PROVIDENT AMERICAN ANNOUNCES AGREEMENT IN PRINCIPLE WITH THE LOEWEN GROUP INC. OF BURNABY, BRITISH COLUMBIA
PROVIDENT AMERICAN ANNOUNCES AGREEMENT IN PRINCIPLE WITH
THE LOEWEN GROUP INC. OF BURNABY, BRITISH COLUMBIA
NORRISTOWN, Pa., Nov. 22 /PRNewswire/ -- Provident American Corporation (NASDAQ: PAMC), an insurance holding company, announced today that it has reached an agreement in principle with The Loewen Group Inc. of Burnaby, British Columbia, for the sale of life insurance to fund pre-arranged funeral services at Loewen funeral homes in the United States.
Loewen, the second largest funeral service corporation in North America, owns and operates, through its subsidiaries and associated companies, 245 funeral homes, 21 cemeteries and five crematoria in the United States. Loewen currently arranges approximately $30 million annually of pre-planned funeral services funded by ordinary life insurance.
The prospective agreement will be for a term of 10 years and appoints a Loewen subsidiary as a managing general agent for the company and provides for commissions, profit sharing and stock options at fixed prices to be granted based on face amount of pre-need life insurance sales.
/CONTACT: Anthony R. Verdi, CFO of Provident American, 215-279-2500/
(PAMC) CO: Provident American Corporation ST: Pennsylvania IN: INS SU: LJ-MP -- PH003 -- 6265 11/22/91 09:32 EST