Prudential Ins letter- seems odd to me

[CoarsegoldKid]

I don't know what to believe. Either the California legislature is smoking crack- actually might be- or does Prudential think we are stupid.

 

On Prudential letter head

 

Dear Sir or Madam

Recent California law requires that we notify you that if you are considering changes in the status of your policy, you should consult with a licensed insurance or financial advisor.

Thank you for choosing us for you insurance needs.

 

Duh! So they are telling me that by law they need to tell me I must talk to a professional if I consider a status change in the policy I have with them. There's a friggin law. Who on earth did they think I was going to talk to about a status change to my policy with Prudential - Allstate, or my neighbor Bob. Hey Bob!

 

[Danny caddyshack Noonan]

Dang. I'm relieved they passed that law. Better that than working on a budget, or reducing waste.

[notacop]

It means Don't talk to Bob. Unless he is a licensed Ins dude. Before the law, Bob would have been the ideal guy to consult. Now, by law, you have to pay a fee to service your policy and the Ins Co gets more money. It's the American way.

[Survived-til-now]

The operative word is "should" - you should consult, NOT you have to consult.

 

You have been advised to take advice, their responsibility is discharged. Go talk to Bob if it helps......

 

More seriously, depends on the insurance as to whether you should take advice - if its life insurance, assurance or something major - perhaps you should consider taking professional advice.

[JayW]

A "licenced" financial advisor, whatever that means, may know less than you do about insurance or have glaring conflict-of-interest issues. I don't understand the letter either. It certainly is not helpful.

 

Jay

[bmw_rider]

Worse than Bob you might ask someone on a cyberspace bulletin board what thier experience with a particular seller has been...... thereby continuing with the 3rd most popular thread.

[Survived-til-now]

I am perplexed as to why this letter is not seen as helpful....

 

People over here have been making some really dumb financial decisions and have actually managed to pin all the blame on financial advisers "mis-selling" products. In some cases the advisers did sell the wrong product but in others it should have been obvious to the person that they were taking a risk with their money.....

 

Extending the trend into the world of insurance...

 

John Doe (same as our Mr Jones) decides to let his insurance policy lapse. The Prudential has now to tell J Doe that he should seek professional advice so that the adviser can warn Mr Doe that he will be uninsured and wouldn't be able to make a claim in future.... Prudential cannot give advice because they are not independent.

 

I suppose you don't live in a nanny state where everyone is forgiven their stupidity and encouraged to seek compensation from someone else....

 

That is what is at the heart of the new laws - protecting people from being stupid

[cali_beemer]

Sounds like another nanny law in efforts to prevent us from hurting ourselves.....

[upflying]

People over here have been making some really dumb financial decisions and have actually managed to pin all the blame on financial advisers "mis-selling" products. In some cases the advisers did sell the wrong product but in others it should have been obvious to the person that they were taking a risk with their money.....

 

Don't worry we have people over here too that fit your description. Apparently many people bought homes about 5 years ago from real estate and financial advisors who sold the product to people who obviously could not afford the homes.

After signing contracts and eventually losing the homes to foreclosure, these people are now blaming the RE agents, financial advisers and the government for the mistakes of mis-selling the home to them.

Some of these people are seeking recompense from the government for their stupidity.

[JayW]

I am perplexed as to why this letter is not seen as helpful....

 

It is not helpful because it assumes that we are not capable of making sound financial and insurance purchasing decisions without individualized help from a so-called expert. Many "licensed" financial advisors and insurance specialists have steered their clients the wrong way, either out of sheer ignorance or for the sake of a commission check. Of course, some - usually the fee-only advisors - can be very helpful.

 

As always, Caveat emptor.

 

Jay

[CoarsegoldKid]

I am perplexed as to why this letter is not seen as helpful....

 

 

 

John Doe (same as our Mr Jones) decides to let his insurance policy lapse. The Prudential has now to tell J Doe that he should seek professional advice so that the adviser can warn Mr Doe that he will be uninsured and wouldn't be able to make a claim in future.... Prudential cannot give advice because they are not independent.

 

 

John Doe is considering to add a beneficiary to his policy. I see no reason for him to go to Allstate to seek advice on doing so. I just don't. So that ain't it. He considers dropping the policy and wants to know the consequences of those actions so he goes to Allstate. Again, I don't think so. He's better off going to Bob.

 

[Patallaire]

Actually in NY State it is required, there is a process. If you are changing a policy there is a Reg. 60 requirement which discloses all the info on your existing policy and the on the proposed policy, a comparison is done and signed by the client, this will take several weeks and the clients new policy can not be implemented until this process is done and all parties sign off on the comparison. This was regulated to prevent abuse by agents on switching policies to benefit only themselves. It actually helps focus the benefits or not of switching a policy. In many cases the clients have been in a stronger position by just adding to their existing coverages. However in many cases it is advantageous to switch as the mortality tables may have changed and the client requires more coverage or has a different reason for owning the policy. Oh and by the way, many "licenced" financial advisors have steered their clients the right way!

