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(American Life InsuranceGuide Net News)Ohio National Financial Insurance GroupWithin a week, he was sued by two companies one after another.An independent brokerage company and another company named "LPL Financial Consultant" filed lawsuits separately within the same week, accusingOhio National Financial InsuranceDefault on variable annuities.
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Ohio National announces that it will no longer underwrite variable annuity VA
The two allegations hope to file a class action lawsuit against the Cincinnati-based insurance company andOhio NationalInvestment banking services, no longer underwrite variable annuity contracts, and decided that after December 12, no more payments containing "minimum income guarantee"RiderThe renewal commission for the product.
A financial adviser who represented this product claimed that according to the LPL company’s follow-upOhio National Financial GroupWith the signed sales agreement, he should receive a renewal commission of $89,000 next year.
At the same time, in addition to the two plaintiffs, another company called Veritas Independent Partners also accusedOhio National Financial GroupViolated the renewal sales agreement.
Ohio National Annuity renewal commission agreement triggers litigation
After the trust business plummeted, sales of annuity products rebounded this year.The sales of annuity products of the 50 largest investment banks last year amounted to approximately US$44 billion, accounting for nearly one-sixth of their overall business income.Ohio NationalIt is the 2018th largest publisher in 18, with sales of more than 4 million U.S. dollars.
"in spite ofOhio NationalHas the right to terminate future annuity sales, but it cannotUnilateral terminationFor existing annuity products, the obligation to continue to pay renewal commissions. "Said in the prosecution file.
Attorney Jeffrey Moore said, "This case is very important to hundreds of independent brokers and sales representatives. They were promised that they could get annual renewal commissions through hard work, and therefore invested a lot of time. And resources to establish a business model."
Ohio NationalA company spokesperson said the company will not comment on pending litigation.The company promised to modify the service agreement of existing variable annuity products to continue to support these products, but the financial adviser will not be compensated.
Ohio National faces other charges including "unfairness"
Neither of the two litigation documents provided clear compensation figures, but the lawsuit filed by Veritas claimed thatOhio NationalVariable annuity assets under management reached US$236 billion, accounting for 56% of its asset under management (AUM).
The lawsuit also stated thatOhio NationalThe company "These unfair and improper policies do not treat all brokerage agencies equally", clarifying that Morgan Stanley andOhio National The financial advisors of the investment banking department will continue to receive renewal commissions.
In addition to allegationsOhio National In addition to breach of contract,Ohio National He was also accused of "unjust enrichment", "infringement interference", and "Promissory estoppel while seeking declaratory relief".
American Life InsuranceGuide network will further follow upOhio National The progress of the case.
