USAir - Bad Faith Actions In The "Business Of Insurance".

USAirLong-Term Disability EnrollmentSheet------.--.,JOYCE LACKERMANEmployee NUmber.'7: ;'Social Security Number.556 SHAOOWLAWN AVEDAYrON OH 45419 . .lit'.' . The annual enrollment period for-coverage. under the . Long-Term Disability Plan provided by Fortis BenefitsInsurance Company is June 5 ·throUgh June 30;·1995 . l.,ong-Term Disability (LID) insurance provides vou with free' replacement inCOf'?e if you are unable to work' due to a covered isability !hat results fro';'. injury . J!!Dess . or pregnancy . Details at?Put the plan and ·the enrollment. process are Included In the enclosed booklet.Costsfor:reemployee:'fundedvoluntary plan are based on your age and the options that you select. Theapproximate contributions per pay per!od for an employee of your age are listed below.VTo enroll. for or to change your L TO CQverage. you should call the USAirUne at (800)' 872-4780 between JuneJune 30. 1995.· Theautomatedenrollment system is available 24 hours-a-day, beginning at 8 a.rn. onJun 5. You must enroll between these dates - no new enrollments or increases in coverage WIll be acceptedpast June 30. 1995.s andIf you already carry LTO coverage and do not wish to make any changesparticipate in this enrollment. Your coverage will continue without change.to your coverage,Any .cov rage elections made during this enrollmentactive employee at that time.Augustwill becomeJf you have' any questions about the L to plan. or your optionsadministrator - at (800) 7.76-6808.effectiveyou do not need to1. 1995. providedyou are an- the planV'he Long-Term Disability Plan prollidf1Ci.by Fortis i3enefits Insurance Company is avaJ7ab/eonly to fulF·time ilSAir groundersonne: Part-time employees. pilots. flight attendants. and participants of the management incentive plan are notligibie to participate. Only employee who are eligible for coverage should participate in this enrol/ment.Vunder it. please call Fortis BenefitsYour current coverage under the LTD Plan:You have elected a 180-day QualifYing Period and have insured 30 percentof your regular earnings.Yo r·estimated·contributions per pay period for LTC coverageRates based on your age as of August 1. 1995: 33 years; and on your pay rate as of April 30 1995QualifyingPercentaqe of Replacement60% of Regular EarningsPeriods9O-0ayIncome ,16.0450%· of Regular Earnings 13.3740% of Regular Earningss10.7030% of Regular Earningss8.02l80-Day'./s10.62 8.85 7.09 5.31./.;/ The cost of this mailing waspaid by Fortis Benefits Insurance Company./'l002d3

/l.8fbson .Alprecount Forti, J41H.nf2tnsursnc»C JmlNT7Y2;].1, GlWId AIIwlI.l t.-;KJInSG3CIIy. MO IW70e(818) -'7.l-;/:Jr.iF:u (81 ) .2:r.l (rll\10 AA":NisffA-be)November 9, 1935Wyatt OwensNational Group Protection.Inc.2307 CommonwealthDriveCharlottesville,VA 22901.:Re: USAlr - ERISADoar Wyntt:I have spoken to several of our .artornevs in order to gain 03 much information8S possible Inreonrds to the ERISA issue.I would like to brigflyreview tho Departmentof Labor (DOL)Rogulation2510.3-1 Cj)that discusseswhacgroup insurancearranoam'ent!tdo. not constituteemplove e welfare benefit plans if there is minimal ernptovorare made by the employer. . PDrticipationis comp/etaly voluntary.!3. Tha employerrecelves no coristderatton in the.ndarad in connectionwith payroU deductions.involvoment:.1. No c orrtrlbutlonerorrn of cashfor adrntnlatrerive servicesTheso three criteria are do finitely being mpt. The lost c/ite ia that must bern e t !ltDtes't1"1Qc thosota function of the amp"lOYOf with rasp tto the program are, without endorsing the progrDmto permit the insurer to publicize the program to the ernplovae.s. to collect payroll deductionsand remit them to the insurer.It is our opinion that thi criteriais not being met.Our rationaleIs based on USAir'sinvolvementin the plan design. open enrottmentmatartatsand the articles written by- USAlr(orVemployee newsletter.Forti:) Bl')nefits'osition on whether or. ot.8 Ian i!J s b'ccr to ERISA only cow on wo are Involved InlidgatJon.A:J "mentionedto you. ERIcase" must be aruued inFoderal Court whiCh is B much friendlier env;ronmont83 opposodto StataCourt.Out .counselwill arguo on almost aU casas that ERISA applies in an arternotto move the case out of StateCourt. This i the sttuacloo that occurredin the Thoma.s Meaker case in North emolinn whereboth USAIr nnd Fortls were named as defendants.Counsel wa selectedto representbothUSAir and Fortis. The strategyemployed.and agreed [0 by attorneysfrom Fortis end USAir.was that the LTO plan W8S an employoe welfora plan and subject to ERISA. In this case, thecourt agread with thi!J orgumAnt.Keep in mind that if the insurer f lil!l to argue this point(for/if

