Transferring Information - Company to Agent

  • Crown Life - Casteel
    • mp3
  • 1994 03 - InsuranceObserver.com - Western National's Deceptive Memo: (Western is Incomplete disclosure on rating) - 12p 
    • p4 - THE FEBRUARY ISSUE of the Insurance Forum contained a memo from Western National Life's p4 - marketing department to its agents summarizing its ratings. 
    • Joseph Belth, the editor of the Insurance Forum, believes that the memo was deceptive for three reasons.
      1. ... 
      2. Joseph Belth wrote to Western and asked about the omissions in the definitions. Western responded by saying that "our Field Up-date publications are intended for the sole use of, and are distributed only to, our...agents... These summaries [were not] intended for clients."
      3. Belth's response: "Outrageous...lnformation is deceptive if it gives recipients an erroneous impression of important relationships...A company has an obligation to provide nondeceptive information to all its constituencies, including its agents." Indeed.

Agency Law

  • 2024 0209 – FSRA – [2023-015] – Comments – Consultation for Proposed Guidance on Life Insurance Agent & MGA Licensing Suitability  —  [BonkNote]
    • CLHIA – Canadian Life and Health Insurance Association – Lyne Duhaime – [FSRA-2023-015] – 2024 0223 – 10p
    • Reliance on Agency Law falls short:
      • In practical terms, the vast majority of MGAs operate independently and support the distribution of insurance products of a variety of insurers.
      • Very few insurance distribution participants have a model that approximates one in which apparent authority could possibly be found.
      • FSRA’s reliance on agency law to deem a principal-agent relationship to exist “in certain circumstances” is a response suited to the distribution model contemplated by the Insurance Act of the 1990s, when insurers almost exclusively sold products through a career salesforce.
      • If FSRA is looking for greater authority to regulate MGAs, which life insurers support, the proper forum to acquire that authority is in legislation.

Apparent Authority

  • 2018 – LC – Ciofoletti v. Securian Fin. Grp.  —  [BonkNote]
    • No. 0:18-cv-03025-JNE-ECW (D. Minn.) – filed in federal court in St. Paul, Minnesota
    • Doc 138 – Transcript – June 23, 2020
      • p27 – It’s Vacura v. Haar’s Equipment, Inc. It’s cited in the notes to this Jury Instruction, 364 N.W.2d 387 at 391, Minnesota Supreme Court 1985.
      • And the Court says, well, apparent authority is usually based on some affirmative action on the part of the principal.
      • ⇒ Authority may be found when the agent has regularly exercised some power not expressly given to it and the principal knowing of the practice tacitly sanctions its continuance.
        • And that’s where we’re at here.
  • 2024 0209 – FSRA – [2023-015] – Comments – Consultation for Proposed Guidance on Life Insurance Agent & MGA Licensing Suitability  —  [BonkNote]
    • CLHIA – Canadian Life and Health Insurance Association – Lyne Duhaime – [FSRA-2023-015] – 2024 0223 – 10p
      • Reliance on Agency Law falls short:
        • In practical terms, the vast majority of MGAs operate independently and support the distribution of insurance products of a variety of insurers.
        • Very few insurance distribution participants have a model that approximates one in which apparent authority could possibly be found.
        • FSRA’s reliance on agency law to deem a principal-agent relationship to exist “in certain circumstances” is a response suited to the distribution model contemplated by the Insurance Act of the 1990s, when insurers almost exclusively sold products through a career salesforce.
        • If FSRA is looking for greater authority to regulate MGAs, which life insurers support, the proper forum to acquire that authority is in legislation.

Authority

  • 2018 – LC – Ciofoletti v. Securian Fin. Grp.  —  [BonkNote]
    • No. 0:18-cv-03025-JNE-ECW (D. Minn.) – filed in federal court in St. Paul, Minnesota
    • Doc 138 – Transcript – June 23, 2020
      • p27 – It’s Vacura v. Haar’s Equipment, Inc. It’s cited in the notes to this Jury Instruction, 364 N.W.2d 387 at 391, Minnesota Supreme Court 1985.
        • And the Court says, well, apparent authority is usually based on some affirmative action on the part of the principal.
      • ⇒ Authority may be found when the agent has regularly exercised some power not expressly given to it and the principal knowing of the practice tacitly sanctions its continuance.
        • And that’s where we’re at here.

