Whats the story on Chesapeake Life ??

Sep 4, 2008

  1. MacCrazy
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    MacCrazy New Member

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    Did the NASE and Mega agents hang them with some bad paper??
     
  2. OBI Texas
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    OBI Texas Expert

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    I know they were fined in July $20 million.
    Last I heard they were dropping their MA plans after one year. I was told this was because of some drastic changes to PFFS structure by CMS. So instead of conforming, they just bailed. Haven't heard about these changes anywhere else, though. I was with MEGA last year when they tried their hand at MA's. It was nothing but a big mess.
     
  3. Mark
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    Mark Guru

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    This is the memo that I got and is on their website. Hope this explains it.

    September 8, 2008
    All Chesapeake Life Agents:Recently we informed you about the sale of the HealthMarkets Life Insurance Operations to Wilton Re, of Wilton, CT. A review of the Life Insurance products offered by Chesapeake Life has been completed, and we wish to share with you the resulting business decisions.
    The Life Insurance Operations will continue to underwrite and issue The Chesapeake Life Whole Life Final Expense product portfolio. We will continue to accept new business and support this market for the future.
    A decision has also been made to no longer accept Term Life and Universal Life business. Therefore, as of October 31, 2008, Chesapeake Life will no longer accept any new life insurance applications for Term and UL business. All applications received in our office in Oklahoma City on or before October 31, 2008 will be underwritten, processed and full commissions will be paid as usual.
    Additionally, any application for Term or UL products received by Chesapeake Life in our office in Oklahoma City on or before the October 31, 2008 date will be allowed a full 30 days to be underwritten and issued, if possible. Any applications not able to be underwritten and processed during this 30 day period will be returned to the agent as “incomplete” to allow the agent to place this business with another life insurance carrier.
    While we regret that these Term Life and Universal Life products will no longer be offered, we hope these stated time frames will allow you to complete any pending sales activity you have in process.
    Of course, all new and renewal commissions will continue to be paid in accordance with your agreement. We thank all the agents who have produced business over these past years, and we want to assure you that your life insurance clients will continue to be serviced with the level of quality they have come to expect from us.
    Sincerely yours,
    Bob Thomas
    Vice President
    Chesapeake Life Insurance Company
     
    Mark, Oct 23, 2008
    #3
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