Insurer Settles Senior Annuity Suit

Allianz Life Insurance Co. of North America has agreed to settle a lawsuit that contended the company sold annuities to senior citizens that locked up their money for as long as 15 years.

The suit by Minnesota Attorney General Lori Swanson contended the company did not tell seniors they could not cash in the annuities unless they paid substantial penalties. Under the settlement, more than 7,000 Minnesota seniors will be able to get their money back, the Pioneer Press reports.

Refunds could total $325 million if everyone opts for the cash back. The company will also pay $500,000 in attorney fees.