Allianz Investment Management Llc

Allegations: THIS DRP DOES NOT PERTAIN TO REGISTRANT BUT RELATES TO AN ADOPTING ORDER ISSUED BY A STATE TO AN INSURANCE COMPANY AFFILIATE OF REGISTRANT ("CONTROL AFFILIATE"). REGISTRANT IS PART OF A LARGE HOLDING COMPANY WITH SEVERAL AFFILIATES IN THE INSURANCE AND SECURITIES BUSINESS. CONTROL AFFILIATE IS NOT REGISTERED WITH ANY JURISDICTION AS AN IA OR BD. IN THIS ORDER, THE COMMISSIONER OF INSURANCE OF THE STATE OF NEVADA ADOPTED AN EXAMINATION REPORT IN WHICH THE EXAMINERS ALLEGED THAT THE CONTROL AFFILIATE: (1) FAILED TO MAINTAIN COMPLIANCE WITH NAC 686A.526 IN ITS HANDLING OF REPLACEMENT SALES; (2) FAILED TO RESPOND TIMELY TO THE NEVADA DIVISION OF INSURANCE IN ALL THREE OF THE COMPLAINTS FILED WITH THE NVDOI. THE COMPANY FAILED TO MAINTAIN COMPLIANCE WITH NAC 686A.690; (3) FAILED TO PROVIDE AN ACCURATE LISTING OF CONSUMER COMPLAINTS INVOLVING NEVADA INSUREDS; (4) FAILED TO MAKE REASONABLE INQUIRY TO ENSURE THAT THIRD PARTIES ARE COMPLYING WITH CONTRACTUAL OBLIGATIONS RELATING TO ANNUITY SALES TO NEVADA CUSTOMERS UNDER NAC 688A.455-1 AND 460-4. Status: Final Sanction Detail: SEE ABOVE Summary: THE BDS THAT MARKET THE CONTROL AFFILIATE'S PRODUCTS IN NEVADA WILL BE INITIALLY REVIEWED TO DETERMINE THE EFFECTIVENESS OF THEIR SUITABLITIY FUNTION AND AN APPROACH WILL BE DEVELOPED THAT IS TAILORED TO THEIR PRACTICES. SPECIFICALLY, THE CONTROL AFFILIATE WILL PUT THEM IN FOUR TIERS, EACH OF WHICH WILL BE SUBJECT TO INCREASING LEVELS OF OVERSIGHT. THE CONTROL AFFILIATE WILL ALSO CONDUCT A PERIODIC REVIEW OF THESE BDS EVERY THREE YEARS TO CONFIRM THE EFFECTIVENESS OF THEIR SUITABILITY FUNCTION.

Allegations: AN ADMINISTRATIVE PENALTY BASED ON A MARYLAND EXAM. Status: Final Sanction Detail: VIOLATIONS WERE NOTED IN EXAM REPORTMCLH-9-016-E WITH 4 FINDINGS. ALLIANZ HAS TAKEN MEASURES TO ENSURE THAT SUCH VIOLATIONS WILL NOT OCCUR IN THE FUTURE. Summary: #1-THE COMPANY WILL CONTINUE TO REINFORCE THAT PRODUCERS ARE REQUIRED TO HAVE ALL ASPECTS OF THE SALES PROCESS OCCUR IN THE SAME STATE. #2-THE COMPANY UPDATED THE MARYLAND GUARANTY FUND NOTICE TO REFLECT THE CORRECT ADDRESS. #3-THE COMPANY WILL ENSURE THE CLIENT AND PRODUCER ARE SIGNING THE REPLACEMENT NOTICE ON THE SAME DATE. #4-THE COMPANY WILL REINFORCE THAT ALL POLICIES AND PROCEDURES BY MAILING THE REPLACEMENT NOTICE WITHIN 5 BUSINESS DAYS.

