Life Insurance Companies Fined for Selling Life Annuities

The fact that the Department of Insurance for the state of Missouri succeeded at fining 2 large insurance companies (Nationwide Life Insurance Co. and Nationwide Life and Annuity Insurance Co.) proved that understanding one’s life insurance cover is vital. Let us remind that the life insurance companies were fined for not ensuring adequate supervision and control over Waddell & Reed Inc.
According to Mr. Huff, director of the Department of Insurance for the state of Missouri, the life insurance companies encouraged their clients to switch between life annuity and other types of annuity even though the changes were unprofitable to the customers. Overall, the life insurance companies managed to make $10 million in several years by charging clients fees for the transactions. 
Commenting on the case, Mr. Hulife annuities consumers, who are buying life annuities, to carefully examine the terms that apply to the product.