Rand
Rand v. American National Insurance
Opinion
Opinion
Illston, J.
ORDER RE: CROSS-MOTIONS FOR PARTIAL SUMMARY JUDGMENT
On September 10, 2010, the Court held a hearing on the parties’ cross-motions for partial summary judgment. For the reasons set forth below, the parties’ motions are GRANTED in part and DENIED in part.
BACKGROUND
Plaintiff Daphne Rand, by and through Debra Dolch, as conservator of her person and estate, filed this class action against defendant American National Insurance Company (“ANICO”) alleging that defendant used unfair, deceptive and unlawful sales practices in marketing its deferred annuity products to senior citizens in California. An annuity is a contract between an insurance company and the annuitant. The annuitant makes payments, either in installments or in one lump-sum, to the insurance company. Compl. ¶¶ 16-17. A deferred annuity postpones payment to the annuitant until some agreed upon point in the future. During the deferment period, the principal gains interest, but there is a penalty for withdrawing the money early. Id. ¶¶ 17,19.
Rand was 86 years old when she purchased two separate ANICO Benchmark Reliance annuities. The annuities offered Rand an investment with a guaranteed principal for twenty years,…