Two banks have stopped selling products for Delaware Life, an insurer affiliated with financier Mark Walter, as probes into the company continue. Distribution through banks, in plain terms, is when a bank sells an insurer's policies to its own customers on the insurer's behalf. Walter's holding company said this week that "there has been no fraud" at Delaware Life or its affiliated company, Clear Spring Life and Annuity.
The statement gave no detail on what the probes cover, and neither bank was publicly identified. Banks that suspend product distribution often do so when they want more clarity on an insurer's regulatory standing before continuing the commercial relationship. The holding company's public position rests on that fraud denial alone.