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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 (Date of earliest event reported) March 13, 1997
(March 3, 1997)
TORCHMARK CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-8052 63-0780404
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification No.)
2001 Third Avenue South, Birmingham, Alabama 35233
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (205) 325-4200
None
(Former name or former address, if changed since last report)
Index of Exhibits page 2.
Total number of pages in this report is 6.
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Item 5. Other Events.
Torchmark Corporation issued press releases dated March 3, March 10, and
March 11, 1997, which updated litigation disclosures and which are incorporated
herein by reference and attached hereto as exhibits.
Item 7. Financial Statement and Exhibits
(a) Financial Statements of businesses acquired.
Not applicable.
(b) Pro forma financial information.
Not applicable.
(c) Exhibits.
Page
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Torchmark Corporation Press Release 4
Dated March 3, 1997.
Torchmark Corporation Press Release 5
Dated March 10, 1997.
Torchmark Corporation Press Release 6
Dated March 11, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TORCHMARK CORPORATION
Date: March 13, 1997 /s/ Michael J. Klyce
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Michael J. Klyce
Vice President and Treasurer
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U.S. SUPREME COURT DISMISSED ROBERTSON CASE
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AGAINST LIBERTY NATIONAL
Birmingham, Alabama, March 3, 1997.....Torchmark Corporation (NYSE: TMK)
announced today that the United States Supreme Court has dismissed, as
improvidently granted, the Writ of Certiorari which was previously granted in
the case of Adams vs. Robertson and Liberty National Life Insurance Company.
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This ruling effectively ends the direct appeals from the Robertson class action
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settlement originating from the Circuit Court of Barbour County, Alabama.
Torchmark's subsidiary, Liberty National, will proceed with the administration
of benefits under the class settlement.
Torchmark General Counsel, Larry Hutchison, stated that he has mixed
emotions in light of the Supreme Court decision today. On the one hand, the
company is pleased to see this litigation finally reach a conclusion. Yet, at
the same time, the company remains firmly convinced that Liberty National's
actions in regard to its cancer insurance programs were proper. The new
generation of policies provided greater overall benefits for the overwhelming
majority of claimants. In other words, the company continues to maintain that it
has simply done nothing wrong from the beginning.
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ALABAMA SUPREME COURT REVERSES AND REMANDS ALLEN CASE
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AGAINST TORCHMARK SUBSIDIARY LIBERTY NATIONAL
Birmingham, Alabama, March 10, 1997.....Torchmark Corporation (NYSE: TMK)
announced today that the Alabama Supreme Court has reversed and remanded Allen
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v. Liberty National Life Insurance Company to the Circuit Court of Jefferson
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County, Alabama after hearing an appeal of the remitted $2.7 million verdict
against the Company's subsidiary, Liberty National. The Allen litigation, an
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individual case, involved a Liberty National cancer policyholder eligible for
Medicare who submitted claims during a period of approximately two months in
1993. Beginning in September 1993, in reliance on federal law concerning the
amount health care providers could collect from Medicare eligible individuals,
Liberty National limited the payment to Allen and all other cancer policyholders
to the amounts collectible under federal law. In November 1993, Liberty National
discontinued this practice and recalculated and repaid all claims, including Mr.
Allen's, in full as it had prior to September 1993 together with interest. Allen
filed his lawsuit in May 1994 and at trial the Jefferson County Alabama Circuit
Court jury awarded him $40,000 in compensatory damages and $5.4 million in
punitive damages. The Circuit Court judge subsequently remitted the punitive
damage portion of the verdict to $2.7 million. The Alabama Supreme Court ruled
that Allen did not present the necessary substantial evidence to support his
fraud and bad faith claims in the Circuit Court trial and that the Circuit Court
erred in failing to grant Liberty National's motion for a directed verdict. The
Supreme Court returned the case to the Circuit Court for further proceedings
consistent with its opinion.
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STRICKLAND JUDGMENT AGAINST TORCHMARK SUBSIDIARY
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LIBERTY NATIONAL REDUCED
Birmingham, Alabama, March 11, 1997 . . . Torchmark Corporation (NYSE: TMK)
announced today that the $5 million judgment previously entered against its
subsidiary, Liberty National in Strickland vs. Liberty National Life Insurance
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Company, has been reduced to $37,500. In the Strickland case, the plaintiff
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cancelled several small life insurance policies and purchased a substantial
amount of new coverage. He contended that certain supplemental benefits (such
as accidental death and premium waiver) which were present in the smaller
policies were not included in the new coverage. Prior to submitting the case to
the jury, the Circuit Court ruled that Strickland was not entitled to recover
compensatory damages. Nevertheless, the jury awarded $100 in nominal damages
and $5 million in punitive damages to Strickland. The substantial reduction in
the judgment followed a post-judgment hearing and was made pursuant to an order
entered by Judge Edward B. McDermott of the Circuit Court of Mobile County,
Alabama.
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