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CONSUMER ALERT - Floridians Alerted to
Beware of Unauthorized Life Insurance and Annuity Entity
4/13/07, Tallahassee, FLA – 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 www.fldfs.com, and click on Verify Before You
Buy, or call the Department of Financial Services' Helpline
at 1-800-342-2762.
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