Progressive Files Suit against Operators of Philadelphia Chiropractic Clinic; Suit Alleges Fraud and Seeks Nearly $250,000 in Damages

PHILADELPHIA--June 3, 2005--Several subsidiaries of The Progressive Group of Insurance Companies (Progressive) today filed suit against the owners and operators of All-Care Chiropractic P.C., a Philadelphia-based medical provider that the companies allege has been carrying out schemes in Pennsylvania designed to defraud them since 2001.

The suit, filed in Philadelphia federal court, alleges that All-Care owners and operators, Richard Walinsky and Eileen Means, conspired to commit fraud by, among other things, charging for medical services never performed and by administering, and billing for, unnecessary and excessive treatments. The suit also alleges that the defendants used improperly licensed and unsupervised personnel for in-home patient visits.

In August 2004 the Pennsylvania Attorney General's Office announced that 23 people had been arrested in connection with the insurance fraud schemes, including Walinsky and Means.

According to the suit, the defendants produced and submitted to Progressive fraudulent medical reports and bills that did not accurately reflect the treatment provided to patients. Further, it's alleged that the defendants misrepresented the location of the treatment in bills and records to disguise the fact that unsupervised treatment was performed off premises by support personnel, a violation of state law.

"The type of abuse alleged in the complaint is unconscionable," said Kurt Lloyd, special investigations manager, Progressive. "We have an obligation to fight fraud to keep the cost of insurance down for everyone. If we don't, premiums can skyrocket and we can all become victimized by fraud."

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 products and services of the Progressive Direct Group of Insurance Companies are marketed directly to consumers by phone at 1-800-PROGRESSIVE and online at progressivedirect.com through the Progressive Direct brand. The Drive Group of Progressive Insurance Companies offers insurance through more than 30,000 independent insurance agencies that market their products and services through the Drive Insurance from Progressive brand. For more information, go to driveinsurance.com. 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 progressive.com.