Bankers Life Insurance Rehabilitation Questions

[Tahoe Ray]

Key word here is “supposed”. In reality annuities are sold as a guaranteed product.

I'm not going to give you a hard time because I'm sure what you're going through is very frustrating but carrier ratings are important.

It's like buying a bond from a company with a great balance sheet vs. one that's more mediocre. The mediocre company has to pay a higher interest rate to entice interest in their bonds, whereas the other company doesn't have to offer a higher rate because they'll generate a market based on their financial strength.

It's really tough to see what's going on here and while you'll likely get your money, it's not a quick process. I understand where you, as a consumer, are coming from but all annuities/carriers are not the same.

 

[David Nyman]

I realize that you are defending the companies that provide your livelihood, but this is a failure that goes beyond just one company. North Carolina regulators let me down by making it easy for Greg Lindberg to raid the insurance companies after accepting political donations. The rating agencies did not give a bad rating to these companies. I did not feel like I was buying a junk bond, And the state insurance guarantee made me feel like if anything did go south, I would be covered. I doubt most people realize the state insurance guarantee will not make you whole if the insurance company defaults on your contract as long as the company can limp along in rehabilitation. What’s to prevent another Lindburg from buying a better rated insurance company an doing the same thing?

 

[Tahoe Ray]

I realize that you are defending the companies that provide your livelihood, but this is a failure that goes beyond just one company.

I have an agency that does a lot more than annuities. I am not defending Colorado Bankers (or any other companies) at all.

I've been in this industry for over 20 years and what they (Lindberg) did to their customers was beyond egregious. That being said, I have several family members, friends, and others invested in annuities with companies that I am comfortable with. Painting all annuities as "bad" is disingenuous, especially when the claims/interest-paying ability of the carrier is primary. Guarantee associations should not be used in evaluating a potential annuity investment and it is illegal for an agent to use them as such.

The rating agencies did not give a bad rating to these companies.

Their rating was below what many of us on this forum would consider offering.

And the state insurance guarantee made me feel like if anything did go south, I would be covered.

Have you lost your money? They are currently under regulatory supervision and the outcome is TBD

What’s to prevent another Lindburg from buying a better rated insurance company an doing the same thing?

It would have to be a Lindburg w/ a lot more money. Larger companies are going to naturally have more oversight, although I guess anything is possible.

I'm sorry that you're going through this. I would be similarly frustrated were I in your shoes.

 

[scagnt83]

Most agents who make a living from selling annuities do not sell B rated carriers. Many E&O policies (an agents liability insurance) dont even cover B ratings. Besides that, there are plenty of competitive A and A+ rated carriers to choose from.

 

[caryl baff]

I sent Mr Causey email over 5 weeks ago and NEVER received a reply. Cant say am surprised. What a shame we need our money and after begging cant even receive a response.

 

[Brian Coughlin]

Have you applied for the hardship withdrawal?

 

[Mahmoud mansour]

Hi. Any updates about the issue?

 

[somarco]

What’s to prevent another Lindburg from buying a better rated insurance company an doing the same thing?

Laws do not PREVENT crimes from happening. They provide a means to prosecute the guilty parties who broke the law.

 

[Mahmoud mansour]

Do we need to get together on a class action suite? Is it worth starting now?

 

[caryl baff]

I would have an interest if legit but no atty is willing to take it on they feel "not enough $"