Legal Question in Criminal Law in California

Insurance commissions

I am an independent life insurance agent. I purchased a flexible premium annuity (meaning money can be added) a number of years ago. The surrender charge on this annuity has expired and I can now freely make additions and withdrawals with no withdrawal charge.

As an agent, I receive a commission on every deposit into this annuity.

What I want to know is would I be breaking any laws if I maximized my commissions by frequently depositing and withdrawing money from this annuity?


Asked on 11/26/03, 7:57 pm

1 Answer from Attorneys
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Insurance commissions

Thank you for your posting.

The terms of the contract would certainly be one issue as to civil liability here, but more importantly, your industry may have ethical rules that could cause criminal prosecution. Unfortunately, I am not familiar enough with the rules governing insurance agents to comment, but you may wish to investigate, or have an attorney investigate and research this for you, before you begin any transactions.

I hope that this information helps, but if you want more information, have further questions, or feel that you need legal representation, please feel free to email me directly at [email protected]. It's my pleasure to assist you in any way that I can.

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Answered on 11/26/03, 9:06 pm


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