Annuities Issues

We recently told you about the insurance agent who was convicted and sentenced to jail for selling an illiquid Allianz equity indexed annuity to an 83-year old woman who showed signs of dementia. The focus of this story has been on the agent’s criminal conviction, but agents get such huge commissions for selling these products

We’ve been meaning to mention this story, reported in the Wall Street Journal on March 18, 2012: Last month, Glenn Neasham, an independent insurance agent, was ordered to spend 90 days in jail on a felony-theft conviction for selling a complex annuity to an 83-year-old woman who prosecutors alleged had shown signs of dementia. The

A few years ago, we had a lot of cases involving an investment disguised and regulated as an insurance product: the “equity indexed annuity,” or EIA. We don’t hear much these days about equity indexed annuities. Why? Because the product was so justly maligned that the insurance industry decided to re-brand it to make it