[Barbara C. Jordan Newspaper Clippings: February 1971] Page: 2 of 86
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Au
GriThe Auto
Insurance
Fact SheetOn the average, auto insurance rates in
Texas have increased the following
percentage in the last 10 years:
1961............ 16.7%
1961.............3.7%
1963.............6.2%
1965............ 15.2%
1966.............6.1%
1967.............0.6%
1968.............1.2%
1969.............9.9%
1970............14.0%
Total.............75.2%
During the same period, the cost of
living has risen 25%, based on 1957-59
index, whereas the rate of increase in auto
insurance was cumulative.
Dollar increases for all insurance
coverage of a new medium priced Ford,
Chevrolet or Plymouth not used in business
with no male driver under 25 was,
depending upon what area in which you
live:
Harris ............. $22
Dallas ............. $27
Bexar ............. $21
Tarrant........... $25
El Paso ............ $29
Orange ............$21
Nueces......... $21
Lubbock........... $19
Wichita............ $21
Jefferson...........$20
Galveston .......... $26
An estimated $722.5 million of auto
insurance will be sold in Texas this year.
Estimated profit (including investment
income) to insurance companies: $70.5
million.
Estimated cost of claims and claims
adjustment: $444.3 million.
Increase in costs in last five years:
Hospital Room ................. 100%
According to Ray Hurst, vice president
of Texas Hospital Association.
(Not 344% as insurance industry
claims.)
Auto Repairs..................(NA)
Not available according to Allen Richey,
executive director, Texas Independent
Garagemen's Association.
(Insurance industry claims 209%
increase.)
Doctors Fees ................... 30%
According to Texas Medical
Association!
(Not 180% as insurance industry
claims.)I
C
a
e:
iOne Insurance Company's Story
The Rise of National BankersNational Bankers Life, the central
corporate figure in the Great Texas
Insurance Stock Scandal, is no fly-by-night
operation. Its assets are more than $41
million; it is licensed to sell insurance in
Texas and 31 other states and it has more
than a billion dollars worth of life
insurance in force.
Its home offices are in the 18-story
National Bankers Life Building in solvent
downtown Dallas.
Yet its 25-year history are dotted with
curious events. For instance, NBL began to
skyrocket, corporately speaking, about the
same time the ICT-Ben Jack Cage insurance
scandal broke. In fact NBL bought up
policies of the crumpled Cage empire after
he was convicted and fled to Brazil.
During that period the company's
capital was continually being revised
through several stock issues.
In 1958 the company came under
investigation by the Texas Board of
Insurance but was declared solvent andallowed to continue to operate.
It continued acquiring other insurance
companies and continued its phenomenal
growth and in 1963 Texas Investment and
Industrial Enterprises Inc., a holding
company controlled by former Texas Gov.
Allan. Shivers bought controlling interest in
NBL.
Shivers' long-time lieutenant, John
Osorio, was installed as president of NBL
and remained in that job until last
December. (Osorio is one of Waggoner
Carr's law partners.)
Shivers was chairman of the NBL board.
After the Shivers group took over NBL,
the insurance company was merged with
Ideal Life Insurance Co., Interestate Life
Insurance Co., and Cadillac Life Insurance
Co. and increased the capital in the
company from $409,000 to over a million
dollars in 1968.
Frank W. Sharp, who built Sharpstown
in Houston and owns control of the
Sharpstown State Bank, bought 52 percent of NBL's stock from the Shivers
interests for $7.5 million in July of 1968.
Even after Sharp bought control of
NBL, Osorio remained president of the
firm until he was replaced three months
ago.
A federal court and the Securities
Exchange Commission are still looking at
the company's recent history.
The remarkable increase in value of NBL
stock in the last six months of 1969 is
reflected below.
July 3, 1969 NBL stock listed at $5 bid,
$6 asked.
Aug. 7, 1969 NBL stock listed at $15
bid, $16 asked.
Sept. 4, 1969 NBL stock listed at $13.5
bil, $14.5 asked.
Oct. 2, 1969 NBL stock listed at $19.5
bid, $20.5 asked.
Nov. 6, 1969 NBL stock listed at $28
bid, $29 asked.
Dec. 5, 1969 NBL stock listed at $28
bid, $29 asked.The
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[Barbara C. Jordan Newspaper Clippings: February 1971], text, 1971-02~; (https://texashistory.unt.edu/ark:/67531/metapth611223/m1/2/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Texas Southern University.