| Consumer Alert Regarding Health Care Benefits -- Employers Mutual, LLC |
| The following was mailed to consumers participating in this plan on February 27, 2002 |
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| The North Carolina Department of Insurance has received information that you or your employer may be depending on a company called Employers Mutual, LLC for your health care benefits. |
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| Employers Mutual, LLC is located in the state of Nevada and is not licensed as a health insurance company in North Carolina. Employers Mutual, LLC does not offer traditional health insurance coverage. |
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| Employers Mutual's health care benefits may have been offered to you or your employer directly or through one of sixteen organizations which were founded by certain managers of Employers Mutual as recently as last year. The names of some of these organizations linked to Employers Mutual, LLC are the "American Coalition of Consumers," "American Association of Agriculture," "American Association of Automotive Dealers and Mechanics," "Association of Retail Sellers," "Association of Real Estate Agents," " Association of Educators," "Association of Barristers and Legal Aides," "Association of Cosmetologists," and the "Association of Health Care Workers." |
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| This letter is to notify you of important findings and rulings made by the Judge of the United States District Court of Nevada in a federal court lawsuit brought against Employers Mutual, LLC, its related Associations, and others. |
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| Among other findings, the Federal Judge stated in his Order that: "In October 2001, an actuary retained by Employers estimated there were $4,500,000.00 in outstanding claims." |
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| The Federal District Court Judge in Nevada entered a ruling on February 1, 2002 which removed certain managers of Employers Mutual and the Associations from further involvement in their business operations and instead placed a trustee in charge of those businesses. The Court has given the trustee power to administer these businesses or to terminate them, if necessary. Employer's Mutual, LLC has reportedly filed a notice of appeal from the Federal Court's ruling. |
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| The federally-appointed trustee is named Thomas A. Dillon. The trustee's telephone number in California is (650) 558-8384. While it may be difficult to reach Mr. Dillon, it is very important that the trustee be informed of all outstanding Employers Mutual health benefit claims. |
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| According to a memo received on February 22, 2002 from the federally-appointed trustee, dated January 21, 2002, the trustee has decided that Employers Mutual and the Associations cannot survive financially. According to the trustee's memo, the unpaid claims are well over 6 million dollars. A copy of the Trustee's two-page memo is enclosed. |
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| The Trustee gives an address on page two of his memo for the purpose of requesting a "Certificate of Creditable Coverage." The trustee states that this certificate can help you get replacement health coverage. |
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| This notice is provided in the interest of giving you and your employer this important information about your health care benefits provider. |
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| If you decide to change your coverage for health benefits, the North Carolina Department of Insurance strongly suggests that you consider obtaining health insurance coverage from a licensed insurer or licensed HMO. You may call the Consumer Services Division of the North Carolina Department of Insurance at 1-800-546-5664 to find out if the company you are considering is a licensed insurer or licensed HMO in this State. |
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