PennLife pays $925,000 forfeiture

Pennsylvania Life Insurance Co. of Lake Mary, Fla., has agreed to a $925,000 settlement with Wisconsin insurance commissioner Sean Dilweg, following allegations of unsuitable annuity sales. It is the largest settlement by an insurance company in Wisconsin. In addition to the forfeiture, the carrier will also offer a restitution program for up to 2,200 purchasers, who are primarily senior citizens in Wisconsin. Those individuals were sold more than $55 million in annuity products between 2000 and 2007. As part of the agreement with the state, PennLife has also been barred from selling annuities in Wisconsin and has been ordered to comply with state laws on suitability and sales practices. The carrier must also supervise its agents to ensure compliance with the law. The Madison-based commissioner’s office may also revoke PennLife’s license to do business in Wisconsin if it violates the agreement. Leading up to Monday’s settlement, Wisconsin began disciplining PennLife’s agents in 2006 after consumers complained to the commissioner’s office. The agents were allegedly making misleading sales representations and selling unsuitable products or asset enhancing policies to seniors. Though PennLife agreed to the penalty and settlement, it denied violating the law.