Broker World

American National

David A. Behrens has been elected president and chief operating officer of American National Life Insurance Company of New York. He will continue as a member of the ANICONY board of directors.

Behrens has been with American National Insurance Com­pany for 14 years and continues his role as executive vice president of the Independent Marketing Group.

American National Insurance Company, Galveston, TX, has introduced ANICO Signature Term series, which includes multiple level premium periods of 10, 15, 20 and 30 years, as well as annual renewable term.

Signature Term Express, a non-invasive and accelerated underwriting process, is available up to $250,000 for ages through 65. ANICO Signature Term Express facilitates 48-72 hour turnaround on approvals with no medical exams or invasive procedures on most cases.* Underwriting classes are Standard and Substandard and all term periods are available.

ART is American National’s lowest** starting premium and guarantees 10 years of competitive premium rates. Signature Term ART is convertible to 20 or 30 year level term within the first three years for issue ages 52 and younger. Accelerated benefit riders for critical, chronic and terminal illnesses are also available with ANICO Signature Term. 

 *The program requires completion of the full application with no additional requirements by you. An underwriting decision should be made within 72 hours using the information from the application, Medical Information Bureau and the Prescription Database. Motor Vehicle Report, phone interviews, Attending Physician’s Statements and exams may be required on certain applicants.

 **Males under age 26 may have an initial premium higher than 10 year level term. 

Robert J. Hoefer

1926–2012

The brokerage community has lost a true moving force in the development of the insurance brokerage business as we know it, with the passing of Robert Hoefer, retired principal of Brokers Clearing House, Ltd., a West Des Moines brokerage general agency.

An honored U.S. Army veteran of World War II, Bob began his insurance career as an agent with Prudential in 1955. While with Prudential he became the first million dollar producer in the state of Iowa.

In 1966 he and his brother Bill started The Administrators, a TPA and health insurance provider. They, with their sons, built the business into a multi-million dollar premium operation, insuring school districts, municipalities, businesses and associations. In 1975 he purchased Brokers Clearing House, building the agency on product, service and underwriting expertise.

Bob was a tireless advocate for the betterment of the life brokerage industry. He was a member of the original organizing committee that met to discuss the founding of the National Association of Independent Life Brokerage Agencies (NAILBA) and worked diligently within that organization for many years. He was a lifelong NAIFA (NALU) member, a past president of LIFE, Inc., a founder of LifeMark Partners, Inc., and a life and qualifying member of MDRT.

Bob was always active in his community, instrumental in raising funds for numerous organizations and a long-time political activist.

Bob left behind a son, Mark Hoefer, three daughters—Barbara Crowley, Gail Merritt and Sara Silverberg, eight grandchildren and two great grandchildren. He was preceded in death by his beloved wife Dorothy.

Bob was a man of integrity, honesty and confidence, whose diligence and dedication to his craft allowed him to prosper, following his passion for the brokerage industry and the people in it. The brokerage industry owes a debt of thanks to Bob Hoefer (as does Broker World) and a fond farewell.

Rhonda L. Hagelman

1955–2012

The Broker World family has lost one of our dearest friends with the passing last month of Rhonda Hagelman, wife of Broker World columnist Ron Hagelman, Jr. Rhonda leaves behind daughter Ashley Hagelman, sons Ron Hagelman III and Jeffrey Hagelman, four grandchildren and many other loving family members and countless friends.

Rhonda began her insurance career in 1984 as a Penn Mutual agent and spent years in personal production as well as assisting Ron in many of his business endeavors. In 1999 she acquired Opportunity Management, Inc., a brokerage general agency in New Braunfels, TX, serving hundreds of life, health, annuity, disability income, long term care and group accident agents in Texas and beyond. In the early 2000s she formed her own small marketing group, IPA, with friends Leo Corsetti and Russ Bock. She became a board member of a larger marketing group, Diversified Marketing Group, or DMG, in 2004, and had served as treasurer of that group for the last six years.

A mainstay at long term care insurance conventions and conferences, Rhonda traveled with Ron throughout the country helping spread the message of America’s greatly underserved lifetime need—LTC insurance. In brokerage circles they were known as one entity—“Ron and Rhonda.”

