EXHIBIT 10(cu)

PREMIUM PAYMENT AGREEMENT

THIS AGREEMENT, made this 1st day of January, 2001, by and

between NATIONAL WESTERN LIFE INSURANCE COMPANY (Insurer) and

American National Insurance Company (ANICO) provides as follows;

PURPOSE.  This agreement sets forth the terms and conditions for payment of

premiums by ANICO to the Insurer with respect to coverage for

employees of ANICO and their dependents under the Excess Benefit Plan

number GH0002.

TERM.  The initial Term of this Agreement shall be one year from the 1st

day of January, 2001 (Effective Date).  This Agreement may be

renewed annually for subsequent terms of one-year each, subject to the

provisions of the Excess Benefit Plan and this Agreement.  Each such one-year term,

including the first, is referred to in this Agreement as a Benefit Year.

DETERMINATION AND PAYMENT OF PREMIUMS

Payment.  All premiums under this Agreement shall be paid at the Home Office

of the Insurer:  850 East Anderson Lane, Austin, TX  78752-1602.

Reimbursement Premium.  ANICO agrees to pay to the Insurer

Reimbursement Premiums equal to the sum of:

1.   The amount of benefits paid under the Excess Benefit Plan; and

2.   An amount (Retention Fee) determined by the product of the then applicable

        Retention Factor, as defined below, and the amount of such paid benefits.

It is understood and agreed that the obligation of ANICO shall be

without regard to when such benefits are paid by the Insurer and shall

continue so long as the Insurer has any obligation to pay such benefits.  It

is further understood and agreed that termination of the Agreement or of the

Excess Benefit Plan shall not act to end ANICO’s liability hereunder.

All such Reimbursement Premiums shall be due as of the date of the monthly

statement of account provided by the Insurer which will include:

1.   The amount due, if any; and

2.   A listing of each claim paid during the period for which such premiums are billed.

Maximum Annual Aggregate Liability.  Subject to the provisions of the Excess Benefit

Plan, ANICO’s obligation to pay Reimbursement Premiums is limited to 85%

of the Maximum Annual Aggregate Liability amount in such Plan.

Additional Reserve Premium.  The Insurer reserves the right to assess, and

ANICO agrees to pay, additional premiums which are deemed, in the sole

opinion of the Insurer, to be necessary to maintain an adequate Reserve.  The

Insurer may make such assessments at any time while this Excess Benefit Plan

is in force, by providing Notice to ANICO.  All such assessments shall be due as

of the date of such Notice.

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Renewal Premium.  ANICO agrees to pay to the Insurer Renewal

Premiums in such amounts as may be determined by the Insurer.  It is under-

stood and agreed that the timely payment of such Renewal Premiums shall be a

condition precedent to the renewal of the Excess Benefit Plan for each subsequent

Benefit Year.  The Insurer will provide Notice to ANICO of the amount of

such Renewal Premiums, and all such Renewal Premiums shall be due as of the

date of the Notice.

Grace Period.  The Grace Period of 31 days, as described in the Excess Benefit Plan,

shall apply to all premiums, provided however, that the

Insurer agrees to accept Reimbursement Premiums if paid at the Home Office of

the Insurer on or before 45 days after the date of the monthly statement of

account.  If any such Reimbursement Premium is not paid within this 45 day

period, the Excess Benefit Plan will automatically terminate as of the end of the Grace

Period.

Retention Factor.  The Retention Factor applicable to the initial Benefit Year

of this Agreement is 12.5%, comprising a service fee of 10.0% and

premium tax of 2.5%.  The Insurer reserves the right to change the

Retention Factor applicable to each subsequent Benefit Year by providing

Notice to ANICO.  All such changes shall take effect on the first

day of each such Benefit Year.  If benefits are paid after the effective date

of termination of the Excess Benefit Plan, with respect to claims incurred prior to such

date, the applicable Retention Factor shall be that percentage in effect

immediately prior to such date.

Indemnification.  In addition to any other reimbursement hereunder, ANICO

hereby agrees to reimburse the Insurer for the amount of any

benefits paid under the Excess Benefit Plan as the result of any settlement or judgement

arising from an action at law or in equity against ANICO or the

Insurer.  ANICO further agrees to pay to the Insurer the Retention

Fee applicable at the time such payment is made.  ANICO further

agrees to pay the amount of any penalties and extra-contract, punitive,

exemplary and consequential damages awarded or agreed upon pursuant to any

such settlement or judgement, and all expenses and costs of suit, including

reasonable attorney’s fees.

Any requirements of ANICO that employees insured under the Excess Benefit Plan

shall contribute to the cost of the insurance shall in no way limit the

responsibility of ANICO for the payment of premiums hereunder.

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Refund of Reserves.  ANICO may elect to receive a full refund of

the amount of the Reserve held for its account at any time after three months

following the date the Excess Benefit Plan terminates, less the amount of any premium

which is due and owing at such time.  Such election shall be in writing on a form

provided by the Insurer for this purpose.  In the event that such election is

made, ANICO expressly agrees that, not withstanding any provision

contained in the Excess Benefit Plan to the contrary, the obligation of the Insurer

to pay benefits under the Excess Benefit Plan shall terminate as of the date such refund is

tendered by the Insurer.  If no such election is made, the Insurer shall be

entitled to retain the entire amount of such Reserve for a period not to

exceed 15 months following the date the Excess Benefit Plan terminates.

GENERAL PROVISIONS

Entire Contract.  This Agreement, together with the Excess Benefit Plan and the

Application of ANICO, forms the Entire Contract between the parties.  No

modification or amendment of any of the above-stated documents shall be

effective or enforceable against the Insurer unless evidenced in writing and

signed by an officer of the Insurer.

Waiver.  The Insurer’s failure to strictly enforce any of the provisions of

this Agreement or the Excess Benefit Plan shall not be construed to be a waiver, and shall

not bar the subsequent enforcement of any such provision regardless of the

number or similarity of prior events not so enforced.

Notice.  Any form of written communication sent by regular mail, postage

prepaid, to the last address of ANICO, according to the records of the Insurer.

Law.  This Agreement shall be construed in accordance with the laws of the

state of delivery.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the

date first written above.  A true and correct copy of this Agreement shall be

as valid as the original.

INSURER:	NATIONAL WESTERN LIFE INSURANCE COMPANY
By:	/S/ Brian M. Pribyl
Title:	Senior VP
ANICO:	AMERICAN NATIONAL INSURANCE COMPANY
By:	/S/ Glenn C. Langley
Title:	Senior VP

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