Atlantic American's Business Segments

Atlantic American Corporation, a Georgia corporation incorporated in 1968, is a holding company that operates through its subsidiaries in well-defined specialty markets within the life and health and property and casualty insurance industries. The Parent’s principal operating subsidiaries are American Southern Insurance Company and American Safety Insurance Company (together known as “American Southern”) within the property and casualty insurance industry and Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance Company (together known as “Bankers Fidelity”) within the life and health insurance industry. Each of American Southern and Bankers Fidelity is managed separately based upon the type of products it offers, and is evaluated on its individual performance. The Company’s strategy is to focus on well-defined geographic, demographic and/or product niches within the insurance marketplace. Each of American Southern and Bankers Fidelity operates with relative autonomy, which structure is designed to allow for quick reaction to market opportunities.

Atlantic American Corp, through its subsidiary Bankers Fidelity, offers a diverse range of life and health insurance products tailored primarily for the senior market. The companys Life and Health Operations are focused on meeting the specific needs of older adults, providing a variety of insurance solutions designed to enhance financial security and healthcare coverage as individuals age.

Life and Health Operations

Life Insurance Products

1. Term Life Insurance:
- Bankers Fidelity offers non-participating term life insurance policies that provide coverage for a specified period of time.
- This policy type is affordable, providing a death benefit that can help beneficiaries manage debts or expenses, such as funeral costs or mortgage payments.
- Customers can choose varying terms based on their needs, and specific riders or options can be included to customize the coverage further.

2. Whole Life Insurance:
- The company also provides non-participating whole life insurance policies, which offer lifetime coverage and a guaranteed death benefit for the insured.
- Whole life policies accrue cash value over time, which policyholders can access through loans or withdrawals, adding a layer of financial flexibility.
- Premiums for both term and whole life policies are influenced by several factors, including the insureds age at issue, the level of coverage selected, and any optional riders.

Health Insurance Products

1. Medicare Supplement Insurance:
- Bankers Fidelity offers eight of the eleven standardized Medicare Supplement plans, authorized under the Medicare Improvements for Patients and Providers Act of 2008 (MIPPA).
- These plans are designed to cover additional healthcare costs that Medicare does not fully pay, including copayments, coinsurance, and deductibles. This additional coverage helps minimize out-of-pocket expenses for insured individuals.
- The popularity of Medicare Supplement Insurance is reflected in its contribution to Bankers Fidelity’s premium earnings, which accounted for a substantial percentage of the company’s total net earned premiums.

2. Other Accident and Health Insurance:
- The company provides a variety of supplemental health insurance policies designed to cover specific healthcare needs, particularly for critical illnesses and accidents:
- Critical Illness Insurance: Offers financial support upon the diagnosis of specific, serious health conditions, ensuring policyholders have resources to help cover associated costs.
- Cancer Insurance: Specifically designed to address the financial impact of cancer treatments, including hospitalization and outpatient care related to the disease.
- Nursing Facility Care: Policies that assist with the costs associated with long-term care in nursing facilities, facilitating aged individuals transition into necessary care environments.
- Accident Expense Coverage: Provides benefits for accidental injuries, enabling policyholders to cover unexpected medical expenses resulting from accidents.
- Hospital Indemnity Insurance: Delivers fixed benefits for hospital stays, allowing policyholders to better manage the costs of hospitalization without depleting their savings or retirement funds.
- Disability Coverage: Offers income protection in the event of a long-term disability, ensuring that insured individuals maintain financial stability despite unexpected health challenges.

Summary

Atlantic American Corp, through Bankers Fidelity, is dedicated to providing comprehensive life and health insurance solutions tailored mainly for senior individuals. The company’s product offerings not only focus on life insurance, which includes term and whole life policies with various customization options, but also on enhancing healthcare access through Medicare Supplement Insurance and additional health coverages. By integrating these products, Bankers Fidelity addresses both the financial and health-related challenges faced by seniors, allowing them to secure their retirement years with confidence and peace of mind.