Judge Orders Mediator in Lincoln Lawsuit Over Illustrations
June 28, 2023 by Aaron Smith
Implications for the Industry
“I absolutely believe that this lawsuit has wider implications for the indexed annuity market,” said Sheryl Moore, chief executive officer of Moore Market Intelligence and the publisher of Wink’s Sales & Market Report.
Moore said that, according to her data, 33.2% of the $22.6 billion in indexed annuity sales during the first quarter were allocated to a hybrid index, “similar to the one in question in the lawsuit.”
“When class action attorneys see the big names on some of these indices, they are surely going to try and build cases,” said Moore in an email.
She believes that more lawsuits are coming, but she doesn’t necessarily believe they will prompt an industrywide change in the use of illustrations to sell products. “I believe it will take much more than a couple of class action lawsuits to force reform when it comes to indexed annuity illustrations,” she said.
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