UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: December 20, 1996
(Date of earliest event reported)
UNIVERSAL AMERICAN FINANCIAL CORP.
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(Exact name of registrant as specified in its charter)
New York 0-11321 11-2580136
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
Mt. Ebo Corporate Park, Route 22, Brewster, New York 10509
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number
including area code (914) 278-4094
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UNIVERSAL HOLDING CORP
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER ITEMS
On November 27, 1996, American Pioneer Life Insurance Company ("American
Pioneer"), a wholly-owned subsidiary of the Company, entered into an assumption
reinsurance agreement (the "Agreement") with First National Life Insurance
Company ("First National"), an Alabama carrier, whereby American Pioneer will
assume approximately $50 million of premium from First National. The business
assumed consists of over 40,000 Medicare Supplement policies totaling
approximately $48 million of premium and 500 Home Health Care policies totaling
approximately $1.2 million, with the balance consisting of a small amount of
life insurance and other miscellaneous accident and health policies.
As part of the transaction, American Pioneer has reinsured 90% of the assumed
Medicare Supplement policies with an unaffiliated, A+ rated reinsurer while
American Pioneer will retain 10% of the risk and perform all the administration
on these policies. The allowances American Pioneer receives from the reinsurer
for the administration of its 90% are on favorable terms to the Company.
The Agreement was subject to the approvals of the Circuit Court of Montgomery
County, Alabama, the Alabama Insurance Department and the Florida Insurance
Department. These approvals were received between November 7, 1996 and November
22, 1996. The Agreement became effective on November 27, 1996, with an effective
date of October 1, 1996.
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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 thereunto duly authorized.
Universal American Financial Corp.
By: /s/ ROBERT A. WAEGELEIN
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Robert A. Waegelein
Senior Vice President
Chief Financial Officer
Dated: December 20, 1996
