California Insurance Litigation Blog

California Insurance Litigation Blog

Category Archives: Annuities

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Avoiding the Potholes on the Road to Retirement: Understanding Annuity Risks

Posted in Annuities, Insurance Questions and Concepts
Saving for one’s own retirement is something everyone needs to consider.  There are many financial vehicles that can be used when traveling along the road to retirement.  One of these financial vehicles is an annuity.  However, annuities are often not suitable for consumers, especially more elderly consumers, because of excessive “hidden” fees and large surrender … Continue Reading

New California Law Requires That Insurers and Agents Verify that an Annuity is Suitable for the Consumer

Posted in Agent/Broker, Annuities, Insurance Commissioner, Legislation
California Governor Jerry Brown recently signed a new law that will provide increased protection to seniors and other consumers who are interested in purchasing an annuity.  AB 689, which was sponsored by the California Department of Insurance and authored by Assembly Budget Committee Chair Bob Blumenfield (D-San Fernando Valley), requires that insurers verify that an … Continue Reading

California Announces Investigation of MetLife for Failure to Pay Life Insurance Benefits

Posted in Annuities, Insurance Commissioner, Life Insurance, News
On April 25, 2011, California Insurance Commissioner Dave Jones and California State Controller John Chiang announced that they are investigating Metropolitan Life Insurance Company (“MetLife”) for a failure to pay out life insurance benefits after learning of an insured’s death.  It appears that while MetLife learned of its insured’s deaths through a database prepared by … Continue Reading

California Insurance Commissioner Jones Announces New Regulations On Annuities For Seniors

Posted in Annuities, Legislation, News
In recent years there have been many cases of insurance agents selling unsuitable annuities to members of the public, especially seniors.  These annuities typically involve large premiums and very large cash surrender charges.  The large cash surrender charges are often in place for at least the first five years of the annuity and usually exist … Continue Reading