Report of the Examination of
Superior Vision Insurance Plan of Wisconsin, Inc.
Linthicum, Maryland
As of December 31, 2019
TABLE OF CONTENTS
Page
I. INTRODUCTION.................................................................................................................1
II. HISTORY AND PLAN OF OPERATION .............................................................................3
III. MANAGEMENT AND CONTROL .......................................................................................5
IV. AFFILIATED COMPANIES .................................................................................................8
V. REINSURANCE ................................................................................................................11
VI. FINANCIAL DATA.............................................................................................................12
VI. SUMMARY OF EXAMINATION RESULTS ......................................................................19
VII. CONCLUSION ..................................................................................................................22
VIII. SUMMARY OF COMMENTS AND RECOMMENDATIONS.............................................23
IX. ACKNOWLEDGMENT ......................................................................................................24
X. SUBSEQUENT EVENTS ...................................................................................................25
Tony Evers, Governor of Wisconsin
Mark Afable, Commissioner of Insurance
125 South Webster Street, P.O. Box 7873 | Madison, WI 53707-7873
p: 608-266-3585 | 1-800-236-8517 | f: 608-264-6237
ocifinancial@wisconsin.gov | oci.wi.gov
May 26, 2021
Honorable Mark V. Afable
Commissioner of Insurance
State of Wisconsin
125 South Webster Street
Madison, Wisconsin 53703
Commissioner:
In accordance with your instructions, a compliance examination has been made of the affairs
and financial condition of:
SUPERIOR VISION INSURANCE PLAN OF WISCONSIN, INC.
Linthicum, Maryland
and this report is respectfully submitted.
I. INTRODUCTION
The previous examination of Superior Vision Insurance Plan of Wisconsin, Inc. (SVIPW or the
company) was conducted in 2021 as of December 31, 2019. The current examination covered the
intervening period ending December 31, 2019, and included a review of such subsequent transactions as
deemed necessary to complete the examination.
The examination of the company was conducted concurrently with the examination of
Superior Vision Group. The Arizona Department of Insurance acted in the capacity as the lead state for
the coordinated examinations. Work performed by the Arizona Department of Insurance was reviewed
and relied on where deemed appropriate.
The examination was conducted using a risk-focused approach in accordance with the
National Association of Insurance Commissioners (NAIC) Financial Condition Examiners Handbook. This
approach sets forth guidance for planning and performing the examination of an insurer to evaluate the
financial condition, assess corporate governance, identify current and prospective risks (including those
that might materially affect the financial condition, either currently or prospectively), and evaluate system
controls and procedures used to mitigate those risks.
2
All accounts and activities of the company were considered in accordance with the risk-
focused examination process. This may include assessing significant estimates made by management
and evaluating management’s compliance with statutory accounting principles, annual statement
instructions, and Wisconsin laws and regulations. The examination does not attest to the fair
presentation of the financial statements included herein. If during the course of the examination an
adjustment is identified, the impact of such adjustment will be documented separately at the end of the
“Financial Data” section in the area captioned "Reconciliation of Surplus per Examination."
Emphasis was placed on those areas of the company's operations accorded a high priority by
the examiner-in-charge when planning the examination. Special attention was given to the action taken
by the company to satisfy the recommendations and comments made in the previous examination report.
The company is annually audited by an independent public accounting firm as prescribed by
s. Ins 50.05, Wis. Adm. Code. An integral part of this compliance examination was the review of the
independent accountant's work papers. Based on the results of the review of these work papers,
alternative or additional examination steps deemed necessary for the completion of this examination were
performed. The examination work papers contain documentation concerning the alternative or additional
examination steps performed during the examination.
