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William Hoffman

FALLACY OF LONG TERM CARE INSURANCE-LTC SOLD BY GE NOW TWISTED INTO GENWORTH! WHICH AFFECTS BOTH STOCKHOLDERS OF GE & GENWORTH! OF WHICH I AM A STOCKHOLDER AND A GE/GENWORTH LTC INSURED!

SEC COMPLAINT NOW FILED 9/8/2009, FILED AGAINST GE AND GENWORTH, FOR NONDISCLOSURE OF LTC EXPOSURES AND NONACCOUNTING FOR RELATED LTC RISKS BY GE&GENWORTH!
KPMG COMPLAINT FILED WITH KPMG & OVERSIGHT BOARD- WWW.CLEARVIEWCONNECTS.COM- 50811/1a209ce
SUCH NONDISCLOSURES OF LTC RISKS HAVE NOT BEEN PROPERLY REPORTED IN THEIR 10-K'S FROM 2003, 2004, 2005, 2006, 2006, 2007, 2008, AND TO DATE 0F 9/11/2009, WITH GENWORTH CEO MICHAEL FRAIZER, WITH GENWORTH CEO STATING GENWORTH'S ASSETS OVER $400M USD, BUT FAILING TO DISCLOSE GENWORTH'S RISK EXPOSURE FOR LTC CLAIMS NOR GE CEO JEFFREY R. IMMELT DISCLOSING GE'S CULPABILITY TO GENWORTH FOR LTC CLAIMS DIRECTLY WRITTEN AS GE LONG TERM CARE FROM CA. 1980 THROUGH 2004, AND HAVING GE RECOGNIZE LTC PREMIUMS AS GE REVENUE WITHOUT PROPER RESERVES, AND KPMG'S AUDITORS FOR BOTH GE THROUGH 2003 AND THEREAFTER JOINTLY & SEVERALLY FROM 2004, 2005, 2006, 2007, 2008 IN 10-K'S PREPARED BY AUDITORS KPMG AND FROM JANUARY, 2009 THROUGH TODATE OF 9/11/2009! I AM BOTH A POLICYHOLDER OF LTC WRITTEN TO ME BY GE IN 1998, AND INVOLUNTARILY "TWISTED" INTO GENWORTH IN 2004, AND AS A STOCKHOLDER OF GE AND GENWORTH-GNW! I HAVE NOT TO DATE OF 9/11/2009, RECEIVED A REPLY FROM GE'S CEO JEFFREY R. IMMELT NOR GENWORTH'S CEO MICHAEL D.FRAIZER, TO THEIR BELOW ADDRESSED CORRESPONDENCE FROM ME ON SEPTEMBER 8, 2009, NOR FROM MY RELATED PREVIOUS CORRESPONDENCE OF AUGUST 22, 2009, TO GE CEO JEFFREY R. IMMELT AND GENWORTH CEO MICHAEL I. FRAIZER !
************************************************************************************************************************************************************
September 8, 2009
To: Michael D. Fraizer, CEO and Buck Stinson, President of: Insurance Products,Patrick Kelleher, CFO, Pamela Schutz, Retirement Services, CEO, Leon Roday, VP/ General Counsel, Thomas Mann, VP Int'l-Key Executives, Genworth Financial

c.c. Jeffrey R. Immelt, CEO, General Electric, et al- sent via GE Fax#203--373-3131

Re:
1- Actual negative experiences of claimants that originally purchased GE LTC that were in 2004, transferred to Genworth LTC and made claims both to GE and subsequently to Genworth on LTC unrelated claims
2- A REVIEW of GE and Genworth documents, Master Agreement GE/Genworth, SEC Filings of GE and Genworth from 2003, thru 2009, Genworth Prospectus of 2004, expiring 2011
3- US June 3, 2009- Special Committee on Aging Hearing, Buck Stinson's Transcription
4- A Review of SEC Complaints filed against GE, etc.
5- A Review of KPMG, Auditors for both Genworth and GE, KPMG's disclosures of "off-the- balance sheet" items
6- Implications of FINRA, FCRA, SEC, etc


In Re: Serious implications of the above, as it pertains to the above, etc, and reliance by LTC, etc., policyholders of GE that were removed from GE by GE and transferred by GE to be policyholders of Genworth, with and/or pending in 2010, without recourse to GE, etc

Memo: Dear Key Executives of Genworth:
AS referenced above, it has come to my attention, there exists numerous "inconsistencies" as well misconceived and misrepresented by GE and Genworth to LTC insureds and pending LTC applicants representations being made by Genworth's Key Executives and related literature of Genworth and Genworth's Sales and Servicing Agents!

