Adjudicative Hearing

Begins Monday, May 3, 2004 and will conclude by Tuesday, May 18th.

The hearing, which is scheduled from 9:00 a.m. - 4:30 p.m. daily, will take place at the Tyee Conference Center in Tumwater (see directions below).

As the state insurance regulator, the Office of Insurance Commissioner has a responsibility to determine whether or not the conversion application meets all requirements under the law. The commissioner is authorized to consider a number of factors regarding the Application, including:

• Whether the conversion prejudices the interests of subscribers
• Whether it substantially lessens competition in the health care business

Because the proposed conversion includes the creation of a private nonprofit foundation to receive certain assets, the commissioner may also review the valuation of Premera Blue Cross and whether or not the value is preserved for use in accordance with the law.

The Holding Company Act specifies the hearing be an adjudicative (legal) proceeding, resulting in a final administrative order. The commissioner has wide latitude to establish the procedures for the conduct of the proceedings.

Four parties will be involved in the hearing:

• The insurance commissioner, in a judicial role
• Premera, which represents its case for conversion
• The OIC staff review team, which will make its recommendation to the commissioner
• Third-party, known as "interveners," who represent significant interests that would be affected by a conversion.

Definitions
Certain words will pop up a lot as we head towards the adjudicative hearing, including:

Discovery: Data or documents that a party to a legal action is compelled to disclose to another party, either prior to or during the proceeding.

Deposition: Testimony under oath - a written statement by a witness for a use in court in his or her absence.

Interveners: Other persons who have established to the Commissioner that the proposed transaction affects their significant interests.

Testimony: A declaration or affirmation of truth or fact, such as that given before a court.

Directions:
American Legion Tyee Convention Center
5757 Littlerock Rd.
Tumwater, WA 98501

From Seattle:
I-5 South to exit #102 (Trosper Rd.). Turn right at top of ramp, then a quick left at the first signal which is Littlerock Rd. Conference Center is just a short distance down Littlerock Rd., on the right side of the street directly across from the entrance to Costco.

From South of Tumwater:
I-5 North to exit #102 (Trosper Rd.). Turn left at top of ramp, proceed over freeway to Littlerock Rd. Turn left and follow same directions as above.