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Article: U.S. seeks to overturn VALIC ruling. (Variable Annuity Life Insurance Co.)
- Article from:
- National Underwriter Life & Health-Financial Services Edition
- Article date:
- May 2, 1994
- Author:
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Copyright informationCOPYRIGHT 1994 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON -- The Justice Department is asking the United States Supreme Court to overturn an appellate court decision barring banks from selling fixed and variable annuities.
Justice said the lower court erred twice. The first error came when the court ruled that annuities are insurance, the department said.
The second error, it continued, came in a ruling that Section 92 of the National Bank Act prohibits banks outside small towns from selling annuities.
The case at issue is Ludwig v. VALIC, in which the Variable Annunity Life Insurance Company challenged a ruling by the Comptroller of the Currency which said that annuities are investment, ...