X0202 4 2007-12-19 0 0000773660 HealthMarkets, Inc. N/A 0001184821 MCQUAGGE TROY A 7651 ESTERS BLVD. SUITE 150 IRVING TX 75063 0 0 0 1 Division Manager Class A-1 Common Stock 2007-12-19 4 M 0 34771 42.03 A 38461 D Class A-1 Common Stock 2007-12-19 4 F 0 9752 42.03 D 28709 D Stock Option 7.34 2007-12-19 4 M 0 34771 7.34 D 2004-02-12 2008-03-13 Class A-1 Common Stock 34771 0 D As previously reported, in connection with the merger consummated on April 5, 2006, 30,000 options rolled over and modified into 27,568 options to acquire the Company's Class A-1 Common Stock at an exercise price of $9.25. In connection with the extraordinary dividend payable and paid on May 14, 2007, these options were further modified into 34,771 options to acquire the shares of the Company's Class A-1 Common Stock at an exercise price of $7.34. Troy A. McQuagge By /s/ Peggy G. Simpson, POA 2007-12-20