That is what I am suggesting. The state funds it with a premium tax and maintains the right to assess the companies if that is not sufficient. It would cover all policies that were sold in that state. If you bought it in another state, then you would have to look to that state for coverage. Then, you would have real protection even though so far no one has supposedly never had a death claim was was failed to be paid because of company insolvency.
Colorado Bankers (CB Life)...
- Thread starter FETalk
- Start date
It is my understanding the death claims are still being paid in full. The cash values are another matter.
Royal Arcanum is still paying only 60% of the death benefit on the plans they assumed from ACA...... and only paying 60% of cash values.
What benefits are payable upon my death?
This assessment will result in a forty percent (40%) proportionate reduction in benefits payable under your policy. In other words, while the assessment is in place, ACA will pay 60% of the amount of any death claims received on or after April I, 2011. Upon the assumption of your policy by Royal Arcanum, Royal Arcanum will likewise pay 60% of the amount of any death claims received.
Can I surrender my policy?
Yes.
A moratorium had been in place with respect to the surrender of policies and with respect to new policy loans from September 2008 until April 22, 20 II. This moratorium has been lifted as to surrenders, and you may surrender your policy to ACA at any time prior to the closing date of the assumption of your policy by Royal Arcanum. If you elect to surrender your policy during this period, your payment will equal the cash surrender of your policy reduced by 40%. In other words, you will receive 60% of the cash surrender value. If you surrender after your policy is assumed by Royal Arcanum, the cash surrender value will similarly be reduced by 40%.
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I get it that you are a fraternal hater.
But it wasn’t my intent to get into that with the haters.
It’s terrible what CB is doing to their policy holders.
I was just pointing out the fallacy of the protections supposedly afforded by the state guaranty fund.
I never sold CBL. Thankfully. But I did go they this with Shenandoah.
That took 5 or 6 years to get thru.
Regulation is certainly needed. Federal is better because the scoundrels that want to escape state regulations will just go to another state.
You have called me that before but it isn't true. I have sold fraternals in the past but I do think people should be aware of how an assessment works. And, I have been through a couple of company bankruptcies.. Settlers was one. None of the death benefits under $300K were reduced. Not so with the fraternals.
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That’s much better than the settlement from the state guarantee fund that the PreNeed policies got from the scam coumpany out of St. Louis. They lost all the policy growth and couldn’t cash out early.
But the above didn’t lose 1 penny of their death benefit unlike the fraternal rouse showed . That’s why 95% of people buy these policys not for the tiny cash value . I was looking at my Trans book since they show loans . I was looking at policys 10 plus years old . I saw very few policy loans . The fraternal reducing death benefit is a very occurance . But we deal in guarantee’s and I can’t guarantee the clients death benefit with a fraternal. Like I said I’ve occasionally written Rna when I needed the underwriting to get level .
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They lost a LOT of the death benefit. In some cases 50% or more of it. They lost so much that a lot of funeral homes won’t even accept those policies anymore if they understand what they are going to be paid.
Liquidation approved on 11-21-22
[EXTERNAL LINK] - NC judge puts Greg Lindberg insurance companies into liquidation
Nonsense response by Global Growth
[EXTERNAL LINK] - Global Growth Comments on Liquidation of Greg Lindberg's North Carolina Insurers
[EXTERNAL LINK] - NC judge puts Greg Lindberg insurance companies into liquidation
Nonsense response by Global Growth
[EXTERNAL LINK] - Global Growth Comments on Liquidation of Greg Lindberg's North Carolina Insurers
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that is not good. Liquidation will not only take a long time, but those with more than the maximum guaranty association limits will lose those amounts. A sale, if possible, might have been better for all policy holders & all their total account values. Only time will tell how this will play out as I am sure the other good solvent insurance carriers in the states will try to delay having to take their own money to give to the guaranty association to pay the claims after liquidation
