Shenandoah Life Sales Suspended

[insuranceexec]

I'm glad I only have a small amount of business with them. But have already started getting calls. The fact that most states only cover up to $100,000 on state guarantee funds is what scares me. Had a client call last night he and his wife each have a $500,000 term plan. He told me point blank I want to switch. I would do the same thing if I was in his shoes. Others have small FE plans and now have health issues I told them you should stay put. Figure I should look at things from a case by cases basis and do right by the client.

I would draft up some sort of "non-solicitation letter" and have the client sign it. Just a little food for thought.

 

[walleyeb1]

Yes, Iwas thinking along the same lines. I'm going to come up with some sort of sign off document that this was done at their request.

 

[insuranceexec]

Yes, Iwas thinking along the same lines. I'm going to come up with some sort of sign off document that this was done at their request.

You mean like a "non-solicitation letter."

 

[Joe Moore]

You mean like a "non-solicitation letter."

The one Medicare Supplement I have replaced, I put on the Replacement Form Reason: "Client insisted on moving out of Shenandoah Life Medicare Supplement, due to receivership of Shenandoah Life".

Sometimes the agent is in a Catch 22 situation, and a C.Y.A. (Cover Your A**) is in order.

 

[insuranceexec]

The one Medicare Supplement I have replaced, I put on the Replacement Form Reason: "Client insisted on moving out of Shenandoah Life Medicare Supplement, due to receivership of Shenandoah Life".

Sometimes the agent is in a Catch 22 situation, and a C.Y.A. (Cover Your A**) is in order.

I would have to agree. "C-Y-A all the WAY" is what my first manager told me........

 

[Mark]

How long do you think it will take for the INS Dept to know if they can save Shenandoah or what to do next?

I mean, they have to come up with some type of a long term game plan soon right?

Could this go on for a long time or what?

 

[Russ]

How long do you think it will take for the INS Dept to know if they can save Shenandoah or what to do next?

I mean, they have to come up with some type of a long term game plan soon right?

Could this go on for a long time or what?

This could go on for months. Standard Life, which is a company Joe Moore has provided links to on this thread, has been in receivership since before Christmas.

I use to write for First National Life out of Montgomery,AL.. They went into receivership and it took months for it to settle.....

"Company Overview
First National Life Insurance Company (FNLIC), was domiciled in Alabama and licensed in 28 states. FNLIC was a wholly owned subsidiary of American Life Assurance Corporation (ALAC), and sold primarily accident and health insurance. In 1996, the company consented to receivership for the purpose of rehabilitation. During rehabilitation, the receiver transferred the Medicare supplement business to American Pioneer Life Insurance Company through an assumption reinsurance transaction. All remaining business was then canceled. The company was ordered liquidated in August 1997.
"

 

[Joe Moore]

Maybe this is telling us why OneAmerica pulled out of the merger:

OneAmerica Cuts More Than 100 Jobs - Money News Story - WRTV Indianapolis

OneAmerica trims 101 jobs here | IndyStar.com | The Indianapolis Star

Thanks to Kathy121 for providing this info to me.

Interesting comment in one of the news articles:

Replying to :

Dayton H. Molendorp, CEO of OneAmerica, eliminated 114 jobs and still gets a big fat bonus for saving the corporation. ​

Molendorp is indeed a piece of work. But "saving the corporation"?

Like he "saved" Fort Wayne's now defunct MSL by shoving 300 employees (NTM 1000s of policyowners) under the bus he used to drive its sales agents to AUL - where he had feathered HIS personal nest?

Like November last, as King Ralph (DM could body-double for John Goodman) touted a disastrous scheme to buy Shenandoah Life?

"This proposed merger would bring together two historically strong companies …" blathered Chairman M. Yet, before Thanksgiving, authorities pronounced DM's "Shenandoah Turkey" fiscally unfit for consumption.

Thanks to Molendorp Management, OA's employees may indeed be in trouble ... its policyowners may be victims of overstated, underperforming illustrations.

But smart money says DM is sure to land on his big, fat feet under a parachute of gold.

 

[Russ]

I dreamed....yes....I actually had a dream last night that Shenandoah came out of receivership. Dreaming about an insurance company.


Agree that those links provide possible details as to why OneAmerica backed out. Looks like their suffering too and taking on another company that may be on life-support isn't wise.

I wonder if Shenandoah has eliminated any jobs...yet?

 

[Joe Moore]

Bailout being considered?

After AIG: Which Insurer Is Next in Line for a Federal Handout? -- Seeking Alpha