Allianz Sued for ‘Assessing a Surrender Charge on the Surrender Charge’ in VAs
October 13, 2021 by Melanie Waddell
Allianz Life Insurance Co. was hit with a lawsuit Monday for “assessing a surrender charge on the surrender charge” on its variable annuity contracts.
The plaintiffs, who are seeking class-action status, assert that Allianz improperly charged all variable annuity contract holders with respect to “surrender charges” in connection with administration of variable annuity contracts issued by Allianz.
According to the suit, filed in the U.S. District Court for the Eastern District of Texas, Allianz performed an improper extra-contractual application of “grossing and netting.”