Court Certifies Class-Action Suit Against Annuity Issuer

The plaintiffs allege in their complaint that Allianz Life, a unit of Allianz S.E., Munich, violated Minnesota consumer protection laws by leading prospective and existing policyholders to buy 2-tiered equity-indexed annuities by indicating, incorrectly, that the insurance products offered large “up-front” bonuses that could overcome the effects of investment losses, surrender penalties and income taxes suffered on previous investments.

Allianz Life has put out a statement rejecting the allegations made in the suit.

“Allianz Life has always taken great care to disclose the terms and features of our annuity products, especially as they relate to the bonus benefits of these products,” Allianz Life spokesman Jim McManus says in the statement.

“We believe our policies and procedures in this regard are among the most stringent in the industry and go beyond what is required by regulations,” McManus says. “We disagree with the court’s ruling to certify the class and refute the allegations made in the lawsuit. We want to emphasize that this ruling is procedural only and does not address the merits – or lack thereof – of the plaintiff’s claim. Allianz Life has and will continue to mount a vigorous defense and we are confident that we will prevail.”