Now Registered in 43 States; Appoints Brokers to Texas

SANTA ROSA, Calif. – Mutual insurance company CCRRG, administered by Magnolia LTC Management Services, Inc., today announced that the State of Texas is now the 43rd State to approve its innovative shared risk insurance model for underwriting long term care facilities.

Texas has historically had some of the highest insurance rates in the nation, which in turn had been driving up the costs for caring for the elderly. However, recent legislation was passed and in 2006 the Pacific Research Institute ranked Texas best tort reform system in the nation after weighing 39 variables ranging from caps on punitive damages to those on appeal-bonds. Today, Texas laws support CCRRG's rigorous underwriting standards that allow it to offer such low premiums.

"CCRRG's six reinsurance companies have fully supported our entry into this important state," said Bob Bates, President of Magnolia LTC, the management services company that administers CCRRG. "CCRRG's proven underwriting methodology has consistently delivered one of lowest loss records, lowest claims histories and highest customer retentions of any RRG in the industry for the past three years consecutively."

CCRRG's innovative program has formed a group of member/owners who each contribute premiums into a shared risk pool, which as a group manages their own claims payouts and continuing eligibility in the insurance company. Aggressive risk management and claims defense result in very competitive rates for all levels of service -- from Skilled Nursing to Independent Living. There are no exclusions or sub-limits, and no joint/several liability. Prior Acts, Per Claim Excess and Extended Reporting Period are all available for an additional charge.

Approved Brokers Appointed for Texas

In related news, CCRRG announced the appointment of three approved brokers with excellent industry knowledge and long-standing reputations with CCRRG to represent the program in Texas. CCRRG also announced the availability of a limited number of additional broker appointments.

"Texans take pride in upholding family values, and one of those values is to take care of our elderly parents. CCRRG's goals and philosophy mesh perfectly with those values," said Jason Adelman of HCF Insurance in San Antonio.

About CCRRG & Magnolia LTC

Continuing Care Risk Retention Group, Inc. (CCRRG) is the first nationwide RRG liability carrier designed specifically for the needs of independent owner/operators of long term care facilities. CCRRG is licensed as a mutual, industrial insured captive insurance company by the South Carolina Department of Insurance. Formed pursuant to the federal Liability Risk Retention Act of 1986, as amended (LRRA), CCRRG is owned exclusively by its insured members to whom it offers a dynamic risk management program in cooperation with My InnerView, its strategic partner and key element in AHCA's Quality First Initiative. The CCRRG policy has standard limits (1m/3m with increased aggregate limits available), a Financial Stability Rate of "A-Exceptional" from Demotech, Inc. and is fully reinsured with multiple Lloyds of London reinsurers all rated "A-" or better.

Magnolia LTC Management Services was founded with the goal of providing a solution to runaway insurance costs for nursing homes and other long term care providers. CCRRG focuses on the superior operator of independent owner/operator facility(s) and the smaller chains of facilities providing care and treatment of the elderly. The Risk Retention Group insurance model stands the insurance industry on its head by forming a group of member/owners who each contribute premiums into a shared risk pool, which as a group manages their own claims payouts and continuing eligibility in the insurance group. More information can be found at www.magnolialtc.com or by calling (707) 571-7430.

© 2006 Magnolia LTC Management Services, Inc. All rights reserved. All company and product names mentioned herein may be trademarks of their respective owners.2006 National Center for Policy Analysis. All rights reserved