Floridians Alerted To Beware Of Unauthorized Life Insurance And Annuity Entity
Apr 13, 2007
The Florida Office of Insurance Regulation (OIR) today ordered National Foundation of America (NFOA), an unauthorized entity engaged in fraudulent marketing of annuities, to immediately cease its Florida activities. The following OIR press release describes the consumer alert issued in conjunction with the news.
Should you have any comments or questions, please do not hesitate to contact this office.
TALLAHASSEE (04/13/2007) – Florida Insurance Commissioner Kevin McCarty today ordered the National Foundation of America (NFOA), an alleged charitable organization in Florida, to immediately cease their activities in Florida and with Florida consumers. NFOA is an unauthorized entity that is marketing a term certain annuity product to Florida consumers by convincing them to replace their existing annuities or cash value life insurance policies. NFOA is a registered corporation in the state of Tennessee but not in Florida. Richard K. Olive is listed as the President and Executive Director of NFOA and Susan L. Olive is the listed as the Secretary.
McCarty said some consumers may have already entered into contracts based on five complaints against NFOA. There are additional complaints from Florida consumers whose potential economic harm has not been determined. Agents and investigators from both the Office of Insurance Regulation and the Department of Financial Services’ Bureau of Agent and Agency Investigations are working together in the investigation.
“The investigation against this entity is continuing and we are trying to unscramble the puzzle and determine the full extent of their activities,” said McCarty. “Floridians need to be made aware of the potential economic danger of dealing with this entity.”
The investigation of NFOA has revealed that policy values in an existing life insurance policy or annuity contract are utilized to purchase a term certain annuity issued by NFOA. Potential victims may be induced to lapse, forfeit, surrender, terminate, borrow on, or convert existing insurance policy or annuity contract values to purchase a replacement policy or annuity contract from NFOA.
Legitimate donor or charitable gift annuities/policies transfer or designate some financial benefit to a designated charity, organization or institution. There are over 700 charitable gift annuities registered to do business in the state.
Floridians should never buy products from unregistered insurance or financial companies nor should they deal with agents, brokers or representatives who are not licensed. To check on the license status of a company or agent, consumers should visit <http://www.fldfs.com/>, and click on Verify Before You Buy, or call the Department of Financial Services Helpline at 1-800-342-2762.