Globe Life/AIL Accused of Massive Fraud

[Tahoe Ray]

Their stock absolutely tanked today:

Globe Life (GL): Executives Disregarded Wide-Ranging “Insurance Fraud” While They Received Millions in Undisclosed Kick-Back Scheme - Fuzzy Panda Research

Globe Life (GL) is an $10 billion Life and Health Insurance Company that sells policies through multiple subsidiaries. The biggest subsidiary is American Income Life (AIL), which accounts for 39% of total premiums; and 50% of total underwriting profits. We uncovered extensive allegations of...

fuzzypandaresearch.com

 

[goillini52]

Their stock absolutely tanked today:

Globe Life (GL): Executives Disregarded Wide-Ranging “Insurance Fraud” While They Received Millions in Undisclosed Kick-Back Scheme - Fuzzy Panda Research

Globe Life (GL) is an $10 billion Life and Health Insurance Company that sells policies through multiple subsidiaries. The biggest subsidiary is American Income Life (AIL), which accounts for 39% of total premiums; and 50% of total underwriting profits. We uncovered extensive allegations of...

fuzzypandaresearch.com

Damn, Globe sure changed since I was there. They started going downhill when Torchmark bought them.

 

[rmhaire]

Their stock absolutely tanked today:

Globe Life (GL): Executives Disregarded Wide-Ranging “Insurance Fraud” While They Received Millions in Undisclosed Kick-Back Scheme - Fuzzy Panda Research

Globe Life (GL) is an $10 billion Life and Health Insurance Company that sells policies through multiple subsidiaries. The biggest subsidiary is American Income Life (AIL), which accounts for 39% of total premiums; and 50% of total underwriting profits. We uncovered extensive allegations of...

fuzzypandaresearch.com

Got a call this morning from one one of their recruiters. Trying to get me to sell their medicare supplements. He didn't mention this.

But don't worry. Give me a few days to contract with them and then I'll get their stock back up.

 

[scagnt83]

Holy crap. That is crazy. 60% of revenue came from fraudulent sales...

 

[shonceman]

I live very near the Globe Life's home office. I believe they're the largest employer in the city. Since they're local, I've talked with recruiters from a couple of their subsidiaries before. It just never ended up being a good fit for me.

I sometimes come across their Liberty National agents in my debit neighborhoods. They used to be a home service company, so it makes sense that they'd still have business in those areas. But I've never uncovered any unethical behavior from them. I've also never heard anything negative about United American from any of my clients that had a med supp with them.

However, I have occasionally run into shady stuff from an AIL agent. I just assumed that said more about the agent or manager than it did about the whole company.

I just hope the offending parties can be dealt with, and the situation corrected without taking down the entire operation.

 

[Cenla Agent]

I live very near the Globe Life's home office. I believe they're the largest employer in the city. Since they're local, I've talked with recruiters from a couple of their subsidiaries before. It just never ended up being a good fit for me.

I sometimes come across their Liberty National agents in my debit neighborhoods. They used to be a home service company, so it makes sense that they'd still have business in those areas. But I've never uncovered any unethical behavior from them. I've also never heard anything negative about United American from any of my clients that had a med supp with them.

However, I have occasionally run into shady stuff from an AIL agent. I just assumed that said more about the agent or manager than it did about the whole company.

I just hope the offending parties can be dealt with, and the situation corrected without taking down the entire operation.

Most of the clients of Bernie Madoff and SBF weren't aware of any unethical behavior from them either.

 

[scagnt83]

There is zero way to know if an agent or agency is unethical, unless you are in the room with them during the sale.

But if you read the article, they forged signatures, wrote policies on dead people, re-used banking info without permission, re-wrote policies without consent using forged signatures.

This was an agency level problem, as much as it was an agent level problem.

And there is zero way HO did not know. They were literally forging the books because of it.

 

[Allen Trent]

There is zero way to know if an agent or agency is unethical, unless you are in the room with them during the sale.

But if you read the article, they forged signatures, wrote policies on dead people, re-used banking info without permission, re-wrote policies without consent using forged signatures.

This was an agency level problem, as much as it was an agent level problem.

And there is zero way HO did not know. They were literally forging the books because of it.

Guess some of these only happen because commission in year 1 exceeds premium. Honestly never quite understood building in that incentive instead of paying high year 2 amounts so carrier pays same to producer, but doesn't create incentive to pay premiums or fake applications

 

[marindependent]

"Fictitious Bank Accounts used to Fund Numerous Fake Policies, so Agents hit their bonuses." Wow! That is not a marginal case of fraud.

"60% of AIL's 2023 new ALP came from sales teams known to be rife with bad actors. " holy cow!

"Our Analysis indicate Globe Life and AIL's MLM structure borders on an illegal Pyramid Scheme in Multiple States." Really?

"Undercover Agents Offered Cash & Cocaine* During Verbatim Explanation of What We Believe to be an Illegal Pyramid Scheme"
That explains it

"Sales teams that engaged in insurance fraud grew new ALP at a ~16% per year....The Clean & Non-questionable teams have DECLINED at a -0.5%"
Not Surprising

"Warren Buffett Dumped the Stock" Case Closed

Thanks for the share @Tahoe Ray

 

[WinoBlues]

Aren't these the guys who said they were from the Union and had free insurance for Union members?

I always wondered who they got the member's name and contact info from, and who got paid.