Jefferson National to pay penalty of $ 150,000 on annuity sales

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The California Department order indicates that Jefferson National did not conduct a review of the annuity recommendations of the “unaffiliated” investment advisor to the client.

The department alleges that Jefferson National “did not have sufficient protections in place to protect consumers.” His only implication in this process was that his licensed insurance agent simply had to sign the annuity purchase request.

“The process did not require the company to interact directly with consumers to confirm that they understood the terms of the annuities they were purchasing, or that the annuities were tailored to the needs of consumers,” adds the ministry.

In a stipulation document signed by Jefferson National president, Jefferson National – the respondent in the case – notes that the company has made independent life insurance agents available to answer consumer questions about annuities purchased. , but that the consumer did not end up talking to the agents.

The California department “has not determined that the Respondent’s annuities were, in fact, inappropriate for the consumer, and the Respondent denies that they were inappropriate,” according to the stipulation document. “The Respondent neither admits nor denies that its sales process did not sufficiently verify suitability at the time the annuities were sold to the consumer.

(Image: Shutterstock)

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