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 don't blame you. From what I've read this morning, the outlook is bleak unless they get a buyer. By then they may not have too much left.
I looked at the policyholders I've got with them. 95% are stuck. If they replace, there's the cash-value hold up + higher premiums + health issues.
Correct again Moonlight. Providing an insurance company goes insolvent they have 180 days to refund your money with interest. The FDIC can postpone payment for a period of up to 6 years with no interest. Which would you want your money in?
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Correct again Moonlight. Providing an insurance company goes insolvent they have 180 days to refund your money with interest. The FDIC can postpone payment for a period of up to 6 years with no interest. Which would you want your money in?
There are limits on what is guaranteed out of the guaranty fund in that particular state(insurance).....which leads to, what happens to an insured with say a $2 million dollar death benefit on a term policy? They'll switch companies, if possible.
Based on, about the guaranty fund in Virginia..."covered in the following amount:
$100,000 in cash values or $350,000 for all benefits, including
Cash values, with respect to one life."
Unless another state helps...."You may wish to consult your advisor to determine guaranty
Fund coverages which might be available from another state’s
Guaranty Association."..........
I think if you check, the FDIC can take quite a long time to make you whole...
Not to mention the fact that the FDIC is woefully underfunded. But hey, John is the expert on annuities and all things financial, so we should listen to him. Maybe we'll get an IAAA (Independent Annuity Agent Association) from him soon.
The FDIC says “historically” depositors are paid within a few days after a bank closes, usually the next business day. Depositors can access the funds by opening an account at another bank or by receiving a check for principal and interest, up to the insurance limit.
Sure they can, up to the limit. My point was the fact that they are horribly underfunded. If there are trillions of dollars in deposits and only about $45 billion in the FDIC, it won't take much for the FDIC to go broke. Of course, then we'll be able to print more money and go deeper in debt.
Can anyone cite any article where someone waited up to six years to be paid by the FDIC?
Heck, show me where this is even written....
Providing an insurance company goes insolvent they have 180 days to refund your money with interest. The FDIC can postpone payment for a period of up to 6 years with no interest. Which would you want your money in?
Very incomplete answer. Refund your money.... has limits, in California, it's only 80% of the amount owed, etc. I can't find any reference to days to pay or interest, I'd be interested in a link for this.
Not to mention the fact that the FDIC is woefully underfunded.
Agreed, but at least it is funded. What is the status of your states insurance guaranty fund? I'm assuming at best it is underfunded, with a high likelyhood its assets have been lent to the states general fund.
I'm all for investing in insurance companies, that's how I make my living. I have problems with partial truths to make things sound safer than they are.
The truth is, both are reasonably safe places to put your money. The FDIC is probably a little safer, since lately all they have to do is run the money printing press for a few extra seconds and they can pay your claim. The guaranty fund would come from the state, so they would have to print an IOU in California right now.
In either case, it's the government vs the government, not insurance company vs the government.
Lol - partial truths? how about blatant lies some clients are told by a few (not many) annuity salesman in order to scare them regarding FDIC insured investments in order to pocket an annuity commission.
I'm also trying to research where the FDIC has up to six years to pay but can't find reference. Can anyone show me where they have six years to pay?
Who has more money... a State Guaranty Fund or the FDIC...?
How much money can Virginia print, anyway...
My fed'l gov't can kick your states azz... when it comes to printing money...
There is absolutely NO comparison between any states Guaranty Fund and the FDIC... The State Guaranty theory only works if there is a small percentage of failures. If there were hundreds of ins co failures, soon the TARP fund would be on speed dial with every State Ins Commissioner... if they aren't already.
1-800-Tim-Geithner
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"A successful man is one who can lay a firm foundation with the bricks others have thrown at him." David Brinkley
------------------------------------
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
There are limits on what is guaranteed out of the guaranty fund in that particular state(insurance).....which leads to, what happens to an insured with say a $2 million dollar death benefit on a term policy? They'll switch companies, if possible.
Based on, about the guaranty fund in Virginia..."covered in the following amount:
$100,000 in cash values or $350,000 for all benefits, including
Cash values, with respect to one life."
Unless another state helps...."You may wish to consult your advisor to determine guaranty
Fund coverages which might be available from another state’s
Guaranty Association."..........
From the questionnaire.
Everything has limits; and every state is different.
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Originally Posted by healthagent
lol - partial truths? how about blatant lies some clients are told by a few (not many) annuity salesman in order to scare them regarding FDIC insured investments in order to pocket an annuity commission.
I'm also trying to research where the FDIC has up to six years to pay but can't find reference. Can anyone show me where they have six years to pay?
So that we are clear this is after the FDIC has stepped in, and paid up to their limits. This was on their website as recent as a few months ago; it is not their now.....go figure.
Last edited by insuranceexec : 02-14-2009 at 01:44 PM.
Reason: Posts merged
Some bad info in this outdated article of Apr, 08... The banking and financial world have changed since then, if you hadn't noticed...
[COLOR=red]"I thought the FDIC has full faith and credit backing by the US treasury? [/COLOR]
[COLOR=red]Actually, no, it does not.[/COLOR] The language in Section 14 of the FDIC Act is clear and unambiguous (emphasis mine): "
Some bad info in this outdated article of Apr, 08... The banking and financial world have changed since then, if you hadn't noticed...
[COLOR=red]"I thought the FDIC has full faith and credit backing by the US treasury? [/COLOR]
[COLOR=red]Actually, no, it does not.[/COLOR] The language in Section 14 of the FDIC Act is clear and unambiguous (emphasis mine): "
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?
JD,
This is strictly an opinion, but I would think that ROP is a contractural obligation that would have to be honored. I believe I would not jump ship too fast until I found out for sure.
Once the regulators have decided what disposition is to be made of Shenandoah, I am sure you can probably get a legal answer to this question.
That is sad but probably true tarp on speed dial!
I think the US gov. is about to have a funding issue. A lot of foreigners have stopped funding them and the fed is buying the treasury bills now which is likely to cause massive inflation and make things much much worse.
Originally Posted by SportsNut
Who has more money... a State Guaranty Fund or the FDIC...?
How much money can Virginia print, anyway...
My fed'l gov't can kick your states azz... when it comes to printing money...
There is absolutely NO comparison between any states Guaranty Fund and the FDIC... The State Guaranty theory only works if there is a small percentage of failures. If there were hundreds of ins co failures, soon the TARP fund would be on speed dial with every State Ins Commissioner... if they aren't already.
1-800-Tim-Geithner
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Man,JD that is one tough spot to be in with a ROP.
Originally Posted by 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?
Last edited by Jim : 02-14-2009 at 03:01 PM.
Reason: Posts merged
That is sad but probably true tarp on speed dial!
I think the US gov. is about to have a funding issue. A lot of foreigners have stopped funding them and the fed is buying the treasury bills now which is likely to cause massive inflation and make things much much worse.
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Man,JD that is one tough spot to be in with a ROP.
Here's the math on it. It's a $100,000 15 year term with ROP. I pay $44.63/mo. for it. I said I had it for 5 years. I've actually had it 4 1/2 yrs or 54 months. The It's at the super preferred rate. The ROP part of it is $23/mo. I've paid a little over $1200 for the ROP so far. I made a little over $400 commission on it. I'm negative $800 if I dropped it now.
I still would qualify for super preferred with any company, yet, I'm 4 1/2 years older. But, I would get a new commission if i went with someone else. Contestability is not an issue as, by Ky law, a new contestability cannot be imposed on a replacement.
I'm leaning to replace it. I was wondering if someone could give me a good reason to not do so.
Re: Shenandoah Life Sales Suspended
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