ILLINOIS INSURANCE COMPANY LIQUIDATED

Chicago, IL --Illinois Insurance Company, of Oakbrook, Illinois, was declared insolvent and placed under an Agreed Order of Liquidation on July 9, 1999. The Cook Count Circuit Court granted Illinois Insurance Director Nathaniel S. Shapo's petition based on the Department of Insurance's finding that the company's policyholder surplus was impaired by over $2.5 million.

Illinois Insurance Company's most recent financial statements reflect approximately $28 million in direct and assumed reinsurance premium as of December 31, 1998, although the company has not written any new business since July 1998. The company wrote private passenger automobile insurance in Illinois, and assumed reinsurance business covering automobile warranty coverages in several states.

Policyholders will be notified that all policies protected by the Illinois Insurance Guaranty Fund will be canceled as of 12:01 a.m. August 9, 1999, unless they expire or are terminated at an earlier date. The fund will be responsible for the covered claims of Illinois policyholders.

Illinois Insurance Company was incorporated in March 1876, and is currently owned by North American Holdings, Inc.

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