• Report: #199876

Complaint Review: American Income Life

  • Submitted: Fri, July 07, 2006
  • Updated: Tue, April 05, 2011

  • Reported By:Atwater California
American Income Life
1200 Wooded Acres, Waco, Texas Nationwide United States of America

American Income Life Scam Review | Complaints INVESTIGATION: American Income Life, National Income Life dedicated to helping associates achieve their goals; feel safe confident & secure doing business with AIL & NIL, they will not allow a legitimate complaint to go unresolved. ALL COMPANIES GET COMPLAINTS - HOW THE COMPANY HANDLES THOSE COMPLAINTS SEPARATES GOOD BUSINESSES FROM BAD BUSINESSES. Waco Texas Nationwide
*UPDATE : American Income Life join Rip-off Report Corporate Advocacy Business Remediation & Customer Satisfaction Program and submit to independent investigation. American Income Life pledges to resolve all legitimate complaints and address any issues from the past, present and in the future.

*UPDATE Employee: Sensationalized Story

*Author of original report: Your doing a great job, Mark!

*UPDATE Employee: WHAAAAAAT!

*UPDATE Employee: WHAAAAAAT!

*UPDATE Employee: WHAAAAAAT!

*UPDATE Employee: WHAAAAAAT!

*UPDATE Employee: just to correct mark on a couple things

*Consumer Suggestion: wow, powerful stuff

*Consumer Suggestion: wow, powerful stuff

*Consumer Suggestion: wow, powerful stuff

*Consumer Suggestion: wow, powerful stuff

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SPECIAL UPDATE April 5 2011: American Income Life remains committed to 100% customer satisfaction and has drastically improved their business processes over the years to better serve their customers. American Income Life is truly dedicated to making sure ALL customers are happy. American Income Life continues to show customer service is of the utmost importance and they currently have no complaints!

To date, American Income Life has addressed and resolved all reported complaints, which have always been resolved to the complete satisfaction of their customers. American Income Life proves to be among the top members of the Rip-off Report Corporate Advocacy Business Remediation and Customer Satisfaction Program, as a Verified Safe Business. American Income Life has remained actively engaged and improving the way they address customer service complaints. Rip-off Report has confirmed that American Income Life is no fraud, is not a scam and is of the highest integrity. As an active and current member of the Rip-off Report Corporate Advocacy Business Remediation and Customer Satisfaction Program we are happy to report that now more than ever American Income Life remains committed to customer satisfaction and gets our top Verified Safe endorsement.
 American Income Life is Rip-off Report Verified

*UPDATE, Rip-off Report Investigation: American Income Life / National Income Life Insurance Company gets a POSITIVE RATING from Rip-off Report and is fulfilling its commitment to resolve all legitimate complaints and address representative issues. Rip-off Report has investigated the company for many months after they contacted us to resolve any posted issues and misunderstandings. With over 2500 representatives and millions of clients, American Income Life / National Income Life is bound to be the subject of a certain number of complaints about improper agent conduct, as well as product and administrative complaints.

Rip-off Report's investigation found such complaints, but importantly also found that American Income Life / National Income Life is committed to resolving such complaints quickly and is doing everything possible to satisfy its clients and representatives alike. The company also takes appropriate action against any of its representatives who are found to have conducted themselves improperly or unethically. We believe that the number of complaints against this company, whether through the Internet or other channels, is small when put into the context of its enormous size. Most large companies would never commit themselves like American Income Life / National Income Life has to Rip-off Report's Corporate Advocacy Business Remediation & Customer Satisfaction Program.

Read our investigative Report and American Income Life / National Income Life's commitment to 100% consumer satisfaction.

American Income Life / National Income Life provides products and services through independent representatives, and has been providing benefits to families for over 50 years. AIL is rated A+ Superior by A.M. Best Company, its second highest rating, for overall financial strength (as of 6/07). American Income Life / National Income Life www.ailife.com and also www.WorkAtAIL.com provides life insurance and supplemental benefits to members of labor unions, credit unions, associations, as well as private clients in all 50 states, the District of Columbia, Canada, and New Zealand.

See why you should feel secure and confident when doing business with American Income Life / National Income Life Read about Rip-off Report Corporate Advocacy Business Remediation & Customer Satisfaction Program,..A program that benefits the consumer, assures them of complete satisfaction and confidence when doing business with a member business. this program works.

===================== NOW TO THE ORIGINAL REPORT THAT WAS FILED

=====================

American Income Life Let's never forget the elderly union members being screwed by this company Waco, Texas Nationwide

How was I alerted to this problem?

