IMPORTANT CHANGES TO AGENT COMMISSIONS
Colorado Bankers Life Insurance Company® (CBLife) entered into a rehabilitation process in North Carolina on June 27, 2019. A state-appointed rehabilitator and his designees are overseeing operations on site and is acting to protect the assets of their policyholders.
At the request of the rehabilitator, CBLife is no longer distributing commission payments to agents during its rehabilitation process.
CBLife will first apply any earned renewal commission to offset any debit balance owed by the agent. After the debit balance has been paid off, CBLife will accumulate earned renewal commissions while the rehabilitation is in place.
The payment of the accrued commission in the future is not guaranteed.
In the event the rehabilitator and the court determine all policyholders liabilities can be reasonably satisfied, any remaining funds will be used to satisfy general creditor claims — including accrued commissions — based on seniority.
Note: Claims will be paid according to the policy contract.
Additional details can be found on the NC Department of Insurance website: http://www.ncdoi.com/FAR/Regulatory_Actions.aspx
Colorado Bankers Life realizes this is a challenging time. They will continue to work with the state to keep you updated.
This is neither legal nor accounting advice. If you have questions, please consult a lawyer or accountant. The information included in this post was provided by the entity referenced herein.