Practice Area:Lawsuits / Disputes
Outcome:Settled. Insurer agreed to rescind the new annuity, restore the entire principal, and pay attorney's fees.
Description:M.P. is in her late 80s. She had an annuity with the insurance company, which was coming to the end of its term. The company's agent advised her to invest in a new annuity, and M.P. followed the agent's advice. The insurer, however, did not treat the transaction as a 1031 exchange, causing a significant tax liability and loss of funds.