December 27, 2005 - Texas Mutual Insurance Company announced today that a Travis County grand jury indicted MedAlert Healthcare Systems Inc. and its president, Joseph Osei, on felony workers’ compensation fraud-related charges.

MedAlert provides billing and collection services for medical providers. The indictments allege that Osei and MedAlert fraudulently double-billed Texas Mutual Insurance Company for medical services rendered from October 2000 to March 2001.

The MedAlert investigation is part of the Texas Mutual^® “Zero Tolerance for Fraud” policy. Texas Mutual Insurance Company maintains three teams of investigators permanently assigned to investigate every report of suspected fraud.

Note: A grand jury indictment is a formal accusation—not a conviction—of criminal conduct.

December 21, 2005 - Texas Mutual Insurance Company announced a $125,446 group dividend today to the National Federation of Independent Business (NFIB) workers’ compensation purchasing group for the construction industry.

Group dividends are separate from the approximately $50 million in individual dividends that Texas Mutual Insurance Company paid to qualifying policyholders this year. Some NFIB/Construction members may receive dividends under both programs.

NFIB is the nation’s largest advocacy group for small and independent businesses. Texas Mutual Insurance Company is the state’s leading provider of workers’ compensation insurance and leading writer of purchasing group programs. Together, they offer purchasing groups for three industries: construction, manufacturing, and wholesale-retail.

Texas Mutual® President Russ Oliver (right) presented the dividend check to Richie Jackson, TRA executive vice president.

December 15, 2005 - Texas Mutual Insurance Company announced a $1,294,675 group dividend to the Texas Restaurant Association (TRA) today. TRA has received over $2.7 million in Texas Mutual^® group dividends since 2002.

Group dividends are separate from the approximately $50 million in individual dividends that Texas Mutual Insurance Company paid to qualifying policyholders this year. Some TRA members may receive dividends under both programs.

“When Texas Mutual succeeds, it gives back to its policyholders,” said Richie Jackson, TRA executive vice president. “Many of our members will turn around and put this money straight back into their businesses, which ultimately helps the Texas economy as a whole.”

Each TRA purchasing group member receives a premium discount based on the group’s total written premium. Members also have access to a Texas Mutual^® safety plan developed for the restaurant industry.

October 31, 2005 - Texas Mutual Insurance Company announced a $72,519 dividend to the Texas Green Industry (TGI) purchasing group today.

Group dividends are separate from the $50 million in individual dividends that Texas Mutual Insurance Company paid to qualifying policyholders this year. Some TGI group members may receive dividends under both programs.

Hotchkiss Insurance Agency Inc. formed the TGI purchasing group in February 2004. Under its guidance, TGI has grown to more than $4 million in written premium and become one of the fastest-growing Texas Mutual^® purchasing groups.

“The Hotchkiss agency has done a fantastic job building this group,” said Ken Lauber, Texas Mutual^® vice president of field operations. “With Hotchkiss behind it, I am confident TGI will continue to grow.”

Any Texas insurance agent may place a qualifying client into the group, with the underwriter’s approval.

October 19, 2005 - Texas Mutual Insurance Company reported today that Thomas Whited of Bastrop pleaded guilty to workers’ compensation fraud-related charges. The Travis County 167th District Court sentenced Whited to a one-year suspended jail term with the following conditions: serve thirty days in jail, repay $2,441.25 in benefits to Texas Mutual Insurance Company, perform 160 hours of community service, attend treatment and counseling as recommended by probation, and pay a $250 fine, plus court costs.

Whited reported a job-related injury while working for C.W. Oates Masonry Inc. His doctor placed him in off-work status, and Texas Mutual Insurance Company began paying him temporary income benefits (TIBs).

A C.W. Oates employee contacted the Texas Mutual^® fraud department after observing Whited working as a mason on another construction project. The investigation uncovered evidence that Whited started his new job three days after he reported his alleged injury, and he continued to collect TIBs while working.

Investigators call this sort of scam “double-dipping” because the perpetrator, in effect, gets paid twice: once by his new employer for working, and again by his previous employer’s insurance company for being too injured to work. If allowed to continue, double-dipping scams can lead to a higher workers’ compensation insurance premium for the first employer when the company renews its coverage.

State law allows injured workers to receive TIBs only while they are unable to work. The law also requires injured workers to notify their workers’ compensation insurance company when they begin working again.

The Whited investigation is part of the Texas Mutual^® “Zero Tolerance for Fraud” policy. Texas Mutual Insurance Company maintains three teams of investigators permanently assigned to investigate every report of suspected fraud.

October 11, 2005 - Texas Mutual Insurance Company announced its newest workers’ compensation purchasing group today: the Texas Home Builders Workers’ Compensation Group. The group, which includes new-home builders in Texas, provides qualifying members with a competitive option for workers’ compensation coverage.

The Texas Department of Insurance (TDI) allows employers in similar businesses to form purchasing groups to help reduce their workers’ compensation insurance premiums. Hotchkiss Insurance Agency (HIA) administers the group, and Texas Mutual Insurance Company underwrites it.

Texas Mutual Insurance Company gives each group member a premium discount based on the group’s premium volume. Members may also qualify for Texas Mutual^® individual and group dividends, and they have access to a safety program designed specifically for the home-building industry.

“As a 20-year Texas home builder insurance program manager, I am excited to partner with Texas’ leading provider of workers’ compensation insurance to help home builders obtain all of the benefits available to them in a workers’ compensation program,” said Doug Hotchkiss, president of HIA. “This new purchasing group will help members save on premiums and improve safety in their workplaces.”