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→‎Sources: Added book "Coach" by A.L
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I don't see how MLM is a criticism as much as it is a description of the company, so I moved it from the critism section; major citations and major cleanup
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{{Infobox Company
{{Infobox Company
| company_name = Primerica Financial Services
| name = Primerica Financial Services
| company_logo = [[Image:Primerica_logo.png|300px]]
| company_logo = [[Image:Primerica_logo.png|300px]]
| company_type = [[Subsidiary]]
| type = [[Subsidiary]]
| parent = [[Citigroup]]
| parent = [[Citigroup]]
| company_slogan = "Help families become debt free and financially independent"
| company_slogan = "Help families become debt free and financially independent"
| foundation = [[February 10]], [[1977]]
| foundation = [[February 10]], [[1977]]
| location = 3120 Breckinridge Blvd.<br />[[Duluth, Georgia|Duluth]], [[Georgia (U.S. state)|GA]]<br />30099-0001<br />770-381-1000
| location = 3120 Breckinridge Blvd.<br />[[Duluth, Georgia|Duluth]], [[Georgia (U.S. state)|GA]]<br />30099-0001<br />1-770-381-1000
| key_people = John Addison, Co-CEO<br /> Rick Williams, Co-CEO and COO<br />Glenn Williams, President
| key_people = John Addison, Co-[[CEO]]<br /> Rick Williams, Co-[[CEO]] and [[Chief operating officer|COO]]<br />Glenn Williams, [[President]]
| industry = [[Financial Services]]
| industry = [[Financial Services]]
| products = [[Life Insurance]]<br />[[Mutual Funds]]<br />[[Annuity (US financial products)|Variable Annuities]]<br />[[Loans]]<br />[[Long term care insurance|Long-Term Care Insurance]]<br />[[Pre-paid legal services|Legal Services]]<br/>[[Vehicle insurance|Car insurance]]<br/>[[Home insurance|Homeowners Insurance]]
| products = [[Life Insurance]]<br />[[Mutual Funds]]<br />[[Annuity (US financial products)|Variable Annuities]]<br />[[Loans]]<br />[[Long term care insurance|Long-Term Care Insurance]]<br />[[Pre-paid legal services|Legal Services]]<br/>[[Vehicle insurance|Car insurance]]<br/>[[Home insurance|Homeowners Insurance]]
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}}
}}


'''Primerica Financial Services''', a wholly owned subsidiary of [[Citigroup]], is headquartered in [[Duluth, Georgia|Duluth]], [[Georgia (state)|Georgia]]. It is the largest financial services marketing organization in North America, with more than 100,000 licensed [[Independent contractor|independent representatives]], of which 26,000 are securities licensed.<ref name="facts">Primerica's History, http://www.primerica.com/public/history.html</ref> The company provides financial products and services, including [[term life insurance]], [[mutual fund]]s, [[variable annuity|variable annuities]], [[loan]]s, [[long-term care insurance]] and pre-paid [[Pre-paid legal services|legal service]]s, to over 6 million clients.<ref name="facts"/> In August 2007 Primerica and Answer Financial introduced [https://www08.answerfinancial.com/PrimericaLaunch.aspx?a=primerica Primerica Secure], an auto and homeowner's insurance referral program to help families get the best quotes from today's competitive industry. Primerica conducts business principally in the [[United States|US]] and [[Canada]]; the company also operates in [[Spain]] as CitiSoluciones.
'''Primerica Financial Services''', a wholly owned subsidiary of [[Citigroup]], is headquartered in [[Duluth, Georgia|Duluth]], [[Georgia (state)|Georgia]]. It is the largest financial services marketing organization in North America, with more than 100,000 licensed [[Independent contractor|independent representatives]], of which 26,000 agents are [[NASD]] [[security (finance)|securities]] licensed through PFS Investments, Inc., Primerica's securities [[broker-dealer]] [[affiliate]].<ref name="facts">Primerica's History, http://www.primerica.com/public/history.html</ref> The company provides financial products and services, including [[term life insurance]], [[mutual fund]]s, [[variable annuity|variable annuities]], [[loan]]s, [[long-term care insurance]] and pre-paid [[Pre-paid legal services|legal service]]s, to over 6 million clients.<ref name="facts"/> In August 2007 Primerica and Answer Financial introduced [http://www.primericasecure.com Primerica Secure], an auto and homeowner's insurance referral program to help families get the best quotes from today's competitive industry. Primerica conducts business principally in the [[United States|US]] and [[Canada]]. In [[2000]] the company expanded overseas to begin operating in [[Spain]] as [https://emea1.primerica.com/public/citisoluciones.html CitiSoluciones].<ref>{{cite news |first = Leslie Werstein |last = Hann |url = http://ww3.primerica.com/public/who/articles/spain_expansion.html |title = Spain Is First Stop in Primerica's Overseas Expansion |publisher = [http://www.bestreview.com Best's Review] |date= [[2000]] |accessdate = 2007-08-31}}</ref>


