Seniors who bought inappropriate annuities from Great American Life Insurance Co. may be eligible for refunds, the Minnesota attorney general's office said Tuesday.
About 2,000 policies with an estimated value of $50 million may be eligible for the refund claims, according to the AG's office.
It said the Ohio company was deceptive in how it sold the annuities, some of which were not suited for the customers to whom they were sold. Some wouldn't give people in their 70s and 80s access to their investments without sizable penalties for at least 12 years. In some cases, annuities locked up all of the seniors' liquid assets or charged them hefty penalties to get access to their principal.
The settlement also details what Great American need do in the future to make sure a product is suitable for a customer. This is the fifth such settlement the office has reached with insurance companies in the past couple of years.
Great American, based in Cincinnati, did not immediately respond to a phone message seeking comment. The settlement also applies to Great American's affiliate: Annuity Investors Life Insurance Co.
SUZANNE ZIEGLER
