Allianz Lawsuit Alleges Fraud, Deceptive Trade Practices and False Advertising
US, Canada and Puerto Rico
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The lawsuit filed against Allianz Life Insurance Company of North America alleges they sold deferred annuities to senior citizens that were unsuitable for seniors' financial needs. The suit also alleges that the insurance company did not adequately disclose that seniors could have their limited savings tied up for as long as 15 years, could not cash in their annuities early without paying hefty surrender penalties, and that payments advertised as "immediate" bonuses were not payable for up to 15 years.
They sold these annuities knowing they were unsuitable for you, the purchaser, falsely advertised the benefits of these annuities and engaged in deceptive trade practices.
Who is Allianz?
How did they target seniors?
What are the specifics of their deception?
How do I know if I qualify?
Q. Who is Allianz?
A. Allianz Life Insurance Company of North America is based in Golden Valley, Minnesota and is owned by Allianz SE of Germany. Allianz SE is the largest financial services company in the world. Allianz Life Insurance Company of North America has approximately $75 billion in assets and approximately $3.5 billion in net worth.
Since 2000, Allianz sold nearly 5,000 deferred annuities to seniors over the age of 70, totaling over $259,000,000.
Q. How did they target seniors?
A. Allianz agents often lured seniors to attend "estate planning" or "wealth management" seminars. The real purpose of the seminars was to sell Allianz annuities to the seniors who attended the seminars. Allianz also lured seniors to purchase the annuities by offering "immediate" bonus payments of five to ten percent of the principal of the annuity. In fact, the lawsuit alleges that Allianz does not pay the "immediate" bonus for as long as 15 years.
Q. What are the specifics of their deception?
A. Allianz Life Insurance Company:
- Failed to ensure that the annuity was a suitable investment for the particular senior. Some states' law requires an agent to ensure that an annuity is suitable for the purchaser's financial needs. Allianz's deferred annuities are often unsuitable investments for seniors because the circumstances of many seniors requires them to have current income or access to liquid funds to pay living expenses, nursing home expenses, or medical costs. With Allianz's deferred annuities, seniors could see their savings tied up for as long as 15 years.
- Misled seniors regarding the terms of these "deferred" annuities. In a deferred annuity, after holding the annuity until its "maturity" date (often five to ten years), the senior cannot simply cash it in but rather must have the annuity payments spread out, or "annuitized," over another lengthy period of up to five to ten years.
- Misled seniors regarding the hefty surrender penalties of up to 15 percent that apply if the senior withdraws more than a small portion of their money before the annuity "matures" (which sometimes exceeds the life expectancy of the senior.)
Q. How do I know if I qualify?
A. If you purchased a deferred annuity between September 2001 and December 2006, and are aged 65 or older call us today for your free, no-obligation consultation or email us for more information.
We Can Help!
Balkin & Eisbrouch, LLC is a national law firm covering all fifty states as well as Canada, Puerto Rico and all American possessions. No matter where you live, we will have an experienced insurance and annuity attorney represent you.
If you or someone you love has purchased an Allianz Annuity, you may be entitled to a large compensatory award. Call us now at 1-800-RESULTS (1-800-737-8587). Or Email us for more information.
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