Let's just say it was all started by an employee with a conscience.

Imagine sitting at a desk each and every day answering the telephone for a large insurance company's Customer Service Department. You answer questions about beneficiaries, policy changes, account values, death claims, methods of payment and the seemingly dozens of other things people have questions about.

This all changes one day when you receive a call from a 70 year-old woman. This loyal policyowner cannot understand why your company will not pay her husband's death claim. You can tell she knows very little about life insurance and is having an extremely difficult time speaking with you about it. Married for over 50 years, she weathered union lay-offs, strikes, war, the death of one of her children, economic troubles, and a hip replacement. She is trying desperately to hold back the flood of tears and you can sense the pain in her voice. All she has left is his life insurance policy and she wants so much to give him the burial he deserves.

Confused by your company's initial response to completely deny the claim, she's telephoned her local union representative and found that his policy was not taken out through them at all. "Wait a minute" she cries, "the agent told us he worked for my husband's union". "He said he was some sort of representative or spokesman." However, the union representative knows nothing about this and informs her that this insurance company is in no way affiliated with their organization.

You cautiously look around the edge of your cubicle expecting someone to yell, Surprise! This can't be a real call; maybe some of the others in your department are playing a cruel trick on you. These thoughts are quickly broken by the sound of her voice in your earpiece.

She explains that her husband once had a policy he took out in 1966 with another company. They faithfully made payments on this until receiving a yellow card in the mail informing them of a "free" life insurance policy being offered through his union. Soon after receiving this card in the mail, they were contacted by a person claiming to be a union representative who was just following up on the free insurance offer. All he needed was a signature to put the new plan in force. Trusting that the union would never knowingly allow anyone to harm them, they invited this agent into their home.

When the agent arrived several days later, he seemed like such a wonderful man. Dressed in a nice suit, he greeted them warmly and complimented their beautiful home. Digging into his pocket, he produced some sort of identification card, which he claimed, would confirm his affiliation with their union. This card, however, was not really important to them. If this nice young man said he was from their union, then he was, and there were no questions asked. After all, they had been loyal members for more than 40 years and anyone from that organization was like family.

At their kitchen table, the agent brought some papers out of his briefcase. These were the applications for the new "free" policies and in order to get them started all they needed to do was sign them. As they put their glasses on and examined the documents, the agent said, "you know, for just a few dollars a week, you can get a much better policy which is also offered through the union. These new policies are know as Burial Plans and will provide your family with the money needed for your final expenses."

The husband mentioned that he already had a life insurance policy he took out nearly 30 years ago and didn't think he needed any more. "I can appreciate that," the agent said, "but that policy's only worth $1500.00. Your wife will need much more than that to take care of you." But these policies are expensive and we're on a fixed-income," stammers the old man. "I just don't know if we can afford them." Overcoming each objection, the sharp-dressed agent is "slick" and speaks very quickly. Soon the unsuspecting seniors are completing applications for two $50,000 policies.

In just a few weeks, the new policies arrive in the mail. Enclosed is a letter from the agent, thanking them for their business. Not suspecting anything to be wrong, the wife files the policies away in a drawer and forgets about them. Because the premium payments for these new policies are paid automatically through their checking account every month, they are essentially, "out of sight - out of mind".

You are really surprised at how well this woman remembers the chain of events leading to the purchase of the policies. "When my husband passed away a few weeks ago, his cause of death was listed as a Coronary Occlusion," she says. "He hadn't really had any trouble prior to this and I just don't know what I'm going to do now. Your company told me they wouldn't pay me any money because my husband didn't die of an accident. I had no idea these policies only covered us if we died on accident - the agent never told us that."

"He had a 1966 policy but, we just couldn't afford all 3 policies and had to cancel the old one." Desperate for help she cries, "I've tried many times to call our agent and he will not return my calls, why won't he at least talk to me? The agent told us these policies were through our union, why doesn't the union know anything about it? Sometimes we had to do without other things so we could pay for these policies, where did all our money go? Whom can I call, what can I do?"

After gathering yourself, you promise the policyowner that you'll speak with your immediate supervisor about her problem and get right back to her. "Please help me" is the last thing you hear before hanging up the phone.

