State regulators scrutinize Annuity scams

The National Association of Insurance Commissioners (NAIC) held a public hearing last week on the emergence of Stranger Originated/Owned Annuities. The hearing, hosted by the NAIC Life Insurance and Annuities Committee, focused on the suspect practice of targeting seniors and terminally ill patients by inducing them to purchase an annuity largely for the benefit of investors or intermediaries.

Robert Mizzoni, an 83-year old from Cranston, Rhode Island, told regulators how he and his wife were victims of an annuities scam. Federal prosecutors are currently investigating a Rhode Island attorney who placed ads in church newspapers offering immediate cash to individuals with terminal illness. The attorney’s goal was to take advantage of the death benefit built into many variable annuities...

NorwalkPlus: State regulators scrutinize Annuity scams