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Note 9. Reinsurance
3 Months Ended
Mar. 31, 2016
Notes  
Note 9. Reinsurance

9.             Reinsurance

 

Effective January 1, 2016, all of the in-force medical stop-loss business of Independence American produced by Risk Solutions was co-insured in connection with the Risk Solutions Sale and Coinsurance Transaction (see Note 3).  As a result of this transaction, the Company recorded $18,674,000 of estimated amounts due from reinsurers.  Stop-loss business produced by Risk Solutions was 100% co-insured, accordingly the Condensed Consolidated Statements of Income reflect the co-insurance effective January 31, 2016.

                The Company is contingently liable with respect to reinsurance in the unlikely event that the assuming reinsurers are unable to meet their obligations. The ceding of reinsurance does not discharge the primary liability of the original insurer to the insured.