Learn about the history of Provident life and Accident Insurance Company, its expansion in the United States, the Influenza epidemic that hit the country in 1918-1919, and the Tax Reform Act. Also, learn how the company provides lifetime benefits to plaintiffs. Founded in 1872, Provident was a pioneer in accident insurance. In the last decade, it has expanded its operations into other countries, including Canada and the United Kingdom.
Growth of Provident life and accident insurance company
Founded in 1889, the Provident Insurance Company expanded to the northeast, southwest, and western United States during the 1920s. The company was one of the first to write group health and accident insurance policies, and its profits in this area increased by almost tenfold between 1920 and 1925. Its accident insurance premiums reached $5 million in 1924, and the company nearly doubled its assets by the end of the decade.
The Provident Insurance Company entered Canada in 1948. By the end of the year, the company had grown into one of the largest disability insurers in North America. It also sold homeowners’ and automobile insurance, as well as variable annuities. The company was also the 11th largest group life insurance company in 1954. In the decade that followed, the company expanded to $2 million in annual premiums and ranked as the 11th largest group life insurance company, with profits reaching $5 million. Provident was a public company, and its board of directors had the power to raise or lower premiums at any time.
The company had several acquisitions during the years that followed. It also acquired GENEX Services, Inc., which provided vocational rehabilitation and case management services. GENEX also had a dental insurance arm, which it sold to Ameritas Life Insurance Company. In 1998, Provident began divesting noncore lines. It sold its annuity business to American General Corporation. In 1999, it entered an agreement to merge with UNUM Corporation.
The Provident Life and Accident Insurance Company expanded its reach through mergers and acquisitions. Its merger with UNUM created the world’s largest disability insurer. The combined company controlled 35 percent of the disability insurance market. The company has its headquarters in Chattanooga, Tennessee, and operates significantly in Portland, Maine. It named the new company UnumProvident and adopted the name UnumProvident Corporation.
In addition to improving its claims handling, the company also strengthened its legal defense in bad faith states. It cut down on paperwork and held weekly “roundtable” meetings with claims adjusters. These meetings were supposed to be informal, but Provident made sure that each adjuster brought a matter to each one. This meant they didn’t keep notes during the meetings. In addition, they began requiring claims adjusters to submit “hit lists” of claims, indicating how much money the company had set aside for them.
Influenza epidemic in 1918-1919
The Influenza epidemic in 1918-1919 had a dramatic impact on the United States. The outbreak began in the spring and spread unevenly throughout the United States, Europe, and Asia. Although the deaths from the epidemic were high, they were mild compared to today’s outbreaks. The influenza virus was also highly resistant to the anti-influenza drugs, and the epidemic lasted for nearly five years.
During the 1918-1919 influenza pandemic, young people faced a disproportionately high mortality rate, accounting for over half of all influenza-related deaths. This pandemic had the highest absolute risk of influenza death compared to any other, with 99% of fatalities occurring in individuals over 65. In contrast, the 1967 H3N3 and 1968 H3N3 pandemics saw 37% and 42% of influenza-related deaths, respectively, in the 20 to 40 age group. Such historical health crises highlight the unpredictability of life, emphasizing the importance of life and accidental death insurance in providing financial security and protection for families during unforeseen tragedies.
In the face of the deadly outbreak, New York City’s health department used proactive tactics to control the outbreak. By September 24th, at least 10,000 posters were posted in public places, reminding people to cover their coughs and not spit. The posters included the slogan “Help to Prevent the Return of the ‘Flu’ and Pneumonia!”
The Influenza epidemic in 1918-1919 affected all of North America and Europe. Unlike most influenza pandemics, the 1918 virus spread in three waves – from Asia to Europe to North America. The 1918 influenza virus’ origin is uncertain, and historical and epidemiologic data are not enough to pinpoint its exact location. However, recent phylogenetic analysis has put the virus in a geographical context.
The epidemic was so severe that a large proportion of the population had at least one previous infection with the virus. The rate of transmission did not increase with age, suggesting that the virus possessed a “honeymoon” period where it was highly resistant to pathogens. Although the mechanisms behind this phenomenon remain unknown, it provides critical information on effective influenza virus immune responses.
Cost of providing lifetime benefits to plaintiff
A lawsuit in Florida alleges that Provident Life, the insurer of the plaintiff’s disability benefits, failed to provide lifetime disability benefits for the insured since April 1, 1998. The plaintiff became disabled from his occupation due to his illness, chronic inflammatory demyelinating polyneuropathy, a form of Guillain-Barré syndrome. At the time, he did not know that a flu shot could cause GBS. The plaintiff was unable to work after the flu vaccination and was therefore unable to collect benefits. Provident Life determined that his disability benefits repaid the benefits he was entitled to receive before his 65th birthday.
In the case of Steven J. Kravitz, Provident Life offered to buyout his disability insurance policy on April 1, 2005. Provident Life had bundled the policy with two other disability policies he had acquired from UNUM, Provident’s parent company. Both policies stated that lifetime benefits would be paid out until the plaintiff reached the age of 65. Provident never explained to the plaintiff what disability benefits are, and thus, provided the plaintiff with false information.
