Lawsuits accuse Ohio National of breaking commission agreements
November 22, 2018 by Tobias Salinger
An independent broker-dealer and an LPL Financial advisor have accused a retreating variable annuity issuer of breach of contract in two lawsuits filed in the same week.
The filings, which both seek class-action status, come after Cincinnati-based insurance firm and IBD Ohio National Financial Services decided to stop writing new VA contracts and cut off commission trails on Dec. 12 for products with a guaranteed minimum income benefit rider. LPL has slammed Ohio National’s move on the trails.
Advisor Lance Browning followed LPL’s rhetoric with action, alleging that he’s entitled to $89,000 in trails for next year alone under LPL’s selling agreement with the issuer.
Meanwhile, Veritas Independent Partners, a much smaller IBD, also accused Ohio National of breaching its selling agreements over the trails.
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