• Los Angeles Times, Thursday, February 14, 2008 1 PM

State regulators have persuaded Allianz Life Insurance Co. of North America--the biggest seller of annuities in California--to stop targeting the elderly with pitches allegedly designed to sell them pricey policies that could never pay off. Annuities are contracts that promise people who pay an upfront sum that they can depend on regular streams of future income.

The agreement between Allianz and the state Department of Insurance requires the company to set up an internal review system to make sure sales agents do not pressure senior citizens into buying investment vehicles that cannot meet their needs.

Allianz admits no guilt in signing the agreement, but also will pay $10.05 million in penalties and special assessments. "The fact that Allianz used deceptive practices and high-pressure sales tactics to lure and cajole seniors into buying unsuitable policies is appalling," says California Insurance Commissioner Steve Poizner.

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