- 40 - For 1987 and thereafter, the liability policy issued by Parthenon to petitioners was modified to incorporate a $10 million deductible, causing petitioners to be substantially self- insured for general and professional liability risks for policy years after 1986. Parthenon continued to provide petitioners risk management services and claims administration, and insured high-level excess exposures, but no longer provided insurance for any substantial portion of the day-to-day professional and general liability risks faced by petitioners. Parthenon continued to provide reinsurance of the workers' compensation risks of petitioners on the same basis as before, with the exceptions that a retrospectively rated feature was added in 1987, and charges to hospitals were made on the basis of actuarial calculations of loss experience beginning in 1988. As a result of the retrospectively rated premium plan for workers' compensation insurance during policy years 1987 and 1988, Parthenon received a premium installment in the year the policy was issued, followed by a payment in the second year designed, within limits, to cover the losses plus expenses actually incurred. Parthenon recorded annual statement liabilities during the first year only to the extent that they corresponded with the amount of that year's premium installment, adjusting both premiums and liabilities in the second year to reflect estimated total losses and corresponding premium amounts.Page: Previous 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Next
Last modified: May 25, 2011