Colorado Bankers (CB Life)...

[Allen Trent]

I don’t know about that. That seems like a gray area. When I was trained on annuity sales they told us if we give any indication that we are guaranteeing that the state guarantee funds will be in place and they will be covered by it we are over stepping and liable. It’s a weird situation. But the program exists as a sort of safety net. But no agent is allowed to say you will definitely be included in it. We could only guarantee up to the insurance company’s ability to pay. And at one time all annuity policies had that exact verbiage on them.
And if you disagree, try putting it in writing that THIS policy I’m selling you will be included in state guarantee protection in the event that the insurance company fails.
If you can’t put it in writing, you can’t say it either.

I have always understood it to be that an agent or company cannot use Guaranty Assoc info or limits in marketing information or as part of the sales process. However, when asked by consumers as to protection or government guarantees like banks have with FDIC, agents can answer questions & direct individuals to the consumer pages of the State Guaranty Assoc website.

IE: cannot use it pre-emptively to assist in making a sale more solid, but can & should answer questions about it when the topic is requested by consumers

 

[jdeasy]

I have always understood it to be that an agent or company cannot use Guaranty Assoc info or limits in marketing information or as part of the sales process. However, when asked by consumers as to protection or government guarantees like banks have with FDIC, agents can answer questions & direct individuals to the consumer pages of the State Guaranty Assoc website.

IE: cannot use it pre-emptively to assist in making a sale more solid, but can & should answer questions about it when the topic is requested by consumers

That has always been my understanding too.

And that’s what the Ky statute says. You cannot use the state guaranty fund to sell for or against a product.

I’ve never seen a prohibition from explaining something you are asked about.

It would be crazy to prohibit an agent from explaining it when another agent has improperly brought it up.

But there are some crazy insurance rules.

 

[Newby]

I have always understood it to be that an agent or company cannot use Guaranty Assoc info or limits in marketing information or as part of the sales process. However, when asked by consumers as to protection or government guarantees like banks have with FDIC, agents can answer questions & direct individuals to the consumer pages of the State Guaranty Assoc website.

IE: cannot use it pre-emptively to assist in making a sale more solid, but can & should answer questions about it when the topic is requested by consumers

You just cant guarantee that their policy will definitely be covered by it. And you can’t imply that it would ever be guaranteed by any government funds like FDIC insurance is.

 

[Newby]

I'm not putting it in writing. The carriers literally do this. It's part of the policy/application in a number of states.

Yes in states where it is a part of the policy that is different. But then again, if they later move to another state or to Canada, are they still covered?

 

[Tahoe Ray]

Yes in states where it is a part of the policy that is different. But then again, if they later move to another state or to Canada, are they still covered?

Read the policy.

 

[Newby]

Read the policy.

The only ones I've ever seen say they are not. But what does that mean exactly?

 

[Tahoe Ray]

The only ones I've ever seen say they are not. But what does that mean exactly?

If you move to Canada can you make a full claim on your LTC policy?

You're being pedantic about an obvious benefit for consumers.

I have never once mentioned a guaranty association in an annuity sale but you seem to believe that they don't exist.

Read the policy and it will tell you what's covered.

 

[Newby]

If you move to Canada can you make a full claim on your LTC policy?

You're being pedantic about an obvious benefit for consumers.

I have never once mentioned a guaranty association in an annuity sale but you seem to believe that they don't exist.

Read the policy and it will tell you what's covered.

I'll have to pull mine out and look at it again. But I don't think they say anything about any state guarantee program. And I was trained pretty extensively in a classroom setting on annuities by ForeThought and they made it very clear that we could not lead anyone to the conclusion that a failed insurance company would definitely be backed up by any guarantee from anyone. They talked about the state guarantee funds and made it clear they CAN help some policy holders but that agents are not to state any guarantees that it will do anything to protect them. That it isn't a part of the contract.

I know Indiana's reads that if they move out of Indiana they are no longer covered. What if they moved to a state that did not have that carrier at all? Would their guarantee cover them? Does anyone really know? What about UL policies? Are they covered? Beyond the minimum guarantees of the policy? Because those always look bad. Does anyone really know?

Why do continuing education courses never have a course on how state guarantees work? It seems like that is a subject that nearly every agent explains or even understands incorrectly (many think it's like FDIC insurance). Why don't they educate us on that subject?

 

[Tahoe Ray]

I know Indiana's reads that if they move out of Indiana they are no longer covered. What if they moved to a state that did not have that carrier at all? Would their guarantee cover them? Does anyone really know?

Here is Nevada's language and it's similar to all compact states.

As you're probably aware, Indiana has some weird rules like CA, CT, and NY when it comes to insurance.

If I move to another state after purchasing a policy, will I still have Guaranty Association coverage? If so, who will provide it?

Guaranty association protection is generally provided by the association in your state of residence at the date of the liquidation order regardless of where your policy was purchased. Policyholders who reside in states where the insolvent insurer was not licensed are covered, in most cases, by the guaranty association of the state where the failed company was domiciled.

 

[Allen Trent]

I'll have to pull mine out and look at it again.

This sounds more of a topic to talk to your Dr about, not us "professionals" on the forum