Ulysses Benjamin Dover

American Equity Investment: Sound Financial Standing, Tremendous Growth

Just wanted to point out...

Backlash Hits
Annuities Tied
To Stock Market
Wave of Lawsuits Take Aim
At Sales Practices, Suitability
Of Equity-Indexed Products
By KELLY GREENE
August 8, 2007; Page D1

Equity-indexed annuities are among the hottest products sold through seminars, infomercials and free-dinner events that target older adults with investment pitches. Now, insurers that sell them are facing growing legal claims from investors and state regulators who allege that the companies or their agents are using deceptive marketing or targeting consumers who are too old to benefit from the products.

FAIR WARNING
Equity-indexed annuities can be complex. Here's what to consider:
• Make sure you understand how gains will be calculated.
• Check for hidden penalties for early withdrawals.
• These annuities may not be suitable for older adults because funds may be locked up for several years.In the biggest such case, the Eighth U.S. Circuit Court of Appeals in St. Louis last month upheld the class-action status of a lawsuit that covers more than 400,000 investors who bought equity-indexed annuities from Allianz Life Insurance Co. of North America, a unit of Munich-based Allianz SE and the top seller of this type of annuity in the U.S. More than a dozen federal lawsuits against a number of insurers also are seeking class-action status in courts across the country. Meanwhile, attorneys general and regulators in Illinois, Minnesota and California are pursuing claims against insurers selling the products.

"Equity-indexed annuities have emerged as the vehicle of choice for unscrupulous insurance agents," says Roxanne Rehm, assistant general counsel for the Florida Department of Financial Services. Older investors, she contends, "don't realize they're long-term investments, and once they realize they can't access the funds, it's usually too late."

For more go to WSJ...

Also, see here in Seattle:
seattletimes.nwsource....

Also, a little history re AEL:

www.consumeraffairs.co...

www.sbd-law.com/CM/Pub...

clearly there's a lot more for anybody who knows how to use Google searches well. Mr. Corn, please do your research next time.

U. Ben Dover