UICI on Thursday pledged its full cooperation with the Office of the
Insurance Commissioner of the State of Washington, which issued a cease and desist order on March 8 that prohibits The MEGA Life and Health Insurance Company (a subsidiary of UICI) from selling a previously approved health insurance product to consumers in the State of Washington.
Representatives of MEGA have been engaged since October 2004, and they will reportedly continue to engage, in a good faith dialogue with the Washington Department of Insurance in an effort to resolve issues with respect to use of a policy form that was initially approved by the Washington Department of Insurance in 1997.
UICI has also voluntarily terminated sales of a similar product issued by Mid-West National Life Insurance Company of Tennessee (a
sister company of MEGA), pending resolution of the open issues with the State of Washington Department of Insurance.
MEGA and Mid-West have issued certificates covering approximately 60,000 insureds in the State of Washington. Existing policyholders should reportedly be assured that MEGA and Mid-West will honor benefits provided in their insurance contracts and all benefits otherwise required by Washington law.
Consumers in Washington who may have questions concerning their coverage and their policy are invited to contact 1-800-527-5504 (MEGA’s toll free information number) or 1-800-733-1110 (Mid-West’s toll free information number).
UICI said it currently does not believe that the issuance of the cease and desist order by the Washington Insurance Commissioner will have a material adverse effect upon its results of operations or its financial condition.
“We remain very committed to the Washington State market over the long term,” said William Gedwed, president and CEO of UICI,
“and, while I am disappointed that the Washington Department of Insurance has taken this action, we are confident that we can work cooperatively with the Department to quickly resolve our open issues.”
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