Florida Office of Insurance Regulation recommends against Pasco life insurance plan
A life insurance proposal that left Pasco school district officials looking for the catch has received a poor bill of health from state regulators.
The Florida Office of Insurance Regulation issued an opinion late Thursday that questioned the legality of the proposal by Ohio-based Pollock Financial Group. "The Office has significant concerns relating to this proposal and has significant doubts that such an arrangement would comply with Florida law," general counsel Belinda H. Miller wrote. (See the letter here.)
"I don't think it's going anywhere," chairwoman Alison Crumbley said. "It's done."
Pollock national sales director Bill Olive said he regretted the outcome. He said in a prepared statement:
"Pollock Financial Group, LLC engaged a number of independent, outside advisors, attorneys and consultants over the last several years and worked with them in good faith to try to develop a concept to help address these pension and benefit plan liabilities. Together, with their input, we developed the Benefit Stabilization Funding Program concept. Although complex in nature, Pollock Financial Group, LLC and its consultants believed that the final structure of the Benefit Stabilization Funding Program would have offered meaningful long term benefits to Pasco County Schools and its employees.
"Prior to finalization or any implementation of this plan, we met with and discussed the concept with the Florida Office of Insurance Regulation and provided them with full disclosure regarding the proposed Program. We believed that the Program was lawful and would have been beneficial to the underfunded pension and benefit plans.
"We have now learned that the Florida Office of Insurance Regulations believes that the concept may not meet certain relevant Florida statutes. Although we are deeply disappointed, we fully respect the Office's opinion. Based upon the Office of Insurance Regulations' concerns, we will not pursue this Program."