AXA Pays $20M To End NY Probe Of Annuity Contract Tweaks

Law360, New York (March 17, 2014, 5:04 PM EDT) -- AXA Equitable Life Insurance Co. agreed Monday to pay a $20 million fine to New York regulators who said the New York City-based insurance giant changed the terms of customers' variable annuity contracts, potentially limiting returns in the tax-deferred products, without making proper disclosures.

The alterations "effectively changed the nature of the product that the policyholders purchased" by suppressing the potential for gains for aggressive investors — and also the potential value of guaranteed benefits — according to the New York State Department of Financial Services....
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