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Allianz Life Insurance Company of North America (Allianz) has been targeted in a growing number of annuity lawsuits after allegedly applying secret “haircuts” to annuity payments and employing harsh surrender penalties.
Allianz developed and sold an annuity product called “two-tier” deferred annuity, which it said would offer purchasers higher returns and greater value. The two-tier deferred annuity required that the purchaser defer “annuitization” – taking out account money – for at least the first five years. After these five years, purchasers would then take deferred annuity payments over a period of at least 10 years, and up to life.
While Allianz promised that the two-tier deferred annuity product would offer a greater value to its purchasers, Allianz annuity lawsuits allege that the company broke this promise by cutting the amount of each annuity payment after the initial five-year deferral period. According to Allianz annuity lawsuits, Allianz applied a six percent haircut to account funds of purchasers.
For those purchasers who failed to meet annuitization requirements (a five year deferral and taking payments out in a period of ten years or more), Allianz allegedly had extremely harsh surrender penalties. According to Allianz annuity lawsuits, these penalties allow Allianz to strip a huge percentage of the deposited premiums and can increase over time, never going away. Penalties under this system can allegedly reach or even exceed 50 percent.
An Allianz annuity class action lawsuit investigation is looking into allegations that Allianz knew that many of its policyholders could not comply with its requirements, and therefore set up the two-tier structure primarily to make money and cheat purchasers out of their funds. The Allianz annuity class action lawsuit investigation is also examining claims investigating that Allianz failed to adequately disclose its surrender penalties to its consumers.
What is an Annuity Fraud Lawsuit?
Annuity fraud lawsuits often involve the elderly who have been targets of financial scams. These scams take advantage of older people in an effort to cheat them out of their life savings, and ultimately do not live up to the benefits initially offered or promised.
Signs that indicate involvement in an annuities scam include:
- If a person is unlikely to live long enough to collect payments, deferred due to company requirements.
- If the annuity makes up more than 35 percent of the person’s assets
- If the Surrender Fee (the amount a person is required to pay if they cash-in early on their annuity payments) is more than 14 percent of the principal
- If the same agent sold the person multiple annuities
Though it is statistically true that the elderly are often targets, even financially savvy consumers can be affected by financial fraud with useless life insurance or phony annuity products that purposefully and maliciously charge excessive fees or hold purchasers to difficult requirements.
Many injured parties targeted by Allianz and other companies accused of fraudulent financial practices have started filing annuity lawsuits.
If you were sold an Allianz annuity that failed to live up to expectations, you may be able to receive financial compensation. You may be able to file an individual Allianz annuity lawsuit, or you can join an Allianz annuity class action lawsuit.
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21 thoughts onAllianz Facing Annuity Fraud Lawsuits Over Deceptive Practices
I rolled over $63,644.24, with Allianz back in 2021; I’m afraid I may be caught up in this sad situation too…help!
I was sent several letters regarding a class action law suit regarding this company. I have not heard anything currently and when I called in October was told they were at the dnd of negotiations and I should be receiving a settlement at the end of November or December. What is going on?
If you were lied to like my grandparents were, you’d know that the promotional brochures say the annuitant will be able to cash out the full value of the annuity. That is a lie. Read the actual lawsuit.
I bought a masterDex 10 annuity in 2004.. I put in $20,000.00. I have taken out around $10,000.00, in free withdrawals. It has grown to $33,000.00, I am now 60 years old, & wanted to start taking money out for other investments, The problem is, the restriction on how much I can draw out a month. I didn’t realize it was a one time deal. Once you set it up to draw a certain amount, it can’t be changed. The amount per month, miniscule. $164.00 per mo. Is there anything I can do, or am I just stuck.
I placed $50,000.00 with Allianz and 10 years later I walked away with $2600.00. I did borrow money on the policy but not the total of the policy nor the interest I made on the $50,000.00.
I had tramatic brain imjury from an accident and the annunity company took my money I never seen a lawyer never change my address with annuntiy company there so many thing they did that were illegal, but I been trying for years to get help and no one will help state attorney said everything was illegal to get a lawyer but not one will even listen to the details never haf a lawyer never went to court was heavily medicated the doctor treating me list his license since then also not one thing ybsy did was at all legal it had destroyed my life and I know I cannot be the only one
I had tramatic brain imjury from an accident and the annunity company took my money I never seen a lawyer never change my address with annuntiy company there so many thing they did that weee illegal but I been tryimg for years to get help and no one will help or even listen to the details never haf a lawyer never went to court was heavily medicated the doctor treating me list his license since then also not one thing ybsy did was at all legal it had destroyed my life and I know I cannot be the only one
My mom had the MasterDex 10 Annuity. She has had it since 2006. She now has Dementia and I am her POA. I called Allianz to get money out to help pay for her caregivers. I was told the guy that sold us the annuity did not put the nursing home rider on it. I asked about taking $50,000 out and was told that I would have a surrender charge of $70,820. I am paying more that I am taking out. I do not understand this. I was told my best bet was take a free withdrawal out each year and nothing else.
I was sold hard on an Allianz 360 annuity by a man I contacted about Medicare choices. I asked some friends if they knew anything about this product. Two weeks later a friend told me that he was a financial advisor. I liked and trusted him for several years, so trusted him. I invested over 200K of the 300k I then had to invest. It was taken away from responsible investors and given the highs the stock markets were reaching from 2013 through 2015 the lost income was enormous. Allianz’’s sales material show high returns. I lost nearly 8% when I ended the annuity. My neighbor simply went online and found out he could make a lot of easy money and has no training in finance. I was recently shot and paralyzed and am quickly running out of money. This annuity may have cost me my life.
What should be the anticipated payout Interest Rate on the Allianz 22 Fixed Index Annuity for 2017 if it is based on Barclays Index?
In 2016 I earned only 7% income on this Allianz FIA when I would have earned 14% had I just left the considerable funds in the Mutual Fund Account at Wells Fargo.