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57-728: Primerica, Inc. is a multi-level marketing company that provides insurance , investment and financial services to middle-income families in the United States and Canada. Primerica is the parent company of National Benefit Life Insurance Company, Primerica Life, Peach Re, and Vidalia Re. Primerica acquired e-Telequote in July 2021. The company that would become Primerica was founded in 1981. Primerica had its initial public offering in 2010. Primerica's headquarters are located in Duluth, Georgia . In 1980, A.L. Williams (founded in 1977) entered into

114-636: A 47,000-seat football stadium on the grounds of the Birmingham–Jefferson Convention Complex that opened on October 2, 2021. Protective Stadium is new home for UAB Blazers football , replacing Legion Field . The company established the Protective Life Foundation, which supports education and healthy development of at-risk youth. In addition, the foundation engages charitable activities to cultural organizations, civic and community initiatives, human services groups, and

171-550: A contract with Boston -based Massachusetts Indemnity and Life Insurance Company (MILICO), an underwriter of life insurance and a subsidiary of Santa Monica –based PennCorp Financial Services. In 1981, the company established First American National Corporation as a holding company for First American Life Insurance and First American National Securities. These companies were later renamed The A.L. Williams Corporation, A.L. Williams Life Insurance Company, and PFS Investments, Inc, respectively. In 1982, The A.L. Williams Corporation (ALWC)

228-433: A health insurance marketer. Primerica uses a multi-level marketing strategy, with eleven tiers of representatives and recruiters selling financial products and services for commission. The company primarily sells term life insurance , as well as other financial services including auto and home insurance, mutual funds , and credit monitoring . In 2010, Primerica was reported to have over 100,000 representatives selling

285-591: A marketing kit and initial products, as a barrier to entry. Many MLMs emphasize the recruitment of new members over actual sales, particularly sales to individuals outside of the MLM. This focus on recruitment often pressures participants to buy and use the company's products themselves, and exploit their personal relationships for sales and recruiting. Furthermore, MLMs are often scrutinized for having complex and exaggerated compensation schemes, making it difficult for most participants to earn significant income. False claims about

342-531: A plan collapses, most people—except perhaps those at the very top of the pyramid—end up empty-handed." In a 2004 Staff Advisory letter to the Direct Selling Association, the FTC states: Much has been made of the personal, or internal, consumption issue in recent years. In fact, the amount of internal consumption in any multi-level compensation business does not determine whether or not the FTC will consider

399-405: A type of direct selling . Some sources emphasize that multi-level marketing is merely one form of direct selling, rather than being direct selling. Other terms that are sometimes used to describe multi-level marketing include "word-of-mouth marketing", "interactive distribution", and " relationship marketing ". Critics have argued that the use of these and other different terms and " buzzwords "

456-419: A wide range of issues, including accusations that their operations closely resemble illegal pyramid schemes . Additionally, MLM companies have been accused of engaging in price fixing and participating in collusion and racketeering , often involving secret compensation deals that favor a few participants at the expense of others. Critics also point to the high initial costs for new members, such as purchasing

513-848: Is an effort to draw distinctions between multi-level marketing and illegal Ponzi schemes , chain letters , and consumer fraud scams—where none meaningfully exist. The Direct Selling Association (DSA), a lobbying group for the MLM industry, reported that in 1990 only 25% of DSA members used the MLM business model. By 1999, this had grown to 77.3%. By 2009, 94.2% of DSA members were using MLM, accounting for 99.6% of sellers, and 97.1% of sales. Companies such as Avon , Aerus (formerly Electrolux USA), Tupperware , and Kirby were all originally single-level marketing companies, using that traditional and uncontroversial direct selling business model (distinct from MLM) to sell their goods. However, they later introduced multi-level compensation plans, becoming MLM companies. The DSA has approximately 200 members while it

570-534: Is banned in Saudi Arabia by imposing religious fatwa nationally, for this reason MLM companies like Amway , Mary Kay , Oriflame and Herbalife sell their products by online selling method instead of MLM. MLM businesses operate in all 50 U.S. states. Businesses may use terms such as " affiliate marketing " or "home-based business franchising". Some sources say that all MLM companies are essentially pyramid schemes, even if they are legal. Utah has been named

627-410: Is composed of eleven directors, four of whom are affiliated with the company and its subsidiaries, and eight who are independent. The independent directors are Michael J. Morrissey, Dawn Bulgarella, Joseph Guastella, Bruce Koepfgen, Jesse J. Spikes, Mark Tarr, William A. Terry and W. Michael Warren Jr. The company offers plans in: In April 2019, Protective Life was announced as the naming sponsor for

