We help victims of annuity and life insurance fraud. Annuities and life insurance pay substantial commissions. Investment professionals often recommend the use of these policies as investment vehicles because of the heightened commissions. The hidden costs and illiquidity of these things almost always make these policies relatively poor investments for retirements. But a larger issue comes from advisors who try to get people to exchange insurance or annuity policies – which is rarely a good idea except in limited circumstances. In such situations, the advisor receives a hefty commission and the benefit to the investor is usually small. Contact us for a free and confidential consultation. You can call 844-253-5858 and speak with an attorney.
Most states require that annuity and life insurance sales be in the best interests of the purchaser. This is an expansion of the suitability rule. Annuities and life insurance policies pay high commissions relative to other investments. An agent cannot put his needs ahead of yours by selling you a high-commission policy that you do not necessarily need.
The agent must meet the following standards in most states: (i) Know the consumer’s financial situation, insurance needs and financial objectives; (ii) Understand the available recommendation options after making a reasonable inquiry into options available to the agent; (iii) Have a reasonable basis to believe the recommended option effectively addresses the consumer’s financial situation, insurance needs and financial objectives over the life of the product, as evaluated in light of the consumer profile information; and (iv) Communicate the basis or bases of the recommendation. It is fraud when a policy is sold that does not meet this standard.
Another common area of fraud is in the switching of policies. The longer you hold a policy the lower the surrender charges and the more the policy is worth. Agents and brokers often pressure consumers to sell one policy to purchase of another. This is rarely a good idea. This is usually driven more by the high commission of selling a new policy, then by problems with an old policy.
Many states limit the ability to switch policies. Most states have issued warnings to consumers about the practice. Some states even require that the agent / broker read such warnings aloud to consumers prior to switching policies. Victims of switch often pay hundreds of thousands of dollars because of the practice. Many do not even realize the costs that they have incurred.
We may be able to help. Fees can be contingent upon the outcome of the case.

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