Shenandoah Life Sales Suspended

[policy doctor]

On that replacement form you have to give reason for change, and client signs too. Don't think that is not being tracked, esp in this computer age. And i bet co's do or will share info about agents....could restrict your future business. That's assuming there will be a future in this business, or an insurance business, or insurance for the future....oh crap....i'm rambling here.

 

[Russ]

On that replacement form you have to give reason for change, and client signs too. Don't think that is not being tracked, esp in this computer age. And i bet co's do or will share info about agents....could restrict your future business. That's assuming there will be a future in this business, or an insurance business, or insurance for the future....oh crap....i'm rambling here.

If your mom had a Medicare supplement with them, in their state(taken over), would you leave her as is or put her with another company?

*Day 15 of when will Shenandoah Life inform policyholders?*

I've been google searching Shenandoah Life daily and looking at the first 5-10 pages of stories. There's nothing about any company offering to buy them. I notice on their website, they have links on the home page that go to the receivership information. This looks grim for Shenandoah. I'm not sure 250,000 policies can survive this. One of the links goes to the guaranty association for each state. Can you say finished? Hope I'm wrong.
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It's the links for the states that their licensed in... Shenandoah Life - Receivership Documents


Wish I could change my policy, but kidney failure is a knockout punch.

 

[Joe Moore]

If your mom had a Medicare supplement with them, in their state(taken over), would you leave her as is or put her with another company?

*Day 15 of when will Shenandoah Life inform policyholders?*

I've been google searching Shenandoah Life daily and looking at the first 5-10 pages of stories. There's nothing about any company offering to buy them. I notice on their website, they have links on the home page that go to the receivership information. This looks grim for Shenandoah. I'm not sure 250,000 policies can survive this. One of the links goes to the guaranty association for each state. Can you say finished? Hope I'm wrong.
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It's the links for the states that their licensed in... Shenandoah Life - Receivership Documents


Wish I could change my policy, but kidney failure is a knockout punch.

Russ,
As of right now, I would leave my mother with Shenandoah. Claims are being paid.

The notification to policyholders started going out Tuesday or Wednesday. It is going to be very confusing to them, as to what is going on. There are 38 total pages, and no policyholder is going to read and/or understand the total picture. Shenandoah is not in charge, the regulators are.

I believe the worst case scenario, if liquidation occured (God Forbid), is that the state would sell off blocks of business and the policyholders would be left intact.

As of right now, we are suggesting our locally written policies do nothing. The regulators would take a very dim view of agents wholesale replacing the existing policies. If clients insist on changing, we are creating an internal form that basically says the replacement is at the clients request.

 

[Russ]

Russ,
As of right now, I would leave my mother with Shenandoah. Claims are being paid.

The notification to policyholders started going out Tuesday or Wednesday. It is going to be very confusing to them, as to what is going on. There are 38 total pages, and no policyholder is going to read and/or understand the total picture. Shenandoah is not in charge, the regulators are.

I believe the worst case scenario, if liquidation occured (God Forbid), is that the state would sell off blocks of business and the policyholders would be left intact.

As of right now, we are suggesting our locally written policies do nothing. The regulators would take a very dim view of agents wholesale replacing the existing policies. If clients insist on changing, we are creating an internal form that basically says the replacement is at the clients request.

I wouldn't leave my mother with Shenandoah on a med-supp. Possibly waiting months to pay claims if the company is liquidated and turned over to a guaranty association.

I wouldn't leave my term-life policy with Shenandoah, if I had the choice. Having my wife possibly wait months to pay a death claim if the company is liquidated and turned over to a guaranty association.

I've read up enough on delays in paying claims.
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It does not matter if you are contacting your customers or helping them find other products or companies.

Other agents are already working on your clients. The question is do you wish to stay in the loop or not?

I think it is important to contact your clients to at least reassure them or see if you can answer any questions they may have.

What do you tell the client that bought a 1,000,000 policy and wants to know if the company goes under, will they still pay his death claim?

I would change them ASAP.

I read an article this morning on the AIG situation The Associated Press: Insurance giant AIG facing possible breakup They need money...their trying to sell off some of their companies and can't do it.....

from the article......


