Exhibit 10.49a Copy of Revised Quota Share Reinsurance Agreement
between Registrant and Allianz Life Insurance Company of
North America
AMENDMENT TO
QUOTA SHARE REINSURANCE AGREEMENT
BETWEEN
THE WELLCARE MANAGEMENT GROUP, INC.
AND
ALLIANZ LIFE INSURANCE COMPANY OF NORTH AMERICA
THIS AGREEMENT is made and entered into as of this 20th day of March, 1998
by and between The WellCare Management Group, Inc., a New York corporation
(hereinafter referred to as "WellCare") and Allianz Life Insurance Company of
North American (hereinafter referred to as "Allianz").
WHEREAS, WellCare and Allianz have entered into a Quota Share Reinsurance
Agreement dated September 1, 1995 (hereinafter referred to as "The Agreement")
by the terms of which Allianz has reinsured a quota share of the contractual
risks and rewards of WellCare's Medicare Risk Contract program (more commonly
known as WellCare's "Senior Health" program); and
WHEREAS, WellCare and Allianz wish to amend the terms of The Agreement as
set forth below.
NOW, THEREFORE, the parties agree that The Agreement shall be amended as
follows:
I. Subject to Article II and Article III hereof, quota share reinsurance
under Article 1 and Article 3 of The Agreement shall cease for any and all
reinsurance premium liabilities incurred on or after January 1, 1998; provided,
however, that WellCare shall continue to account for and report to Allianz all
of WellCare's gross revenue, Claim Expenses and Administrative Expenses pursuant
to Articles 1 and 3 of The Agreement through December 31, 2000, as if there has
been no amendment to The Agreement.
II. All WellCare Senior Health claims with dates of service in 1996 and
1997 which have not been paid and, therefore, have not yet been accounted for in
calculating the reinsurance premium as of January 1, 1998, will be accounted for
and settled in accordance with Articles 1 and 3 of The Agreement as such claims
are paid between January 1, 1998 and December 31, 2000. WellCare will continue
to report the development of these liabilities on a cash and accrual basis as
has been reported throughout the term of The Agreement.
III. In the event quota share reinsurance premiums are calculated and due
to Allianz pursuant to Articles 1 and 3 of The Agreement, WellCare shall pay to
Allianz such quota share reinsurance premiums under The Agreement for each of
the years 1998, 1999 and 2000, up to a maximum cumulative total of $500,000.00.
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Such quota share reinsurance premiums, if any, shall be accounted for by
WellCare beginning on January 1, 1998, and a preliminary settlement amount shall
be paid to Allianz on or about April 15 following the year being accounted for.
Such preliminary settlement amount will be calculated on a cash basis for claims
paid through March 31, and adjustments to the preliminary settlement amount will
be calculated on a cash basis until all claims for the years 1998, 1999 and 2000
are paid. WellCare will provide Allianz with quarterly reports stating the
adjustments to the preliminary settlement amounts and the amount of quota share
reinsurance recovery payment due, if any, from Allianz. Allianz shall pay any
and all quota share reinsurance recovery payments within 30 days of receipt of
the reported adjustments.
IV. The payments due to WellCare on April 1, 1998, July 1, 1998 and October
1, 1998, pursuant to Article 2 of The Agreement shall be accelerated and shall
be due and payable by Allianz upon execution of this Agreement.
IN WITNESS THEREOF, the parties have executed this Agreement as of the date
first above written.
THE WELLCARE MANAGEMENT ALLIANZ LIFE INSURANCE COMPANY
GROUP, INC. OF NORTH AMERICA
By:/s/ Xxxxxx X. Xxxx By: /s/ Xxxxxxx X. Xxxxxxx
------------------ ------------------------
Xxxxxx X. Xxxx Print Name: XXXXXXX X. XXXXXXX
President & CEO ------------------
Signed: March 20, 1998 Signed: March 26, 1998
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