A major annuity manufacturer says it will be improving the way it handles advertising, new business processing and consumer complaints in Wisconsin.
Allianz Life Insurance Company of North America, Golden Valley, Minn., a unit of Allianz S.E., Munich, says it already has started or will start remedial measures in response to a market conduct report released by the Wisconsin Office of the Insurance Commissioner.
“All required remedial actions and a detailed explanation of all corrective actions taken in response to the recommendations will be submitted to OCI within 90 days of the date of the order,” Rebecca Huerta, Allianz Life compliance senior director, writes in a letter to the Wisconsin insurance office Bureau of Market Regulation.
Wisconsin officials note in their market conduct exam report that the report describes the results of a targeted, on-site exam conducted in July 2005.
Allianz Life was the second largest writer of annuities in Wisconsin in 2004, with a 7.6% share of the annuity market and $335 million in Wisconsin annuity considerations, officials write.
The Wisconsin insurance office received 16 complaints against Allianz Life in 2003 and 23 complaints in 2004, officials write.
About 75% of the complaints involved individual annuities, and “many … alleged misrepresentation and unsuitability,” officials write.
Insurance office investigators ended up making 11 recommendations for improving company operations after reviewing the company’s files.
Wisconsin officials call for Allianz Life to: