Does Genworth Negotiate Changes to Policies in Claim Status

[scagnt83]

"And when the sh*t really hits the fan, everybody takes a haircut"

Not true...............

In 2001, Conseco filed for bankruptcy. At the time, it was the 2nd largest bankruptcy in the country's history.

I had 3 Conseco policyholders on claim at that time. Not one policyholder missed a claim check.

They had the Reserves put aside and not one penny of those funds were used for for anything other than for paying claims.

Read the post again. I wasnt talking about policyholders; I said that policyholders are protected by the reserves in an earlier statement.


What I said was that investors take a haircut. And I was referring to a normal corporation; not an IC in that statement.
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Actually, barring government intervention, the owners always come last. And that is what stockholders are, the owners. It secured creditors, unsecured creditors, employees and finally shareholders in the normal world.

In bankrupcy yes.

But when someone says the term " the investors come first" in reference to corporate america; it usually refers to the day to day operations and business decisions of a solvent company.

Meaning that they will do whatever they can to make the price of the stock go up.
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"And when the sh*t really hits the fan, everybody takes a haircut"

Not true...............

In 2001, Conseco filed for bankruptcy. At the time, it was the 2nd largest bankruptcy in the country's history.

I had 3 Conseco policyholders on claim at that time. Not one policyholder missed a claim check.

They had the Reserves put aside and not one penny of those funds were used for for anything other than for paying claims.

And just to play devils advocate on that statement; if the SGA were to ever kick in during an insolvency, policy holders certainly could take a hair cut since most of the caps are around $300K....

I am not saying it has happened, or has happened often; but it is still a possibility.

 

[Arthur Rudnick]

"And when the sh*t really hits the fan, everybody takes a haircut"

Well, what you said was that "everybody" takes a haircut.
Since you were specfically referring to insurance companies, I assumed that "everybody" also includes policyholders.

But, if that's not you meant, I stand corrected.

 

[VolAgent]

In bankrupcy yes.

But when someone says the term " the investors come first" in reference to corporate america; it usually refers to the day to day operations and business decisions of a solvent company.

Meaning that they will do whatever they can to make the price of the stock go up.

I'd say that is a depends. Management will do whatever it takes to protect their position. Including screwing over existing shareholders by issuing new shares to dilute their stake.

 

[scagnt83]

I'd say that is a depends. Management will do whatever it takes to protect their position. Including screwing over existing shareholders by issuing new shares to dilute their stake.

Very true.
But the BoD has to answer to the shareholders, and the company Management has to answer to the BoD.... so ultimately management has to answer to the shareholders at some point... of course by that time management could probably care less since they got their bonuses and egregious salaries
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"And when the sh*t really hits the fan, everybody takes a haircut"

Well, what you said was that "everybody" takes a haircut.
Since you were specfically referring to insurance companies, I assumed that "everybody" also includes policyholders.

But, if that's not you meant, I stand corrected.

Here is my full quote, not just a single selective sentence:

Again, this is were an IC is different than your regular corporate titan; their first and foremost responsibility is to the policyholders, and their financials have to be in order that way.



But in his defense, in the corporate world in most companies the "investors" come first as a general statement, and its hard to disagree with that.

And when the sh*t really hits the fan, everybody takes a haircut... just look at the GM bailout... oh wait.... that wasnt a true free market and true contract provisions... it was a socialist gov intervening in a free market ..... lol
But either way my point is valid.

When you look at the single sentence yeah, but when you read it with its context it should make sense to most who are at a decent reading level.... for some reason people on this forum (especially LTC forum) dont like to fully read posts...

 

[djs]

Wow, this thread has gone a long way from the OP picking up the phone to see if he can build a case for an exception, with the likely outcome being no way will that happen.

Dan

 

[billberry12]

And we still don't even know if he called Genworth or not.

 

[Arthur Rudnick]

Originally Posted by scagnt83

"Again, this is were an IC is different than your regular corporate titan; their first and foremost responsibility is to the policyholders, and their financials have to be in order that way"

When you look at the single sentence yeah, but when you read it with its context it should make sense to most who are at a decent reading level.... for some reason people on this forum (especially LTC forum) dont like to fully read posts...

Sorry,
Reading wasn't one of my strongest subjects in school. I was a little better in spelling and grammar.

Oh, By the way...................
"Again, this is were an IC is different .....

WERE?? Did you mean were, or did you spell where incorrectly?

Really doesn't matter, but I was just curious.......



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[billberry12]

Ronnie, no offense, but what is your point as related to the original post?

 

[Mr_Ed]

Ronnie, no offense, but what is your point as related to the original post?

there is no point to his post, Bill.

The purpose of his post was to plant his link to his website in the post.

He's just trying to drive traffic to his site and try to increase his ranking in the search engines.

 

[billberry12]

I feel so violated! :0