3
II. HISTORY AND PLAN OF OPERATION
The Superior Vision Insurance Plan of Wisconsin, Inc., is described as a for-profit limited-
service health organization (LSHO) insurer. An LSHO insurer is defined by s. 609.01 (3), Wis. Stat., as
". . . a health care plan offered by an organization established under ch. 185, 611, 613, or 614 or issued a
certificate of authority under ch. 618 that makes available to its enrolled participants, in consideration for
predetermined fixed payments, a limited range of health care services performed by providers selected by
the organization." Under the network model, the company provides care through contracts with clinics
and otherwise independent eye care providers operating out of their separate offices. LSHOs compete
with traditional fee-for-service health care delivery.
The company was incorporated July 2, 1992, under the name Vision Insurance Plan of
America, Inc., and commenced business December 15, 1992. The name was changed to the one
currently used effective November 1, 2014. The company is owned directly by Versant Health, Inc.
(Versant Health) and indirectly by Superior Vision Corporation. The holding company for the group is
Block Vision Holdings Corporation, with the ultimate parent being Centerbridge Capital Partners CCP III
Cayman GP Ltd. (CCP), a Cayman Islands exempted company. CCP is the ultimate controlling person of
Superior Vision Insurance Plan of Wisconsin as of December 31, 2019.
According to its business plan, the company’s service area is within the geographical
boundaries of the state of Wisconsin.
The company offers a limited range of vision care coverage which may be changed by riders
to include deductibles and copayments. The company’s products provide wellness vision examinations
and eyewear (eyeglass frame and lenses and contact lenses).
The company currently markets only to groups. The company uses outside agencies and
pays a 10% commission on new and renewal business.
SVIPW offers ancillary wellness vision benefits to employer groups. These benefits consist
of an eye examination and eyewear, which includes eyeglasses (frame and lenses) or contact lenses.
SVIPW arranges for the provision of covered vision care services through its network of participating eye
care providers. SVIPW’s network includes independent optometrists and ophthalmologists, as well as
eye care providers affiliated with retail chains.
4
SVIPW offers eligible employees and dependents of subscriber groups the following basic
covered vision care services delivered by SVIPW providers with a benefit frequency of 12 months or 24
months, depending on the plan(s) that the group selects:
Vision examination
Frame and contact lens allowance
Lenses (including single vision, bifocal, and trifocal)
Members receive a packet, which includes a plan brochure, provider directory, identification
card, and grievance procedure, and privacy notice. Members select an SVIPW participating provider from
the directory, call the provider to make an appointment, and inform the provider’s office of the information
on the identification card. In advance of rendering services, the provider verifies the member’s eligibility
and benefits coverage with SVIPW through SVIPW’s website or SVIPW’s customer service department.
The website is available 24 hours a day, seven days a week.
When members choose to receive services from an SVIPW participating provider, the
provider submits the claim to SVIPW for reimbursement of covered services and SVIPW sends the
payment directly to the provider. Members have no out-of-pocket expenses for covered services other
than any applicable deductibles which are collected by the provider at the time of service.
When members choose to receive covered services from a nonparticipating provider, they
pay the provider for such services and are reimbursed directly from SVIPW according to their out-of-
network schedule.
The company currently employs three internal agents (one as a sales representative and two
as account managers). In addition, SVIPW uses outside agents, brokers, and benefit consultants to
leverage its sales efforts. SVIPW accepts business only from an intermediary that is actively licensed
with OCI.
Premium rates for new groups are based upon the historical utilization of various benefit
levels in conjunction with the benefit frequency. These factors are then applied to the average costs of
the benefits to determine the appropriate rate. Renewal rates are based upon the utilization experience
of the individual group.
5
III. MANAGEMENT AND CONTROL
Board of Directors
The board of directors consists of five members. Three directors are elected annually to
serve a one-year term. Officers of the board are elected at the board’s annual meeting. The board
members currently receive no compensation for serving on the board.
