ADMINISTRATIVE SERVICES

Following the acquisition of AIAG and CHCS, we have consolidated our Administrative Services division under the umbrella of CHCS Services, Inc. We decided to build our brand using the CHCS name to take advantage of its superior reputation in the senior market and its specific expertise in the long term care business.

The core of our business is a full-service administrative capability for all senior market insurance products, with a particular emphasis on MediGap products and long term care. Our service capabilities include:

• Underwriting (including phone verification) and Issue
• Policyholder Service
• Claims Adjudication
• Clinical Case Management
• Care Assessment and Coordination

CHCS provides administration for the following products and services:

• Long Term Care Insurance
• Medicare Supplement Insurance
• Medicare Select Insurance
• Home Healthcare
• Life Insurance
• Nurse Navigator™

There have been many dramatic changes in the senior market. In addition to the increased demand for medical insurance, there continues to be an unprecedented rise in the need for eldercare services. The baby boomer generation will be faced with taking care of the largest population of elderly parents and relatives in history. A recent study has estimated that, by 2020, 15 million seniors will have some type of disability for which they require assistance.

In response to this growing need, CHCS has begun to market its Nurse Navigator™ product, a non-insurance program, which provides eldercare guidance and discounted private geriatric care management. Our target market is the vast number of seniors, and their children, who do not benefit from long term care insurance. Ultimately, it will be sold through various channels, including employee assistance programs, unions, associations and insurers. So far, Nurse Navigator™ has been well received in the marketplace and holds tremendous promise for the future.