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Great American Financial Resources (GAFRI) announced today that its
Great American Life, Annuity Investors Life and Loyal American Life
insurance subsidiaries have reached a settlement agreement with the
Minnesota Attorney General on all issues in her October 2007 Civil
Investigative Demand.
The settlement agreement includes defined suitability standards and
procedures for Minnesota consumers, as well as a claims review process
for past sales of certain annuity products to senior consumers. These
procedures are similar to an enhanced suitability program that the
insurance subsidiaries of GAFRI voluntarily implemented more than a year
ago. They were put into place to address evolving practices and
standards of various state and federal regulators, including the
Minnesota Attorney General.
“Were pleased for the recognition of the effectiveness of our current
enhanced suitability program, and have already implemented the minor
revisions necessary to address the Attorney Generals desire for uniform
standards in Minnesota, says Charles R. Scheper, chief operating
officer for Great American Financial Resources. “We have engaged in
comprehensive and good faith efforts to reach out to our annuity
contract owners, and respond to any issues or concerns they had with
their product or sales process. Were pleased that the Attorney General
recognizes these efforts, and we are willing to continue to work with
her office to address any issues that have yet to be brought to our
attention. Our hope is that the Attorney General will continue her
efforts to bring a robust and uniform annuity suitability process to the
entire Minnesota market.
Under the terms of the settlement agreement, the Great American
Financial Resources insurance subsidiaries have not admitted to any
wrongdoing or violation of the law, and were not subject to any fine or
penalty.
About Great American Financial Resources:
The subsidiaries of Great American Financial Resources, Inc.
offer annuities and various forms of supplemental insurance. GAFRI
is a member of the Great American Insurance Group, whose roots go back
to 1872 with the founding of its flagship company, Great American
Insurance Company. The members of Great American Insurance Group are
subsidiaries of American Financial Group, Inc. AFGs common stock is
listed and traded on the New York Stock Exchange and Nasdaq Global
Select Market under the symbol “AFG. Learn more at www.GAFRI.com.






