- 26,081
I believe he is saying the Maintenance of Reserves clause does not exist at all. @rousemark 1 posted a copy before.
Did you just lose your favorite fraternal?
- Thread starter Baseball7
- Start date
I believe he is saying the Maintenance of Reserves clause does not exist at all. @rousemark 1 posted a copy before.
- 4,299
Chris, can you confirm whether they're in Texas? I might pick them up if they are.
- Thread starter
- #53
- 4,119
I'
That can only be "invoked" if the company is in financial trouble and their reserves are impaired. I don't beleive anyone is alleging that to be the case with KSKJ.
- 26,081
I understand. I think the question was does that clause exist and if so can it be invoked?
Then for me, If it can, and as @DonP asked can it then impair the DB and CV?
If it does not exist then that is moot. If it does, are the DB and CV truly guaranteed? It is a good question. IMHO
- 19,579
Yes. Fully guaranteed. An agent in Michigan got in quite a bit of trouble going around to KSKJ clients and claiming differently.
I've tried to get some Ky agents in trouble about it and they would have been. But then they all miraculously didn't say anything of the sort.
They would "never make such claims".
And all but one have been smart enough to not put anything in writing.
The IMO hung that one dude out to dry though.
Even though every agent at that imo was telling prospects the same thing, that one guy was just rogue and they termed him.
Last edited:
If an assesment is made then it can be witheld from the cash value if the policy is cashed out ot the death benefit in case of death.
- 26,081
So, the Death Benefit and Cash Values can not be assessed by the fraternal through the Maintenance of Reserves? A $10,000 Whole Life policy will be $10,000 death benefit, short of loans and client changes, Period.
The Maintenance of Reserves clause does not exist in a Fraternal certificate then?
Thanks for the education.
- 26,081
So a fraternal 'can' asses, loan, borrow, encumber the cash values or death benefit of a certificate?
I don't run into many fratenals anyway and am never replaced by one so not that important to me. However, it would be nice to know when reviewing active policies in a home.
Kinda sounds like the old UL arguments from the past. There was a lot of wrong info.
Jd so your saying the FULL death benefit is guaranteed if kskj goes under ? Who's backing that guarantee? I know if a non fraternal goes under and it's under $300k db it's guaranteed by the state or other insurance company's at FULL face . That's been proven over the last 150 yrs as nobody has ever not gotten their full face db . According to Rouse who's shown proof in the past a fraternal or 2 that had financial issues has assessed the db and not paid the full face benefits. I want to get to the bottom of this .
Similar threads