After giving your supervisor all the information you can remember, he promises to "look into it" and instructs you to return to your desk. After asking this man for something positive to report back to the woman, you're instructed not to call her and to allow the company to take care of it. Feeling like you just abandoned a friend, the rest of your day does not go well all. You just can't get that woman's voice out of your mind. After work, you sit alone at home wondering what happened. And as you lie in bed that night, the pleas for help echo in your mind. Sleep does not come easy.

The next day you query your supervisor on the status of that case. "I have no idea" he says, "I told you to let the company take care of it. Besides, it's not your problem, just answer the telephone and do your job." These words seem almost threatening and you need your job so you do as you are told. Over the next few months, you pay much closer attention to those calling you and your associates. It seems as though more and more calls from desperate policyowners are coming in all the time.

One day as you and several of your co-workers are having lunch, someone mentions a horrible telephone call they received from a policyowner that morning. For some reason, this story sounds vaguely familiar and piques you're interest. Although it wasn't from the same person, It involved the same agent and had to do with an accidental death policy not being properly sold. When you bring this up to the others, they tell you they get phone calls about this particular agent all the time. Because he sells so much insurance / so many policies, he is never held accountable for his actions. Actually, it's not just one agent. There are many different agents who do the very same thing. You think to yourself, it must be nice to make that much money. It must be just like getting away with bank robbery.

As if programmed in your mind, the questions spring forth. Why doesn't someone do something? Can't someone help all the people who've been cheated? How can these agents look in the mirror every morning?

As you drive home that afternoon, you have an idea. You'll get on your computer and search the Internet for someone who handles this sort of thing. There has to be consumer advocates out there whom these people can turn to. That evening as you sit in your living room, you log onto the Internet, type in L-I-F-E I-N-S-U-R-A-N-C-E- F-R-A-U-D and "Bingo!" there I am.

I've been told this is a great story, but is it really just a story?

Could this very thing have already happened to hundreds-of-thousands of loyal labor union members across our nation?

I have reason to believe it has.

Are there people out there who do not yet know this has happened to them?

I have reason to believe there are.

When do people usually find out that their life insurance agent and / or the company has been less than honest?

Right after the insured passes away and their family is desperate for help.

Is this the type of thing someone should take a chance on?

Absolutely not! Why would someone want to pay into a policy for most of their life and end up with nothing in the end?

Has this type of thing happened before with other companies? Yes, Metropolitan Life, Prudential, New York Life, John Hancock, Allstate, and numerous other companies have paid $Billions in restitution and fines.

Are all this company's life insurance policies bad?

No, of course not. However, in the past 13 years, I've not found many that are more expensive.

The above scenario doesn't really apply to me. Are there any other types of potential fraud you suspect these agents have committed?

Yes, the most common being Policy Misrepresentation.

For example, a hard-working union member is promised a policy worth $100,000 and neither the premiums nor the death benefit are ever supposed to change. However, upon closer examination, the policy actually consists of three parts or sub-policies. The first of which is usually what agents usually call a "Burial Plan." For our purposes, we'll say this part is worth $10,000.

The second part could be a Renewable and Convertable 10-Year Level Term policy. This policy will actually last only 10 years before the policy will need to be renewed and the premium increased. After another 10 years has passed, the policy will again require renewal and a premium increase. According to the policy contract, insured must die prior to the policy anniversary nearest his/her age 65 in order for this portion of the policy to pay-off. Again, for our purposes, the value of this 10-year policy will be only $10,000.

The third and final portion of this "$100,000" policy is an $80,000 Accidental Death Benefit. According to the terms of this policy, the insured must die of an "approved" accident prior to his/her age 70 in order for this policy to benefit anyone.

So, will the policy really remain unchanged AND provide a $100,000 death benefit?

Yes, as long as the insured dies of an "approved" accident within 10 years.

I've also investigated a large number of cases where after just a few years, the premium paid is larger than the death benefit.

I'm not sure I understand what you mean. Will you explain this one to me?

Sure. Let's say a 67 year-old man purchases a life insurance policy that will never be worth more than $1,800 to his/her beneficiaries. And for this policy he/she pays $323.00 each and every year. Do the math. $323.00 X 10 = $3,230.00.

Why would someone pay $3,230 for an $1,800 policy?

Because they were probably told their premiums would stop when the amount paid reaches the death benefit OR that the policy's value will somehow increase over time. Remember, that $3,230.00 figure applies if he lives only 10 years. What happens if he lives 20 years?

Are there any other types of potential fraud you've seen?

