EXHIBIT 10(v)

BUSINESS ASSOCIATE AMENDMENT

     This Amendment is made to the AARP Health Insurance Agreement (“Agreement”)
between United HealthCare Insurance Company (“United”), AARP, AARP Services,
Inc. and the Trustees of the AARP Insurance Plan, as amended and assigned
(“Agreement”), for the purpose of outlining requirements relating to services
provided by AARP Services, Inc. (“Business Associate”) on behalf of United. This
Amendment shall apply only to the extent that in the performance of the
Agreement, Business Associate, or any of its employees, Business Associates or
agents, may obtain access to Protected Health Information or Personal
Information, as defined below. The terms and conditions of this Amendment
required by HIPAA and/or GLB are effective as of the compliance date applicable
to United, or this Agreement, under HIPAA and/or GLB, respectively.

1.   The Agreement is hereby amended by the addition of the following section:  
    Section 7.8. Protected Health and Personal Information       1. Business
Associate understands and acknowledges that it may receive from or create or
receive on behalf of United Protected Health Information, as defined under the
privacy regulations issued pursuant to the Health Insurance Portability and
Accountability Act of 1996 (“HIPAA”), and/or nonpublic personal information, as
defined under the Gramm-Leach-Bliley Act and implementing regulations (“GLB”),
during the performance of its obligations under this Agreement. The provisions
of this Agreement do not apply to (i) information provided to or created by AARP
Services, Inc. and/or AARP prior to the effective date of GLB, or
(ii) information provided to or created by AARP Services, Inc. and/or AARP
before the HIPAA effective date concerning individuals who had received the
United GLB Privacy Notice but did not exercise their rights to “opt out” from
information sharing.       2. Except as otherwise specified herein, Business
Associate may use or disclosure Protected Health Information received from or
created or received on behalf of United (“PHI”) and nonpublic personal
information received from or created or received on behalf of United (“Personal
Information”) to perform functions, activities, or services for, or on behalf
of, United as specified in this Agreement and Exhibit A (or as otherwise agreed
by the parties), provided that such use or disclosure would not violate the
HIPAA privacy regulations, GLB or other federal or state privacy laws applicable
to United, if done by United.       3. With regard to its use and/or disclosure
of PHI or Personal Information, Business Associate hereby agrees and represents
and warrants to United that Business Associate shall:

  (a)   not use or further disclose any PHI or Personal Information other than
as permitted by this Agreement or required by law.     (b)   at all times
maintain and use appropriate safeguards to prevent uses or disclosures of any
PHI or Personal Information other than as permitted by this Agreement or
required by law;     (c)   ensure that any subBusiness Associate or agent to
whom it provides any PHI or Personal Information agrees in writing to the same
conditions and restrictions that apply to Business Associate with regard to the
PHI or Personal Information, including, without limitation, all of the
requirements of this Section.

    4. With regard to its use and/or disclosure of PHI, Business Associate
hereby agrees and represents and warrants to United that Business Associate
shall:

  (a)   report promptly to United any use or disclosure of any PHI of which it
becomes aware that is not permitted by this Agreement;     (b)   mitigate, to
the extent practicable, any harmful effect that is known to Business Associate
of a use or disclosure of PHI by Business Associate in violation of the
requirements of this Agreement; in the time and manner designated by United,
make available PHI in a Designated Record Set, to United, or as directed by
United, to an individual, in order for United to respond to individuals’
requests for access to information about them in accordance with the HIPAA
privacy regulation;     (c)   in the time and manner designated by United, make
any amendments or corrections to the PHI in a Designated Record Set that United
directs in accordance with the HIPAA privacy regulation;     (d)   in the time
and manner designated by United, document such disclosures of PHI and
information related to such disclosures as would be required for United to
respond to a request by an individual for an accounting of disclosures of PHI in
accordance with the HIPAA privacy regulations;     (e)   in the time and manner
designated by United, make available to United, or as directed by United, to an
individual, the information documented in accordance with subsection (d) above,
to permit United to respond

BA Amendment (United is CE)

 

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      to a request by an individual for an accounting of disclosures, in
accordance with the HIPAA privacy regulations;     (f)   in the time and manner
designated by United or the Secretary of HHS, make its internal practices, books
and records relating to the use and disclosure of PHI available to the United
and to the Secretary of HHS for purposes of determining United’s compliance with
the HIPAA privacy regulations.

    5. Each term and condition of this section required by HIPAA and/or GLB
shall be effective on the compliance date applicable to United, or this
Agreement, under the HIPAA privacy regulation and/or GLB, respectively.       6.
Business Associate agrees that this Agreement may be terminated by United in
accordance with the written notice, breach and cure provisions in the Agreement
in the event that United determines that Business Associate has violated any
material term of this section.       7. Upon the termination of this Agreement
for any reason, Business Associate shall return to United or destroy all PHI
and/or Personal Information, and retain no copies in any form whatsoever. This
provision shall apply to PHI and/or Personal Information that is in the
possession of subBusiness Associates, vendors or agents of Business Associate.  
    8. Unless otherwise specified in this Agreement, all capitalized terms in
this section not otherwise defined have the meaning established for purposes of
Title 45 parts 160 and 164 of the United States Code of Federal Regulations, as
amended from time to time.       9. The Parties agree to take such action as is
necessary to amend this Agreement from time to time as is necessary for United
to comply with the requirements of HIPAA, the HIPAA privacy regulations, GLB and
other federal and state privacy and consumer rights laws and regulations
applicable to United. Business Associate agrees to cooperate with and assist
United in order for United to meet its obligations under applicable privacy laws
and regulations.       10. This section shall survive any termination of this
Agreement.       11. The terms and conditions of this section required by HIPAA
shall be construed in light of any applicable interpretation of and/or guidance
on the HIPAA privacy regulation issued by HHS from time to time. Any ambiguity
in this section shall be resolved in favor of a meaning that permits United to
comply with applicable laws and regulations.   2.   All other provisions of the
Agreement shall remain in full force and effect.

