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U.S. seeks to overturn VALIC ruling. (Variable Annuity Life Insurance Co.)

The Supreme Court has been asked by the US Justice Dept to overturn the 5th US Circuit Court of Appeals ruling in the case of Ludwig v. Variable Annuity Life Insurance Co (VALIC) that prevents banks from marketing annuities. The Justice Dept's brief to the Supreme Court contends that the 5th Circuit erred in rendering its VALIC decision since annuities should not be considered to be insurance products for they do not indemnify against risk.

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 ...

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