To list them all would be impossible. Almost every time I begin investigating another agent and/or agency, I find the same old story with a slightly different twist. The different ways in which life insurance can be sold (or mis-sold) depends solely on an agent's imagination. I believe the most common "scam" I've found is when agents represent the TRGR10YM "Senior 10" policy as a permanent policy or burial plan. I personally believe a large percentage of agents are trained this way and feel pretty positive that I will acquire evidence of this in the near future.

This policy is nothing more than a Graded Benefit 10-Year Term product. Let's say the policy is represented to have a $3000 death benefit. What is not usually disclosed is that during the first year of the policy, that benefit is only $750.00. In the second year, this is increased to $1,500. The third year will see this amount increased to $2,250.00 and the 4th year (and every year thereafter) will receive the full $3000.00 - for only 6 additional years! Remember, this is only a 10-Year term policy and the chances of its benefit being out-lived are remarkably good.

Mark, I've telephoned my local American Income Life agent and he knows of you.

It seems the worst ones always do. I'm one of the best-known Life Insurance Fraud Investigators/Consultants in the United States. It comes as no surprise to me that your agent knows who I am. In fact, I've been in contact with the company's legal department for more than a year now. They also know me.

He told me there's nothing to worry about, that his is a great company and you are nothing more than a liar, cheat, crook, scoundrel, fraud, evildoer, or any one of a hundred different adjectives.

What do you expect them to do? Admit to it? If what I allege is true (and over the past 10 years I've had a 100% success ratio) do you honestly believe they'll step up and confess? I've investigated agents who make in excess of $400,000 per year; do you think they'll just give it all back? There are still people who'll swear that Enron did nothing wrong, O.J. Simpson is innocent, and there never were any weapons of mass destruction in Iraq. There were some people at MetLife who also claimed they did nothing wrong - right before they paid almost $2 Billion in one of the largest law suits in history.

The information I've shared with you is not "The World According To Mark Colbert," it can be found right on your policy in black and white. Get your policy out, read it, understand it. And please understand that it may be in your best interest to find someone other than your original agent to help you do this.

I telephoned my local American Income Life office and spoke directly with "the boss." He/she called themself a GA (General Agent), MGA (Managing General Agent) or SGA (State General Agent). This person told me that this company has been doing business with hundreds of different labor unions for many years and has never had any problems.

Maybe they haven't - until now. Prudential didn't think they had any problems either. Even after nearly $2 Billion in fines and restitution, they'll still try to convince people they did nothing wrong.

The bad part of this whole ordeal was when you had to realize there were people who actually fell for it.

They told me all about how their Valuation and Commutation Interest Rates are set by the Commissioners Reserve Method and are therefore very close to those used by the rest of the industry. We also have a choice of not two, but three Guaranteed Value Options. And we will always have a choice of taking either Paid-Up or Extended Insurance.

And if you understood all that, you would laugh and know that when it comes to the way in which your policy was sold, all that technical lingo means absolutely nothing. At a seminar I held last year, a bunch of AIL "executives" literally ambushed policy owners as they arrived at the hotel. In the usually forced conversations that ensued, big words and technical jargon was tossed out like dimes at a carnival's coin toss booth. I was greatly disappointed that several people fell for it and turned around without hearing, as Paul Harvey would call it, "The rest of the Story."

Mark Atwater, California
U.S.A.

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This report was posted on Ripoff Report on 07/07/2006 12:40 PM and is a permanent record located here: http://www.ripoffreport.com/r/American-Income-Life/nationwide/American-Income-Life-Scam-Review-Complaints-INVESTIGATION-American-Income-Life-Nationa-199876. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 UPDATE Employee

Sensationalized Story

AUTHOR: Chris - (U.S.A.)

I am a starting Trainee with American Income, Meadville branch. I have the policy information and script right here with me.

The lies you perpetuate are bogus. It's very possible some agents misrepresent either the policy or themselves to commit insurance fraud by it is in no way encourage or allowed by AIL.

I will quote directly from our script "The name of our company is American Income. We have been around since 1924... We are a 100% wall to wall union company... Everybody is a union member, from the guy who sweeps the floor to the CEO. We are member of the Local 277, which is the Office and Professional Employees International Union." We then present them our union membership card for OPEIU 277 Union!

No where do we start we ARE their union, we state repeatedly we work WITH their union to provide benefits their union is NOT ABLE to provide directly.

The primary policy we sell is a $10,000 burial policy which will pay out for any reason of death. There is an included AD&D policy that pays more for accidents and double and triple indemnity pay outs for specific types of accidents.

