Company History

Central States Health & Accident Association was founded in 1932 by T. Leslie Kizer, beginning with two desks, two chairs and 100 individuals each willing to spend $11 on an insurance policy.  Central States pioneered what was then called Deferred Payment Health Accident Protection, providing payment protection when death or disability made it impossible for an insured to fulfill their financial obligations.  It was the first of its kind in the Midwest, and it quickly propelled Central States growth in the insurance industry.  The company soon developed a hospital reimbursement policy, similar to modern major medical insurance, and expanded its business into Colorado and South Dakota by the early 1950s.

It wasn’t long before continued growth prompted the construction of a second building, which was completed in 1988.  The five-story structure is directly adjacent to the first building and was the first round office building built in Omaha. In December 1992, CSO’s subsidiary, CSI, was purchased by Berkshire Hathaway Inc.  As a result of this sale, CSO’s financial condition was strengthened and its ability to compete in the insurance marketplace was enhanced.  Statutory surplus now exceeded $37,000,000.

In the late 1990’s, CSO set in motion strategic business initiatives designed to ultimately place emphasis on its core business:  debt protection.  The major medical business was sold in 1999.  And, with the expanded ability of financial institutions to offer debt cancellation products, CSO in 2002 developed the infrastructure enabling them to support debt cancellation programs.  The ability to extend both credit insurance and debt cancellation offerings solidified their position as a leader in the debt protection industry.

In 2004, CSO made a strategic decision to discontinue marketing its Medicare Supplement and other supplemental health insurance products.  With the reinsurance and/or assumption of its supplemental blocks of business completed in 2005, CSO exited the health insurance market.  These transactions resulted in statutory surplus combined with asset valuation reserve to reach a record high, in excess of $100,000,000.

In 2006, CSO entered into a strategic marketing alliance with Jim Moran and Associates (JM&A) for the rights to market credit insurance to their dealership base. Later that year, CSO negotiated a similar agreement with Universal Underwriters (Zurich). In 2007, CSO finalized an agreement with The Warranty Group to take over Resource Life Insurance Company's (RLIC) credit insurance block of business.

As a result of these agreements, CSO has established a significant national presence in providing credit insurance to the dealership market. In addition, CSO continues to service and grow their business with financial institutions for both credit insurance and the evolving debt cancellation lines.

As of 2009, over 3,400 automobile dealerships and 1,800 financial institutions have contracted with CSO to extend credit insurance products to their customers.

Though statutory accounting principles are utilized by the insurance industry, Generally Accepted Accounting Principles (GAAP) are the accounting methods utilized by non-insurance orginizations. CSO's year-end 2008 statutory surplus combined with asset valuation reserve exceeded $88,000,000. CSO began 2009 with retained earnings (a GAAP measurement) in excess of $145,500,000.

CSO’s vision is to be the leader in the debt protection market by providing innovative solutions and value to lenders, agents and policyholders.  The core business of debt protection uniquely positions CSO to capitalize on a dual focus of extending traditional credit life and disability products as well as providing debt cancellation programs.