Minnesota AG Settles Case Against Annuity Sellers

Thousands of Minnesota senior citizens could be eligible for refunds from companies that sold them questionable annuities.

Minnesota Attorney General Lori Swanson has settled her case with Aviva USA Corp. and AmerUs Life Insurance Co. People who purchased long-term annuities when they were older than 65 can apply to pull their money out of those funds without penalty and with interest.

Swanson says the companies, which are related, will liberally weigh those claims. She had accused them of selling unsuitable policies to the elderly.

There are a total of 4,500 policies valued at $250 million eligible for the program, but similar settlements have shown only a fraction of policyholders ask for refunds.

In the court settlement, the companies deny breaking consumer protection laws. They will pay the state $375,000.