Bank of America Settles With Mass. On VA Sales To Elderly

The agreement "is a major step toward correcting the abuse of pressuring elderly people into buying these variable annuities without telling them the restrictions that go with them," Massachusetts Secretary of the Commonwealth William Galvin says in a statement.

Bank of America has agreed to provide "an expedited review" of VA sales to customers aged 75 to 77 at the time of purchase to assure the product was suitable to them, according to the agreement. The company also has agreed to review its VA sales practices, including procedures to screen prospective VA customers for suitability.

The bank says it will offer the same agreement to eligible customers nationwide. And it says it will reimburse any surrender fees paid by eligible customers who previously liquidated VA contracts bought in 2003 or 2004.

The offer will be extended for 6 months beginning in August, according to Bank of America's brokerage unit.

"This move is consistent with Bank of America's continuing commitment to provide its customers with products and services that help meet their financial needs and objectives," the company says.