Frontier Insurance Group Inc. announced it has filed with theU.S. Securities and Exchange Commission for voluntary Chapter 11bankruptcy protection in the Southern District of New York inPoughkeepsie.

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The Rock Hill, N.Y.-based company, parent of Frontier InsuranceCompany, in rehabilitation, said in a statement that it filed July5 for the voluntary protection.

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Frontier said it intends to "file a plan of reorganization andre-emerge from the Chapter 11 proceeding."

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Chairman Jerry Goldress stated, "While there is still much workto be done, we believe [the] action is a further step in resolvingthe challenges presented by our financial situation. Seekingprotection under Chapter 11 provides an opportunity to restructurefor the benefit of all our stakeholders."

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Frontier said its subsidiaries are not part of the Chapter 11proceedings. Operations at Frontier Insurance Company, which wasvoluntarily placed in rehabilitation in New York, August 2001;Medical Professional Liability Agency, Ltd.; Spencer DouglasInsurance Agency Inc.; Pioneer Claim Management Inc.; WesternIndemnity Insurance Company, in liquidation in Texas; and RegencyFinancial Corp are expected to continue unchanged and "unaffectedby the company's Chapter 11 proceeding," the company said.

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A.M. Best Co. downgraded Frontier Insurance Company's financialstrength rating of C-minus (Weak) to E (Under regulatorySupervision) in 2001 as the result of the company's agreement withthe New York insurance commissioner in August 2001 to entervoluntary rehabilitation.

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Frontier Insurance Group Inc. was incorporated in Delaware in1986.

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