Warren man files suit against insurers

The Warren man invested $128,000.

YOUNGSTOWN — A 94-year-old Warren man has filed a federal lawsuit against a Milwaukee insurance agency and a Cedar Rapids, Iowa, life insurance company for selling a type of investment called a deferred annuity that he says is inappropriate for individuals over age 65.

Joseph Kosik of Reeves Road Northeast filed the suit against Banc One Insurance Agency Inc. and TransAmerica Life Insurance Co. Attorneys John T. Murray of Sandusky and John Huffman of Toledo filed the suit.

The suit said a Banc One Insurance agent met with Kosik in July 2002 and persuaded him to buy the annuity and make a premium payment of $128,000.

An annuity is a type of contract that guarantees a fixed or variable payment at some future time, usually retirement, the suit said.

“A deferred annuity is not appropriate for persons over 65 because elderly buyers are likely to die before the annuity contract begins to pay out,” the suit said.

“Mr. Kosik was unable to withdraw funds from his account without penalty until Aug. 10, 2006, at the age of 92. After his partial withdrawal, Mr. Kosik is permitted to withdraw yearly 10 percent of the policy value,” the suit said.

Others sold

The suit should be a class-action, the suit said, because the defendants sold thousands of deferred annuities to people such as Kosik from July 2002 to the present, the suit said.

The suit asks the court to award damages and to rescind all sales of deferred annuities made by the defendants to people over age 65.

The case is assigned to Judge Peter C. Economus.

Phone listings for Banc One Insurance Agency, Inc. in Milwaukee had been disconnected.

Cindy Nodorft, corporate communications manager for TransAmerica Life Insurance Co., said she was unaware of any such lawsuit, and her company’s policy is not to comment on pending litigation.

runyan@vindy.com