With too many high-risk customers, claims would mount and the insurance company could go broke - a market failure.

About 1.4 million of those people - the high-risk customers - have individual policies or are insured through groups of less than 50 people.

The campaign was based on the premise that Empire was unfairly burdened with high-risk customers.

In 1992, the State Legislature required for-profit insurance companies to offer policies to high-risk customers.

One of the most common indicators of high-risk customers is a drop off in usage of the company's service.

Another type of high-risk customer was the small businessman in dire financial straits who couldn't qualify for a legal loan.

The false financial information exaggerated Empire's losses on policies with high-risk customers.

The lobbying effort was successful, and in 1992, the Legislature required for-profit insurance companies to offer policies to high-risk customers.

And with so many high-risk customers, claims mount.

Community rate regulation forces lower-risk customers to pay higher premiums to subsidize high-risk customers.