[FLrider]

I don't know what to believe. Either the California legislature is smoking crack- actually might be- or does Prudential think we are stupid.

 

On Prudential letter head

 

Dear Sir or Madam

Recent California law requires that we notify you that if you are considering changes in the status of your policy, you should consult with a licensed insurance or financial advisor.

Thank you for choosing us for you insurance needs.

 

Duh! So they are telling me that by law they need to tell me I must talk to a professional if I consider a status change in the policy I have with them. There's a friggin law. Who on earth did they think I was going to talk to about a status change to my policy with Prudential - Allstate, or my neighbor Bob. Hey Bob!

 

I think the operative word here is "status change". I'm not sure that it means EXchanging or redeeming the policy for another one although, I would tend to think it SHOULD mean that.

 

In other words, I can't imagine the company (or the state) would care who you name as beneficiary or whose address you want statements sent to.

 

I think what they are concerned about is redeeming or otherwise exchanging your policy for one that is being offered as being "better", "cheaper" or some other adjective that makes you think you have an inferior product.

 

That's where they suggesting asking a professional.

 

Does a "license" make someone a professional? Not necessarily but it at least indicates that the licensed person has demonstrated some level of proficiency.

 

This has come about as a result of the misunderstanding by the public of the vernacular used in the industry. Many people wrongfully believe that a "financial planner" has passed some sort of proficiency exams. In fact, there is no current licensing or recognition of the words "financial planner". Anyone can call themselves that.

 

School Teacher by day, Financial Planner (a la AL Williams) at night.

 

Many Life Insurance Agents (no offense intended) call themselves "Financial Planners" because they learned that getting in the door under the title Life Insurance Agent, was very difficult.

 

Also, some products which have equity charateristics are NOT regulated by the securities industry (equity index annuities) and are sold by "non securities licensed" agents (remember the proficiency argument?). So, the State, I guess, is just telling you to make sure you consult professional help. Good Luck with that.

[Lets_Play_Two]

I am perplexed as to why this letter is not seen as helpful....

 

It is not helpful because it assumes that we are not capable of making sound financial and insurance purchasing decisions without individualized help from a so-called expert. Many "licensed" financial advisors and insurance specialists have steered their clients the wrong way, either out of sheer ignorance or for the sake of a commission check. Of course, some - usually the fee-only advisors - can be very helpful.

 

As always, Caveat emptor.

 

Jay

 

This is along the saME LINES AS THE NOTICE ON YOUR LAWN MOWER NOT TO PUT5 YOUR HANDS UNDER THE DECK WITH THE MOTOR RUNNING, OR THE NOTICE ON YOUR CUP OF COFFEE THAT IT IS HOT.

 

Legislatures require these because they do think we are dummies , and the dummies will sue.

[Tony_K]

THE NOTICE ON YOUR LAWN MOWER NOT TO PUT YOUR HANDS UNDER THE DECK WITH THE MOTOR RUNNING

 

Legislatures require these because they do think we are dummies , and the dummies will sue.

 

When I was 12ish a neighborhood kid's mother lost 3 of 5 fingers reaching under to pull out a stick... she was permanently

signaling "hang loose!" with that hand after the event.

[DavidEBSmith]

I used to work with a mechanical engineer who was missing the last knuckle on every finger on one hand because he decided to turn the mower over to see why it wasn't running right and just reached under it. A mechanical engineer. Yes, we are dummies.

 

Today I was waiting for a hearing and listening to one of my team talking to a guy on a business license denial case. The guy had a guy with him who was going on (wrongly) about the law that applied, and when we asked if he was a lawyer, he said no, he's a "consultant". Fortunately for the guy, in this state his corporation must be represented by a lawyer, so maybe he'll get some actual legal advice before the next court date.

 

Real professionals often have professional liability insurance so that when they screw up and the client suffers, the client has some recourse. Your neighbor Bob probably doesn't have malpractice or E&O insurance.

 

[Patallaire]

In other words, I can't imagine the company (or the state) would care who you name as beneficiary or whose address you want statements sent to.

Again, there are laws that state who the beneficiary can or can not be, there needs to be an insurable interest, I , as an example, can not buy a policy on you as I have no insurable interest, thatis how it works. Also, all address changes should be verified by the clients and teh agent to prevent scams. Insurance is a highly regulated product and creates a great deal of wealth if used correctly.

[Quinn]

Reminds me of my fried who bought fire, theft and flood insurance for his home for $50 a year. When someone broke into his house, he filed a claim. The insurance agent asked if it were on fire when they broke in. No, it wasn't. Was it flooded? No. Well then, he's not covered. Should have bought the fire, theft, OR flood insurance; but that's a lot more money.

 

Guess I need to put a smiley face on this.

 

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