American Income Life Insurance Company
Encyclopedia
American Income Life Insurance Company (formerly NASDAQ: AINC) based in Waco, Texas
, provides supplemental life insurance to labor unions, credit unions, and associations. American Income Life (AIL) was founded in 1951. The company’s executive offices have been located in Waco, Texas, since 1959. American Income Life is licensed in 49 states, the District of Columbia, Canada, and is registered to carry on business in New Zealand. AIL also has two wholly owned subsidiaries: National Income Life Insurance Company
, licensed in the state of New York, and Union Heritage Life Assurance Company Limited, licensed in the Republic of Ireland
.
AIL has more than two million policyholders (as of 6/10). With its New York subsidiary, National Income Life Insurance Company (NILICO), the company has combined assets of more than $2.2 billion with more than $35.2 billion of life insurance in force (as of 12/10). American Income Life is a wholly owned subsidiary of Torchmark Corporation (NYSE: TMK), based in McKinney, Texas
.
. It was reinsured through American Standard
as a new mutual reserve company in March 1951. American Income Insurance Company was officially founded in May 1951 by the company’s president, Harold Goodman, and executive vice president, Bernard Rapoport
(Goodman's nephew). The company’s home offices were located in Indianapolis, Indiana
.
American Income originally sold low-cost hospital insurance plans. During its first year, the company took in about $95,000 worth of premium income. The company reached $1 million worth of insurance premiums in 1953. By 1954, the company was receiving 6,000 insurance policy applications a month.
In September 1954, with $200,000 in capital and $100,000 of surplus, Goodman and Rapoport formed a new company called American Income Life Insurance Company (AIL). American Income Life reinsured the policies of American Income and was transformed from a mutual reserve company to a stock company. American Standard, the company’s original insurer, was merged with American Income Life, and the company acquired about $400,000 worth of premiums.
Between 1954 and 1955, AIL’s assets had doubled, its net reserve had tripled, its capital and surplus more than doubled, and it had about $15 million of insurance in force. In 1956, Rapoport desired to take the Indiana-based company national. He obtained a license in Ohio and opened a central office in Columbus. By the close of 1956, American Income Life was operating in thirteen states with 300 sales personnel in the field operating out of 96 general agencies. In March 1958, the company’s home offices were moved from Indianapolis, Indiana, to Waco, Texas.
In 1961, AIL began providing supplemental insurance to members of labor unions and serving union policyholders in ways unfamiliar to the industry. For example, AIL waived payment of premiums by union members during an authorized strike action
, a benefit still enforced in 2011. AIL also developed a college scholarship program for children of union members, and the company contributed to the strike funds of unions engaged in lawful strikes. The company was positioned as the only 100% union insurance company, and termed the phrase, “Be Union-Buy Union." In 1963, AIL’s income was about $6 or $7 million. By 1973, income reached $31.5 million.
In June 1966, the Office and Professional Employees International Union
(OPEIU) organized the home office staff, making AIL the only insurance company with all union employees. In October 1973, the company was granted an official designation as a Union Label
company by the AFL-CIO. AIL was one of only two insurance companies in the entire United States with the official Union Label.
In 1994, American Income Life was sold to Torchmark Corporation for $563 million.
In 2010 American Income Life paid $1.3 million in lay-off waivers. This is the waiver AIL provides if a policyholder goes on strike and is unable to make their payments. American Income Life also paid a total of $124.4 million in life and health claims for 2010.
Waco, Texas
Waco is a city in and the county seat of McLennan County, Texas. Situated along the Brazos River and on the I-35 corridor, halfway between Dallas and Austin, it is the economic, cultural, and academic center of the 'Heart of Texas' region....
, provides supplemental life insurance to labor unions, credit unions, and associations. American Income Life (AIL) was founded in 1951. The company’s executive offices have been located in Waco, Texas, since 1959. American Income Life is licensed in 49 states, the District of Columbia, Canada, and is registered to carry on business in New Zealand. AIL also has two wholly owned subsidiaries: National Income Life Insurance Company
National Income Life Insurance Company
National Income Life Insurance Company , based in Liverpool, New York, provides supplemental life insurance to members of labor unions, credit unions, and associations. NILICO has State General Agents who have offices across New York state to serve working families throughout the Empire State. A.M...
, licensed in the state of New York, and Union Heritage Life Assurance Company Limited, licensed in the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
.
