For those following a few of my previous posts on charitable insurance schemes (click on the "insurance schemes" label in the left column), and particularly the apparent "slipping" of Barry Kaye's insurance empire, here is the latest out of Palm Beach on Mr. Kaye:
http://www.sun-sentinel.com/news/palm-beach/boca-raton/sfl-barry-kaye-fau-072809,0,7411472.story
Actually, the story isn't so damning in regards to Mr. Kaye. Basically, he is paying one more million towards his $16 million pledge to FAU - bringing his total giving to $5 million and they are writing off the rest of the pledge, and his name is coming off school of business. In this regard, Mr. Kaye has shown that he is trying to do the right thing.
Why the article is important is how it touches on the conflicts of interest created by Mr. Kaye's insistence on promoting his insurance programs at the university after he made his pledges. The story also confirms that the grandiose plans that many of us heard directly from Barry weren't as guaranteed as he made them out to be.
In my mind, he is one of the good guys in the whole charitable insurance scheming world. He actually gave significant money to charity (albeit with some strings). My concern is for the not-so-good insurance guys out there - who really have only one thing in mind when they sell their "too good to be true" schemes: money in their pockets. And, when these things implode, as they always do, the charity or the donor will be left "holding the bag."
Sorry insurance sales guys of the world - I am not convinced that your convoluted plans makes sense for any charity to get involved. I don't even need to see your power point presentation or read your half inch think binder of crossword puzzles. I know its risky, a waste of time, a waste of resources, a waste of relationships, and so on. There is no replacement to good old fundraising, for sure not coming from the insurance industry.
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1 comment:
Agents always tries to convince people with the most expensive plan. But the one who is in a mood to buy a policy has to be more tricky, have to understand all the offers that agent is promising. They are actually doing their work but consumer has to be careful and choose a plan according to his pocket and requirements.
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