Primerica states that its marketing plan pays representatives commission on personal business and override commissions on the income generated by the representative's sales group. This marketing structure is similar to the General Agency concept in insurance where commissions are earned at several levels.
Primerica has been characterized as a [[multi-level marketing]] company.<ref>{{cite book |last= Poe |first= Richard |coauthors= Scott DeGarmo |authorlink= <!--Yet to be created--> |title= Wave 4: Network Marketing in the 21st Century |month= September |year= 1999 |publisher= Three Rivers Press |location= [[Rocklin, California]] |isbn= 978-0761517528 }}</ref> Primerica states that its marketing plan pays representatives commission on personal business and override commissions on the income generated by the representative's sales group. This marketing structure is similar to the General Agency concept in insurance where commissions are earned at several levels.


==History==
==History==
⚫
[[Image:Primerica Gametime 2007.jpg|thumb|right|Official Atlanta Convention & Travel Bureau promotional banner for the Primerica 2007 Convention]]
⚫
[[Image:Primerica Convention 2007.jpg|thumb|right|60,000 representatives attend the 2007 convention at the Georgia Dome]]
Founded in [[1977]] by [[Arthur L. Williams, Jr.]], the company, then named [[A. L. Williams]], established a market niche by mass-marketing the concept of “[[Buy term and invest the difference]].” With “BTID,” the company advised its mostly middle-income client base to purchase sufficient protection with term life insurance and systematically save and invest in separate investment vehicles, such as mutual fund [[Individual Retirement Account|IRA]]s. A.L. Williams was initially established as privately held general agency, at first selling [[life insurance]] policies underwritten by Financial Assurance, Inc. (FIA).
Founded in [[1977]] by [[Arthur L. Williams, Jr.]], the company, then named [[A. L. Williams]], established a market niche by mass-marketing the concept of “[[Buy term and invest the difference]].” With “BTID,” the company advised its mostly middle-income client base to purchase sufficient protection with term life insurance and systematically save and invest in separate investment vehicles, such as mutual fund [[Individual Retirement Account|IRA]]s. A.L. Williams was initially established as privately held general agency, at first selling [[life insurance]] policies underwritten by Financial Assurance, Inc. (FIA).


The company expanded, outgrowing the capacity of FIA to process its business. In 1980, A.L. Williams entered into a contract with a larger underwriter of life insurance, The Massachusetts Indemnity and Life Insurance Company (MILICO), who's parent was PennCorp. To support A.L. Williams, headquartered in [[Atlanta]], MILICO established a regional office in that city. In 1981, the company established First American National Corporation (later called The A.L. Williams Corporation) as a holding company for First American Life Insurance (later called A.L. Williams Life Insurance Company) and First American National Securities (later renamed PFS Investments, Inc). In 1982, The A.L. Williams Corporation (ALWC) underwrote a $27 million public stock offering, listed in the [[Over-the-counter (finance)|Over the Counter]] (OTC) market under the symbol ALWC. In 1983, the company became listed on the [[NASDAQ]] exchange under the same symbol.
The company expanded, outgrowing the capacity of FIA to process its business. In 1980, A.L. Williams entered into a contract with a larger underwriter of life insurance, The Massachusetts Indemnity and Life Insurance Company (MILICO), who's parent was PennCorp. To support A.L. Williams, headquartered in [[Atlanta]], MILICO established a regional office in that city. In 1981, the company established First American National Corporation (later called The A.L. Williams Corporation) as a holding company for First American Life Insurance (later called A.L. Williams Life Insurance Company) and First American National Securities (later renamed PFS Investments, Inc). In 1982, The A.L. Williams Corporation (ALWC) underwrote a $27 million public stock offering, listed in the [[Over-the-counter (finance)|Over the Counter]] (OTC) market under the symbol ALWC. In 1983, the company became listed on the [[NASDAQ]] exchange under the same symbol. That same year Gerry Tsai, [[Chairman]] & [[CEO]] of [[cash cow]] American Can Company, acquired and merged with MILICO's parent company PennCorp. American Can later was renamed Primerica Corporation.


