South Florida Arbitration & Litigation Lawyer Blog
Equity Indexed Annuity (Elder Abuse) – Fort Lauderdale, Boca Raton, Delray Beach, Lake Worth and West Palm Beach, Florida Insurance (fixed and variable annuity) and Securities Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney:
An Equity Indexed Annuity is an annuity whose interest or other types of earnings, during the accumulation period, are linked to rises in a stock index. Such contracts have a minimum annual return that guarantees principal, so they can offer upside potential and downside protection. They sometimes come with a cap and usually have early withdrawal (surrender) penalties.
Recently, we have seen an increase in the twisting of fixed and variable annuity and other types of insurance products. Twisting is the unethical practice of convincing a customer to trade and insurance product unnecessarily, thereby generating a commission for the broker or salesperson. An example of twisting in the insurance arena arises when an insurance salesperson persuades a policyholder to cancel his or her policy or allow it to lapse, in order to sell the insured a new policy, which would be more costly but which would produce sizable commissions for the salesperson. The damage associated with this unethical practice is particularly devastating to the elderly.
Please keep in mind that this information is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as legal or investment advice. If the reader has any questions concerning the contents of this post, you should contact a qualified professional.
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At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.