june 5, 2000

Superior Court of Quebec grants motion by GISCO, La Compagnie d'Assurances to wind-up GISCO

On Monday, June 5, 2000, the Superior Court of Quebec granted a motion by GISCO, La Compagnie d'Assurances to wind-up GISCO under the provisions of the Federal Winding-Up and Restructuring Act. Mr. André Giroux, C.A., C.I.P., has been appointed as liquidator of the company. Mr. Giroux is Senior Vice President with PricewaterhouseCoopers Inc., in Montreal.

PACICC has status as an inspector in the liquidation and Crawford Adjusters Canada has been retained by the liquidator to run-off the claims.

GISCO,which was licensed to do business only in Quebec, was writing mainly commercial property and commercial liability insurance as well as other types of insurance such as boiler and machinery insurance and surety. PACICC's coverage extends to the boiler and machinery insurance, property insurance and some liability insurance, but not to the surety, nor to the directors and officers, employers' liability, and errors and omissions insurance. There are approximately 5,500 policyholders and about 700 open claim files.

Alex Kennedy, President and Chief Executive Officer of PACICC said, " PACICC will work with the liquidator to determine who is entitled to a refund of pre-paid ("unearned") premiums". Policyholders affected by the insolvency of the company are urged to replace their insurance coverage immediately. Subject to its limits, PACICC will consider claims arising from events on or before the issue of the Wind-up Order and for up to 45 days afterwards i.e. up to and including July 20, 2000. "The 45 day PACICC coverage period" added Mr. Kennedy "should be sufficient for policyholders of the company to replace their policies."

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