Common use of Controlled Affiliate Clause in Contracts

Controlled Affiliate. By: -------------------------------------------- Date: -------------------------------------- Plan: By: -------------------------------------------- Date: -------------------------------------- BLUE CROSS AND BLUE SHIELD ASSOCIATION By: -------------------------------------------- Date: -------------------------------------- EXHIBIT A CONTROLLED AFFILIATE LICENSE STANDARDS March 2001 PREAMBLE The standards for licensing Controlled Affiliates are established by BCBSA and are subject to change from time-to-time upon the affirmative vote of three-fourths (3/4) of the Plans and three-fourths (3/4) of the total weighted vote. Each licensed Plan is required to use a standard Controlled Affiliate license form provided by BCBSA and to cooperate fully in assuring that the licensed Controlled Affiliate maintains compliance with the license standards. The Controlled Affiliate License provides a flexible vehicle to accommodate the potential range of health and workers' compensation related products and services Plan Controlled Affiliates provide. The Controlled Affiliate License collapses former health Controlled Affiliate licenses (HCC, HMO, PPO, TPA, and IDS) into a single license using the following business-based criteria to provide a framework for license standards: o Percent of Controlled Affiliate controlled by parent: Greater than 50 percent or 50 percent? o Risk assumption: yes or no? o Medical care delivery: yes or no?

Controlled Affiliate. By: -------------------------------------------- Date: -------------------------------------- Plan: By: -------------------------------------------- Date: -------------------------------------- BLUE CROSS AND BLUE SHIELD ASSOCIATION By: -------------------------------------------- Date: -------------------------------------- EXHIBIT A CONTROLLED AFFILIATE LICENSE STANDARDS March June 2001 PREAMBLE The standards for licensing Controlled Affiliates are established by BCBSA and are subject to change from time-to-time upon the affirmative vote of three-fourths (3/4) of the Plans and three-fourths (3/4) of the total weighted vote. Each licensed Plan is required to use a standard Controlled Affiliate license form provided by BCBSA and to cooperate fully in assuring that the licensed Controlled Affiliate maintains compliance with the license standards. The Controlled Affiliate License provides a flexible vehicle to accommodate the potential range of health and workers' compensation related products and services Plan Controlled Affiliates provide. The Controlled Affiliate License collapses former health Controlled Affiliate licenses (HCC, HMO, PPO, TPA, and IDS) into a single license using the following business-based criteria to provide a framework for license standards: o Percent of Controlled Affiliate controlled by parent: Greater than 50 percent or 50 percent? o Risk assumption: yes or no? o Medical care delivery: yes or no?? o Size of the Controlled Affiliate: If the Controlled Affiliate has health or workers' compensation administration business, does such business constitute 15 percent or more of the parent's and other licensed health subsidiaries' contract enrollment? EXHIBIT A (continued) For purposes of definition: