caryl baff
Expert
- 49
They indicated it was not enough money for them.
Bankers Life Insurance Rehabilitation Questions
- Thread starter David Nyman
- Start date
- 5,005
That is too bad. My guess is then that the attorneys must know you will end up eventually with all your money plus the guaranteed interest, so they have nothing to sue an agent for. I would think there would be something to sue for if they were found to have done something wrong because of not having access to your money like the 10% free withdrawal per year etc.
Raw deal all the way around & in the end will also hurt the agents that never sold one & the companies who did nothing wrong but may get an assessment bill for their pro data share to the SGA
Mahmoud mansour
Expert
- 22
So, Allen trent/guru. What do u do. Obviously you aren't a BLIC client. So, is the only help, you offering, out of ur good heart is to inform us we are screwed. We know we are. Can you leave the discussion to people that can offer help do something and you can stay on the sideline?
- 5,005
Listen, I have absolutely zero idea what posts you are reading, but I am not telling you are screwed. Numerous times in this thread I have said I believe you will get all your money back plus the gu
aranteed interest. In the other threads on this topic, I have give several ideas.
You just either are not reading or because you are distraught you are reading something that isn't in these posts.
Regardless, and I am so sorry to say this, but you are quickly becoming an A-hole in this thread with your responses
Lloyds of Lubbock
Guru
- 755
"Regardless, and I am so sorry to say this, but you are quickly becoming an A-hole in this thread with your responses"
Alan...that ship sailed quite a while ago
Alan...that ship sailed quite a while ago
Mahmoud mansour
Expert
- 22
Thank u for insulting.
- 30,540
You had it coming.
- 10,810
Being an RIA makes the issue a totally different ballgame than just a normal insurance agent.
If the investment was over SGA limits, E&O would likely settle initially for the amount over the limits. Then try to wait and see on the rest.
The issue is the recommendation. Did they explain the risks of a B rated carrier? Did they disclose that the company was in the bottom 50% percentile of insurance carriers? Did they show alternatives with better ratings and discuss the pro/con issue of investing in a lesser rated carrier to chase yield? Did they perform a detailed analysis of their financial situation before making this recommendation?... if so... how did they grade the annuity on a risk scale when judging its appropriateness?
Im probably missing a few. But if they missed even 1 of those things, its an E&O claim for that Advisor. Much less if they used the SGA to help make the sale or compared the SGA to FDIC Insurance.
The Advisor would have to answer as to why this slightly higher rate of return, with a much riskier carrier, was the best decisions for the client.... they would have to answer why a slightly lower rate of return with a much safer carrier was not a more appropriate recommendation. And we all know the answer to that. So does the E&O carrier.
If anything, the E&O policy would pay out what the client needs in the meantime while waiting on the SGA to sort things out. Either it would be considered an advance to be paid back, or it would be "pain and suffering" for going through the ordeal.
If the SGA was used in the sale by an IAR and there is proof. A securities attorney would take the case in a heartbeat. And E&O would settle in a heartbeat. JMO. But the amount of funds does matter for it to be worth their time. They probably arent going to take a $20k case.
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- 10,810
Historically, they have always met the guarantees of the contracts.
But this is, to my knowledge, an unprecedented event. There have been some insurers in really rough shape before. There has been normal "evasive" accounting fraud, etc. But this guy literally stole $2billion plus from the company one day.
The SGA uses the existing assets first and foremost to pay back policyholders.
Then other insurers must make up the difference via an "assessment". But most states cap assessments at 1%-2% of policy premiums. Some even have long term caps in place I believe.
So if the amount needed to make policyholders whole again is over the caps in your state, it could mean multiple years of payouts before policyholders are made whole again. There is no time stipulation on how fast policyholders must be paid.
I have not done the math on it all (mostly because I dont care because Id never risk my career or a persons life savings by selling a B rated annuity carrier). But at some point they will give a timeline. I wouldn't be surprised if its a multiyear process to be made whole.
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Mahmoud mansour
Expert
- 22
Has anybody heard from bankers life. Did the accounts go back online?
