Department of Insurance, Securities and Banking: Press Release

Washington, DC - The DC Superior Court granted the District of Columbia Department of Insurance and Securities Regulation (DISR) an Order of Liquidation and Approval of the Contract for Sale of the Enrollment on September 8, 2000 against American Preferred Provider Plan for the Mid Atlantic, Inc. (APPP). The Order of Liquidation appoints DISR Commissioner Lawrence H. Mirel as Liquidator for APPP.

DISR took control of APPP on August 4, 2000 after a DC court found that APPP failed to maintain the minimum statutory net worth requirement of $1 million. During the last month, DISR as rehabiliator, reviewed the company's financial health to determine if it could continue to pay policyholders' claims and other obligations. The Order granted on September 8, 2000 for liquidation calls for APPP to cease all operations effective September 8, 2000 at 10:00 a.m.

The Superior Court also granted as part of the terms of liquidation the approval of the contract for sale of APPP's enrollment list to DC Chartered Health Plan, Inc. APPP has approximately 3200 enrollees. Each enrollee will receive a letter explaining that APPP's medicaid enrollment list was purchased by DC Chartered Health Plan, Inc. and that each enrollee has the right to continue to see their primary care provider along with other details regarding the sale. The main objective for selling the enrollment list is to ensure continuity of care for APPP's Medicaid enrollees. The effective date of the transfer will be on October 1, 2000.

For further questions about the order, please contact DISR attorney, Katheryne Rickford at (202) 442-7758. APPP enrollees with questions can call Windy Hicks, Senior Consultant, APPP at (202) 463-2022, extension 306.

The DC Department of Insurance and Securities Regulation (DISR) has two missions, (1) to provide fair, efficient and fast regulatory supervision of the insurance and securities businesses for the protection of the people of the District of Columbia, and (2) to create conditions that will retain and attract national and international insurance and other financial businesses to the District.