OM Financial Life Insurance Company is the subject of this health insurance review. It is a Maryland-based company that should not be confused with OM Financial, a large Toronto-based insurance agency offering dozens of lines of insurance as well as investment securities. Maryland-based OM Financial Life Insurance Company was formerly known as Fidelity & Guaranty Life until they were purchased by Harbinger Group, Inc. in the spring 2011.
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OM Financial is licensed to do business in 49 states and the District of Columbia. Due to the nature of New York insurance laws, a separate entity exists in that state to sell and service the company’s policies. It is still operating under the old name of Fidelity & Guaranty Life Insurance Company of New York. The New York Company is a wholly owned subsidiary of OM Financial.
OM Financial Life Insurance Company Products
OM Financial does not sell direct health insurance policies. Their primary business interest is in life insurance and annuities, along with a handful of other securities. However, through many of their annuity options policyholders have the opportunity to use benefits to pay for critical illness care and other long-term care considerations brought on by old age. Because of the way annuities are structured these funds could be used to cover any number of medical expenses not already covered by current health insurance.
Annuities can be rather complicated so it’s important that policyholders understand fully what their individual policies provide for. In the event that your annuity does not include the option of critical illness care, that something you might want to investigate. If you’re just beginning your search for life insurance policies or annuities an OM Financial agent is the right person to ask.
OM Financial Life Insurance Company Agents
The company website states that despite the fact OM Financial has changed owners several times through the years it remains committed to the local agent model of doing business. They believe this is the best method of developing customer relations, being available for questions or concerns, and doing the best job at selling and servicing policies. They provide a complete platform for agents including customized software and a web-based portal. Agents who wish to represent OM Financial need only submit an application.
From the perspective of the consumer, having local agents available is a great benefit. However, the company provides no means on its website to find a local agent in your area. This information must be obtained by contacting them at their Maryland offices. The contact information has been listed for you below.
OM Financial Life Insurance Company
P.O. Box 1137
Baltimore, MD 21203-1137
OM Financial Legal Issues
OM Financial has had its fair share of legal issues over the last 15 years or so. Most of those legal issues occurred under the previous owners and the business name of Fidelity & Guaranty Life. Insurance records from various states show the company was assessed a $7,600 fine in 1998 for violating insurance regulations in the state of Maryland. Other legal issues include fines imposed in 2007, 2009, and 2010 for similar violations in other states. In addition, the company has also faced numerous lawsuits from unsatisfied policyholders.
This information should be taken with a grain of salt, knowing that even the best insurance companies are lucrative targets of litigation. As long as OM Financial complies with any rulings against it, their business should be fine.
OM Financial Life Insurance Company Financials
A.M. Best gave the company consistent ratings of “A-” until just a couple of years ago when they were downgraded to “BBB+.” The company admits that it has been negatively affected by the economic downturn of the last few years, yet maintains they are still on solid financial ground. Records from the end of the 2010 fiscal year seemed to add credence to the company’s claim.
Those records show that OM Financial listed total assets of approximately $17.45 billion. Their policy surplus and working capital were low by comparison at just under $800 million and $3 million respectively.
Despite their downgrade, A.M. Best sees no immediate reason why the company’s future should be impacted. They consider OM Financial to be a stable company with a good future outlook. Of course, that could change depending on the nation’s economic conditions and the health of their parent company.
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