Los Angeles Times
January  26, 2005
Josh Friedman

Annuities Coming Under Increased Scrutiny

One woman files a suit after learning that her late husband's policy wouldn't make payments until 2045.

ABSTRACT

Carmen Migliaccio said her husband thought he was ensuring their financial well-being when he shifted the bulk of their savings into a Midland National Life Insurance Co. annuity.

The problem, she said, became apparent only after he died in May: The annuity wasn't scheduled to begin making payments until Jan. 27, 2045 — when John G. Migliaccio would have been 115 years old.

On Tuesday, his widow sued Midland National, accusing the company of unfair sales practices and failure to comply with state disclosure rules governing annuities.

She said that when her husband bought the annuity, "he was a sick man and he wanted to do it, so I said OK. Now I feel like they took advantage of us."

Read Full Article