American Independence Corp. Announces Agreement to Write Fully-Insured and Medical Stop-Loss Health Insurance Through Independence American.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- American Independence Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : AMIC Am´ic a. 1. (Chem.) Related to, or derived, ammonia; - used chiefly as a suffix; as, amic acid; phosphamic acid. s> Amic acid (Chem. ) today announced that it has executed an agency agreement for a marketing organization with a growing block of fully-insured health business, including Consumer Driven Health Plans (CDHPs) primarily sold to small employer groups employer group Association of employers Managed care An entity with a current group benefits agreement in effect with a health plan to provide covered health care services to its employee-subscribers and eligible dependents. , and Medical Stop-Loss to begin writing for Independence American Insurance Company. The agency that produces this business will immediately begin writing Employer Medical Stop-Loss through Independence American, and will move the majority of its existing block of fully-insured and stop-loss health insurance (currently approximately $35 million and growing) to Independence American in January 2007, with the balance moving by the end of 2007. This block has averaged 8% risk profit over the past five years, although there is no guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. that such results will be maintained. Independence American will be the exclusive issuing carrier for business underwritten by this agency through December 31, 2011. Subject to certain conditions, the agreement will automatically extend until December 31, 2016, and the agency could be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to additional cash consideration. Roy Thung, Chief Executive Officer of AMIC, commented "This is a landmark event for AMIC. We have entered into a long-term arrangement to be the exclusive carrier for a marketing organization with an established captive agency force that has produced impressive underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. results for many years, and is poised for accelerated growth. Based on historical results, we anticipate that this business will earn significant returns for AMIC for many years to come. We have been adding licenses and obtaining product approvals over the last several years so as to be prepared for an opportunity to become an issuing carrier. This block will significantly increase our fully-insured line of business, which tends to be less volatile than medical stop-loss, and will improve our overall mix of business." About American Independence Corp. AMIC is a holding company principally engaged in the health insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. business through Independence American Insurance Company and its managing general underwriter division. Some of the statements included herein may be considered to be forward looking statements which are subject to certain risks and uncertainties. Factors which could cause the actual results to differ materially from those suggested by such statements are described from time to time in IHC's filings with the Securities and Exchange Commission. |
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