John Hancock settles claims in Massachusetts

BOSTON – John Hancock Life Insurance Co., along with a subsidiary broker-dealer, last week agreed to refund senior citizens in Massachusetts more than $550,000 to settle allegations that it failed to supervise one if its representatives, Attorney General Martha Coakley announced last week.
The representative, James E. Moniz, was accused of being permitted to sell unsuitable variable life insurance policies, variable annuities and other insurance and financial products, Coakley said. The agreement also requires John Hancock to make 145 additional refund and penalty-waiver offers to consumers, primarily seniors, who purchased certain variable annuities and variable life insurance policies from Moniz. John Hancock will also make a payment of $165,000 to the commonwealth.
According to a statement, Moniz developed an association with a mortgage broker from a separate company to induce senior clients to take out reverse mortgages and invest the proceeds in unsuitable variable annuities.
In October 2013, John Hancock terminated Moniz’ employment. •

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