Indiana DOI Puts Standard Life of Indiana in Rehab!!!

Dec 23, 2008

  1. insuranceexec
    Offline

    insuranceexec Guru

    Posts:
    1,802
    Likes Received:
    10
    State:
    Arkansas
    I just read the disclaimer that was put out by the IN DOI referring to Standard Life of Indiana. It stated that all surrender requests, either full or partial, would be temporarily placed on hold, and for all annuity customers to just hold tight.

    What is the max. length of time for the DOI to place a hold?

    A customer of mine called and wanted to know when they can expect their money. Thanks in advance for all of your help!!
     
  2. somarco
    Offline

    somarco GA Medicare Expert

    Posts:
    29,263
    Likes Received:
    3,000
    State:
    Georgia
    IBJ.com - Indianapolis Business Journal - Story Detail

    STLI Standard Life Insurance Company of Indiana Taken Over by Insurance Department

    Doesn't look good.

    When Mutual Ben had a similar problem a few years ago surrenders were put on hold for a few weeks (as I recall). Similar with Baldwin United.

    This is done to prevent (or forestall) a run on the carrier.

    They do it trying to buy some time until a suitable carrier can be located to assume the business.

    It looks like they are trying to rehab the carrier. You can read about what happens under a rehab by clicking here.

    http://www.ins.state.pa.us/ins/lib/ins/consumer/brochures/liquid_rehab.pdf
     
    somarco, Dec 23, 2008
    #2
  3. insuranceexec
    Offline

    insuranceexec Guru

    Posts:
    1,802
    Likes Received:
    10
    State:
    Arkansas


    I thank you for the post. Keep up the great work of keeping us educated..