INITIAL NOTICE OF INTERSTATE AUTO INSURANCE COMPANY AND KATZ INSURANCE AGENCY, INC., IN RECEIVERSHIP

October 11, 2012, the Insurance Commissioner for the State of Maryland filed a petition with the Circuit Court for Baltimore City (“Court”) requesting that Interstate Auto Insurance Company (“IAIC”), and Katz Insurance Agency, Inc. (“KIA”), be placed into receivership and that a receiver be appointed.

The Court appointed Invotex, Inc. as Receiver (“Receiver”). This is to inform you of the current situation as a policyholder or potential creditor of IAIC and KIA. A copy of the Court’s Order can be found on the web page the Receiver has established at http://www.iaic-kia-receiver.com/.

A receivership places the assets, and the operations of the company into the hands of a third party. The third party receiver also has authority to make all decisions regarding the operations of the company. The goal of the receivership is to rehabilitate IAIC. In other words, the receiver aims to stabilize the financial condition of IAIC and return IAIC to the point that it can resume normal operations without Court supervision.

IAIC is currently not allowed to write new policies or renew existing policies. However, policyholders should know that claims for existing policies will be honored by the receiver for Interstate Auto Insurance Company during the rehabilitation. Additionally, consumers should continue to make their installment payments so their policies are not canceled for non-payment.

If you are currently insured by the Maryland Automobile Insurance Fund (MAIF) and have a question about your coverage or wish to make a premium payment, please contact the MAIF Policy Services Department by phone at 1-800-445-1117 or by e-mail at PolicyServices@maif.com for assistance. Or, if you wish to renew or replace your auto insurance and cannot obtain coverage from another insurer you may request coverage though MAIF.

If you are currently insured by IAIC or covered by another insurer and wish to make a premium payment, please call 410-484-8841 or 1-800-736-8841.

If you are insured by IAIC and received a notice of cancellation or non-renewal of your auto insurance, please call 410-358-1905.

If you need additional assistance or wish to file a complaint about your insurance policy please call the Maryland Insurance Administration at 410-468-2340 or 1-800-492-6116, option #3.

The number of policyholders makes it difficult to respond to every telephone inquiry. The Invotex, Inc. Receivership line is 410-824-7139; please leave a detailed message including the name “Interstate and/or Katz” and someone will get back to you as soon as possible. You can also contact the receiver at receiver@iaic-kia-receiver.com.

The Receiver is developing a claim filing process with forms and will place this information on the receivership website as soon as it is available. In addition, the web site will be updated as events warrant.

The Receiver understands the anxiety and worries these events cause and will endeavor to provide additional information as soon as possible. Your patience is greatly appreciated.

Sincerely,

Lester C. Schott
Managing Director
Invotex, Inc.
Receiver for Interstate Auto Insurance Company and Katz Insurance Agency, Inc.