COMMONWEALTH OF MASSACHUSETTS
SUFFOLK, SS.

SUPREME JUDICIAL COURT
FOR SUFFOLK COUNTY
NO.
LINDA L. RUTHARDT, as she is
COMMISSIONER OF INSURANCE of the
COMMONWEALTH OF MASSACHUSETTS,


Plaintiff,
TRUST INSURANCE COMPANY and
TRUST ASSURANCE COMPANY,

Defendants.

PETITION FOR ORDER DIRECTING LIQUIDATION OF TRUST INSURANCE COMPANY AND APPOINTMENT OF PERMANENT RECEIVER FOR TRUST INSURANCE COMPANY AND TRUST ASSURANCE COMPANY

  1. Linda L. Ruthardt, as she is the Commissioner of Insurance of the Division of Insurance of the Department of Banking and Insurance of the Commonwealth of Massachusetts, by and through Thomas F. Reilly, Attorney General of the Commonwealth of Massachusetts, brings this petition pursuant to G.L. c. 175, § 180C, seeking an order directing her to liquidate Trust Insurance Company and appointing her as Permanent Receiver of Trust Insurance Company and Trust Assurance Company.

  2. The Supreme Judicial Court has exclusive and original jurisdiction of these proceedings pursuant to G.L. c. 175, §§ 180B and 180C.

  3. The plaintiff is Linda L. Ruthardt, as she is the Commissioner of Insurance of the Division of Insurance of the Department of Banking and Insurance of the Commonwealth of Massachusetts (the "Commissioner"). Pursuant to G.L. c. 175, § 3A, the Commissioner is charged with the administration and enforcement of the insurance laws of the Commonwealth.

  4. The defendant Trust Insurance Company ("Trust Insurance") is a domestic stock insurance company organized under the laws of the Commonwealth. Trust Insurance has its principal place of business in Taunton, Massachusetts, and is a wholly-owned subsidiary of Trust Group, Inc., a Massachusetts general business corporation.

  5. The defendant Trust Assurance Company ("Trust Assurance") is a domestic stock insurance company organized under the laws of the Commonwealth. Trust Assurance has its principal place of business in Taunton, Massachusetts, and is a wholly-owned subsidiary of Trust Insurance.
  6. On February 10, 2000, the Commissioner filed with the Court a Verified Complaint and Request for Appointment of Temporary Receiver with respect to Trust Insurance and Trust Assurance pursuant to G.L. c. 175, " 180B. The Court issued on that date a Temporary Injunction and Order Appointing Temporary Receiver, which among other things appointed the Commissioner as Temporary Receiver ("Temporary Receiver") of Trust Insurance and Trust Assurance for the purposes of rehabilitating them and conserving their assets.

  7. As described in the Affidavit of Linda L. Ruthardt dated June 29, 2000, filed herewith, the Commissioner, as Temporary Receiver, and her staff and consultants have sought since the commencement of the proceeding to determine the solvency of Trust Insurance and Trust Assurance.
  8. For the reasons set forth in the June 29, 2000, Affidavit of Linda L. Ruthardt, the Commissioner has determined that Trust Insurance, a domestic company which is the subject of a rehabilitation proceeding under G.L. c. 175, § 180B, is insolvent and should be liquidated within the meaning of G.L. c. 175, § 180C. Therefore, grounds exist to order the liquidation of Trust Insurance and appoint the Commissioner as Permanent Receiver of Trust Insurance pursuant to G.L. c. 175, § 180C.

  9. While Trust Assurance is solvent, it is wholly-owned by and has no operating structure independent of Trust Insurance, which is insolvent. Trust Assurance's condition is accordingly such as to render its transaction of business outside of receivership hazardous to the public and to its policyholders and creditors within the meaning of G.L. c. 175, § 6. Therefore, grounds exist and will continue to exist for the receivership of Trust Assurance under G.L. c. 175, § 180B, and the Commissioner should be appointed as Permanent Receiver of Trust Assurance pursuant to G.L. c. 175, § 180B.
WHEREFORE, the Commissioner prays that the Court:

(1) Set a date for a hearing on this petition pursuant to G.L. c. 175, § 180C, for Trust Insurance and G.L. c. 175, § 180B, for Trust Assurance, and issue an order of notice in the form submitted herewith;

(2) After due notice and hearing, find that Trust Insurance is insolvent within the meaning of G.L. c. 175, § 180C, issue an order in the form submitted herewith directing the liquidation of Trust Insurance and appointing the Commissioner as Permanent Receiver of Trust Insurance pursuant to G.L. c. 175, § 180C, to take possession of the property and effects of Trust Insurance, to settle its affairs and to distribute its assets subject to such rules and orders as this Court or a Justice thereof may prescribe, and vacate the Temporary Injunction and Order Appointing Temporary Receiver as to Trust Insurance;

(3) After due notice and hearing, find that Trust Assurance's condition is such as to render its transaction of business outside of receivership hazardous to the public and to its policyholders and creditors within the meaning of G.L. c. 175, § 6, issue an order in the form submitted herewith appointing the Commissioner as Permanent Receiver of Trust Assurance pursuant to G.L. c. 175, § 180B, and vacate the Temporary Injunction and Order Appointing Temporary Receiver as to Trust Assurance; and

(4) Grant such other and further relief as may be appropriate.


LINDA L. RUTHARDT
COMMISSIONER OF INSURANCE

By her attorneys,

THOMAS F. REILLY
ATTORNEY GENERAL


____________________________
J. David Leslie BBO # 294820
Special Assistant Attorney General
Eric A. Smith BBO # 546244
Rackemann, Sawyer and Brewster, P.C.
One Financial Center
Boston, Massachusetts 02111
(617) 542-2300
Date: June 29, 2000