SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
Date of Report: August 19, 1998
(Date of earliest event reported)
CITIZENS, INC.
(Exact name of registrant as specified in its charter)
COLORADO
(State or other jurisdiction of
incorporation)
0-16509 84-0755371
(Commission File Number) (IRS Employer
Identification Number)
400 East Anderson Lane
Austin, Texas 78752
(Address of principal (Zip Code)
executive offices)
(512) 837-7100
(Registrant's telephone number)
Item 1. Changes in Control of Registrant.
None.
Item 2. Acquisition or Disposition of Assets.
None.
Item 3. Bankruptcy or Receivership.
None.
Item 4. Changes in Registrant's Certifying Accountants.
None.
Item 5. Other Events.
On August 20, 1998, Registrant was notified that it was
successful in its appeal of the class action certification in the
lawsuit (Dwain Kirkham et al. v. American Liberty Life Insurance
Company et al., No. 25,954, 2nd Judicial District, Jackson
Parish, Louisiana) filed against American Liberty Life Insurance
Company ("ALLIC") on August 19, 1996 and against Citizens, Inc.
on December 20, 1996. On August 19, 1998, the Louisiana Second
Circuit Court of Appeals vacated the class action certification
by the trial court, and the case was remanded for further
proceedings consistent with the decision of the Court of Appeals.
The lawsuit was filed by four individuals who purchased from
ALLIC, prior to August 1, 1986, life insurance policies on their
children and grandchildren. In the complaint, plaintiffs allege
that the insurance policies were fraudulently misrepresented to
be "retirement" plans in which, after six or seven years,
additional premiums would be unnecessary and monthly retirement
income of varying amounts for unspecified periods of time would
be paid to plaintiffs. Plaintiffs also allege other causes of
action including breach of contract and are seeking rescission,
unspecified damages, interest and attorneys' fees.
Prior to its recent merger into Registrant's principal
subsidiary, Citizens Insurance Company of America, ALLIC was a
separate subsidiary of Registrant since its acquisition in
September 1995. Registrant and Citizens Insurance Company of
America will continue to vigorously defend against the claims of
these four plaintiffs. The registrant is unaware of any
threatened or pending claims of a similar nature to this
litigation.
Item 6. Resignations of Registrant's Directors.
None.
Item 7. Financial Statements and Exhibits.
None.
Item 8. Change in Fiscal Year.
None.
Item 9. Sales of Equity Securities Pursuant to Regulation S
None.
SIGNATURE
Pursuant to the requirement of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on Registrant's behalf by the undersigned, duly authorized and
empowered officer of the Registrant.
CITIZENS, INC.
By:/s/ Mark A. Oliver
Mark A. Oliver, FLMI
President
Date: August 20, 1998
