Health Insurance Innovations, Inc. (NASDAQ:HIIQ) Files An 8-K Termination of a Material Definitive AgreementItem 1.02.
On June 7, 2018, the Board of Directors of Health Insurance Innovations, Inc. (the “Company”) terminated the employment agreement of Michael W. Kosloske, the Company’s Founder and Chief of Product Innovation (the “Employment Agreement”). The Employment Agreement was originally entered into on February 13, 2013, and amended on November 9, 2015. The Employment Agreement was terminated without cause. Under the terms of the Employment Agreement, so long as Mr. Kosloske executes a general release in favor of the Company, he will be entitled to severance compensation in an amount equal to two times the sum of his annual base salary and his most recently earned annual bonus (or, if greater, his average annual bonus earned in the three most recently completed calendar years), payable in 24 equal monthly installments. In addition, his unvested stock appreciation rights and restricted stock grants will automatically vest on an accelerated basis as of the termination date.
Mr. Kosloske will continue to serve as a director of the Company.
| Item 5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
The information in Item 1.02 is incorporated herein by reference.
| Item 7.01. | Regulation FD Disclosure. |
On June 7, 2018, the Company was informed by Michael W. Kosloske that entities controlled by Mr. Kosloske sold an aggregate of 1,300,000 shares of the Company’s Class A common stock in a transaction under Rule 144 under the Securities Act of 1933, as amended.
The information in this Item 7.01 shall not be treated as filed for purposes of the Securities Exchange Act of 1934, as amended.
About Health Insurance Innovations, Inc. (NASDAQ:HIIQ)
Health Insurance Innovations, Inc. is a developer, distributor and virtual administrator of individual and family health insurance plans and supplemental products. The Company sells individual and family insurance plans (IFP) that include short-term medical (STM) insurance plans and hospital indemnity plans. The Company operates through Insurance Plan Development and Distribution (IPD) segment. Its STM plans cover individuals for over 360 days with a range of co-pay and deductible options. Its individual major medical (IMM) plans cover prescription drugs, pre-existing conditions and preventive care, while STM plans provide optional coverage for prescription drugs. The Company’s hospital indemnity plans provide a daily cash benefit for hospital treatment and doctor office visits, as well as accidental injury and death or dismemberment benefits. It provides supplemental insurance products, including pharmacy benefit cards, dental plans, vision plans and cancer/critical illness plans.