CORRECTED-Six U.S. insurers to pay $1.83 mln for improper annuity-swapping -New York regulator
October 2, 2019 by Reuters, Suzanne Barlyn
-New York regulator@ (Corrects to reflect that the Companion Life Insurance Company that paid a penalty is a unit of Mutual of Omaha and is not the same Companion Life Insurance that is based in Columbia, South Carolina, paragraph 9. Removes reference to Columbia, South Carolina.)
Sept 24 (Reuters) – Six U.S. life insurers have agreed to pay a total of $1.83 million for improperly causing customers to switch their existing annuities to a different type that generated less income, New York State’s financial regulator said on Tuesday.
The action is part of an industrywide investigation into some practices related to insurers’ recommendations to replace a specific type of annuity with another, the New York Department of Financial Services (NYDFS) said.
The insurers will collectively return a total of $1.15 million to New York customers and pay $673,000 in penalties, the regulator said.