Bankers Life Insurance: What You Need To Know

The Bankers Life and Casualty Company, also known as Bankers Life, is a private American health insurance company. It was founded in 1932 as a mutual life insurance company and has been a subsidiary of CNO Financial Group since 1992. The company offers a range of insurance products, including life insurance, long-term care insurance, annuities, and Medicare plans. With 1.4 million policyholders across the United States and Canada, Bankers Life primarily serves middle-aged and retirement-aged adults with annual household incomes ranging from $25,000 to $75,000. However, as of November 30, 2024, Bankers Life Insurance Company (BLIC) entered court-ordered liquidation, with the North Carolina Insurance Commissioner appointed as the liquidator.

History of Bankers Life Insurance Company

The Bankers Life and Casualty Company, commonly known as Bankers Life, is a private American health insurance company. It was founded in 1932 as a mutual life insurance company in Chicago, Illinois.

In its early years, Bankers Life minimised its overhead to undercut the monthly insurance premiums of its competitors. However, by June 1935, the company faced insolvency due to corporate mismanagement, leading to the seizure of its assets by the Illinois Insurance Department. John D. MacArthur purchased the company for $2,500 in July 1935 and operated it from his existing insurance company, Marquette Life.

Under MacArthur's leadership, Bankers Life continued its strategy of minimal overhead, offering $1, $2, and $5 monthly premium policies to undercut its competitors' $10 minimum. They targeted middle-income families, an underserved demographic in the insurance industry, through direct mail marketing. By 1941, the company had significantly grown its assets and life insurance policies.

In 1942, MacArthur sought to convert the company from a mutual insurance company to a joint-stock company to gain full ownership. He established shell companies, one of which, the Illinois Standard Life Insurance Company, became the new entity. Through a series of mergers, MacArthur created the West Side Assessment Life Insurance Company, later renamed the Bankers Life and Casualty Company. This new iteration of Bankers Life could trace its founding date back to 1879 due to the inclusion of the Hotel Men's Mutual Benefit Association.

Between 1943 and 1946, Bankers Life expanded its operations, opening branch offices in Florida, Michigan, Missouri, and West Virginia. By 1951, the company had a presence in 14 states, and by 1956, it had become one of the largest health and accident insurance companies in the United States. The introduction of Medicare in 1965 led Bankers Life to develop and market Medicare supplement policies.

In 1970, MacArthur established the MacArthur Foundation due to health concerns, ensuring that the majority of his estate, including his shares in Bankers Life, would be used for charitable causes. MacArthur resigned as president of Bankers Life in 1974, passing the baton to Robert Ewing.

By 1977, the company had become the second-largest health and accident insurance company in the United States, with a workforce of nearly 4,000 employees across most states and Canadian provinces. MacArthur's shares in Bankers Life, worth over $415 million, passed to the MacArthur Foundation upon his death in 1978.

Bankers Life Insurance Company's liquidation

Bankers Life Insurance Company, or BLIC, is a private American health insurance company founded in 1932. The company offers various insurance products, including life insurance, long-term care insurance, annuities, and Medicare products.

Liquidation

On December 30, 2022, the North Carolina court ordered the liquidation of Bankers Life Insurance Company and Colorado Bankers Life Insurance Company (Global Bankers). The effective date of the liquidation order was November 30, 2024. The North Carolina Insurance Commissioner is the court-appointed liquidator.

When a liquidation is ordered, each state's life and health insurance guaranty association provides coverage to the company's policyholders residing in that state, up to specified coverage limits. BLIC's policy obligations are now covered by various state life and health insurance guaranty associations, subject to applicable statutory limits and requirements.

Policyholders with questions about their policies, claims, or the liquidation process can refer to the official websites of the North Carolina Department of Insurance and Bankers Life Insurance Company for more information. They can also contact the company directly via the phone number provided: 833-658-2840.

History

The company has a long history, dating back to its establishment in 1932 as a mutual life insurance company. Initially, Bankers Life minimized its overhead costs to compete with other insurance companies. However, by 1935, corporate mismanagement led to insolvency, and the company's assets were seized for liquidation by the Illinois Insurance Department. John D. MacArthur then purchased the company and implemented cost-cutting measures, allowing Bankers Life to offer lower monthly premiums than its competitors.

Under MacArthur's leadership, the company experienced significant growth by targeting middle-income families and utilizing mass-marketing techniques. By 1941, the company had expanded its assets and life insurance policies exponentially. MacArthur also sought to convert the company from a mutual insurance company to a joint-stock company, gaining sole ownership of Bankers Life.

The establishment of Medicare in 1965 prompted Bankers Life to develop and market Medicare supplement policies. By the early 1970s, MacArthur's health concerns led him to establish the MacArthur Foundation, which inherited his shares in Bankers Life upon his death in 1978. The foundation later sold the company, and it has since changed hands several times, with CNO Financial Group being its parent company since 1992.

Bankers Life Insurance Company's policy obligations

The Bankers Life Insurance Company (BLIC) is currently in court-ordered liquidation as of November 30, 2024, with the North Carolina Insurance Commissioner acting as the court-appointed liquidator. In the event of a liquidation order, BLIC's policy obligations are covered by the respective state's life and health insurance guaranty association for its policyholders who are residents of that state. These obligations are subject to the coverage limits specified by state laws, with any benefit amounts exceeding these limits becoming claims against the company's remaining assets after administrative expenses are paid.

