- 29,467
Hitler's not around. Is it ok to be a Nazi now?
AmAm get their Eapp up and running?
- Thread starter myinsurebiz
- Start date
- 4,017
You may remember that there were numerous scandals beginning in the late 90's involving deceptive sales practices. From race based pricing to selling UL's as investments, the whole industry was thrown into general turmoil as one company after another fell victim to class action litigation.
I was in new agent training with MetLife in 1990 when one of their hotshot golden boy sales managers addressed the class. When I got back to my local office, my manager asked, "Did (forgot his name) speak to your class? Forget everything he said. He's gonna get this company in a lot of trouble!"
What he was doing was marketing a whole life policy with a paid up additions rider as an investment. (Admittedly Met's dividends were paying extremely well at that time.) That's not a problem, as long as the client clearly understood that they were buying life insurance. But this guy and his agents were selling it as a qualified TSA to hospital personnel all over the southeast.
MetLife would not have had a significant problem if they could prove they didn't know what he was doing. But in the trial it became clear that management all the way up to the home office "sort of" knew, but turned a blind eye because he was one of the top sales managers in the company, and making them a lot of money.
For the first half of my career, I worked in a military town. I can't tell you how many times I discovered shady sales practices when talking with military prospects. Funny thing, though, is they would never believe they'd been misled, because they'd been sold by an ex-Navy officer, or ex-Marine, etc. who they trusted more than the young insurance "salesman".
As far as I remember, I never ran into American-Amicable back then. But I can tell you there were lots of agents around town (a lot of them ex-military!) selling insurance as "an investment account" to military personnel and others. They were writing for companies you would all recognize (and have probably written).
My point in all this: If we refused to do business with a company because of past sins, we wouldn't have very many companies left to write!
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- 4,017
No. But it's ok to be a German, right?Hitler's not around. Is it ok to be a Nazi now?
- 29,467
As long as they don't start a World War for the 3rd time.
- 1,912
AmAm has never had a captive team and has never sold directly to consumers.
You had a rogue IMO license exmilitary (and in some cases current personnel) to dicesptively market an insurance policy as an investment.
Another point that proves why the Indy model is severely flawed. Being out of compliance is very expensive for the carrier and many times they have no idea.
There is no way they were not aware of what was going on.. They have a responsibility to oversee those that represent them, independent or not. However, it is my understanding the company was furnishing the materials that the agents were using in their presentation..
- 29,467
Personally, I'd find another company to represent. One that doesn't hate our military.
- Thread starter
- #38
- 5,933
Do you have to be face 2 face for AmAm's new Eapp?
- 3,989
Yes
- 1,912
Depends on which IMO you are with.
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