Encova Life Insurance Company Producers Q&A 

 

General

  1. What transaction is taking place?
    Pan-American Life Insurance Company (PALIC) and Encova Life Insurance Company (Encova Life), a subsidiary of Encova Mutual Insurance Group, Inc., have entered into a definitive agreement under which PALIC will acquire Encova Life.

    Following closing of the transaction, Encova Life will be merged into Pan-American Life Insurance Company.

    The addition of Encova Life’s business complements and strengthens PALIC’s MTLS division, further solidifying PALIC’s market position with increased scale, greater financial strength, a sterling ratings profile, and enhanced growth opportunities. 

  2. Who is Mutual Trust Life Solutions (MTLS)?
    Mutual Trust Life Solutions is the division for the life insurance solutions that Pan-American Life Insurance Company provides in the United States independent agent life insurance marketplace.

    Mutual Trust Life Solutions insurance policies are issued by Pan-American Life Insurance Company. Pan-American Life Insurance Company maintains an A (Excellent) rating from AM Best and an A (Strong) rating from Fitch Ratings.

    With the addition of the acquired Encova Life business, MTLS will continue to develop competitive products and service individual life insurance in 49 states and the District of Columbia. 

  3. What will happen after the merger? 
    Encova Life will be merged into PALIC. Existing Encova Life policies will be assumed by PALIC with no changes to product terms and features for current policyholders.   

    After closing and the merger there will be a transition period during which the former Encova Life producers may continue to sell the former Encova Life products. Policies will be underwritten by Pan-American Life Insurance Company. PALIC plans to maintain access to the Encova Life products for a period of up to 12 months as we evaluate the individual product offerings.

    Encova Life agents must complete contracting with Pan-American Life Insurance Company in order to sell MTLS products. If an agent is interested in selling a MTLS product, they should contact their MTLS Regional Vice President to discuss.

    Upon joining PALIC, the former Encova Life policyholders, producers and employees will become part of a strong, well-capitalized organization serving policyholders in 49 states and 22 countries with a robust product offering and more than 110 years of experience in the industry. 
 
 

Producers

  1. How will the merger impact Encova Life’s producers? 
    Following closing of the transaction, Encova Life will be merged into PALIC’s MTLS division. After closing and the merger there will be a transition period of up to 12 months during which the former Encova Life producers may continue to sell the former Encova Life products. If an agent is interested in selling a MTLS product, they should contact their MTLS Regional Vice President to discuss.

  2. Will the compensation of producers and brokers change after the acquisition is completed? 
    We do not expect any changes to the compensation or timing of compensation disbursements to producers and brokers for Encova Life products as a result of the acquisition.

  3. What if Encova Producers want to sell MTLS products?
    Encova Life producers will need to complete contracts with Pan-American Life Insurance Company to sell Mutual Trust Life Solutions products. New contracts are not required to continue to sell Encova Life products for a period of up to 12 months post-close as PALIC evaluates the individual product offerings.

  4. Will Encova Life production apply to Mutual Trust’s Summit sales conference?
    Yes, Encova Life production will apply to Mutual Trust’s annual sales conference.

  5. Who should producers contact with questions about MTLS?
    Producers may contact Mutual Trust’s Sales Development team at (800) 323-7320 with questions. They can provide general information and introduce producers to the Regional Vice President for their new sales region.
 
 

Policyholders

  1. Will existing Encova Life term policies be convertible to PALIC whole life products?
    Yes.

  2. How will the acquisition impact Encova Life’s current policyholders? 
    Upon closing and merger of Encova Life into PALIC, all Encova Life policies will be assumed by PALIC.

  3. Where should policyholders send their payments?
    Policyholders may continue to send payments in the same manner as usual.

    Following the merger, Discover cards will no longer be accepted for policy payments.

  4. How will policyholders be notified? 
    In January 2024, Encova Life and PALIC will issue a joint mailing informing policyholders of the change. This mailing envelope will be branded with the Encova Life logo, and contain a cover letter and policy endorsement to be added to the original policy.

    Click here to visit the policyholder FAQ page.

  5. What should we be telling policyholders? 
    It is important to reassure policyholders that there will be no changes to product terms and features of their current policies as a result of this acquisition.

    The merger of Encova Life into PALIC will further enhance our scale and ability to serve the needs of our policyholders seeking trusted financial security. 

  6. Will contact information for policyowners change after the merger?
    Contact information for policyowners and producers will remain the same as it is today. Any changes in contact information will be communicated at a later date. 
 
 

Closing and Integration Process

  1. What regulatory approvals is the acquisition subject to? 
    The acquisition is subject to customary closing conditions and will require the approval of insurance regulators in both Louisiana, where Pan-American Life is domiciled, and Ohio, where Encova Life is currently domiciled, as well as the insurance regulators in California. Approvals were received as anticipated, allowing for close as anticipated on 1/1/24.

  2. Will policyholders need to approve the acquisition? 
    The acquisition has been approved by the Boards of Directors of Pan-American Life Insurance Company and Encova Life Insurance Company and does not require approval from policyholders. 

  3. When do you expect the acquisition to be completed? 
    The merger is expected to close 1/1/24. Following closing, Encova Life will be merged into PALIC.

  4. What will happen to Encova Life’s offices in Ohio? 
    Following closing of the transaction, Encova Life will be merged into PALIC. There will be a transition period after the closing during which former Encova Life employees will continue to operate in their current work locations under the management of MTLS and its leadership while former Encova Life teams and resources are aligned to MTLS’ evolving and future needs.  

  5. Once the acquisition is completed, will you continue providing all of the Encova Life services and products currently offered today? 
    Following closing, Encova Life will be merged into PALIC. Upon closing and merger, existing Encova Life policies will be assumed by PALIC with no changes to product terms and features for current policyholders.   

    After closing there will be a transition period up to 12 months during which the former Encova Life producers may continue to sell the former Encova Life products.

  6. Do you expect any issues with integrating Encova Life into PALIC? 
    No, we anticipate a seamless transition. 

  7. Is the transaction expected to have any impact on Pan-American Life’s current ratings?  
    No. We expect that Pan-American Life Insurance Company and its affiliates will retain their financial strength ratings of A (Excellent) from AM Best and A (Strong) from Fitch Ratings.
 

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