Connecticut is collecting $260,000 from the U.S. life unit of German insurance giant Allianz SE as part of a multi-state settlement over complaints regarding the insurer’s sales of fixed annuities, authorities say.
Connecticut was one of 43 states participating in the settlement that followed a review of allegations that Allianz Life Insurance Co. of North America fixed annuity practices from 2001 to 2008, Connecticut Insurance Commissioner Thomas B. Leonardi said Thursday.
The agreement requires Alliance to take corrective actions, establish a mediation plan and pay a $10 million fine.
Connecticut’s share – $258,888 – will be applied toward the state budget, Leonardi said.
The state of Iowa led the investigation with assistance from Minnesota, Missouri and Florida. Connecticut and 38 other states signed on to the final agreement.
Leonardi said many consumers had complained to Allianz over the suitability of the annuities or how the product was represented by the company and its agents during the sale. Regulators responded with a review that scrutinized how the policies were sold and how they performed.
The company has agreed to:
• Review old and new complaints
• Offer a retroactive policy cancellation and full refund for justified complaints
• Change the format of its policy annual reports
• Maintain training and monitoring of agents
• Submit reports to the lead states to confirm compliance
