Oakland – California Insurance Commissioner Steve Poizner reached a $10,050,000 settlement with Allianz Life Insurance Co. for allegedly targeting thousands of seniors in deceptive annuity sales. Allianz, the largest seller of annuities in California, purportedly deceived elderly victims into purchasing confusing annuity products that were financially unsuitable for their needs. In addition to the sizable monetary settlement, Commissioner Poizner announced that Allianz agreed to implement a groundbreaking suitability review process to further protect seniors.
"This landmark settlement ends years of aggressive and misleading marketing schemes targeted to our most elderly and vulnerable," says Poizner. "The fact that Allianz used deceptive practices and high-pressure sales tactics to lure and cajole seniors into buying unsuitable policies is appalling. The new suitability review process Allianz adopted through this agreement represents a new era in annuity sales, and should be the prototype for annuity insurers throughout the state. My department will continue to actively track down insurance companies, agents and brokers who refuse to play by the rules."
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