Illinois HealthCare Insurance Company Placed in Liquidation

CHICAGO -- The Circuit Court of Cook County has granted Illinois Insurance Director Nat Shapo's request for an Order of Liquidation with a finding of insolvency against Illinois HealthCare Insurance Company. The liquidation is effective June 30, 2000.

Located in Bloomington, IL, Illinois HealthCare was incorporated and licensed in March 1997. The Agreed Order of Liquidation was based on the Insurance Department's finding that the company's policyholders surplus was impaired by an amount in excess of $2 million. Illinois HealthCare's most recent financial statements reflect approximately $20 million in direct premium as of December 31, 1999. The company wrote primarily individual accident and health insurance in central Illinois, as well as in the states of Indiana and Ohio.

The company is under the Director's control as Liquidator for the purposes of marshaling the company's assets, identifying its creditors, and discharging its obligations. Subject to statutory limitations, the Illinois Life and Health Insurance Guaranty Association will be responsible for the covered health claims of all Illinois policyholders up to $300,000 per person. Similar associations exist in both the states of Indiana and Ohio. Policyholders who reside outside of Illinois, but not in a state where the company was licensed, will also be covered by the Illinois Life and Health Insurance Guaranty Association.

The Guaranty Association and Liquidator will cooperate in an effort to ensure that services to policyholders are provided in accordance with the Association's powers and duties.

The liquidation proceedings are being handled on behalf of the Director of Insurance by the Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, IL; (312) 836-9500.