In 1985 ALWC begin the procedure to open business in [[Canada]]. After encountering legal and cultural roadblocks of expanding outside the United States, ALWC finally began selling insurance products of Pennsylvania Life Insurance Company, a Primerica subsidiary, in Canada in 1986.
⚫
In 1983, Gerry Tsai, [[Chairman]] & [[CEO]] of a [[cash cow]] company called American Can, acquired and merged with MILICO's parent company PennCorp. American Can later was renamed Primerica Corporation. On [[November 30]], [[1988]] ALWC acquired MILICO from Primerica Corporation through a [[stock swap|stock merger]] acquisition for 44.58 million shares of ALWC [[stock]], making Primerica Corporation the majority shareholder of ALWC. In December of 1988, [[Sandy Weill]]'s Commercial Credit acquired Primerica Corporation for $1.54 billion, retaining the Primerica name. At this time, the major businesses under Primerica Corporation included A.L. Williams, Smith Barney and Commercial Credit. On [[February 6]], 1989 Primerica Corporation began trading on the [[New York Stock Exchange]].

⚫
On [[November 30]], [[1988]] ALWC acquired MILICO from Primerica Corporation through a [[stock swap|stock merger]] acquisition for 44.58 million shares of ALWC [[stock]], making Primerica Corporation the majority shareholder of ALWC. In December of 1988, [[Sandy Weill]]'s Commercial Credit acquired Primerica Corporation for $1.54 billion, retaining the Primerica name. At this time, the major businesses under Primerica Corporation included A.L. Williams, Smith Barney and Commercial Credit. On [[February 6]], 1989 Primerica Corporation began trading on the [[New York Stock Exchange]].


In November of 1989, Primerica purchased the remaining 30% of ALWC that it did not previously own, and also purchased the privately held [[General Agent]], A.L. Williams, Inc. In 1991, Primerica Corporation changed the name of A.L. Williams to Primerica Financial Services. The following year, MILICO, Primerica Financial Services life insurance underwriter, changed its name to Primerica Life Insurance Company and FANS, its broker/dealer changed to PFS Investments, Inc.
In November of 1989, Primerica purchased the remaining 30% of ALWC that it did not previously own, and also purchased the privately held [[General Agent]], A.L. Williams, Inc. In 1991, Primerica Corporation changed the name of A.L. Williams to Primerica Financial Services. The following year, MILICO, Primerica Financial Services life insurance underwriter, changed its name to Primerica Life Insurance Company and FANS, its broker/dealer changed to PFS Investments, Inc.
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In 1998, Travelers Group and banking giant Citicorp merged creating [[Citigroup]] ({{NYSE|C}}). Primerica and its affiliates continue to operate as subsidiaries of Citigroup, although the Travelers insurance business was spun off in 2002. Along with Primerica, other major brand names under Citigroup include [[Citibank]], [[CitiFinancial]], [[Smith Barney]], and [[Banamex]].
In 1998, Travelers Group and banking giant Citicorp merged creating [[Citigroup]] ({{NYSE|C}}). Primerica and its affiliates continue to operate as subsidiaries of Citigroup, although the Travelers insurance business was spun off in 2002. Along with Primerica, other major brand names under Citigroup include [[Citibank]], [[CitiFinancial]], [[Smith Barney]], and [[Banamex]].


Long time veteran executives John Addison and Rick Williams, quoted by Art Williams in his book ''Coach'' as two "true sons" of A.L. Williams,<ref>{{cite book |last= Williams |first= Art |coauthors= Karen Kassel Hutto |authorlink= Arthur L. Williams, Jr. |title= Coach |month= June |year= 2006 |publisher= Art Williams Productions |location= [[Atlanta, Georgia]] |isbn= 0-9786266-0-5 }}</ref> were appointed co-CEOs in 1999, with Glen Williams promoted to President in 2005. <ref>Primerica Leadership, http://ww3.primerica.com/public/who/leadership.html</ref>
Long time veteran executives John Addison and Rick Williams, quoted by Art Williams in his book ''Coach'' as "two true sons of A.L. Williams,"<ref>{{cite book |last= Williams |first= Art |coauthors= Karen Kassel Hutto |authorlink= Arthur L. Williams, Jr. |title= Coach |month= June |year= 2006 |publisher= Art Williams Productions |location= [[Atlanta, Georgia]] |isbn= 0-9786266-0-5 }}</ref> were appointed co-CEOs in 1999, with Glen Williams promoted to President in 2005.<ref>Primerica Leadership, http://ww3.primerica.com/public/who/leadership.html</ref>

