THE CONTINUING CORRESPONDENCE WITH MR. LISI

dear mr. lisi

thanks for sending me the commissioner's decision and order.

i have several questions:

the initial capitalization from conseco for senior healthcare company of Pennsylvania (175,000,000), considering the substantial funds it required in the past from conseco, seems to assure a series of future rate increases. what's your views on this?

the term "trust" is mentioned nowhere in the order; the transition seems to be stated such that it appears to be the creation of a new insurance company. can you explain this to me?

the actuarial report commissioned by conseco and its conclusions will define this transaction more completely, yet it is sequestered from public scrutiny. what may conseco have to hide in classifying this document as top secret? and, was the commissioner privy to it?

there seems to be suggestions of profit on the transferring of shares to the new trust. am i misinterpreting this?

after acceptance by the commissioner in november, notices were supposed to be sent to policyholders of the trust's existence shortly thereafter. this, apparently, was not done! why?

would this have anything to do with not allowing policyholders redress of grievances, and the hiding of critical information from those in need to know, all pertaining to first amendment guarantees?

a public meeting, prior to the commissioners decision, could have been held by virtue of questionnaires being sent, then subsequent observations by the commissioner.. in the interest of laws safeguarding consumer rights, what "real" excuse was there for not implementing this? does common law in this instance not supersede obscure pennsylvania statutes?

the trust has no statutory reserve requirements as does an insurance company. is this accurate? and if it is, what state oversight exists as to the trustees' management decisions?

i've asked this before: what procedure takes place by the state in the event of the trust's insolvency?

you've conveyed to me that the trust's cash position amounts to 300,000,000, and the trust reserves are worth 3 billion. will you kindly substantiate these claims?

the trust, from application to acceptance, took approximately 4 months. this, with no requested input from the policyholders directly affected. nor full disclosure from conseco (the actuarial study it commissioned.)
do you see this as an expedient pushing-through of this, very possibly illegal, transaction?

sincerely, william silverman