How to cancel annuity signed without authorization in SC?

Question

My mom is planning her retirement, and recently, we worked with an agent to move her federal savings into a SPIA annuity account. However, we discovered that the agent electronically signed my mom's name on the annuity application without her knowledge or authorization. He claims that to cancel the annuity and retrieve her money during the "free look" period, she must sign a letter for the cancellation. Given that she did not authorize or sign the application in the first place, how can she proceed with this cancellation? We need her full amount returned immediately for other investments. The "free look" period ends in a week. Additionally, what regulatory authorities should we report this unauthorized action to?

D. Nathan Davis · Answer

I am questioning if your mother did not authorize an electronic signing.  I am guessing that this is the situation, and I also believe that she signed something to move money into the account.  Electronic signatures are binding in most situations. 
 
How was the money moved to the annuity if your mother did not sign for the transfer?  There had to be signatures to take out the money.   
 
If you are correct, the agent violated the law by forging your mother's signature, and you can file a complaint with the licensing agency that licensed the agent.  If your mother suffers loss, she has a cause of action against the agent and the company he worked for.

James L. Arrasmith · Answer

What happened to your mom is deeply concerning, and you’re right to act quickly. If her name was signed without her consent, that’s a serious breach of trust and possibly a criminal offense. Even though the agent is requesting a signed cancellation letter, the focus now should be on making sure the cancellation happens before the “free look” period ends, so your mom can recover the full amount she invested. 
 
The first step is for your mom to submit a written letter—signed by her—to the annuity provider clearly stating she did not authorize the application and is exercising her right to cancel under the free look period. Include a request for immediate return of all funds. Even though it's frustrating, getting that letter submitted quickly is the best way to ensure the money isn’t locked into the annuity. Keep a copy of everything and send it via certified mail or with email confirmation if available. 
 
Next, report the agent’s actions to the **South Carolina Department of Insurance**, as well as the **insurance company’s compliance department**. You can also file a complaint with **FINRA** or the **National Association of Insurance Commissioners (NAIC)** if the agent is licensed. What the agent did is not just unethical—it may be illegal. You and your mom are doing the right thing by stepping in and demanding accountability.

Q: How to cancel annuity signed without authorization in SC?