⚫
Primerica's life insurance underwriter Primerica Life Insurance Company, and its New York based subsidiary National Benefit Life, have been highly rated by the [http://www.imsaethics.org/index.html Insurance Marketplace Standards Association],<ref>{{cite news |first = |last = |url = http://newsblaze.com/story/2007030503002000002.mwir/topstory.html |title =
⚫
Primerica Life, National Benefit Life Renew Qualification in IMSA, Ethical Standards Organization |publisher = [http://www.newsblaze.com News Blaze] |date= [[2007]] |accessdate = 2007-08-20}}</ref> a nonprofit organization based out of [[Bethesda, MD]] with the intent to create ethical standards for the insurance industry.


===2007 Convention===
===2007 Convention===
⚫
[[Image:Primerica Gametime 2007.jpg|thumb|right|Official Atlanta Convention & Travel Bureau promotional banner for the Primerica 2007 Convention]]
⚫
[[Image:Primerica Convention 2007.jpg|thumb|right|60,000 representatives attend the 2007 convention at the Georgia Dome]]
⚫
Primerica held its 30th Anniversary Convention August 1-4, 2007 in Atlanta, Georgia at the [[Georgia Dome]] and the [[Georgia World Congress Center]].<ref>Primerica 2007 Georgia Dome event, http://www.gadome.com/events/2007primerica.html</ref> An estimated 60,000 representatives attended.[http://www.gadome.com/events/2007primerica.html] [http://www.google.com/calendar/event?eid=NGhxbzIyZWFjNmpxcmJyN2I1MHVldGQzbjggZGVrZWxsZXlAYXRsYW50YWdhLmdvdg&ctz=America/New_York] Primerica Secure was introduced at the event, as well as the newest term life insurance product Custom Advantage. Notable speakers included [[Chuck Prince|Charles Prince]], Chairman & CEO of [[Citigroup]], founder of [[Pre-Paid Legal Services, Inc.]] [[Harland Stonecipher]], as well as [[Governor of Georgia|Georgia Governor]] [[Sonny Perdue]].


==Ratings and Awards==
⚫
Primerica held its 30th Anniversary Convention August 1-4, 2007 in Atlanta, Georgia at the [[Georgia Dome]] and the [[Georgia World Congress Center]].<ref>Primerica 2007 Georgia Dome event, http://www.gadome.com/events/2007primerica.html</ref> An estimated 60,000 representatives attended.[http://www.gadome.com/events/2007primerica.html][http://www.google.com/calendar/event?eid=NGhxbzIyZWFjNmpxcmJyN2I1MHVldGQzbjggZGVrZWxsZXlAYXRsYW50YWdhLmdvdg&ctz=America/New_York] Primerica Secure was introduced at the event, as well as the new life insurance product Custom Advantage. Notable speakers included [[Chuck Prince|Charles Prince]], Chairman & CEO of [[Citigroup]], founder of [[Pre-Paid Legal Services, Inc.]] [[Harland Stonecipher]], as well as [[Governor of Georgia|Georgia Governor]] [[Sonny Perdue]].
⚫
Primerica's life insurance underwriter Primerica Life Insurance Company, and its [[subsidiary]] company National Benefit Life based in the state of New York, have been rated A+ for "Superior" by [[A.M. Best]] as of [[November 2006]].<ref>{{cite news |first = |last = |url = http://findarticles.com/p/articles/mi_m0EIN/is_2006_Nov_2/ai_n16854073 |title =
A.M. Best Affirms Ratings of Primerica Life |publisher = [Business Wire] |date= [[2006-11-02]] |accessdate = 2007-08-31}}</ref> [[Standard & Poor's]] has the company rated AA for "Very Strong."<ref>{{cite news |first = |last = |url = http://ww3.primerica.com/public/who/ratings.html |title =
Top Marks for Primerica Life |publisher = |date= [[2006]] |accessdate = 2007-08-31}}</ref> Recently the [http://www.imsaethics.org/index.html Insurance Marketplace Standards Association], a [[non-profit]] organization based out of [[Bethesda, MD]] with the intent to create ethical standards for the insurance industry, has renewed qualification for Primerica Life and National Benefit Life for high standards and quality business, "continuing dedication to ethical business practices."<ref>{{cite news |first = |last = |url = http://newsblaze.com/story/2007030503002000002.mwir/topstory.html |title =
⚫
Primerica Life, National Benefit Life Renew Qualification in IMSA, Ethical Standards Organization |publisher = [http://www.newsblaze.com News Blaze] |date= [[2007]] |accessdate = 2007-08-20}}</ref>.