AIL has more than two million policyholders (as of 6/10). With its New York subsidiary, National Income Life Insurance Company (NILICO), the company has combined assets of more than $2.2 billion with more than $35.2 billion of life insurance in force (as of 12/10). American Income Life is a wholly owned subsidiary of Torchmark Corporation (NYSE: TMK), based in McKinney, Texas
McKinney, Texas
McKinney is a city in and the county seat of Collin County, Texas, United States, and the second in population to Plano. According to the U.S. Census Bureau, the city's 2010 population was 131,117 The Census Bureau listed McKinney as the nation's fastest growing city from 2000 to 2003 and again in...
.
History
The company’s history began in 1951 under the name American Income. American Income was chartered as a mutual assessment association in Indiana with $25,000 of borrowed capitalCapital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
. It was reinsured through American Standard
American Standard
American Standard may refer to:* American Standard, a brand of plumbing fixtures made by American Standard Brands.* American Standard, a brand of HVAC equipment made by Trane....
as a new mutual reserve company in March 1951. American Income Insurance Company was officially founded in May 1951 by the company’s president, Harold Goodman, and executive vice president, Bernard Rapoport
Bernard Rapoport
Bernard Rapoport is an American entrepreneur, philanthropist, author, and is the founder of American Income Life Insurance Company. He has a passion for human rights, education, and literacy.-Background and Education:...
(Goodman's nephew). The company’s home offices were located in Indianapolis, Indiana
Indianapolis, Indiana
Indianapolis is the capital of the U.S. state of Indiana, and the county seat of Marion County, Indiana. As of the 2010 United States Census, the city's population is 839,489. It is by far Indiana's largest city and, as of the 2010 U.S...
.
American Income originally sold low-cost hospital insurance plans. During its first year, the company took in about $95,000 worth of premium income. The company reached $1 million worth of insurance premiums in 1953. By 1954, the company was receiving 6,000 insurance policy applications a month.
In September 1954, with $200,000 in capital and $100,000 of surplus, Goodman and Rapoport formed a new company called American Income Life Insurance Company (AIL). American Income Life reinsured the policies of American Income and was transformed from a mutual reserve company to a stock company. American Standard, the company’s original insurer, was merged with American Income Life, and the company acquired about $400,000 worth of premiums.
Between 1954 and 1955, AIL’s assets had doubled, its net reserve had tripled, its capital and surplus more than doubled, and it had about $15 million of insurance in force. In 1956, Rapoport desired to take the Indiana-based company national. He obtained a license in Ohio and opened a central office in Columbus. By the close of 1956, American Income Life was operating in thirteen states with 300 sales personnel in the field operating out of 96 general agencies. In March 1958, the company’s home offices were moved from Indianapolis, Indiana, to Waco, Texas.
In 1961, AIL began providing supplemental insurance to members of labor unions and serving union policyholders in ways unfamiliar to the industry. For example, AIL waived payment of premiums by union members during an authorized strike action
Strike action
Strike action, also called labour strike, on strike, greve , or simply strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became important during the industrial revolution, when mass labour became...
, a benefit still enforced in 2011. AIL also developed a college scholarship program for children of union members, and the company contributed to the strike funds of unions engaged in lawful strikes. The company was positioned as the only 100% union insurance company, and termed the phrase, “Be Union-Buy Union." In 1963, AIL’s income was about $6 or $7 million. By 1973, income reached $31.5 million.
In June 1966, the Office and Professional Employees International Union
Office and Professional Employees International Union
The Office and Professional Employees International Union is a trade union in the United States representing 110,416 white-collar workers in the public and private sector....
(OPEIU) organized the home office staff, making AIL the only insurance company with all union employees. In October 1973, the company was granted an official designation as a Union Label
Union label
A union label is a label, mark or emblem which advertises that the employees who make a product or provide a service are represented by the labor union or group of unions whose label appears, in order to attract customers who prefer to buy union-made products...
company by the AFL-CIO. AIL was one of only two insurance companies in the entire United States with the official Union Label.
In 1994, American Income Life was sold to Torchmark Corporation for $563 million.
In 2010 American Income Life paid $1.3 million in lay-off waivers. This is the waiver AIL provides if a policyholder goes on strike and is unable to make their payments. American Income Life also paid a total of $124.4 million in life and health claims for 2010.