INSURANCE

Indianapolis-based insurance giant OneAmerica announced July 17 that it appointed two native Hoosiers to fill high-profile positions.

Jennifer Pittman was promoted to assistant vice president for community affairs, replacing 27-year OneAmerica veteran Jim Freeman after his May retirement.

Pittman will report to Kelly Huntington, who is senior vice president of enterprise strategy. Pittman's former position, public relations director, is now held by Lou Ann Baker, who's new to the OneAmerica team.

Pittman's and Baker's experience in strategic communications and public affairs date back to the 2000s and 1980s, respectively.

Among other public- and private-sector roles, Baker served as director of communications in the office of former Indiana Lt. Gov. Sue Ellspermann, and Pittman served as director of marketing in the office of fonner Indianapolis Mayor Greg Ballard.

"We've been committed to community engagement throughout our 140-year history," Scott Davison, OneAmerica's chairman, president and CEO, said in prepared remarks. "By filling these two key outreach roles with local leaders, we will further our connections to nonprofit and civic organizations that strengthen our hometown."

A federal appeals court sided with Ameritas Life Insurance Corp. on Thursday in affirming a lower-court ruling that a $4 million life insurance policy purchased on a New Jersey retiree was an illegal stranger-originated life insurance arrangement.

The Court of Appeals for the 8th Circuit affirmed summary judgment in favor of Ameritas, rejecting claims brought by Wells Fargo Bank as securities intermediary for Vida Longevity Fund, which had acquired the policy years after it was issued.

“[Z]ero evidence indicates that the representations Wells Fargo relies on are true,” wrote Judge Bobby E. Shepherd, writing for the three-judge panel.

The decision continues a summer winning streak for life insurers in stranger-originated life insurance, or STOLI, cases. In June, the 3rd Circuit affirmed summary judgment in favor of Lincoln National Life Insurance Co., rejecting investor claims involving two life policies worth a combined $8 million.

Both the Ameritas and Lincoln cases originated in New Jersey. Applying New Jersey law, the courts concluded the policies were classic STOLI arrangements because investors with no insurable interest were the intended beneficiaries from the outset.

New Jersey law and the state's Supreme Court have consistently held that STOLI arrangements violate public policy and are void from inception.

Wells Fargo could not be reached for comment. Ameritas declined to comment.

2008 life policy

The Ameritas-Wells Fargo dispute concerns a $4 million policy issued in 2008 on the life of Jerry Freid, a retired New Jersey resident who died in 2020. Vida sought to collect the death benefit after purchasing the policy as part of a portfolio of life insurance contracts.

Ameritas, which succeeded the original issuer, refused payment, arguing that the policy was void from its inception because it was created as part of a STOLI scheme.

The appeals court agreed that the evidence overwhelmingly showed the coverage was procured not for legitimate estate planning, but to benefit investors lacking an insurable interest in Freid's life.

"The summary judgment record does not permit a reasonable trier of fact to conclude that the Policy was anything other than STOLI," Shepherd wrote.

The policy originated with insurance producer Michael Binday, who operated a brokerage business that federal prosecutors later alleged orchestrated a widespread STOLI scheme. Binday and insurance agent James Kevin Kergil were convicted in 2013 of mail fraud, wire fraud and conspiracy after a jury found they had deceived insurers by arranging policies for seniors that were intended to be sold to investors after contestability periods expired.

According to the opinion, Binday recruited seniors who had little need for large life insurance policies, obtained life expectancy reports for potential investors, and created trusts to own the policies before arranging premium financing through an entity known as HM Ruby.

The financing structure eliminated virtually all financial risk for insureds by allowing the policies to satisfy the loans if they were not repaid. The court said HM Ruby expected the policies to be transferred to investors rather than retained for estate planning purposes.

'Laughed out loud'

Freid was 72 when the policy was issued and had a net worth of no more than about $500,000, court documents say. He rented his home and could not afford the policy's $177,000 annual premium. Yet the insurance application represented that his net worth exceeded $4.4 million.

When  Freid's daughter, who later administered his estate, heard the $4.4 million figure, she "laughed out loud," court documents say.

Vida ultimately acquired the policy despite internal due diligence describing the portfolio as perhaps “the worst overall block [it] had ever looked at,” and characterizing the HM Ruby-financed policies as "premium finance loan-to-own" business, court documents say.