2022 – LLQP – Life Licence Qualification Program (LLQP) Exam Preparation Manual

  • 2022 – Life insurance: Life Licence Qualification Program (LLQP) Exam Preparation Manual E-311 – 9th Edition
  • Chapter 4 – Universal Life
  • (p53) – This Chapter explores the third type of permanent insurance, universal life (UL) insurance, which evolved after numerous modifications to whole life insurance.
  • (p261) – 11.6 Using illustrations
  • [Bonk – [1]]: Understand, Underwriters – Coverage, 
  • [Bonk – [2]]: Term vs Perm, Perm – Projections, Illustrations = Complex, 
  • [Bonk – [3]]: universal life policy outcomes – [Coverage Period], sensitive / investment performance – [], Projection, Future Performance, Signature (Understanding]
  • [Bonk – [4]]: Agent, Spreadsheets, Compare policies
  • [1] – Illustrations are commonly used to help the client understand the recommended policy, and they are often appended to the life insurance application so that the insurance company’s underwriters have a clear picture of the coverage being applied for.
  • [2] – In the case of a term policy, the illustration just shows the premiums payable and the death benefit in each policy year.
    • For permanent insurance policies, the illustrations are more complex, in that they also include projections of future policy dividends, mortality deductions, investment account values, and cash surrender values for each policy year.
      • [Bonk: [2]] +Coverage Period, What is the Purpose of Cash Value? – Why Should anybody care about any of this? LC-Blumenthal –  Look – CSV vs CV]
      • [Bonk: [2]] – Garret Gunderson = Why do they call UL Permanent?]
    • However, these projections are only intended to demonstrate how the policy works, and are not a prediction of guaranteed or expected performance.
    • [Bonk: 1) UL – Bobby Samuelson, LIFE180 – Missing COI Column, 2) UL – Any Plan, Coverage Period. 3) UL – Missing – Death Benefit in each policy year]
  • [3] – Participating whole life and universal life policy outcomes are very sensitive to even small changes in investment performance, particularly over the long life of these policies. To highlight this sensitivity, most policy illustrations now include projections for at least two investment return scenarios. Agents must ensure that policyholders understand that the projections are not predictions of future performance. In fact, the policyholder is typically required to sign the illustration, acknowledging that he understands the limitations of the illustration.
  • [4] – In addition to the official policy illustrations generated by the insurance company’s software, agents may find it useful to develop their own simple spreadsheets to compare products or insurance options, such as those provided earlier in the case study above.
  • (p261) – 11.6 Using illustrations
  • [Bonk – [1]]: Understand, Underwriters – Coverage, 
  • [Bonk – [2]]: Term vs Perm, Perm – Projections, Illustrations = Complex, 
  • [Bonk – [3]]: universal life policy outcomes – [Coverage Period], sensitive / investment performance – [], Projection, Future Performance, Signature (Understanding]
  • [Bonk – [4]]: Agent, Spreadsheets, Compare policies
  • [1] – Illustrations are commonly used to help the client understand the recommended policy, and they are often appended to the life insurance application so that the insurance company’s underwriters have a clear picture of the coverage being applied for.
  • [2] – In the case of a term policy, the illustration just shows the premiums payable and the death benefit in each policy year.
    • For permanent insurance policies, the illustrations are more complex, in that they also include projections of future policy dividends, mortality deductions, investment account values, and cash surrender values for each policy year.
      • [Bonk: [2]] +Coverage Period, What is the Purpose of Cash Value? – Why Should anybody care about any of this? LC-Blumenthal –  Look – CSV vs CV]
      • [Bonk: [2]] – Garret Gunderson = Why do they call UL Permanent?]
    • However, these projections are only intended to demonstrate how the policy works, and are not a prediction of guaranteed or expected performance.
    • [Bonk: 1) UL – Bobby Samuelson, LIFE180 – Missing COI Column, 2) UL – Any Plan, Coverage Period. 3) UL – Missing – Death Benefit in each policy year]
  • [3] – Participating whole life and universal life policy outcomes are very sensitive to even small changes in investment performance, particularly over the long life of these policies. To highlight this sensitivity, most policy illustrations now include projections for at least two investment return scenarios. Agents must ensure that policyholders understand that the projections are not predictions of future performance. In fact, the policyholder is typically required to sign the illustration, acknowledging that he understands the limitations of the illustration.
  • [4] – In addition to the official policy illustrations generated by the insurance company’s software, agents may find it useful to develop their own simple spreadsheets to compare products or insurance options, such as those provided earlier in the case study above.

