Finally Regulators are Going After the Equity Indexed Annuity Market

I have said for many years that the equity indexed annuities are one of the worst products for investors on the market. They represent the epitimy of irresponsible marketing. Below, is a note from the COO of Allianz Insurance Company. They have made billions of dollars selling these irresponsible products to unsuspecting investors.

They are pitched as the solution to all problems. You can make stock market returns without ever losing your principles. The agents have been getting rich selling them with commissions as that are paid out as high as 9%.

This is a long time coming and much needed in an industry that needs more regulation.

Remember, if is sounds to good to be true it is to good to be true.

From the COO of Allianz


I want to inform you about a developing situation that is generating significant media coverage about Allianz Life Insurance Company of North America. Earlier today, the Minnesota Attorney General's office filed a lawsuit against Allianz for alleged sales of unsuitable deferred annuities to senior citizens.

We strongly disagree with these allegations. I want you to know that we are confident that we have complied with Minnesota law and will vigorously defend this position. In her press conference, the Attorney General stated that her office had been in negotiations with us. However, we made repeated attempts over the past several weeks to meet with the Attorney General's office to provide additional information that could have prevented this action and our requests were flatly denied.

We are communicating to the media that our annuities are high-quality products that serve a range of consumer needs. More than 99 percent of our annuity policyowners have never filed a complaint with Allianz - a consumer standard of which all of us can be proud. We value all of our distribution relationships and we are committed to supporting you and will keep you updated on this situation as it evolves.

Doug ReynoldsCOO