Exhibit No. 99

                       Press release dated March 17, 1999

                            MOTOR CLUB OF AMERICA AND
                          NORTH EAST INSURANCE COMPANY
                           REACH DEFINITIVE AGREEMENT

     PARAMUS, NEW JERSEY AND SCARBOROUGH,  MAINE, March 17, 1999 - MOTOR CLUB OF
AMERICA (NASDAQ : MOTR), a property and casualty insurance holding company,  and
NORTH EAST INSURANCE  COMPANY (NASDAQ : NEIC), a property and casualty  insurer,
today announced that they have signed a definitive agreement for MOTR to acquire
NEIC through a merger.

     The terms of the  agreement  are as first  announced  on January  26,  1999
wherein NEIC shareholders will receive, at their individual election,  (a) $3.30
per share of NEIC common stock, (b) one share of MOTR common stock for each 5.25
shares  of  NEIC  common  stock,  or (c) a  combination  thereof.  If  the  NEIC
shareholders  in the  aggregate  elect to exchange more than 50% of their shares
for MOTR stock, the aggregate percentage will be ratably reduced to 50%.

     Consummation  of the  merger is  subject  to the  satisfaction  of  certain
conditions  set  forth in the  merger  agreement,  including  approval  from the
shareholders of MOTR and NEIC and  authorization by state insurance  regulators.
Both MOTR and NEIC expect that these conditions will be satisfied in due course.

     Stephen A.  Gilbert,  President and CEO of Motor Club,  said,  "We are very
pleased to reach a definitive  merger agreement with North East. We look forward
to working  with Ron Libby and the  Maine-based  North East team once all of the
necessary regulatory and shareholder approvals are received. We together believe
that the  merger  will  enable  North  East to  enhance  its  profitability  and
prospects by  diversifying  product  offerings,  reducing its expense  ratio and
strengthening its distribution system."

     The parties also announced that, upon  effectiveness of the merger,  Ronald
A. Libby will become President,  Chief Operating Officer and a Director of North
East. Mr. Libby has been Chief Operating Officer of NEIC since December 1994.

     Ron Libby  stated,  "We have a partner in Motor Club which is  committed to
maintaining  North East as an independent  operation with a Maine presence.  Our
merger with Motor Club will only serve to strengthen our financial  position and




ability  to  compete  in Maine  and the  nearby  region  for both  personal  and
commercial lines business."

     The  conclusion  of the  merger  will  also  mark  the  end  of the  direct
involvement of Robert G. Schatz, North East's President and CEO for the last ten
years.  "North East's  shareholders and  policyholders are now able to look at a
solid  organization  as a result of Bob's  leadership,"  stated Ron Libby.  "His
efforts and vision have remade  North East and enabled  this merger to proceed -
we all owe him a sincere debt of gratitude," Libby added.

     Cochran,  Caronia & Co. is  serving as  financial  advisor to Motor Club of
America.  Sandler,  O'Neill & Partners,  L.P. is serving as financial advisor to
North East.

     Motor Club of America is a property and casualty  insurance holding company
for Motor Club of America Insurance  Company,  which writes personal  automobile
insurance,  and Preserver  Insurance Company,  which writes small commercial and
homeowners  insurance.  Both subsidiaries are separately rated B+ (Very Good) by
A.M. Best, a widely recognized insurance rating and information service.

     North East Insurance  Company is a property and casualty insurer located in
Scarborough, Maine. North East is rated B- (Fair) by A.M. Best. Its common stock
has been publicly traded since 1981.

     Forward-Looking   Statement   Disclaimer.   This  press  release   contains
statements  that are not historical  facts and are  considered  "forward-looking
statements"  (as  defined in the  Private  Securities  Litigation  Reform Act of
1995),  including statements  concerning the expected benefits of the merger and
the expected  future  satisfaction  of conditions to consummation of the merger.
Consummation of the merger and future benefits  therefrom  involve various risks
and  uncertainties,  including the risk of material adverse changes in financial
markets  or  the  condition  of  MOTR  and  NEIC;  risks  of the  imposition  of
unanticipated  regulatory conditions to the merger; risks associated with MOTR's
and NEIC's entry into new markets;  and state regulatory and legislative actions
which can affect the  profitability  of certain lines of business and impede the
companies' ability to charge adequate rates.