American Medical Security, Inc. Litigation

This action (the "Litigation") was filed on February 2, 2000 in the Circuit Court of the Fifteenth Judicial Circuit in and for Palm Beach County, Florida (the "Court"). By its Order dated October 16, 2000, the Court certified a class, consisting of all persons who were insured under a group health insurance policy number AB 2000 issued to the Prescription for Good Health Trust by United Wisconsin Life Insurance Company and administered by American Medical Security on September 25, 1998.

Pursuant to the Court's March 21, 2001 Order, a notice of the pendency of and certification of the Litigation as a class action was mailed to the members of the Class.

The liability phase of the litigation was tried to the Court (by agreement of the parties, without a jury) in March of 2002. In its April 24, 2002 Decision, the Court found in favor of the Plaintiffs and the members of the Class on the liability issue (the "Liability Decision").

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