In a 2007 lawsuit filed by an attorney general, Midland National Life Insurance Company was accused of selling deferred annuities to senior citizens. It is alleged that Midland National Life Insurance Company sold deferred annuities to senior citizens 62 years and older, with terms that kept their money illiquid for up to 14 years unless they paid surrender charges of up to 25 percent. It is illegal to sell an annuity that is unsuitable for an individual’s circumstances. The lawsuit also alleged that Midland National Life Insurance Company committed consumer fraud, false advertising, and deceptive sales practices relating to the sale of deferred annuities. Midland National Life Insurance Company denied these allegations. Deferred annuities fraud lawyers warn the public to read the fine print before buying a deferred annuity.
Midland National Life Insurance Company denied all the allegations in the lawsuit and a spokesman said that the company believes that deferred fixed annuities are appropriate for people seeking to preserve assets. Deferred annuities investments have been in the news recently because of widespread abuse among the senior citizens.