HealthMarkets is committed to improving operations across the board and is working closely with state regulators to do so. In addition to the fine, the Company agreed to implement an outreach program to those people insured by the Companies prior to August 1, 2005 regarding their coverage. We also implemented changes in the way the Company interacts with its insureds, enhanced the support and management of our agents, and agreed to periodic self reporting over an 18 month period.

The full 112 page examination report can be found here: http://www.insurance.wa.gov/oicfiles/marketconduct
/2007mc/MegaReportFinal.pdf

The examination report acknowledges that we have already implemented extensive changes that have addressed many of the concerns originally raised by the regulators. Many of those changes were underway prior to initiation of this multi-state exam and a number of others were implemented soon after the examination began three years ago.