Oregon Public Broadcasting

The state has ordered the Bankers Life and Casualty Company to refund money to about 20 senior citizens and pay a $150,000 fine. Kristian Foden-Vencil has more.

The state says the insurance company convinced elderly customers to put so much money into annuities, that they didn’t have enough left to pay everyday bills -- like rent and food.

The state’s consumer department director, Cory Streisinger, says Bankers Life employed a bait and switch operation to catch the attention of seniors and then they’d sell them investments that were completely unsuitable.

Cory Streisinger: “We do expect our insurance companies to exercise the right level of scrutiny. And in fact, if somebody is in their 80s and they are sold an annuity that will provide them a small income, extending over many many years, exceeding their life expectancy, that’s probably not a suitable product for them.”

Bankers Life and Casualty issued a statement saying it’s taken steps to ensure problems don’t occur in the future.