              United HealthCare Insurance Company   AARP Services, Inc.        
      Signature   /s/ DAVID P. INGRAHAM   Signature   /s/ DAWN M. SWEENEY

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              Title   SVP   Title   President

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              Date   4/11/03   Date   4-11-03

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BA Amendment (United is CE)

 

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EXHIBIT A
BUSINESS ASSOCIATE AMENDMENT

              Function   Process   Frequency   Required Data

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Royalty Verification   Verify member premium and provider royalty payments  
Monthly   Individual member names, demographic contact information, specific
product participation, enrollment/term dates, premium amounts by product, any
and all Insurance Trust activity related information               Customer
Service   Respond to member requests for issue or dispute resolution, maintain
ombudsmen services to help resolve claims, disputes and other issues with
service providers, responding to complaint correspondence regarding the service
providers   Daily   Individual member names, specific product participation,
enrollment/term dates, premium amounts by product, member age, Medicare status,
demographic contact information, claim payment history and status, reasons for
claim denial, explanations for benefit authorization, benefit amounts,
premium/EFT billing, account status, prescription purchase and pricing
information, status of prescription orders, prescription billing information,
status of accounts, copies of scripts as requested to verify incorrect orders.  
            Quality Assurance   Create and monitor performance and service
standards for HCO, monitor providers for compliance with agreed upon standards,
develop and complete ASI member satisfaction surveys. Review/approve strategic
operating and marketing plans, review and approve all marketing and website
copy. Audit and inspect management reports, complaints, finances and statistical
data of providers, perform internal audits of providers, review product
development, budgets and pricing by the providers, and provide general quality
control under the Agreement   Monthly   Claims inventory, claims received,
claims processed, claims pended, days to complete claim processing, enrollment
inventory, enrollments received, enrollments processed by product, numbers of
members transferred to UHC for claim issue resolution, timeliness of answering
and responding to these calls and member inquiries, numbers of pieces of
correspondence received, percent of correspondence resolved in 5 business days,
percent resolved in 10 business days, related outstanding issues; numbers of
underwriting appeals, percent resolved in 10 days and related outstanding
issues, all customer satisfaction surveys and results from each survey, all
marketing plans, operating plans, marketing copy, strategic plans, financial
reports and statistical data, product development, budgets and pricing
information, new product planning and any other related information.

 

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EIGHTH AMENDMENT TO THE AARP HEALTH INSURANCE AGREEMENT

     This Eighth Amendment to the AARP Health Insurance Agreement (this
“Amendment”), effective as of July 24, 2003 (the “Effective Date”), is made by
and between AARP Services, Inc., a Delaware corporation (“ASI”) and United
HealthCare Insurance Company, a Connecticut corporation (“United”). The parties
hereto shall collectively be referred to as the “Parties”.

RECITALS

     WHEREAS, the AARP, the Trustees of the AARP Insurance Plan, and United are
parties to a certain AARP Health Insurance Agreement dated as of February 26,
1997 (the “Original Agreement”).

     WHEREAS, by subsequent amendment and assignment on December 28, 1999, AARP,
AARP Trust and United agreed to the assignment to and assumption by ASI of
certain rights and obligations (the “Third Amendment”) and, further, United,
AARP and AARP Trust executed a Royalty Agreement dated December 28, 1999
granting United a license to the AARP Marks defined therein and the amended and
assigned agreement was made a part thereof.

     WHEREAS, in addition to the Third Amendment, six other amendments have been
made to the Original Agreement (collectively, the “Agreement”).

     WHEREAS, pursuant to Subsection 6.4.5, the funds in the SHIP Portfolio have
been invested in accordance with a written investment strategy (“AARP Investment
Policy”).

 

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     WHEREAS, the Parties desire to improve SHIP Portfolio performance through a
modification in risk tolerance and the elimination of the December 31, 2007
maturity date constraint.

     WHEREAS, pursuant to Subsection 6.4.5, United has proposed revisions to the
AARP Investment Policy that have been approved by AARP Trust and memorialized in
a letter from United to ASI dated July 24, 2003.

     WHEREAS, elimination of the December 31, 2007 maturity date constraint
necessitates a modification to the Agreement to effectuate this change and
mitigate United’s resulting risk of loss at the maturity date.

                  NOW, THEREFORE, the Parties agree as follows:

1.   Subsection 6.4.7 of the Agreement is amended by deleting the subsection in
its entirety and replacing it with the following:

  6.4.7. Investment Performance; Ownership. United does not guarantee the
preservation of the principal amount of the assets comprising the SHIP
Portfolio, and does not guarantee the achievement of any specific rate of return
on the assets comprising the SHIP Portfolio. United shall not impose any
investment liquidation charge in connection with the scheduled termination of
this Agreement, except as permitted under Section 10.4.3.8 hereof. The SHIP
Portfolio shall not constitute an asset of AARP or AARP Trust, nor shall AARP or
AARP Trust have any interest in the income derived therefrom.

2.   Subsection 10.4.3 of the Agreement is amended by the addition of new
subparagraph 10.4.3.8, to read as follows:

  10.4.3.8. Investments Maturing Beyond Termination Date. The investment
strategy described in Subsection 6.4.5 hereof, as approved by AARP Trust,
permits the SHIP Portfolio (as defined in Subsection 6.4.1 hereof) to include
investments that may have part or all of their principal amount outstanding
after the termination date set forth in Section 10.1 of this Agreement. In this
event, if this Agreement terminates on the date set forth in Section 10.1:

 

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  (a) any transfers made pursuant to Subsection 10.4.3 shall be adjusted for the
Portfolio Capital Gain/Loss in the manner described in Subparagraph 10.4.3.4
(including but not limited to the provision of Subparagraph 10.4.3.4 that
permits AARP to require an alternative method of transfer) and

  (b) the determination of the required RSF Balance pursuant to Subparagraph
10.4.3.7 shall be made prior to the adjustment for the Portfolio Capital
Gain/Loss, and this adjustment may serve to decrease the transferred RSF Balance
below the minimum level prescribed by Subparagraph 10.4.3.7.

3.   Except as amended hereby, all other terms and conditions of the Agreement
shall remain in full force and effect.

            IN WITNESS WHEREOF, the Parties have executed this Eighth Amendment
as of the date and year first above written.