In 2005 Primerica representatives were able to begin submitting life insurance applications electronically via [[Palm]] [[handheld]] devices.<ref>{{cite news | first = Ryan | last = Kairer | title = Primerica Deploys 4,000 Palm Devices | publisher = [http://www.palminfocenter.com Palm Infocenter] | date = [[2005-08-30]] | url = http://www.palminfocenter.com/news/8051/primerica-deploys-4000-palm-devices | accessdate=2007-08-31}}</ref> Clients have the opportunity to get insurance quotes on the spot and complete the life application paperless. This effectively sped up the [[underwriting#Insurance_underwriting|underwriting]] process for Primerica Life and increased the amount of policies processed and insurance face amount put into force on a monthly basis.<ref>{{cite news |first = Michael |last = Sisk | title = Primerica Experiment in Insurance Pays Off | publisher = [http://www.us-banker.com US Banker] | date = [[2005-11-01]] | url = http://news.primerica.com/public/news/primerica_2005.html | accessdate=2007-08-31}}</ref>

For the fourth time in a row in 2007, Primerica has been awarded the Dalbar Service Award by Dalbar, Inc., a client service rating organization focused on raising the standards of customer satisfaction and quality in the financial services industry, for Primerica's excellent customer service in mutual funds.<ref>{{cite news |first = Kathleen |last = Whalen |url = http://www.dalbarinc.com/content/printerfriendly.asp?page=2007011701 |title = DALBAR Announces Its 2006 Customer Service Award Winners in Financial Services |publisher = [http://www.dalbarinc.com Dalbar] |date= [[2007-01-17]] |accessdate = 2007-08-31}}</ref>


==Criticism==
==Criticism==
Primerica has been characterized as a [[multi-level marketing]] (MLM) company.<ref>Richard Poe, ''"Wave 4, Network Marketing in the 21st Century.'' Three Rivers Press, 1999 "(network marketing) ...lay at the core of the Citigroup merger. One of the Travelers Group's most valued assets was a MLM subsidiary called Primerica."</ref> There have been complaints that some representatives and their respective office branches have hired new members through deceptive job interviews. Primerica policies prohibits such methods and require strict compliance guidelines relating to all aspects of recruiting new representatives.
There have been complaints that some representatives and their respective office branches have hired new members through deceptive job interviews. Primerica home office policies prohibits such methods and require strict compliance guidelines relating to all aspects of recruiting new representatives.


Recently some major compliant websites, notably [[Ripoff Report]], have reversed their stance on the company's integrity and have verified claims that were speculative. <ref>{{cite news | title = Report: Rip-off Report Investigation: Primerica | publisher = [[Ripoff Report]] | date = [[2007-01-08]] | url = http://www.ripoffreport.com/reports/0/229/ripoff0229393.htm | accessdate=2007-08-31}}</ref> <ref>{{cite news | title = Primerica Complaints | publisher = [http://www.corporatenarc.com Corporate Narc] | url = http://www.corporatenarc.com/primerica-complaints.php | accessdate=2007-08-31}}</ref>
Recently a few consumer complaint websites, notably [[Ripoff Report]], have reversed their negative stance on the company's business practice and have verified claims that were speculative. <ref>{{cite news | title = Report: Rip-off Report Investigation: Primerica | publisher = [[Ripoff Report]] | date = [[2007-01-08]] | url = http://www.ripoffreport.com/reports/0/229/ripoff0229393.htm | accessdate=2007-08-31}}</ref> <ref>{{cite news | title = Primerica Complaints | publisher = [http://www.corporatenarc.com Corporate Narc] | url = http://www.corporatenarc.com/primerica-complaints.php | accessdate=2007-08-31}}</ref>


