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SELECTIVE INSURANCE GROUP, INC. ANNOUNCES SETTLEMENT OF JUA ADMINISTRATIVE ACTION

 BRANCHVILLE, N.J., March 11 /PRNewswire/ -- Selective Insurance Group, Inc. (NASDAQ-NMS: SIGI), today announced that on March 10, 1993, the company settled the administrative action filed against it on Feb. 20, 1990, by the acting commissioner of the New Jersey Department of Insurance in connection with the company's performance as a servicing carrier for the New Jersey Automobile Full Insurance Underwriting Association (JUA).
 The settlement, which includes no admission of liability by the company, resulted from the alternate dispute resolution (ADR) process begun in April 1992. The settlement requires the payment of $3.4 million to the JUA and an advance deposit of $13.1 million on account with the Department of Insurance for the benefit of the Market Transition Facility (MTF). The advance deposit will be used to satisfy the statutory obligations of the company to make payments in the future to fund the MTF's deficit. New Jersey law requires that all automobile insurers in the state fund the MTF's deficit.
 Payment of the settlement amount and the deposit will be made in the first quarter of 1993. Management believes that the settlement is reasonable in view of future legal fees and other costs associated with this action. The company had already accrued for amounts necessary to pay the amount of the settlement and the deposit for the MTF, and the settlement will not affect earnings for the first quarter of 1993.
 Selective Insurance Group, Inc., is a holding company with six insurance subsidiaries: Selective Insurance Company of America and Selective Way Insurance Company, based in Branchville, N.J.; Selective Insurance Company of the Southeast and Selective Insurance Company of South Carolina, based in Charlotte, N.C.; Exchange Insurance Company, based in Buffalo, N.Y.; and Charleston Insurance Company, based in Charleston, S.C.
 -0- 3/11/93
 /CONTACT: Thornton R. Land, senior vice president, general counsel and secretary, 201-948-1322, or Dominic J. Addesso, executive vice president and chief financial officer, 201-948-1289, both of Selective Insurance Group/
 (SIGI)


CO: Selective Insurance Group, Inc. ST: New Jersey IN: INS SU:

GK-PS -- NY031 -- 5061 03/11/93 10:51 EST
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Publication:PR Newswire
Date:Mar 11, 1993
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