Great News--Southland National Insurance to Liquidate

[rats0001]

Read today, the NC rehabilitator report of 3/31/21 that states, a court hearing on June 7 to June 9 2021 to discuss the liquidation of this company. This is 1 of the 4 companies destroyed by Greg Lindberg. These policy holders will now not be subject to the years and years ordeal that policy holders of Colorado Bankers Insurance and Bankers Life Insurance will have to endure.

The rehabilitator states that Southern National is hopelessly impaired, and only 2 individual policies are above the state insurance guarantee limits.

Of course Global Bankers said they are going to object, so the liquidation maybe delayed also. Colorado Bankers and Bankers Life are also hopelessly impaired, so why no liquidation for them?

 

[caryl baff]

Yes I agree why cant we get representation for Colorado Life & Bankers Life (company I am unfortunately involved with through my broker who didnt act as my fiduciary) and got away with it leaving me out my retirement money. Sounds good that now maybe they will continue with these 2 deadbeat companies and GIVE US OUR MONEY.

 

[rats0001]

I have no more information on the liquidation hearing held on 6/7 to 6/9. I tried to webex it but couldn't get it to work.
The 6/21 trial of greg lindberg for violating the memorandum of understanding, I think was held but I still couldn't get it on webex either.
I guess we will not find out what happened until the rehabilitator report comes out in late August, where they list all the court cases.
You are right Colorado is even more impaired than Bankers Life, but there was no mention of liquidation in the last report. I think its the cost to the state guaranty funds that controls what happens, as Colorado is a over 2 billion dollar work out, but Bankers Life is as I recall like 200 million.

 

[Allen Trent]

cost to the state guaranty funds

there really are no state guaranty funds in existence. the funds must be created at the time of need by the law allowing the association to bill the other insurance companies in the state to cover the amounts needed. Those surviving carriers who had nothing to do with the fraud will fight as long as possible to not have to pay into the situation after all assets have been utilized by the existing failed/fraudulent company. hopefully, something else is worked out by the states to take it over & do as much as possible for the victims

 

[David Nyman]

Like I've mentioned before. The State guaranty fund is like having no guaranty at all. Bankers Life has been in default for three years now and there is no end in sight when or if they will liquidate this. The guaranty fund is more to give an agent the abillity to give a client a warm fuzzy feeling that their money is protected. NOT!!!

 

[Allen Trent]

Like I've mentioned before. The State guaranty fund is like having no guaranty at all. Bankers Life has been in default for three years now and there is no end in sight when or if they will liquidate this. The guaranty fund is more to give an agent the abillity to give a client a warm fuzzy feeling that their money is protected. NOT!!!

Totally can understand your frustration, but like I have mentioned before, agents cannot talk about the guaranty fund or market with it in sales. Likely for the same reasons as you are experiencing today. If you had an agent promote the guaranty assoc, you should file complaints with the insurance bureau & possible file suit against the agent

 

[scagnt83]

Like I've mentioned before. The State guaranty fund is like having no guaranty at all. Bankers Life has been in default for three years now and there is no end in sight when or if they will liquidate this. The guaranty fund is more to give an agent the abillity to give a client a warm fuzzy feeling that their money is protected. NOT!!!

Its not a "State Guaranty Fund". Its a "State Guaranty Association". Big difference.

They do keep a pool of money for liquidity when needed. But that is not an insurance pool waiting to be paid out like FDIC insurance.

Your agent broke the law when using the SGA to market the sale of an annuity. All 50 states have laws against using it to promote a sale.

 

[David Nyman]

I raealize that they are not supposed to mention the SGA, but in my experience is is done frequently. I had a agent from Key Bank try to sell me an annuity last week and he mentioned that it was guaranteed. No chance of losing money. Like a CD. The problem is there is no consequences for these fraudulent agents selling this crap. They completely misrepresent the risk of these annuities.

 

[Allen Trent]

and he mentioned that it was guaranteed.

That doesn't sound like he was talking about the guarantees in case of insolvency. Likely just the interest rate guarantee. I am sure a roofer can talk about a 10 year guarantee of a warranty even if it is only going to be honored if the business is still in operation.

 

[scagnt83]

I raealize that they are not supposed to mention the SGA, but in my experience is is done frequently. I had a agent from Key Bank try to sell me an annuity last week and he mentioned that it was guaranteed. No chance of losing money. Like a CD. The problem is there is no consequences for these fraudulent agents selling this crap. They completely misrepresent the risk of these annuities.

Unfortunately, after 15 years in this business, Ive found banks are the worst offenders when it comes to marketing SGA protection. Or in leaving out details of annuity products. Most "financial advisors" working out of a bank are not very experienced. Banks know banking. They do a piss poor job at knowing insurance and investments.

However, saying an annuity is "guaranteed" is not necessarily incorrect.

Some annuities guarantee a specific return. Others dont. So saying a rate of return is guaranteed on an annuity is not incorrect given the context of rate of return.

But all annuities, all insurance products, 100% of them, are backed by the claims paying ability of the insurer. Whatever is guaranteed in any insurance contract, is guaranteed by the insurer. That is why financial ratings exist. And why well rated carriers offer lower interest rates (or higher premiums) than poorly rated carriers. Unfortunately, you chose to trust a carrier in the bottom 50% (knowingly or unknowingly)

----

Next time the bank agent tells you the annuity is 100% guaranteed by the SGA, get him to email that to you. Then file a complaint with the state DOI and give them the email.

The only way to stop illegal sales tactics is to report it to authorities. (not the bank, they dont care and will likely just cover it up)