Class Action Lawsuit Filed Against Ohio National Life for Refusing to Pay Trailing Commissions to Advisors
Ohio National Life Insurance Company issued variable annuities with a guaranteed minimum income benefit (GMIB) to thousands of investors, through a network of broker-dealers and securities representatives. As part of those sales, Ohio National promised in writing that it would pay commissions, known as “trailing commissions,” to the broker-dealers and the securities representatives for the life of the GMIB variable annuities.
On September 28, 2018, Ohio National announced it was unilaterally terminating those trailing commission payments. This action is a blatant cash-grab by Ohio National, trying to reap all of the benefits of the sales of these products while pocketing the commissions it promised. Even worse, Ohio National’s decision to stop paying trailing commissions for which it is already obligated will not even reduce the expenses for investors. The costs of the annuities will not go down one penny. Rather, instead of paying trailing commissions to the broker-dealers and their securities representatives, Ohio National has decided to simply pocket that money itself instead.
Meyer Wilson and its co-counsel have filed a class action lawsuit against Ohio National in federal court in Ohio on behalf of securities representatives who sold these annuities, seeking to hold Ohio National accountable.
If you or a colleague are owed trailing commissions on Ohio National GMIB Variable Annuities, Contact Us Today by calling 888-592-8455 or by filling out an online Contact Form for a consultation. The impact on Ohio National’s actions on advisors, and ultimately the customers who own these products, is serious, and we are committed to fighting to right this wrong.