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Regulators To Examine UICI

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NU Online News Service, April 15, 2005, 2:59 p.m. EDT

Washington state and Alaska insurance officials have scheduled a review of market conduct at UICI’s insurance operations.[@@]

UICI, North Richland Hills, Texas, sells health insurance to self-employed employers through associations and to students through colleges and universities.

A working group at the National Association of Insurance Commissioners, Kansas City, Mo., told UICI that Washington and Alaska regulators will be leading a multi-state effort to review 5 years of operations at UICI’s MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company of Tennessee and Chesapeake Life Insurance Company units.

In the past, each state insurance department has conducted its own market conduct exams, UICI says.

“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,” says UICI President William Gedwed. “UICI is fully committed to cooperating in all respects with our state insurance regulators throughout this process.”

Fitch Ratings, New York, says it expects the exam to focus mainly on the sale of health coverage to self-employed employers, which accounts for about 75% of UICI’s revenue.