NORTH RICHLAND HILLS, Texas, April 14 /PRNewswire-FirstCall/ -- UICI
(NYSE: UCI) today announced that it has received notice of a scheduled multi-
state market conduct review of its principal insurance subsidiaries, The MEGA
Life and Health Insurance Company, Mid-West National Life Insurance Company of
Tennessee, and The Chesapeake Life Insurance Company.
The Market Analysis Working Group of the National Association of Insurance
Commissioners (NAIC) has notified UICI that it has selected the departments of
insurance in the states of Washington and Alaska to lead the review. The
review will focus on the operations of the UICI companies over the five year
period ended December 31, 2004. UICI expects the review to commence soon.
As is the case with all insurance companies subject to state regulation,
individual state insurance departments have periodically conducted and
continue to conduct market conduct examinations of UICI's insurance
subsidiaries. The NAIC's Market Analysis Working Group has recently
established procedures designed, among other things, to facilitate the
communication and coordination of regulatory responses between and among
multiple states and to enable state insurance departments and regulated
insurance companies to more efficiently and consistently address specific
regulatory issues.
"UICI is fully committed to cooperating in all respects with our state
insurance regulators throughout this process," commented William J. Gedwed,
President and CEO. "We appreciate the NAIC's efforts to establish and
implement the process for collaborative examinations by multiple states, which
we believe will lead to a more efficient market conduct review process."
Mr. Gedwed said he does not believe the multi-state market conduct review
will have a material adverse effect upon UICI's consolidated financial
position or results of operations.
ABOUT UICI:
UICI (headquartered in North Richland Hills, Texas) through its
subsidiaries offers insurance (primarily health and life) to niche consumer
and institutional markets. Through its Self-Employed Agency Division, UICI
provides to the individual and self-employed markets health insurance and
related insurance products, which are distributed primarily through the
Company's dedicated agency field forces, UGA-Association Field Services and
Cornerstone America. Through its Student Insurance Division, UICI provides
tailored health insurance programs for students enrolled in universities,
colleges and kindergarten through grade twelve. Through its Star HRG
Division, UICI markets, administers and underwrites limited benefit insurance
plans for entry level, high turnover, hourly employees. Through its Life
Insurance Division, UICI offers life insurance products to selected markets.
Through its ZON Re USA unit, the Company underwrites, administers and issues
accidental death, accidental death and dismemberment (AD&D), accident medical
and accident disability insurance policies, both on a primary and on a
reinsurance basis. For more information, visit http://www.uici.net .
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995:
Some of the matters discussed in this news release may contain forward-
looking statements that are subject to certain risks, uncertainties and
assumptions. Such forward-looking statements are intended to be identified in
this document by the words "anticipate", "believe", "estimate", "expect",
"intend", "objective", "plan", "possible", "potential" and similar
expressions. Actual results may vary materially from those included in the
forward-looking statements. Factors that could cause actual results to differ
materially from those included in the forward-looking statements include, but
are not limited to, general economic conditions; the continued ability of the
Company to compete for customers and insureds in an industry where many of its
competitors may have greater market share and/or greater financial resources;
the Company's ability to accurately estimate medical claims and control costs;
changes in government regulation that could increase the costs of compliance
or cause the Company to discontinue marketing its products in certain states;
the Company's failure to comply with new or existing government regulation
that could subject it to significant fines and penalties; changes in the
relationship between the Company and the membership associations and/or
changes in the laws and regulations governing so-called "association group"
insurance (particularly changes that would subject the issuance of policies to
prior premium rate approval and/or require the issuance of policies on a
"guaranteed issue" basis); significant liabilities and costs associated with
litigation; failure of the Company's information systems to provide timely and
accurate information; negative publicity regarding the Company's business
practices and/or regarding the health insurance industry in general; the
Company's inability to enter into or maintain satisfactory relationships with
networks of hospitals, physicians, dentists, pharmacies and other health care
providers; failure of the Company's regulated insurance company subsidiaries
to maintain their current ratings by A.M. Best Company, Fitch and/or Standard
& Poor's; and the other risk factors set forth in the reports filed by the
Company with the Securities and Exchange Commission.
UICI press releases and other company information are available at UICI's
website located at http://www.uici.net .
SOURCE UICI
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Related links:
http://www.uici.net
CONTACT:
Russ Keene of UICI, +1-512-372-6364
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