Allianz Life Insurance Co.

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• Minnesota Charges Allianz Life Sold Unsuitable Annuities to Seniors --- • Consumer Complaints

Daniel of Richmond, CA October 9, 2007

I purchased a deferred annuity for 100,000 10/02/2000. I was under the impression that if I left it untouched until I was 591/2 yrs old, I could receive its full annuitization value ( which is presently 167,340.34 ). I will be 59 1/2 May 12,of 2008, at which time I planned on taking a FULL withdrawal to pay off my home. I recently found out that I will have to pay early surrender penalties, if I do this. The beginning surrender value at this point in time is 110,216.98, and the ending cash surrender value is 113,970.85.

Had I know the consequences of this transaction, I would have not bought into this annuity. I also have 3 others that equal about 100,000, with Allianz, and I cannot touch (full withdrawal) them for several years or more without paying heafty penalties.I thought I fully understood the financial advisor's explanation, but apparently I do not recall understanding that my money would literally be locked up well beyond my 59 1/2 year requirement.

I am at a loss for words, and am not sure how to handle this dilemma.I have refinanced my home for a 5 year interest only loan, with the intent of paying it off before the loan was due ( 2 years to go). I am on S.S.D.I.,and it would probably be next to impossible to refinance, because of my limited income. I will have no choice but to bite the bullet and take the surrender value, as I am at a point of no return!

Sondra of Largo, FL April 7, 2007

An agent sold us the Allianz Alterity Variable Annuity product in March of 2006. Due to complications with transferral of funds from our other investments, we did not get the actual contract for quite some time. However, the investment had been made and the money had already been transferred prior to the receipt of the contract. This product is extremely complex, and the agent clearly did not understand the product when he presented it.

Shortly after we received the actual contract, on June 1, 2006, we contacted the regional VP for Allianz. His description of the product did not match the agent's, but we thought we understood more about our investment after speaking with him. Several months ago, we began to realize that we STILL didn't understand the product. We started calling the Allianz Service Center. We spoke to several different reps and one or two managers. Each person told us something different.

Finally, out of frustration, I contacted the President of Allianz and asked him to clarify the product and give us his personal guarantee as well as that of one of his attorneys, that we would be able to depend upon his responses. Instead of responding directly, he had one of his administrative people in charge of variable annuities, respond. Her attempt at responding was mediocre at best, and she still did not clarify all of the points we needed to know. We are senior citizens with a fairly good knowledge of investments, yet, even WE are unable to understand this product.

What appears to be happening here is that Allianz is purposely putting out a confusing and complicated product while not informing the recipients that the only way to access their guaranteed amounts is to take a long term payout or to annuitize at a very low rate. In other words, they make it look good going in, but give you no fair way to exit the product. This may be legal, but we feel it is very unethical.

We are locked into this product for at least 6 more years and still are not sure about how to exit the product at the end of that time without losing money or being forced to pay their outrageous fees for the next 26 years. The products within the annuity are not the best we've seen, which limits our choices substantially. They leave no way to shelter our money, so if equities decline significantly, we could lose a great deal of money. We understood going in that there would be penalties in the first 7 years for early withdrawal, but we were told there would be no fees and at the end of 7 years we would receive a guaranteed return of 7%. They make it very difficult to get that amount because they are charging 3% for fees. We could have done better with a CD and would like to exit this product but do not feel we will be able to do so.

For now, we are removing 10% annually to lessen the blow...if there is some other remedy available to us, we'd sure like to know about it. Also, we think the public should know Allianz is selling this product and we think the government should prohibit them from doing so.  

Kent of Farmingtton, MI April 3, 2007

I was deceived by Mr Barry Keeley. At age 65 I was informed through his radio promotion that I could realize a gain of 10% if I bought his product Allianz Bonus Dex Annuity. I did buy three annuities and was informed that when I turn 70 1/2, (5 years from the sign up date) I could take my money out and begin spending my life savings...133,000.00. A month or so later I called the Allianz Life Ins Co in St Paul, MN asking about the Bonus Dex product. The customer service person told me that I should never have been sold the Bonus Dex Annuity because it matures 15 years after sign up.

Well, needless to say I was extremely upset, and called Mr Keeley wanting to get my money back. He told me that the Allianz customer service group do not know their own products. At that time I had nowhere to turn. Like many other seniors that have been taken advantage of, I'm amazed that this continues to occur. I know of the class action lawsuite being brought against Allianz, but how about all the independent representatives that are lying through their teeth. Remove their licenses and return all monies plus the interest that was promised.

I'm 69 years old this week and I have not yet been able to spend one cent of my retirement because of Mr Keeley. I want the universe to know that this continues to occur and it must be stopped.

