LIBRA Insurance Partners Protects Policyholders and Producers in Voya/Resolution Life Transaction in Colorado
LIBRA's Contribution to the Regulatory Process Resulted in the Addition of Key Mandates Required for the Transaction to Close
LINTHICUM HEIGHTS, Md., Jan. 27, 2021 /PRNewswire/ -- LIBRA Insurance Partners, one of the nation's largest insurance marketing organizations, successfully petitioned the Colorado Department of Insurance to add restrictions and mandates to the Voya/Resolution Life transaction prior to approving the close of the transaction. These conditions were proposed in order to protect the rights of the policyholders of Voya products whose insurance policies would be included in the transaction, as well as the insurance agents who represented the Voya policies to their clients.
In December 2019, Voya publicized its agreement to sell its Individual Life and other legacy non-retirement annuities businesses to Resolution Life. LIBRA Insurance Partners subsequently took the unusual step of intervening in the Colorado regulatory proceeding as an "Interested Party" because, collectively, its partner agencies had written thousands of policies over the years with Voya, and its predecessor, ING Life. LIBRA Insurance Partners joined Valmark Financial, a leading broker-dealer, as "Interested Parties" in the regulatory action to ensure their respective policyholders and agents/producers would be properly protected in the transaction.
"LIBRA Insurance Partners collectively sold hundreds of millions of dollars of premium with Voya and its prior companies, representing thousands of policies. We have a great deal of business impacted by this transaction. Customers purchased these policies as a long-term promise and they deserve to be represented in a transaction such as this," said William (Bill) Shelow, CLU®, ChFC®, CPCU®, LLIF, President and CEO of LIBRA Insurance Partners. "Resolution Life is much less diversified as a company than Voya, and we were concerned with the future performance and serviceability of these products with a transfer of ownership. We wanted to ensure that Resolution Life maintained the capital required to service policyholders uninterrupted rather than pay dividends to shareholders."
LIBRA Insurance Partners, represented by James S. Bainbridge, Esquire of The Bainbridge Law Firm, LLC in Plymouth Meeting, Penn., was successful in petitioning the Colorado Department of Insurance to place, what some industry analysts refer to as unprecedented, restrictions on Security Life of Denver, the individual life unit Resolution Life purchased from Voya. "We were extremely pleased that the Department of Insurance took the time to conduct a very thorough regulatory review and implement several important restrictions we collectively requested as Interested Parties," Bainbridge stated.
The restrictions include the following: (1) limiting upstream profits until the organization maintains a risk-based capital (RBC) that has exceeded 600 percent for the first four years after the transaction closed; (2) instituting a capital maintenance requirement of a minimum of 350 percent per year; (3) verification and monitoring of Resolution Life's 100-million-dollar commitment for improvements to systems and processes for servicing policyholders; and (4) improving access to policy information and policy servicing for policyholders, advisors, agents and BGAs.
Commenting on the restrictions, Shelow stated that "LIBRA Insurance Partners is proud to have been instrumental in providing additional access to policy information our partners and their advisors did not have access to originally." He added, "LIBRA Insurance Partners believes that our obligations to clients exist well after the sales process takes place, and we are committed to taking every step available to us to protect the policyholders and further ensure we deliver on the promises our partner agencies and their advisors and agents make to their clients."
About LIBRA
LIBRA Insurance Partners is an insurance marketing organization that is dedicated to serving its partners and their brokers in navigating the marketplace. They differentiate themselves by offering industry-leading knowledge, resources and education in order to provide financial security for families and businesses. Formerly known as LifeMark Partners and BRAMCO Financial Resources, the united firm is committed to the ongoing development and enhancement of robust, proprietary resources for its partners that revolutionize the industry. The organization's foundation is built on collaboration and sharing best practices; partners grow their agencies together through regular training, networking and educational opportunities. To learn more about becoming a LIBRA partner firm, visit www.LIBRAInsurancePartners.com or call (410) 837-3022.
About The Bainbridge Law Firm, LLC
James S. Bainbridge, Esquire is the founder and managing director of The Bainbridge Law Firm, LLC, a business litigation and counseling boutique that focuses on providing results-oriented legal representation that protects client resources. James regularly represents life insurance carriers, agents, broker-dealers, and in certain select cases insureds, in complicated coverage disputes. He has litigated life insurance matters in courts across the country and both writes and speaks regularly on developments in the industry. James was a regular contributor to the Association for Advanced Life Underwriting's Essential Wisdom Series, a trusted source of actionable technical and marketplace knowledge for AALU members—the nation's most advanced life insurance professionals. The Wall Street Journal has also mentioned/quoted James in two recent articles, "Life Insurance Customers Push Back Over Surprise Cost Increases" and "Happy 100th Birthday! There Goes Your Life Insurance." To learn more about James or The Bainbridge Law Firm, visit www.thebainbridgelawfirm.com or call (484) 690-4542.
SOURCE LIBRA Insurance Partners
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