ANICO Class Action Lawsuit

[insurehound]

Has anyone just gotten word about the Class Action Lawsuit against American National???

 

[DHK]

Yep. There's always a lawsuit against any company on any given day.

No big deal.

Just know your product before you sell it, and sell it correctly.

 

[Mark]

Does anyone really ever get any money besides the lawers in Class Action Lawsuits?

 

[Norwayguy]

Does anyone really ever get any money besides the lawers in Class Action Lawsuits?

QFT

I got enrolled in the Trans Union Class Action...I was required to sign the settlement offer which included the following 45 percent to the attorneys plus filing costs based on the payout to me they netted 60 percent of the award.

Oh on a side note the offer for everyone in the group was $25 million you do the math.

 

[Mark]

Ive been in a few and the most I ever got was like 5 bucks.

 

[scagnt83]

My father was in one against Krispy Kreme over their stock.

His payout was more stock..... actually stock options... Warrants to be exact... about $10 worth of them...

 

[insurehound]

Have any of you read why ANICO has been sued?

 

[DHK]

Yes I have.

[FONT=Times New Roman","serif]American National Insurance Company has been involved in a class action lawsuit in the state of California involving the sale of American National fixed deferred annuities to California residents. An annuity involved in this case could have been sold by Independent Marketing Group or other American National marketing divisions between January 1, 2002 and December 31, 2010, and was an active annuity or an annuitized annuity at any time on or after February 9, 2005. [/FONT]

[FONT=Times New Roman","serif]A Settlement Notice will be mailed to contract holders explaining: the classaction lawsuit, eligible annuity contracts included in the suit, and actions that need to be taken to receive part of the settlement.[/FONT]

[FONT=Times New Roman","serif]While the majority of these mailings will be to contract holders in California, mailings will be directed to wherever the contract holder currently resides. Therefore, all Independent Marketing Group agents should be prepared to field a call regarding this matter. [/FONT]

[FONT=Times New Roman","serif]It is important to note that American National Insurance Company and the plaintiff's attorneys agreed to settle the matter instead of continuing a lengthy and costly lawsuit. The Court has not decided in favor of the Plaintiff or American National. American National settled with the plaintiff, allowing its contract owners to receive additional benefits.[/FONT]

[FONT=Times New Roman","serif]Life Insurance Administration is setting up an administrative unit in Galvestonto handle the anticipated calls coming from potential class members. The phone number of this unit is (888) 238-7964; the mailing address is ANICO, c/o RandSettlement Unit, P.O. Box 1997, Galveston, TX 77553; and the web address is www.RandAnnuitySettlement.com.[/FONT]

[FONT=Times New Roman","serif]We strongly encourage you to refer any and all inquiries you receive regarding this matter to the above administrative unit. [/FONT]

 

[insurehound]

• American National deferred annuities are worth substantially less than the purchaser's original invested funds: Class members who purchase American National deferred annuities lose substantial value on the date of purchase. Class members who purchase American National deferred annuities lose a portion of their investment dollars to cover sales agents' commissions, ANICO's profits, investment goals and other undisclosed expenses.
• ANICO pays its agents very high deferred annuity commissions adversely impacting the performance of annuities: Deferred annuity commissions greatly exceed commissions paid on mutual funds or more liquid and higher-yielding investments. These exorbitant commission costs are recouped from class members through undisclosed actuarial and accounting manipulations.
• American National deferred annuities have stiff surrender charges: These surrender charges are inadequately disclosed in ANICO's consumer brochures and annuity contracts.
• Future performance is dependent on penalties and surrender charges: American National deferred annuities' future performance is dependent on ANICO's ability to collect early annuitization penalties and surrender charges.
• ANICO's deferred annuities carry front- and/or back-end loads: This is a result of undisclosed bonus forfeiture policies, unduly steep early surrender charges and bonus forfeitures.
• ANICO retains discretion over the annuity owner's earnings: The American National annuity owner's earnings are inadequately disclosed or concealed by indecipherable formulas buried in the annuity contract.
• ANICO fees and loads are concealed: Through indecipherable product design and mechanics, ANICO concealed fees and loads.

 

[STIBROKER]

I remember a while back the lawsuit on their health insurance association....that cost them a mill........