No.. Just the facts, Ma'am.. Just the facts. Before tonight, I wasn't even aware of what happened to a fraternal certificate if they don't get picked up by another fraternal when one goes bankrupt.. Insurance company policyholders aren't put into that position for amounts less than the guaranty maximums. I also realize that the guaranty funds do not actually have any funds but the remaining companies are assessed to cover the obligations of the failed company. But who is in a better position to pay an assessment. an insurance company of a senior trying to scrape by on little income?
Prosperity-Time for another Look
- Thread starter Agentguy5
- Start date
- 6,995
Says who? What’s the penalty if you do? Who enforces something like that?
This is the final disposition of ACA...
Dropbox - Royal Arcunum Letter ACA2.pdf - Simplify your life
Notice: The 25% assessment on your life insurance policy or annuity has become permanent, and Royal Arcanum has assumed your policy at this 25% discount. This means that claims payments on life insurance policies and policy and annuity surrenders will be reduced by 25%.
A person that had $10000 FE now has $7500.. Would you call that a coverage decrease or a premium increase since they are paying more per thousand of coverage?
Dropbox - Royal Arcunum Letter ACA2.pdf - Simplify your life
Notice: The 25% assessment on your life insurance policy or annuity has become permanent, and Royal Arcanum has assumed your policy at this 25% discount. This means that claims payments on life insurance policies and policy and annuity surrenders will be reduced by 25%.
A person that had $10000 FE now has $7500.. Would you call that a coverage decrease or a premium increase since they are paying more per thousand of coverage?
- 29,527
They went downhill after they started insuring Mongolians.
Oh, and as far as size, they were not huge but neither were they tiny.. They were a billion dollar company.
Chairman: Jacques Desbiens
AM Best Rating: Not Rated
Total Assets: $1.717 billion
Net Income: $16.4 million
Net Premiums Written: $89.3 million
FSR Outlook: n/a
Best’s Issuer Credit Rating: Not Rated
Tennessee regulations forbid it but then you are not to use any thing as an "inducement" to buy insurance.. The only way for it to be enforced would be for a citizen to complain to the insurance commission. I don't know about anyone else but I have never heard of an agent being sanctioned for telling someone about the Guaranty Fund.
Every state's DOI.
- 16,923
You can't indicate that any policy is guaranteed beyond the claims paying ability of that insurance company. That is the only promise you can make to your customer.
State guarantee coverage is a good thing. Much better than what was in place before which was nothing. But it's NOT guaranteed by the state. It's guaranteed by a fraternal organization of insurance companies. They promise to band together and bail out consumers who are damaged by failed insurance companies. But NO state will pay any money into them and no state guarantees them. It is NOTHING like FDIC insurance.
The state regulators wanted to impose an FDIC-type system on the insurance industry but the insurance industry fought against it. It would add too much cost to the policies if there were an actual State Guaranteed or Federal Guaranteed re-insurance system. SO the insurance companies created the "State Guarantee Funds" programs as a reaction to this in order to keep the government out of the insurance biz and from adding a huge financial burden to the industry. So far it has kept the government from jumping in.
That is why banks can advertise and promote the FDIC coverage because it's real government backed guarentees. The insurance industry doesn't have anything like that. It has an industry created thing that is probably good enough because insurance companies are heavily regulated anyway and as long as too many don't fail it can absorb them. But it has limitations and loopholes and fine print. And that's why you are not to give everyone the impression that they can 100% count on it.
- 25,063
Last week a client called and asked me to write her daughter. I showed her FEXquotes. She chose United Heritage. We paid a claim on her dad with them. This policy is something like number 12 United Heritage. Not the cheapest, but on claims paying....
They did not buy the cheapest but they got the best............. Agent
- 5,804
Sonny, I quit shopping at Target when they started to allowed grown-up facial hair critters with male plumbing into my grand daughter's bathroom.
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