BLIC's policyholders can rest assured that their interests are protected during this transition period. Each state's guaranty association steps in to provide coverage, ensuring that policyholders continue to receive the benefits outlined in their insurance plans. This safety net is designed to provide peace of mind and financial security to those who have placed their trust in BLIC.

The process of liquidation can be complex, and BLIC's policy obligations are now the responsibility of various state life and health insurance guaranty associations. These associations are subject to applicable statutory limits and requirements, which can vary from state to state. Policyholders can refer to the relevant state's guaranty association for detailed information on their specific coverage limits and benefits.

During this liquidation period, it is important for policyholders to understand their rights and entitlements. While the guaranty associations provide coverage, there may be instances where the benefits exceed the specified limits. In such cases, policyholders can file claims against the company's remaining assets. This process ensures that BLIC's obligations to its policyholders are fulfilled to the best possible extent, even during challenging circumstances.

The liquidation of BLIC and the subsequent involvement of state guaranty associations highlight the importance of regulatory oversight and consumer protection in the insurance industry. Policyholders can refer to the official websites and resources provided by the relevant state authorities to stay informed about their specific coverage and benefits during this transitional phase.

Bankers Life Insurance Company's policyholders

The Bankers Life and Casualty Company, also known as Bankers Life, is a private American health insurance company with 1.4 million policyholders across the United States and Canada. Most of its policyholders are within the company's target demographic of middle-aged and retirement-aged adults with annual household incomes between $25,000 and $75,000.

The company's insurance products include life insurance, long-term care insurance, annuities, and Medicare products, including plans for Medicare Advantage and Medicare Part D prescription drug coverage. They also offer in-house supplemental health insurance, including plans for critical illnesses and Medicare supplements, with vision and dental coverage sold through a partnership with Humana.

Bankers Life sells its policies through a network of over 5,000 insurance agents based in more than 320 offices across the United States. The company was established in 1932 as a mutual life insurance company in Chicago, Illinois, and has been a subsidiary of CNO Financial Group since 1992.

It's important to note that as of November 30, 2024, Bankers Life Insurance Company (BLIC) is in court-ordered liquidation. The North Carolina Insurance Commissioner serves as the court-appointed Liquidator. During a liquidation, each state's life and health insurance guaranty association provides coverage to BLIC's policyholders who are residents of that state, up to the coverage limits specified by state laws. BLIC's policy obligations are now covered by various state life and health insurance guaranty associations, subject to applicable statutory limits and requirements.

Any policy benefit amounts that exceed the state's life and health insurance guaranty association coverage limits become claims against the company's remaining assets after all administrative expenses are paid. Policyholders can access their policy benefits covered by the State Guaranty Association through a dedicated portal.

Bankers Life Insurance Company's portal for policy benefits

The Bankers Life and Casualty Company, operating as Bankers Life, is a private American health insurance company. It was founded in 1932 as a mutual life insurance company and has been a subsidiary of CNO Financial Group since 1992. Bankers Life offers a range of insurance products, including life insurance, long-term care insurance, annuities, and Medicare products.

As of November 30, 2024, Bankers Life Insurance Company (BLIC) is in court-ordered liquidation, with the North Carolina Insurance Commissioner appointed as the Liquidator. During a liquidation, each state's life and health insurance guaranty association provides coverage to BLIC policyholders who are residents of that state, up to specified legal limits. BLIC's policy obligations are now covered by various state life and health insurance guaranty associations, subject to applicable statutory requirements and limits.

Any policy benefit amounts that exceed the state's guaranty association coverage limits become claims against the company's remaining assets, after administrative expenses are paid. The login portal for policy benefits not covered by a state guaranty association will become active in January 2025. In the meantime, the portal for BLIC policy benefits covered by the State Guaranty Association is currently open and accessible by clicking the link provided on their website.

Bankers Life has a broad reach, with 1.4 million policyholders across the United States and Canada, primarily within the target demographic of middle-aged and retirement-aged adults with annual household incomes ranging from $25,000 to $75,000. The company sells its policies through an extensive network of over 5,000 insurance agents based in more than 320 offices across the United States.

History of Bankers Life

The company has a long history in the insurance industry, dating back to its founding in 1932. Initially, Bankers Life employed a strategy of minimal overhead, allowing it to offer lower monthly premiums than its competitors. This approach, combined with innovative marketing strategies, contributed to the company's growth in its early years.

Over the decades, Bankers Life expanded its operations across multiple states and diversified its business by marketing health insurance policies under its White Cross brand. By 1956, it had become one of the largest health and accident insurance companies in the United States. The company continued to adapt and expand its offerings, such as developing Medicare supplement policies after the establishment of Medicare in 1965.

In 1992, Bankers Life became a subsidiary of the CNO Financial Group, and its headquarters moved to the Merchandise Mart building in downtown Chicago in 1993. In 2012, the company processed approximately 8.5 million claims and paid out $1.3 billion in policy benefits, demonstrating its significant role in the insurance industry.

Frequently asked questions