MID-AMERICAN INSURANCE COMPANY LIQUIDATED

CHICAGO, IL -- Mid-American Insurance Company, Chicago, IL, was declared insolvent and placed into liquidation on February 29, 1996, by the Circuit Court of Cook County. The Order was granted in response to a petition filed by Illinois Director of Insurance Mark Boozell based on the Insurance Department's finding that the company's policyholder surplus was impaired in excess of $1 million.

Mid-American's most recent annual statement reflects approximately $3.6 million in direct premium as of December 31, 1995; however, the company has not been actively writing new business since January 1996. The company has been under a Sequestered Order of Conservation since February 23, 1996, and will continue to be under the Director's control in liquidation.

A wholly owned subsidiary of Mid-American Holding Company, Mid-American was incorporated in 1993, and wrote exclusively private passenger automobile physical damage coverages in Illinois only.

Policyholders will be notified that all policies protected by the Illinois Insurance Guaranty Fund will be cancelled as of 12:01 a.m. March 31, 1996, unless they expire or are terminated at an earlier date. The Guaranty Fund will be responsible for the covered claims of Illinois policyholders.

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