Rhonda was active in the New Braunfels business community and sidelined as the facility coordinator for The Best Darn Barn, a special events venue owned by the Hagelmans. She was an expert dealing with bridezillas and their mothers (according to Rhonda, the moms were typically the more “challenging” of the two).

Memorial donations may be made to Hope Hospice of New Braunfels.

Rhonda was a dear personal friend, as well as a great example of the caring dedication necessary to serve our industry well and ultimately make a difference in the lives of countless families. She will be long remembered and sorely missed.

Minnesota Life

Minnesota Life Insurance Company will replace its existing term product, Advantage Elite, with Advantage Elite Select in all states except New York, effective May 21.

Advantage Elite Select offers: a guaranteed death benefit for 5, 10, 15, 20 or 30 years. Shortened conversion periods—5-, 10- and 15-year durations have 5-year conversion periods, and 20- and 30-year durations have 10-year conversion periods. For an additional premium, an extended conversion agreement allows an insured to extend the conversion period for the full duration of the policy or age 75, whichever is earlier. 

AIG

AIG Benefit Solutions, the group benefits division of American International Group, Inc., has introduced Income PLUS, an innovative new rider that provides a one-time, lump-sum payment in the event of a disabling condition.

The Income PLUS benefit is unique in the industry as a lump-sum benefit that is not offset or negated by any other sources of income and is paid in addition to the monthly benefits offered under the long term disability product. The Income PLUS benefit can be used by employees as they see fit, to help pay debt or medical bills or to provide a financial cushion during a period of disability.

The idea for Income PLUS  came from research showing that a significant number of disabled employees face serious financial burdens by the time they get through their LTD elimination period, which is usually six months. While short term disability helps cover some of the income shortfall during this period, employees who transition to long term disability benefits often face higher debts by the time their LTD benefits begin.

The Income PLUS rider benefit is payable immediately after the 180-day elimination period is satisfied. It offers what amounts to 12 months worth of benefit at 10 to 40 percent of income, paid as a lump sum in addition to the monthly LTD payments. The percentage paid under the Income PLUS rider varies according to the rider option selected by the employer.

The total income replacement maximum available to employees is 80 percent, including the underlying LTD plan and the Income PLUS rider benefit. For example, if the underlying long term disability plan offers 60 percent income replacement, then the Income PLUS Rider options are 10 or 20 percent.

IHC Group

Independence Holding Company announced the formation of a new company, IHC Specialty Benefits, Inc. Jeff Smedsrud, chief marketing officer of IHC, will be chief executive officer and president of the new company.

IHC Specialty will develop new health insurance products and services that are expected to be in greater demand as federal health care reform is implemented. The product lines contemplated for expansion include supplemental and ancillary insurance, such as accident, critical illness and pet insurance.

The company is partnering with large payers, accountable care organizations and distributors—both local and national—to create product and consumer solutions. 

BenefitMall

BenefitMall and CompuPay have announced a merger of the companies through an equity financing led by Austin Ventures. The combination of BenefitMall and CompuPay creates a national provider of employee benefit and payroll solutions. The company will offer complete health insurance, benefits, payroll and related products and services to small to medium-sized businesses and their employees throughout the United States. The transaction closed on May 1, 2012, and financial terms were not disclosed.

BenefitMall, headquartered in Dallas, TX, is a general agency with 32 offices in 11 states, serving a network of more than 20,000 brokers nationwide. CompuPay, headquartered in Miramar, FL, is a privately-held payroll processor in the United States with 23 offices in 14 states, serving customers in all 50 states.

Bernard DiFiore, chief executive officer of BenefitMall, will be the CEO of the new company; and Charles Lathrop, chief executive officer of CompuPay, will be the president and chief revenue officer. Both will join the board of directors of the company. Scott Kirksey, who was chief financial officer of BenefitMall, will take that role for the new company and will join DiFiore and Lathrop to form the company’s executive committee. 

