DES MOINES, Iowa -- The Minnesota attorney general's office has settled a lawsuit against an Iowa insurance company that allegedly sold unsuitable long-term annuities to senior citizens.
Minnesota Attorney General Lori Swanson announced the settlement with Midland National Life Insurance Co. on Monday.
Swanson claimed that Midland misrepresented or failed to disclose terms of the annuities to senior citizens. She alleged that the annuities were not appropriate for senior citizens because they could lock up investors' funds for more than 10 years and include early withdrawal penalties up to 25 percent.
The settlement is modeled after earlier agreements with Allianz Life Insurance Co. of North America, American Equity Investment Life Insurance Co. and AmerUs Life Insurance Co. It allows seniors to file claims for refunds.
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