Although it left the market in 2011, Genworth Life Insurance Co. had been a major, nationwide provider of annuities to seniors. Several lawsuits have been filed against Genworth, alleging that it failed to disclose fully certain terms to elderly customers.
A recent class action suit in Washington state alleging that Genworth Life Insurance sales representatives and independent contractors may have misrepresented the risks inherent to the purchase of certain annuities, misrepresented or failed to disclose facts that would have been material to the customers’ decision whether to purchase the annuities, and failed to determine whether the annuities in question were appropriate investments for the individual investors.
For years, Genworth Life Insurance sold to elderly clients what are known as life-only single premium intermediate annuities (“LOSPIA”). The client would pay a substantial premium to purchase the LOSPIA, and in return would receive a periodic payment for the remainder of his or her life. LOSPIAs provide a good return if the customer outlives his or her life expectancy. However, the LOSPIA makes no further payments to the customer’s estate upon his or her death. This often makes LOSPIAs a poor investment choice for senior citizens over age 85.
In one illustrative case, Genworth Life Insurance issued LOSPIA annuities costing $155,000 to a 91-year-old man. By the time he died less than three years later, he had received only $60,000 in periodic payments from the annuity, and his estate received no compensation for the remaining unpaid principal.
Among other allegations, the class action claimed Genworth Life Insurance had committed objectionable practices including: failure to disclose or discuss mortality tables on which the LOSPIA pricing was based, failure to discuss other annuity products that might have been more suitable, misrepresentations about tax advantages and guaranteed payouts, failing to perform “suitability analyses:” for each class member, not checking to determine whether annuitants were using borrowed funds to purchase LOSPIAs, and failing to adhere to a set of voluntary ethical standards. Evans Law Firm, Inc. was not involved in this case but will investigate your claims for annuities sold by Genworth Life Insurance Company.
If you or a loved one has purchased an annuity from Genworth Life Insurance, please contact Evans Law Firm, Inc. today for a free and confidential evaluation of your rights. We can be reached by email at email@example.com, or by telephone at (888) 503-8267 or (415) 441-8669.