As of December 31, 2019, the board of directors consists of the following persons:
Name and Residence
Principal Occupation
Term
Expires
Jonathan Bicknell
Pikesville, MD
Treasurer & CFO
Superior Vision Insurance Plan of WI
2021
Matthew Kabaker
New York, NY
Sr. Managing Director, Global Co-Head of
Private Equity
2021
Centerbridge Partners
Daniel Osnoss
Investment Professional
2021
New York, NY
Versant Health
Kirk Rothrock
President & CEO
2021
Villanova, PA
Superior Vision Insurance Plan of WI
Bruce Tavel
SVP, General Counsel & Secretary
2021
Linthicum, MD
Superior Vision Insurance Plan of WI
Officers of the Company
The officers serving at the time of this examination are as follows:
Name
Office
Kirk Rothrock
President & CEO
Jonathan Bicknell
CFO & Treasurer
Jeffrey Hermosillo
Exec. VP of Sales
Frederick McMillan
Sr. Medical Director
Maynard McAlpin
Chief Operating Officer
Christopher Hamey
Exec. VP, Strategy & Mfg.
Lisa Hall
RVP, Sales
Thomas Luchetta
Sr. VP, Sales
Walter Meffert
Chief Information Officer
Thomas Rosa
SVP, Client Management
6
Committees of the Board
The company's bylaws allow for the formation of certain committees by the board of directors.
The committees at the time of the examination are listed below:
Executive Committee
Audit Committee
Kirk Rothrock, Chair
Daniel Osnoss, Chair
Matthew Kabaker
Nanette DeTurk
Daniel Osnoss
Nanette DeTurk
Compensation Committee
Daniel Osnoss, Chair
Matthew Kabaker
The company has no employees on its direct payroll other than the sales personnel
mentioned previously. Necessary administrative staff is provided through a cost sharing agreement with
Superior Vision Benefit Management, Inc. (SVBM), a direct subsidiary of Block Vision Holding Company
(BVHC). Under the amended agreement, effective October 1, 2014, SVBM provides support services
related to accounting/finance, accounts payable, human resources, payroll administration, information
systems, regulatory and compliance, corporate development, and executive oversight. SVBM receives,
on an annual basis, an amount equal to the Allocation Percentage attributable to SVBM personnel
performing support services for SVIPW as compensation for the support services rendered. The term of
the agreement is indefinite until terminated. The company may terminate the agreement upon 30 days'
written notice if a default continues 30 days after notice of such default.
Under an agreement effective December 1, 2014, SVIPW agrees to compensate Superior Vision
Services, Inc. (SVS) for the salary and related expenses incurred with respect to dual employees
(personnel shared between SVIPW and SVS) who perform services for SVIPW at SVIPW’s branch office,
located at the SVS office, and for related overhead expenses attributable to the branch office. The
functions to be performed by the dual employees include, without limitation, billing, eligibility and
enrollment, customer service, and claims processing activities related to SVIPW’s commercial group
vision business. SVS receives a monthly administrative fee for expenses related to the dual employees
and the branch office based upon the commercial group vision plans written or reinsured by SVIPW (as
determined by membership in the commercial group vision plans on September 30 of the preceding
year). The administrative fee is paid by SVIPW to SVS on or about the 15
th
of each month. As soon as
7
practicable after the closing of the books for the applicable fiscal year, SVIPW and SVS shall determine
the actual shared expenses and the allocation of the same for the fiscal year. The true-up allocation shall
be based upon an amount equal to the percentage of the SVIPW members in proportion to the total
number of all members for whom vision benefits are administered by SVS and its affiliates at the branch
office. The term of the agreement is indefinite until terminated. The company may terminate the
agreement upon 30 days' written notice if default continues 30 days after notice of such default.
8
IV. AFFILIATED COMPANIES
SVIPW is a member of a holding company system. Its ultimate parent is CCP. The
abbreviated organizational chart below depicts the relationships among the affiliates in the group. A brief
description of the significant affiliates of SVIPW follows the organizational chart.
