A coalition of several insurance companies and marketers last month sued the SEC in federal court to try to overturn a new rule that classifies index annuities as securities. The group, known as the Coalition for Indexed Products, filed the lawsuit in the U.S. Court of Appeals for the District of Columbia Circuit. The coalition argues that the new rule, adopted by the SEC in December 2008, conflicts with congressional intent of annuity regulation and also with two Supreme Court decisions.
Annuities have long been the subject of much litigation and controversy. Several large insurance companies have been Defendants in class-action litigation alleging the companies target retirees and senior citizens for the products which are very complex and in many instances unsuitable for the older customer base. State regulators, including the Florida Department of Financial Services and FINRA have issue alerts regarding the sale of annuities to seniors.
Colling, Gilbert, Wright & Carter is currently representing numerous individuals alleging misrepresentation in the marketing and sale of annuities as well as the unsuitability of the product. Annuities have long been one of the the highest commission paying and most expensive products sold to retail investors.
If you believe you have been sold an annuity product without proper explanation of the terms and conditions, please contact our office for a free evaluation. Thank you.