Health Net 2006 Annual Report Download - page 44
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obligations to providers, members, employer groups and others, including the alleged failure to properly pay
claims and challenges to the manner in which we process claims. In addition, we are subject to claims relating to
the insurance industry in general, such as claims relating to reinsurance agreements and rescission of coverage
and other types of insurance coverage obligations.
These other legal proceedings are subject to many uncertainties, and, given their complexity and scope, their
final outcome cannot be predicted at this time. It is possible that in a particular quarter or annual period our
results of operations and cash flow could be materially affected by an ultimate unfavorable resolution of any or
all of these other legal proceedings depending, in part, upon the results of operations or cash flow for such
period. However, at this time, management believes that the ultimate outcome of all of these other legal
proceedings that are pending, after consideration of applicable reserves and potentially available insurance
coverage benefits, should not have a material adverse effect on our financial condition and liquidity.
Item 4. Submission of Matters to a Vote of Security Holders.
There were no matters submitted to a vote of the security holders of the Company, either through
solicitation of proxies or otherwise, during the fourth quarter of the year ended December 31, 2006.
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