Scroll down for a discussion on Shenandoah Life Sales Suspended within the Senior Insurance Forum.
Originally Posted by Russ
Assurant Employee Benefits to Reinsure Shenandoah Life Insurance Company's Group Benefits Business
This reinsurance is only for the group policies, which ...
This reinsurance is only for the group policies, which have pretty much been replaced to the tune of maybe 70-75%.
They regulators are still looking for the possibilities on the individual block(s), I have heard of around a Sept 15, deadline for the other invited companies to submit their proposals. Seems the individual block(s) are still somewhat in limbo. Under normal financial circumstances, this problem would have probably already been put to bed and everybody hopefully half-way satisfied. This AIN'T normal circumstances.
There is a fairly strong rumor the Medicare Supplement block of business may have either been acquired, or possibly about to be.
------------------------------------
Joe Moore
National Senior Benefits
Asurco Insurance Marketing www.finalexpenseagents.comwww.shenagents.com
PO Box 1954, Morristown, TN 37816
1-800-226-1004, 1-423-581-1004
This reinsurance is only for the group policies, which have pretty much been replaced to the tune of maybe 70-75%.
They regulators are still looking for the possibilities on the individual block(s), I have heard of around a Sept 15, deadline for the other invited companies to submit their proposals. Seems the individual block(s) are still somewhat in limbo. Under normal financial circumstances, this problem would have probably already been put to bed and everybody hopefully half-way satisfied. This AIN'T normal circumstances.
There is a fairly strong rumor the Medicare Supplement block of business may have either been acquired, or possibly about to be.
70-75% replaced....
Doesn't sound like Shenandoah will be Shenandoah anytime soon, if ever.
Found this paragraph, that wasn't included in the first article....
"Virginia Insurance Commissioner Alfred W. Gross recently told IFAwebnews.com that a bidding process is underway for companies who may want to buy Shenandoah Life with the goal of a resolution by “the end of the year.”"
I've said it before, but if the new company cuts out agent commissions, they better get a deal for the Med Supp block... because most of it will be ROLLED.
Not smart to think that if you screw the agents, they won't retaliate.
I've said it before, but if the new company cuts out agent commissions, they better get a deal for the Med Supp block... because most of it will be ROLLED.
Not smart to think that if you screw the agents, they won't retaliate.
Jacob,
I am sure we have both seen stupid before, but if they tried to cut out the agent, seems to me it would be the height of stupidity.
If this is tried, an empty block of business would really be worth nothing. I just don't see it happening to try to save agent commissions.
Of all the companies out there to choose from why would any agent write business for a company wth less than an "A" rating? Are commission just that much better or what?
Group lines from Shenandoah worth less than $500,000? UGH! Seems this is eating up more or whatever equity there is left in the company.
During the IMO meetings, Shenandoah would usually invite around the top 30 individual IMOs to help formulate the going forward of the company. We were normally told that 95% of Shenandoah's individual production was sitting in that room.
As far a I know, none of these 30 IMOs have been consulted for ideas, thoughts or input into running of the company. Except for the investment losses, Shenandoah basically worked as a company (products and profitibility).
By using the $500,000 as a valuation on the group side, why would it not have been possible to bring in the top 30 marketers that may want to play to try to save the assets of this company. The smaller stakes could have been made available to offer to MGAs, GAs, Agents, etc below the IMO level.
I think what I am trying to say is to put ownership of this company in the hands of people who could have a vested interest in the stock and operation; and familar with it's operation, not someone just trying to make a quick wham-bam-thank-you-mam buck.
The top 30 IMOs basically know each other, like each other, work well together, and also know most of the top agents that were driving this company with sales. If it is broken apart, this advantage will be lost to big Corporate America. I, for one would hate to see this happen, but it very easily could.
- - - - - - - - - - - - - - - - - -
Originally Posted by NMFNMDRT
Of all the companies out there to choose from why would any agent write business for a company wth less than an "A" rating? Are commission just that much better or what?
Sometimes as the size of a company grows, impersonality sets in. Also, you may need to go to a less than an "A" to get the products needed.
Don't forget, many "A" and above companies have also gone kerflunky.
Last edited by Joe Moore : 08-25-2009 at 08:57 AM.
Reason: Posts merged
Well i have been reading this one for sometime now. and after being giving the advise from an old timer many months ago i stayed away from them. so now i will add this one up on the side
Where
"I Listened" in steed of the side "BOY I SHOULD HAVE LISTENED"
Group lines from Shenandoah worth less than $500,000? UGH! Seems this is eating up more or whatever equity there is left in the company.
During the IMO meetings, Shenandoah would usually invite around the top 30 individual IMOs to help formulate the going forward of the company. We were normally told that 95% of Shenandoah's individual production was sitting in that room.
As far a I know, none of these 30 IMOs have been consulted for ideas, thoughts or input into running of the company. Except for the investment losses, Shenandoah basically worked as a company (products and profitibility).
