Precedent Launches Revolutionary Individual Health Insurance Plans In Texas

Released on: September 14, 2007, 6:53 pm

Press Release Author: Precedent Insurance

Industry: Healthcare

Press Release Summary: Online Site Promises Easy Application, Instantaneous Quotes
Plus Increased Coverage 'On Demand'

Press Release Body: DALLAS - A new era in health insurance dawned today in Texas,
promising affordable individual health insurance for the estimated three million
uninsured young, healthy adults in the state.

With the launch of the Precedent | RemixT individual health insurance products at
www.precedent.com, the health insurance industry has moved to an online retail
model, just as so many other products - such as auto insurance - have done
successfully in the past few years.

"Precedent is offering Texans a ground-breaking suite of individual health plans
that meet the specific needs of the young and healthy, especially the uninsured,"
said Mike Grandstaff, Precedent's CEO. "We are offering very affordable coverage
with the built-in flexibility to increase coverage levels through our 'Coverage on
Demand' model, which is truly unique to the industry."

Coverage on DemandT allows individuals to purchase a highly affordable lower level
of coverage, with the guaranteed ability to increase their level of coverage within
a plan year to cover any unanticipated illness or accident, up to $5 million, even
after incurring such expenses.

U.S. Census Bureau data show that nearly 50 million Americans were uninsured in
2005, with more than 5.5 million uninsured in Texas. The Lone Star State ranks an
unenviable first in the country in the percentage of uninsured residents at 25
percent.

"Everyone deserves affordable health insurance. What we are saying is don't buy more
insurance than you need," said Grandstaff. "With Precedent, you can lock in access
to additional coverage if you need it - even after the fact - with no questions
asked. That's
true peace of mind, both for young adults and their parents, who probably feel that
they're the ones who are on the hook if something unexpected happens."
With monthly premiums that average around $100 per month for healthy, young
individuals, Precedent | REMIX health insurance plans are highly affordable. The
Coverage on Demand products include "Tempo", a zero deductible plan that pays 60% of
in-network eligible medical expenses; "Rhythm", with a $250 deductible that pays
70%; and "Groove", a $500 deductible plan that pays 80%. (All plans pay 60% of
prescription drug costs and provide an annual wellness benefit of $400, in both
cases waiving any deductibles). Maximum paid claims at the initial level are $1000
for Tempo, $2,500 for Rhythm and $5,000 for Groove. But the unique twist to these
plans is that additional coverage up to $5 million is guaranteed, at 100% in
network, in the event of an unforeseen contingency such as a traffic accident or
appendectomy, even after the need arises.

"This approach of sharing the risk of unanticipated claims, rather than simply
sharing the cost up front, is completely new to the U.S. health insurance market,"
said Tia Goss Sawhney, Precedent's Chief Strategy Officer. "It's one of those
innovative ideas that leaves you wondering why no one thought of it before. The
policyholder gets something for his or her money at a lower monthly premium, with
remarkably good odds of never needing more coverage. And they have guaranteed access
to additional coverage if needed. That is a tremendous incentive to be a smart
consumer and buy individual health insurance the easy and affordable way through
Precedent."

"The insurance industry has to become more retail focused," said Grandstaff. "On the
heels of virtually every other business, it's time for innovative health insurance
products designed especially for the young adult sector of the population, with a
marketing message specific to them. It's also time for the health insurance industry
to deliver the instantaneous sales experience that this segment of the market
craves."

Because Precedent's business is conducted online, and through toll-free access to
licensed sales representatives at 1-8-PRECEDENT (1-877-323-3368), rather than
through sales agents, the company has also launched a blog
(http://blog.precedent.com) authored by Grandstaff. The blog is designed to help
educate the public about the role of health insurance consumerism within the online
and social media space.

About Precedent Insurance
Precedent, a division of American Community Mutual Insurance CompanyŽ, is a
"precedent-setting" company utilizing a Web-based marketing model to sell individual
health insurance to the nearly 50 million uninsured people in the U.S. Based in
Livonia, MI, Precedent's online presence, at www.precedent.com, allows consumers to
receive an instantaneous offer for individual health insurance products which are
highly affordable for healthy young individuals. The company's 'Coverage on Demand'
approach to health insurance gives consumers the comfort of knowing that they can
increase their levels of coverage at any time, even after the fact, with no
questions asked.


Web Site: http://www.precedent.com

Contact Details: Precedent Insurance Company
39201 Seven Mile Rd.
Livonia, MI 48152
Contact: Amber Cradduck, 972-830-4763
acradduck@webershandwick.com
Tara Hall, 972-830-4747
thall@webershandwick.com

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