State Insurance Offices Warn of Fraudulent Annuities
By Robert J. Boumis
Annuities fraud is a growing problem facing many Americans, especially the elderly. This type of fraud often hinges on the fact that annuities can be complicated and hard to understand, making it easy to slip a fraudulent one past even an otherwise-savvy consumer. However, a number of different states’ various insurance regulatory offices have put out advice on how to spot annuities fraud.
The Office of the Insurance Commissioner for Washington State publishes a number of tips to avoid fraudulent annuities. Most of their advice hinges on purchasing annuities as an impulse. Their first bullet point holds that you should avoid high-pressure sales. Annuities are a financial product and a major decision. You should not make this decision based on sales tactics. Additionally, the Insurance Commissioner’s office advises that you should only purchase annuities through a licensed agent – in the state of Washington, any legitimate agent would be licensed through their office. However, other states will have their own insurance offices which can provide similar accreditation. They also stated that it is a red flag when an agent recommends you switch annuities in the short term. Annuities are designed to be a long-term investment, not something you swap out every time someone gets a hot tip.
Similarly, the California Office of Insurance has also put up an entire guide to annuities and annuities fraud in response to frequent abuses of this type. Their advice follows similar lines, but has a few additional tips. For example, they advise consumers to be wary of anyone selling annuities who will not allow you or discourages you from having family members or attorneys look over the terms of an annuity, as well as those identifying themselves as “trust advisors” or “trust planners,” since these terms do not require certification and may indicate a fraudulent annuity. Like their counterparts in Washington, the California Office of Insurance warns that high-pressure tactics, like “free” presentations that come with aggressive sales pitches, are a major red flag. Lastly, they advise consumers to be particularly vigilant of any agent who tries to convince you that your existing investments are much more risky than investing in an annuity.
Lawsuits have been filed by those taken in by fraudulent annuities scams. These lawsuits allege that the terms of a fraudulent annuity are in violation of various laws designed to protect consumers from fraudulent annuities. Such annuity fraud lawsuits either require the fraudulent annuity to pay out as intended or to reimburse the victim for the funds they sunk into a fraudulent annuity.
If you or a loved one invested in a fraudulent annuity, you may feel overwhelmed or embarrassed by the situation. But you need to remember that you have rights, and there are steps that you can take to regain a measure of control over your situation. You can start by visiting the Life Insurance, Annuities Fraud Class Action Lawsuit Investigation. Here, you can enter information about your situation for a review by a legal expert with a background in this type of litigation. This consultation is completely free of charge, and from it, you can receive additional guidance on the best steps to take in your exact legal situation.
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