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684-538: Is estimated there are over 1,000 firms using multi-level marketing in the United States alone. The origin of multi-level marketing is often disputed, but multi-level marketing style businesses existed in the 1920s and the 1930s, such as the California Vitamin Company (later named Nutrilite ) and the California Perfume Company (renamed " Avon Products "). Several sources have commented on

741-402: Is not the MLM company's products or services. The products or services are largely peripheral to the MLM model. Rather, the true sales pitch and emphasis is on a confidence given to participants of potential financial independence through participation in the MLM, luring with phrases like "the lifestyle you deserve" or "independent distributor". Erik German's memoir My Father's Dream documents

798-451: Is then advertised by the MLM company to recruit more distributors in the MLM with an unrealistic anticipation of earning margins which are in reality merely theoretical and statistically improbable. Although an MLM company holds out those few top individual participants as evidence of how participation in the MLM could lead to success, the MLM business model depends on the failure of the overwhelming majority of all other participants, through

855-503: The COVID-19 pandemic , in 2020, Primerica paid out $ 1.7 billion in death claims. This was a 15.8% increase over 2019. The financial services company ended 2021 with $ 900 billion in active term life insurance . On November 5, 2009, Citi announced that it intended to spin off Primerica through an initial public offering . The first trading occurred on April 1, 2010, priced at $ 15 a share the day before trading. Citi raised $ 320 million through

912-472: The Chinese economic reform of 1978. This rise in multi-level marketing's popularity coincided with economic uncertainty and a new shift towards individual consumerism . Multi-level marketing was banned on the mainland by the government in 1998, citing social, economic, and taxation issues. Further regulation "Prohibition of Chuanxiao " (where MLM is a type of Chuanxiao was enacted in 2005, clause 3 of Chapter 2 of

969-840: The ticker symbol PL. In 1997, Protective Life acquired West Coast Life. Nabers retired in 2002 and Harvard Business School graduate John D. Johns was then named president and CEO of Protective Life. John D. Johns served as president and chief executive officer until 2017 and as chairman of the board from January 2003 to November 2019. Johns was an employee of Protective Life from 1993 until his retirement in November 2019. In 2007, Protective Life celebrated its 100th anniversary, just one year after its acquisition of Chase Insurance Group in 2006. In 2010, Protective life acquired Alabama based life insurance company, United Investors Life Insurance Company from Torchmark. In 2013, Protective's principal subsidiary, Protective Life Insurance Company, completed

1026-526: The "unofficial world capital of multi-level marketing and direct sales companies" and is home to at least 15 major MLMs, more MLMs per capita than any other state. The U.S. Federal Trade Commission (FTC) states: "Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually illegal pyramid schemes. Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when

1083-515: The Dearborn registered representatives, "selling away" activities. By the date of the ruling, PFS Investments reported it had complied with the final recommendations made by the independent consultant. In 1998, Travelers Group and Citicorp merged creating Citigroup ( NYSE :  C ). Primerica and its affiliates continued to operate as subsidiaries of Citigroup, although the Travelers insurance business

1140-516: The IPO. In a separate offering, private equity firm Warburg Pincus bought a 23 percent stake in Primerica, and had the option to purchase an additional 10 percent stake from Citi. On December 19, 2011, Citigroup sold its remaining equity stake in Primerica. Primerica was listed by Forbes as one of "America's 50 Most Trustworthy Financial Companies" in 2015. In July 2021, Primerica acquired e-Telequote,

1197-507: The Ministry of Commerce ("MOFCOM"). In 2016, there are 73 companies, including domestic and foreign companies, that have obtained the direct selling license. Some multi-level marketing sellers have circumvented this ban by establishing addresses and bank accounts in Hong Kong , where the practice is legal, while selling and recruiting on the mainland. It was not until August 23, 2005, that

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1254-627: The State Council promulgated rules that dealt specifically with direct sale operation- Administration of Direct Sales (entered into effect on December 1, 2005) and the Regulations for the Prohibition of Chuanxiao (entered into effect on November 1, 2005). When direct selling is allowed, it will only be permitted under the most stringent requirements, in order to ensure the operations are not pyramid schemes, MLM, or fly-by-night operations. MLM marketing

