WEST DES MOINES, Iowa–LAWFUEL – The Law Newswire – American Equity Investment Life Holding Company (NYSE:AEL), today became the target of a lawsuit filed by the Attorney General of the State of Minnesota concerning sales of deferred annuity products to Minnesota residents. The suit was brought against AEL’s primary operating subsidiary, American Equity Investment Life Insurance Company (“American Equity”). American Equity has a strong market conduct record in the State of Minnesota. American Equity had cooperated fully with the Attorney General’s requests for information from the Company, and yet was denied any opportunity to discuss the Company, products or sales practices with the Minnesota Attorney General’s office prior to the filing of its lawsuit. We strongly believe the allegations of the Attorney General are without merit.
American Equity is a leader in providing products offering retirement income security to consumers who need and want them. While no one type of savings strategy is appropriate for all purchasers, American Equity’s deferred annuities can be an excellent choice for those seeking a safe money alternative for a portion of their savings.
We believe that market conduct starts with sound product design. We market our products through a distribution network of licensed independent insurance agents who share our commitment to high standards in sales practices. We were among the first annuity writers to implement suitability reviews of annuity sales, and we have worked with the Minnesota Department of Commerce and the Iowa Insurance Division to help develop industry-wide standards of suitability and to educate regulators, agents and consumers about annuity products.
In 2006, American Equity paid over $31.6 million in penalty-free cash benefit distributions to Minnesota residents. All products types offered by us in the State of Minnesota were reviewed and approved by the Minnesota Department of Commerce prior to sale. Further, all sales of American Equity products in every state are accompanied by clear and complete disclosures at the point of sale. The products offer substantial benefits to consumers including guaranteed principal and minimum interest, a choice among annual interest crediting strategies, tax-deferred accumulation of savings, 10% annual penalty-free withdrawal rights, enhanced withdrawal rights if the consumer enters a nursing home or becomes terminally ill, and payment of full contract value at death without penalty.
ABOUT AMERICAN EQUITY
American Equity Investment life Holding Company, through its wholly-owned operating subsidiaries, is a full service under writer of a broad line of annuity and insurance products, with a primary emphasis on the sale of fixed rate and index annuities. The company’s headquarters are located at 5000 Westown Parkway, West Des Moines, Iowa, 50266. The mailing address of the company is: P.O. Box 71216, Des Moines, Iowa 50325.