Obviously there will be dishonest insurance agents for absolutely any insurance company however do not blame AIL there is absolutely no training, support, encouragement, or allowing of INSURANCE FRAUD HERE!!
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#2 Author of original report

Your doing a great job, Mark!

AUTHOR: Mark Colbert - (U.S.A.)

Mark,

You're doing a great job working for the unknowing insurance consumers swindled by these clowns. Do not take these last two people seriously, they are AIL agents who, like members of Amway, A.L. Williams (later The Primerica Life Insurance Company) the Jim Jones' cult, or Metabolife have been brainwashed by individuals much smarter than they are.

This is a copy of a letter sent to the President of AIL. This letter was entered as evidence in a case involving more than 150 AIL victims in California. AIL got their checkbook out and settled these cases for a great deal of money.

American Income Life Insurance Company
ATTN: Mr. Roger Smith, President, CMO
P.O. Box 2608
Waco, Texas 76797-2608


Dear Mr. Roger Smith,

This letter is in reference to my recent employment with your company, American Income Life (AIL). I ended my employment with your company due to insurmountable stress and morality issues. The stress was brought on by the State General Agent (SGA), Slav Bitman, and the Managing General Agent (MGA), Joshua Robinson. Their management style was very similar to a dictatorship and was consequently, just as ruthless.

I hold a FIC designation and am currently taking classes to complete my Life Underwriters Training Council Fellowship (LUTCF) designation. I am a past member of the Million-Dollar Round Table (MDRT) and have won various sales awards, certificates, plaques, contests, and trips in my insurance career. In July 2003, I was the top producer in an Illinois AIL office. I have been in the insurance industry for more than 25 years. During this time I have performed as a debit agent - collecting premiums from clients on a monthly basis, been a General Agent (GA) managing 50 agents or more, personally consulted for individuals opening an insurance agency, managed and operated a multi-line insurance agency representing over sixty insurance companies. I hold insurance licenses in Missouri, Illinois, and Texas in life, health, accident, and property and casualty insurance. I am a Deacon with a Baptist Church in Missouri and an Ordained Minister as well.

When I applied for a position with AIL in 2003, I was told I would be making a six-figure income, and quickly move up the corporate ladder. I was told that every agent in their operation made over $60,000 last year and were on track to make more this year. After I contracted with AIL, I quickly realized this was simply not true. I was also told that everyone in the office obtained a bonus each and every month, which was again untrue. My manager assured me that I would not have to set appointments because my time was too valuable as a professional salesperson. They, AIL management, would rather pay college students seven bucks an hour to make appointments for us. However, each and every week, we would get berated and cursed out if we did not set at least 2-4 appointments over the phone on a daily basis (and between servicing our clients and going on appointments).

Our normal workday usually began between 8:30 and 9:00 a.m. and usually ended between 9:30 p.m. and 12:30 a.m. Our drive time home (which was anywhere from 30 minutes to 4 hours) was also very stressful due to our leaving late each day from the daily meetings. The following morning, we were still expected to report to work between 8:30 a.m. and 9 a.m.- regardless what time we arrived home the previous night. This placed extreme pressure and stress on the agents, especially those of us with families. After the long morning meetings we would leave for our scheduled appointments (anywhere from 5-6 per day). The appointments, coupled with the long drive and lack of sleep, insured we did not return home until well after 10:00 or 11:00 p.m. On most evenings, we would not return home until after midnight. We were constantly told and shown that management did not care about the agents or their families - only sales.

On Monday mornings, we were required to be in the office at 8:30 a.m. These meetings were usually tainted with obscenities, vulgarities, and discouragement instead of being informative, motivational, and encouraging. Mr. Slav Bitman was constantly reminding everyone that unless we were making more than $1.2 million per year (as he claimed he was) he didn't want to hear anything we had to say. Therefore, he was very unapproachable. He refused to accept ideas from agents and often said that we could not tell him anything because we were all losers. He said that he didn't need any of us and if he had to pick up his pitch kit and start over in the field he would do so. He also made it known several times that he had job security because he was writing 800% of quota and that he would always be there (SGA in the Swansea office). Mr. Bitman went on to say the company would be foolish to get rid of him, but the agents in his operation were expendable.