9
Holding Company Chart
As of December 31, 2019
10
Superior Vision Benefit Management (SVBM)
SVIPW and SVBM have an Administrative Services Agreement, effective August 1, 2002,
which provides for the company’s access to SVBM’s optometric provider network and SVBM provides
administrative services in support of the effective administration of such network. In consideration for the
services, the company shall pay the administrator $10,000 per month for a Network Access and Support
Fee. As of December 31, 2019, SVBM’s unaudited financial statement reported (in thousands) assets of
$46,134, liabilities of $5,096, and stockholders’ equity of $41,038. Operations for 2019 produced net loss
of ($23,707) on revenues of $49,079.
Tax-Sharing Agreement
SVIPW entered into a Tax-Sharing Agreement effective as of January 1, 2014, with its
indirect parent company, Versant Health Inc., and the other subsidiaries in the group. The parties
allocate and settle among themselves their consolidated federal income tax liability based upon their
separate tax liability as if each party filed a separate return on a stand-alone basis.
11
V. REINSURANCE
The company assumes reinsurance under the contract outlined below. The reinsurance
agreement qualifies as a fronting arrangement. Fronting is where one insurance company issues policies
to specified applicants and reinsures all or substantially all of the risks on the insurance to another
insurance entity for a fee or portion of the profits. Fronting typically is used in jurisdictions where the
assuming company is not licensed to do business.
Ceding company: National Guardian Life Insurance Company (NGLIC) and its
designated insurance company subsidiaries
Scope/type of service: Proportional—SVIPW reinsures 100% of the vision insurance
policies subject to this agreement issued under the marketer’s
brand name, including marketer certificates issued thereunder
and all applicable riders and benefits
Plan/coverage: Nonparticipating group vision insurance policies, riders and
binders of NGLIC under the Block Vision brand name (as of
December 31, 2019)
Insolvency clause: Reinsurer will pay claims without diminution in the event of the
reinsured’s insolvency
Effective date: July 1, 2009, as thereafter amended
Termination: December 31, 2021. Parties may elect to terminate for new
policies upon a material default by the other party, the
bankruptcy or insolvency of either party, or if there is a
regulatory problem. The contract is automatically terminated on
the effective termination date of the marketing and
administrative agreements that the parties are also involved in.
12
VI. FINANCIAL DATA
The following financial statements reflect the financial condition of the company as reported
to the Commissioner of Insurance in the December 31, 2019, annual statement. Adjustments made as a
result of the examination are noted at the end of this section in the area captioned "Reconciliation of
Capital and Surplus per Examination." Also included in this section are schedules that reflect the growth
of the company for the period under examination.
13
Superior Vision Insurance Plan of Wisconsin, Inc.
Assets
As of December 31, 2019
Assets
Nonadmitted
Assets
Net Admitted
Assets
Cash, cash equivalents and short-term
investments
$2,058,683
$ 81,369
$1,977,314
Uncollected premiums and agents' balances in
the course of collection
976,214
642,433
333,781
Amounts receivable relating to uninsured plans
3,851
2,027
1,824
Current federal and foreign income tax
recoverable and interest thereon
516,365
423,620
92,745
Net deferred tax asset
161,553
161,553
Receivables from parent, subsidiaries, and
affiliates
746,657
746,657
Total Assets
$4,463,323
$1,896,106
$2,567,217
Superior Vision Insurance Plan of Wisconsin, Inc.
Liabilities and Net Worth
As of December 31, 2019
Claims unpaid
$ 696,913
Unpaid claims adjustment expenses
21,798
Premiums received in advance
64,354
General expenses due or accrued
221,236
Amounts due to parent, subsidiaries, and affiliates
83,916
Aggregate write-ins for other liabilities (including $0 current)
268,240
Total Liabilities
1,356,457
Aggregate write-ins for special surplus funds
$340,000
Common capital stock
50
Gross paid in and contributed surplus
274,950
Unassigned funds (surplus)
598,259
Less treasury stock, at cost
Common shares
2,500
Total Capital and Surplus
1,210,759
Total Liabilities, Capital and Surplus
$ 2,567,216
14
Superior Vision Insurance Plan of Wisconsin, Inc.
