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Guaranty National Announces Second Rate Reduction in a Year

5 January 1999

Guaranty National Announces Second Rate Reduction in a Year

    DENVER, Jan. 5 -- For the second time in less than a year,
nonstandard automobile insurer Guaranty National, headquartered in Englewood,
Colorado, has reduced rates for Colorado drivers.  The decrease, which
averages .7 percent, is effective immediately on all new six-month and Lite
Truck policies.  It applies to the renewal of the Company's two one-month
coverages effective January 18, and to the renewal of six-month and Lite Truck
policies on March 4.
    As part of the decrease, Guaranty National has raised the discount cap on
all programs from 35 to 45 percent and the multi-car discount from 20 to
25 percent.
    Additionally, in response to newly-enacted Colorado legislation, the
Company has introduced two changes, which will mean considerable premium
reductions for the state's drivers.  A 20 percent coinsurance option, in
conjunction with PIP/PPO deductible options, is now available, and a loss of
gross income option, previously offered exclusively to insureds with no earned
income, is now an option for all insureds.
    Guaranty National operates in 35 states through a network of approximately
10,000 independent agents.  Along with its affiliates, it carries A.M. Best
ratings of "A(Excellent)" or "A-(Excellent)".  The Company is a wholly-owned
subsidiary of Orion Capital Corporation, a leader in the specialty property
and casualty insurance business.  Orion's other subsidiaries include DPIC
Companies, EBI Companies, Orion Specialty, and Wm. H. McGee.