December 19, 2002

The following is a statement of Office of Financial and Insurance Services (OFIS) Commissioner Frank M. Fitzgerald regarding the bankruptcy filing of Conseco, Inc., announced on December 18, 2002:

On December 17, 2002, Conseco, Inc., (Conseco) along with several subsidiaries, including CIHC, Inc. and Conseco Finance Corp., filed for permission to reorganize under Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Chicago.

Conseco, Inc. is a publicly traded holding company headquartered in Carmel, Indiana. Conseco, Inc. is not an insurance company. Conseco, Inc. is engaged in insurance and consumer finance operations through a number of subsidiary companies. As a holding company, Conseco, Inc. is a separate legal entity that is distinct and apart from its subsidiary insurance companies.

Conseco, Inc.’s subsidiary insurers are governed by state laws that are designed to protect the interests of the policyholders. Insurance companies are not eligible to file for bankruptcy under the federal bankruptcy code.

Conseco, Inc.’s bankruptcy filing does not relate to the obligations of its insurance subsidiaries, which continue to operate under their own management. The Conseco subsidiary insurance companies have adequate capital, reserves and liquidity to meet their obligations to policyholders at this time.

OFIS has been working very closely with insurance regulators from all other states, with particular emphasis on coordination with the states where Conseco’s insurance companies are domiciled. I will continue to closely monitor the situation to assure the protection of Michigan consumers doing business with the subsidiary insurance companies of Conseco, Inc.

Conseco, Inc., owns thirteen subsidiary insurance companies that write life insurance, health insurance and annuities. Ten of the thirteen companies do business in Michigan including:

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The Michigan Office of Financial and Insurance Services (OFIS) is responsible for the regulation of Blue Cross Blue Shield, 29 HMOs, 138 banks, 280 credit unions, almost 1,500 insurance companies, 1,583 investment advisers, 2,164 securities broker-dealers, 6,000 consumer finance lenders, 89,000 insurance agents, and 120,715 securities agents. OFIS is part of the Department of Consumer and Industry Services and is primarily fee-funded, requiring minimal public tax dollars for its regulatory and consumer assistance activities. OFIS has insurance, financial institutions and securities information available online at the OFIS web site, www.michigan.gov/ofis, or at the Michigan government home page, www.michigan.gov. All information is also available through the OFIS toll free number, (877) 999-6442. If you would like to receive OFIS press releases electronically, please email ofis-info@michigan.gov.