-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TSwyrfhNzHDDM30wWOQW/ZnODRYp9lLzv3GZr88gOhETZ7YeyxsS37smQLvWIGei kSzr2FXNwCZcB6PDfWI86g== 0000950152-98-007612.txt : 19980916 0000950152-98-007612.hdr.sgml : 19980916 ACCESSION NUMBER: 0000950152-98-007612 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980801 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980915 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL RESERVE LIFE CORP CENTRAL INDEX KEY: 0000215403 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 341017531 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-08483 FILM NUMBER: 98709675 BUSINESS ADDRESS: STREET 1: 17800 ROYALTON RD CITY: STRONGSVILLE STATE: OH ZIP: 44136 BUSINESS PHONE: 2165722400 MAIL ADDRESS: STREET 1: 17800 ROYALTON RD CITY: STRONGSVILLE STATE: OH ZIP: 44136 8-K 1 CENTRAL RESERVE LIFE CORPORATION FORM 8-K 1 Securities and Exchange Commission Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 Date of Report: August 1, 1998 (Date of earliest event reported) Central Reserve Life Corporation (Exact Name of Registrant as specified in its charter) Ohio 0-8483 34-1017531 ---- ------ ---------- (State or other jurisdiction (Commission File (IRS Employer of Incorporation) Number) Identification Number) 17800 Royalton Road, Strongsville, Ohio 44136 --------------------------------------- ----- (Address of Principal Executive Offices) (Zip Code) (440) 572-2400 -------------- (Registrant's telephone number, including area code) 2 Item 5. Other Events. On August 1, 1998, Central Reserve Life Insurance Company ("Central"), a wholly- owned subsidiary of the Company, entered into an agreement with United Benefit Life Insurance Company ("UBL") to reinsure 100% of the major medical policies of UBL, covering approximately 100,000 lives with estimated annual premiums of $100 million. Concurrently, Central ceded 80% of the business to Reassurance Company of Hannover ("Hannover"), thereby assuming a net risk of 20%. Reserves for estimated claims of $36,500,000 were assumed by Central for which UBL transferred assets of $16,500,000, net of a $20,000,000 ceding allowance provided by Central. Central received a $20,000,000 ceding allowance from Hannover for the 80% thereby creating a zero effect on statutory surplus regarding the allowances. The agreement also provides Central with access to UBL's current sales force. Reference is made to the News Release attached as Exhibit 99.1 hereto. 3 Item 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Press Release dated August 3, 1998 4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: September 14, 1998 CENTRAL RESERVE LIFE CORPORATION By: /s/ Frank W. Grimone ------------------------------------ Chief Financial Officer 5 EXHIBITS Exhibit No. Exhibit 99.1 Press Release dated August 3, 1998 EX-99.01 2 EXHIBIT 99.01 1 CENTRAL RESERVE LIFE CORPORATION 17800 ROYALTON ROAD STRONGSVILLE, OHIO 44136 WWW.CENTRALRESERVE.COM NASDAQ: CRLC AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD: Gayle Vixler Mike Arneth Janine Warrell First Vice President General Information Analyst Inquiries (440) 572-2400 (312)640-6734 (312)640-6775 Margie Baigh Media Inquiries (312) 640-6690 FOR IMMEDIATE RELEASE MONDAY, AUGUST 3, 1998 CENTRAL RESERVE LIFE COMPLETES ACQUISITION OF UNITED BENEFIT LIFE HEALTH INSURANCE BUSINESS STRONGSVILLE, OHIO, AUGUST 3, 1998 -- CENTRAL RESERVE LIFE INSURANCE COMPANY (CRL), a subsidiary of CENTRAL RESERVE LIFE CORPORATION (NASDAQ: CRLC), announced completion of its transaction to acquire through reinsurance all of the health insurance business of United Benefit Life Insurance Company, a subsidiary of privately-held United Benefit Managed Care Corp. (UBMCC), based in Fort Worth, Texas. The transaction, effective August 1, affects a block of business which primarily includes major medical type policies sold to individuals and small businesses. In addition, the agreement also provides CRL with access to United Benefit Life's current sales force through an agency agreement with Insurance Advisors of America, Inc. (IAAI), another subsidiary of UBMCC. The United Benefit Life block of business presently generates approximately $100 million in annual premium revenue. The addition of this block will increase CRL's annual premium revenue by 50 percent to over $350 million. Through a quota-share reinsurance agreement, approximately 100,000 United Benefit Life covered lives are assured of continued coverage, and all terms and conditions of their policies will be honored by CRL. Central Reserve Life Corporation, through its Ohio-domiciled life insurance company, specializes in meeting the insurance needs of individuals and small to mid-sized businesses with accident and health insurance and short-term major medical insurance. VISIT ON THE WORLDWIDE WEB AT WWW.CENTRALRESERVE.COM FOR MORE INFORMATION ABOUT CENTRAL RESERVE LIFE CORPORATION TOLL-FREE VIA FAX, DIAL 1-800-PRO-INFO ENTER COMPANY CODE "CRLC" # # # -----END PRIVACY-ENHANCED MESSAGE-----