Filed Under:Your Practice, Sales Marketing

Glenn Neasham Case: Will Advisors Now Need to Assess Clients for Dementia?

In their twilight years, seniors' cognitive powers diminish. Photo credit: goldsaint
In their twilight years, seniors' cognitive powers diminish. Photo credit: goldsaint

Despite the conviction and incarceration of California insurance advisor Glenn Neasham for selling an annuity to an 83-year-old client, advisors are unlikely to curtail their annuity sales business, say several observers. Instead, they say the probable outcome is a more thorough suitability review that could take into account a senior’s mental status.

For more on the Neasham story, click here.

Yet Fechtel does concede the case raises questions about the underwriting procedures for annuities sold to seniors, as well as the kind of safeguards insurers and agents need to employ. The annuity sold in this instance was an Allianz MasterDex 10.

“There ought to be not just simply a warning about, oh, don’t take advantage of seniors. But there ought to be a protocol if we know, as we do know, that seniors can lose their mental faculties,” Fechtel says. “I’m amazed Allianz doesn’t have an underwriting protocol to protect their agents from possibly making an innocent mistake.”

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Nichole Morford

Nichole Morford
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