A Midwestern official has accused an insurer in her state of making unsuitable sales of long-term deferred annuities to senior citizens.
Minnesota Attorney General Lori Swanson has filed a suit against Midland National Life Insurance Company, West Des Moines, Iowa, in a state court in Minneapolis.
Swanson alleges that Midland National failed to comply with Minnesota suitability laws, which require an insurer to make sure that an annuity is suitable for a senior citizen who buys the annuity.
In some cases, Midland National sold long-term deferred annuities to senior citizens who could not afford to have money tied up for 10 to 14 years, Swanson says.
Midland National is rejecting Swanson’s allegations.
“This lawsuit is unnecessary, and the attorney general’s press release is wrong,” says Esfand Dinshaw, president of the company’s annuity division.