Allianz Stalling on Transfer of Funds for Replacement

[Columbo Knows all]

I have spent hours searching the internet and State Corporation Commission to find out what to do when an insurer is using unethical and possibly illegal methods to conserve business. My clients submitted all necessary paperwork to Allianz and their new insurer for a replacement of their annuities with Allianz. We are now way past Allianz's stated policy of a standard "10 conservation period" following receipt of all necessary transfer paperwork. I have been repeatedly told by Allianz that the checks are in the mail. The client agreed to pay the $15 overnight fee for expedited processing of the transfers. Today, I decided to request tracking numbers for the USPS overnight shipments and the Allianz rep put me on hold for five minutes- he returns to the call and tells me that they would like to speak with the clients to make sure they understand everything. WTF? The clients signed the forms and has received the mail notices and many phone attempts to conserve business, but they have repeatedly told Allianz that they are confident in their decision and want the funds released. I am at a complete loss. Any suggestions would be very helpful. If anyone knows of legal regulations about this matter, I would love to be able to site those in my next argument with Allianz. Thanks!

 

[HarryRenard]

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Allianz doesn't stick out in my head as being one of the tougher conservation companies, and I've replaced 2 in the past 60days.
Are you the AOR as well as the replacing agent, if so that might be treated differently.

Most of Allianz's older contracts weren't walk a way products so I'd be surprised if they were putting so much effort in to saving older business cause typically they loose their bonuses.

 

[scagnt83]

Is this a 1035? Or are they just requesting a check to be sent so that you can utilize the 60 day window?

I believe it varies by state, but there is usually a 60 or 90 day period that the transferring company has to transfer funds.

Even if company policy says that they only use 10 days for conservation, they can still legally take the full 60 (or 90, or whatever the law states in that state) to transfer.

How long has it been so far?

A few things might help with this:
The client can just request for them to liquidate the policy and send him a check. (I have found that this is often more expedient than a 1035)

You can draft a letter on the clients behalf stating that "He is aware of any an all consequences related to the surrender and transfer of his annuity contract; and that they wish for the company to waive any and all conservation efforts and to immediately transfer the funds as requested, and that any further stalling tactics will be met with complaints to the DOI in both your home state and in Alliances, and possibly appropriate legal recourse if Alliances actions adversely affect your clients financial situation."
(I know that the last part about their actions affecting his financial situation is probably a stretch and probably wouldnt happen, but they dont know that, and it will get their attention real quick.)
Send the letter certified mail so that they cant claim that they never received it.

I know that it sucks to ask clients to call to help get things done, but in this situation it will probably be the most expedient thing to do.
Call the 1035 department along with your client and have him ask why its taking so long. If they have any questions or comments, he can answer them, and you will be there to help.
If the 1035 department gives the client the run around when you call; ask to speak to the compliance department. Have your client get really mad at the people in the compliance department and just raise hell about them stalling and about how he will take legal action against them.
But often times just telling compliance that "the client has already requested the funds to be transfered multiple times, and that he has stated multiple times that he is aware of all repercussions", will get the situation straightened out pretty quick.


I knew an agent who called the 1035 department of NWM 5 times a day for a week before they finally transfered the funds! He basically talked to everyone there at least twice, and raised hell every time he called. Im not necessarily recommending to do this yet, but it did work for him finally... lol

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There is no shortage of problems with Alliance. Piss poor company imo

 

[VolAgent]

I knew an agent who called the 1035 department of NWM 5 times a day for a week before they finally transfered the funds! He basically talked to everyone there at least twice, and raised hell every time he called. Im not necessarily recommending to do this yet, but it did work for him finally... lol

Of course NWM stalled, didn't the agent get the memo, NWM is the greatest insurance company on earth. Must be something wrong with the client if he wants to transfer money.

 

[BNTRS]

Typical BS, my favorite is the Massmutual paperwork game, they held up a $4,000 transfer in an IRA with that crap. Luckily I had replaced them enough times to know it was coming. The replacing company gave me a prediction on when they expected to get the funds, we beat that date by over a month.

I like replacing CD's at bank, always seems to go fast.

 

[spartuna]

I recently replaced an Allianz with LSW, paperwork was submitted (1035), was paid and issued within 3 weeks.

 

[ScottLFB]

Is it possible that Allianz "loss prevention" got a hold of the client and was talking to them? Sometimes that slows things down when they think the client is on the fence and may decide to cancel the transfer and keep the policy in force. When that happens, then the carriers take their sweet time and can milk out that 60 day window. Don't get me wrong, I'm not ragging on Allianz because every company has their own techniques from "saving" a percentage of their policies from leaving the company.

 

[scagnt83]

Is it possible that Allianz "loss prevention" got a hold of the client and was talking to them? Sometimes that slows things down when they think the client is on the fence and may decide to cancel the transfer and keep the policy in force. When that happens, then the carriers take their sweet time and can milk out that 60 day window. Don't get me wrong, I'm not ragging on Allianz because every company has their own techniques from "saving" a percentage of their policies from leaving the company.

Its called the "conservation effort", and yes, it sounds like that is exactly what is happening.

The 1035 team or department are the ones who handle this; some companies judge their performance more on conservation of policies rather than actually doing what the client wants...

 

[dsmif24]

Never had an issue 1035 exchanging it either. Pretty much every company has a conservation department though. American Equity actually sends out a letter and the client has to fill it out before they release funds. That is a pain

 

[insuranceexec]

The original AOR could have requested an extension.