Citizens, Inc. disclosed in a filing with the U.S. Securities and Exchange Commission that it entered into a Master Software as a Service Agreement with Bestow Agency LLC, a Delaware limited liability company. The arrangement concerns the company’s final expense (simplified issue whole life) life insurance products. On the dates of execution and effectiveness, and in the language the company itself uses in the filing, the Bestow Agreements were each executed by both parties on October 5, 2026, with an effective date of October 1, 2026.
Citizens Takes Hosted Access to Bestow’s Cloud Platform
In its description of the arrangement with Bestow, Citizens states that it obtained hosted access to Bestow’s proprietary web-based software as a service platform for use in connection with the Company’s insurance processing, underwriting, policy administration, and related functions. Citizens then describes what Bestow itself is obliged to do, and the company adds that Bestow is obligated to configure, implement, host, operate and maintain its cloud-based platform for the Company’s final expense (simplified issue whole life) life insurance products.
Beyond the hosting and maintenance obligations, the filing also states that Bestow will also provide a consumer portal and policy administration functions, as well as data feeds to the Company’s systems. Turning to the terms on which Citizens may use the platform, the filing states that under the master agreement the Company receives a nonexclusive, non-assignable, non-sublicensable, fee-bearing, limited right to access and use the Platform solely for the Company’s business operations. On the question of ownership of the software, the filing states: No software is licensed, sold, or transferred to the Company; the Company receives only hosted access to the Platform. InsuraBeat has separate coverage of a bancassurance and embedded-insurance acquisition in Europe.
What Appointed Agents Will Be Able to Do on the Platform
On the products themselves and the insurer that issues them, the filing describes the products in these terms: simplified issue whole life insurance products issued by CICA Life Insurance Company of America, a subsidiary of the Company licensed in 43 U.S. states, Washington, D.C. and Puerto Rico. On how the products reach customers today, the company states that the products are already approved by the regulators of and being sold through independent agent distribution channels in most of those jurisdictions.
On what the platform will let agents do, and in the filing’s own description of the agent workflow, the filing states that Company-appointed agents will be able to use the platform to quote, apply, underwrite, sign and issue policies electronically.
Citizens Retains Underwriting Rules, Pricing and Claims Adjudication
On the division of work between Citizens and Bestow, and specifically on the functions that stay with the insurer, the filing states that Citizens keeps responsibility for underwriting rules, product pricing, regulatory filings, agent licensing and appointment, commissions and claims adjudication. InsuraBeat has separate coverage of insurtech funding data.
Build Deadline, Fee Mechanics and Contract Term
On the build timetable and the date by which the configuration work is to be completed, the filing states: Under the Build Order, Bestow will use its agile development methodology to complete platform configuration and implementation of the Final Expense Products no later than December 15, 2026, unless the parties agree to adjust that date.
On the cost side, and starting with the development fee that Citizens will owe to Bestow, the filing states: The Company will pay Bestow a development fee in 36 monthly installments. Among the ongoing charges under the Run Order, the filing lists: a committed application fee based on a minimum annual volume of applications, payable whether or not the minimum volume is reached; per-application fees for volume above the minimum; and certain third-party underwriting data, identity verification and payment processing costs, which Bestow passes through at cost.
On how the Run Order is built and what it allows the company to do, the filing states that The Run Order is structured to allow the Company to add additional insurance products to the platform during the Run Phase, without requiring a separate run order or amendment to the Master Agreement.
On the assumption that sits behind the fee schedule for both orders, the filing states: The fees for both the Orders assume that by March 31, 2027, the Company and Bestow will execute an updated product schedule to add additional insurance products to the platform.. The consequence of missing that date is also stated in the filing: If these products are not added to the Run Order by such date, the development fee and annual subscription fee will increase prospectively, with a true-up for amounts already invoiced. On the way the per-application charge may move over time, the filing states: Beginning in 2029, the per-application fee may increase each year based on CPI, subject to a floor.
Turning to how long the arrangement lasts and whether Citizens can prolong it, and on the duration of the engagement, the filing states: The initial term of each Order runs through December 31, 2030. Citizens may renew for up to two additional one-year terms. On the circumstances in which an order may be brought to an end, the filing states: Either party may terminate an order for an uncured material breach, with a 30-day cure period. The filing lists several grounds on which Citizens may terminate, including a material adverse change affecting Bestow.
AI Guardrails, Security Terms and Service Levels in the Agreement
On the protections written into the contract around technology, data and uptime, the filing states that the Master Agreement includes customary terms on data security, confidentiality, privacy and guardrails on the use of AI, restrictions on Bestow’s use of generative AI in insurance decision-making and service levels, including 99.9% monthly availability with service credits.
On the agreements themselves, the filing refers to the Bestow Agreements, which the Company intends to file as exhibits to its Annual Report on Form 10-K for the fiscal year ending December 31, 2026. InsuraBeat has separate coverage of a regulatory reporting migration for life insurers in Australia.
Frequently Asked Questions
What does Bestow provide to Citizens for its final expense business?
Which responsibilities does Citizens keep under the agreement?
How long do the orders run and can Citizens extend them?
Sources
Primary document for the statements attributed to Citizens and Bestow above: Citizens, Inc. filing with the U.S. Securities and Exchange Commission.
