Colorado Bankers (CB Life)...

[rats0001]

lindberg and global growth would have strung this out forever. If they had a real deal just put up or shut up. A deal with Aspida doesn't count.
Maybe the process can now start.
Policies with over 300K have only themselves to blame.
I didn't think that funding the guaranty associations was voluntary.

 

[jdeasy]

lindberg and global growth would have strung this out forever. If they had a real deal just put up or shut up. A deal with Aspida doesn't count.
Maybe the process can now start.
Policies with over 300K have only themselves to blame.
I didn't think that funding the guaranty associations was voluntary.

Guaranty associations are not funded. Once all avenues are explored then the companies are ordered to pay their share.


But companies will argue that all avenues have not been exhausted and will fight it as long as they can.

The guaranty associations are the companies way to stave off being regulated.

 

[Allen Trent]

lindberg and global growth would have strung this out forever. If they had a real deal just put up or shut up. A deal with Aspida doesn't count.
Maybe the process can now start.
Policies with over 300K have only themselves to blame.
I didn't think that funding the guaranty associations was voluntary.

I don't follow this as close, but we're the only offers of new owners not really legit buyers?

Guaranty Association definitely not voluntary, but I am sure the good carriers will try to drag it out as they will need time to raise the cash by selling their investments before maturity to donate to the Guaranty assoc to pay for the misdeeds of bad people that regulators failed to provide adequate oversight over

 

[rats0001]

if CBL is in such good shape with great liquidity, then the hit to the guaranty associations should be minimal.

 

[jdeasy]

if CBL is in such good shape with great liquidity, then the hit to the guaranty associations should be minimal.

That's the argument of the other companies trying to avoid paying anything.

 

[Bob L]

I only wrote one CBL annuity, and then a year later, the owner died. His granddaughter is the beneficiary, but she ran off to FL somewhere and is nowhere to be found. Last time I checked with CBL, they were still depositing his monthly $$$ into his bank account long after he died.

How's that for a great insurance story? The granddaughter could get $45K immediately (I think, since I gather they are still paying claims like this), and doesn't even know it.

 

[Allen Trent]

I only wrote one CBL annuity, and then a year later, the owner died. His granddaughter is the beneficiary, but she ran off to FL somewhere and is nowhere to be found. Last time I checked with CBL, they were still depositing his monthly $$$ into his bank account long after he died.

How's that for a great insurance story? The granddaughter could get $45K immediately (I think, since I gather they are still paying claims like this), and doesn't even know it.

Most states escheats laws require the money to be paid to the states unclaimed funds. I believe Michigan is only like 120 days after death if a claim settlement has not begun

But CBL isnt known for following the laws, they were more known for high commissions & high interest rates & low ratings

 

[Allen Trent]

I'm glad this is coming to a conclusion. The Rehabilatator (Mike Causey) has also filed with the court to start monthly interest payouts to annuitants, effective Nov 1, 2022 while the liquidation plays out. Of course, all policies that are in the penalty-free withdrawal period are only getting 1.5% vs what they were getting or 4%+ on a current CD. He has also filed for another "1-time" distribution to annuitants like they did in 2020. That would most likely be a 10%'er like last time. At least it's something while we wait.
Meanwhile, Lindberg and his ankle bracelet tracking device are busy moving cash. He has relocated to Florida where he just spent over $4MM on two large homes (on the same street) east of Tampa. He will never stop... Here's hoping for a speedy retrial in March and a return to the federal country club prison in Alabama for the remainder of his term.
What I find amazing is the lack of national coverage of this mess, involving 4 or 5 insurers into the billions of dollars, while Sam Bankman-Fried's smaller crypto scandal gets tons of coverage. The Lindberg story is much more far-reaching. I guess annuities & reinsurance aren't as sexy as crypto currency. And as I type, other risky venture capital firms are buying up annuity businesses and the policyholders will be clueless. Baby boomers are shoveling tons of cash into annuities this year for the vultures to feed on...

sickening what he has gotten away with. I am guessing the bigger reason it isnt national news is no one has ever heard of the companies involved & even agents in the industry have never heard of the carriers. mostly bank sold & smaller companies

your post brings up a good point/question. if interest starts being distributed or a consumer was allowed to take distributions the last few years, do all those amounts subtract from the maximum guaranty association claim of say $250k or $300k? IE: If someone had $500k in & taking out $15k per year the last 3 years, will they only get a max claim of 250k/300k minus the $45k already received while under supervision, etc

 

[rats0001]

Not sure if this help, but sounds good to me

https://programbusiness.com/news/to...es-plead-guilty-to-conspiracy-to-defraud-u-s/

 

[Newby]

sickening what he has gotten away with. I am guessing the bigger reason it isnt national news is no one has ever heard of the companies involved & even agents in the industry have never heard of the carriers. mostly bank sold & smaller companies

your post brings up a good point/question. if interest starts being distributed or a consumer was allowed to take distributions the last few years, do all those amounts subtract from the maximum guaranty association claim of say $250k or $300k? IE: If someone had $500k in & taking out $15k per year the last 3 years, will they only get a max claim of 250k/300k minus the $45k already received while under supervision, etc

I can tell you when it happened with the funeral PreNeed policies 10 or 15 years ago everyone lost all their guaranteed growth from all the years the policies accumulated. All they got was the beginning face amount of the policies. Some of them lost nearly 50% of the death benefit their policy had grown to.