Chancellor Corp. Shareholder Letter Announcing Acquisition of Life Insurance Organization.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , Calif.--(BUSINESS WIRE)--Oct. 1, 1997--The financial subsidiary of Chancellor Corp. "CELR" announced today that the company has acquired controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in a Fraternal fraternal /fra·ter·nal/ (frah-ter´n'l) 1. of or pertaining to brothers. 2. of twins; derived from two oocytes. fra·ter·nal adj. 1. Of or relating to brothers. Insurance Society, one of only 70 such organizations in the country. The total price of the acquisition was listed at $2.5 million in a combined cash, stock, and notes transaction. The acquisition includes real estate, office furniture and fixtures, in addition to all present and future business of the non-profit Fraternal Organization. Chancellor President Martin Newman stated, "We expect a smooth transition. All current management including the president will stay in place, along with his seasoned professional staff." Gross premiums for written policies for the next 12 months are projected at $35 million. With the company holding a unique insurance license that permits it to market benefits in all fifty states by mail, over the Internet, and through its licensed agents, Chancellor Corp. will embark upon a new and exciting marketing strategy that includes changing the Fraternal's name. Present members are currently offered only limited forms of Life, Health and Group Annuity insurance contracts. New plans call for immediate expansion of additional programs of limited coverage requiring minimum underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. from reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of medical and hospital expenses for the treatment of specified diseases, such as AIDS or cancer to doctor and emergency room visits, for all medical needs. Other programs ready to be implemented are: Individual Annuities, Pre-Paid Legal Services This article is about the legal term. For the company, see Pre-Paid Legal Services, Inc.. Pre-paid legal services refers to individual or group employee benefit legal plans in which members pay a monthly fee in exchange for access to a range of legal , Motor Club Road Service as well as Home Health Care and related plans like Extended Care and Long Term Care needs. Premiums anticipated from these programs are expected to be in the $75 to $80 million range per year, with better than industry loss ratios. CONTACT: Gerald Communications Gerald Sterchi, 916/854-4931 gerald@geraldsnet.com http://www.geraldsnet.com |
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