A report released by the Financial Conduct Authority in February 2014, said that the annuities market is messy and that customers are not getting the deals they deserve. In response, the government has put a cap on the sale of annuities. This cut to the annuities market has prompted a possible merger between Aviva USA and Friends Life for $8.8 billion.
According to Reuters, Aviva USA reportedly sold the wrong types of annuities to seniors and elders. Annuities are a form of insurance investment that is designed to provide scheduled payments to the holder, after retirement. In general, annuities are not the most fitting type of investment for seniors and elders. Seniors purchasing annuities face long surrender periods with a high surrender fee, which can become very expensive. Aviva USA attributes this issue to a faulty sales process, and not to deliberate fraudulent practices. Therefore, seniors and elders should be careful when purchasing an annuity, making sure they thoroughly understand what an annuity is, or what type of annuity they are purchasing.
Aviva USA said they responded promptly once they became aware of the problem. The company also communicated that the amounts required to remedy this problem are fairly minor. Customers, who were sold the wrong pensions, will be reimbursed by Aviva USA.
If you have an Aviva USA Deferred Annuity and/or Indexed Universal Life insurance policy and would like a free and confidential legal evaluation of it, contact Evans Law Firm, Inc. at 415-441-8669 or via email at firstname.lastname@example.org.