By using the $500,000 as a valuation on the group side, why would it not have been possible to bring in the top 30 marketers that may want to play to try to save the assets of this company. The smaller stakes could have been made available to offer to MGAs, GAs, Agents, etc below the IMO level.
I think what I am trying to say is to put ownership of this company in the hands of people who could have a vested interest in the stock and operation; and familar with it's operation, not someone just trying to make a quick wham-bam-thank-you-mam buck.
The top 30 IMOs basically know each other, like each other, work well together, and also know most of the top agents that were driving this company with sales. If it is broken apart, this advantage will be lost to big Corporate America. I, for one would hate to see this happen, but it very easily could.
- - - - - - - - - - - - - - - - - -
Sometimes as the size of a company grows, impersonality sets in. Also, you may need to go to a less than an "A" to get the products needed.
Don't forget, many "A" and above companies have also gone kerflunky.
Buyers are simply spooked when it comes to parting with their liquid assets, and with today's financial climate, what is really a "Good-Deal"?. Today's good-deal could be the bankruptcy idea of tomorrow.
Under normal conditions, Shenandoah should have already been melded into a larger company, and back to virtually be operating as usual. These times are not normal conditions.
We could be looking at uncertainity for years down the road.
If anyone out there wonders if Shenandoah Life had all of their ducks in a row when they dumped a majority of their money in bad investments and wound up in receivership, I have an interesting case to talk about.
I have a lady that took out a life policy with me with Shenandoah Life in June of 2007, paying $27.64 a month for a $10,000 Golden Promise policy. I've known the lady for over 20 years. Always a very good payer...never any problems. I got the 9 month advance....she continued paying premiums. Paid the balance of the first year and subsequent renewals up through November 2009, or so I thought....
I received a call from her the first of this week. Shenandoah Life called her to inform her she owed almost $800 in back premiums on the policy. They had NEVER drafted the first payment from her account for the policy, but had always paid me the renewal commissions each month on the policy. She needed to pay almost $800 to catch up the policy.
They told her she could make partial payments to catch it up.....they apologized to her, etc. She called them today and informed them she wasn't going to.
I understand it's her responsibility to make sure her payments are being drafted, but she's a busy woman...works. Her husband works. They have several policies with me.
They now have one less. Nice going Shenandoah. I just got charged back the commissions I was paid, minus the first month I had collected when the policy was taken out, BEFORE I EVER knew what was going on.
Minus $334.72......nice going Shenandoah Life....or whatever you're called now. Glad she didn't die!
Re: Shenandoah Life Sales Suspended Got a good one about anotherGo to Top
Unbelievable about your chg back. I got a good one about a final expense company{not Shenandoah} that was doing business in my state a few years back. I had written a lady small final expense policy. her husband was a US Marshall. I surely wanted to make sure everything went well because I knew they also wanted to buy LTC Insurance. I also wrote a another member of her family. About 8 months after policy issued I received a chg back of all advanced comm. on her policy? I found out that this company was back tracking on their policies ..doing a script search.. this was in the 9th month after issue. They wrote her a LTR. cancelled her pol. and chg back all of advance. I called company and shortly after this they pulled out of State. I of course did not know what else to do and this also happened to other agents. The client had no ins. I could have written her with another company but she was so upset she just did nothing. This company had marketed itself on liberal underwriting...a few health questions and only a MIB. I have learned that if it sounds to easy "STAY AWAY"
Case #2 that shows Shenandoah Life doesn't know what the hell they are doing....
I have a lady that has/had a term policy with me that let it lapse. She then called me to inform me she wanted to catch up the back payments and reinstate the policy.
I printed the application form to reinstate the policy....completed what Shenandoah lists as being required, got her to sign it....sent it in to them, along with 4 months payment + the signed HIPPA form.
Five weeks after mailing in what was needed, I get a letter from Shenandoah today stating they need the exact same form completed(reinstatement form), that I had sent in + one more months payment + the signed HIPPA form again.
I call Shenandoah this morning......Darlene tells me the application form for reinstatement didn't include the children's rider completed. Uh...the instructions don't list that as one of the requirements.
I asked her why it took so long to catch the error. She tells me it wasn't caught when they initially received it and was just caught when an underwriter looked at the reinstatement form. She also informed me the HIPPA form wasn't needed again even though the letter I got today says it is.
These people don't know what the hell their doing anymore. Maybe they never did.
Why not replace your policy with them? You have a client that sounds like they would change in a heartbeat. Go do it. You have done what you could to save the business.
Why not replace your policy with them? You have a client that sounds like they would change in a heartbeat. Go do it. You have done what you could to save the business.
I can't replace mine because of health issues.
I suggested to the client about replacing hers, but her children are now beyond 18 and wouldn't be eligible for a children's term rider under a new plan/company, so she wanted to get her Shenandoah reinstated.
Re: Shenandoah Life Sales Suspended
Linear Mode
