Insurance Agent Forum

[ims01]

Today the State of Virginia announced that it put Shenandoah Life into receivership.

Read the announcement from the Shenadoah website

[Markingriffin]

I think the bottom line is that everyone will have to wait and see what happens. But the clients will find out very soon what is going on. I've seen it a lot today on the news and on the web.

I would recommmend that if you are with Shenandoah I would do some damage control with your clients. I have a feeling that a lot of them will be changing their policies soon as they hear the news. WDBJ7 Roanoke News and Weather NRV Lynchburg Danville | SCC named receiver of Shenandoah Life; OneAmerica calls off merger <--- The clients are reading things like this.

If I was the Home Office, I would try and stay postive too and do some damage control.

Maybe then can get some money from the Gov't. Maybe someone will buy them.

But for right now, you can't write any new business and who knows how long they are going to pay you as an agent. The website says they have stopped paying commissions, but we will see if agents keep getting paid or not, soon enough.

I wonder if A.M. BEST will down grade them again today or soon?

[Markingriffin]

Shenandoah Life Sales Suspended - Page 2 <---- You may want to look at this thread. There are a couple of threads on the subject. But there are a lot of details on this thread.

[Joe Moore]

Originally Posted by Russ

This is great news...

Now that I think of it, maybe this entire situation wasn't handle as good as it could have been for the agents. One minute no more commissions...out the door to replace.... and I come back to the commissions resuming in record time.

Russ,

My thought is that the regulators and the company employees see the need for urgency to try to save what was (and maybe still is) a viable insurance company. I would hope the last thing the regulators would want to see would be to have at least 280 more unemployed.

The last call I had from the home office today is a lady head of the payroll department who has been with this company 37 years. She really has been astonished by the courtesy of the agents calling, even though they were not getting paid. No one has given her a hard time. She has always been a sweetheart for us to work with.

I just think we all need to keep a cool head until we find out the outcome. Remember, the state is now running the company until further notice.

[Russ]

Originally Posted by Markingriffin

I think the bottom line is that everyone will have to wait and see what happens. But the clients will find out very soon what is going on. I've seen it a lot today on the news and on the web.

I would recommmend that if you are with Shenandoah I would do some damage control with your clients. I have a feeling that a lot of them will be changing their policies soon as they hear the news. WDBJ7 Roanoke News and Weather NRV Lynchburg Danville | SCC named receiver of Shenandoah Life; OneAmerica calls off merger <--- The clients are reading things like this.

If I was the Home Office, I would try and stay postive too and do some damage control.

Maybe then can get some money from the Gov't. Maybe someone will buy them.

But for right now, you can't write any new business and who knows how long they are going to pay you as an agent. The website says they have stopped paying commissions, but we will see if agents keep getting paid or not, soon enough.

I wonder if A.M. BEST will down grade them again today or soon?

I do agree that their cred has taken a huge hit. I do think they mean well and have ALWAYS treated me fair in my 10 years with them. I was shocked to read this thread yesterday and probably should have backed away before posting.

Probably 75% of what I have with them is irreplaceable....either by age OR health reasons that have come up.
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Originally Posted by Joe Moore

Russ,

My thought is that the regulators and the company employees see the need for urgency to try to save what was (and maybe still is) a viable insurance company. I would hope the last thing the regulators would want to see would be to have at least 280 more unemployed.

The last call I had from the home office today is a lady head of the payroll department who has been with this company 37 years. She really has been astonished by the courtesy of the agents calling, even though they were not getting paid. No one has given her a hard time. She has always been a sweetheart for us to work with.

I just think we all need to keep a cool head until we find out the outcome. Remember, the state is now running the company until further notice.

I feel sorry for the HO employees. They have 99.9999% of the time been nothing short of professional with me. I like their website, how they handle commissions, the frequency they pay and how well they have always kept the agent abreast with commissions.

[Jim]

I was just thinking the same thing if they stop paying commissions they will have agents replace all the good business and be left with people ready to die. Maybe this is why the might still pay agents. Its likely to late agents are not gona let other people replace their business so they will do it anyway now. Also any possible buyers of the company are gona be aware of this as well.

Originally Posted by Russ

I do agree that their cred has taken a huge hit. I do think they mean well and have ALWAYS treated me fair in my 10 years with them. I was shocked to read this thread yesterday and probably should have backed away before posting.

Probably 75% of what I have with them is irreplaceable....either by age OR health reasons that have come up.

[Russ]

Originally Posted by Jim

I was just thinking the same thing if they stop paying commissions they will have agents replace all the good business and be left with people ready to die. Maybe this is why the might still pay agents. Its likely to late agents are not gona let other people replace their business so they will do it anyway now. Also any possible buyers of the company are gona be aware of this as well.

The company is in receivership, may wind up liquidated...what do they expect customers to do. Hang in with them? Probably too late with a majority of their more recent customers.
I should contact every Shenandoah customer I've got.....

[Jim]

I wonder if it would be illegal or worthwhile to do a mailer in areas where shenandoah is big. Just a simple mailer stating the fact they are now in receivership and and to contact whoever about options they have. I would think this would get a lot of business in some areas. Any thoughts?

[STIBROKER@AUSTIN.RR.COM]

Some how I think NAA had something to do with this......

[Joe Moore]

Originally Posted by Jim

I wonder if it would be illegal or worthwhile to do a mailer in areas where shenandoah is big. Just a simple mailer stating the fact they are now in receivership and and to contact whoever about options they have. I would think this would get a lot of business in some areas. Any thoughts?

My thought is whoever did the mailings may be looking for a new job. Insurance Commissions would not even be close to allowing this to happen without serious repercussions.

You cannot target a company with negative advertising about them.
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Originally Posted by STIBROKER@AUSTIN.RR.COM

some how I think NAA had something to do with this......

