State Insurance Commissioner Diane Koken has reached a settlement that requires the brokerage firm Waddell & Reed to pay $11 million in restitution to consumers nationwide whose variable annuities were switched from one product to another. The Pennsylvania Insurance Department estimates that 150 consumers were affected. “Some Waddell & Reed producers violated consumers’ trust by deliberately campaigning to switch customers from one variable annuity to another,” Koken said. “These recommendations were made without regard to the customers’ best interests and ultimately cost consumers money in surrender fees.”
The settlement was coordinated through the National Association of Insurance Commissioners and involves several state insurance and securities regulators.
Was this article valuable?
Here are more articles you may enjoy.
Takeaways From AP Analysis on the Flaws in National Flood Insurance 
State Farm to Increase Claims Workforce by 3,000 
Independent Agencies Total About 37,000 in 2026, a Decrease From 2024 
Full Senate Passes Measure to Reauthorize Federal Terrorism Insurance Backstop From This Issue