Sharyn of Austin, TX March 19, 2007

I met Larry B. on the pretense that he wanted to date me. Immediately he started to try to sell me Allianz Bonus Dex Annuities. This was in 2002 when my stocks were plummeting. The guarantee of no less than 3% on my money sounded good. I got very anxious though when it came time to notarize the papers. He became very angry with me and I felt threatened. So unfortunately I signed. I told him that I did not want to touch my equities and options. But I had signed an extra paper for another annuity. I was negligent in not getting the paper back from him. About a month later he called me from Dallas and said that I needed to get in on this great deal because the %age was going down in a couple of days. I was very ill at the time and I don't remember the whole conversation. I do know that I never gave him permission to sell the remainder of my stocks. About 2 weeks later I received information in the mail that all of my stocks had been sold, 113,000 worth at their lowest possible point. He had taken the paper, initialed it with his own initials, and dated it for the date the stocks were sold.

I almost had a nervous breakdown when I found out what he had done. My mother had died a few months earlier and the stress was almost too much for me. I filed a complaint with the SEC, and got an attorney to attempt to get my money back. Of course, they would only give me what I would have gained in that last six weeks since the stocks started to rally. I received about 11,000 for the 113,000 that I had lost. Now I am stuck with an annuity that I did not want in the first place.

My money is tied up for the next 15 years, which was not explained to me and Mr. B is still selling (stealing) to people in Austin, Tx. I just pray that some other single woman did not fall prey to what he is doing, but I am sure there has been others. I am still taking a loss every year on my income tax for the 113,000 and will be for several years. I have never been able to recover. I am looking at retirement in 7 years. That money was also from an inheritance that my father had worked for his whole life.

Jo of Cody, WY February 19, 2007

I was sold an Annunity to supplement my Social Security income and promised a 10% bonus I was led to believe I could annunitize any time after the first year. Now I find I cannot do that for five years. I was over 73 years old at that time. I am now past 75 and wish to stop working, but cannot annunitize for 3 more years.

The method of figuring interest earned is also very disapointing. I do not think this was an appropriate investment to be sold to someone my age and I can't get my money out without a hugh financial loss. If I annunitize at age 78, I will not recoup my initial investment until I am 88 and not get back the bonus and/or any interest earned for serveral more years.

I do not know what the life expectancy is for me, but I doubt it is that long. My money is tied up and I can't afford to lose the amount for cash surrender.

Barbara of Desert Hot Springs, CA February 9, 2007

We were told by Alan L.Cerf that we could get better interest with him than our Bank [Wells Fargo] could give to us and we could draw out our money when we needed such. My husband is nearing 90 years of age and I am 81. We called Mr. Cerf to come by and explain the two packs of 14 pages Alliance had sent to us. He said he was very busy. Our bank had already withdrawn our entire savings. We still have not heard from Mr Cerf. I called 800-950-1962. I was told we would be able to withdraw 6,000. on the anniversary date. The person I talked to advised me to call Mr Cerf.

We are in need of some money soon for Dr. and other bills that might come in to us.

Arline of The Villages, FL January 24, 2007

We attended a financial seminar, like so many other seniors around here and got talked into purchasing a Elite Annuity with Allianz Life Insurance Co. It was presented to us in such a way that we thought it would bring us a nice yield and we could take the money out when we saw fit. We did not realize that our money would be tied up for years and that if we tried to take the money out we would really be penalized.

My husband is 74 yrs. old and I am 68. We are very upset over this and do not know what to do about this. We did this transaction in May of 2004. Our savings are all tied up when we could be using some for extra expenses.

Shirley of Redondo Beach, CA December 3, 2006

I transferred an annuity I had with Vanguard to Allianz in August 2004 as a result of a sales talk given in my home by a Mr. Elkin. He explained that there was a bonus of 12% for signing up and talked about the standing of Allianz in the field. What he did not do is explain clearly that I would have to hold the annuity for five years & that it would take ten years to fully realize the worth of the annuity.

I was 81 years old when this happened & I will be 96 years old when the annuity fully matures. My husband & I will need this money well before the maturity date for our living expenses & for college education for our 2 grandchildren. I have called Mr. Elkin 6-8 times in the last 6 months & left messages for him to return the calls & not one returned call. This makes me even more sure that I was taken advantage of due to my age.

You can't imagine how inadequate one feels when you realize that you were not alert enough to read all the small print in the contract & I guess if I had I might not have understood what it said anyway. This will cause hardship economically to my family but I hope not physical harm but one can not tell as you reach my age you realize every day that you stay alive is good.

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