On April 13, 2008, Dateline NBC aired a story called "Tricks of the Trade" that focused on the sale of fixed indexed annuities to seniors. In particular, the story alleged that several agents failed to clearly disclose surrender charges associated with certain annuity products.
Dateline acknowledged one of the safeguards Allianz Life has implemented to prevent inappropriate sales practices – the calls we make to all new fixed annuity policyholders age 75 and older. These calls specifically address surrender charges to ensure that policyholders clearly understand their annuity purchase. The 75+ calls are just one of the programs that are part of our Partnership for Consumer Trust (PACT).
As part of PACT, Allianz:
- Requires all agents to accept our Code of Best Practices, which focuses on suitability, replacements, and disclosure.
- Has a list of professional designations approved for use when marketing Allianz products.
- Surveys all new policyholders through a third-party (LIMRA) and calls all new fixed annuity policyholders age 75+.
- Has an agent training program recognized as among the best in the industry (Agent Sales Journal, April 2008).
- Does not tolerate agent misrepresentation. Allianz terminates agents if and when we become aware of serious misconduct of any kind.
Dateline requested an on-camera interview, which we declined. We did provide a detailed written statement, which highlights our industry-leading consumer initiatives. The statement is posted on Dateline’s web site and also attached below for your reference.
The statement echoes what I’ve said on many occasions – including in my testimony to the U.S. Senate: Allianz is committed to ensuring that our products meet the needs of the people who entrust their hard-earned savings to us. We’ve taken significant steps to make sure consumers are fully informed and only purchase products that are suitable for their needs. It is important to remember that our products can play a unique role as an important part of a balanced financial plan. Fixed indexed annuities also offer consumers the opportunity for growth along with a guarantee that they will never lose a nickel of principal regardless of stock market performance.
We are committed to maintaining a world-class organization, and will not deviate from this objective. We remain focused on meeting the needs of both our consumers and producers. We have never wavered in our commitment to the highest ethical standards and absolute accountability.
Dateline NBC Annuity Expose Falls Short…
Well, I guess Chris Hansen has caught all of the online predators, since now he is doing sting operations on insurance agents. Last night, Dateline aired Tricks Of The Trade, which was billed as an expose on bad insurance agents caught in the act trick…