1311-847: The United States" while another states "Multi-Level Marketing, a form of Pyramid Scheme, is not necessarily fraudulent." In October 2010 it was reported that multi-level marketing companies were being investigated by a number of state attorneys general amid allegations that salespeople were primarily paid for recruiting and that more recent recruits cannot earn anything near what early entrants do. Industry critic Robert L. FitzPatrick has called multi-level marketing "the Main Street bubble" that will eventually burst. Many Islamic jurists and religious bodies, including Permanent Committee for Scholarly Research and Ifta of Saudi Arabia , have considered MLM trade to be prohibited ( haram ). They argue that MLM trade involves deceiving others into participating, and

1368-495: The acquisition of MONY Life Insurance Company and reinsured certain policies of MONY Life Insurance Company of America. The total transaction price was $ 1.06 billion. On July 1, 2017, Rich Bielen became Protective's 7th president and chief executive officer. He joined Protective in 1991 with responsibility for the company's securities portfolio and became chief investment officer and treasurer in 2002. He became vice chairman and chief financial officer in 2007. In January 2016, Bielen

1425-418: The author's father's failures through " get-rich-quick schemes " such as Amway . The memoir illustrates the multi-level marketing sales principle known as "selling the dream". Although the emphasis is always made on the potential of success and the positive life change that "might" or "could" (not "will" or "can") result, disclosure statements include disclaimers that they, as participants, should not rely on

1482-580: The belief that they can achieve large returns, while the statistical improbability of this is de-emphasized. MLM companies have been made illegal or otherwise strictly regulated in some jurisdictions as merely variations of the traditional pyramid scheme . Multi-level marketing is also known as "pyramid selling", "network marketing", and "referral marketing". Independent non-salaried participants, referred to as distributors (variously called "associates", "independent business owners", "independent agents", " affiliates ", etc.), are authorized to distribute

1539-423: The company announced that it was working on a settlement with up to 238 plaintiffs, for $ 15.4 million. Multi-level marketing Multi-level marketing ( MLM ), also called network marketing or pyramid selling , is a controversial and sometimes illegal marketing strategy for the sale of products or services in which the revenue of the MLM company is derived from a non-salaried workforce selling

1596-536: The company's distribution chain as fellow salespeople so that these can become downline distributors. According to a report that studied the business models of 350 MLM companies in the United States , published on the Federal Trade Commission's website, at least 99% of people who join MLM companies lose money. Nonetheless, MLM companies function because downline participants are encouraged to hold onto

1653-591: The company's financial products, with individual earnings averaging $ 5,156 per year. Some people working for Primerica and similar multi-level marketing organizations reported that they ended up losing money, due to the fees they had to pay. In 2012, Primerica was the target of multiple lawsuits alleging that the company's representatives sought to profit by earning commissions after convincing Florida firefighters, teachers, and other public workers to divest from safe government-secured retirement investments to high-risk retirement products offered by Primerica. In January 2014,

1710-412: The company's products or services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system. In multi-level marketing, the compensation plan usually pays out to participants from two potential revenue streams . The first is based on a sales commission from directly selling the product or service; the second is paid out from commissions based upon

1767-453: The company's products or services. They are awarded their own immediate retail profit from customers plus commission from the company, not downlines, through a multi-level marketing compensation plan, which is based upon the volume of products sold through their own sales efforts as well as that of their downline organization. Independent distributors develop their organizations by either building an active consumer network , who buy direct from

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1824-547: The company, or by recruiting a downline of independent distributors who also build a consumer network base, thereby expanding the overall organization. The combined number of recruits from these cycles is the sales force, called the salesperson's "downline". This "downline" is the pyramid in MLM's multiple-level structure of compensation. The overwhelming majority of MLM participants participate at either an insignificant or nil net profit. A study of 27 MLM schemes found that on average, 99.6% of participants lost money. Indeed,

1881-689: The company." (By comparison, skeptic Brian Dunning points out that "only 97.14% of Las Vegas gamblers lose money .... ." ) In part, this is because encouraging recruits to further "recruit people to compete with [them]" leads to "market saturation." It has also been claimed "(b)y its very nature, MLM is completely devoid of any scientific foundations." Because of the encouraging of recruits to further recruit their competitors, some people have even gone so far as to say at best modern MLM companies are nothing more than legalized pyramid schemes with one stating "Multi-level marketing companies have become an accepted and legally sanctioned form of pyramid scheme in

1938-411: The detriment of most of the company's constituent workforce (the MLM participants). Only some of the profits are then shared with individual participants at the top of the MLM distributorship pyramid. The earnings of those top few participants are emphasized and championed at company seminars and conferences , thus creating the illusion that participants in the MLM can become financially successful. This