Cigna Corporation

Cigna Corporation and American Financial Group have announced that they have signed a definitive agreement whereby Cigna will acquire Great American Supplemental Benefits Group, a manufacturer, distributor and marketer of supplemental health insurance products in the United States. The transaction is expected to close during the second half of 2012 following customary regulatory approval. Great American’s team, led by President Brad Wolfram, will join the Cigna ­organization. 

Diversified Brokerage Services

Diversified Brokerage Services, Inc. (DBS) has announced that Kip Barton, Tim Foley, Charles Norton and Bob Poage have joined its staff as relationship executives.

Kip Barton joins DBS with more than 19 years of experience in the analysis and implementation of life insurance sales strategies. Prior to joining DBS he worked for a boutique estate planning firm where he learned from one of the top estate planners about the many different strategies and applications of life insurance products. Barton also worked for a life insurance brokerage agency during which time he partnered with top estate planning producers and advisors throughout the country. Barton lives in San Diego, CA, and will be building new and supporting existing DBS relationships in the southwest United States.

Charles Norton comes to DBS with more than 20 years of experience in financial services. He brings significant multi-channel distribution experience, including the development of strategic partnerships with banks, broker/dealers, CPAs, attorneys, property and casualty agencies and high-end independent producers. Most recently Norton has focused on bringing to market sophisticated business and estate planning strategies as the managing partner of his own firm. He will be building new and supporting existing DBS relationships in the New England area.

Bob Poage joins DBS with more than 30 years of life insurance industry experience. Prior to joining DBS he was sales director for a large life insurance brokerage general agency in Sacramento, CA, and most recently a regional sales director for BISYS. Long recognized for his expertise in the use of life insurance products, Poage has served on numerous field advisory councils for leading life insurance carriers, assisting them with sales and marketing plans, product development and underwriting approaches. He also served as president of LifeMark Distributors. Poage, who lives in Rocklin, CA, will be building new and supporting existing DBS relationships in the northwest United States.

Tim Foley comes to DBS with prior experience as a financial representative for Northwestern Mutual. He will be introducing brokers to the many resources available at DBS, including dedicated experts in LTCI, DI and annuities. 

American General Life

American General Life Companies has named James A. Mallon president and CEO; he assumes his new role after serving as president and CEO of American General Life and Accident Insurance Company, a member company of American General, since 2004. He will continue to oversee AGLA.

Mary Jane Fortin, previously president and CEO of American General, has been named chief financial officer of SunAmerica Financial Group, AIG’s life insurance and retirement services division.

Mallon, who has more than 39 years of experience in the life insurance and accident and health markets, joined AGLA as president and CEO in 2004. He previously served as president and chief operating officer of National Life Insurance Company and chairman of Life Insurance Company of the Southwest, a wholly-owned subsidiary of National Life. Additionally, his past experience includes serving as president and chief executive officer of Integon Life Insurance Corporation, as well as chief marketing officer positions at Commercial Union Life Insurance Company of America and Hartford Life and Annuity Insurance Company. Mallon earned his bachelor’s degree from Amherst College and attended Harvard University and the University of New Hampshire’s Whittemore School of Business Executive MBA program. He has earned FINRA Series 7 and 24 licenses.

American General Life Companies has also named John Deremo executive vice president and chief distribution officer.

Most recently at Protective Life Corporation, Deremo held overall responsibility for the sales, marketing and distribution functions for both Protective Life Insurance Company and West Coast Life Insurance Company. During his 20 years at Protective Life, he built a strong track record of success by strategically growing their presence in the life and annuity marketplace.

Before joining Protective Life, Deremo co-founded Spectra Financial Inc., leading the national marketing and sales areas. He began his career with Pacific Mutual in 1979.

Transamerica

Transamerica Brokerage has promoted Michael Babikian to executive vice president. Reporting to President Marty Flewellen, Babikian will maintain his role as chief marketing officer and was also named chief product officer of Transamerica’s life and protection division.

Joining Transamerica nine years ago, Babikian was named chief marketing officer in January 2010 and senior vice president in 2009. Prior to joining Transamerica, he served as general counsel to Infinite Source Technologies, Inc. and worked as an attorney for the tax law firm of Baker, Olson, LeCroy and Danielian.