NU Online News Service, Nov. 14, 4:53 p.m. – Colonial Life & Accident Insurance Company, Columbia, S.C., says it is disposing of an old block of cancer insurance business by reinsuring the policies with Central United Life Insurance Company, Houston, an affiliate of the Manhattan Insurance Group.
The block includes 56,000 Cancer Advantage cancer insurance policies sold before 1996. The policies generate $28 million in premium revenue a year, Colonial Life says.
Central Life will cover all Cancer Advantage claims costs incurred after Nov. 1, and it will take over administration of the policies Jan. 4, 2002, Colonial Life says.
Colonial Life, a unit of UnumProvident Corp., Portland, Maine, still sells cancer insurance, but it says it wants to reinsure the Cancer Advantage block because of the benefits structure of Cancer Advantage policies.
Benefits for the policies are tied to the underlying cost of medical care. Newer Colonial Life cancer policies come with benefits designed to eliminate company exposure to changes in the underlying medical costs, the company says.