- 24 -
"Retroactive Date", which in the instant case was January 1,
1986.
During 1981 through 1984, Parthenon assumed reinsurance of
workers' compensation risks written for petitioners by Ideal
Mutual. Under the reinsurance arrangement, Ideal Mutual ceded
premiums (with associated liabilities) to Parthenon, less a
ceding commission designed to cover Ideal Mutual's costs and an
element of profit.
Ideal Mutual became insolvent and was placed into
liquidation by the New York Insurance Department effective
December 26, 1984. Following that development, HCA entered into
an agreement with Continental and the New York Insurance
Department whereby Continental agreed to assume the direct
workers' compensation risks that Ideal Mutual had insured prior
to its insolvency. As a condition of agreeing to substitute its
own policies for those of Ideal Mutual, Continental required, and
HCA provided, an agreement indemnifying Continental against
liabilities, other than Continental's obligations under its
policies, that might result from the agreement to cede insurance
obligations entered into as of September 6, 1985, between HCA and
the Superintendent of Insurance of the State of New York as
Rehabilitator of Ideal Mutual. After 1984, Parthenon reinsured
the workers' compensation risks assumed by Continental, receiving
the premium less a ceding commission designed to cover
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011