Illinois Earth Care Workers Compensation Trust Ordered into Conservation

CHICAGO -- Illinois Earth Care Workers Compensation Trust, Inc., was placed under an Agreed Order of Conservation on August 19, 1999. The Circuit Court of Cook County, Illinois, granted Illinois Insurance Director Nathaniel S. Shapo's petition based on the Department of Insurance's finding that the company's liabilities exceeded its assets by more than $1 million.

Illinois Earth Care Workers Compensation Trust, Inc. was organized in December 1992 pursuant to the State of Illinois' Workers Compensation Act for the purpose of administering a program of group self-insurance for workers' compensation loss exposures for selected members of the Land Improvement Contractors of America.

The Trust's most recent financial statements reflect approximately $3 million in direct premium as of December 31, 1998, and a net underwriting loss of approximately $1.8 million for the same period of time.

The action was taken to conserve the assets of the company for the protection of its claimants and creditors. The Order also contains an injunction prohibiting suits against the Trust outside of the conservation proceedings. The Conservation Order directs the Trust to comply with the Director's Corrective Order directing the Trust to assess its members in an amount sufficient to cure the deficiencies in its financial condition.

The conservation proceedings are being handled by the Office of the Special Deputy Receiver representing the Director of Insurance, 222 Merchandise Mart Plaza, Suite 1450, Chicago, IL 60654; (312) 836-9500.