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Lifespan and its Subsidiaries Insured Offshore

Monday, April 08, 2013


Lifespan Corporation and its subsidiaries are insured by a self-owned foreign insurer domiciled offshore in Hamilton, Bermuda.

Lifespan Corporation, who recently announced financial difficulties and pending cost reductions, is insuring itself through an offshore insurer. The number one provider of medical services in Rhode Island, encompassing several major facilities and employing more than 12,000 physicians, nurses, healthcare workers and support staff owns the foreign company responsible for insuring its facilities and workforce.

Lifespan insurer is an island corporation.

The private non-profit organization is currently self-insured by R.I. Sound Enterprises Insurance Co. Ltd. (RISE), a for-profit organization domiciled in Hamilton, Bermuda. Formed in 1990, RISE is entirely owned by Lifespan and because of its proprietary ownership, considered a captive insurance company.

RISE covers the professional medical malpractice liability and general liability risk for the Lifespan system, its employees and physician groups. The malpractice plan (LMP) covers Lifespan’s directors, officers, Lifespan subsidiaries, entities and their employees. It not only provides insurance coverage to all entities within the Lifespan system but also extends to all its eligible physician groups.

Lifespan Risk Services (LRS), also a for-profit organization is a Rhode Island corporation that handles the underwriting for the LMP. The insureds covered under the RISE policy and listed with LRS include The Miriam Hospital, Rhode Island Hospital, Lifespan, Newport Hospital, VNA and all affiliate programs. RISE is also listed as insured under the RISE policy.

What is a captive and why insure offshore?

According to the National Association of Insurance Commissioners (NAIC), captives are created by non-insurance companies to insure their own risks and cover a wide range including all those covered by licensed commercial insurers. Domestic captives are monitored and regulated by state and federal insurance regulatory standards, policies and procedures.

Lifespan’s RISE is considered a foreign insurer and is not subject to the same oversight. Foreign captives, whose owners are domiciled in Rhode Island, are not overseen by the Department of Business Regulation (DBR) in the same manner as domestic insurers.

“The disclosure requirements for captives are different,” said Jack Broccoli, Chief Insurance Examiner at DBR. “The disclosure is not as comprehensive and the transparency is not as comprehensive with captives. Lifespan’s captive is regulated by Bermuda standards. We receive an actuarial report and they have an independent audit. We can look at the documents we receive - the transactions and risk factor, but we don’t have authority over the captive or its investments.”

Actuarial and financial reporting is limited.

Although RISE is held offshore, its actuarial reporting is prepared by Towers Watson of Connecticut. Information contained in the report states that the findings are “materially influenced by the rate of return [selected] by RISE” and not the actuary based per the April 17, 2012 report. The report also notes that the actuary conducted no examination of RISE’s assets and assumed that RISE’s loss reserves were backed by valid assets. All financial information supplied to the actuary is provided by an outside source or RISE and its accuracy assumed. 

Financials submitted to DBR in April 2012, by KPMG of Bermuda, exposed a significant downward spiral, with 2011 year-end cash equivalents at $4,697, decreased from $1,875,000 in 2010. Total income decreased, expenses climbed and comprehensive (loss) income fell into the red zone.

Lifespan is not alone.

Lifespan is joined by Women and Infant’s Hospital and Kent County Hospital, and their affiliates, who also self-insure through offshore captives.

Women and Infant’s captive, W&I Indemnity, Ltd is located in the Cayman Island’s as is Tollgate Idemnity, Ltd. All three entities have actuarials prepared by Towers Watson, although the Cayman companies use a separate independent financial auditor.

Where is the safety net?

The limited scope of regulatory authority over foreign captives is a concern due to limited scope of information reported and lack of enforcement ability over the organizations practices.

“There is no safety net,” said Steven R. DeToy, Director of Government Relations for the Rhode Island Medical Society. “There is no enforcement power and no safety net in place over these foreign captives. They can’t ensure solvency. It’s totally unregulated.”

For a list of all Lifespan entities insured under the RISE policy, click here.


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Given my families experiences which involve capital crimes committed in order to loot a Living Trust, courtesy of Lifespan's Barnet 'Buny' Fain, 'Dr. Joe' Amaral, Mssrs. Varecchia and Vecchinone as well as Garamella, Bittner, and Visconti, this latest news gem fits beautifully, doesn't it?

The purpose of offshore insuring is obvious, to enable Lifespan to do what it wants to whomever it wants with impunity.

Comment #1 by paul zecchino on 2013 04 08

And why do companies go off shore, one reason is the regulations are stifling in RI. The RI regulators what love to get their hands on these companies but to what avail? RI is known as an impediment to business and completely counter productive.

Comment #2 by Gary Arnold on 2013 04 08

Gary Arnold -

Agree. Many go offshore to operate with regulations which stifle not only Rhode Island but many areas of America.

Another reason in addition to the valid one you cite is to shield what one has from nuisance litigation filed by shonky predators with law degrees. Some people say America doesn't manufacture anything anymore. Well, one thing that's manufactured in quantity is nuisance litigation and it costs everyone plenty, acting as yet another hidden tax.

One need not be a billionaire to see the practicality of incorporating and banking offshore, nor avail oneself of it. Plenty of people do so. They pay the IRS every penny owed, contrary to the media's stupid stigmatization of offshore entities as tax-cheats, and they enjoy the protection from malicious lawsuits.

But Lifespan has demonstrated to our family's great satisfaction, a callous indifference toward truth, laws, people and life itself. Lifespan demonstrated to us that it knew exactly what it was doing, that it would ignore all expressed concerns about serious matters and manipulate troubling events and duck consequences by any means to acquire yet more money to plug unsightly holes in its ledgers.

This latest stinks, and the years 1977 and 1990, noted in the article and the links to Lifespan's self-insuring activity, coincide stupendously with critical events we've noted. Something to which Girard R. Visconti, Lifespan's 'Cat's Paw' can easily relate and about which he could come clean, were he so capable. Which he isn't.

Comment #3 by paul zecchino on 2013 04 08

Hey, looking at the picture above, where's the big, fat 'Zecchino Pavillion' sign which cost Julia Zecchino her life, so that 'Dr. Joe' Amaral could grab millions from an elderly relative, hmmm?

Comment #4 by paul zecchino on 2013 04 08

Why didn't the state of Rhode Island and some of our municipalities think of this?

Imagine if we had insured our public sector union pensions offshore. But that wouldn’t happen because those who make decisions on public sector pensions are the pensioners themselves. Could that be a conflict of interest?

Comment #5 by James Berling on 2013 04 08

Did Lifespan remove the 'Vincent and Julia Zecchino Pavillion' sign from atop the main building, because it finally realized the old trick of erasing the word 'Paul' from 'Paul Vincent Zecchino' written on the Living Trust of 1957, to lend a veneer of legitimacy to the Zecchino Estate Grift was bust, lame, and well seen as the toxic sham it always was?

Where'd the sign go, Dr. Joe? Vecchione, you care to weigh in with an explanation, or just stonewall it in typical Lifescam tradition?

Lifespan is a crime syndicate. Visconti is its money whore.

Comment #6 by paul zecchino on 2013 04 09

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