Company selling annuities among those fined by state insurance commissioner
May 20, 2016 by Rita R. Robison
Earlier this month, I reported on fraud seminar for older adults that included, among its many warnings, to be careful when dealing with insurance companies selling annuities.
Insurance Commissioner Mike Kreidler
Jackson National Life Insurance Co. was fined $20,000 by the Washington State Insurance Commissioner’s Office in March.
A Washington consumer who purchased an annuity in November 2014 issued by the company complained to the insurance commissioner because the annuity terms didn’t meet what the consumer asked for, which included socially responsible investments and complete access to her funds.
The insurance producer who sold the annuity to the consumer allocated 20 percent of the funds to oil and gas investments and made none of the funds available to the consumer. The consumer requested a refund on the annuity, but the insurance brokerage the producer worked for, LPL Financial Corp., and Jackson National Life refused.
The insurance commissioner investigated the consumer’s complaint and revoked the license of the producer, Charles C. Frackrell, in September 2015 and fined LPL Financial $2,000 in February 2016. Jackson National Life was ordered give a refund to the consumer for the annuity plus 8 percent annual interest. In addition, the company agreed to pay a $20,000 fine for violating state insurance laws.
Among the other fines:
- Delta Dental of Washington – $10,000
- National Casualty Co. – $9,000
- QBE Insurance Corp. – $20,000 with $10,000 suspended
