by John Darer® CLU ChFC MSSC RSP CLTC
The subject of statutory protections has been raised by an ELNY annuitant whose important comment we can all learn from.The ELNY annuitant alleges she was told at the point of sale that the annuity was "guaranteed by the State of New York".
First of all there is a statutory prohibition on advertising the existence of statutory protection in New York by a licensed insurance agent in the connection with the sale of insurance or annuities. A similar prohibition is in force in the majority of other states. To use it in a sales presentation is a violation of the insurance law.
If an ELNY annuitant was sold the ELNY annuity on that basis that says something right there. If any ELNY annuitant has something in writing to that effect, I would like to see it, in the publlc interest. Do you have a letter, a piece of sales literature, a court transcript? If relevant, and not violating any covenants that were taken at the time of settlement, I'd consider publishing it. I'd like to know specifically who said such a thing?
However, setting aside for the moment the other issues and allegations concerning the potential responsibility of State of New York agencies, even if someone told you at the point of sale that it was guaranteed by the State of New York, there is and ALWAYS has been a limit, from the time the statutory protection was established in 1985. The company was taken over in 1991. Is it reasonable, in light of this, to assume that the State of New York, the State of California or any other state will guarantee any "fakockta" insurance company, for an unlimited amount? ELNY annuitants are seeing the benefit and the draw back of that limit now.
I write this post and others as part of an ongoing commentary to accurately record what has happened for history as I see it. I feel for these people. The 1,500 will not be forgotten because for those that take the time to gather the information that I've asked for they WILL have a voice,
However, I recently read comments on Patrick Hindert's blog that some are considering an Occupy assault on our industry, While I comprehend why such a thought occurs, I hope people will think things through.
I also have to take a step back and say this:
I firmly believe in insurance and the insurance industry, warts and all. As a young agent with Northwestern Mutual in the 1980s and early 1990s, I placed a lot of life and disabilty insurance. That insurance I sold made a real difference in people's lives. My Dad, who suffers from Alzheimer's, is in one of the best assisted living facilities of its kind and lives in dignity because we acquired a long term care insurance policy 5 years before he was diagnosed. It's a life saver. I am proud of the work that I and others in my industry have done for injury victims. All of my structured settlement annuitants have been paid. None of my clients have faced shortfalls over any insurance product I've placed in 29 years.
The Kop, the most vociferous soccer fans for Liverpool and noted red flag wavers, have a taunting chant F*ck off _______F.C you ain't got no history" that when directed at my club I usually find annoying. However, in this context the message it's a good one. Perhaps from 1982-1988 people should have been singing "Bug Off Executive Life, You Haven't Had That Long a Life. We don't need no trouble or strife, So not betting on you for life"
If you are an ELNY victim and are willing to help me educate others in a constructive way, you will have a voice and continue to have my support.