      /s/ DAWN M. SWEENEY   /s/ DAVID P. INGRAHAM

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AARP Services, Inc.   United HealthCare Insurance     Company

 

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NINTH AMENDMENT TO THE AARP HEALTH INSURANCE AGREEMENT:
50-64 PLAN

     This Ninth Amendment to the AARP Health Insurance Agreement (“Ninth
Amendment” or “Amendment”), effective as of October 1, 2003 (the “Effective
Date”), is made by and between AARP Services, Inc., a Delaware corporation
(“ASI”) and United HealthCare Insurance Company, a Connecticut corporation
(“United”). The parties hereto shall collectively be referred to as the
“Parties”.

RECITALS

     WHEREAS, AARP, the Trustees of the AARP Insurance Plan (“Trustees”), and
United are parties to a certain AARP Health Insurance Agreement dated as of
February 26, 1997 (the “Original Agreement”).

     WHEREAS, by subsequent amendment and assignment on December 28, 1999, AARP,
AARP Trust and United agreed to the assignment to and assumption by ASI of
certain rights and obligations (the “Third Amendment”).

     WHEREAS, various other amendments have been made to the Original Agreement
(collectively, the “Agreement”).

     WHEREAS, pursuant to subsections 3.2.3 and 3.2.4 of the Agreement, the
Parties agreed to undertake product development activities with respect to
additional products and services to enhance the value of the SHIP to AARP
members and differentiate the SHIP from other insurance programs.

              ***   Represents text deleted pursuant to a confidentiality
treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

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     WHEREAS, the Parties have worked together to design a program offering
comprehensive insurance products for AARP members age 50 to 64 (“50-64 Plan”, as
defined below).

     WHEREAS, the Trustees have approved the 50-64 Plan and authorized the
Parties to implement it on a pilot basis, with a review to occur during the
Pilot Period, as defined below, to determine whether the 50-64 Plan will be
offered beyond the Pilot Period.

     WHEREAS, subsection 3.2.4 of the Agreement requires the terms and
conditions associated with the offering of any new products to be documented in
amendments or exhibits to the Agreement.

     NOW, THEREFORE, the Parties agree as follows:

           A.   Article 2 of the Agreement is amended by amending sections 2.56,
2.86, 2.118 and 2.123 to read as follows:           “2.56. Policy Year means
January 1 through December 31 inclusive. For the 50-64 Plan, the first Policy
Year is calendar year 2004. Any 50-64 Plan sales effective as of the end of 2003
and their experience will be included as part of the 2004 Policy Year.”

          “2.86. SHIP Plan means any health insurance plan, including any
Medicare Select plan and any 50-64 Plan, underwritten by United pursuant to this
Agreement, including without limitation any such plan described by any master
group insurance policy issued to AARP Trust by United (or its affiliates) and
insured or reinsured by United (or its affiliates) at any time during the term
of this Agreement.”

          “2.118. Network Provider means any health care provider in the United
network that has agreed to participate in (a) a Medicare Select plan made
available under the SHIP, other than a Network Pharmacy, Network Pharmaceutical
Manufacturer, or Network Pharmacy Benefit Manager or (b) the 50-64 Plan.”

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treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

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          “2.123. SHIP Pharmacy Plan means a Medicare Supplement,
pre-standardized Medicare Supplement or Medicare Select policy or certificate,
or a 50-64 Plan, offered under the SHIP which provides an outpatient
prescription drug benefit.”

           B.   Article 2 of the Agreement is further amended by the addition of
the following sections 2.129 through 2.134:           “2.129. 50-64 Member
Contributions for a Policy Year means the sum of the monthly amounts earned for
that Policy Year from each insured enrolled in the 50-64 Plan during that Policy
Year.           2.130. 50-64 Plan means the preferred provider organization
(PPO) insurance products, initially consisting of comprehensive PPO and
catastrophic PPO products, that have been developed for AARP members age 50 to
64. These products include the use of Network Providers and coverage for
services received from out-of-network providers. These products are further
described in Exhibit 2.130, which exhibit may be modified from time to time in
writing upon mutual agreement.           2.131. 50-64 Subfund has the meaning
set forth in Section 8.2.1 hereof.           2.132. 50-64 Target Benefit Ratio
means the quotient obtained by dividing the target Incurred Claims for the 50-64
Plan by the target 50-64 Member Contributions for a Policy Year.          
2.133. Marketing Expenses includes those expenses incurred directly for
marketing such as postage, advertising, creative development, production,
printing, agency fees, model and segmentation development, and campaign
implementation costs, exclusive of corporate overhead charges.           2.134.
Pilot Period means January 1, 2004 until June 30, 2005. The Pilot Period may be
changed upon mutual written agreement. Any 50-64 Plan sales effective as of the
end of 2003 and their experience will be included as part of the Pilot Period.”
           C.   Section 3.2.2 of the Agreement is amended by the addition of new
subparagraph (j) to read as follows:           "(j). United shall develop and
make available to AARP members the 50-64 Plan in such sites and within such
timeframes as agreed to by the Parties. United shall make available a network of
Network Providers and manage the Network Provider relationships for the 50-64
Plan.

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treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

