New York Fines Insurers Over Deferred Annuity-to-Immediate Annuity Exchanges
April 15, 2020 by Allison Bell
The New York Department of Financial Services has sent life insurers another reminder: Moving cash from a deferred annuity to an immediate annuity is an annuity replacement transaction, and insurers have to make to make sure the consumers involved get income comparisons and suitability information.
The New York department has imposed about $2 million in fines and restitution requirements on three insurers in connection with immediate annuity replacement transactions.
The New York department imposed $1.8 million in fines and restitution requirements on six insurers in connection with immediate annuity replacement transactions in September.
Linda Lacewell, the department’s financial services superintendent, said in a comment about the new settlements that the state wants to protect seniors who are seeking safe and stable retirement income.
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