PIPER ALPHA COMPANY
SETTLES COVER DISPUTEAt least one of the oil companies in the consortium that controlled the Piper Alpha oil rig in the North Sea has settled some insurance coverage disputes over the disaster. The rig exploded July 6 last year, killing 166 workers.
London-based Union Texas Petroleum Ltd., a subsidiary of Union Texas Petroleum Holdings Inc., announced Wednesday it reached a settlement with insurers on its business interruption policy regarding the explosion. The company did not comment on the names of its insurers.
Under terms of the settlement, Union Texas Petroleum Ltd. will receive a total of $228 million ($166 million after tax) in business interruption proceeds for the loss of production from the Piper, Claymore and Scapa fields. Of the $228 million, $50 million was received in 1988, $25 million was received in 1989's first quarter and an additional $100 million will be paid in 1989 with the balance of $53 million to be paid in 1990.
"The company believes that this settlement will fully compensate for the expected loss of production," said Clark Johnson, Union Texas Petroleum chairman and chief executive.
HMO ORDERED SEIZED
HARTFORD, Conn. - A Naugutuck-based health maintenance organization has been ordered seized by the state insurance commissioner who claims the HMO is insolvent, acting state Attorney General Clarine Nardi Riddle said.
Superior Court Judge James D. O'Connor on Tuesday granted a motion ordering that the assets of Liberty Health Services be seized, Ms. Riddle said.
In documents filed with the court, state Insurance Commissioner Peter F. Kelly said Liberty's liabilities exceed its assets by more the $1.5 million.
Liberty has more than 10,000 members in the Waterbury area, a statement
from the attorney general's office said.
The judge also scheduled a hearing for April 25, when Liberty will have an opportunity to argue why the state insurance commissioner should not be appointed to liquidate the company.
AETNA UNIT TO ACQUIRE
NEW ORLEANS HMO
NEW ORLEANS - Aetna Life Insurance Co., a subsidiary of Aetna Life & Casualty, has signed a definitive agreement with Delta Health Cos. calling for Aetna to acquire Delta Health HMO Inc., a New Orleans-based health maintenance organization.
Partners National Health Plans, a joint venture between Aetna Life Insurance Co. and VHA Enterprises Inc., a subsidiary of Voluntary Hospitals of America Inc., will manage Delta Health HMO.
The acquisition is subject to satisfaction of certain closing conditions that include, among others, receipt of appropriate regulatory approval. Terms of the transaction were not disclosed.
MD. BLUES FRAUD UNIT
RECOVERS $1.06 MILLION
BALTIMORE - Blue Cross & Blue Shield of Maryland announced that its Special Investigation Unit recovered $1.06 million in fraudulent health insurance claims in 1988.
This marked the second straight year the unit has recovered more than $1 million, and brought total recoveries to $3.64 million since the unit was established in 1982.
An increased awareness of health insurance fraud on the part of consumers was crucial to the unit's 1988 success, according to William G. Stephens, director of Blue Cross & Blue Shield's Special Investigation Unit.