==External links==
==External links==
Line 55: Line 63:


==Sources==
==Sources==
⚫
*[http://www.citigroup.com/citigroup/corporate/history/primerica.htm Primerica Financial Services] Citigroup.com, viewed August 1, 2007
*[http://www.newgeorgiaencyclopedia.org/nge/Article.jsp?id=h-1104 New Georgia Encyclopedia] NGE, viewed November 7, 2006
*[http://www.newgeorgiaencyclopedia.org/nge/Article.jsp?id=h-1104 New Georgia Encyclopedia] NGE, viewed November 7, 2006
*[http://www.citigroup.com/citigroup/corporate/history/index.htm Citigroup Corporate History] Citigroup.com, viewed August 1, 2007
*[http://www.citigroup.com/citigroup/corporate/history/index.htm Citigroup Corporate History] Citigroup.com, viewed August 1, 2007
⚫
*[http://www.citigroup.com/citigroup/corporate/history/primerica.htm Primerica Financial Services] Citigroup.com, viewed August 1, 2007
*{{cite book |last= Williams |first= Art |coauthors= Karen Kassel Hutto |authorlink= Arthur L. Williams, Jr. |title= Coach |month= June |year= 2006 |publisher= Art Williams Productions |location= [[Atlanta, Georgia]] |isbn= 0-9786266-0-5 }}
*{{cite book |last= Williams |first= Art |coauthors= Karen Kassel Hutto |authorlink= Arthur L. Williams, Jr. |title= Coach |month= June |year= 2006 |publisher= Art Williams Productions |location= [[Atlanta, Georgia]] |isbn= 0-9786266-0-5 }}
*[http://newsblaze.com/story/2007030503002000002.mwir/topstory.html News Blaze] article: IMSA rates Primerica Life Insurance company for ethical and excellent service, viewed August 20, 2007
*[http://newsblaze.com/story/2007030503002000002.mwir/topstory.html News Blaze] article: IMSA rates Primerica Life Insurance company for ethical and excellent service, viewed August 20, 2007


==References==
==References==
{{reflist}}
{{reflist|2}}




Revision as of 23:15, 31 August 2007

Primerica Financial Services
Company typeSubsidiary
IndustryFinancial Services
FoundedFebruary 10, 1977
Headquarters3120 Breckinridge Blvd.
Duluth, GA
30099-0001
1-770-381-1000
Key people
John Addison, Co-CEO
Rick Williams, Co-CEO and COO
Glenn Williams, President
ProductsLife Insurance
Mutual Funds
Variable Annuities
Loans
Long-Term Care Insurance
Legal Services
Car insurance
Homeowners Insurance
Number of employees
2,200 (2007)
ParentCitigroup
Websitewww.primerica.com

Primerica Financial Services, a wholly owned subsidiary of Citigroup, is headquartered in Duluth, Georgia. It is the largest financial services marketing organization in North America, with more than 100,000 licensed independent representatives, of which 26,000 agents are NASD securities licensed through PFS Investments, Inc., Primerica's securities broker-dealer affiliate.[1] The company provides financial products and services, including term life insurance, mutual funds, variable annuities, loans, long-term care insurance and pre-paid legal services, to over 6 million clients.[1] In August 2007 Primerica and Answer Financial introduced Primerica Secure, an auto and homeowner's insurance referral program to help families get the best quotes from today's competitive industry. Primerica conducts business principally in the US and Canada. In 2000 the company expanded overseas to begin operating in Spain as CitiSoluciones.[2]

Primerica has been characterized as a multi-level marketing company.[3] Primerica states that its marketing plan pays representatives commission on personal business and override commissions on the income generated by the representative's sales group. This marketing structure is similar to the General Agency concept in insurance where commissions are earned at several levels.

History

Founded in 1977 by Arthur L. Williams, Jr., the company, then named A. L. Williams, established a market niche by mass-marketing the concept of “Buy term and invest the difference.” With “BTID,” the company advised its mostly middle-income client base to purchase sufficient protection with term life insurance and systematically save and invest in separate investment vehicles, such as mutual fund IRAs. A.L. Williams was initially established as privately held general agency, at first selling life insurance policies underwritten by Financial Assurance, Inc. (FIA).