National Life Brokers Association

  • Frank S.J. McIntosh
  • Book – The Great Misrepresentation regarding the Cost of Life Insurance, by “A Study of Mutual Life Insurance Dividends”, National Analytical Service, Inc”.  – <WishList>
  • Insurance Research Service Library
  • National Analytical Service
  • ia902303.us.archive.org/3/items/telephonedirecto00citi_11/telephonedirecto00citi_11.pdf
    • North Carolina – 571 E. Main Street – 883-9333
  •  – Book – How I Got My Piece of the Rock: The Incredible Court Case, Venegas Vs Prudential ; Vital Life Insurance Information : How You Can Beat the System
  • 1961 – Book – 
  • 1962 – ARIA – Addenda. Summary of Results. Insurance Research Inventory Questionnaire. The Journal of Insurance, Vol. 29, No. 4 (Dec., 1962), pp. 592-605 (14 pages), Published By: American Risk and Insurance Association – jstor.org/stable/250615
  • 1973 0911 – The Sentinel – Life Insurance Workshop Planned Here Thursday – Tue ·Page 7
  • 1973 0914 – The Sentinel -Money Well Spent for Term Life Insurance, Businessman Says – Fri ·Page 10 –

18 Aug 1977, Thu Sun-Journal (Lewiston, Maine) Newspapers.com

Jail

  • David Rutstein – The People that are running your company may end up in jail.
  • 20 – Sahid – So, you are saying that Patrick Bet-David who is worth 500 Million dollars is going to end up jail?
    • And the same … did the partnership with Integrity Marketing, a company that is worth over 20 Billion Dollars.
    • So, what you are telling me is that these companies pretty much have Shit Lawyers and Attorneys?
    • Because if that was the case the company would have then been sued.
  • [Bonk: Business Opportunity, Earnings Claims]

2023 1006 – Family First Life Lawsuit Witnesses – PHP Agency Recruiter Interviewing Job Applicant – Scamming New Agents!  —  [BonkNote]  —  [VIDEO-YouTube-34:17]

  • 2024 0312 – David Rutstein / Gus Fox – Family First Life Agent Who Was Scammed Explains that Shawn Meaike is a Sociopath – FFL – [VIDEO-YouTube-01:50:23]
    • 8 – Jail – Shawn Meike – Elder Abuse – Churning
  • (p139) – CEPA – Crime and Lawlessness in the Market Place. Statement to National Consumer Protection Hearings of Federal Trade Commission, Washington, D.C., Thursday, November 21, 1968, By Max Weiner, Educational Director, Consumers Education And Protective Association
    • Hundreds of millions of dollars have been stolen by fly-by-night insurance companies from policyholders.
    • Uncounted hundreds of millions in unpaid claims, representing tragic and helpless victims of accidents left uncompensated, have resulted from the operations of insurance swindlers.
    • Few, if any, of the insurance swindlers have gone to jail.
      • Instead, with money siphoned off from the companies they fleeced they have entered other lucrative fields and continue to defraud and swindle.

1968 11 – FTC – National Consumer Protection Hearings, Federal Trade Commission  —  [BonkNote]  —  [PDF-398p – GooglePlay]

MGA – Managing General Agent

1990s

  • 1995 0905 – LC – Ferguson v. Crown Life and William Casteel – V14of23 – 244p  —  [BonkNote]
    • 2884 – Q Okay. And what is – a general agency briefly?
      A General agency, I guess, would be kind of considered a a wholesaler. We marketed other insurance agents primarily. We do very little selling ourselves but we work with other agents.
    • Q And how many independent brokers do you work with?
      A Oh, I’d say somewhere between a hundred to 150 typically. apprenticeship type of system in a lot of cases.