Pnga2at a/l, than the insurar l.s automatic IIY placing themss/ve.s in 11 precarious financial positiondDa-*Oti:tJia damage award!} that c;an occur a"t the State JeveL ihj ;3 the reason why we8 .3Um9. jll Cases ani subject to ERISA in our clalms processinq o that wo can argue thi.sposruon In COUf'l:. Not every court 13 going to rule the same way and in some caSS3 ITmay bedetermined.thet the-US7iJ'T'"i!J Jicit J I:'USA. ERIsA, ltka many oTher 'Giw snp(sgulation3.contalns 8 lot o ,, aue Itmguage):hat can be interpreted and argued either wet.It a/l depend.s on the 3ituatJon ana -rr; ·s"tancB the party want.!! to take.orIt Is up to USAir to decide whethernat they feel the LTO plan i.s an employeewelfarebenefit plan In their Hy96 We taka the positionthat ERISA applies to protect our JeaalInterests In the case of IItiantionIt is nor our po.sltion to ugge.st or force any employsr tocomply with ERISA basad on out opinion.Wyatt. I hope this uxptalns our position on this IS3ue. I realize that USA!r thinks we shouldbe in concert on thi.s which would require USAir to comoly with the DOL regulationB whichinclude the iS3uance 0' 0 SummaryPlan DS:5crlption. The timIng of all this 83 it relates [0 theCertificatet/Booklet maHing is aomawhatPlease call me crttlcal,We (am the C8rtificataBooklets.shouldbeQ1ailad now. Slyr vendor fs ready to mail thom and due to the langth of time thllt he3 elapsesjainc a the nhwpl-9n was put into praca tna Booklets rre ed ro be mailed Immediately lNithout anyfurther delays.If USAIr decides that the plan is sub oct to ERISA,. then Summary PlanOescrlptionsc ne .9upefied at a Jeter da .!:Larry [aibsonGroup Accountcc: Ken Bowento discus:! this In more detail.Executive

IMPORTANT CB·aANGESIN SPD REQUIREMENTS-2-us, Deptil'tri.tent of LabrPension and Vle!fare BenefitsMmfn13trfitlouSPOt FUlU G EUa mAmD: ERISApension and welfare plans no longerneed to fila copies of summary plandescriptions (SPOs), summanes ofmaterial modifications (SMMs), orupdated SPDs t'llith ihe Department ofLabor. l\Q(!)&'e: adminiS'bclltol'Ssijn H {l;h'-):must fumlsh these documentsparticipants and beneficiaries.7\'l\n}toGROUP Il-DEAe.:rHPLAr § SPDe: Group,health plans must include in their SPOs:@}@Vv'Information about the role of MY"health insurance lseuer" (6,9.,Insurance company Of HMO), inthe plan's operation. includingwhether oon frts are guaranteedby the issuer and whatadministrative services itprovides,A notice toot federal law generallyprohibits plans and heaHhinsurance Jssuers from limitinghospital st8!ys for chlfdbirb'1 to lessthan 48 hours for nosmaldenVs-rfoo and 9 hours forcesarean sections. An updated "Statement of ERISARights" indicating which .t:lepartfnent of labor office tocontact for infunnauon andassistance.Gro heal os.must.a!sculotif ---.-.----partiCIpants and berwffciaries ofnmateriai reductions in covered servicesJ)IJt':.,p.D yr.,or benefits" (e.g important benefitreductions or cost increases forparticipants).This notice must be givenby the plan \'lIifuin 60 days of adoption,or \Wilin 90 days of adoption if given aspart of sysrem of communication,suchas union net /Slatlars or companypublications, distributed at regularinterva!s of not more than 90 days.N :SMMsor updated SPDs givingnooce of other plan changes must befurnished within 210 days after the endof the pian year.EI!.ECm i'C DmCLOSUJRlE TheDepartment: of Labor has set forth "safeharbor" conditions under vmi.chelectronic media (e.g . e-rnail) may beused to furnish group hesIlhpkm SPDsSMMs. and updated SPOs to participants.See 62 F.ed. Reg. 16,985(.April 8, 1997) (to be codified at 29CFR2520.104b-1(c».For further information cal!1-800-998-7542,vIsit out v,rebsrte atMiip:11 W"t'Wtll?dotgovll!:1!oUP\'l!b61l or 1A'liteus atand Wafifure aem. ·msAdmhliimlratiOe1llLS. Dep rim@m off lab1)fC f'Se e'Represel11ltllllijveRm. f'.'IooS1825200 Con nAwmne. ti' .W. nmOi1lW1a hingWn;DC 26210

