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          advisers to manage the company's investments under the                      
          supervision of its investment committee.  Additionally,                     
          Parthenon's investment committee received informal investment               
          advice and counsel from HCA's corporate investment staff, under             
          the direction of William McInnes, HCA's vice president for                  
          finance.  Parthenon's investment portfolio complied with the                
          requirements of the Tennessee statute and was typical of the                
          portfolios maintained by property and casualty insurance                    
          companies generally.                                                        
               For the years 1981 through 1986, Parthenon issued to                   
          petitioners annual policies providing $10 million in primary                
          comprehensive hospital liability, comprehensive personal injury             
          liability, comprehensive property damage liability, and                     
          advertising liability coverages.  For the years through 1985, the           
          coverage offered by Parthenon was on an "occurrence" basis, which           
          meant that Parthenon indemnified the insureds against all covered           
          liabilities arising out of any occurrence that caused injury                
          during the policy period, no matter when the claim arising out of           
          that injury was reported.  For 1986 and subsequent years,                   
          Parthenon provided liability insurance to petitioners on a                  
          "claims made" basis, which meant that coverage was extended only            
          for claims actually made against an insured during the policy               
          period arising out of events subsequent to a designated                     
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