Colorado Bankers (CB Life)...

[scagnt83]

More amazing is how rating agencies cant see some of these fraudulent activities. instead, we see the ratings drop after the news of the crime/fraud

Scary more like it. But it makes sense, they are not doing a full audit. They are just reviewing financial docs given to them by the carrier. As long as the math adds up there is no way for the ratings agency to know.

They should start doing a review of the carriers annual audit and including that in the ratings.

 

[Tahoe Ray]

They should start doing a review of the carriers annual audit and including that in the ratings.

That would require MONEY so it's unlikely to ever happen.

Years ago someone asked me: "if you were an expert analyst, would you go work for Goldman and make millions or go to work for S&P and make 200k"...made sense to me.

 

[Allen Trent]

Scary more like it. But it makes sense, they are not doing a full audit. They are just reviewing financial docs given to them by the carrier. As long as the math adds up there is no way for the ratings agency to know.

They should start doing a review of the carriers annual audit and including that in the ratings.

Agree. The irony is how much the ratings are marketed, bragged about or relied upon. Some seem more like a paid membership like the Better Business Bureau or JD Power review than they are an independent 3rd party rating to be fully relied upon. You could almost make the case that they could further a scam by positive ratings based on fake documents

 

[scagnt83]

Both of you make excellent points.

At least with the audit, I think they are assuming the state regulators are doing their job in reviewing the audits and performing their own. Of course that is not an every year thing I dont believe.

 

[Tahoe Ray]

geez, what were these guys invested in? Amazing how "professional: money managers can be so wrong.

Obviously not the same investments as Daddy Cohen. Hopefully this Friday!

 

[Todd King]

Email received last Friday...

The Rehabilitator understands that many people are experiencing financial distress during the Rehabilitation proceeding. Accordingly, the Rehabilitator filed a motion in the Rehabilitation Court to modify the Court-ordered moratorium, to allow annuity contract owners to more easily access annuity account funds. The Court granted the Rehabilitator’s motion and will allow a one-time option for a limited partial withdrawal of funds, as a modification to the moratorium during rehabilitation. This does not include the transfer or exchange of funds to another carrier and must be taken as a withdrawal. This also does not include certain de minimis or minimal face value annuities, or the cash value of any life policy, as any life policy will continue to remain in force. This does not mean the moratorium has been lifted or that rehabilitation is over.

For your awareness, in the coming weeks, annuity contract owners will receive a letter explaining they are eligible for a one-time option for a limited partial withdrawal of funds. Please be aware that due to the volume of letters that will be distributed, the letters will be mailed over a 4-week timeline, so not all annuity contract owners will get their letters at the same time. Colorado Bankers Life Insurance Company has partnered with Kurtzman Carson Consultants LLC (KCC) as our administrator for this process. Contract owners with account values less than $1,000 will have 30 days from the date of their letter to opt out and retain their funds with the insurer; otherwise they will receive a check for their account value, less any applicable surrender charges and withdrawal fees. Contracts owners with account values $1,000 and greater will be directed to the KCC website to request a withdrawal. Each letter will provide the annuity contract owner with instructions on how to submit their request through KCC, and how to contact KCC for any questions that may arise. Previously used CBLife withdrawal forms will not be accepted as part of this offer.

If you have any questions related to this offer, please contact KCC at
1-844-926-1524 between the hours of 9:00am and 8:00pm ET Monday – Friday.

Sincerely,
CBLife Contract Owner Service

 

[rats0001]

Well that is a really interesting development.

I read the last rehabilitators report and to me it looks CBLife should go into liquidation now. Of the over $900,000,000 of Greg Lindberg's (now in jail for 7 years) closely held assets, over $700,000,000 stopped paying on 6/30/2020.

Surplus is almost gone, and no company can make it when around 33% of their assets go bad.

So I guess this will drag out for years and then go into liquidation.

 

[Tahoe Ray]

Well that is a really interesting development.

I read the last rehabilitators report and to me it looks CBLife should go into liquidation now. Of the over $900,000,000 of Greg Lindberg's (now in jail for 7 years) closely held assets, over $700,000,000 stopped paying on 6/30/2020.

Surplus is almost gone, and no company can make it when around 33% of their assets go bad.

So I guess this will drag out for years and then go into liquidation.

That's how this works almost 100% of the time...

 

[David Nyman]

Hello All
I'm one of the stupid suckers that bought 2 - 5 year annuities with Bankers Life Insurance worth about 310 K. Its been paying me a monthly amount, same as before the rehabilitation. I'm trying to get a better feel how this is going to play out. As far as I'm concerned, they have allready defaulted on their contract with me. I was supposed to be able to withdraw 10% penalty free each year and the 310k after paying a penalty before the 5 years, then withdraw 100% after 5 years. They halted withdrawls with the rehab. When I bought these annuities I was assured that everything would be guaranteed by the Utah Life & Health Insurance Guaranty Association. I was told this was like the FDIC. NOT!!!! It seems that the rehab puts these insurance companies into limbo where they default on the annuity contract but can't be sued or forced into liquidation. Indefinitely!!! What a racket!! And nobody seems to be guarding the chickens. The NC insurance Commissioner was taking bribes from Lindburg to loosen the regulations even more so he could raid more. This annuity paid maybe .5% more than a CD. I don't think people understand the high risk that these insurance products have. The Insurance Agent set this up to not mature until 25 years later even though the intent was to take the money out after 5 years. The interest rate drops to 1% after the 5 yr guarentee period is over. How can you guys sell this crap and sleep at night knowing that there are people investing their retirement savings into this garbage???

 

[Allen Trent]

Hello All
I'm one of the stupid suckers that bought 2 - 5 year annuities with Bankers Life Insurance worth about 310 K. Its been paying me a monthly amount, same as before the rehabilitation. I'm trying to get a better feel how this is going to play out. As far as I'm concerned, they have allready defaulted on their contract with me. I was supposed to be able to withdraw 10% penalty free each year and the 310k after paying a penalty before the 5 years, then withdraw 100% after 5 years. They halted withdrawls with the rehab. When I bought these annuities I was assured that everything would be guaranteed by the Utah Life & Health Insurance Guaranty Association. I was told this was like the FDIC. NOT!!!! It seems that the rehab puts these insurance companies into limbo where they default on the annuity contract but can't be sued or forced into liquidation. Indefinitely!!! What a racket!! And nobody seems to be guarding the chickens. The NC insurance Commissioner was taking bribes from Lindburg to loosen the regulations even more so he could raid more. This annuity paid maybe .5% more than a CD. I don't think people understand the high risk that these insurance products have. The Insurance Agent set this up to not mature until 25 years later even though the intent was to take the money out after 5 years. The interest rate drops to 1% after the 5 yr guarentee period is over. How can you guys sell this crap and sleep at night knowing that there are people investing their retirement savings into this garbage???

You might have a case against the agent if they told you it was like the FDIC. I believe that is a prohibited statement.

Also, the component you mention of 25 year maturity is likely a non issue. The maturity definition in your policy likely defines a maximum maturity date as to when you would be forced to elect a lifetime irrevocable payout annuity stream of payments. I would suspect it has no bearing on what you are going through today.

Good luck & I hope this resolves soon for you & the other clients of CBL