Statement of Revenue and Expenses
For the Year 2019
Net premium income
$18,848,132
Medical and Hospital:
Other professional services
$ 7,551,254
Less
Net reinsurance recoveries
(4,367,339)
Total medical and hospital
11,918,593
Claims adjustment expenses
180,744
General administrative expenses
3,369,906
Total underwriting deductions
15,469,243
Net underwriting gain or (loss)
3,378,889
Net investment income earned
1,592
Net gain or (loss) from agents' or premium balances charged
off (amount charged off $20,111)
20,111
Aggregate write-ins for other income or expenses
30
Net income or (loss) before federal income taxes
3,400,622
Federal and foreign income taxes incurred
719,471
Net Income (Loss)
$ 2,681,151
Superior Vision Insurance Plan of Wisconsin, Inc.
Capital and Surplus Account
For the Five-Year Period Ending December 31, 2019
2019
2018
2017
2016
2015
Capital and surplus,
beginning of year
$1,688,114
$1,420,816
$1,331,240
$1,643,943
$1,217,677
Net income (loss)
2,520,550
1,201,341
1,435,005
576,650
612,212
Change in net deferred
income tax
27,238
(22,750)
Change in non-admitted
assets
(886,299)
88,708
(48,223)
(142,352)
134,054
Surplus adjustments:
Paid in
150,000
(300,000)
Dividends to stockholders
(1,500,000)
(1,000,000)
(1,500,000)
(447,000)
(320,000)
Write-ins for gains and
(losses) in surplus:
Prior year tax
adjustments
64,038
52,793
Capital and Surplus, End
of Year
$1,913,641
$1,688,115
$1,420,816
$1,331,240
$1,643,943
15
Statement of Cash Flows
As of December 31, 2019
Premiums collected net of reinsurance
$18,438,669
Net investment income
1,592
Total
18,440,261
Less:
Benefit- and loss-related payments
$ 12,057,894
Commissions, expenses paid and aggregate
write-ins for deductions
4,454,367
Dividends paid to policyholders
Federal and foreign income taxes paid
(recovered)
1,562,759
Total
18,075,020
Net cash from operations
365,241
Cash Provided/Applied:
Dividends to stockholders
1,500,000
Other cash provided (applied)
(778,198)
Net cash from financing and miscellaneous
sources
(2,278,198)
Net Change in Cash, Cash Equivalents, and
Short-Term Investments
(1,912,957)
Cash, cash equivalents, and short-term
investments:
Beginning of year
3,971,640
End of Year
$ 2,058,683
16
Growth of the Company
The following schedules reflect the growth of the company during the examination period:
Medical
Capital and
Premium
Expenses
Net
Year
Assets
Liabilities
Surplus
Earned
Incurred
Income
2019
$2,567,217
$1,356,457
$1,210,759
$18,848,132
$11,198,593
$2,681,151
2018
5,949,903
4,261,789
1,688,114
20,037,093
13,493,006
1,201,341
2017
3,531,761
2,110,944
1,420,816
21,543,447
14,813,193
1,435,005
2016
3,815,177
2,483,937
1,331,240
20,880,976
15,306,332
576,650
2015
3,941,137
2,297,428
1,643,943
21,034,093
15,843,270
612,212
Medical
Administrative
Change
Profit
Expense
Expense
in
Year
Margin
Ratio
Ratio
Enrollment
Enrollment
2019
14.9%
59.4%
18.8%
182,365
-6.1%
2018
6.0
67.3
25.1
194,306
4.9
2017
6.6
68.8
21.0
204,437
3.2
2016
2.8
73.3
21.9
198,034
1.7
2015
2.9
75.3
20.5
194,815
13.6
Per Member Per Month Information
Percentage
2019
2018
Change
Premium
$8.46
$8.46
-.0%
Expenses:
Other professional services
3.39
3.54
-4.2
Less: Net reinsurance recoveries
1.96
2.15
-8.8
Total medical and hospital
5.35
5.70
-6.1
Claims adjustment expenses
.08
.06
33.0
General administrative expenses
1.51
2.06
-26.7
Total underwriting deductions
$6.94
$7.82
The company has been profitable in the last two years. There has been minor movement in
pricing and the expenses per-member, per-month have remained static. Premiums for this vision
business are not likely to fluctuate on a larger scale due to the nature of the business. Although
membership has been declining, revenue remains positive and net income increases year over year.