1995-631: The earning results of other participants in the highest levels of the MLM participant pyramid as an indication of what they should expect to earn. MLM companies rarely emphasize the extreme likelihood of failure, or the extreme likelihood of financial loss, from participation in MLM. MLM companies have been made illegal in some jurisdictions as a mere variation of the traditional pyramid scheme , including in China . In jurisdictions where MLM companies have not been made illegal, many illegal pyramid schemes attempt to present themselves as MLM businesses. Given that

2052-595: The effectiveness of products are also commonly reported. Major revenue for the company, or its leading distributors, often comes from participant-attended conventions, training sessions, and sales of promotional materials, adding another layer of financial burden on members. Some MLM organizations have also been accused of using cult-like techniques to build enthusiasm and loyalty among their members, which has raised additional ethical concerns. "Network marketing" and "multi-level marketing" (MLM) have been described by author Dominique Xardel as being synonymous, with it being

2109-775: The first Chinese American to lead a member of the Dow Jones Industrials. In December 1988, Sanford Weill 's Commercial Credit acquired Primerica Corporation for $ 1.54 billion, retaining the Primerica name. On February 6, 1989, Primerica Corporation began trading on the New York Stock Exchange . Throughout the next ten years, Primerica Corporation's affiliated companies A.L Williams, MILICO, and FANS changed their names to Primerica Financial Services, Primerica Life Insurance Company, and Primerica Financial Services Investments, respectively. In December 1993, Primerica fully acquired Travelers Insurance Corporation and adopted

2166-543: The income level of specific MLM companies or MLM companies in general: In 2015, the Government of Bangladesh banned all types of domestic and foreign MLM trade in Bangladesh. Multi-level marketing ( simplified Chinese : 传销 ; traditional Chinese : 傳銷 ; pinyin : chuán xiāo ; lit. 'spread selling') was first introduced to mainland China by American, Taiwanese, and Japanese companies following

2223-504: The injecting of money from their own pockets, so that it can become the revenue and profit of the MLM company, of which the MLM company shares only a small proportion with a few individuals at the top of the MLM participant pyramid. Other than the few at the top, participants provide nothing more than their own financial loss for the company's own profit and the profit of the top few individual participants. The main sales pitch of MLM companies to their participants and prospective participants

2280-508: The largest proportion of participants must operate at a net loss (after expenses are deducted) so that the few individuals in the uppermost level of the MLM pyramid can derive their significant earnings. Said earnings are then emphasized by the MLM company to all other participants to encourage their continued participation at a continuing financial loss. Many MLM companies generate billions of dollars in annual revenue and hundreds of millions of dollars in annual profit. However, profits accrue to

2337-479: The leadership of the company to Col. William J. Rushton, and in 1969, Col. Rushton's son, William “Billy” J. Rushton III, became president of Protective. The younger Rushton then presided over a series of acquisitions that led Protective into all 50 states. As part of this push, Drayton Nabers Jr. became CEO in 1992 and in 1993, Protective Life Corporation was listed on the New York Stock Exchange under

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2394-451: The money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products. In re Amway Corp. (1979), the Federal Trade Commission indicated that multi-level marketing was not illegal per se in the United States. However, Amway was found guilty of price fixing (by effectively requiring "independent" distributors to sell at

2451-485: The name Travelers Inc., which was changed to Travelers Group the following year. Travelers Group included Primerica Financial Services, Smith Barney , and other financial businesses. Joe Plumeri was Chairman and CEO of Primerica Financial Services from 1995 to 1999. In 1998, Primerica had net income of $ 398 million on net sales of $ 1.65 billion. In December 1997, Primerica announced it was going to begin offering pre-paid legal through Pre-Paid Legal Services, Inc. , at

2508-400: The overwhelming majority of MLM participants cannot realistically make a net profit, let alone a significant net profit, but instead overwhelmingly operate at net losses, some sources have defined all MLM companies as a type of pyramid scheme, even if they have not been made illegal like traditional pyramid schemes through legislative statutes . MLM companies are designed to make profit for

2565-457: The owners/shareholders of the company and a few individual participants at the top levels of the MLM pyramid of participants. According to the U.S. Federal Trade Commission (FTC), some MLM companies already constitute illegal pyramid schemes even by the narrower existing legislation, exploiting members of the organization. Companies that employ the MLM business model have often faced criticism and lawsuits. Legal claims against MLM companies cover

2622-465: The plan a pyramid scheme. The critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture. The Federal Trade Commission warns Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where

2679-492: The questionable use of evangelical discourse to promote the business (Höpfl & Maddrell, 1996), and the exploitation of personal relationships for financial gain (Fitzpatrick & Reynolds, 1997)". In China, volunteers working to rescue people from the schemes have been physically attacked. MLM companies are also criticized for being unable to fulfill their promises for the majority of participants due to basic conflicts with Western cultural norms. There are even claims that

