July 29, 2008
The SEC "needs" to take over regulation of these "indexed annuities", period.
Rosalie Whittington, of Raleigh NC, is a prime example of why. She's 80 yrs old and was sold two separate annuities that begin paying at 90 and 105 yrs old. The NC State Dept of Insurance office says the agent, Mr Reinheimer, did nothing to violate statues, and therefore is blameless, but there is something seriously wrong with this country when we start claiming that this kind of sale does not represent some form of fraudulant greed on the part of the agent.
These annuities involved several hundreds of thousands of dollars, with the agent making 8 to 10%.
Mrs. Whittington was able to recoupe much of her money after 1.5 yrs of efforts on the part of her neice. But that does not change the fact that according to the current regulators of agents like Mr. Reinheimer, there was nothing inappropriate in the agents actions - selling products that you must be 105 yrs old to collect on ---- Give me a break.
This industry needs some serious new enforcement oversight....
Thanks.