8/29/1983 - Laserfiche WebLink

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Dr. Hardin asked the representative of Gulf Life, Louis Schlitt, if they can provide coverage effective 9/1/83, including all the paperwork that goes with it, and Mr. Schlitt confirmed that they could do so. Dr. Hardin stated that if they can do that, he would say the figure of $20,000 difference is correct. OMB Director Barton noted that there is a difference depending on whether you go straight premium or the ASO method, and under the ASO method, he would like a response from the Gulf Life agent as to his interpretation of how something is handled vs. the way Aetna handles it Under the ASO Plan, we pay approximately $10.00 per contract per month less in premium, butunder the Aetna plan if you are in month 3, you multiply the monthly charge times the number of people times the number of months that you are in and there is a stop -loss that slides -along month by month as to the maximum you are going to pay out at any given period of time. Under the Gulf plan, it appears if we get into month 2 and the losses are there, we havecommittedto pay up to the maximum of the annual premium as to stop loss. It does not move along on the monthly premium. Mr. Schlitt confirmed that is correct - the only limitation is the $25,000 per claim limitation. Administrator Wright noted that, in other words, there is a call provision on their premium. Chairman Bird commented that it seems there is a difference in the two plans then, and Mr. Barton agreed. there is as to exposure. Louis Schlitt, representing Gulf Life Insurance Co., informed the Board that historically the claims do not appear to be excessive in the very beginning and we would probably be in the third month -before there are any claims at all. He personally felt that there is practically no change of reaching the maximum being discussed as it could 3 BOOK 54 PACE 391 AUG 2 919$3