Colorado Bankers (CB Life)...

[ccwpc]

The state cares because if insurance companies in NC pay out Linburg’s policies, those insurance companies would need to raise the rates or leave NC. The State of NC cares because this affects the state’s economy and state insurance policies. There are very few fraud cases this size involving Billion dollars+ retirement annuities. This case has implications for future ruling and set proper procedures going forward. The whole country is watching.

If the state cares, why is Lindberg being allowed countless appeals and delays and motions that benefit him? Also, I'm surprised this whole situation is flying relatively under the radar and not in the mainstream news. If you're not one of the policyholders, you would have never heard of this case.

 

[pcast79]

Have any of you been in contact with a lawyer for this matter and is it worth it?

 

[Allen Trent]

But since the insurance companies play the DOI like a puppet they will drag it out.

I get what you are saying. However, as an agent that writes a ton of insurance for those insurance companies, how do you collect those big monthly commissions from these shady companies you speak of?

wouldnt it be a more principaled stance if you boycotted selling insurance until you felt more comfortable with insurance companies and the Department of Insurance?

 

[Allen Trent]

The state cares because if insurance companies in NC pay out Linburg’s policies, those insurance companies would need to raise the rates or leave NC. The State of NC cares because this affects the state’s economy and state insurance policies. There are very few fraud cases this size involving Billion dollars+ retirement annuities. This case has implications for future ruling and set proper procedures going forward. The whole country is watching.

The majority of consumers that bought CBL contracts are not NC residents, so it is carriers of other states where residents live/purchased that will owe it. Where the criminal case took place or the liquidation takes place doesnt have any greater impact on that state in regard to other states carriers funding the guaranty association of their given state

 

[jdeasy]

I get what you are saying. However, as an agent that writes a ton of insurance for those insurance companies, how to you collect those big monthly commissions from these shady companies you speak of? wouldnt it be a more principaled stance if you boycotted selling insurance until you felt more comfortable with insurance companies and the Department of Insurance?

No

 

[ACDC]

Not too many states have Billions of dollars put aside in case of life insurance companies failures or fraud. The state is not in a hurry to deal with this probably because they do not have the money or a plan to pay for this mess yet. The longer the state waits, the less Linburg’s companies will be worth. The big losers in all of this mess are the policy holders who may never see a full return never mine earned interest. In this case, the banks are the one who robbed us.
The other issue is the brokers who are pushing these high yield retirement annuities and telling people the money is guarantee which we all know now is not. I believe the brokers should pay a share of the money owed as well since they made tons of money off these high risk annuities.

 

[Allen Trent]

Not too many states have Billions of dollars put aside in case of life insurance companies failures or fraud. The state is not in a hurry to deal with this probably because they do not have the money or a plan to pay for this mess yet. The longer the state waits, the less Linburg’s companies will be worth. The big losers in all of this mess are the policy holders who may never see a full return never mine earned interest. In this case, the banks are the one who robbed us.
The other issue is the brokers who are pushing these high yield retirement annuities and telling people the money is guarantee which we all know now is not. I believe the brokers should pay a share of the money owed as well since they made tons of money off these high risk annuities.

States don't have a single penny set aside for this. They bill the other insurance companies that had nothing to do with it for the shortfall. Even the insurance companies that don't even offer those type of annuities get a bill for their share. If there is $10M needed in say Georgia for CBL policyholders shortfall of Guaranty Association minimum guarantees, a life insurance company that has 10% market share I'm Georgia will get a bill for $1M even though they have no connection to CBL (10% of $10M =$1M)

 

[Newby]

Not too many states have Billions of dollars put aside in case of life insurance companies failures or fraud. The state is not in a hurry to deal with this probably because they do not have the money or a plan to pay for this mess yet. The longer the state waits, the less Linburg’s companies will be worth. The big losers in all of this mess are the policy holders who may never see a full return never mine earned interest. In this case, the banks are the one who robbed us.
The other issue is the brokers who are pushing these high yield retirement annuities and telling people the money is guarantee which we all know now is not. I believe the brokers should pay a share of the money owed as well since they made tons of money off these high risk annuities.

Uh… you realize no states pay any money to anyone on failed insurance companies don’t you?

So called “State Guarantee Funds” are never funded by the state nor guaranteed by the state.

 

[ACDC]

Right, its the State Guarantee Funds who will try recoup the money. They in turn will try to get it from the insurance companies. In this case, there is a criminal case involved and the rules are a bit different. One thing is certain, no one will come out ahead when its all said and done, its a lose-lose situation.

 

[Allen Trent]

Right, its the State Guarantee Funds who will try recoup the money. They in turn will try to get it from the insurance companies

They won't try to recoup the money. They have no money & will order each insurance company to send in their share so the Association can give the money to the administrator of the insolvency to pay to impacted policyholders