Swanson targets Allianz sales practices
Minnesota Attorney General Lori Swanson is suing Allianz Life Insurance Company for selling what she calls "unsuitable life insurance policies" to senior citizens. Swanson says the company sold deferred annuities to seniors that wouldn't mature for 15 years, well beyond their life expectancy.
She also said the seniors could not cash in their annuities early without paying a hefty penalty. She says some seniors have put their life savings into an annuity and can't get it back for years.
"The law requires that they make sure these products are suitable for this person's needs, she said at a news conference in St. Paul. "And they're selling products that aren't suitable because they're locking up the money for a long time and the seniors need their money to live and to eat and to pay medical bills."
Swanson says Allianz sold more than 4,900 deferred annuities to Minnesota seniors over the age of 70 since 2000.
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Leo Stulin, 78, of Hutchinson, appeared at the news conference with Swanson, saying he invested $46,000 into an annuity that wouldn't mature for 15 years. Stulin says he had to pay nearly $6,000 in penalties to get his investment early.
"It's kind of bad when they sell a product like this to people that have one foot on the grave and another on the banana peel," he said.
Swanson is suing Allianz for aggressive and deceptive sales tactics, false advertising and consumer fraud. She says she's seeking restitution for the injured consumers and civil penalties.
An official with Golden Valley-based Allianz released a statement saying they disagree with Swanson's assertions and is complying with Minnesota law.