During the Monday meetings, agents were forced into Slav Bitman's world of braggadocio. He constantly told us about all the brand-new cars (20 at last count) he purchased and the $30,000 stereo he had installed in the most recent one. Mr. Bitman often bragged about how he could buy his wife anything she wants and that if we didn't (as a sales force) sell another policy this year he would still have money in the bank and all his bills paid. We were often kept in the office ranging from 8:30 a.m. until 12:00 noon or longer, often making us late or missing our first appointment completely. Usually on Mondays and Saturdays we were required to be in the office at 8:30 a.m. Tuesday through Friday we were required to be in the office at 9:00 a.m. the hours we were required to maintain were not only unnecessary and inhumane, but also nonnegotiable. Usually we would sit around (giving the illusion we were busy) for several hours each morning before the meeting with Josh Robinson would begin. Eventually this meeting would take place around 11:00 a.m. As was often the case, we would discuss the same material each and every day and these training meetings usually ended up being nothing more than a negative session with the agents being cursed at and belittled.

The agents were constantly subjected to obscenities, vulgarities and temper tantrums at the hand of Mr. Robinson. We were also threatened and degraded in front of the other agents. Mr. Robinson would also resort to throwing items at agents he was disappointed with. Needless to say, this behavior was totally unprofessional and created an extremely hostile work environment.

Mr. Josh Robinson told the agents we would be charged for appointment lead "packs" if we did not increase production. In the AIL agent's handbook, article 18 section 2 states: an agent shall not be charged for leads or appointments. However, we were often threatened to work in the phone room without compensation as punishment for not complying with management demands. On many occasions, agents would be sent home (myself included) and not allowed to go on pre-set appointments as punishment for expressing a difference of opinion. On one occasion, I was told by Mr. Robinson "to get the f*** out of his f***ing office" during a meeting for disagreeing with one of his many incorrect insurance statements. As a 50% agent, I was charged $100 on a weekly basis if I did not meet our quota. This quota of having to write $3500 in annualized life premium each week was often unattainable. Many weeks would go by with only a few of the agents in the Geneaser-Bitman operation actually meeting the required quota and not having to pay the $100 fine. Obviously, many agents realized that this fee was actually paying the phone room to set appointments for us and helping to pay for the leads themselves. This fee was paid directly to Josh Robinson, who in turn said he had to pay Slav Bitman $2700 on a weekly basis to cover the phone room expenses (see attachment-copy of check payable to Mr. Robinson).

The Swansea AIL office exhibited many violations of insurance law and guidelines. Such as: rebating, signing clients names to various paperwork (including applications and modifications with or without their knowledge), and completing applications in the office instead of the potential insured's home. The office also misrepresented sales and falsified records on a regular basis to give the appearance the agency was performing better than it actually was. Several agents complain that they did not receive their last paychecks after leaving are being discharged. In some cases these checks were not sent back to the company, nor the agent but instead placed a manager's personal account.

I was very troubled by the misrepresentation of AIL products offered to union members. All agents were required, (forced) to learn the sales pitch word for word. This "pitch" was scripted and very misleading. For example, we represented ourselves, not as insurance salespeople, but instead as Union Benefit Representatives. There were many union members I and other agents visited that refused the free benefits, and also refused the insurance and accidental death plans. In these cases, we were instructed to tell the potential clients that everyone takes these benefits which was a lie. Also, we would lead to clients to believe that the accidental coverage was a true hospital indemnity (instead of accidental only coverage) paying out benefits as needed. We would tell the customer that the accidental coverage "pays above and beyond any other coverage they may have. This is false. For example, if any covered dependent children were on Medicaid, the insured would not receive any money for their injuries (since money received in benefits will be intercepted by the governmental agencies involved). We also explained waivers in the policy that were included (lay-off and strike) but were instructed not to explain that there were many restrictions regarding collection of those benefits. In addition, we would tie the union into our sales pitch quite often. For example, we would say it's done per design, by the union, so it's very affordable for us. The union wants us covered because that's how we keep working; these are our benefits, right? As long as you step up and take care of your benefits, they give the farm away to (your family) in the end. Again, insinuating that if we purchased these benefits the union will take care of our families when we die.