2000s

  • 2009 – LR – The “Other” Intermediaries: The Increasingly Anachronistic Immunity of Managing General Agents and Independent Claims Adjusters, by Jeffrey W. Stempel – 125p

2010s

  • 2011 02 – CCIR – Issues Paper Managing General Agencies – Life Insurance Distribution Model, Agencies Regulation Committee – 64p
    • This document reflects the work of regulators who are members of CCIR.

2020s

  • 2020 0821 – Letter – ACLI to NAIC (MCASWG – Market Conduct Annual Statement Blanks Working Group (D)) – re: RE: Accelerated Underwriting & TPAs/MGAs – 3p
    • TPAs and MGAs – We also question the usefulness of collecting information concerning MGAs and TPAs.
      •  Insurers are ultimately responsible for the actions of these entities, who can provide a wide variety of services.
        • Distilling this information into a usable form related to a risk-based exercise seems to us unachievable.
  • 2023 1121 – FSRA – Proposed guidance on Life Insurance Agent & MGA Licensing Suitability  —  [BonkNote]  —  [link]  —  34p
  • 2024 0209 – FSRA – [2023-015] – Comments – Consultation for Proposed Guidance on Life Insurance Agent & MGA Licensing Suitability  —  [BonkNote]
    • [BonkNote – Comment] – FSRA’s Life Agent and MGA Suitability Guidance – [2023-015] – 2024 0209 – 2p

2018 0122 - Van Mueller | State Farm Agent Training Feb 2017 (Complete) - YouTube

  • ⇒ [Bonk: The Volume Starts Out Loud, turn the volume down.]
  • 2017 - State Farm Agent Training / Van Mueller
    • [Bonk - VIDEO-Clip - Starts around 02:06:00]
    • See the rest at Youtube - 2017 - Van Mueller | State Farm Agent Training Feb 2017 (Complete) - [YouTube-04:04:06]

 

