COMPDENT SIGNS REINSURANCE AGREEMENT FOR UNILIFE BUSINESS.ATLANTA--(BUSINESS WIRE)--Oct. 26, 1995--CompDent Corporation (Nasdaq/NM:CPDN CPDN Climate Prediction Dot Net CPDN Certified Peritoneal Dialysis Nurse ), one of the largest managed dental care companies, today announced that it has agreed to a quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). 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. agreement with its dual choice partner, Shenandoah Life Insurance Company, a mutual insurance company based in Roanoke, Virginia. Under the terms of the agreement, Shenandoah will reinsure re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. business written by UniLife, a subsidiary of CompDent which writes indemnity insurance indemnity insurance Managed care A type of health insurance in which a Pt can choose the hospital and provider, and the insurer reimburses the Pt or provider for a set percentage of the cost, minus deductibles and co-payments , effective October 1, 1995. Execution of the agreement is subject to regulatory approval. David R. Klock, president and chief executive officer of CompDent, said, "We've said for some time that we wanted to focus our efforts on the managed dental care business and not the indemnity business. The quota share reinsurance agreement removes our risk in terms of UniLife's indemnity business and will contribute to improved profit margins. There will be no impact on future earnings as a result of this agreement." CompDent Corp., headquartered in Atlanta, offers managed dental care plans as an alternative to traditional indemnity dental insurance and provides dental coverage for approximately 1.4 million plan members in 16 states. The Company's managed dental care plans are sold through a network of more than 8,800 independent agents and a 40-person direct sales force. CONTACT: CompDent Corporation, Atlanta Sharon S. Graham, 404/998-8936 |
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