State investigates purported charitable organization

According to a news release from the Missouri Department of Insurance, Financial Institutions & Professional Registration, at least three states have issued cease-and-desist orders against NFOA for acting as an insurance company.

NFOA is allegedly an unauthorized entity marketing an annuity product to consumers by convincing them to replace their existing annuities or cash-value life insurance policies with a “tax-deductible installment plan.” The company tells consumers that this plan will produce guaranteed income each year while lowering taxable income by up to 50 percent, according to its Web site, www.nationalfoundationofamerica.org.

“Our department is investigating the issues surrounding the business practices of NFOA, and we will take appropriate actions to ensure the protection of Missouri consumers,” said DIFP Director Doug Ommen in a news release. “All consumers need to be aware of the potential economic dangers of dealing with this entity.”

Other states’ investigations have revealed that potential victims may be induced to lapse, forfeit, surrender, terminate, borrow on or convert an existing insurance policy or annuity contract value for a replacement policy or contract from NFOA.

Typically, legitimate donor or charitable gift annuities/policies transfer or designate some financial benefit to a designated charity, organization or institution.

Missourians should only purchase insurance products from a registered insurance or financial company and a licensed insurance agent or broker. Information about the license status of a company or agent is available at www.insurance.mo.gov or the consumer insurance hotline, (800) 726-7390.