Negrete
Negrete Ex Rel. Ow v. Fidelity & Guaranty Life Insurance
Opinion
Opinion
Snyder, J.
Proceedings: MOTION TO DISMISS DEFENDANTS FIDELITY AND GUARANTY LIFE INSURANCE COMPANY [FRCP 12(b)(6) ] (filed December 5, 2005)
Plaintiff Vida F. Negrete alleges that on September 1, 2004, defendant Fidelity and Guaranty Life Insurance Company (“F & G” or “defendant”) defrauded class representative Everett E. Ow (“Ow”) into purchasing a deferred annuity that matured after his actuarial life expectancy. Class Action Complaint (“Complaint”) ¶ 1. Specifically, paragraph 1 of the Complaint provides:
The Complaint further alleges that F & G’s aggressive marketing of such unsuitable annuities to seniors arose in late 2000, after F & G abandoned internal supervisory policies limiting the issuance of annuities to seniors. Complaint ¶ 8-12. The Complaint also alleges that F & G engaged in a systematic “churning” scheme. According to the Complaint, “churning” entails the use of deceptive practices to deplete the accumulated cash value of an existing annuity. Complaint ¶ 24. Plaintiff alleges that here F & G, inter alia, used deceptive standard forms and other written materials to -mislead prospective senior annuitants into believing that the annuity products they purchased were suitable,…