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          Additionally, the Parties agree to the following:           (1) Pilot
Period Evaluation. The Parties shall conduct a Pilot Period evaluation of the
50-64 Plan to be completed by June 30, 2005. The evaluation will measure the
following criteria: (a) the underwriting acceptance rate calculated by dividing
the number of accepted applications by the total number of applications received
net of withdrawals, (b) the cumulative number of paid sales, (c) lapse rate, (d)
50-64 benefit ratio (loss ratio), (e) the marketing cost per paid response, and
(f) such other criteria that may be mutually agreed upon. The benchmarks for
conducting the evaluation of criteria (a) through (e) above are set forth in
Exhibit 3.2.2(j)(1). The Parties agree that the results of this evaluation may
necessitate changes to the program or necessitate the discontinuance of new
50-64 Plan sales. Any changes to the program or the decision to discontinue new
50-64 Plan sales shall be made upon mutual written agreement, except as provided
in Subparagraph 3.3.7.1 below. The Parties further agree to conduct preliminary
evaluations every six (6) months during the Pilot Period that measure the above
criteria to the extent feasible and meaningful.       (2) Reports. United shall
provide reports to ASI, at intervals and in a format and medium to be mutually
agreed to by the Parties, to monitor and evaluate program performance. The types
of reports and frequency of distribution to ASI are set forth in
Exhibit 3.2.2(j)(1).           (3) Decisions. Except as provided in
Sections 3.2.2(j)(1) and 3.3.7.1, ASI and the Trustees shall have the
decision-making authority during the Pilot Period in recognition of the greater
risk borne by the 50-64 Subfund. After the first twelve (12) months of the Pilot
Period, the Parties shall negotiate and agree on the terms relating to decision
making authority that will apply after the Pilot Period, taking into account
such factors as claims risk, brand risk, marketing risk and other relevant risk
factors identified by the Parties. Notwithstanding the foregoing, United shall
retain decision-making authority for all activities required by law and this
Agreement to be made by the insurer and claim and service administrator, such as
decisions relating to claim adjudication (e.g., benefit payments and denials).  
        (4) Pharmacy benefit. Determination of the pharmacy benefit design for
the 50-64 Plan is the responsibility of United and ASI. United shall utilize its
pharmacy management programs in the administration of the pharmacy benefit for
the 50-64 Plan for the Pilot Period, including its Retail Pharmacy Network, Drug
List (Formulary), Pharmacy and Therapeutics Committee and Drug Utilization
programs. United contracts with a pharmacy benefit management company (“PBM”)
for the purpose of administering these management programs. However, subject to
input by

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treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

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          ASI, United retains responsibility and control of all pharmacy
management program decisions. The contracted PBM shall not have the authority to
implement clinical or benefit programs without United’s written consent.        
  (5) Performance Standards. United shall meet or exceed the performance
standards and measurements set forth in Exhibit 3.2.2(j)(5) in performing its
obligations relating to administration of the 50-64 Plan. Exhibit 3.2.2(j)(5)
also lists penalties, in percentage terms, that will be applied in the event
that United fails to meet a 50-64 Plan performance standard; such penalties are
a percentage of 50-64 Member Contributions for the applicable Policy Year. In
addition, United will adhere to AARP Health Care Options’ brand guidelines and
creative development process, which includes 50-64 Plan marketing budget
approval.”         D. Section 3.3 of the Agreement is amended by the addition of
new subparagraph 3.3.7.1 to read as follows:           “3.3.7.1. The provisions
of Sections 3.3.7 and 3.3.8 shall apply with respect to the determination of
50-64 Member Contribution rates; provided however that, during the Pilot Period,
United may propose revisions to 50-64 rates at appropriate times for review and
approval by the Trustees. Either party may decide to cease new 50-64 Plan sales
at any time.”         E. Section 3.7 of the Agreement is amended by the addition
of new subsection 3.7.1 to read as follows:           “3.7.1. The provisions of
Section 3.7 shall not apply to the 50-64 Plan.”         F. Section 6.1 of the
Agreement is amended by the addition of new subsection 6.1.1 to read as follows:
          “6.1.1. AARP Royalty for 50-64 Plan. AARP shall be entitled to receive
a royalty for AARP’s endorsement of the 50-64 Plan and the license to use the
AARP Marks in connection therewith. This royalty shall be *** of 50-64 Member
Contributions initially and is subject to annual review and revision.”        
G. Section 6.2 of the Agreement is amended by the addition of new subsection
6.2.6 to read as follows:     “6.2.6. Administration Charges for 50-64 Plan
Services; Expenses.           (a) United’s Administrative Services Fee for 50-64
Plan Services. United’s Administrative Services Fee for Services provided for
the 50-64

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treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

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          Plan shall be a specified percentage of 50-64 Member Contributions.
This percentage shall be *** initially and is subject to annual review and
revision upon mutual written agreement. Postage costs for activities other than
marketing shall be included as a component of the Administrative Service Fee for
the 50-64 Plan rather than included as Pass-Through Expenses. Marketing postage
costs shall be included as part of Marketing Expenses under Subparagraph
6.2.6(c) below.           (b) Contingency Margin. Pricing for the 50-64 Plan
shall include a contingency margin to cover higher than expected costs for
benefits and expenses as mutually agreed by the Parties (“Contingency Margin”).
The Contingency Margin shall be *** of 50-64 Member Contributions for the Pilot
Period.           (c) Marketing Expenses. Pricing for the 50-64 Plan shall
include provision for expected Marketing Expenses. Actual Marketing Expenses
shall be charged to the 50-64 Subfund but treated like a loan and repaid with
interest on a monthly basis to the 50-64 Subfund as the 50-64 Member
Contributions are earned. During the first Policy Year, the repayment with
interest will equal *** of 50-64 Member Contributions. For subsequent Policy
Years, the provision in pricing for new Marketing Expenses and the percentage of
actual 50-64 Member Contributions that is applied to repay the 50-64 Subfund
with interest for Marketing Expenses shall be subject to review and approval by
the Trustees.           (d) Charges for Claims and Marketing Risks. The 50-64
Subfund shall receive *** of the 50-64 Member Contributions for claims risk and
*** of the 50-64 Member Contributions for marketing risk associated with the
50-64 Plan.           (e) Tax-Timing Expenses, premium tax, AARP royalty, United
compensation, Contingency Margin, Marketing Expenses and investment income for
the 50-64 Plan shall be paid through a retrospective experience rating charge
(as described in Section 8.3 hereof). Attached as Exhibit 6.2.6(e) is a pro
forma expense summary for the 50-64 Plan which itemizes the expected expenses
(on a present value basis) as of the Effective Date.”         H. Section 6.3 of
the Agreement is amended by the addition of new subsection 6.3.4 to read as
follows:           “6.3.4. United’s Risk and Profit Charges for 50-64 Plan. The
Parties agree that the first paragraph of Section 6.3 and Subsections 6.3.1 and
6.3.2 shall not apply to the 50-64 Plan. Instead, United’s risk and profit
compensation for assuming the risk associated with the 50-64 Plan shall

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treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