On appeal, Wells Fargo argued that Florida law should apply because the trust's trustee may have signed the application there. The court rejected that argument, ruling that the policy's "conformity with laws" provision was not a choice-of-law clause and that New Jersey had the most significant relationship to the transaction because Freid lived there, the application and policy were prepared on New Jersey forms, and all parties expected New Jersey law to govern.

The decision leaves intact the district court's dismissal of Wells Fargo's breach of contract and bad-faith claims.

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OLDWICK, N.J.--(BUSINESS WIRE)-- AM Best has removed from under review with positive implications and upgraded the Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) to “a” (Excellent) from “a-” (Excellent) of the operating subsidiaries of The Fortegra Group, Inc. (Fortegra) (headquartered in Jacksonville, FL). Fortegra is a wholly owned subsidiary of DB Insurance Co., Ltd. (DBI). The property/casualty (P/C) operating subsidiaries of Fortegra include Lyndon Southern Insurance Company (Wilmington, DE); Insurance Company of the South (Athens, GA); Response Indemnity Company of California (Redondo Beach, CA); Blue Ridge Indemnity Company (Wilmington, DE); Fortegra Specialty Insurance Company (Scottsdale, AZ); and Fortegra Europe Insurance Company SE (Malta). These companies are collectively referred to as Fortegra P&C Group.

In addition, AM Best has removed from under review with positive implications and upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICRs to “a” (Excellent) from “a-” (Excellent) of Fortegra Belgium Insurance Company NV (FBIC) (Belgium), Fortegra Insurance UK Ltd. (FIUK) (United Kingdom), and Fortegra Indemnity Insurance Company, LTD. (Fortegra Indemnity) (Turks and Caicos), respectively.

Furthermore, AM Best has removed from under review with positive implications and upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICRs to “a” (Excellent) from “a-” (Excellent) of Fortegra’s life/health operating subsidiaries, which include Life of the South Insurance Company (Athens, GA); Bankers Life Insurance Company of Louisiana (Marksville, LA); and Southern Financial Life Insurance Company (Scottsville, KY). These companies are collectively referred to as Life of the South Group. The outlook assigned to the aforementioned Credit Ratings (ratings) is stable.

The rating actions follow the completion of DBI’s acquisition of Fortegra on May 29, 2026, and AM Best’s evaluation of parental support and integration plans. The upgrades reflect rating enhancement based on Fortegra’s strategic importance to DBI and the anticipated financial and operational benefits of ownership by a larger, higher-rated insurance organization. DBI is one of South Korea’s leading non-life insurers and has an FSR of A+ (Superior) and a Long-Term ICR of “aa-” (Superior), with stable outlooks. Fortegra is expected to provide DBI with geographic and product diversification, advance its international growth strategy, and strengthen its long-term positioning across international insurance markets. AM Best expects Fortegra to benefit from DBI’s financial flexibility and operating scale, if needed.

The ratings of Fortegra P&C Group reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM). Fortegra P&C Group’s balance sheet strength is supported by its risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), a conservative investment portfolio, solid liquidity, and a robust reinsurance program. These favorable factors are offset partially by the group’s dependence on third-party reinsurance for capacity and loss reserve volatility. The group’s adequate operating performance reflects a track record of profitable underwriting and positive operating earnings, complemented by investment income. The group’s neutral business profile reflects solid geographic and product diversification. ERM is considered appropriate for the group’s risk profile and is supported by a formalized process for risk identification, monitoring, and mitigation.

The ratings of Life of the South Group reflect the group’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings also recognize the life group’s strategic role within the consolidated organization as the provider of credit life and accident and health products. Life of the South Group’s balance sheet strength is supported by its risk-adjusted capitalization at the strongest level, as measured by BCAR, steady profitability, and growth in absolute capital. The group maintains a conservative bond portfolio and highly liquid investment profile. These factors are offset partially by elevated reinsurance leverage and increased investment risk exposure in recent years. Operating performance continues to benefit from profitable results in the group’s core credit life and accident and health businesses.

The ratings of Fortegra Indemnity reflect the company’s balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate ERM. The ratings also recognize Fortegra Indemnity’s strategic role within the consolidated organization as a captive reinsurer that facilitates intragroup reinsurance and supports the group’s risk management and capital flexibility.

The ratings of FBIC reflect the company’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate ERM. The ratings of FIUK reflect the company’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate ERM. FBIC’s and FIUK’s ratings also reflect their strategic importance as platforms for growth and expansion in Europe focusing on specialty P/C business.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Yizhou Hong
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Valentine Gu, AAG
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Christopher Sharkey
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Al Slavin
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Source: AM Best