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P/C Broker Gallagher Widens Retirement Practice Into IMO Space

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The indexed universal life insurance market is apparently too lucrative for Arthur J. Gallagher & Co. to ignore.

Arthur J. Gallagher & Co. acquired Partners Advantage Insurance Services and AMZ Financial Insurance Services on Jan. 28. The move marked the first substantial entry by Gallagher into the independent marketing organization channel of insurance distribution.

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After working through some challenges related to regulation, capital flow and underwriting, the life settlements industry is coming off another year of growth in 2018 and seems poised to remain on that steady growth trajectory.

Analytics are crucial to the future of life insurance and every carrier is in an arms race to get a 360-degree view of the people they serve or want to serve. The more data that is collected about a customer base, the better job insurers and agents can do in reaching those customers.

Traditionally, customers buying insurance products and financial services have had little or no voice in the purchasing cycle. Up until now, this approach has enabled carriers to retain business, despite the plethora of offerings in the marketplace. That is changing — and fast.

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A Baton Rouge man allegedly stole money meant to buy life insurance for firefighters.

An accountant from Baton Rouge stole roughly $2 million that the historically troubled New Orleans Firefighters Pension and Relief Fund gave to him to invest in life insurance policies — and then used the money to gamble, finance home improvements and pay off debts, federal prosecutors allege.

At its annual all-company meeting, Securian Financial announced solid preliminary 2018 financial results, including year-over-year increases in total sales, top-line revenue and earnings. “In 2018, Securian Financial achieved strong financial performance while significantly advancing our strategic priorities and increasing our community…
Yolie Aleman-Rodriguez has been with State Farm for 26 years and is a qualifying MDRT member.

The average American will hold at least eight jobs during their lifetime and the term life insurance benefit provided will most likely also terminate when the decision to part ways is made. Because of this, it is important to separate the employment insurance from personal insurance.

Allianz Life Insurance Company of North America today announced its 2018 financial results, with assets under management rising to $138 billion and total premium reaching $12.7 billion, 16 percent higher than 2017. Allianz Life’ s operating profit topped $1 billion for the third year in a row, reaching slightly more than $1 billion. In 2018, the company paid…

Feb. 15– A Williamsville man who admitted he used his dead brother to defraud a trade union of worker benefits was sentenced Thursday in federal court to serve two years of probation– including six months of detention– and ordered to perform 100 hours of community service, according to the U.S. Attorney’s Office. Prosecutors said 61- year-old Timothy McCluskey,…

The Securities and Exchange Commission issued the following news release:. The Securities and Exchange Commission today announced that it is extending for one month the comment period on the proposed rulemaking to amend rules and forms to help investors make informed investment decisions regarding variable annuity and variable life insurance…

American International Group, Inc. today reported a net loss of $622 million, or $0.70 per share, for the fourth quarter of 2018, compared to a net loss of $6.7 billion, or $7.33 per share, in the prior-year quarter. “Our fourth quarter 2018 results showed positive improvements in General Insurance, reflecting actions we took throughout the year to re-position and…
Long-term care insurance is proving problematic for both insurers and consumers.

With its LTC rider, SmartCare arrives at the intersection of two key retirement trends: rising costs of long-term care and increasing life expectancies. It is estimated that 50 percent of Americans turning 65 today will require some form of long-term care, with average lifetime long-term care expenses of $266,000, Brighthouse noted.
The National Association of Insurance Commissioners creates model laws for states to pass.

A National Association of Insurance Commissioners’ subgroup had disagreement today during its first conference call today on IUL illustrations. The issue is whether IUL multipliers are fooling consumers into under-funding policies, or an appropriate risk-reward option.

