| For decades, Midland National Life Insurance | | | | strong line of marketable Universal Life and Term |
| Company, has stood out as one the premier insurers | | | | insurance policies, along with a diverse portfolio. Third, |
| for General Agents to represent. Due to recent | | | | the commissions paid to GA's and PPGA's were very |
| economic financial fluctuations, revisiting Midland | | | | competitive and favorable. In addition, it was easy to |
| National Life in this report is critical. | | | | receive a home office response to any question or |
| 1906 was when history began for Midland National | | | | difficulty that occurred. |
| Life Insurance Company. This company aspires to the | | | | Midland National Life operates in 49 states, DC, |
| values of integrity, openness, respect, and | | | | military bases, etc. The life operations are all handled |
| accountability. Unfortunately, in the last few years | | | | out of Sioux Falls, SD with annuity activities |
| robust selling of fixed-indexed annuity plans drove | | | | headquartered in W Des Moines, IA. Very unique is |
| rapid net premium growth beyond initial expectations. | | | | that the company ownership is privately held with |
| Attempting to change from a well-known General | | | | employee shareholders. The high amount of liquidity |
| Agents Insurance Company to a GA and brokerage | | | | holdings might be key assets during these crucial |
| combination insurer resulted in early great results, | | | | times. |
| then leading to questionable financial stability. | | | | Using distinct channels of distribution Midland and |
| Midland National Life Insurance Company was | | | | North American Company for Life and Health |
| purchased 1n 1958 by C.A. Sammons & | | | | Insurance decided to belong strongly involved in |
| Associates of Dallas. Charles Sammons already was | | | | singing up brokers to sell its fixed indexed annuity |
| the president of Reserve Life and owned eight life | | | | products. Something now both insurers would like to |
| insurance companies. Today the two key subsidiaries | | | | report that they never were successful at selling. |
| of the Sammons Financial Group of Chicago are | | | | Having considerable risk concentrated in large fixed |
| Midland National and NACOLAH, North American | | | | income investments of a security nature was clearly |
| Company for Life and Health Insurance. Actually, they | | | | being in the wrong market at the wrong time. |
| are similar companies looking at the annuity | | | | Thanks to strong product diversification and |
| brokerage, General Agents, and PPGA's, personal | | | | significant liquidity before the financial bomb struck, |
| producing general agents. A General Agent often has | | | | Midland National Life Insurance Company should pull |
| insurance agents under his contract, while a PPGA | | | | itself thru. The lowering of its ratings does not help |
| tends to work independently. Over them is a District | | | | induce confidence in the insurer. The shame is that |
| Sales Manager and/or a Regional Sales Manager | | | | this great General Agent insurance company is taking |
| reporting direct to the company. | | | | a huge hit because of an unwise brokerage decision. |
| General Agents are drawn to the insurer because of | | | | My prediction is that there is a future ahead for |
| three main factors. First there was a non pressure | | | | them, at first dim and gradually returning to very |
| General Agent contract that also allowed doing | | | | bright. Next time they are revisited the situation will |
| business with other providers. Next is the very | | | | definitely be changed. |