New York’s Department of Financial Services says AXA Equitable Life Insurance Co. will pay a $20 million fine under a consent order following changes in its annuities that regulators say were not adequately explained and affected thousands of New Yorkers.
The state agency says an investigation begun in 2011 showed AXA changed some investments that limited potential returns without adequate notice to the department. That limited the state’s ability to protect consumers, such as with a requirement they "opt in" to the changes.
Superintendent Ben Lawsky says with retirement products like annuities, insurers "must go above and beyond" to explain changes that would alter investor returns.
The company says it routinely enhances investments, including its "managed volatility strategy" options, and it aims for best practices, including communicating with regulators.
Source Associated Press
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