Six Life Insurers To Pay N.Y. $1.8 Million For Annuity Sales Violations
October 2, 2019 by Raymond Fazzi
“These six carriers failed to properly disclose to consumers income comparisons and suitability information, causing consumers to exchange more financially favorable deferred annuities with immediate annuities,” the New York Department of Financial Services said in a press release today.
The annuity replacement transactions resulted in less income for consumers for identical or substantially similar options, the department added.
Last year DFS issued a regulation that ensures recommendations related to life insurance and annuities are in the best interest of the consumer and appropriately address the insurance needs and financial objectives of the consumer at the time of the transaction.