Debit agent distribution model

Fraternals to Founders to Foundational: The Legacy of Black Insurance Companies | SOA

In the article “Fraternals to Founders to Foundational: The Legacy of Black Insurance Companies” the author states “[T]he black insurance industry would not survive. Insureds were no longer co-located with the advent of integration, which had significant impact on the debit agent distribution model.”

I don’t know what a “debit agent distribution model” is. How is that affected by insureds not being co-located?

I believe the idea was small monthly, or maybe even more frequent, premiums collected in person by the agent. If that’s right, then having the policyholders in a relatively small geographic area is a big plus.


Sounds like industrial insurance where you basically paid every week and the debit agent came to your door.

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This. Debit referred to the collection style, agent dropping by weekly. Industrial is the category for the blue statement. Limited underwriting, low face amount. Had its own stat mortality tables.

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So mobsters are really just insurance agents?

Nice life you got there. Shame if anything happened to it.


Yes. They start out by taking insurance premiums in the form of lunch money.