Posted by (American Life Insurance Guide 2021/02/08 News）Following a petition from an insurance brokerage agent, the Colorado Insurance Bureau filed a complaint against VoyaCompletely sell life insurance businessThis transaction imposes specific requirements for restrictions.
The transaction restriction requirement is not only to protectVoya LifeThe holder of the policy also protects the life insurance brokerage agencies and brokers who sell the policy.
American life insurance industry analysts believe that this situation is unprecedented.
Event review
At the end of 2018 on the American Life Insurance Guide websiteReportIn, Voya (Woya Life, also known as Voya Life)Announced the personal life insurance business and other related businesses, Sold to an insurance company called "Resolution Life".The transaction was originally planned to be completed by the end of September 2020.
In the past many years, many well-known insurance agents, distributors, and cooperative insurance agencies and insurance brokers in various states in the United States have sold a large number of Voya insurance policies.
After Voya announced the sale of individual life insurance business, these agency companies, represented by Valmark, LIBRA and other institutions, formed an alliance, required to be the "interested parties" of the transaction, and requested the regulatory authorities to take action to ensure their customers and agency/brokers People are properly protected in this transaction.
The voice of the insured cannot be buried
"(We)... On behalf of Voya and its previous parent company, we have sold hundreds of millions of dollars in premiums and thousands of insurance policies. This transaction has affected a lot of our business. Customers buy these insurance policies because they are a A long-term commitment, they should have their voice in such a transaction," said William, CEO of LIBAR Insurance Partners.
"Compared with Voya, Resolution Life Insurance Company is much less diversified, and we are concerned about the future performance of these products after the transfer of ownership, as well as the subsequent management and maintenance. We want to ensure that Resolution Life Insurance Company's retention can continue. The capital needed to provide services to policyholders, rather than paying dividends to investors’ shareholders.”
The Insurance Bureau issued 4 restrictions
Through the successful petition represented by the attorney, the Colorado Insurance Bureau issued restrictions that were considered "unprecedented" by industry analysts.
The transaction restrictions issued by the Insurance Bureau include:
(1) Conditionally restrict the profits of upstream institutions, and maintain more than 4% of RBC capital until the first 600 years after the completion of the transaction;
(2) Establish a capital maintenance requirement of at least 350% per year;
(3) Verify and monitor the commitment of Resolution Life Insurance Company to spend US$1 million to improve the service system and process of policyholders;
(4) Improve the access of policy holders, advisers, brokers, and general brokerage agents to policy account information and policy services.
At present, due to the low level of information integration of the company's business, coupled with the issue of handover after the sale, the original Voya policyholder can only actively inquire about the policy status through telephone and mail. (End of full text)
appendix
1. "LIBRA Insurance Partners Protects Policyholders and Producers in Voya/Resolution Life Transaction in Colorado", 01.27.2021, PRnews, https://prn.to/3rBGET3
2. "Voya Financial Individual Life In-force Frequently Asked Questions", https://bit.ly/2N6N1ig