GE's collections of billions of dollars of LTC premiums from 1980 through 2003, and then removal of GE Policyholders to Genworth for LTC , Mortgage, Life, etc. insurances claims and coverage’s has caused serious concerns as to:
1- GE culpability;
2- Genworth's ability to pay on current and future claimants;
3- While using premiums currently being paid for above insurance coverage’s to pay costs, damages;
Colin Devine- Citigroup, Sept. 2, 2009- ".... (Genworth) Management continues to pursue a fundamentally flawed strategy........."
4- KPMG's 10-K Filings clearly disclose Practices of Genworth and originally GE that jeopardize policyholders and stockholders!

Genworth's requirements to require LTC claimants to pay the claimants' expenses of ADL- activities of daily living- while the claimant is disabled- and when and until Genworth deems that the claimant has in-detailed-facts- having to be investigated for many weeks, if not in-fact months- will Genworth then initiate reimbursements not direct payments!

The entire essence of GE and now Genworth's promo is that the policyholders pay their premiums now and receive benefits and waiver of LTC premiums- often-time $5,000. Per year! By Genworth's purposeful delaying claimants their legitimate needs for LTC, the average claimant does not have money to pay such ADL expenses! Which then becomes the in-famous "Catch-22!" With no real money to pay for the claimants LTC, the claimants, if they have money-will pay until they seek Medicaid! Which is alluded to even in Buck Stinson's June 3, 2009 speech to the Senate!

So the myth that Genworth will directly pay LTC is just a myth! The claimants have to pay, and "if" Genworth approves LTC coverages- in very copious forms- that only an accountant, or other professional could ever be able to complete! And, if Genworth denies coverage? An appeals period of 60+days goes into effect!

Even a clause by Genworth's policies state that no other legal actions can be initiated during an appeal of denial! Very clever to do this to unsuspecting policyholders! Should each policy applicant have a lawyer and or financial advisor, to help make decision to take Genworth LTC? Is Genworth disclosing to the many AARP, State Societies, individuals- what is required to make a LTC claim for Genworth benefits? I am certain that Genworth is not informing paying policyholders and pending applicants- of what it will take to receive solely reimbursements and not direct payments! As stated by many Genworth representatives! During which time- according Genworth Reps. Gail Cleary,Rep. of Pres. Stinson, Darcy, Shaw, Crista Lee- Sr. Benefit Analyst, Care Scout Evaluators- that difficulty communicating, etc- ARE AFTER A CLAIM IS FILED- IT WILL TAKE AT LEAST ONE WEEK TO EVEN SEND AN EVALUATOR CONTRACTOR AND NOT EVEN A GENWORTH EMPLOYEE! I HAVE PROOF OF ALL THAT IS BEING SAID IN THIS EMAILED MESSAGE!.

A Query was made about pre-planned knee surgery replacements now pending! The Genworth representatives responses were:
"No, there are no provisions by Genworth to evaluate ADL needs, until After the knee surgery! Thus, a LTC policyholder- possibly with no one to help, has to be evaluated after their surgery! This is just an example of what Genworth coverages will need to be covered! How can the average person after such pre-planned surgery, be able to develop a plan of care, hire qualified care givers, or even have money to do anything that Genworth now requires?

The scheme of collecting millions of dollars of insurance premiums and then thwarting claims is not unique! And in many ways seems to be able to fraught with a method to defraud the general public that is being promoted to become and or have become Genworth policyholders and/or were "twisted" by GE into Genworth!
This is not what was sold as LTC for hundreds of thousands of pre-paid premiums to GE and then in 2004- for LTC by GE & then by GE- twisted all GE LTC policyholders into GE’s spinoff Company- Genworth!

