An Iowa insurance company is settling a lawsuit with the Minnesota attorney general and will offer refunds to as many as 2,400 senior citizens who purchased long-term annuities.
American Equity Life Holding Co. was accused of exploiting the elderly by selling them annuities they couldn’t access for several years without significant penalty.
Under the agreement, the company didn’t admit to any of Swanson’s allegations. But the company’s CEO says a settlement was a business decision that spares the company from spending more time and money on litigation.
Senior citizens who purchased an annuity after 2001 that didn’t suit their situation will be able to get their money back with interest and without surrender charges.
The case was part of a series of lawsuits filed by Attorney General Lori Swanson. A lawsuit against a fourth annuities company that has major operations in Kansas and Iowa has now been filed.
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