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          be the sum of the following components:           (a) Base risk and
profit charge: *** of 50-64 Member Contributions;           (b) United charge
for claims risk: *** of 50-64 Member Contributions; and           (c) Risk
sharing of benefit losses and gains: as set forth in Section 6.12.”         I.
Article 6 of the Agreement is amended by the addition of the following new
section 6.12 to read as follows:           “6.12. Risk Sharing of Benefit Losses
and Gains for the 50-64 Plan.           6.12.1. 50-64 Target Benefit Ratio.
Initially, the 50-64 Target Benefit Ratio shall be *** of 50-64 Member
Contributions and is illustrated in Exhibit 6.2.6(e). During the Pilot Period,
United will recommend appropriate changes to the 50-64 Target Benefit Ratio for
the next Policy Year for ASI and Trustee approval.           6.12.2. Stop-Loss
Arrangement; Loss Corridor Limit. United shall reimburse the 50-64 Subfund for
50-64 Plan benefit costs above the Loss Corridor Limit in any Policy Year in
which the Loss Corridor Limit is exceeded. The Loss Corridor Limit refers to
actual 50-64 Plan benefit costs above the 50-64 Target Benefit Ratio in a Policy
Year, expressed as a percentage as set forth below:           (a) First Policy
Year – The Loss Corridor Limit is actual 50-64 Plan benefit costs that are ***
above the 50-64 Target Benefit Ratio;           (b) Second Policy Year – The
Loss Corridor Limit is actual 50-64 Plan benefit costs that are *** above the
50-64 Target Benefit Ratio; and           (c) Third and Subsequent Policy Years
– The Loss Corridor Limit is actual 50-64 Plan benefit costs that are *** above
the 50-64 Target Benefit Ratio in the applicable Policy Year.           6.12.3.
Sharing of Benefit Gains; Gains Corridor Limit. United shall receive
gain-sharing compensation from the 50-64 Subfund for 50-64 Plan benefit costs
below the Gains Corridor Limit in any Policy Year. The Gains Corridor Limit
refers to actual 50-64 Plan benefit costs below the 50-64 Target Benefit Ratio
in a Policy Year, expressed as a percentage as set forth below:           (a)
First Policy Year – The Gains Corridor Limit is actual 50-64 Plan benefit costs
that are *** below the 50-64 Target Benefit Ratio;

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treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

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          (b) Second Policy Year – The Gains Corridor Limit is actual 50-64 Plan
benefit costs that are *** below the 50-64 Target Benefit Ratio; and          
(c) Third and Subsequent Policy Years – The Gains Corridor Limit is actual 50-64
Plan benefit costs that are *** below the 50-64 Target Benefit Ratio in the
applicable Policy Year.           6.12.4. Attached as Exhibit 6.12.4 is a
document that illustrates how risk sharing of benefit losses and gains will
occur as described in this Section 6.12.”         J. Section 8.2 of the
Agreement is amended by the addition of the following new subsection 8.2.1 to
read as follows:           “8.2.1. 50-64 Subfund. As of the Effective Date of
this Ninth Amendment, the 50-64 Subfund (“50-64 Subfund” or “50-64 SF”) shall
consist of a *** initial allocation of funds in the RSF. The 50-64 Subfund shall
increase or decrease over time based on the financial performance of the 50-64
Plan.”         K. The parties shall negotiate in good faith twelve months prior
to expiration of the Pilot Period to reach agreement on new terms or a new
agreement to be effective upon completion of the Pilot Period, if the parties
decide to offer the 50-64 Plan beyond the Pilot Period.

       IN WITNESS WHEREOF, the Parties have executed this Amendment as of the
date and year first above written.

      /s/ DAWN M. SWEENEY   /s/ DAVID P. INGRAHAM

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

AARP Services, Inc.   United HealthCare Insurance     Company

              ***   Represents text deleted pursuant to a confidentiality
treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

8 

--------------------------------------------------------------------------------

 

EXHIBIT 2.130

50-64 PLAN DESCRIPTION

Background

The 50-64 Plan has been designed to bring to the market for AARP Members a
program tailored to the needs of the 50-64 population,1 specifically in the
areas of broad coverage, innovative intervention-oriented care and disease
management and affordability relative to the level of benefit coverage.

Initially, two PPO products (one comprehensive and one catastrophic) designed to
address the diverse needs of the target population will be offered. In the first
phase, these products will be available in a select number of pilot states, with
plans to expand to additional markets.

Comprehensive PPO Product

This product provides the insured member with benefits both in and out of
network within agreed price points while maintaining an appropriate level of
cost sharing to promote responsible usage of the services. Expenses for the
insured member and the program are reduced when services are rendered through a
Network Provider. In-network benefits are richer in order to encourage the
insured member to use a Network Provider. The overall quality of care is
enhanced through United’s Care Coordination program which is available in and
out of network. In-network benefits have caps on the amount the member will
share in the cost of health care while out-of-network utilization has no caps on
the member’s out-of-pocket expenditures. The benefit design for this product is
further described below.

Catastrophic PPO Product

This product is designed to provide benefits for the high cost items that create
the biggest burden for members. It focuses on hospital and surgical benefits as
well as catastrophic illnesses. This product lowers premium costs by eliminating
benefits for lower-cost services. Therefore, unlike the comprehensive product,
this product does not provide coverage for preventive care, physician’s office
visits, behavioral health, most forms of diagnostic testing, and other services
listed below in the chart. This product provides

1 Although the 50-64 Plan is designed for the 50-64 AARP membership, spouses of
AARP members, including spouses under the age of 50, are also eligible to
participate. Additionally, state and federal laws may require coverage to be
continued for insured members once they turn 65; the 50-64 Plans will conform to
all applicable state and federal requirements.

              ***   Represents text deleted pursuant to a confidentiality
treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

9

--------------------------------------------------------------------------------

 

benefits for services that are potentially more catastrophic to the insured
member financially, such as inpatient hospital stays and expensive surgical
procedures. The benefit design for this product is further described below.

