3. CONCENTRATIONS

Insphere maintains marketing agreements for the distribution of health benefits plans with a number of non-affiliated insurance carriers as well as the Company’s own insurance subsidiaries. The non-affiliated carriers include, among others, United Healthcare’s Golden Rule Insurance Company, Humana and Aetna, for which Insphere distributes individual health insurance products. The products offered by these third-party carriers and the Company’s insurance subsidiaries offer coverage and benefit variations that may fit one consumer better than another. In the markets where Insphere has commenced distribution of these third-party carrier products, these products have, to a great extent, replaced the sale of the Company’s own health benefit plans. During the nine months ended September 30, 2011, approximately 78% of health benefit plan sales marketed by Insphere were underwritten by these three third-party carriers.

Additionally, during the nine months ended September 30, 2011, the Company’s insurance subsidiaries generated approximately 57% of premium revenue from new and existing business from the following 10 states:


	Percentage
California		14	%
Texas		7	%
Maine		7	%
Florida		6	%
Washington		5	%
Massachusetts		5	%
Illinois		4	%
North Carolina		3	%
Pennsylvania		3	%
Georgia		3	%

		57	%