Iowa Insurance Commissioner Revokes License and Orders Restitution for Preying on Retired Postal Workers

DES MOINES, IOWA — The Iowa Insurance Division entered into a Consent Order with Starrla Ramae Norman, a former nonresident insurance producer from Dexter, Missouri. The enforcement action strips Norman of her ability to conduct business in the State of Iowa following an investigation that revealed a pattern of predatory financial practices targeting retired federal employees.

Effective immediately, Norman’s Iowa nonresident insurance producer license has been revoked, she is prohibited from engaging in the business of insurance in Iowa, and she is permanently barred from any participation or employment in the Iowa securities industry. Additionally, Norman has been ordered to pay $44,954.00 in restitution to an affected Iowa consumer and $10,000.00 to cover the costs of the state's investigation and prosecution.

According to the Division’s findings, Norman leveraged professional gatherings of postal workers to convince unsuspecting retirees to liquidate their federal Thrift Savings Plans (TSPs)—which contained securities—to fund high-commission fixed indexed annuities.

The state's investigation detailed severe violations involving three Iowa consumers, including:

• Suitability Violations and Misrepresentations: Norman routinely falsified customer financial information on annuity applications, significantly inflating clients' monthly incomes, net worth, and liquid assets to secure approvals.  Norman did not exercise reasonable diligence, care, and skill nor did she have a reasonable basis to believe the annuities she recommended were suitable and in the best interest of her clients.
• Undisclosed Annuity "Twisting": Norman executed a scheme to churn existing annuity contracts, convincing clients to surrender relatively new annuities to buy almost identical new annuities. She intentionally hid the replacement status on applications, routing checks directly to consumers to evade oversight. This caused victims to collectively incur tens of thousands of dollars in surrender fees and market adjustments.
• Evasion and Deception: Norman utilized digital signature systems to apply consumer signatures remotely from an IP address in Missouri, pretending to be "on-site" with clients in Iowa. 
• Unlicensed Investment Advice: Norman illegally advised at least one consumer on the liquidation of specific securities within their retirement accounts despite never holding an active registration as an investment adviser or securities agent in Iowa.

Norman was also the subject of an investigation conducted by the Iowa Insurance Fraud Bureau.  In addition to the administrative sanctions imposed by the Iowa Insurance Division, Norman pled guilty to Insurance Fraud - Application Submission, a Class "D" Felony. Norman formally admitted that between August and October of 2023, she knowingly submitted an insurance application to Allianz Life Insurance Company containing false material information on behalf of an Iowa consumer. Sentencing on the matter is scheduled for September 4th, 2026.

"Protecting Iowa retirees from predatory schemes that jeopardize their hard-earned retirement savings remains a primary focus of this office," said Commissioner Doug Ommen. "If you or a loved one have been pressured to liquidate your retirement accounts, or if you suspect that your financial agent has misled you about surrender fees, signatures, or replacements, please contact the Iowa Insurance Division immediately. Your call can help us stop these scams, recover lost funds, and protect other Iowans from falling victim to similar financial exploitation." 

Iowa consumers who suspect they have been subjected to unfair trade or misleading insurance practices are encouraged to contact the Iowa Insurance Division’s Fraud Bureau at 515-654-6556.