No. As detailed in the Multi-State Market Conduct exam report recently published by the Washington Office of the Insurance Commissioner, the re-examination of the Company’s business practices was required as part of the Regulatory Settlement Agreement (RSA) the Company entered into in 2008.

The Companies are pleased to have resolved all matters with the states included Multi-State Market Conduct Exam. The Report of Examination found that the Companies had met 95% of the 2008 RSA requirements. The Companies have agreed to pay a total of $325,000 to bring closure to this matter. 
Since 2008, the Companies have spent thousands of “people hours” diligently developing or improving, implementing, documenting and monitoring sound business processes to meet the RSA’s requirements. We believe going through this exam has strengthened our Company and illustrates the commitment we have made to continuously improving our products, processes and systems, the training and oversight of agents, and servicing our customers.
The company is pleased by and agrees with comments issued by Oklahoma Insurance Commissioner John D. Doak in a press release about the final settlement agreement: “HealthMarkets Inc. has made substantial improvements … (They) paid attention, implemented new controls and addressed virtually every problem identified in the original examination. This turnaround is a regulatory success.”

Going forward, the Companies will continue to employ rigor in our business processes and cooperate with regulators because we share the same goal: full compliance with all applicable laws and regulations to the benefit of our customers, employees, agents and other stakeholders.