Colorado Bankers (CB Life)...

[FETalk]

Have you guys (and gals) heard about what's going on with Colorado Bankers Life (CB Life)?

I've spoken to two people (one a client) that informed me that they're not able to access, or do any transactions with their policies (surrender, policy loans etc.).

I've been told that whenever they call they're being told that all of their policy information is being handled by an organization in North Carolina - I believe it's Noble Consulting Services, Inc. (“Noble”).

When you go to CB Life's website (www.cblife.com) you get this banner message: "Notice - Colorado Bankers Life Insurance Company in Rehabilitation".

This also appears to be the case for "Bankers Life", "Southland National Insurance Corporation", and "Southland National Reinsurance Corporation, collectively known as the "companies".

You can find out more information in the FAQ pdf document at the link below:

https://www.ncdoi.com/FAR/Documents/RegulatoryActions/Frequently Asked Questions (GBIG).pdf

 

[Todd King]

Yeah, they've been in "Rehabilitation" for about a year or so now.

What's funny is that we were negotiating with them and helping them develop the new product and get them back on the map...then out of the blue....."um, yeah, we're shutting that down".

 

[nymets365]

Any updates on CBLife other than what is on their website? I am researching for an elderly neighbor. she is up to date on the hardship rules etc., and fortunately does not need the money right now, but she is elderly and wants to know anything about timelines so she can plan accordingly. Any help would be greatly appreciated!

 

[Newby]

The guy who purchased Colorado Bankers and several other insurance companies was being investigated for a lot of fraudulent business activities several years ago. I think he even had some illegal political dealings.
It will be a mess for quite some time.

 

[nymets365]

Thanks for the insight. for the woman's sake, I hope this runs its course quicker than some of the other rehabs I have read about such as Executive Life. People said it took 15 years for them to see any of their original investment!

 

[Allen Trent]

Thanks for the insight. for the woman's sake, I hope this runs its course quicker than some of the other rehabs I have read about such as Executive Life. People said it took 15 years for them to see any of their original investment!

Last I saw about 10 months ago was this was just getting started as the NC insurance commissioner was trying to get receivership of hundreds of other companies (not connected to insurer) that the owner Lindberg owned. That gives me the impression, the insurance commissioner needs the assets of those other companies owned by Lindberg to shore up the assets of Colorado Bankers & Southland to even begin to formulate a plan for consumers.

 

[nymets365]

geez, what were these guys invested in? Amazing how "professional: money managers can be so wrong.

 

[Allen Trent]

geez, what were these guys invested in? Amazing how "professional: money managers can be so wrong.

not sure the investments of the carrier were the problem. sounds like more of the individual who owned the carrier had lots of other issues including fraud & accusations he took $2B or more from the insurance companies he owned & diverted it to his other companies he owned.

Likely another reason they were paying higher interest rates on their annuities to lure in more money. More amazing is how rating agencies cant see some of these fraudulent activities. instead, we see the ratings drop after the news of the crime/fraud

 

[nymets365]

Ah, sounds right. Thanks so much for the insight.

 

[PA Bill]

The greedy become needy. This guy is looking at federal time and forfeiture of pretty much every thing he owns. Could easily get 10-15 and there ain't no parole in the federal system!