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LONE STAR LIFE INSURANCE COMPANY

LONE STAR LIFE INSURANCE COMPANY. Lone Star Life Insurance Company, headquartered in Dallas, offers life, accident, and health insurance throughout the United States. The company was founded by Wilfred H. Smith and others and was incorporated in 1951. In 1957 Pacific American Life Insurance Company of Houston merged with the firm. In 1968 control was acquired by Walter B. Hailey, Jr. (a Lone Star general agent since 1955 and president of Total Insurance Planning Systems, a nationwide marketing organization), and D. A. Keener (a company director and former general manager of Affiliated Food Stores). In 1969 the company combined its home office functions with Southwest Indemnity and Life Insurance Company of Dallas, and Southwest took over its administrative work for a monthly fee. In 1971 Planned Marketing Associates, Incorporated, a Dallas-based insurance-marketing company, acquired a partial interest in Lone Star Life; subsequently Planned Marketing gained 100 percent of Lone Star's outstanding shares. In 1974 Kmart Corporation acquired control of Planned Marketing Associates, and in 1976 Royce G. Hunter, a graduate of Lubbock Christian University, became president and chairman of the board. In 1988 Hunter and Jack R. Wahlquist, a graduate of the University of Texas law school, formed LSL Financial Corporation to acquire the firm when Kmart divested itself of its insurance operations. LSL Financial also acquired all outstanding shares of Universal Security Life Insurance Company of Texas to serve as an intermediate holding company, renamed it Hibiscus Life Insurance Company, and transferred control of Lone Star Life to it. By the early 1990s, some 2,000 Lone Star Life agents and brokers offered insurance throughout the United States. The company had found a specific niche market among Texas teachers, and had around $492 billion of life insurance in force.

BIBLIOGRAPHY: 

Roy Livingston McPherson, Regulation of Life Insurance in Texas (Ph.D. dissertation, University of Texas, 1950). New York Times, March 26, 1988.

Kevin M. Laub

Citation

The following, adapted from the Chicago Manual of Style, 15th edition, is the preferred citation for this article.

Kevin M. Laub, "LONE STAR LIFE INSURANCE COMPANY," Handbook of Texas Online (http://www.tshaonline.org/handbook/online/articles/djlxm), accessed July 23, 2014. Uploaded on June 15, 2010. Published by the Texas State Historical Association.