"The company may also need another loan, its fourth, from the government as it is expected to report a $60 billion fourth-quarter loss Monday.
AIG has been forced to seek more help because of a combination of factors including the recession and its falling stock price, now well under $1. Perhaps its biggest problem is the asset sales that were supposed to help the company pay back government loans aren't happening, in part because the credit crisis that initially landed AIG in trouble last summer is also preventing would-be buyers from getting financing.
"If companies actually have cash, or the ability to make a purchase, they are not jumping on AIG right now," said Donn Vickrey, an analyst with Gradient Analytics Inc. "The prudent thing for (companies) to do is just say 'no' at this point unless it's just an insanely cheap price."
That advice doesn't bode well for AIG, which said in October it would sell off business units to repay an original $85 billion loan from the Federal Reserve that it received a month earlier. The loan was reduced to $60 billion in November as part of the larger restructured rescue package totaling $150 billion; it had roughly $38 billion outstanding as of this week.
As of Feb. 13, AIG had already sold interests in nine businesses. But it needs to sell more.
"In ordinary times, the sale of these assets would have been relatively easy," said Bob Hartwig, president of the Insurance Information Institute, a New York-based industry group. "The inability to sell the assets today appears to be more of a function of the inability to finance the deals as opposed to interest in purchasing many of these assets."
According to analysts, AIG has been unable to solicit bids for some of its top units, including American Life Insurance, AIG's U.S. life insurance operation; American International Assurance, Asia's largest life insurer; International Lease Finance Corp., AIG's aircraft leasing subsidiary; and a broker-dealer operation called AIG Advisor Group.
The lack of interest can be seen in the company's stock price. Shares of AIG fell 10 cents, or 19 percent, to 42 cents Friday. Shares are down 96 percent since its first bailout was announced."
.............


there's your reason, I think, for OneAmerica backing out on Shenandoah....""" "The prudent thing for (companies) to do is just say 'no' at this point unless it's just an insanely cheap price.""""....

from what I've read, Shenandoah was needing more money then their original offer. Who would buy Shenandoah if they won't buy a company that's still operating, like AGI is offering?

 

[berferd]

Shenandoah agents: write me. Solid company top commissions, help with lead cost.
[email protected]

 

[insuranceexec]

Shenandoah agents: write me. Solid company top commissions, help with lead cost.
[email protected]

What are you offering?

 

[Joe Moore]

Someone will eventually put up this article, so here it is: Shenandoah Life could ax free trips for agents - Roanoke.com

With the noise made over AIG's trips, this is probably of prime interest to the public...about Shenandoah's trips. They have been great to motivate production and the agents love them. They have done a great job planning them, and they have been probably the best trips in the industry.

My understanding was the Spain trip was canceled, but from Don Beatty's statement, it raises the possibility of it being still on. My son, Greg, and his fiancee (were/are)? going on it.

 

[Russ]

I had a policy on my wife's son with Shenandoah Life that I have replaced. I took the policy off of PAC with Shenandoah Life on February 23rd(one week ago). I've already gotten a premium notice from Shenandoah(in today's mail).

What I and apparently all of the policyholders I've got with Shenandoah Life haven't gotten, is any correspondence from them about them being in receivership...that happened on February 12th. I understand they have a period of time to notify policyholders, but it's their right to know.

 

[Joe Moore]

I had a policy on my wife's son with Shenandoah Life that I have replaced. I took the policy off of PAC with Shenandoah Life on February 23rd(one week ago). I've already gotten a premium notice from Shenandoah(in today's mail).

What I and apparently all of the policyholders I've got with Shenandoah Life haven't gotten, is any correspondence from them about them being in receivership...that happened on February 12th. I understand they have a period of time to notify policyholders, but it's their right to know.

Russ,

Shenandoah Life personnel is not operating Shenandoah Life. The State of VA is running Shenandoah Life. The way I understand it, any correspondence coming out of Shenandoah has to be approved by the receiver and notification of the receivership has to come from the receiver.

Joe

 

[Russ]

Russ,

Shenandoah Life personnel is not operating Shenandoah Life. The State of VA is running Shenandoah Life. The way I understand it, any correspondence coming out of Shenandoah has to be approved by the receiver and notification of the receivership has to come from the receiver.

Joe

I should have realized that.

I checked with the VA. Dept. of Insurance website. The only thing listed is the takeover letter that was linked on Shenandoah's website when this started. I'm sure the notices will be coming in the mail shortly.

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I google searched who notifies policyholders and found this from the Texas Dept. of Insurance If My Insurance Company Fails from the Texas Department of Insurance...."If your company is out of state, or you are not a Texas resident, the appropriate state's guaranty association or SDR will notify you."

SDR is Special Deputy Receiver. Either that person or my states guaranty associatation(in my case, Florida), will notify policyholders.