Associated Health Assurance Ltd

ASSOCIATED HEALTH ASSURANCE, LTD IS A CAPTIVE INSURANCE COMPANY WHICH PROVIDES PROFESSIONAL LIABILITY INSURANCE AND WORKER'S COMPENSATION REIMBURSEMENT COVERAGE SOLELY FOR NORTH MEMORIAL HEALTH CARE, THE TAX EXEMPT PARENT COMPANY.

PROVIDED HOSPITAL PROFESSIONAL LIABILITY (NON-PHYSICIAN) INSURANCE POLICY, ON A FIRST DOLLAR BASIS, EXCLUSIVELY TO NORTH MEMORIAL HEALTH CARE. SPECIFIC COVERAGE PROVIDED: $2MM EACH CLAIM, $4MM IN THE AGGREGATE ON A CLAIMS-MADE BASIS, WITH A RETROACTIVE DATE OF 3-1-1976. 2 NEW PROFESSIONAL LIABILITY CLAIMS WERE MADE DURING THE YEAR, AND 7 REMAINED OPEN AS OF YEAR-END. $6,264 WAS PAID ON NEW CLAIMS DURING THE YEAR, WHILE $110,827 WAS PAID ON CLAIMS FROM PRIOR POLICY YEARS.

PROVIDED WORKERS COMPENSATION AND EMPLOYERS LIABILITY DEDUCTIBLE INSURANCE POLICY THAT COVERED NORTH MEMORIAL HEALTH CARE'S $500,000 PER CLAIM DEDUCTIBLE WITH RESPECT TO ITS WORKER'S COMPENSATION INSURANCE POLICY THAT IS CARRIED BY A DIFFERENT THIRD-PARTY INSURANCE COMPANY ($12.7MM IN ANNUAL AGGREGATE). NORTH MEMORIAL HEALTH CARE MAKES MONTHLY WORKERS' COMPENSATION PAYMENTS TO ITS INSURANCE PROVIDER THEN SUBMITS A CLAIM FOR REIMBURSEMENT FROM ASSOCIATED HEALTH ASSURANCE FOR ITS INSURED DEDUCTIBLE. 670 NEW WORKERS' COMPENSATION INDEMNITY CLAIMS WERE MADE DURING THE YEAR, IN ADDITION TO 308 MEDICAL ONLY CLAIMS. $1,048,696 WAS PAID ON NEW CLAIMS DURING THE YEAR, WHILE $1,841,399 WAS PAID ON CLAIMS FROM PRIOR POLICY YEARS.