Legal Question in Criminal Law in California
Is this legal?
I am an independent life insurance agent and I am licensed with a number of insurance companies. With one of these companies, I purchased a flexible premium deferred annuity on myself a number of years ago. The surrender charge on this auity has expired and I can now freely make additions and withdrawals with no withdrawal charges...much like a money market fund.
As an agent, I receive a commission on every deposit into this annuity.
What I want to know is would I be breaking any laws if I maximize my commissions by frequently depositing and withdrawing money from this annuity?
1 Answer from Attorneys
Re: Is this legal?
I believe that this process is referred to as churning and is illegal. However, you should ask the question of an attorney that is familiar with securities law.
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