In 1995 my mother discovered that American General's agent John Hall forged my disabled sister's name on her policy and cashed it and kept the money. Hall also stole funds by misdirecting money given to him. My mother reported the theft immediately upon discovery to American General's Pittsburgh Sales Manager who admitted that a theft did take place after reviewing records my mother submitted to him. My mother kept detailed records and cancelled checks because she was responsible for my sister's financial future for when my mother was gone. It took 6 months and my mother's hospitalization due to stress to get minimal response and another three months and threat of a law suit to get a response from their home office in Tenneesee.
My mother devoloped stress induced shingles and suffered numbness in her right leg and also developed ulcerated colitis. Diane resigned her job at Easter Seals because my mother was not able to drive her to downtown Pittsburgh each day and because my mother was incapacitated for many months and Diane stay home to be with her.
American General made adjustments for the theft but also produced a policy that was not purchased by my sister. This caused my mother much concern because she didn't feel American General had reseached all of the actions by agent John Hall. After protesting to American General's General Sales Manager and subsequent agents that the policy didn't belong to my sister, they said "as far as they were concerned the policy did belong to my sister".
In January after my mother passed away and I assumed responsibity for my handicapped sister and her affairs, we discovered Hall had sold my sister 11 individual IRA annunity policies. My sister worked for 30 years in an Easter Seals sheltered workshop and didn't have to pay taxes. He received commissions for these sales. Hall told my mother and sister that if she bought these annunities from him that she would receive a check every month for the rest of her life when she reached 59 years old.in 2003 we found that not to be true and she would have to wait until each annunity matured. American General's Sales Manager and agents knew my sister worked in a sheltered workshop but didn't do anything to correct Hall's churning practices.
When I contacted American General about the misrepresentation on the annunities, they offered her cast surrender forms and that was all. After hiring a lawyer and getting records from American General, we discovered that they "manufactured" the mystery policy and forged my mother and my sister's signatures. I feel they were hoping to quiet my mother way "giving" this policy to my sister.
This policy was never cashed in as American General's agent suggested, because my mother was convinced they would some day discover they mistake and want the money back from my sister.
Today, after two years and spending $14,000 on legal fees, American General has offered to give her policies with no penalities.
It is going to cost $50,000 or more to continue this law suit because of stale tactics from their lawyers, etc. What can we do? Have you had similar experiences? Please let me know what other resources and ways to go.
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