Value-added Services

The following services shall be provided to members who participate in the 50-64
Plan:

•   AARP Nurse HealthLine – This service provides toll-free 24 hour, 365-day
access to registered nurses who provide health information, discuss treatment
options, and guide individuals to an appropriate level of care. AARP Nurse
HealthLine gives individuals information that helps them make educated decisions
about their personal health and use of medical resources. •   Web-based tools –
Access to myuhc.com and online pharmacy web site. To help members find
prescription drug information, the Online Pharmacy provides information on safe
drug use, email prescription reminders, drug cost comparisons across retail and
mail order channels, and other information. The following references on
myuhc.com shall be suppressed:     (1) The reference to alternative medicine
discounted providers shall be suppressed by removing United Naturally from the
Alternative and Complementary medicine section of myuhc.com under health topics
and tools; and     (2) The reference to OTC shall be suppressed by removing
Family meds from the OTC/Other products section of myuhc.com under
prescriptions. •   Care Management – This service provides care management
services to members at risk or affected by chronic health conditions. Care
coordination offers proactive programs to help individuals manage their
condition or disease and improve their health status. Community partners offer
services to high-risk members. •   Transplant Benefit Management and Cancer
Benefit Management – This service provides individuals with case management
support to assist with counseling, physician interaction and referrals to
credentialed transplant or cancer resources. •   Behavioral Health Management –
This feature provides access to mental health and substance abuse programs to
help people live and work well. A network of professionals is available for
direct access to the most appropriate care.

              ***   Represents text deleted pursuant to a confidentiality
treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

10

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50-64 Plan Design

                                                      Comprehensive Plan

--------------------------------------------------------------------------------

  Catastrophic Plan

--------------------------------------------------------------------------------

Core Plan Design

--------------------------------------------------------------------------------

      In Network

--------------------------------------------------------------------------------

  Out-of-Network

--------------------------------------------------------------------------------

  In Network

--------------------------------------------------------------------------------

  Out-of-Network

--------------------------------------------------------------------------------

Annual Deductible  
 
  $ 1,000     $ 2,000     $ 2,000     $ 3,000                                  
          Annual out-of-pocket  
 
  $2,500 combined,
then 100%   $2,500 combined,
then 80%   $2,500 combined,
then 100%   $2,500 combined,
then 80% Maximum (Coinsurance  
 
                        only)                                           Lifetime
Maximum  
 
  $5 Million   $5 Million                                           Benefits    
                                      Inpatient Hospital  
 
                  80% after   60% after deductible Outpatient Surgery  
 
                  deductible                                                  
Office Visit  
 
                  Not Covered Primary or Specialist  
 
                           
 
  80% after deductible   60% after deductible                                  
                        Preventive Care                                        
  Radiology and Lab  
 
                  80% after                
 
                  deductible   60% after deductible        
 
                  (Outpatient surgery   (Outpatient surgery or        
 
                  or Inpatient only)   Inpatient only)                          
                Prescription Generic  
 
  $10 Copay/   50% of Network   $10 Copay after   50% after $5K        
 
  (Unlimited)   Amount   $5K deductible   deductible        
 
          (Unlimited)   (Unlimited)   (Unlimited)                              
            Brand  
 
  50% Coinsurance           50% after $5K   50% after $5K        
 
  (Unlimited)   50% of Network   deductible   deductible        
 
          Amount   (Unlimited)   (Unlimited)        
 
          (Unlimited)                                                          
Behavioral Health/ Substance Abuse  
 
  80% after deductible   60% after deductible   Not Covered                    
                      Emergency Care  
 
  80% after deductible   80% after deductible   80% after   Same as network    
   
 
          (in network   deductible   (in network deductible)        
 
          deductible)                

             
***
  Represents text deleted pursuant to a confidentiality treatment request filed
with the Securities and Exchange Commission pursuant to Rule 24b-2 under the
Securities Exchange Act of 1934, as amended.     11  

--------------------------------------------------------------------------------

 

                                                      Comprehensive Plan

--------------------------------------------------------------------------------

  Catastrophic Plan

--------------------------------------------------------------------------------

Core Plan Design

--------------------------------------------------------------------------------

      In Network

--------------------------------------------------------------------------------

  Out-of-Network

--------------------------------------------------------------------------------

  In Network

--------------------------------------------------------------------------------

  Out-of-Network

--------------------------------------------------------------------------------

Skilled Nursing Facility / Inpatient Rehabilitation  
 
  80% after deductible (60 days combined   60% after deductible (60 days
combined   80% after deductible (60 days combined   60% after deductible (60
days combined Facility Service  
 
  calendar year max)   calendar year max)   calendar year max)   calendar year
max)    
 
                       
 
                                   
 
                            Durable Medical  
 
  80% after deductible   60% after deductible   80% after   60% after deductible
Equipment  
 
  $2,500 combined   $2,500 combined   deductible   $2,500 combined    
 
  calendar year max   calendar year max   $2,500 combined   calendar year max
only        
 
                  calendar year max   for Covered Health        
 
                  only for Covered   Services ordered at time        
 
                  Health Services   of treatment in hospital        
 
                  ordered at time of                
 
                  treatment in                
 
                  hospital                                                  
Home Health  
 
  80% after deductible   60% after deductible                        
 
  (60 visit combined max)   (60 visit combined   Not Covered        
 
          max)                                                           IV
Therapy  
 
  80% after deductible   60% after deductible   80% after   60% after deductible
       
 
                  deductible   (Covered Health        
 
                  (Covered Health   Service)        
 
                  Service)                                              
Ambulance –  
 
  80% after deductible   Same as network   80% after deductible   Same as
network Emergency Only                                           Dental Services
–  
 
  80% after deductible   Same as network   80% after   Same as network Accident
Only  
 
                  deductible                                                  
Hospice  
 
  80% after deductible   60% after deductible   80% after   60% after deductible
       
 
  360 day max           deductible                
 
                  360 day max                                                  
Prosthetic Devices  
 
  80% after deductible/5k   60% after   80% after   60% after deductible/5k    
   
 
  combined calendar year   deductible/5k   deductible/5k   combined calendar
year        
 
  max   combined calendar   combined calendar   max        
 
          year max   year max                                                  
Reconstructive  
 
  80% after deductible   60% after deductible   80% after deductible   60% after
deductible Procedures (non-cosmetic)                                          
Rehabilitation Services  
 