The company expanded, outgrowing the capacity of FIA to process its business. In 1980, A.L. Williams entered into a contract with a larger underwriter of life insurance, The Massachusetts Indemnity and Life Insurance Company (MILICO), who's parent was PennCorp. To support A.L. Williams, headquartered in Atlanta, MILICO established a regional office in that city. In 1981, the company established First American National Corporation (later called The A.L. Williams Corporation) as a holding company for First American Life Insurance (later called A.L. Williams Life Insurance Company) and First American National Securities (later renamed PFS Investments, Inc). In 1982, The A.L. Williams Corporation (ALWC) underwrote a $27 million public stock offering, listed in the Over the Counter (OTC) market under the symbol ALWC. In 1983, the company became listed on the NASDAQ exchange under the same symbol. That same year Gerry Tsai, Chairman & CEO of cash cow American Can Company, acquired and merged with MILICO's parent company PennCorp. American Can later was renamed Primerica Corporation.

In 1985 ALWC begin the procedure to open business in Canada. After encountering legal and cultural roadblocks of expanding outside the United States, ALWC finally began selling insurance products of Pennsylvania Life Insurance Company, a Primerica subsidiary, in Canada in 1986.

On November 30, 1988 ALWC acquired MILICO from Primerica Corporation through a stock merger acquisition for 44.58 million shares of ALWC stock, making Primerica Corporation the majority shareholder of ALWC. In December of 1988, Sandy Weill's Commercial Credit acquired Primerica Corporation for $1.54 billion, retaining the Primerica name. At this time, the major businesses under Primerica Corporation included A.L. Williams, Smith Barney and Commercial Credit. On February 6, 1989 Primerica Corporation began trading on the New York Stock Exchange.

In November of 1989, Primerica purchased the remaining 30% of ALWC that it did not previously own, and also purchased the privately held General Agent, A.L. Williams, Inc. In 1991, Primerica Corporation changed the name of A.L. Williams to Primerica Financial Services. The following year, MILICO, Primerica Financial Services life insurance underwriter, changed its name to Primerica Life Insurance Company and FANS, its broker/dealer changed to PFS Investments, Inc.

Primerica Corporation, in December of 1993, acquired the remaining 73% of Travelers Insurance Corporation and adopted the name, Travelers Inc., which was changed to Travelers Group the following year. Travelers Group included Primerica Financial Services, Smith Barney, Travelers Life and Annuity, Travelers Property/Casualty, Commercial Credit and other financial businesses.

In December 1997, Primerica announced it was going to begin offering pre-paid legal through Pre-Paid Legal Services, Inc., at the time both subsidiaries of Travelers Group, Inc.[4]

In 1998, Travelers Group and banking giant Citicorp merged creating Citigroup (NYSE: C). Primerica and its affiliates continue to operate as subsidiaries of Citigroup, although the Travelers insurance business was spun off in 2002. Along with Primerica, other major brand names under Citigroup include Citibank, CitiFinancial, Smith Barney, and Banamex.

Long time veteran executives John Addison and Rick Williams, quoted by Art Williams in his book Coach as "two true sons of A.L. Williams,"[5] were appointed co-CEOs in 1999, with Glen Williams promoted to President in 2005.[6]

2007 Convention

Official Atlanta Convention & Travel Bureau promotional banner for the Primerica 2007 Convention
60,000 representatives attend the 2007 convention at the Georgia Dome

Primerica held its 30th Anniversary Convention August 1-4, 2007 in Atlanta, Georgia at the Georgia Dome and the Georgia World Congress Center.[7] An estimated 60,000 representatives attended.[1] [2] Primerica Secure was introduced at the event, as well as the newest term life insurance product Custom Advantage. Notable speakers included Charles Prince, Chairman & CEO of Citigroup, founder of Pre-Paid Legal Services, Inc. Harland Stonecipher, as well as Georgia Governor Sonny Perdue.

Ratings and Awards

Primerica's life insurance underwriter Primerica Life Insurance Company, and its subsidiary company National Benefit Life based in the state of New York, have been rated A+ for "Superior" by A.M. Best as of November 2006.[8] Standard & Poor's has the company rated AA for "Very Strong."[9] Recently the Insurance Marketplace Standards Association, a non-profit organization based out of Bethesda, MD with the intent to create ethical standards for the insurance industry, has renewed qualification for Primerica Life and National Benefit Life for high standards and quality business, "continuing dedication to ethical business practices."[10].

