Ohio National– Annuity Commissions Investigation
Chimicles Schwartz Kriner & Donaldson-Smith LLP (CSK&D) is investigating a potential class action lawsuit against Ohio National Financial Services, Inc., and certain of its subsidiaries (“Ohio National”) for its announcement on September 28, 2018, that it would cease paying trailing commissions on its existing guaranteed minimum income benefit rider (“GMIB”) variable annuities.
Specifically, Ohio National sent a letter to its broker-dealer partners on Sept. 28 to “provide notice of termination of any and all servicing agreements” in place between the two entities and their affiliates. The termination, which took effect on December 12, 2018, means that “all individual annuity sales compensation will cease at that time,” according to Ohio National’s letter. Brokers and insurance executives have called Ohio National’s elimination of some variable annuity commissions unprecedented among annuity sellers. The Insured Retirement Institute, a trade group, said the insurer’s business decisions pose a risk to the annuity industry.
If you believe you will be affected by Ohio National’s unilateral decision to cease paying commissions on its GMIB variable annuities, please contact the lawyers listed on this page.