In the Freedom of Choice (FOC) sales pitch, we were taught to mislead the elderly. They are told the union has sent us out to find out if you ever thought about - or invested - in any kind of pre-paid or prearranged funeral. Obviously, this statement is untrue. A few other examples of misrepresentation included, the union says the average funeral is from $6000-$12000. Also, there are three ways the union does not want you to pay for final expenses, now the union has come up with a way to protect your family from these things and it is similar to a prepaid funeral, the union is not going to let me give you (that much coverage), I'm sorry; the union is only going to let me give you (the amount of coverage we're attempting to sell the client). These statements are very misleading because they insinuate that the customer's local union is heavily involved in the decision for them to take the benefits. The following scenario we used was the most misleading. The agents tell the client that the FOC will prevent them from having to wait before the insurance policy becomes liquid. We would tell them AIL did not need a death certificate, unlike other insurance companies, and all the death benefits would be made available in a matter of days, not weeks or months. We stated that we would direct deposit proceeds in the funeral home account (not true) in a couple of days and the balance would be sent to the survivor a couple of days later (also not true). We also stated that the funeral home would fax a copy of the final expenses to AIL and we would match them to union specifications to ensure our customers were not taken advantage of. As a experienced insurance agent, I knew this sounded suspicious. I contacted AIL's home office in Waco, Texas and spoke with representatives in the claims department about this issue. I was told that the statements were completely untrue. In fact, the benefit payment period could not be predicted due to coroner's reports and doctor's records, which could take up to three months or more before they are received. These mandatory reports must be received prior to benefits being paid out.
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#3 UPDATE Employee

WHAAAAAAT!

AUTHOR: Moby - (U.S.A.)

Hey Colbert, how much income did you report to the government last year?
The best boy scouts are always the biggest frauds.

Ian is 100% correct, either your story does not wash, or your numbers are way off.

If that particular agent sold policies in a fraudulent manner, prosecute him, throw the book at him, he deserves it. But you better come up with some better evidence than that ridiculous story about the old crying woman.

Every single policy sold by my agency is explained to the core. This is how I was trained, my manager was trained, his manager was trained, and my own trainees are trained. This is not a company problem, this would fall into the category of an individual agent problem. The company would never condone this type of behavior, they would boot his a*s in a hot second. Why would a company with awesome financial status and supererior claims paying abilities owned by Torchmark, one the largest life insurance providers in the free world, knowingly allow a crooked agent to bamboozle clients and jeopardize facing a lawsuit that could potentailly cost them billions.

All for $120 in ANNUAL premiums?

When you really think about it, nothing you said makes any sense at all.

And don't mess with SENIOR 10. That is a policy for the otherwise uninsurable. I have senior citizen clients who cannot thank me enough for issuing them a policy when other companies wouldn't even speak with them. Call Prudential and tell them you're an insulin-dependent diabetic with high blood pressure, a heart murmur and you recovered from skin cancer 5 years ago, let me know if they call you back to set an appointment. I would go see them.
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#4 UPDATE Employee

WHAAAAAAT!

AUTHOR: Moby - (U.S.A.)

Hey Colbert, how much income did you report to the government last year?
The best boy scouts are always the biggest frauds.

Ian is 100% correct, either your story does not wash, or your numbers are way off.

If that particular agent sold policies in a fraudulent manner, prosecute him, throw the book at him, he deserves it. But you better come up with some better evidence than that ridiculous story about the old crying woman.

Every single policy sold by my agency is explained to the core. This is how I was trained, my manager was trained, his manager was trained, and my own trainees are trained. This is not a company problem, this would fall into the category of an individual agent problem. The company would never condone this type of behavior, they would boot his a*s in a hot second. Why would a company with awesome financial status and supererior claims paying abilities owned by Torchmark, one the largest life insurance providers in the free world, knowingly allow a crooked agent to bamboozle clients and jeopardize facing a lawsuit that could potentailly cost them billions.

All for $120 in ANNUAL premiums?

When you really think about it, nothing you said makes any sense at all.

And don't mess with SENIOR 10. That is a policy for the otherwise uninsurable. I have senior citizen clients who cannot thank me enough for issuing them a policy when other companies wouldn't even speak with them. Call Prudential and tell them you're an insulin-dependent diabetic with high blood pressure, a heart murmur and you recovered from skin cancer 5 years ago, let me know if they call you back to set an appointment. I would go see them.
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#5 UPDATE Employee

WHAAAAAAT!

AUTHOR: Moby - (U.S.A.)

Hey Colbert, how much income did you report to the government last year?
The best boy scouts are always the biggest frauds.

Ian is 100% correct, either your story does not wash, or your numbers are way off.

If that particular agent sold policies in a fraudulent manner, prosecute him, throw the book at him, he deserves it. But you better come up with some better evidence than that ridiculous story about the old crying woman.

Every single policy sold by my agency is explained to the core. This is how I was trained, my manager was trained, his manager was trained, and my own trainees are trained. This is not a company problem, this would fall into the category of an individual agent problem. The company would never condone this type of behavior, they would boot his a*s in a hot second. Why would a company with awesome financial status and supererior claims paying abilities owned by Torchmark, one the largest life insurance providers in the free world, knowingly allow a crooked agent to bamboozle clients and jeopardize facing a lawsuit that could potentailly cost them billions.

