INSURANCE COMPANIES FILE SUIT AGAINST OWNER AND …



Contacts: Mike Siemienas, Allstate Insurance Company, 847-667-8659

Bill Mellander, Encompass, 847-402-5600

Todd Morgano, Progressive, 440-395-1073

Cathy Oloffson, Country Insurance and Financial Services, 309-821-2171

Dick Ward, National Insurance Crime Bureau, 651-459-8309

INSURANCE COMPANIES FILE SUIT AGAINST

OPERATORS OF MINNESOTA MEDICAL CLINICS

Companies allege fraud and seek more than $1.5 million in damages

in one of the largest medical fraud cases in Minnesota’s history.

HENNEPIN COUNTY, Minn. (June 16, 2004) – Allstate Insurance Company, COUNTRY Insurance & Financial Services, formerly MSI Insurance Companies, Encompass Insurance (through underwriting company Continental Insurance Company) and Progressive Casualty Insurance and other affiliate companies, filed suit today (or date) against the owners and operators of 16 medical clinics that have allegedly carried out schemes to defraud insurance companies in Minnesota since 1999.

The suit claims that Robert Wohfeld, Jeanette C. Couf, and Craig Waltzer conspired to commit fraud by, among other things, illegally soliciting accident victims to receive treatment in chiropractic clinics and other clinics the defendants owned or operated by charging for medical services never performed and by administering and billing for unnecessary and excessive treatments.

According to the suit, the defendants worked with runners who contacted people involved in accidents and then transported them to the defendants’ clinics for chiropractic, physical therapy and other treatments that were unnecessary or excessive. The suit also alleges the treatments were prescribed according to a standardized plan that was not based on the needs of the patient but designed to maximize the clinic’s billings.

“This suit sends the message that we fight fraud aggressively wherever we encounter it because fraud costs take a bite out of all of our pocketbooks, and we have an obligation to keep insurance costs down for consumers,” said Ray Albertini, special investigations unit manager for Progressive. “The National Insurance Crime Bureau estimates that fraudulent insurance claims cost consumers $200 to $300 a year in increased insurance premiums.”

The defendants operated clinics in and around the Minneapolis, St. Paul region under names such as Sport Fit, Inc., S.P.O.R.T. REHAB, Choice Wellness and Sports Rehab, Isles Wellness, Inc., St. Paul Wellness, Inc., Proactive Chiropractic, A Twin Cities Licensed Message Therapy, Inc., Xcel Proactive, Inc., and others.

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The Progressive group of insurance companies, in business since 1937, ranks third in the nation for auto insurance based on premiums written and provides drivers with competitive rates and 24/7, in-person and online service. The companies offer insurance by phone at 1-800-PROGRESSIVE, online at and through more than 30,000 independent insurance agencies in the U.S. The Common Shares of the Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE:PGR. More information can be found at .

COUNTRY Insurance & Financial Services and its alliances serve about 1 million households and businesses throughout the United States. Founded in 1925, the group now has nearly 2,000 exclusive agents in 14 Midwestern and Western states who offer a full range of property/casualty, life and annuity products, as well as financial and estate planning services. Through alliances, affiliations and relationships with independent agents, their geographic reach spans across the United States. The COUNTRY insurance companies have $1.3 billion of property/casualty premium, $600 million in life premium and are consistently rated A+ by A.M. Best. For additional information, visit .

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer. Widely known through the “You’re In Good Hands With Allstate®” slogan, Allstate provides insurance products to more than 16 million households and has approximately 12,900 exclusive agencies and financial specialists in the U.S. and Canada. Customers can access Allstate products and services through Allstate agents, or in select states at and 1-800 Allstate®. EncompassSM and Deerbrook® Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group includes the businesses that provide life insurance, annuity, retirement, banking and investment products through distribution channels that include Allstate agents, independent agents, worksite, financial institutions and broker-dealers.

Encompass Insurance is a part of the Ivantage Group, a division of Allstate Insurance Co. (NYSE: ALL), which provides insurance products through independent agents. Formerly CNA Personal Insurance, Encompass was launched in September 2000 as an insurance brand with more than 20 years of relationships established with independent agents and their customers. Encompass, as a part of the Ivantage Group, is a brand devoted exclusively to independent agents, selling automobile, homeowner and related insurance to 1.2 million customers through a network of more than 3,700 independent insurance agents. Allstate is the exclusive administrator of Encompass personal automobile and home insurance policies issued by the insurance affiliates of CNA Financial Corporation. More information on Encompass Insurance can be found at .

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