Colorado Bankers (CB Life)...

[ProActive]

In other words, the SGA has to pay us their cap amount on the amount that is owed at the time CBL went into liquidation, with no deductions for any amounts paid out before the company went into liquidation.

 

[Dan T]

AMR says once claim is accepted the interest stops… also they said there is no interest on the overage if applicable. Still no info when overage portal will be up, still no check here

 

[David Nyman]

Greed. Ignorance. Complacency. By all parties involved.

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A 2 min google search would have informed both consumer and agent that a B+ rating is dangerously low and means a high risk of default.

Even A- is low and carries a much higher amount of risk.

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Some agents dont care. Some dont know.

Many sold it because it was the highest rate available at the time. Willfully blind perhaps. Figured 3 years or 5 years is such a short time "what could go wrong".

But the agents and their firms are not all to blame.

Consumers bought this product because it paid a 50% higher interest rate than what AAA rated annuity carriers paid at that time. 200+% more than CDs at the time.

There was plenty of willful blindness, lack of questions, lack of confirming info given; by the consumers impacted.

Everything a financial advisor tells you, can be fact checked. In fact, the advisor should be able to provide sources for you to fact check.

Your advisor tells you a B+ rating is a strong rating? Ask them where you can verify that info at. If they "cant tell you" that is a huge red flag.

I can give you a 3rd party reference link to literally almost any fact I tell you as an Advisor. Especially something as cut and dry as financial ratings.

Blind trust is how you lose a lifetime of hard work.
Trust but verify, is how you stay safe.

For those who bought through bank channels.... thinking a bank has your best interest at heart.... or the best and brightest advisors on staff.... thats your first mistake. That is where advisors who cant make it on their own go to get a salary so they dont starve out of the business. And the bank only cares about making more money, in larger amounts. Thats why they pushed the easiest to sell product (highest rate) that could capture the most assets the quickest.... BECAUES THEY DONT CARE ABOUT YOU.

If they cared about you, they would have educated you on why not to get the 3% annuity and opt for the 2.5% annuity with the A+ rated carrier instead.... especially considering the fact that CDs paid 0.5% at the time.

Ive consulted for banks insurance departments on behalf of carriers. They only care about the commission, upper management could care less what the product is, they care about the largest commission.

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Dont get me wrong, I feel its the Agents moral duty to explain ratings and how riskier annuities pay higher rates, and safer annuities pay lower rates.

Its most certainly their legal duty to not hold out the SGA as "insurance" or a catch all for selling sh*tty annuity carriers.

It is also their legal duty to explain ratings truthfully if asked.

And I feel its a moral duty to show a AA or AAA rated option along with a lower rated option and explain the risk involved with both. (when I say lower rated, I do not mean a B rating)

That obviously did not happen in many cases in this situation. And it is a tragic situation for many consumers involved in this mess.

Bull$hit about how obvious a B+ rating should have sent out red flags. If I recall a B+ meant the insurance company was pretty solid and had a good likelihood of paying its obligations.

 

[Tahoe Ray]

Bull$hit about how obvious a B+ rating should have sent out red flags. If I recall a B+ meant the insurance company was pretty solid and had a good likelihood of paying its obligations.

Many agent's E&O (malpractice for financial services) won't cover carriers below A- fwiw.

 

[jdeasy]

Many agent's E&O (malpractice for financial services) won't cover carriers below A- fwiw.

I have heard that for years. But everytime I've asked an E&O carrier about that they say it doesn't matter. They are covering the agent. Not the companies.


Even googled it and found the same thing.

There could be some that specifically exclude those companies but the agent would have to sign off on that.

 

[Tahoe Ray]

I have heard that for years. But everytime I've asked an E&O carrier about that they say it doesn't matter. They are covering the agent. Not the companies.


Even googled it and found the same thing.

There could be some that specifically exclude those companies but the agent would have to sign off on that.

It is 100% real.

I have seen a lot of E&O policies.

Are you asking E&O carriers with annuity provisions/riders? The ones the write financial advisors?

NAPA (who I would guess a lot of people on this forum have) has in insolvency rider that the carrier must have been A- or better A.M Best rating at time of placement.

 

[scagnt83]

Bull$hit about how obvious a B+ rating should have sent out red flags. If I recall a B+ meant the insurance company was pretty solid and had a good likelihood of paying its obligations.

Did you read any of my other posts that explained a B+ rating is a poor rating.

The bullsh*t is what you were led to believe about financial ratings.

And a 2 min google search could provide you with the correct information. Go to the AM Best website. Or S&P website. They provide definitions of the ratings right there for you to read yourself.

I get that people were deceived about the ratings. But that does not take away from the fact that the information is readily accessible.

 

[scagnt83]

I have heard that for years. But everytime I've asked an E&O carrier about that they say it doesn't matter. They are covering the agent. Not the companies.


Even googled it and found the same thing.

There could be some that specifically exclude those companies but the agent would have to sign off on that.

Read your E&O policy. It will tell you. Many will not cover a B rated carrier.

 

[scagnt83]

I have seen E&O that covers B+, but not below a B+. Ive seen E&O that wont cover anything below an A-.

I dont think any E&O will cover below a B+.

 

[jdeasy]

Read your E&O policy. It will tell you. Many will not cover a B rated carrier.

I asked my E&O carrier and they said it made no difference.

There's nothing in my policy to the contrary.


But if it's on the innerweb it must be true.