July 24, 2002

Markham General Insurance Company ordered to be wound-up.

On July 24, 2002 the Ontario Superior Court of Justice , on the application of the Superintendent of Financial Services at the Financial Services Commission of Ontario, ordered Markham General Insurance Company ( "Markham General ") to be wound-up under the Winding-up and Restructuring Act. The provisional liquidator appointed by the Court is Deloitte & Touche Inc. ("the liquidator"). .

Alex Kennedy, President and Chief Executive Officer of the Property and Casualty Insurance Compensation Corporation (PACICC), which has been named as an Inspector in the liquidation, said that PACICC will consider claims arising from events that occurred on or before the date of the cancellation of all the policies i.e. June 15, 2002.

While Markham General was licensed in Ontario, British Columbia and Alberta it had stopped writing business in these jurisdictions. Although licensed for Accident and Sickness, Automobile, Boiler and Machinery, Fidelity, Liability and Property Insurance, the bulk of its business was related to Ontario Automobile insurance. PACICC's coverage does not extend to Fidelity insurance.

PACICC is an industry-funded, not-for-profit corporation established by the property and casualty insurance companies in Canada to respond to the claims of policyholders under most policies written by insurers which have become insolvent.

Information about PACICC is available on its website at www.pacicc.com