Dover – Insurance Commissioner Matt Denn has filed a complaint against an Ohio firm whose postcards direct the recipient to call about “an annuity that has reached the end of its surrender period,” even though the firm has no connection with any annuity a resident may have and is actually trolling for investment leads.

The complaint against Investors Union, LLC of Medina, Ohio doing business as the “Annuity Service Center” states the firm may be engaging in an unfair trade practice under Delaware law and sets a hearing for Sept. 13. An accompanying subpoena directs the Ohio firm to disclose all Delawareans who have received the mailing in the last five years as well as a list of any Delaware insurance agents who have contracted to receive referrals from the firm.

An annuity is a contract in which an insurance company makes a series of income payments at regular intervals in return for a premium or premiums a consumer has paid. Certain annuities, especially variable or indexed annuities where the consumer’s return is tied to stock market performance, have been criticized as being bad investments for seniors.

“It appears that this firm sends postcards to people telling them that they ‘may have an annuity’ that is expiring and they need to call to discuss their ‘options,’ even though the recipient may or may not actually have an annuity and, if they do, that it is in no way connected to this Annuity Service Center,” Commissioner Denn said. “The point of the mailing seems to be to get people to call, determine whether they have funds to invest, and then refer them to an agent that is contracted with the Ohio firm for leads.”

“I have asked for information from this firm and will ask some questions at the hearing to determine if the way they have been doing business does indeed constitute an unfair trade practice and, if so, what action should be taken,” Commissioner Denn said.

The subpoena also asks for copies of contracts Investors Union LLC has with Delaware insurance agents, the scripts used by its employees who take phone calls from those who have received the mailing, any brochures, guides or advertisements the firm has used in the last five years and any complaints or investigations against the firm in other states.

“Once again, this is a reminder that people should scrutinize their mail closely and be very cautious about discussing their finances or investments with anyone other than the financial advisors or agents they have hired,” Commissioner Denn said. “This postcard does contain some disclaimer language in tiny type under an unrelated title, but the intent of the mailing seems clear.”