.U'S AIR\VAYS 'February 17, 1998Joyce Ackerman556 Shadowlawn AveDayton',OH 45419-Dear-Mrs. Ackerman:I am responding to your Febnwy IJ. 1993Jetter requesting infOnnation enroUmentthe Long Term Disability (LTD) Product sponsored by FottisBcncfits Insurance Company,inYour enrollment in LID began August 1. 1989 with anelected benefit of 1500.00 per month and a'130 day ,wal period. During your enrollment, you made changes in your percentages andwaiting periods as follows:'August . 1993August I, 1995, JUS Aim,'180 days90 days30% O% YSA%:%consider this voluntary program as one, of its' E AomsPlans. The program,was a voluntary LTD msurance program forwhich employees were eiigibie to enroU and pay, premiums th.uugh'the convenience ef payrolldeduction. Any J prOceedinP' in ,regards to this insurance is dictated by the insurance company.This LTO progQi1[ u'nS a fuUy insuhd product. The offcringofL TD insarance through fortisBenefits ended' July 31. J refore.enrollment also ended on that date.sponsored by'Benefits InsuranceCOR1pf,Ul}'.Mrs. Ackerman. [hope diis;l r addressesyour concerns. If'you require Information gyour US Air vaysbenefit plan, please caU the Human Resources National Service Center at 800S71-4780,--'-:" J'', incerely. r1.-,/l""'.',\"2-,r-:J,'\5 Dee Allen'Specialist Health/Welfare

U·S AJIRWAY§FEDERAL EXPRESSSeptember 5, 2000Mark A Anthony, Esquire7970 Clyo RoadCenterville, Ohio 45459RE:Joyce Ackerman, et al. v. Fortis Insurance Co.Subpoena for Joyce AckermanDear Mr. Anthony:In response to the Subpoena Duces Tecum issued on June 27, 2000,enclosed are the personnel, medical, payroll and information on theplan with Fortis that Ms. Ackerman selected The plan as offered toemployees was fully funded and ,not an ERISA It was offered toemployees who then enrolled through an automatic enrollmentprocess. More information will be found in the booklet entitled"USAir Long Term Disability Plan Offered to Employees of USAir,Inc." (90 days) The booklet was effective 8/95. Copy enclosed andMs. Ackerman's file.Once you have had the opportunity to review these files, please adviseif you have any further questions. Thank you for your patience in thismatter.Sincerely,Prll . -Rita M. EvansManager Legal AffairsEnclosures2345 Crystal DriveAtlington. VA 22227

THE WHITE HOUSEWASHINGTONDecember 4, 2007Ms. Joyce L Ackerman556 Shadowlawn AvenueDayton, Ohio 45419Dear Ms. Ackerman:On behalf of President Bush. thank you for your correspondence.We are sending your inquiry to the Department of Labor. This agency has the expertise toaddress your concerns. They will respond directly to you, as promptly as possible.The President sends his best wishes.Sincerely,:!:;;pplCrSpecial Assistant to the Presidentand Director ofPresidentiaI CorrespondenceDue to mall screening procedures, we naoeonly recently received your letter. We appreciateyour patience in awaiting a response.