CROWN CASUALTY COMPANY ORDERED INTO LIQUIDATION

CHICAGO, IL The third company in the Cornet Insurance Group, Crown Casualty Company, Chicago, IL, was declared insolvent and placed in liquidation on January 31, 1997, in response to a petition filed by Illinois Director of Insurance, Mark Boozell. The Circuit Court of Cook County granted the Order based on the Insurance Department's finding that the company's policyholders surplus was impaired in excess of $200,000.

Crown Casualty's most recent annual statement reflects approximately $7.4 million in direct and assumed reinsurance 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 in early December 1996. The company was ordered into conservation on December 10, 1996, and will continue under the Director's control.

Crown Casualty Company is a wholly owned subsidiary of National Assurance Indemnity Company which in turn is owned by Coronet Insurance Company. The parent companies were placed in liquidation on January 3, 1997, and December 24, 1996, respectively. Crown is licensed only in Illinois, and has concentrated its business writings in assumed reinsurance from Coronet, as well as in a small book of nonstandard automobile coverages in Illinois.

Policyholders will be notified that all policies protected by the Illinois Insurance Guaranty Fund will be cancelled as of 12:01 a.m. March 3, 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 activities for all Illinois companies in the Coronet Group are being handled by the Director's Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Suite 1450, Chicago, IL 60654; (312) 836-9500.