The University of Louisiana-Monroe (ULM) will create an Endowed Chair in Risk Management and Insurance position in the College of Business and Social Sciences with $585,000 in funding that stems from the dissolution of health maintenance organization AmCare Health Plans of Louisiana Inc. (AmCare).
A court order outlined the distribution of funds from AmCare’s dissolution and several institutes of higher education were named as recipients of any excess funds.
Release of the funds to ULM has been approved by Louisiana Insurance Commissioner Jim Donelon. Additional funds will be provided by the university from other sources.
Partial disbursement of funds from AmCare’s dissolution occurred in 2017. The total amount donated through the dissolution of AmCare was $3.5 million.
AmCare was ordered into liquidation and in 2011 the Louisiana Supreme Court issued an opinion in favor of the Louisiana Commissioner of Insurance allowing providers and policyholders of AmCare to receive their payments. Since that time, the Louisiana Department of Insurance and Receiver Marlon Harrison have worked to ensure that policyholders, providers and creditors were paid the principal and interest to which they were entitled.
The Louisiana Department of Insurance, as well as Texas and Oklahoma regulators, filed suit against the parent company of AmCare, Health Net Inc., over breach of contract and other torts. When the Louisiana Supreme Court ruled in their favor in 2011, each state was awarded compensatory and punitive damages.
The law allows for the Commissioner of Insurance to disburse surplus funds according to a plan approved by the court.
Other educational institutions named in the court order to receive any surplus funds from the AmCare dissolution include Xavier University, LSU Shreveport, Southern University, University of New Orleans and University of Louisiana-Lafayette.
Source: Louisiana Department of Insurance
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