Bankers Life Insurance Rehabilitation Questions

[caryl baff]

Yes have contaced many attys who do not feel case worth the time or effort.

 

[fed up]

Yes have contaced many attys who do not feel case worth the time or effort.

If you have any evidence that your agent said that the money was guaranteed, any evidence the agent compared it to FDIC. Call the agent and ask for his E & O carrier name and number. He HAS TO PROVIDE IT. Now you will be dealing with his insurance carrier who has an obligation to look at your evidence and decide if the agent made a mistake. You would benefit from the insurance carrier if the agent misspoke

 

[Mahmoud mansour]

Yes have contaced many attys who do not feel case worth the time or effort.

Did they say why it is not worth the effort

 

[Mahmoud mansour]

Allen answered the question that was asked. And it was a correct answer.

If you have any factual information to share. You are more than welcome to do so.

It is a tragedy what is happening with peoples life savings in this situation. And it serves as a huge learning opportunity for both agents and consumers. Way too many agents dont realize the danger of selling B rated carriers. Way too many consumers fail to ask basic questions or do any research on their own... literally 1 minute searching on google would have provided the rating info and how it ranks compared to other carriers... literally 1 minute on the State SGA website would have shown that SGA is not insurance and does not make consumers whole if something like this happens.

Ask lots of questions. Ask where to find that info to confirm the answers being given. If you doubt what your being told and still go through with it... get the items you have doubts about in writing ... if the agents isnt willing to then they have something to hide.

Its sad what has happened to you. I get that your angry. But this isnt just about you. Its not just about the people directly affected by this. It is about the industry. And that is what Allen was discussing.

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When one company is offering returns/benefits/etc. that are way above what everyone else in the market offers... there is a reason... and it almost never is because they are doing great financially. Companies with strong financials dont need to take on increased risk to offer high returns just to make sales. Companies with weak financial strength do.

The state and the SGA allowed them to sell policies

 

[fed up]

The state and the SGA allowed them to sell policies

They sold contracts and there is nothing wrong with that aspect. If an agent alluded to a guarantee, then the agent made the mistake and you need some proof that words were used to make you think it was guaranteed. that is what E & O insurance is for, Errors and Omissions

 

[scagnt83]

If you have any evidence that your agent said that the money was guaranteed, any evidence the agent compared it to FDIC. Call the agent and ask for his E & O carrier name and number. He HAS TO PROVIDE IT. Now you will be dealing with his insurance carrier who has an obligation to look at your evidence and decide if the agent made a mistake. You would benefit from the insurance carrier if the agent misspoke

Good point. They are not required to go through an attorney.

They can also demand Arbitration, since this was a recommendation by an IAR/RIA. No requirement to have an attorney there either, although beneficial.

Many people do not contact the right attorneys either. Very few specialize in securities law... then you have to find ones who have a sub-specialty in breach of Fiduciary Duty. That usually means someone not local.

 

[scagnt83]

Did they say why it is not worth the effort

Assuming its a decent sum of money invested, the only reason would be lack of evidence the agent/advisor said that and based the sale on that. If there is evidence, it would be a slam dunk case that never makes it to court. E&O Insurer would settle in a heartbeat.

 

[scagnt83]

The state and the SGA allowed them to sell policies

The SGA does not allow insurance sales. It is a separate entity from your State Department of Insurance.

You are correct, the State DOIs missed the fraud that was happening.

The Insurer was receiving annual audits by some type of accounting firm. That entity was obviously not doing their due diligence. Then the state did not do their due diligence in making sure the audit had correct documents to back it up. (perhaps exposing a flaw in the regulatory system)

But whats your point?

Someone committed fraud, a crime.

The State did not allow this. They just did not catch it happening.

Just like the SEC did not allow Bernie Madoff to commit fraud... they just didnt catch it until it was too late.

But there were warning signs that this investment carried a higher amount of risk vs. other annuities on the market. That is why independent rating agencies exist. Transparency can play a part in a carriers financial ratings. The less transparent they are with providing financial documents and past audits, the more the rating suffers.

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Your state allows you to invest in any publicly traded company... despite what financial condition that company might be in. Its up to the consumer and their chosen expert to evaluate the trustworthiness of any public company they choose to purchase stock in.

The same is true for insurance carriers... except the state has a comprehensive vetting and approval process... along with reserve requirements and other financial requirements... along with a system designed to help soften the blow of any financial issues that do come up.

Your state also encourages consumers to heavily consider a carriers financial ratings, along with shopping the market and speaking to multiple agents; all before making a decision and trusting your money with that carrier. They actually give you an entire "buyers guide" in most every state, that is required to be given to you by the agent at the time of sale. It lists those considerations along with many others.

So not only does the state do their best to vet the company, not only do they have laws about financial reserves the company is supposed to follow... but they also tell you the consumer exactly what to look out for and how to avoid negative outcomes when purchasing annuities.

Sorry to sound insensitive... but what more do you want your state to do?

 

[Allen Trent]

Assuming its a decent sum of money invested, the only reason would be lack of evidence the agent/advisor said that and based the sale on that. If there is evidence, it would be a slam dunk case that never makes it to court. E&O Insurer would settle in a heartbeat.

Because there is no assurance they will lose any money in the end, the average attorney likely won't take the case as there may be no losses to get in court unless they get back in the end less than policy guarantees. Not sure if even an E&O carrier would settle or if some sort of punitive damages would be available due to lack of access in the meantime or pain & suffering.

If it were me & I had an RIA that owed a fiduciary duty, I would be contacting those lawyers advertising for clients of this company to at least join the others in a similar position

 

[Mahmoud mansour]

Are you saying the SGA will not cover to the limits known and published. BLIC is NAIC SGA covered in the states they sold policies in. We have the proof. We checked on it before buying. And BLIC is licensed to sell policies. So why the SGA does not kick in?