INLAND AMERICAN INSURANCE COMPANY LIQUIDATED

Chicago, IL The Circuit Court of Cook County has granted Illinois Director of Insurance Mark Boozell's petition to liquidate Inland American Insurance Company , Oak Brook, IL. The court declared the company insolvent on September 19, 1997, based on the Insurance Department's finding that the insurer's policyholder surplus was impaired in excess of $1 million.

Inland American had approximately $1.7 million in direct premium as of December 31, 1996, but has not written new business since April 1997.

The company is owned by Illinois based Inland Insurance Investors Limited Partnership. The Inland Insurance Group, Inc. is the general partner of the limited partnership, and a wholly owned subsidiary of the Inland Group, Inc. of Illinois. Inland American Insurance Company was incorporated in 1987 and wrote exclusively a special business owners policy for apartment buildings in the Chicago metropolitan area.

Policyholders will be notified that all policies protected by the Illinois Insurance Guaranty Fund will be canceled as of 12:01 a.m. October 20, 1997, unless they expire or are terminated at an earlier date. The fund will be responsible for the covered claims of Illinois policyholders.

Inland American has been under a sequestered conservation order since September 11, 1997, and will continue under the Director's control. The liquidation is being handled by the Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Ste. 1450, Chicago, IL; (312) 836-9500.