The number of Bermuda- based companies in the sector, which provides global coverage of life, annuity and pension products, more than doubled in 2018, compared to the previous year. A total of 15 new long-term companies were licensed in Bermuda last year, compared to six registrations in 2017— marking the greatest year-on-year growth across all insurance…

Leslie Chance, 52, faces a life term in prison if convicted of the first-degree murder charge filed against her. Chance was first arrested days after the body of Todd Chance, 45, was found the morning of Aug. 25, 2013, in a field off a dirt section of Noriega Road near Enos Lane. She then abandoned the car in a southwest Bakersfield neighborhood before getting home by…

AM Best has downgraded the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb” from “bbb+” and affirmed the Financial Strength Rating of B++ (Good) of EquiTrust Life Insurance Company (EquiTrust).
The National Association of Insurance Commissioners creates model laws for states to pass.

A National Association of Insurance Commissioners’ subgroup will resume discussions Tuesday on controversial indexed universal life illustrations. The group is expected to discuss how to illustrate products with different attributes, and whether to consider capping the credited rate.
A class-action lawsuit over allegations of improperly raised insurance premiums could be settled for $3 million.

A Wisconsin-based insurance company and a credit union have agreed to pay $3 million to settle allegations that they improperly raised insurance premiums associated with 4,461 loans. The proposed settlement, which is scheduled to be considered by a judge later this month, would resolve an eight-year-old class action lawsuit.
Life insurance is playing a role in a homicide.

A Florida woman convicted of helping mastermind the killing of her husband nearly two decades ago has been sentenced to life in prison. Prosecutors say Denise Williams plotted the killing of her husband in a scheme to get a $1.75 million life insurance payout.

_ MetLife Inc. on Wednesday reported fourth-quarter net income of $2.07 billion. The New York- based company said it had net income of $2.04 per share. For the year, the company reported profit of $5.12 billion, or $4.91 per share.
Life settlements are expected to continue to grow in 2019.
Exclusive

After working through some challenges related to regulation, capital flow and underwriting, the life settlements industry is coming off another year of growth in 2018 and seems poised to remain on that steady growth trajectory.

_ Lincoln National Corp. on Wednesday reported fourth-quarter net income of $387 million. The Radnor, Pennsylvania- based company said it had profit of $1.80 per share. Lincoln National shares have climbed 15 percent since the beginning of the year, while the Standard& Poor’s 500 index has risen 9 percent.

American Equity Investment Life Holding Company, a leading issuer of fixed index annuities, today reported fourth quarter 2018 net income of $53.8 million, or $0.59 per diluted common share, compared to net income of $36.8 million, or $0.41 per diluted common share, for fourth quarter 2017. For the year ended December 31, 2018, net income was $458.0 million, or…
Collecting and using more data can be a huge help to getting more people covered by life insurance.
Exclusive

Analytics are crucial to the future of life insurance and every carrier is in an arms race to get a 360-degree view of the people they serve or want to serve. The more data that is collected about a customer base, the better job insurers and agents can do in reaching those customers.

Feb. 06– ST. JOSEPH– The jury hadn’t even taken their seats yet and John Lewis became overwhelmed with emotion as his murder trial was about to begin. As Berrien County Trial Court Judge Gordon Hosbein began to swear in the 14 jurors, Lewis wiped tears from his face. Tuesday was the first day of trial for Lewis, charged with premeditated murder in the Aug. 13, 2017, death of…
A West Virginia woman is accused of fatally stabbing her husband for the life insurance proceeds.

A trial date has been set for a woman accused of fatally stabbing her husband, who she said fell on a letter opener, before quickly attempting to receive money from his life insurance policy in 2017. Jennifer Lynn Via, 49, was charged with murder 10 days after she called 911 on Nov. 4, 2017, to report her husband, Thomas Via, had been stabbed in the back.

–CNO Financial Group, Inc. announced today the appointment of Cheryl L. Heilman to the position of vice president and president of Bankers Life Securities, Inc. and Bankers Life Advisory Services, Inc.. She will report to Scott Goldberg, president of Bankers Life and Casualty Company. CNO Financial Group, Inc. is a holding company.

Securian Financial has launched Value Protection Indexed Universal Life, a low-cost, protection-focused indexed universal life insurance policy with a built-in no-lapse guarantee. A leading accumulation-focused IUL carrier since it entered the market in 2006 1, Securian Financial is expanding its IUL portfolio and planting a flag in the protection…
Senators on the left and right are leery of another government shutdown.

