REASONS TO WRITE IN
AND ASK TO STOP THE TRUST

    Capital Resource Issues

• The Trust will have no outside capital resource, ever

• All future capital needs will have to be met by the policyholders, most likely through rate increases

• CSHI’s proposed final capital contribution is $175 Million, less than the amount the company had contributed—in 2007 alone. 

• What happens if Conseco folds?

Premium Issues

• CSHI’s consultants project they will need 5 more rate increases, valued at $300M in today’s dollars.  That works out to between $5K and $10K for each policyholder still making premium payments.
• Two thirds of the block's married policyholders, who are now about 80, will have their premium waived for life when one or the other dies or is on claim.  This will diminish available funds in the block at a rate of 2:1.
• Living policyholders, not on claim or without a spouse on claim, will now shoulder pay huge premium increases that will force them to lapse coverage. 

• With rate increases compounding, there will be no alternative except for remaining policyholders to pay swift, sharp and financially devastating premium increases. 

• Those on a fixed income will not be able to afford the enormous increases and will lose their coverage, getting nothing from all the hard-earned dollars they have put into their premium payments over the past 10-20 plus years.  This is unfair and wrong.

Claim Issues

• Claim disputes rely on an outside source of capital for a balanced resolution.  Policyholders in this trust will be left suing each other or fighting over the scraps that remain until the Trust cannibalizes itself.

• The only entities which can assume legal responsibility for bad faith, emotional distress—meaning only the remaining policyholders can seek

• Seniors have held up their end of the bargain.  Most have been paying their premiums on time for 10-20 years.  These same seniors were sold peace of mind and financial security along with independent living in their golden years backed, by the billion dollar assets of Conseco, not a Trust to offload a failing block of bad business.

• Conseco may have oversold, under priced and bought up poorly underwritten blocks of Long-Term Care business, but senior policyholders are about to pay the ultimate price………….no more coverage.

• If Conseco paid too much for the blocks they purchased, it is time for accountability and responsibility.

• Seniors did not tell Conseco what they should buy, who they should insure, how much to charge, what features, advantages or benefits to include.

• If Wall Street isn’t pleased, if Conseco can’t change its overly generous policy language and it’s declining investment income, if Conseco can’t change the economy, can’t get the premium increases they have been seeking, it is time to truly honor what they sold.

• Seniors don’t want to hear Conseco’s Chief Executive suggest, “This has been a real burden for management.”  Seniors want the Company to fund what they bought and were sold.

• WHY? Weren’t senior policyholders warned, told or notified Conseco was seeking “strategic alternatives” that will dearly affect them?

• If the Trust fails, will these 142,000 plus seniors have to seek protection from the Pennsylvania Department of Insurance Fund?

• Seniors deserve to be heard and allowed to weigh on the coverage they have so richly paid for.