Hagens Berman has filed a case against North American Company for Health and Life Insurance ("NACOLAH") with respect to the sale and marketing of its fixed indexed annuities.
According to the complaint, NACOLAH issued "Certificates of Participation" with respect to indexed annuities that had surrender charges as high as 22% lasting as long as 14 years that have "fixed" maturity dates.
NACOLAH may have issued "certificates" instead of contracts and "fixed" the maturity dates on paper while instituting a company practice of permitting annuitization at optional maturity dates in an effort to end run consumer protection laws.
This may permit NACOLAH to pay very high commissions, which hamper the performance of the annuities because the commissions are recouped through lower interest credits or high surrender charges.
If a family member, parent, or loved one purchased a deferred annuity from North American Company for Life and Health Insurance please contact Hagens Berman.
June 1, 2012: A federal judge has rejected North American’s attempt to dismiss the case. The case will now proceed toward discovery and a trial.