NYDFS Fine Annuity Switches

On Dec. 5, NYDFS fined National Integrity $240k for annuities.

  • National Integrity Life Insurance Company violation on annuity contract sales.
  • Follows NYDFS Dec. 2016 guide on insurer annuity replacements.

Disclosure on Switches

  • Violated NY Insurance Regulations 187 and 60, on replacing annuity contracts.
  • Immediate annuity provide periodic income payments beginning in 13 months.
  • Deferred annuity can earn interest on premium before payment at future date.
  • Recommending to replace existing deferred annuity, with immediate annuities
    without disclosing income comparison may reduce consumer's lifetime income.

Alleged Violations

  • Company recommended replacing existing deferred annuities, with immediate.
  • Without disclosing annuitization comparison, with substantial amount of costs.
  • From 2011-16, company did not obtain information to determine the suitability.
  • On amount of guaranteed income available if an deferred annuity is annuitized.
  • Also failed to disclose information so customers could compare payout amount.
  • As a result, it issued immediate annuities without full annuitization information.


  • National Integrity Insurance will pay $240k civil monetary penalty for violations.
  • Pay restitution to individual consumers affected by firm's replacement practice.