  • 02:08:00 - I Don't use illustrations
  • 10-Pay Life Insurance Policy - 
  • 02:18:00 - Illustration, 0%
    • Policy Loan - Market Down - Take Loan out - and go make 50% - Tax-Free Retirement
    • [Bonk: Leverage - Arbitrage - Timing the Market] 
  • 02:19:00 - return of unearned premium
  • 02:20:00 - Some people say - Life Insurance is a lousy Investment
    • People haven't done the math, do the math
    • Higher Taxes down the road. 
  • 02:22:00 - Are you going to let the the Government, the Banks and Wall Street to Manipulate you or do you want control. 
  • 02:22:00 - He just bought
  • 02:23:00 - income stream can't run out of
  • 02:23:00 - Age 50 Example
  • 02:24:00 - Taxes, Retirement Savings, Quality of life - Lots of people are worried about these things
  • 02:25:00 - "Write this Down" - intimate, but not personal - Do you want to happen next time what happened last time. 
  • 02:25:00 - What was I talking about? It'll come back to me. 
  • 02:26:00 - Age 70 Example - A Taxes, Inflation, Income that you can't outlive.
  • 02:27:00 - Any Hobbies? Martial Arts. I'm not going to Donald Trump her
  • 02:29:00 - Starts yelling…. Double, even ask when you don't know what you are talking about - I saw this guy, tell them to Google Me
  • 02:30:00 - 
  • 02:31:00 - I'm going to use a swear word - another one of you assholes….how do you know whether I'm a big one or a little one?  "Professionals never get offended"
  • 02:33:00 - Van's Sales Process - Meets people at their house, Little time in the office
  • 02:34:00 - Great Sofa….picture
  • 02:36:00 - Taxes - Answer me - he yells
  • 02:37:00 - Are you Ready? - Do you want to pay those taxes….you just made the sale…that's the secret
  • 6,600 clients… smartest insurance agent we've ever met….
  • 02:39:00 - Give people an organized way to think about insurance, finances, taxes….they don't know anything…they can't unless you ask them the four questions. Do you like it? 
  • 02:42:00 - Question 1) - Seeds vs. Harvest - IRS - Why would you do it?
    • Tell a Story - NLP - Why aren't you using the same Science? The most important - as an Insurance Agent now - 50 of people don't pay taxes.
  • 02:44:00 - Question 2) - Easy way to replace benefits.  When would you want to know about it? Inflation, Deflation.
  • 02:43:00 - 
  • 02:46:00 - I've done it a million times…his presentation….4 questions
    • Taxes
      • Do you want to pay those Taxes.....
  • 02:46:00 - Rule of 72
  • - Ask Questions at Bars, out to dinner
  • 02:47:00 - never lose any money - #1 Warren Buffet--- "Write this Down"
  • 02:47:00 - Insurance companies sell products that don't lose money
  • 02:49:00 - investing vs insurance. TVM - you sell that
  • 02:50:00 - Most people don't know the mathematics of what they sell
  • 02:50:00 - Foundation is a Cash Value policy with "The State Farm"
  • 02:50:00 - Volatility - Stolen from Tom Hegna - If you steal one thing it's theft, if you steal a bunch …it's research
  • 02:53 00 - I've trained with Missed Fortune - [Doug Andrew] - etc .- I can't think of them right now.  Problem with all these things is that they are all too complex. "They sell complexity so they can charge you a Big Price to buy their program. Most people think of all of these things as bad things." 
  • 02:55:00 - Next Crisis - Lack of Credit - Insurance Products
  •  56 - Tax-Free Income - Jack Welch - GE - 4 million income tax-free from his life insurance. Why aren't you guys doing this? Small Businesses. Easier Check. 
  • --------------
  • 57 - 30% of Van's Compensation comes from this one idea.
    • "Annual Health Care Costs for Family of 4 now at $24,671 a Year."
    • https://www.milliman.com/en/insight/2024-milliman-medical-index
  • 02:59:00 - Actuaries - An Actuary is an Accountant with no Personality. They are the only people in the World that will tell you the Truth. They don't care if you sell anything. It's all about the math.
  • 03:00:00 - I did all the Math. I'm a Psycho about Math.
    • 03:04:00 - Do you want to pay for other people? - They are coming to get you.  You have to show them the math. 
  • 03:06:00 - Doesn't use a computer.
  • 03:08:00 - Suze Orman - Eh, Dave Ramsey - Professionals Never get offended. What's in it for them? Bill Gates, Warren Buffet. Walt Disney, Ray Kroc. What do they know that you don't know. Why does Wall Street tell you not to do it? What pays the most Commission? Mutual Funds or Life Insurance.
  • 03:09:00 - Sale Examples - Who do I present these ideas to?
    • If I could show you a way - Keep money for you family....
  • 03:21:00 - Life Insurance sold like late night commercials.  Value, upon Value, upon Value....so they don't perceive cost.
  • Market Timing - What's the best to invest in the Market? What it's down. Government. Stimulate the Economy. Get the money out of a Life Insurance Policy. Borrow $250,000 from the policy, put it in the market, make a quick 50%. State Farm Growth Fund. Take money out. Pay back the Loan.  I don't want the policy to Blow up. What do we do withe this $125K? Put it in a new policy. People will give you all their money. Compares to Money Markets and Savings Accounts.  --- 2008 Financial Crisis
  • MEC - 
  • 03:26:00 - MEC - No Gain in a MEC...there's no tax
  • 03:26:00 - Life Insurance really does that? sign hard...three copies
  • 4 - I'm Shy. I'm the reason there is Compliance
    • MDRT - 16 years in the business - 1st time
  • @TheFinancialAdvocacyPodcast - 4 years ago
    • 3:12:30 - $1,000,000 per week every week; $30 million in 2016 in production (total premiums for annuities, SPWL, SPIA, Whole Life, etc.); Middle Class America - 900-1200 square foot houses; West Allis, Cudahy, South Milwaukee - Are these affluent houses? "That's where I make my living. They're the only people with any money." They're not throwing a bunch of money on a big house; and they actually SAVE money out of their Social Security. $300,000 in a money market account! You did everything perfect, and now they're going to punish you for it. What if all you had to do is move the money from one pocket to another pocket, we'll buy you $540,000.