Allegations: AFFILIATE AGREED TO PAY A TOTAL MONETARY PENALTY OF $300,000 WITH $150,000 SUSPENDED AND TO UNDERTAKE CERTAIN REMEDIAL ACTIONS IN REGARD TO THE SALE OF ITS ANNUITIES TO WASHINGTON RESIDENTS. Status: Final Sanction Detail: AS A RESULT OF A REGULATORY REVIEW CONDUCTED BY THE INSURANCE COMMISSIONER OF THE STATE OF WASHINGTON, AFFILIATE AGREED TO PAY A TOTAL MONETARY PENALTY OF $300,000 WITH $150,000 SUSPENDED AND TO UNDERTAKE CERTAIN REMEDIAL ACTIONS IN REGARD TO THE SALE OF ITS ANNUITIES TO WASHINGTON RESIDENTS Summary: AFFILIATE AGREED TO UNDERTAKE CERTAIN REMEDIAL ACTIONS IN REGARD TO THE SALE OF ITS ANNUITIES TO WASHINGTON RESIDENTS.

Allegations: DUTIES OF AGENTS AND BROKERS; DUTIES OF INSURERS THAT USE AGENTS AND BROKERS. Status: Final Sanction Detail: VIOLATIONS WERE NOTED IN THE FINAL EXAM REPORT DATED JULY 30, 2018 WITH 3 FINDINGS. ALLIANZ HAS TAKEN MEASURES TO ENSURE THAT SUCH VIOLATIONS WILL NOT OCCUR IN THE FUTURE. Summary: 1) RESPONDENT ACCEPTS THE FINAL EXAMINATION REPORT. 2) THE RESPONDENT SHALL PAY THE DEPARTMENTS AN ADMINISTRATIVE PENALTY FOR NOTICE VIOLATIONS TO THE STATE OF DELAWARE. 3) THE STIPULATION AND CONSENT ORDER CONTAINS ALL OF THE TERMS AND CONDITIONS AGREED TO BY THE PARTIES AND CONSTITUTES THE FINAL AGREEMTNS BETWEEN THE REPONDENT AND THE DEPARTMENT.

Allegations: THIS DRP DOES NOT PERTAIN TO REGISTRANT BUT RELATES TO AN ORDER ISSUED BY A STATE INSURANCE DEPARTMENT TO AN INSURANCE COMPANY AFFILIATE OF REGISTRANT ("CONTROL AFFILIATE"). REGISTRANT IS PART OF A LARGE HOLDING COMPANY WITH SEVERAL AFFILIATES IN THE INSURANCE AND SECURITIES BUSINESS. THE CONTROL AFFILIATE IS NOT REGISTERED WITH ANY JURISDICTION AS AN IA OR BD. THE INSURANCE COMMISSIONER OF THE STATE OF CONNECTICUT ALLEGED THAT THE CONTROL AFFILIATE DID NOT FOLLOW CERTAIN ESTABLISHED PRACTICES AND PROCEDURES REGARDING THE APPOINTMENT OF AGENTS TO SELL LIFE INSURANCE PRODUCTS. Status: Final Sanction Detail: AFFILIATE AGREED PAY THE STATE OF CONNECTICUT A FINE OF $4,500, AND AGREED TO UNDERTAKE A REVIEW OF ITS PRACTICES AND PROCEDURES TO ENHANCE COMPLIANCE WITH CONNECTICUT STATUTES IN THE AREAS OF CONCERN AND TO PROVIDE THE INSURANCE COMMISSIONER WITH A SUMMARY OF ACTIONS TAKEN TO ENHANCE SUCH COMPLIANCE. Summary: ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA AGREED TO A CONSENT ORDER, PAID THE STATE OF CONNECTICUT A FINE OF $4,500, AND AGREED TO UNDERTAKE A REVIEW OF ITS PRACTICES AND PROCEDURES TO ENHANCE COMPLIANCE WITH CONNECTICUT STATUTES IN THE AREAS OF CONCERN AND TO PROVIDE THE INSURANCE COMMISSIONER WITH A SUMMARY OF ACTIONS TAKEN TO ENHANCE SUCH COMPLIANCE.

Allegations: FAILURE TO TIMELY FILE ITS LONG-TERM CARE MARKET CONDUCT ANNUAL STATEMENT (LTC MCAS). Status: Final Sanction Detail: AFFILIATE AGREED TO PAY A TOTAL MONETARY PENALTY OF $1,000. Summary: AFFILIATE CONSENTED TO PAYING A MONETARY PENALTY OF $1,000 RELATED TO THE FILING OF A MARKET CONDUCT ANNUAL STATEMENT OF LONG-TERM CARE INSURANCE PRODUCTS IN ARKANSAS.