Where in Genworth's reserves are there sufficient funds to pay legitimate claims? GE and now Genworth have collected Billions in LTC premiums and recognized these premiums as earned revenues and not pre-paid premiums- needing to have secured significant reserves, none of which has been done for innocent once younger but now elderly policyholders! So, instead Genworth- now with enough delays and road-blocks, double-speaks, and misleading disclosures- a claimant is uninformed and mostly denied their desperately Long Term Care Genworth Insurance Coverage!

Today in the USA- the knowledge of LTC costs are astronomical! So Actuarial and with GE & GENWORTH Manager Advisors- they have created ways to prevents claims being created by Genworth! See attached Genworth LTC Release of August, 2009- stating Genworth LTC insurance is only a reimbursement policy! And Genworth insureds have to first pay their own LTC needs, develop an acceptable plan of LTC! Then after possibly many months, if Genworth approves both the insured’s first paid LTC expenses and the LTC claimants- Genworth may approve reimbursements by Genworth and then as well Genworth may waive the Billions of expensive insurance premiums having to paid in advance! On average per LTC Insurance Premiums average $3,000. to $5,000. per Genworth Insured! Or are their Genworth Insureds really insured for LTC? But have to pay first and be now denied later! With Genworth flimsy excuses of why 80 year-old LTC Elderly are not eligible for their LTC that these Genworth Insureds have paid thousands of US Dollars for most times well over 10 years at $5,000. per year!

With my 40 years of Business Experiences as a Businessman, I previously considered GE LTC an excellent way to provide a means to have LTC! Now with numerous financial reversals of policyholders, all the now “twisted” by GE- Genworth policyholders-can hope and pray for that when they survive their heart attacks, strokes, surgeries, etc- that Genworth will take care and pay for their LTC- and not look to the USA to pay- but Genworth! I know in MD- taxpayers get a Tax Credit if they have LTC insurance! IRS gives deductions! But for what is Genworth doing to provide and not thwart claims!

Yes- many say that- Business is Business, and Greed is Good, and profits for the Executives and Stockholders of GE and Genworth is important!
But, now that Genworth has the exposures to pay both by direct sales of LTC and what Genworth was formed in 2004 by GE- as disclosed in SEC statements, etc. - to limit GE's risks and expenses from billions that GE collected from 1980 to 2003, and now Genworth from 2004- to date of 2009!

What is to be done by either directly by Genworth and GE or US Government Agencies and State Agencies to correct what I described above? I wait GE and Genworth’s reply! A SEC Official Complaint has been filed on September 8, 2009- for the SEC to investigate the above information and misleading information Reported in both GE and Genworth’s SEC Annual 10-K Reports! Including misleading Revenues and related inflated profits earned from LTC insurance premiums recognized as earned income without proper accounting by GE and Genworth and their Auditors KPMG, from 1980 to 2004 by GE and jointly by GE and Genworth from 2004 to 2008 Annually, and year-to-date from January, 2009- when Genworth was selling ca.30cents a share to September 11, 2009- when Genworth’s Stock rose to over $11./sh. The Auditors KPMG, who are both the Auditors for GE and Genworth- with KPMG not disclosing such dual possibly conflicting relationships and accounting practices of recognizing 100% of LTC insurance premiums as earned revenues! Thus inflating the profits of both GE and Genworth by Billions of bottom-line profits, and not accounting that these unearned LTC insurance premiums will have to one-day in the future of GE and Genworth have to be used to LTC claims! Which as a matter of course Genworth are matter-of-factly denying and or delaying such payments!

President Obama’s speech to Congress this past week on September 9, 2009- spoke directly to Health Insurance Companies denying or delaying deserved claims of insureds! Until either the insured dies or becomes destitute! Was President Obama referring to Genworth’s own activities of denials of claims and or delays of deserved claims? That these Elderly LTC insureds could never have sufficient moneys of their own to fund nor pay for by themselves! So- these Elderly in need of LTC that they paid to both GE and Genworth have to suffer in silence! At least up until now! With the help of disclosure it is now hoped something will be done!

I will be in DC on Sept 14, at the Genworth, et al LTC Government Conference at The Russell Senate Office Building, Room 325, 10am to 4pm. If you would like to meet at that time, or discuss my concerns anytime? I will look forward to such conversations, etc.

William Hoffman, Baltimore, MD
upsidebill@gmail.com

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