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USLIFE TO RESERVE RECEIVABLES FROM MARKETING ORGANIZATION IN BANKRUPTCY

 NEW YORK, Feb. 8 /PRNewswire/ -- USLIFE Corporation (NYSE: USH) today announced that its financial statements for the year ended Dec. 31, 1992 will reflect a one-time, after tax charge of $10.6 million (equivalent to $.47 per share on a post split basis) to fully reserve amounts receivable from an association group health marketing organization that has declared bankruptcy.
 In April 1992, All American Life, a USLIFE subsidiary, terminated the contract of Doug Ruedlinger, Inc., a marketing organization, to sell, collect premiums and pay claims on its behalf for student accident and health and other insurance policies. Doug Ruedlinger, Inc. and its affiliates ceased processing and paying claims in May, 1992, and All American was then required to assume the functions of processing and paying claims. As previously reported by the company, All American has been engaged in mediation, arbitration and litigation with Doug Ruedlinger, Inc. and certain of its affiliates. As a result of the bankruptcy filing of Doug Ruedlinger, Inc. and certain of its affiliates, USLIFE's subsequent assessment of claims, the future costs that would be incurred and the probability of recoveries, the company has determined to fully reserve the amounts receivable in this matter by means of a one-time, after-tax charge of $10.6 million.
 In announcing the recording of the reserve, Gordon E. Crosby, Jr., chairman of the board, president and chief executive officer of USLIFE, said: "The company will vigorously pursue its interests in this matter. However, we have elected to record this on-?time charge to remove this issue from the scope of the company's ongoing operations."
 -0- 2/8/93
 /NOTE TO EDITORS: USLIFE Corporation is a life insurance based holding company whose principal subsidiaries engage in the life insurance business. With nationwide operations, the USLIFE Life Insurance Division has three ordinary life insurance companies and a credit insurance group with approximately $110 billion of life insurance in force as of Sept. 30, 1992. Additionally, there are five other subsidiaries that furnish the life insurance companies with investment advisory, broker-dealer, real estate, data processing and administrative services./
 /CONTACT: Richard P. Keating, vice president-corporate communications of USLIFE Corporation, 212-709-6227/
 (USH)


CO: USLIFE Corporation ST: New York IN: INS SU:

GK-LR -- NY034 -- 3981 02/08/93 10:15 EST
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Publication:PR Newswire
Date:Feb 8, 1993
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