Trinity Life Insurance Co.
On June 22, 2006 Trinity Life Insurance Company was granted its Certificate of Authority to conduct business as a domestic insurance company by the Oklahoma Department of Insurance.
The capital and surplus requirements for an Oklahoma domestic life insurer is $1,500,000. FTFC capitalized TLIC initially with $2,000,000 and will add an additional $3,000,000, for a total capitalization of $5,000,000. TLIC began its marketing operations in March 2007.
TLIC currently markets "The Trinity Life Accumulator". The Trinity Life Accumulator is an individual life insurance/annuity product that provides life insurance death benefits, however the primary focus of the product is to provide living benefits thorugh an annuity rider. The annuity rider's interest rate is guaranteed at 4%. The annuity rider is eligible to receive additional interest credits as declared by the Board of Directors. The initial interest rate declared by the Board of Directors in March 2007 was 5%. The current rate was increased to 6% earlier this year. We are currently working with our consulting actuaries to determine the feasibility of offering a term to 100 life insurance policy with a critical illness benefits to sell as a worksite product. The Board of Directors will determine, after reviewing the actuarial studies, the viability of writing this product.
TLIC will use the shareholder base of the parent company for leads and referrals to market its initial insurance product. It has been proven that this referral network may provide TLIC's sales representatives a competitive advantage by providing leads for quality prospects. The training of representatives will be conducted by senior company personnel who have many years experience in sales training.
The Company has a relationship with a marketing group that markets work site products in Oklahoma. Several of FTFC's Directors and current shareholders own insurance agencies that market work site products. Combined, these Directors and shareholders currently write several million dollars of premium each year in worksite policies. This should provide an opportunity to successfully enter this marketplace in the future.
The life insurance industry is the nation's only multi-trillion dollar business. At the end of 2003, there was over $16.8 trillion of life insurance in force in the U.S. New business is being written at a rate of over $2.9 trillion each year. In 2003, the life insurance industry produced an income of over $724 billion and had assets exceeding $3.8 trillion. Expenses due to the payment of death benefits, and operating expenses including taxes, amounted to $160 billion. Over $528 Billion was paid as living benefits, an impressive 73% of total revenue. Net income exceeded $86 billion. No wonder that the life insurance business is considered to be one of the most profitable and financially sound industries in the world. This is the business that Trinity Life Insurance Company (TLIC) is entering.
Oklahoma offers a great market for insurance sales. During 2005, over 4.9 billion in life, A&H, and annuity premiums were paid by Oklahoma residents. That's over $13.4 million! Every day! Unfortunately for Oklahoma residents, 97% of this goes to foreign companies.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.