2736-900: The regulation states having downlines is illegal). O'Regan wrote 'With this regulation China makes clear that while Direct Sales is permitted in the mainland, Multi-Level Marketing is not'. MLM companies have been made illegal in China as a mere variation of the traditional pyramid scheme and as disruptive to social and economic order. MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations. The Direct Sales Regulations limit direct selling to cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils, and they require Chinese or foreign companies ("FIEs") who intend to engage into direct sale business in mainland China to apply for and obtain direct selling license from

2793-651: The same fixed price) and making exaggerated income claims. The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as "pyramiding". Walter J. Carl stated in a 2004 Western Journal of Communication article that "MLM organizations have been described by some as cults (Butterfield, 1985), pyramid schemes (Fitzpatrick & Reynolds, 1997), or organizations rife with misleading, deceptive, and unethical behavior (Carter, 1999), such as

2850-445: The success rate for breaking even or even making money are far worse than other types of businesses: "The vast majority of MLM companies are recruiting MLM companies, in which participants must recruit aggressively to profit. Based on available data from the companies themselves, the loss rate for recruiting MLM companies is approximately 99.9%; i.e., 99.9% of participants lose money after subtracting all expenses, including purchases from

2907-548: The time a subsidiary of Travelers Group, Inc . In 1998, the US Securities and Exchange Commission (SEC) censured and fined PFS Investments Inc., the securities arm for Primerica, for failure to properly supervise a group of registered representatives in Dearborn, Michigan . The SEC found that PFS Investments Inc. had failed to have in place effective policies and procedures to follow up adequately on three complaints received about

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2964-436: The transaction bears resemblance to both riba and gharar . Protective Life Protective Life Insurance Company was founded in 1907 and paid its first death claim in 1909. In 1927, Protective merged with Alabama National Insurance Company, and Alabama National's president, Samuel Clabaugh, became the president of the combined companies which continued to do business as Protective. In 1937, Clabaugh turned over

3021-508: The wholesale purchases made by other sellers whom the participant has recruited to also sell product. In the organizational hierarchy of MLM companies, recruited participants (as well as those whom the recruit recruits) are referred to as one's downline distributors. MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship referrals and word of mouth marketing, but more importantly they are incentivized to recruit others to join

3078-858: Was acquired by The Dai-ichi Life Insurance Company, Limited (Tokyo, Japan) on February 15, 2015. Protective Life Corporation leadership includes Richard J. Bielen (President and CEO ), Steve Walker (Vice Chairman, Finance and Risk), Scott Adams (EVP, Chief Transformation and Strategy Officer), Mark Drew (EVP, General Counsel and Secretary), Lance Black (EVP, Acquisitions and Corporate Development), Paul Wells (EVP and CFO), Phil Passafiume (EVP, Chief Investment Officer), Wade Harrison (EVP, Chief Retail Officer) and Wendy Evesque (EVP and CHRO). The company's board of directors includes Michael J. Morrissey (chair), Richard J. Bielen, Stephen Barnham, Dawn Bulgarella, Joseph Guastella, Bruce Koepfgen, Jesse J. Spikes, Satoshi Takemoto, Mark Tarr, William A. Terry and W. Michael Warren Jr.. The board of Protective Life Corporation (“PLC”)

3135-619: Was listed on the Over the Counter (OTC) market under the symbol ALWC. In 1983, the company became listed on the NASDAQ exchange under the same symbol. PennCorp finalized a merger agreement with American Can Company in 1983, and became its subsidiary along with MILICO. In 1986 Triangle Industries bought American Can's packaging division and the rights to the company's name. In 1987 American Can changed its name to Primerica Corporation, with Gerald Tsai as CEO,

3192-499: Was named president and chief operating officer. On June 1, 2019, Protective closed its largest transaction to date to acquire via reinsurance substantially all of the individual life and annuity business of Great-West Life & Annuity Insurance Company. The acquisition represented an estimated capital investment of approximately $ 1.20 billion. Protective Life has offices in Alabama , Missouri and Kentucky. Protective Life Corporation

3249-401: Was spun off in 2002. Citigroup attempted to sell Primerica in 2008, having received several bids from life insurance companies and private equity firms interested in buying. At the time the market value of the company was estimated to be $ 7 billion. JC Flowers & Co. LLC and Protective Life Corp began to purchase the company but the deal was canceled for undisclosed reasons. During

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