Alternative to Ohio National

[Norwayguy]

"What are the current events? Slight drop in ratings?"
A slight drop, their comdex rating was as high as 92 not long ago.
After the last ratings downgrade, they will probably be around 87.
That is not a slight drop.
Let'ts not confuse a mutual holding company with a true mutual.
Just ask the policyholders who bought prior to the conversion.

Dropping products and keeping commissions

 

[walthamny]

Whats wrong with keeping renewal commissions. I have seen NYL and NWM do it so many times to their 20 year career agents. When they are not happy on how much business they place with the mother company, audit them and find something very small in the client files, fire them and keep the renewals. Raising production numbers is also another way. Ohio National has now joined the club.

 

[Norwayguy]

Whats wrong with keeping renewal commissions. I have seen NYL and NWM do it so many times to their 20 year career agents. When they are not happy on how much business they place with the mother company, audit them and find something very small in the client files, fire them and keep the renewals. Raising production numbers is also another way. Ohio National has now joined the club.

Because they are not even claiming to find anything and these are independent agents.

 

[DHK]

Whats wrong with keeping renewal commissions. I have seen NYL and NWM do it so many times to their 20 year career agents. When they are not happy on how much business they place with the mother company, audit them and find something very small in the client files, fire them and keep the renewals. Raising production numbers is also another way. Ohio National has now joined the club.

Because it's a violation of the selling and compensation contract.

In your example, you allege that companies "nit-pic" for ways to avoid paying out vested renewals to a specific individual agent.

In the case of Ohio National... they did it to EVERYONE (who isn't a captive agent with them).

 

[VolAgent]

Whats wrong with keeping renewal commissions. I have seen NYL and NWM do it so many times to their 20 year career agents. When they are not happy on how much business they place with the mother company, audit them and find something very small in the client files, fire them and keep the renewals. Raising production numbers is also another way. Ohio National has now joined the club.

From a pure pinching pennies stance, that is a very smart move. However, long term it will get you a reputation you don't want.

When your business and in fact your entire industry is built upon a promise and the trust that you will fulfill that promise, do you really want to develop a reputation for dishonest and unethical dealings? Because even though those minor infractions existed in your example, the sole reason it was done was to avoid paying promised compensation to those agents. If I can't trust you to keep one promise, how can I trust you to keep another?

A contract that requires the courts to enforce is a contract not worth entering.

 

[ATM]

I think they are smart to focus on what they are good at.
Now the whole annuity renewals deal....I think they could have handled that much better and I'm sure will end up paying for it through lawsuits in the end. I agree, spreading the business around is a good idea.

IMO what Ohio National is telling everyone is that they have serious financial problems - mismatched assets and liabilities.

They are scrambling to cut costs at every turn and sticking to advisers was just the very first step. They are also gutting the back office and watch for them to stick it to policyholders to try to stay in business.

(all just my opinions with a little insider knowledge, whatever that may or may not be worth.)