Agents Behaving Badly

Nov 3, 2016

  1. Brian Anderson
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    Brian Anderson Executive Editor

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    It always catches my eye when I run across a story about an insurance agent or financial advisor running afoul of the law – and sometimes it brings them down in spectacular or dramatic fashion.

    These cases can make for some fascinating reading about just how far off the rails some of these unethical agents have gone. Posted a piece that has four fairly recent examples – albeit the first couple are admittedly much more egregious than the last two (guy paid himself $96,000 a month, plots to kill a judge and state insurance commissioner, gets 37 years and owes $137 million in restitution? Other guy commits suicide and his life insurance more than makes his victims whole?)

    Check it out at the link below, and if you have any stories to share about the occasional bad apple you’ve heard of, by all means please post it here!

    Insurance Forums | Agents behaving badly: 4 cases of caught in the act
     
  2. ModernInsurance
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    ModernInsurance Super Genius

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    Interesting read, I enjoyed that!
     
  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    I've heard that there are still some insurance agents in California that are still selling annuities. ;)
     
    DHK, Nov 3, 2016
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  4. pfg1
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    pfg1 Guru

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    Through Allianz? ;) :laugh:
     
    pfg1, Nov 3, 2016
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  5. mplsmm
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    mplsmm Super Genius

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  6. Brian Anderson
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    Brian Anderson Executive Editor

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    Received an email from a reader saying beneficiaries can't collect on death benefit triggered by suicide as in case #2 from the article. I think some policies - and probably the ones this guy had because I imagine he checked - WOULD pay out on suicide provided it was beyond the 2-year contestability period?

    And would they indeed pay the full death benefit and not just return premiums paid? (that might happen if the suicide was within the contestability period?)
     
  7. somarco
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    somarco That Medicare Expert Guy

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    Beyond the contestable period policy pays regardless of cause of death. Group term life generally does not have a contestable period.
     
    somarco, Nov 3, 2016
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  8. Brian Anderson
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    Brian Anderson Executive Editor

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  9. mplsmm
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    mplsmm Super Genius

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    No...lol. A couple of customers had mentioned they were saying mean things so I just googled them, you know looking for complaints, that kind of thing. But then this. Crazy. Most people don't remember and I don't feel right bringing it up. It just seems odd they deemed it a hardship on the community to close them down. I suspect she just couldn't find carriers anymore or the prices were too high and she wanted to keep these longtime customers and it just snowballed.
     
    mplsmm, Nov 3, 2016
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  10. TampaHound
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    TampaHound Guru

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    It would also be a PR nightmare if the company didn't pay out after their clients were defrauded.
     
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