CORONET INSURANCE COMPANY ORDERED INTO LIQUIDATION

CHICAGO, IL -- Coronet Insurance Company, Chicago, Illinois was declared insolvent and placed into liquidation on December 24, 1996, by the Circuit Court of Cook County. The Agreed 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 policyholders surplus was impaired in excess of $2.5 million.

Coronet's most recent annual statement reflects approximately $83.6 million in direct premium as of December 31, 1995; however, the company has not been actively writing new business since a Cease and Desist Order was issued by the Department of Insurance earlier this month.

The company was ordered into Conservation on December 10, 1996, and will continue under the Director's control.

Coronet Insurance Company is a wholly owned subsidiary of Normandy Insurance Agency, Inc. of Chicago. The company is licensed in 28 states; however, it was concentrating its business writings in only 9 states when the Conservation Order was entered.

Coronet's affiliates, Crown Casualty Company and National Assurance Indemnity Company, which were also ordered into Conservation on December 10, 1996, continue under the Director's control, pending the Director's continued review of their financial condition.

Policyholders will be notified that all policies protected by the Illinois Insurance Guaranty Fund, as well as similar funds in other states in which the company was licensed, will be canceled as of 12:01 a.m., January 24, 1997, unless they expire or are terminated at an earlier date. The Guaranty Fund will be responsible for the covered claims of the company's policyholders.

The liquidation of Coronet, as well as the continued Conservation activities of its affiliates, are being handled by the Director's Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, Illinois 60654; (312) 836-9500.