The American Life Insurance Company of New York and Annuity.com have pulled their Annuity.com Direct Annuity off the virtual shelf. Last November, the Securities and Exchange Commission approved the new VA contract 2-to-1 with a dissenting vote from Commissioner Isaac Hunt. The VA was the first to offer a completely paperless VA, accepting e-signatures and not issuing a printed prospectus, even upon demand.
The National Association of Securities Dealers today initiated an investigation scrutinizing the product, prompting the firms to remove it from the Annuity.com Web site. Both the NASD and SEC have already reviewed the product and recommended changes, said Mark Legan, president of Annuity.com.