Sen. Bernie Sanders, I-Vt., is proposing legislation to eliminate the estate tax. Called the For the 99.8% Act, it would raise $2.2 trillion from the nation’s 588 billionaires. The proposal comes two days after Senate Republican leadership proposed a bill to repeal the estate tax.

The deadline for Genworth Financial Inc.’ s proposed $2.7 billion acquisition by a China- based investment company is being delayed yet again as the companies continue to seek regulatory approvals for the deal. Henrico County-based Genworth and China Oceanwide Holdings Group Co. Ltd. said late Wednesday that they have agreed to extend the deadline for the…
Life insurance coverage is sorely lacking in the United States, a new Atidot report finds.

New analysis finds that just 26 percent of the total life insurance coverage needed is being met. The result is $70 billion in lost premiums for the industry. The report found that insurance companies are missing out on an average of $785 in annual life insurance premium payments per person who requires insurance coverage in the U.S.

Accenture has integrated RGA’ s AURA ® underwriting rules engine into the Accenture Life Insurance and Annuity Platform, making ALIP the first such platform to provide an out-of-the-box option. “Until now, underwriting time and capacity constraints have impeded the progress of fully underwritten and simplified-issue life insurance products,” said Patti…

MetLife will pay retroactive benefits to policyholders in New York State and elsewhere totaling more than $189 million. The insurer has already paid $123 million of the approximately $189 million to consumers whose group annuity benefits had been lost or delayed.
Exclusive

Traditionally, customers buying insurance products and financial services have had little or no voice in the purchasing cycle. Up until now, this approach has enabled carriers to retain business, despite the plethora of offerings in the marketplace. That is changing — and fast.

According to a new LIMRA Secure Retirement Institute study, 79 percent of American consumers are concerned about financial fraud with 36 percent saying they were very concerned. The report, Financial Fraud and Retirement Accounts: An Opportunity to Engage, Educate and Build Trust, noticed that levels of concern vary significantly across the different types…

Jan. 29– The stepmom of slain businessman Howard Pilmar said the victim’s wife– on trial for his murder after 23 years– was matter-of-fact when she called his father in Arizona with the tragic news. “She said Howard was the victim of a homicide,” Carol Pilmar told jurors on Monday at the Manhattan Supreme Court trial of Roslyn Pilmar, who is accused of plotting and…

Richard Dabate, the man accused of killing his wife in their Connecticut home in 2015, rejected a plea deal Thursday in Superior Court. Days after Connie Dabate’s killing, Richard Dabate attempted to claim more than $400,000 in life insurance, prosecutors allege.

AM Best has commented that the Credit Ratings of Protective Life Corporation and its insurance subsidiaries remain unchanged following the announcement that it has entered into a reinsurance agreement to acquire approximately $20.0 billion of life and annuity liabilities of insurance subsidiaries of Great-West Lifeco, Inc.. Under the terms of the…

The business to be transferred, which has been marketed under the Great-West Financial brand, includes bank-owned and corporate-owned life insurance, single premium life insurance, individual annuities, and a portion of Great-West’s closed block life insurance and annuities.

Accessible $25 K minimum face amount Consumer protection so premiums paid one month early or late will have no adverse impact to intended guarantee– avoids unnecessary catch-up premiums. 3,4 Predictable and convenient fluidless underwriting for up to $1 million in coverage for clients age 50– 69 Enhanced cash surrender value rider at no additional cost. 5.

Detroit Tigers first baseman Miguel Cabrera’s off-field fiasco has finally come to an end as a Florida judge has ordered him to pay $20,000 a month in child support to an ex-mistress he fathered two children with and pay off her nearly $1 million mansion by July.

LIMRA is expects U.S. individual life insurance sales to rise 3 percent to $15 billion this year. Growth will be primarily driven by gains in disposable income and bond rates, coupled with low unemployment, the research organization reports.