I don't think this really is a determining factor, but here is the public record:

http://www.ncbusinesscourt.net/TCDDo...mber=08CVS1190

[ims01]

Today the state of Virginia forced Shenandoah Life into receivership.

Click here to read details from the Shenandoah website

[LifeAgent2]

Greetings folks,

I've been reading along in varies posts with much enjoyment. Primarily articles concerned with FE, and now the recent events concerning Shen Life.

Keep the posts coming and I hope to contribute when I have something intelligent to

[MedSuppPro]

AM Best is a joke!

[policy doctor]

With all the noise on these forums, perhaps no one caught my post, or just passed on commenting on it. I posted this in General Agent discussions, and am reposting because I think we may face this in the near future. Especially as more companies face financial difficulties...and get prepared, there will be more.

Insurance Tip #1: Your agent does not have to act in your best interest - WalletPop Blog

[Russ]

Policyholder gets letter about status of Shenandoah Life.....policyholder calls agent to ask what the deal is about their insurance...will it pay when I need it, in a timely matter? My past experience when a company was in receivership...it took a while for claim payments.

I have a hard time convincing myself NOT to change policyholders, if possible.

[G.Gordon]

One important detail is the fact that "inforce" life policies are an asset. Someone will buy the book and all will be fine. Of course the agent will most likely get screwed. Switching clients to another company when there is no stated risk to the client is unethical IMO.

As far as life renewals only the FE and Whole life products paid anything worth getting upset over and unless you produced 100's of thousands of AP for years upon years this isn't going to make a huge difference. The most I've ever produced in a year for them was $78k... over all the years my current renewals are about $100-120/mo. Not money I'd like to lose, but not money I'm going to run around and switch clients over.

[nka245]

Virginia Places Insurer Under Receivership - Regulatory,Legislative and Tax Issues - Life and Health Insurance News

[Russ]

Originally Posted by G.Gordon

One important detail is the fact that "inforce" life policies are an asset. Someone will buy the book and all will be fine. Of course the agent will most likely get screwed. Switching clients to another company when there is no stated risk to the client is unethical IMO.

As far as life renewals only the FE and Whole life products paid anything worth getting upset over and unless you produced 100's of thousands of AP for years upon years this isn't going to make a huge difference. The most I've ever produced in a year for them was $78k... over all the years my current renewals are about $100-120/mo. Not money I'd like to lose, but not money I'm going to run around and switch clients over.

No stated risk..........

"Question 23: GIVEN THE COMPANY’S CIRCUMSTANCES, WHY ARE
YOU ACCEPTING RENEWAL BUSINESS?
Answer: As part of our efforts to rehabilitate the company and thereby
Provide you the best possible protection, it is essential that we
Keep the company in business. This requires that we preserve
The company’s customers and continue to provide service to
Existing insureds. However, if we conclude that continuing to
Do so is inconsistent with the goal of protecting policyholders
And insureds, we may later cease renewing business.".............


"Question 9: IS SHENANDOAH LIFE CURRENTLY PAYING ALL OF
ITS CLAIMS?

Answer: No. At this time, the Deputy Receiver has imposed certain
Moratoriums upon policy loans (other than automatic loans),
Payment of cash or surrender values, surrenders, fund transfers,
Cash-outs, and similar payments and certain contract changes or
Conversions pending further orders. The moratorium may be
Adjusted as and when the Deputy Receiver and/or the State
Corporation Commission find that the circumstances are
Appropriate. At this time, the Deputy Receiver will allow
Accident and health claims, death claims, and periodic annuity
Payments, and they will so continue until further notice."............


I'm not only an agent, I'm a client of there's. That doesn't sound like a guarantee to me, and if I was in excellent health I would change to a more stable company.

Do I think they will find a buyer? Yes. But I don't blame anyone for changing if they can.

Also, I didn't get my commission, yet. Usually when they have a Thursday cutoff and send out on Friday for direct deposit, it hits my account on Saturday. Nothing there..............
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From google searching the numerous articles on Shenandoah Life, they need a buyer or else it may be over for them.....from one article I read when the merger was announced....WDBJ7 Roanoke News and Weather NRV Lynchburg Danville | Shenandoah Life officials speak out about merger talks

[COLOR=#000000]"It was business as usual at Shenandoah Life, just hours after it was announced the company may be sold.
Leaders say their survival depends on it."
[/COLOR]

[LRG]

All companies had to reprice all their 1980 CSO table products using the new 2001 CSO tables. Some products just didn't work well with the new tables so they were discontinued, or they were not profitable enough so they didn't go through the expensive repricing programs. All repriced products had to be refiled in each state being sold. There are some states that are so backlogged on these new filings that the products have not yet been approved. I believe IL is about 8 months to 1 yr behind in insurance filing approvals.

Also, one major reinsurer has pulled out of reinsuring 25 and 30 yr Term. So the companies that wrote that business have to stopp selling it because they don't have reinsurance coverage for it.

Claims loss is a big part of the Shenendoah problem, along with securitization issues. FE is a difficult product to price....it is targeted at older ages, which inherently will need the proceeds sooner than traditional life products. Unless you carefully prepare and price, underwrite and administrate, mortality experience can hit 400% or higher very quickly! RNA sold FE from 98-2003 or so when they pulled it from the market for just that reason. They got back in to it in 2005 when a marketing group that used to work with PanAm came along and offered them a similar product.

[jdeasy]

I hate to see this as i always liked writing Shenandoah. I am also a client. My wife's annual premium bill came in the mail thurs. It's a term and I'm replacing it with another company.

I have an ROP term with them. It's a 15 yr ROP that I've had for 5 years. Any opinions as to whether I should bail on that one now?