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June 17, 2008 at 12:44 PM
The Wisconsin insurance commissioner’s office has negotiated a settlement with an insurer in connection with allegations of unsuitable annuity sales.
The insurer, Pennsylvania Life Insurance Company, Lake Mary, Fla., a unit of Universal American Corp., Rye Brook, N.Y., has agreed to pay a $925,000 forfeiture and to offer an independent review program to 2,200 Wisconsin annuity buyers, Wisconsin officials say.
If outside reviewers find that a consumer’s annuity purchase was the result of improper sales practices, “the consumer will be offered remediation,” officials say.
Penn Life also has agreed to an order that prohibits it from selling annuities in Wisconsin for 4 years and requires it to supervise its insurance agents more closely, officials say.
Penn Life sold the annuities involved in the settlement agreement from 2000 to 2007.
Starting in 2006, consumers told Wisconsin insurance regulators that some agents selling Penn Life annuities had made misleading sales representations or sold unsuitable annuities, officials say.
