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Also, I have seen a few "weird" whole life policies from fraternals. It may be interest sensitive, and the extra premium may be necessary to meet the non-guaranteed values while the guaranteed values are still guaranteed.
Catholic Life Insurance
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Also, I have seen a few "weird" whole life policies from fraternals. It may be interest sensitive, and the extra premium may be necessary to meet the non-guaranteed values while the guaranteed values are still guaranteed.
Doesn't matter if you call it a premium increase or an assessment, the result is the same.. The insured pays more or loses the coverage.
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Of an assessment being levied?
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This dates to 1927 but you said ever.
JSTOR: Annals of the American Academy of Political and Social Science, Vol. 130 (Mar., 1927), pp. 97-102
I remember a stir about fraternal assessments back around the time I started but it has been so long I don't remember the details.
Even if it had never happened in the past, doesn't mean it can't happen now. Prior to 1991 there had never been a company of the nature of Mutual Benefit fail. They were the most reputable of the Mutuals, founded in 1845 and known as the Tiffany of Insurance.
I know you are aware of warnings from many state DOIs such as this one.
Fraternal Benefit Societies - Producer Services : Bureau of Insurance
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That article seems to be wrong. It saysd that fraternals are not rated by AM Best or other rating organizations. I know for a fact that RNA is rated by AM Best.
Seems to be scare tactics aimed at the fraternals that are kicking the asses of the other insurance companies.
This discussion has changed from ULs that some thought were whole life into an an argument about fraternals.
There are ULs out there sold by fraternals that can change the rates and can implode just as an UL policy sold by a mutual or staock company. These were sold as "permanent" and people thought they bought whole life.
Whole life plan are guaranteed to not increase in premium and to not decrease in benefits regardless if sold by a fraternal or a mutual or stock company.
No argument.. facts are Fraternals are not covered by State Guaranty Funds and they can levy assessments on every product ( or for reasons not related ot product for that matter)..If they ever will or not issue an assessment on their WL certificate owners is only a matter for speculation as none have a crystal ball. The power for issuing assessments varies from one fraternal to another. It is governed by their bylaws. For any agent that is selling fraternal benefits, I would suggest they obtain and study the bylaws. Fraternals offer attractive benefits to their members not offered by life companies. Reserve requirements are different for life companies and Fraternals.
The problem of some agents misleading insureds as to what a product does is not unique to either life companies or fraternal and has nothing to do with rate increases or assessments.
I certainly have nothing against agents that sell fraternal benefits. I have a very good friend that retired recently from Woodman of the World. He was second generation as his father was a state manager with them. Nobody had drank the kool aid more than he but there always was none that was more honest, forthright and involved with doing the very best he could do for his clients.
Just logged into my best account.. RNA is A- affirmed 12.9.2011
Gotta go do the radio program.. BBL
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Fraternal society puts $12 million lien on policies - Pittsburgh Tribune-Review
Stay away from small fraternals...
Stay away from small fraternals...
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Yes, I remeber the stir that article caused in 1927 when I was still fairly new in this business.