MDRT - Million Dollar Round Table

  • 1999 0724 - The Salt Lake Tribune - MDRT - Million Dollar Round Table - Utah - Doug Andrew - p7
  • 2015 - MDRT - Top of the Table - Aaron Andrew - 58p
    • p 11 - LifePro: Five Keys to Generating 300 Leads Per Week and Millions in Target Annually
    • In this powerful session, learn from Top of the Table producer Aaron Andrew how Live Abundant, a financial practice established in 1974, has created a predictable marketing system that generates more than 300 leads per week and millions in target annually.
    • Aaron will show you how Live Abundant uses a potent combination of radio, email, educational seminars and webinars to create financial predictability and prosperity.
  • Guy Baker
  • Bob Castiglione
  • Van Mueller
  • John Savage

VIDEOS - 1970s and 1980s

  • 1978 - MDRT - John Savage - Selling millions in life insurance in a month -- an MDRT classic - [VIDEO-YouTube-04:33]
    • 03:20 - People don't buy insurance, people buy people.
    • 04:20 - I failed a long time in this business
    • 04:25 - For all you young people... All you have to do in this business is last.
    • People don't ask to buy insurance, but they want to buy what it does and they want to buy from people they trust.
  • 1987 - MDRT - Bob Castiglione - Life Insurance The Heart of Financial Consulting - [VIDEO-YouTube-54:15-U]
  • 1988 - MDRT - John Savage - 1988 "Suit Up! You're Starting!" - [VIDEO-YouTube-01:04:33-U]
    • :27 - replacements - A.L. Williams
    • 35 - Columbus Life

VIDEOS - 2000s

  • 2004 - MDRT - Bob Castiglione - Creating A Wow Experience with Life Insurance  ---  6p  ---  [VIDEO-YouTube-53:30-U]
  • 2017 - MDRT - Guy Baker - Guiding clients to requesting life insurance - [VIDEO-YouTube-15:39]
    • 5 - 
    • 9 - How Life Insurance Works
      • Cost, Life Expectancy, Adverse Selection -
        • Mid-1800's - Company Bankruptcies
        • Actuaries - Box, Compound Interest, Curve, Interest Rate, 
        • "Fill the Box or pay the Curve."
  • 2018 - 2022 0323 - MDRT - Brad Brain - How life insurance keeps family fortunes - [VIDEO-YouTube-03:14]
    • [Bonk: Doesn't use "Seeds" "Harvest" - uses "Pennies" "Dollars"]
  • 2020 0219 - NAIFA - MDRT Big Ideas: Dale Martin - Selling Large Insurance Policies to High Net Worth - [VIDEO-YouTube-59:28]
    • 48 - They didn't buy Life Insurance, they bought a legacy trust. AHA Moment
      • Life Insurance is a tool.
    • 52 - Pain in the Butt
    • 55 - Probably have to stay away from the words "Tax-Free." "I call them Insured Private Pensions."
      • Qualified vs Non-Qualified, Super Roth IRA
      • I would never say "Whole Life Insurance."
        • Eventually you have to tell them it is. I'm not saying that it's a Shell Game.
    • Didn't buy Life Insurance. Bought something to help him leave a legacy for his family. 
  • 2020 - MDRT - 10 minutes of favorite sales ideas from two industry greats - [VIDEO-YouTube-11:20]
    • three buckets
    • Cash Value Life Insurance
    • We learn from our friends
    • 10 - I'd be remiss...
    • 11 - Business Card - slide across the table - name 3 people

MDRT Proceedings

  • 19xx - MDRT Proceedings - New York Life - Vanishing Premium
  • 19xx - MDRT - Swiss Army Knife - Ben Baldwin
  • 1999 - MDRT Proceedings - Richard Weber
  • 1999 - Book - MDRT - Million Dollar Closing Techniques - 
  • 2021 1208 - MDRT - Massive goals build success - [VIDEO-YouTube-03:51]
  • Many people increasingly like the idea of paying taxes now on savings for retirement knowing they will not have to pay taxes on the growth or the distribution of that savings.
  • The most common financial vehicles that do that are a Roth IRA, tax-free municipal bonds, and cash value life insurance.
  • ⇒ I like to say it this way, if you were a farmer, would you rather pay tax on the seed or the harvest?
    • I think almost every farmer would rather pay tax on the seed. It works the same way with money.

2013 - MDRT - How to Use the Low-Interest Environment to Drive Life Sales, by Tom Hegna, at MDRT Conference - 18p