Minnesota’s Attorney General and Great American Financial Resources announced a settlement over disputed sales of deferred annuities to seniors in the state by Great American subsidiaries.
The agreement covers 2,000 policies placed by Great American Life Insurance Company and its affiliates, Annuities Investors Life and Loyal American Life, with an estimated value of about $50 million, according to the state’s AG, Lori Swanson.
The settlement allows seniors who bought annuities from the companies to submit refund claims. It also requires the companies to improve its suitability review procedure to assure annuity sales to seniors are appropriate.
“Many senior citizens face economic difficulty in this troubled economy, and this settlement provides a vehicle for them to obtain refunds,” Swanson said in a statement.
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Under the agreement, Minnesota consumers aged 65 or older who purchased a deferred annuity from Great American or its affiliates between Jan. 1, 2001 and Aug. 1, 2008 will be offered an opportunity to claim a full refund, without penalties, plus 4.15% interest. Consumers who purchased annuities after Aug. 1, 2008 who feel they were sold an unsuitable product may also file a complaint with the attorney general’s office.