Degree Of Honor Life Insurance Company?

Discussion in 'Final Expense Forum' started by Rearden, Oct 4, 2012.

  1. Rearden
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    Will do -- would prefer a carrier-specific form with the company's logo to emphasize the fact to prospects.
     
  2. rousemark
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    It is not a just a case of what the client thinks, in many jurisdictions if the agent mentions the Guaranty Fund during the sales process he is violating the law and could lose his license.
     
  3. jacobtn
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    Does anyone know if a fraternal has ever went out of business, or put clients in a situation where an insurance company would have been placed in receivership and the state fund been involved had they not been a non-profit fraternal? just curious.
     
  4. Rearden
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    Rouse, has the fraternals successfully lobbied to do just that in TN?
     
  5. gordon112
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    When where fraternal societies ever included into the Guaranty Fund in the first place?
     
  6. Norwayguy
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    They haven't lobbied...Many DOIs have this conflicting approach to mentioning the state guarantee fund. You are in most cases specifically prohibitted in bringing up the guarantee fund as a sales tool. Your not supposed to mention it unless the client asks....

    At the same time the DOI chided agents when selling a fraternal for not mentioning its not covered by the guarantee fund. This was an issue in Maine with UCT medsupps a couple years back the DOI was upset that agents did not mention it.

    The worry agents who are independent have is if you show the fraternal and mention the guarantee fund but end up selling another product specifically because the client is concerned about not being covered by the guarantee fund shouldn't be a worry but in light of the Glenn Neasham prosecution in Kalifornication I don't take anything lightly.

    Personally I believe the DOIs are emberassed when people ask about the guarantee fund as you can pull up the current reserves of the fund and it can be very shocking how little is held.
     
  7. Tahoe Ray
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    Exactly. I don't know of ANY states that allow that discussion....does anyone else?
     
  8. rousemark
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    Fraternal society puts $12 million lien on policies | TribLIVE
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    Not a case of fraternal lobbying for it but it is not permitted in Tennessee..
     
    Last edited: Oct 11, 2012
  9. jdeasy
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  10. rousemark
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    Had that been a stock company without the ability to make assessments, it may well have been placed into receivership for not meeting reserve requirements.

    I don't know of the total failure of any fraternal in recent years but there were several up through the early part of the 20th century. (Just as there were several stock and mutual companies that failed)
     

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