INSURANCE: New Failure in Texas

More than 40 Texas insurance companies have gone bankrupt in the past three years. Last week the state's slow-moving Insurance Commission revealed probably the biggest bust of them all. Said the commission: ICT Insurance Co. is "hopelessly insolvent," to the tune of $4,460,243. Left holding the bag were some 14,000 stockholders and 100,000 policy holders. Most of them were labor-union members, because more than 50% of ICT Insurance Co.'s stock was owned by about 380 Texas A.F.L.-C.I.O. locals.

The idea of putting unions into the insurance business came in 1951 from backslapping Ben Jack Cage, now 39, who won enthusiastic support...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!