American Investors 2-2000 To Announce Change In Effective Date For Compliance With Privacy Rules

Arkansas Insurance Department 0 0 raj Divisions Administration 1-501-371-2620 1-501-371-2629 Fax insurance.Administration© mail.state.ar.us Accounting 1-501-371-2605 insurance.Accounting@ mail.state.ar.us Consumer Services 1-501-371-2640 1-800-852-5494 1-501-371-2749 Fax insurance.Consumersi mail.state.ar.us Information Systems 1-501-371-2657 insurance. Information. Systems@ mail.state.ar.us Insurance Fraud Investigation 1-501-371-2790 1-501-371-2799 Fax insurance. Fraud@ mail.state.ar.us Finance 1-501-371-2665 1-501-371-2747 Fax insurance. Finance@ mail.state.ar.us Human Resources 1-501-371-2815 insurance.Human.Resources@ mail.state.ar.us Legal 1-501-371-2820 insurance. Legal@ mail.state.ar.us License 1-501-371-2750 insurance.LicenseGt mail.state.ar.us Life & Health 1-501-371-2800 insurance.L&H© mail.state.ar.us Property & Casualty 1-501-371-2800 1-501-371-2748 Fax insurance.P&C© mail.state.ar.us Risk Management 1-501-371-2690 rance.Risk.Management@ mail.state.ar.us Senior Health Insurance Information Program 1-501-371-2782 1-800-224-8330 1-501-371-2749 Fax insurance.Seniors© mail.state.ar.us Mike Huckabee Mike Pickens Governor Commissioner 1200 West Third Street Little Rock, AR 72201-1904 1-501-371-2600 1-800-282-9134 Fax 1-501-371-2618 www.state.ar.us/insurance July 13, 2000 BULLETIN NO. 3-2000 TO: ARKANSAS MEDICAL PROVIDERS FROM: ARKANSAS INSURANCE DEPARTMENT SUBJECT: PATIENT INSURANCE BILLING FOR AMERICAN INVESTORS LIFE INSURANCE COMPANY INSUREDS On July 11, 2000, at the request of the Arkansas Insurance Department, Pulaski County Circuit Judge John Plegge placed Arkansas-based health insurer, American Investors Life Insurance Company, into receivership. At this time, all day-to-day operations of the company are being handled by the Insurance Department's Deputy Receiver, Steve Uhrynowycz. In order to reduce and improve the company's current claims handling, the Receiver has brought in an independent team to assist in both evaluating and eliminating the company's claims backlog. We encourage medical providers to continue to see patients insured with American Investors and to submit billing to the company for medical claims incurred by patients insured by American Investors, just as you submit claims to the company in the normal course of business. At this time, it is this Department's intention to stabilize company operations and rehabilitate the company. The Deputy Receiver is working diligently to reorganize the company's business operations, particularly its claims handling processes. Consequently, it is imperative that medical providers continue to see American Investors insureds, submit claims and fully cooperate and be patient with the Deputy Receiver. Also, attached please fmd a brief question-and-answer document you will fmd to be informative and helpful. If you have any further questions or comments, please contact the Consumer Services Division of the Arkansas Insurance Department at 1-800-852-5494. MP:sc Comprehensive Health Ins. Pool ("CHIP") 1-800-238-8379 Mike Pickens Insurance Commissioner ! Education Pays ! Stay In School ! ARKids First Healthcare Insurance 1-888-474-8275 American Investors Life Insurance Company Questions and Answers 1. Do I still have coverage? Answer: Yes. As long as premiums are paid, the insured's coverage will remain in force. 2. Will my claims be paid? Answer: Yes. American Investors will continue to pay claims while the company is in rehabilitation. If the company moves into liquidation, the Arkansas Life and Disability Insurance Guaranty Association will review and pay covered claims up to $100,000. 3. What is the Arkansas Life and Disability Guaranty Association (ALDIGA)? Answer: The ALDIGA is an entity designed to provide substitute, limited and temporary claims payments for insureds of insolvent companies. The ALDIGA operates under a statutory limitation of $100,000 per person, while a company is in liquidation and will pay covered claims. The ALDIGA may also provide limited coverage to the policyholder after the liquidation is complete. 4. How do I file a claim with the ALDIGA? Answer: Both insureds and providers should continue to file claims with American Investors as they have done in the past. 5. How do I get new coverage? Answer: Call your agent or talk to your employee benefits representatives.