ASSOCIATED PHYSICIANS INSURANCE COMPANY ORDERED INTO LIQUIDATION

Chicago, IL -- Associated Physicians Insurance Company (APIC), Oak Brook, Illinois, was declared insolvent and placed into liquidation on August 16, 2001, by the Circuit Court of Cook County. The Agreed Order was granted in response to a petition filed by Illinois Director of Insurance Nat Shapo, based on the Insurance Department's finding that the company's policyholders surplus was impaired in excess of $1 million.

APIC has been in run off since January 1995, and has not written new business since that time.

APIC, which began operations in 1987, is a wholly owned subsidiary of Associated Physicians Capital, Incorporated, an Illinois holding company based in Oak Brook. The company is licensed in nine states; however, it was concentrating its business writings primarily in Illinois when it entered run off.

The covered claims of Illinois residents will be protected by the Illinois Property and Casualty Guaranty Fund.

The liquidation of APIC is being handled on behalf of the Director by the Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, IL 60654; (312) 836-9500.