Glenn Neasham, an insurance agent by trade, sold an Allianz MasterDex 10 annuity to Fran Schuber, an 83-year old woman. The MasterDex 10 annuity was approved for sale by the California Department of Insurance to persons through the age of 85 years. Despite such approval by the California Department of Insurance, Neasham was prosecuted for committing theft from an elder by selling her an annuity which the prosecutor argued to the jury "was an unsuitable product for her age." The prosecutor on the case further argued that Neasham was motivated by the 8% commission generated by the sale which roughly translated to $14,000 in actual dollars and that Schuber was denied access to her money because of the annuity. Even though Schuber made money on the annuity, Glenn Neasham was convicted for theft which sent ripples of shock throughout the insurance industry. The case conviction had significant implications for the industry as it raised questions about prosecution risks that agents face for similar sales to elders.
Stay tuned for more on this topic on our subsequent blog.
*This blog entry was not written by an Attorney and should not be construed as professional legal advice.