Iowa Insurance company fined for selling unapproved annuities

The Minnesota Department of Commerce has fined Des Moines, Iowa-based American Equity Investment Life Insurance Co. $275,000 for allegedly selling unapproved annuity contracts in the state of Minnesota.

As a result, consumers who purchased the contacts were subject to higher surrender charges and less favorable terms. The total face value of the unapproved policies sold in the state exceeds $28 million.

Minnesota law requires that any annuity contract issued to a Minnesota resident is presented on a form that has been approved by the Minnesota Department of Commerce. Between 2002 and November 2008, American Equity allegedly issued 541 annuity contracts in the state on forms that had not been approved by the department...

Hometown Source: Iowa Insurance company fined for selling unapproved annuities