by John Darer® CLU ChFC MSSC RSP CLTC
Executive Life was already under scrutiny by the major Wall Street brokerage house Merrill Lynch (now a subsidiary of Bank of America Corporation) as well as other brokerage houses in 1983 .Why not certain structured settlement firms, plaintiff lawyers and judges?
"'There is no question that the brokers who sell annuities are taking a much harder look at the insurance companies, and at what they are doing with the premiums from the policies they sell,'' Perrin H. Long, an analyst with Lipper Analytical Services, said last night". New York Times November 3, 1983.
In the same article came the following report:
"In a memorandum sent to its account executives, Merrill Lynch Life Agency, a Merrill Lynch subsidiary that sells annuities and receives commissions from the issuing companies, said that after Dec. 1, it would no longer handle annuities issued by Charter Security Life, a subsidiary of the Charter Company, the Capital Life Insurance Company, Old Republic Life of New York, the John Alden Life Insurance Company and Executive Life". (Ibid para. 8)
I've already reported how the Wall Street Journal reported in 1984 that EF Hutton, whose sales contributed to 20% of First Executive's sales, cut bait with the junk bund glutton. If only "people" HAD "listened" to EF Hutton!