In 2005 Primerica representatives were able to begin submitting life insurance applications electronically via Palm handheld devices.[11] Clients have the opportunity to get insurance quotes on the spot and complete the life application paperless. This effectively sped up the underwriting process for Primerica Life and increased the amount of policies processed and insurance face amount put into force on a monthly basis.[12]

For the fourth time in a row in 2007, Primerica has been awarded the Dalbar Service Award by Dalbar, Inc., a client service rating organization focused on raising the standards of customer satisfaction and quality in the financial services industry, for Primerica's excellent customer service in mutual funds.[13]

Criticism

There have been complaints that some representatives and their respective office branches have hired new members through deceptive job interviews. Primerica home office policies prohibits such methods and require strict compliance guidelines relating to all aspects of recruiting new representatives.

Recently a few consumer complaint websites, notably Ripoff Report, have reversed their negative stance on the company's business practice and have verified claims that were speculative. [14] [15]

External links

Sources

  • Primerica Financial Services Citigroup.com, viewed August 1, 2007
  • New Georgia Encyclopedia NGE, viewed November 7, 2006
  • Citigroup Corporate History Citigroup.com, viewed August 1, 2007
  • Williams, Art (2006). Coach. Atlanta, Georgia: Art Williams Productions. ISBN 0-9786266-0-5. {{cite book}}: Unknown parameter |coauthors= ignored (|author= suggested) (help); Unknown parameter |month= ignored (help)
  • News Blaze article: IMSA rates Primerica Life Insurance company for ethical and excellent service, viewed August 20, 2007

References

  1. ^ a b Primerica's History, http://www.primerica.com/public/history.html
  2. ^ Hann, Leslie Werstein (2000). "Spain Is First Stop in Primerica's Overseas Expansion". Best's Review. Retrieved 2007-08-31. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
  3. ^ Poe, Richard (1999). Wave 4: Network Marketing in the 21st Century. Rocklin, California: Three Rivers Press. ISBN 978-0761517528. {{cite book}}: Unknown parameter |coauthors= ignored (|author= suggested) (help); Unknown parameter |month= ignored (help)
  4. ^ "Primerica Financial Services to Offer Legal Plans Through Pre-paid Legal Services, Inc". Business Wire. 1997-12-19. Retrieved 2007-08-20. {{cite news}}: Check date values in: |date= (help)
  5. ^ Williams, Art (2006). Coach. Atlanta, Georgia: Art Williams Productions. ISBN 0-9786266-0-5. {{cite book}}: Unknown parameter |coauthors= ignored (|author= suggested) (help); Unknown parameter |month= ignored (help)
  6. ^ Primerica Leadership, http://ww3.primerica.com/public/who/leadership.html
  7. ^ Primerica 2007 Georgia Dome event, http://www.gadome.com/events/2007primerica.html
  8. ^ "A.M. Best Affirms Ratings of Primerica Life". [Business Wire]. 2006-11-02. Retrieved 2007-08-31. {{cite news}}: Check date values in: |date= (help)
  9. ^ "Top Marks for Primerica Life". 2006. Retrieved 2007-08-31. {{cite news}}: Check date values in: |date= (help)
  10. ^ "Primerica Life, National Benefit Life Renew Qualification in IMSA, Ethical Standards Organization". News Blaze. 2007. Retrieved 2007-08-20. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
  11. ^ Kairer, Ryan (2005-08-30). "Primerica Deploys 4,000 Palm Devices". Palm Infocenter. Retrieved 2007-08-31. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
  12. ^ Sisk, Michael (2005-11-01). "Primerica Experiment in Insurance Pays Off". US Banker. Retrieved 2007-08-31. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
  13. ^ Whalen, Kathleen (2007-01-17). "DALBAR Announces Its 2006 Customer Service Award Winners in Financial Services". Dalbar. Retrieved 2007-08-31. {{cite news}}: Check date values in: |date= (help); External link in |publisher= (help)
  14. ^ "Report: Rip-off Report Investigation: Primerica". Ripoff Report. 2007-01-08. Retrieved 2007-08-31. {{cite news}}: Check date values in: |date= (help)
  15. ^ "Primerica Complaints". Corporate Narc. Retrieved 2007-08-31. {{cite news}}: External link in |publisher= (help)


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