17
Financial Requirements
The financial requirements for an LSHO under s. Ins 9.04, Wis. Adm. Code, are as follows:
Amount Required
1. Minimum capital or Not less than $75,000
permanent surplus
2. Security deposit Each LSHO is required to maintain a deposit of securities with the
state treasurer or an acceptable letter of credit on file with the
Commissioner's office. The amount of the deposit or letter of credit
shall not be less than $75,000. The letter of credit must be payable to
the Commissioner whenever liquidation or rehabilitation proceedings
are initiated against the company.
3. Compulsory surplus Not less than the greater of:
3% of the premiums earned by the company in the previous 12
months
or
$75,000
The Commissioner may accept the deposit or letter of credit under
par. 2 to satisfy the compulsory surplus requirement if the company
demonstrates to the satisfaction of the Commissioner that all risk for
loss has been transferred to the providers.
4. Security surplus The company should maintain a security surplus to provide an ample
margin of safety and clearly assure a sound operation. The security
surplus should not be less than 110% of the compulsory surplus.
18
Reconciliation of Capital and Surplus per Examination
No adjustments were made to surplus as a result of the examination. The amount of surplus
reported by the company as of December 31, 2019, is accepted.
19
VI. SUMMARY OF EXAMINATION RESULTS
Compliance with Prior Examination Report Recommendations
There were two specific comments and recommendations in the previous examination report.
Comments and recommendations contained in the last examination report and actions taken by the
company are as follows:
1. Business Continuity Plan—It is recommended that SVIPW further develop a business continuity plan
that includes updated disaster recovery planning, appropriate and regular testing of the disaster
recovery plans, and document planning for all aspects of SVIPW’s operations, not just information
technology (IT).
Action—Compliance.
2. Financial Reporting—It is recommended that SVIPW include the change in accounting estimate in
the statement of income in the period in which the change becomes known in accordance with
paragraph 7 of SSAP No. 3.
Action— Compliance.
20
Summary of Current Examination Results
This section contains comments and elaboration on those areas where adverse findings were
noted or where unusual situations existed. Comments on the remaining areas of the company's
operations are contained in the examination work papers.
Escheats
As a result of the examination of the company's unclaimed property procedures, it was
determined that the company is transferring unclaimed property to an unclaimed property general ledger
account. However, the company is not properly remitting those funds to the state as required by ch. 177,
Wis. Stat. All outstanding uncashed checks over five years old are required to be filed on an Unclaimed
Property Report and are to be turned over to the State of Wisconsin as required by ch. 177, Wis. Stat.,
and it is recommended that the company maintain copies of these filings.
Information Technology
During the examination, a review was made of the company’s general controls over its
information systems. The review resulted in certain findings, which were presented in a letter to
management dated May 11, 2021. It is recommended that the company strengthen its information
system controls in accordance with the recommendations made in the letter to management dated
May 11, 2021.
NAIC Annual Statement Instructions
Per review of the minutes of the board of directors for the exam period (2015-2019),
examiners noted that the Appointed Actuary did not formally present the Actuarial Opinion and Actuarial
Report to the board. Per the 2019 Annual Statement Instructions, the Appointed Actuary is to report to the
board each year on the items within the scope of the Actuarial Opinion and Actuarial Report. The
Actuarial Opinion and the Actuarial Report, which includes the actuarial analysis of the loss and loss
adjustment expense reserve, must be made available to the board. It is recommended that the minutes
of the board indicate that the Appointed Actuary has presented the Actuarial Opinion and Actuarial Report
to the board and identify the manner of presentation (e.g., webinar, in-person presentation, written).