  80% after deductible; 20   60% after deductible;   Not Covered        
 
  visits of each PT, OT, ST   20 visits each of PT,                        
 
  allowed Cardiac Rehab – 36   OT, ST allowed
Cardiac Rehab – 36                        
 
  visits; no chiropractic   visits; no chiropractic                        
 
                                                          Transplantation  
 
  80% after deductible   Non-network not   80% after   Non-network not        
 
          available (unless   deductible   available (unless Services  
 
          mandated by state)           mandated by state)                      
                    Urgent Care Services  
 
  80% after deductible   60% after deductible   Not Covered

             
***
  Represents text deleted pursuant to a confidentiality treatment request filed
with the Securities and Exchange Commission pursuant to Rule 24b-2 under the
Securities Exchange Act of 1934, as amended.     12  

--------------------------------------------------------------------------------

 

                                                      Comprehensive Plan

--------------------------------------------------------------------------------

  Catastrophic Plan

--------------------------------------------------------------------------------

Core Plan Design

--------------------------------------------------------------------------------

      In Network

--------------------------------------------------------------------------------

  Out-of-Network

--------------------------------------------------------------------------------

  In Network

--------------------------------------------------------------------------------

  Out-of-Network

--------------------------------------------------------------------------------

Health & Well Being Services - Behavioral Health  
 
  Yes   No Mgmt - NurseLine  
 
  Yes   Yes - Care Management  
 
  Yes   Yes - Transplant &  
 
  Yes   Yes Cancer Benefit Management

             
***
  Represents text deleted pursuant to a confidentiality treatment request filed
with the Securities and Exchange Commission pursuant to Rule 24b-2 under the
Securities Exchange Act of 1934, as amended.     13  

--------------------------------------------------------------------------------

 

EXHIBIT 3.2.2(j)(1)

PILOT EVALUATION BENCHMARKS

                     
Criteria  
0 – 6 Months   7 – 12
Months   13 – 18
Months  
Evaluation  
Comments

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Cumulative Sales   ***   ***   ***   Evaluate by pilot market segment  
• Pilot product in approved states where deemed competitive
                      Cost Per

Paid Response   ***   ***   ***   Evaluate by Pilot Market state

- Establish target by market state

- Actual marketing expenditures by state
 
• Higher cost per paid response is tied to lower sales

• Target varies based on average level of premium collected for each new sale.
Factors influencing this are:

    • Plan Mix between comprehensive and catastrophic

    • Average duration of business

    • Average age of new sales
                      50-64
Incurred
Benefit Ratio   ***   ***   ***   Evaluate by:

• Pilot market segment

• Calendar duration
 
• 50-64 Target Benefit Ratio is *** including active life reserves.

• Target will vary by state due to state specific premium tax.

• Review by ratio and time period
                      Lapse Rates   ***   ***   ***   Evaluate:

• Average length of policy

• Average policy    

              ***   Represents text deleted pursuant to a confidentiality
treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

14

--------------------------------------------------------------------------------

 

                     
Criteria  
0 – 6 Months   7 – 12
Months   13 – 18
Months  
Evaluation  
Comments

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

    ***   ***   ***  
   duration by issue year, service area, and in aggregate

• Number lapsing prior to a rate change

• Track terminations monthly

• Track Free Looks

• Conduct a lapser report at quarterly intervals
  An abbreviated lapser report will be done at each time interval, with a full
report after 12 months
                      Underwriting
(Distribution
of
Applicants)   • Level 1: ***

• Level 2: ***

• Level 3: ***

• Denied: ***   Level 1: ***

Level 2: ***

Level 3: ***

Denied: ***   Level 1: ***

Level 2: ***

Level 3: ***

Denied: ***   Evaluate level distributions quarterly by:

• Age category

• Pilot market & age

Cumulatively over the time periods

Evaluate by each product (comprehensive and catastrophic) and the total (both
products combined).  
• The distribution will be impacted by the level of “self underwriting” by the
applicants (i.e., if applicants know they will not pass underwriting, they will
not apply).

• The key goal for the underwriting is to increase accessibility while
protecting the program
                      50-64
Subfund (SF)
Impact               Track the following items across each quarter (3 month time
period):

• Beginning and ending period SF balances

• Member contributions received

• Marketing dollars spent
   

              ***   Represents text deleted pursuant to a confidentiality
treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.              
      15  

--------------------------------------------------------------------------------

 

                     
Criteria  
0 – 6 Months   7 – 12
Months   13 – 18
Months  
Evaluation  
Comments

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

               
• Repayment of Marketing Expenses

• Claim experience

• Any risk sharing of benefit gains/losses

• Contingencies (*** contingency margin was included in the premium as a cushion
for claims and expenses. For the Pilot Period, this will be paid to the SF.)

• Claims Risk Provision (*** of premium that will be paid to the SF for taking
claims risk)

• Marketing Risk Provision (*** of premium that will be paid to the SF for
taking marketing risk)

• Other expenses (includes administration, premium tax, royalty, risk/profit,
investment income)
   

Note: Except for the 50-64 Subfund Impact, information will be tracked and
reported separately for each product (comprehensive and catastrophic) and in
total (both products combined).

Report Chart

                                          Report   Monthly   Quarterly  
Semiannually   Annually   End of Pilot

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Enrollment & Underwriting Statistics
    X       X       X       X       X  
Cumulative Sales
    X       X       X       X       X  
Active Insureds
    X       X       X       X       X  
Cost Per Paid Response
            X       X       X       X  
Lapser Report
            X       X       X       X  

              ***   Represents text deleted pursuant to a confidentiality
treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

16

--------------------------------------------------------------------------------

 

                                          Report   Monthly   Quarterly  
Semiannually   Annually   End of Pilot

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

Incurred Benefit Ratio
            X       X       X       X  
50-64 Subfund Report
            X       X       X       X  

              ***   Represents text deleted pursuant to a confidentiality
treatment request filed with the Securities and Exchange Commission pursuant to
Rule 24b-2 under the Securities Exchange Act of 1934, as amended.        

