Agreement reached with Allianz Life Insurance Company
The Minnesota Department of Commerce announced a multi-state settlement agreement between Allianz Life Insurance Company of North America and 43 states.
Iowa acted as the managing lead state in the agreement and was assisted by Minnesota, Missouri, and Florida. The agreement establishes corrective actions, a consumer complaint review and refund process, and a $10 million penalty to be distributed among the participating states.
As part of the agreement, some Minnesota consumers may be eligible for a cancellation of their policy, with a full refund of premiums. Allianz Life agreed to put a process in place to re-evaluate complaints previously filed by customers who purchased eligible two-tier annuities between 2001 and 2008. Consumers who made a complaint during this period may have their complaint reviewed again by Allianz Life, based on standards outlined in the agreement. If the complaint is found to be justified, the consumer will be offered a full refund. New complaints from policyholders who purchased eligible two-tier annuities between 2001 and 2008 will be evaluated based on the same standards. The deadline for new complaints under this process is March 31, 2013.
The agreement was the result of a review of Allianz Life fixed annuity sales between January 1, 2001 and December 31, 2008. Regulators reviewed how Allianz Life and its insurance producers marketed, sold, and administered its products.
Allianz Life also agreed to maintain or implement best practices within a time frame established in the agreement. The company agreed to change the format of its policy annual reports, maintain current company training and monitoring of its agents, change some aspects of its complaint handling, and conform to some of the monitoring provisions in the National Association of Insurance Commissioner (NAIC) Replacement Model Act.
The amount of the fine to be received by each of the participating states will vary based on the final number of the states who sign the agreement and the number of impacted policies in each participating state. Minnesota's share is expected to be approximately $346,100.
Consumers who purchased eligible annuities during the period of January 1, 2001 and December 31, 2008 and have questions, concerns, or a complaint should contact Allianz Life by using the "Contact Us" feature on their website or by telephone at 866-604-7488.
Minnesotans with any additional questions or concerns can contact the Minnesota Department of Commerce Consumer Response Team at (651) 296-2488 or (800) 657-3602 or by email at firstname.lastname@example.org. You can also visit our website for additional insurance related information.