Mr. Howard: Cotton States Life Insurance Company is part of the Cotton States Insurance Group of Companies that includes: Cotton States Mutual, which was founded in 1941, and offers personal lines of property and casualty insurance; Shield Insurance Company, a wholly owned subsidiary; and, of course, Cotton States Life, which we are discussing today. The Life company was founded in the fifties as a wholly owned subsidiary, like the others in the Group, but today it is a public company, traded over the counter, and licensed in 10 southeastern states. Cotton States Life has two wholly owned subsidiaries, CSI Brokerage Services, Inc. (CSI) and CS Marketing Resources, Inc. (CSMR), which contribute to the Company's operations by earning override commissions through brokerage agreements. It's really a win-win arrangement because while we are not taking an underwriting risk on these products, we receive override commissions and add value to our distribution system by offering these products. The Company's core business is individual life products, but we also market a universal life product through payroll deduction. Our primary distribution is through some 275 multi-line exclusive agents, who are located in Georgia, Florida, Alabama, Kentucky and Tennessee. We also sell guaranteed issue and simplified issue whole life products through some 1,400 independent agents in those states, plus the Carolinas, Virginia, Mississippi and Louisiana. So, we're selling those products in all 10 states where we are licensed. K
TWST: What are the key issues facing the life insurance industry today
and what impact are those issues having on you as you look at your
strategies for the next few years?
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