Prosperity-Time for another Look

[rousemark]

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.

And, they refuse to let the Salvation Army set up outside their stores.

 

[WinoBlues]

I agree but I’d NEVER do a 3 option close + two different company options.

Why, if they did not know the companies? It is just numbers

 

[WinoBlues]

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.

Dude! I really like you and have rarely if ever disagreed with you on this forum. I believe that you are a knowledgeable agent.

But I call BullShit.

Compare a Fraternal of New York Life, Prudential, Metropolitan, etc etc etc brought together by the Department of Insurance of the State of California against KSKJ.

That sounds like some FE guru slamming ULs then touting RNA.

Disclaimer - I have a RNA case in pending.

 

[Newby]

Dude! I really like you and have rarely if ever disagreed with you on this forum. I believe that you are a knowledgeable agent.

But I call BullShit.

Compare a Fraternal of New York Life, Prudential, Metropolitan, etc etc etc brought together by the Department of Insurance of the State of California against KSKJ.

That sounds like some FE guru slamming ULs then touting RNA.

Disclaimer - I have a RNA case in pending.

My point is that the State Guarantee is an industry design that was created to PREVENT and actual FDIC-type requirement to be put on the industry by the government. IN my experience customers are NOT going to be happy when their insurance company fails. And the government PROMOTES that banks disclose FDIC insurance because it is REAL government backed insurance.

The main case that I have been involved in (fortunately never as the agent that sold the policies) that involved an insurance company that failed due to huge out of control embezzelment by the owners was the Lincoln Memorial Life case which failed out huge. Consumers were left hanging for several years through it all. Many walked away from policies because there was no definite answers coming their way of how it would be resolved and when. Then when the "state guarantee funds" decided what they would do the policies were covered at greatly reduced amounts and many people were angry that they had kept paying premiums through the years of uncertainty. Others walked away and quit paying the premiums because the death benefit that the state guarantee funds were going to ultimately pay was half of what the guaranteed death benefit was when the company went into receivership. In most states though the funeral homes that sold the policy had to come up with the difference between what the policy death benefit had been and the amount that the State Guarantee fund actually paid. Go ask the funeral homes that had to take that settlement what they think of "State Guarantee Funds" and you won't get a real positive answer. In fact several funeral homes went out of business that had sold those policies as their main pre-need funeral carrier once they found out that the state guarantee funds were not going to pay the full face amounts of the policies.

Insurance companies insuring their own failures is NOT the same as the government insuring it. And that is why the only guarantees the AGENTS are allowed to give is the guarantee of the company they are selling to pay the claim up to the limit of their ability to pay the claim.

 

[NSRH]

Dude! I really like you and have rarely if ever disagreed with you on this forum. I believe that you are a knowledgeable agent.

But I call BullShit.

Compare a Fraternal of New York Life, Prudential, Metropolitan, etc etc etc brought together by the Department of Insurance of the State of California against KSKJ.

That sounds like some FE guru slamming ULs then touting RNA.

Disclaimer - I have a RNA case in pending.

Just remember the person you are debating sells for a small fraternal that uses the word "policy" to describe their "certificate" in their actually certificate of insurance.

 

[Tahoe Ray]

Then when the "state guarantee funds" decided what they would do the policies were covered at greatly reduced amounts and many people were angry that they had kept paying premiums through the years of uncertainty

Each state has limits as to what they'll cover. It's all public information.

If you're really concerned about your carrier going under then just buy policies from multiple carriers (or don't buy a policy from that carrier).

 

[WinoBlues]

Just remember the person you are debating sells for a small fraternal that uses the word "policy" to describe their "certificate" in their actually certificate of insurance.

I understand. I also believe that he is a smart agent. I have picked up a lot of good information from him. I try to separate the marketer side and the agent side with all you guys.

 

[WinoBlues]

I do not remember ever replacing a fraternal using the Maintenance of reserves clause.

 

[PA Bill]

Companies go under and reduce value, fraternals go under and reassess. You guys sound like the FBI sleazebags.
"It's not spying, it's covert surveillance". Of course!

 

[goillini52]

Where's the photos of you in your Pajamas that Ben's talking bout?

Hanging on the walls of Ben's Boom Boom Room.