Reciprocal of America ("ROA") and
The Reciprocal Group ("TRG") (collectively the "Companies") were placed
into Receivership on January 29, 2003, by the Circuit Court of the City of
Richmond, Virginia. On that date, the Circuit Court appointed the
State Corporation Commission of the Commonwealth of Virginia (the "Commission") as Receiver,
Alfred W. Gross, the Commissioner of the Commission's Bureau of Insurance,
as Deputy Receiver, and Melvin J. Dillon, later replaced by Michael R.
Parker, as Special Deputy Receiver of
for purposes of rehabilitation or liquidation of the Companies.
On June 20, 2003, the Commission entered an Order
of Liquidation with a Finding of Insolvency and Directing the Cancellation
of Direct Insurance Policies (the "Liquidation Order") for the Companies.
The Liquidation Order declared that the Companies are insolvent and that
the Companies should be liquidated in accordance with Title 38.2, Chapter
15 of the Virginia Code, other applicable Virginia law, and any present or
future orders of the Commission.