773660--3/14/2006--UICI

related topics

{financial, litigation, operation}

{regulation, government, change}

{loss, insurance, financial}

{system, service, information}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{capital, credit, financial}

Our domestic insurance subsidiaries are currently the subject of a multi-state market conduct examination, and an adverse finding or outcome from that examination could adversely affect our results of operations and financial condition. Negative publicity regarding our business practices and about the health insurance industry in general may harm our business and adversely affect our results of operations and financial condition. UICI s failure to secure and enhance cost-effective health care provider network contracts may result in a loss of insureds and/or higher medical costs and adversely affect UICI s results of operations. UICI s inability to obtain funds from its insurance subsidiaries may cause it to experience reduced cash flow, which could affect the Company s ability to pay its obligations to creditors as they become due. A failure of our information systems to provide timely and accurate information could adversely affect our business and results of operations. Changes in government regulation could increase the costs of compliance or cause us to discontinue marketing our products in certain states. We may not have enough statutory capital and surplus to continue to write business. Our reserves for current and future claims may be inadequate and any increase to such reserves could have a material adverse effect on our financial condition and results of operations. Litigation may result in financial losses or harm our reputation and may divert management resources. If we fail to comply with extensive state and federal regulations, we will be subject to penalties, which may include fines and suspension and which may adversely affect our results of operations and financial condition.

Full 10-K form ▸