DATE:

August 25, 2004

TO:

All Interested Parties

FROM:

Craig R. Petersen, Interim Director

On August 18, 2004 a liquidation order was entered in the state of Missouri regarding Casualty Reciprocal Exchange. The claims will be presented to the Michigan Property & Casualty Guaranty Association (MPCGA) in the near future for consideration of payment.

The Casualty Reciprocal Exchange files will be administered from the MPCGA office. The contact information is:

Josie Rea, Claims Manager

Michigan Property & Casualty Guaranty Association

P.O. Box 531266

Livonia, MI 48153-1266

Tel:   248-482-0381

Fax:  248-482-0388

The MPCGA will soon be in the process of receiving claims files from the third party administrators who handled the files for Casualty Reciprocal Exchange. The liquidator intends to advance pay the workers’ compensation indemnity payments for 30 days. The MPCGA is requesting that contested claims be adjourned for 60 days. This will allow time for all files to be set up and reviewed for the proper claim handling.

If you have any questions, please contact me.