21
Corporate Records
The company’s board of directors meeting minutes did not capture the board’s declaration of legal
entity dividends distributed to the parent during the examination period. It is recommended that the board’s
declaration of the amount and payment date of both ordinary and extraordinary dividend distributions be
recorded in the meeting minutes of the board or within a separate written consent by the directors.
22
VII. CONCLUSION
Superior Vision Insurance Plan of Wisconsin, Inc., is described as a for-profit network model
limited-service health organization (LSHO) insurer. An LSHO insurer is defined by s. 609.01 (3), Wis.
Stat, as “… a health care plan offered by an organization established under ch. 185, 611, 613, or 614 or
issued a certificate of authority under ch. 618 that makes available to its enrolled participants, in
consideration for predetermined fixed payments, a limited range of health care services performed by
providers selected by the organization." Under the network model, the company provides care through
contracts with clinics and otherwise independent eye care providers operating out of their separate
offices. LSHOs compete with traditional fee-for-service health care delivery.
The company appears to have been profitable in the last two years. There has been minor
movement in per member per month pricing and expenses have been static. Premiums for vision
business are not likely to fluctuate on a larger scale due to the nature of the business. Although
membership has been declining, revenue remains positive and net income increases year over year.
The current examination has resulted in four recommendations. The recommendations pertain to
the company’s unclaimed property procedures, general controls over its information systems, and the
reporting of reserves and a declaration of dividends to the board of directors. There were no adjustments
or reclassifications made.
The prior examination resulted in two recommendations, all of which were found to be in
compliance as of the examination date.
23
VIII. SUMMARY OF COMMENTS AND RECOMMENDATIONS
1. Page 20 - Escheats—All outstanding uncashed checks over five years old are required to be
filed on an Unclaimed Property Report and are to be turned over to the State of
Wisconsin as required by ch. 177, Wis. Stat., and it is recommended that the
company maintain copies of these filings.
2. Page 20 - Information Technology—It is recommended that the company strengthen its
information system controls in accordance with the recommendations made in the
letter to management dated May 11, 2021.
3. Page 20 - NAIC Annual Statement Instructions—It is recommended that the minutes of the
board indicate that the Appointed Actuary has presented the Actuarial Opinion and
Actuarial Report to the board and identify the manner of presentation (e.g., webinar,
in-person presentation, written).
4. Page 21 - Board Declaration of Dividends—It is recommended that the board’s declaration of
the amount and payment date of both ordinary and extraordinary dividend
distributions be recorded in the meeting minutes of the board or within a separate
written consent by the directors.
LSHOBLK_2020-06-04.dotm
24
IX. ACKNOWLEDGMENT
The courtesy and cooperation extended during the course of the examination by the officers
and employees of the company are acknowledged.
In addition to the undersigned, the following representatives of the Office of the
Commissioner of Insurance, State of Wisconsin, participated in the examination:
Name Title
David Jensen, CFE
IT Specialist
Terry Lorenz, CFE
Quality Control Specialist
Respectfully submitted,
Marti Goettelman
Examiner-in-Charge
LSHOBLK_2020-06-04.dotm
25
X. SUBSEQUENT EVENTS
On March 11, 2020, the World Health Organization declared coronavirus disease (COVID-19)
a pandemic. As of the date of this report, there is significant uncertainty as to the impact the pandemic
will have on the economy, insurance industry and the company being an HMO. In addition, this
uncertainty has contributed to extreme volatility in the financial markets. As such, the State of Wisconsin
Office of the Commissioner of Insurance will continue to monitor COVID-19 developments and how it
might impact the company and will take necessary action if a solvency concern arises.
On September 17, 2020, MetLife, Inc. (NYSE: MET) announced it had entered into a
definitive agreement to acquire Versant Health from an investor group led by Centerbridge Partners
and including FFL Partners for approximately $1.675 billion in an all-cash transaction. Versant
Health owns the marketplace brands Davis Vision and Superior Vision. The transaction closed prior
to year-end 2020 and the company is now part of the MetLife holding company structure.