American National Insurance Company (ANICO)
American National Insurance Company (ANICO) Deferred Annuity Lawsuits
On February 12, 2009, a proposed California class-action lawsuit was filed in the United States District Court against Texas-based insurer American National Insurance Company (ANICO). The suit alleges that ANICO engages in illegal, unfair and deceptive business practices in the course of marketing and selling its deferred annuity products to purchasers in California. The case arose after the plaintiff was solicited and persuaded into placing approximately $400,000 of her assets into deferred annuity products issued by ANICO.
Email Ingrid Evans or call 800.226.9880 if you would like an attorney to investigate whether you have a potential Deferred Annuity Sales Fraud claim.
The complaint alleges that ANICO implemented this scheme, in part, by omitting or failing to fully disclose all materials, facts and risks associated with its deferred annuity products. According to the complaint, such materials, facts and risks include, but are not limited to, the following:
- American National deferred annuities are worth substantially less than the purchaser's original invested funds: Class members who purchase American National deferred annuities lose substantial value on the date of purchase. Class members who purchase American National deferred annuities lose a portion of their investment dollars to cover sales agents' commissions, ANICO's profits, investment goals and other undisclosed expenses.
- ANICO pays its agents very high deferred annuity commissions adversely impacting the performance of annuities: Deferred annuity commissions greatly exceed commissions paid on mutual funds or more liquid and higher-yielding investments. These exorbitant commission costs are recouped from class members through undisclosed actuarial and accounting manipulations.
- American National deferred annuities have stiff surrender charges: These surrender charges are inadequately disclosed in ANICO's consumer brochures and annuity contracts.
- Future performance is dependent on penalties and surrender charges: American National deferred annuities' future performance is dependent on ANICO's ability to collect early annuitization penalties and surrender charges.
- ANICO's deferred annuities carry front- and/or back-end loads: This is a result of undisclosed bonus forfeiture policies, unduly steep early surrender charges and bonus forfeitures.
- ANICO retains discretion over the annuity owner's earnings: The American National annuity owner's earnings are inadequately disclosed or concealed by indecipherable formulas buried in the annuity contract.
- ANICO fees and loads are concealed: Through indecipherable product design and mechanics, ANICO concealed fees and loads.
The proposed class action includes all persons and/or their beneficiaries who were issued American National deferred annuity policies in the State of California. Also included are those who purchased or surrendered American National deferred annuity policies within the applicable statute of limitations.
Consumers
We would like to hear from you. If you are or were a policyholder living in California (and other states) at the time you purchased deferred annuity policies sold by American National Insurance Company (ANICO) or one of its subsidiaries, including Standard Life and Accident Insurance Company and Garden State Life Insurance Company, contact us.
Email Ingrid Evans or call 800.226.9880 if you would like an attorney to investigate whether you have a potential Deferred Annuity Sales Fraud claim.
Insurance Agents and Former Employees
Please email Ingrid M. Evans or call 800.226.9880, if you have any non-privileged information about the practices of ANICO or its deferred annuity products. Ingrid Evans is our deferred annuity lawyer. You should not discuss with us or provide any privileged communications you may have received from American National or its attorneys.
For additional information on Waters & Kraus, LLP's Elder Deferred Annuity Sales Fraud cases, or for more information on our Financial Abuse practice, email Ingrid Evans or call 800.226.9880.