ADA, Great-West boast 75-year anniversary

Great-West Life and the ADA are celebrating a milestone anniversary in 2009鈥攁 business relationship in its 75th year, and counting.

“We thank the ADA,” Great-West’s Jim Biesterfelt said about the landmark event. “Many of the same attributes that contributed to the ADA’s 150 successful years have also contributed to our 75-year relationship.”

Mr. Biesterfelt credits honesty, openness and commitment with sustaining what he calls an “incredible” 75 years.

“Staying agile, always looking for ways to improve. It’s how both organizations function and why we’ve been able to work together so well,” says ADA President John Findley.

The ADA/Great-West relationship began in 1934 during the heart of the Great Depression. In uncertain times, the ADA Board of Trustees was committed to providing ADA members with a sound insurance program, despite disappointing outcomes with two prior underwriters during the previous four years. That quest led a special committee of the Board to Winnepeg, Canada, headquarters office of The Great-West Life Assurance Company. The ADA’s search for a competent, solidly based underwriter was over. Presently, Great-West Life & Annuity Insurance Co., headquartered in Denver, Colo., underwrites and administers the program.

Great-West introduced ideas to make the program more stable and attractive to members. The new life insurance program offered $3,000 of coverage for any member up to the age of 51. Annual premiums ranged from $18 to $48.90.

Responsible for marketing promotion, underwriting and administration, (operations the company still performs today), the company started with 6,200 participants in the ADA Program. New benefits were added over the years, such as accidental death and disability waiver; coverage amounts were increased to $25,000 in 1968 and $2 million today.

In 1968, Great-West introduced the program’s Premium Credit concept, which allows members to share in the good experience of the program in the form of lower premiums. By 1992, Great-West provided student coverage, universal life, individual disability income protection, office overhead, and hospital and critical illness plans.

From one plan with 6,200 dentist participants in 1934 to five plans covering 105,000 dentists, spouses and students, from $15 million to $32 billion in business, Great-West continues to “remain committed to providing vibrant and competitive insurance products to dentists,” said Mr. Biesterfelt.

“Most rewarding is to consider all the dentists and their family members we’ve helped during times of personal or financial strife,” said Mr. Biesterfelt. “Rarely does a month go by when we don’t hear from a dentist or his or her family members about how appreciative they are for our service, how we truly care about doing our best on their behalf.”

In 1934, $194,000 in claims was paid to ADA member beneficiaries. In 2008 alone, that number was more than $86 million.

With respect to the turmoil in today’s economy, Mr. Biesterfelt offers reassurance. “The plans are all in good financial standing and plan assets and reserve levels are well-positioned to withstand future volatility and meet future obligations,” he says.

Mr. Biesterfelt comments that while nobody knows for sure where the current economic times will take us; one certainty remains: “We will continue to put the needs of dentists and their families first.”

To learn more about products provided by Great-West through the ADA Insurance Plans, go to http://insurance.ada.org or call the ADA toll-free, Ext. 2885.聽