New Health Insurance Plan Designed to Fill Growing Gap

"Fundamental Care" covers employees caught between expensive major medical plans and entry-level limited-benefit plans

PHOENIX (October 13, 2005) - Star HRG, a leading provider of limited-benefit medical plans, announces the launch of Fundamental Care, an insurance plan for companies on tight budgets.

Fundamental Care is designed to fill the growing gap in coverage between low-wage hourly and part-time workers and those offered and unable to afford major medical coverage, which can cost upwards of $400 each month.

There are currently forty-eight million Americans that face life without health insurance, and that number will be on the rise as premiums climb steadily each year. With employers hurting from the weight of hefty benefit costs, companies that cannot afford to absorb premium increases are faced with a difficult decision: either pass the costs on to their employees or eliminate major medical plans altogether.

"Companies and their employees have been put in a tough place," said Star HRG President Timothy Cook. "When we designed Fundamental Care, we sought to find the middle ground between a limited-benefit plan and a major medical plan, all while providing robust benefits to our insureds."

Fundamental Care will cost about 25% - 40% less than a typical major medical plan, and its most robust option will still provide up to $50,000 of yearly coverage per person. "Our research showed that 98 percent of insureds use less than $30,000 in benefits yearly," said Cook. "Fundamental Care is a real solution for companies that want to offer medical coverage but have been forced to drop their plan because they can no longer afford it. We think employees will be grateful for the reduced monthly premiums."

To find out more about Fundamental Care, please visit www.FundamentalCare.com.

Star HRG

Star HRG, the nation’s premier provider of limited-benefit medical plans for non-benefited hourly employees, has offered health insurance plans for over 15 years. Star HRG addresses the unique benefit needs of entry-level, part-time hourly and high-turnover employees by providing voluntary insurance programs at a price employees can afford. Star HRG’s innovative insurance solutions have helped companies reduce turnover, improve recruiting, and stabilize benefit expenses within the hourly paid workforce. Star HRG is the leader in innovative and affordable plan designs, cutting-edge customer service and claims administration, and creative approaches to enrollment options.

Star HRG is a division of The MEGA Life and Health Insurance Company, which is a wholly owned subsidiary of UICI (NYSE: UCI).For more information on Star HRG, visit www.StarHRG.com or call (800) 511-2902.

UICI

UICI (headquartered in North Richland Hills, Texas) through its subsidiaries offers insurance (primarily health and life) to niche consumer and institutional markets.  Through its Self-Employed Agency Division, UICI provides to the individual and self-employed markets health insurance and related insurance products, which are distributed primarily through the Company’s dedicated agency field forces, UGA-Association Field Services and Cornerstone America.  Through its Student Insurance Division, UICI provides tailored health insurance programs for students enrolled in universities, colleges and kindergarten through grade twelve.  Through its Star HRG Division, UICI markets, administers and underwrites limited benefit insurance plans for entry level, high turnover, hourly employees.  Through its Life Insurance Division, UICI offers life insurance products to selected markets.  Through its ZON Re USA unit, the Company underwrites, administers and issues accidental death, accidental death and dismemberment (AD&D), accident medical and accident disability insurance policies, both on a primary and on a reinsurance basis. For more information, visit www.uici.net.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:
Some of the matters discussed in this news release may contain forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate", "believe", "estimate", "expect", "intend", "objective", "plan", "possible", "potential" and similar expressions. Actual results may vary materially from those included in the forward-looking statements. Factors that could cause actual results to differ materially from those included in the forward-looking statements include, but are not limited to, general economic conditions; the continued  ability of the Company to compete for customers and insureds in an industry where many of its competitors may have greater market share and/or greater financial resources; the Company’s ability to accurately estimate medical claims and control costs; changes in government regulation that could increase the costs of compliance or cause the Company to discontinue marketing its products in certain states; the Company’s failure to comply with new or existing government regulation that could subject it to significant fines and penalties; changes in the relationship between the Company and the membership associations and/or changes in the laws and regulations governing so-called "association group" insurance (particularly changes that would subject the issuance of policies to prior premium rate approval and/or require the issuance of policies on a "guaranteed issue" basis); significant liabilities and costs associated with litigation; failure of the Company’s information systems to provide timely and accurate information; negative publicity regarding the Company’s business practices and/or regarding the health insurance industry in general; the Company’s inability to enter into or maintain satisfactory relationships with networks of hospitals, physicians, dentists, pharmacies and other health care providers; failure of the Company’s regulated insurance company subsidiaries to maintain their current ratings by A.M. Best Company, Fitch and/or Standard & Poor’s; and the other risk factors set forth in the reports filed by the Company with the Securities and Exchange Commission.

UICI press releases and other company information are available at UICI’s website located at www.uici.net.

Contact:

Kevin Burbridge
Star HRG
(800) 511-2902