Another Lindberg?

[rats0001]

The silent partner behind 777’s buying spree

Loans from a U.S. insurance outfit have been funding 777’s investments in sports, aircraft, and complex financial products. Some of the money was used to buy a Miami condo for the insurer’s CEO.

www.semafor.com

 

[scagnt83]

Wow. Sure sounds like it.

 

[Allen Trent]

Atlantic Coast Life & Sentinel Security Life, correct?

B++ rated carrier with negative outlook.......but top end of the offered interest rates.

Hopefully consumers & agents were doing their due diligence before chasing rate & commission for a lower rated carrier

 

[rats0001]

Right, that's what I read

 

[goillini52]

Atlantic Coast Life & Sentinel Security Life, correct?

B++ rated carrier with negative outlook.......but top end of the offered interest rates.

Hopefully consumers & agents were doing their due diligence before chasing rate & commission for a lower rated carrier

And by the time you add any riders (that are baked in with some carriers), that % isn't as high

 

[Sheryl J Moore]

Just spoke with an RIA whose B/D had these carriers on their "approved list." Note that the B/D is owned by the FMO. It is important to note that although agents perceive that their distributor should be doing due diligence on carriers/products, the distributors have communicated with me that they have "zero liability" on the due diligence of carriers/products. :/

 

[Allen Trent]

Just spoke with an RIA whose B/D had these carriers on their "approved list." Note that the B/D is owned by the FMO. It is important to note that although agents perceive that their distributor should be doing due diligence on carriers/products, the distributors have communicated with me that they have "zero liability" on the due diligence of carriers/products. :/

seems like that was also the Banks position on the issue of Colorado Bankers too.

Last I had heard was that current MYGA rates were running .5% to 1% higher crediting than they likely should be based on historical traditional investments allowed. But because so much is involving offshore reinsurers in recent years, those offshore reinsurers are investing in more aggressive investments that wouldnt traditionally be allowed.

no idea how true that is, but it would make some sense if newer carriers or subsidiaries of others were looking to grab market share & growth.

 

[Sheryl J Moore]

That is true from what I have read. What a scary time to be an independent insurance agent!

 

[Allen Trent]

That is true from what I have read. What a scary time to be an independent insurance agent!

and a bit scary if you are a carrier not involved in this stuff as they will be getting the assessments from the Guaranty Associations, but getting criticized by agents & consumers about "why are you not paying more interest or commission"

I thought the new DOL fiduciary rule did put some responsibility on the upline of an agent, so I wonder if that will impact an FMO/IMO or agency in having some higher responsibility going forward

 

[Sheryl J Moore]

The DOL's rule SUGGESTED that carrier due diligence could help FMOs to grow their revenue, should they see that as an opportunity, but it definitely does not assign the FMO any responsibility in that regard. Bottom line: agents are responsible for the carriers and products that they propose.