17

--------------------------------------------------------------------------------

 

EXHIBIT 3.2.2(j)(5)

                              Penalty (Percent of     50-64 Plan   50-64 Plan
Functions/Services

--------------------------------------------------------------------------------

  Service Standard

--------------------------------------------------------------------------------

  Contributions)

--------------------------------------------------------------------------------

Claim Member Services Functions
               
Speed to Answer Calls
               
n within 20 seconds
    80 %     ***  
Call Resolution
               
n within first day
    75 %     ***  
n within 72 hours
    98 %     ***  
Correspondence
               
n within 5 business days
    90 %     ***  
n within 10 business days
    98 %     ***  
Underwriting and Issue Functions
               
Appeals
               
n within 10 business days
    98 %     ***  
Claims Processing Functions
               
Claim Turnaround Time
               
n within 10 business days
    95 %     ***  
Payment Accuracy
    95 %     ***  
Enrollments
               
Enrollment Turnaround Time
               
n within 10 business days
    90 %     ***  
Enrollment Accuracy
    97.5 %     ***  
Billing and Collections
               
Payment Application Turnaround
               
n within 3 business days
    95 %     ***  
Payment Application Accuracy
    98 %     ***  

***   Represents text deleted pursuant to a confidentiality treatment request
filed with the Securities and Exchange Commission pursuant to Rule 24b-2 under
the Securities Exchange Act of 1934, as amended.

18

--------------------------------------------------------------------------------

 

Fulfillment

              Fulfillment Turnaround Time                       §   within 5
business days   90%   ***

Customer Satisfaction —
First Quarter Results

          Claim Service   Included in larger SHIP sample ***  

Note: Penalties will be calculated based on 50-64 Member Contributions, and
shall be as defined and agreed in Exhibit 3.2.5 as revised effective March 31,
2003.

***   Represents text deleted pursuant to a confidentiality treatment request
filed with the Securities and Exchange Commission pursuant to Rule 24b-2 under
the Securities Exchange Act of 1934, as amended.

19

--------------------------------------------------------------------------------

 

EXHIBIT 6.2.6(e)

50-64 PLAN
PRO FORMA EXPENSE SUMMARY

              Percent of Premium

--------------------------------------------------------------------------------

Marketing Expenses
    ***  
Royalty
    ***  
United Base Risk and Profit
    ***  
Claim Administration
***      
Enrollments, Underwriting and Other Administration
***      
Subtotal
    ***  
Premium Tax
    ***  
Tax Timing including DAC tax
    ***  
United Charge for Claims Risk
    ***  
50-64 SF Claims Risk Provision
      ***
50-64 SF Marketing Risk Provision
    ***  
Contingencies
    ***  
Investment Income
    ***  
Total Expense Ratio
    ***  
Target Benefit Ratio
    ***  

All items are shown on a present value basis as a level percent of premiums over
ten years. Percentages for premium tax, tax timing and investment income may
vary based on actual expenses.

             
***
  Represents text deleted pursuant to a confidentiality treatment request filed
with the Securities and Exchange Commission pursuant to Rule 24b-2 under the
Securities Exchange Act of 1934, as amended.        

20

--------------------------------------------------------------------------------

 

EXHIBIT 6.12.4

RISK-SHARING OF BENEFIT LOSSES AND GAINS:

ILLUSTRATIONS

Risk/Gain sharing is based on actual benefit costs that are higher (+) or lower
(-) than expected benefit costs. The risk/gain sharing corridor is *** first
year, *** second year and *** in the third year. By capping the 50-64 Subfund
risk to a fixed percentage of expected benefit costs each year, the risk of
catastrophic claims is shifted to United, especially during the pilot phase when
revenue is expected to be relatively low and random shock claims could adversely
impact the program. Illustrations of risk sharing of benefit losses and sharing
of benefit gains are shown below:

A. Risk Sharing of Benefit Losses

•   50-64 SF share of losses capped at corridor limits

•   United’s share of losses is the remainder (catastrophic risk)

Example A1 – Benefits *** Higher Than Expected

                              Year 1

--------------------------------------------------------------------------------

  Year 2

--------------------------------------------------------------------------------

  Year 3

--------------------------------------------------------------------------------

A. Expected Benefits
    * **     * **     * **
B. Actual Benefits
    * **     * **     * **
C. Total Loss = B-A
    * **     * **     * **
D. 50-64 SF Share of Loss
    * **     * **     * **
E. United Share of Loss
    * **     * **     * **

Example A2 – Benefits *** Higher than Expected

                              Year 1

--------------------------------------------------------------------------------

  Year 2

--------------------------------------------------------------------------------

  Year 3

--------------------------------------------------------------------------------

A. Expected Benefits
    * **     * **     * **
B. Actual Benefits
    * **     * **     * **
C. Total Loss = B-A
    * **     * **     * **
D. 50-64 SF Share of Loss
    * **     * **     * **
E. United Share of Loss
    * **     * **     * **

***   Represents text deleted pursuant to a confidentially treatment request
filed with the Securities and Exchange Commission pursuant to Rule 24b-2 under
the Securities Exchange Act of 1934, as amended.

21

--------------------------------------------------------------------------------

 

  B.   Sharing of Benefit Gains

  •   50-64 SF share of gains capped at corridor limits     •   United’s share
of benefit gains is the excess outside of the corridor

      Example B1 – Benefits *** Lower Than Expected

                  Year 1

--------------------------------------------------------------------------------

  Year 2

--------------------------------------------------------------------------------

  Year 3

--------------------------------------------------------------------------------

A. Expected Benefits
  ***   ***   ***
B. Actual Benefits
  ***   ***   ***
C. Total Gain = B-A
  ***   ***   ***
D. 50-64 SF Share of Gain
  ***   ***   ***
E. United Share = C-D
  ***   ***   ***

      Example B2 – Benefits *** Lower Than Expected

                  Year 1

--------------------------------------------------------------------------------

  Year 2

--------------------------------------------------------------------------------

  Year 3

--------------------------------------------------------------------------------

A. Expected Benefits
  ***   ***   ***
B. Actual Benefits
  ***   ***   ***
C. Total Gain = B-A
  ***   ***   ***
D. 50-64 SF Share of Gain
  ***   ***   ***
E. United Share = C-D
  ***   ***   ***

***   Represents text deleted pursuant to a confidentialy treatment request
filed with the Securities and Exchange Commission pursuant to Rule 24b-2 under
the Securities Exchange Act of 1934, as amended.

22