AMERICAN CHAMBERS LIFE INSURANCE CO. SUSPENDED IN ILLINOIS

SPRINGFIELD -- The Illinois Department of Insurance has ordered American Chambers Life Insurance Company, Cleveland, OH, to stop writing new and renewal business in Illinois. The suspension order was issued based on the company's 1999 annual financial statement which shows their capital and surplus has dipped to ($18,710,648). Life, accident and health insurance companies are required to maintain at least $1.5 million in capital and surplus.

American Chambers Life Insurance Company writes group life and group accident and health insurance. At year end 1999, the company reported $9,414, 266 in Illinois direct premium.

The suspension order was issued March 24 and will remain in effect until the company corrects the surplus deficiency. The order does not affect or impair the company's right or duty to pay policyholder claims.