit.
The suit should not have any material adverse effect on AmerUs’s financial condition, operations or future insurance product sales, AmerUs says.