Ohio National Trailing Commissions Litigation

Anger Grows Over Ohio National’s Termination of Commissions on Variable Annuity Contracts

Owners of variable annuities from The Ohio National Life Insurance Company are stepping forward to express their anger about the Cincinnati-based insurance firm’s September 28th announcement that it will no longer pay trailing commissions on its sold and existing policies. Owners and their advisors claim Ohio National is failing to live up to its claims of being a company of trust and integrity, and is trying to change the rules mid-game.

In a recent article published by the financial advisory news service InvestmentNews, one Ohio National annuity owner is sharing her story, and her growing anger. As she states, Ohio National’s recent announcement means that, as an owner of one of the company’s VA contracts with a guaranteed minimum income benefit (GMIB), she has the option of keeping her existing contract or accepting a buyout offer.

The upsetting irony, she points out, is that Ohio National encourages annuity owners who received buyout offers to work with financial advisors when evaluating their specific situation and financial needs – despite the fact that Ohio National cut those advisors out when it announced it won’t pay trailing commissions. The stance indicates Ohio National expects advisors to continue servicing policies without getting compensated for their work. What’s more, they failed to provide any information about potential refunds for annual fees paid by customers, which include costs of ongoing advice.

The author goes on to echo a sentiment we recently discussed in a blog of our own – policyholders, many of whom are investors near or in retirement who require expert advice, will ultimately suffer the most as a result of Ohio National’s actions. That’s particularly true when they need to determine whether buyout offers equate to less than what would have been received over a lifetime of keeping the annuities with the guaranteed income riders promised.

The challenging position customers and advisors now find themselves in suggests Ohio National is looking to capitalize on investors making mistakes, a misunderstanding of the nuances surrounding these complex variable annuities, and a decline in review and oversight that leads to customers cashing out and savings on future commitments. The arrangement is one which benefits Ohio National’s own interests and bottom line, and is a severe breach of trust from a company that claims to be in the business of making promises.

You can read the full InvestmentNews article here.

Ohio Securities Lawyers Fighting for Advisors, Customers

Ohio Securities Lawyers David Meyer and Dennis Concilla have teamed together to fight for advisors impacted by Ohio National’s actions, and ultimately the customers whom depend on them. In November, our attorneys filed a class action lawsuit against Ohio National on behalf of securities representatives who are owed trailing commission on GMIB variable annuities, and are available to speak with anyone who would like more information about their rights and the case.

Call (888) 882-6199 or contact our firm to speak with an experienced securities attorney.