All for $120 in ANNUAL premiums?

When you really think about it, nothing you said makes any sense at all.

And don't mess with SENIOR 10. That is a policy for the otherwise uninsurable. I have senior citizen clients who cannot thank me enough for issuing them a policy when other companies wouldn't even speak with them. Call Prudential and tell them you're an insulin-dependent diabetic with high blood pressure, a heart murmur and you recovered from skin cancer 5 years ago, let me know if they call you back to set an appointment. I would go see them.
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#6 UPDATE Employee

WHAAAAAAT!

AUTHOR: Moby - (U.S.A.)

Hey Colbert, how much income did you report to the government last year?
The best boy scouts are always the biggest frauds.

Ian is 100% correct, either your story does not wash, or your numbers are way off.

If that particular agent sold policies in a fraudulent manner, prosecute him, throw the book at him, he deserves it. But you better come up with some better evidence than that ridiculous story about the old crying woman.

Every single policy sold by my agency is explained to the core. This is how I was trained, my manager was trained, his manager was trained, and my own trainees are trained. This is not a company problem, this would fall into the category of an individual agent problem. The company would never condone this type of behavior, they would boot his a*s in a hot second. Why would a company with awesome financial status and supererior claims paying abilities owned by Torchmark, one the largest life insurance providers in the free world, knowingly allow a crooked agent to bamboozle clients and jeopardize facing a lawsuit that could potentailly cost them billions.

All for $120 in ANNUAL premiums?

When you really think about it, nothing you said makes any sense at all.

And don't mess with SENIOR 10. That is a policy for the otherwise uninsurable. I have senior citizen clients who cannot thank me enough for issuing them a policy when other companies wouldn't even speak with them. Call Prudential and tell them you're an insulin-dependent diabetic with high blood pressure, a heart murmur and you recovered from skin cancer 5 years ago, let me know if they call you back to set an appointment. I would go see them.
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#7 UPDATE Employee

just to correct mark on a couple things

AUTHOR: Ian - (U.S.A.)

I'm not going to comment on everything you posted, just on a couple things, first, the senior ten thing. The senior 10 is a graded policy (like you said), what you did not say is that these policy's are designed for individuals with health problems who cannot qualify for ordinary whole life insurance. Also, it cannot be outlived because its guaranteed renewable (at least in my state). The price goes up 10 points every 10 years.

hmm, you also said something about a sixty seven year old man paying 323 dollars a year for an 1800 policy, what kind of policy is this supposed to be? You know that wouldn't get through any insurance commissioner. explain

next, that story is a joke, you could switch a few words around and apply that to any company. Your story is saying that we didn't pay her claim because her husband died of natural causes. Ok, so if we had sold them a 50k accidental death policy how come earlier you mentioned the agent overcoming price objection. A 50k ADB would cost about $50 a year. That story was the most generically-lame piece of trash i've ever read.

i know you are trying to do your job and honestly i appreciate what it is you do. but you should spend more time getting company's in trouble that sell UL to 67 year olds, that has more potential to be damaging than our senior ten.
sheesh
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#8 Consumer Suggestion

wow, powerful stuff

AUTHOR: Jay - (U.S.A.)

all past present and future AIl employees should be required to read this thread from Mark. its scary to think how many trusting union members have been duped by these undereducated fast talking frauds in cheap suits.
please keep us posted in your investigation.
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#9 Consumer Suggestion

wow, powerful stuff

AUTHOR: Jay - (U.S.A.)

all past present and future AIl employees should be required to read this thread from Mark. its scary to think how many trusting union members have been duped by these undereducated fast talking frauds in cheap suits.
please keep us posted in your investigation.
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#10 Consumer Suggestion

wow, powerful stuff

AUTHOR: Jay - (U.S.A.)

all past present and future AIl employees should be required to read this thread from Mark. its scary to think how many trusting union members have been duped by these undereducated fast talking frauds in cheap suits.
please keep us posted in your investigation.
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#11 Consumer Suggestion

wow, powerful stuff

AUTHOR: Jay - (U.S.A.)

all past present and future AIl employees should be required to read this thread from Mark. its scary to think how many trusting union members have been duped by these undereducated fast talking frauds in cheap suits.
please keep us posted in your investigation.
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