–AmeriServ Financial, Inc. reported fourth quarter 2018 net income of $1,928,000, or $0.11 per diluted common share. For the year ended December 31, 2018, the Company reported net income of $7,768,000, or $0.43 per diluted common share. Jeffrey A. Stopko, President and Chief Executive Officer, commented on the 2018 financial results: ” AmeriServ Financial achieved…

“With Bermuda’ s leadership position within this industry, it is paramount to have a strong presence at ReFocus to continue raising our profile and attracting further interest from prospective clients,” said Jereme Ramsay, Business Development Manager for Risk Solutions at the BDA.“ The content and audience offer a natural fit for Bermuda- based carriers and…

Some relatives of people whose cremated remains were found among hundreds in a Detroit funeral home say they would have loved to bury them in marked graves but couldn’t afford traditional funeral services. They’re among the many poor families in the U.S. who have been priced out of funerals and burials. Their stories help explain how two Detroit funeral homes now under scrutiny ended up having so many remains and why the families didn’t notice.

The IRS finalized a regulation Friday making clear that owners and shareholders of insurance agencies and brokerages organized as pass-through entities can fully benefit from a new tax deduction. Under the regulation, owners and shareholders of insurance agencies and brokerages can take up to a 20 percent tax deduction on qualified business income.

–Northwestern Mutual, a leading financial security company, announced today it has been named one of the “Best Employers for Diversity” for 2019 by Forbes magazine. “We’re honored to be recognized by Forbes for our efforts to build an inspiring, diverse and inclusive culture,” said John Schlifske, Northwestern Mutual chairman, president and CEO.

Jan. 16– MassMutual, which announced last year its departure from Enfield to Massachusetts, is selling its 435,000 square feet of office space on 66 acres. The real estate broker touts MassMutual’s proximity to Interstate 91 and Bradley International Airport and that it’s accessible to the Hartford and Springfield labor markets. Massachusetts Mutual Life…

This includes the PGA Championship, KPMG Women’s PGA Championship and KitchenAid Senior PGA Championship. VALIC representatives will be available to meet with PGA Members in the Member Business Center at next week’s 66 th PGA Merchandise Show in Orlando. “We are very pleased to have AIG as the Official Insurance Partner of the PGA of America and several of our…

About 50 defendants — Irish Travelers and their associates — charged in a four-year federal investigation into white-collar fraud schemes that cheated life insurers, financial firms, credit agencies, car dealerships, and the state and federal governments out of millions of dollars.

Jury selection will begin in Manhattan Supreme Court in the trial of Roderick Covlin, who was charged in November 2015 with strangling financial adviser Shele Danishefsky Covlin, the 47- year-old mother of their two kids, on New Year’s Eve 2009.. She was found lifeless in the bathtub inside her Upper West Side apartment by their then 9- year-old daughter Anna.
The National Association of Insurance Commissioners creates model laws for states to pass.

Less than four years after producing Actuarial Guideline 49, the NAIC is ready to tackle indexed universal life illustrations yet again. An IUL illustration subgroup has a 2019 charge to “provide recommendations for modifications to AG 49.”

-Burns’ Legacy Includes Helping Position Company as a Leader in the FIA Market. Allianz Life Insurance Company of North America has announced that Tom Burns, chief distribution officer, will retire from the company, effective on April 15, 2019. Succeeding Burns is Eric Thomes, currently head of field marketing organization distribution for the company.

The board of directors of MetLife today announced that Michel A. Khalaf, president, U.S. Business and EMEA, will become MetLife’s president and chief executive officer on May 1, 2019. Steven A. Kandarian, who led MetLife through a period of significant change, is retiring.

In current assumption UL, the growth of the policy’s cash value is based on a flat crediting rate that is established by the insurance carrier and adjusted from time to time. The unique policies have come under fire from some longtime clients who say the promises made at time of sale have not materialized.

If you or someone you care about is among America’s estimated 75 million baby boomers, there are a few financial facts and figures you should know. For one thing, middle-income boomers are carrying more debt into retirement than ever before. According to a recent study commissioned by Bankers Life Center for a Secure Retirement, middle-income boomers have…