CREDIT GENERAL TO LIQUIDATE

The Franklin County Court of Common Pleas in Ohio granted a request for liquidation order filed by the Ohio Department of Insurance with respect to Credit General Insurance Co., which was placed in rehabilitation on Nov. 6, 2000. Also approved by the court was the Ohio Department’s liquidation plan for Credit General, which allows for guaranty association funds in most states to cover benefit payments to Credit General policyholders. Credit General was rendered insolvent largely as a result its parent and affiliate companies failing to pay monies due to the property/casualty insurer; the diversion of corporate funds; and the failure of certain reinsurers of the company to pay their share of the claims. Formerly licensed in 48 states, Credit General Insurance wrote commercial coverages, including workers’ comp, auto, contractors general liability and surety products.