Item 1.03 Bankruptcy or Receivership
On June 2, 2023, Unico American Corporation (the "Company") announced that it
was notified on June 1, 2023 that the Insurance Commissioner of the State of
California (the "Commissioner") filed a Verified Petition For Order Appointing
the Insurance Commissioner as the Conservator of the principal operating
subsidiary of the Company, Crusader Insurance Company ("Crusader") on May 31,
2023 (the "Petition"). The Petition was filed with the Superior Court of
California, Los Angeles County, Central District (the "Court") as the first step
of actions by the Commissioner to place Crusader into conservation under the
provisions of Section 1011(d) of the California Insurance Code and will result
in control of Crusader being assumed by the Commissioner upon entry of an order
appointing the Commissioner as conservator.
Following the Petition, it is expected that the Commissioner will file an ex
parte application and proposed order of conservation, which is expected to occur
during the week of June 5, 2023. The Commissioner asserts in the Petition that
Crusader is operating in such an impaired financial condition that the further
transaction of business by it will be, and is, hazardous to the policyholders,
creditors and the public. In the Petition, the Commissioner is requesting the
Court to issue an Order appointing the Commissioner as the Conservator of
Crusader. Upon entry of the Order, which the Company expects to occur, the
Commissioner, as Conservator (the "Conservator"), will take control of Crusader
and conduct its business, including all powers of the directors, officers and
managers of Crusader, with the authority of such persons being suspended except
as for such powers as the Conservator may redelegate. The Order will also enjoin
the directors, officers, agents, and employees of Crusader from transacting any
business of Crusader except as may be expressly authorized by the Conservator
and will enjoin all persons from instituting, prosecuting or maintaining any
action and or other legal proceedings against any of the property of Crusader or
from interfering with the conduct of the business by the Conservator.
Forward-Looking Statements
Certain matters discussed in this Current Report on Form 8-K constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements involve many
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements. These forward-looking
statements speak only as of the date hereof, and the Company expressly disclaims
any obligation or undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in its
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
Item 8.01 Other Events
On June 2, 2023, the Company issued a press release announcing the filing of the
Petition. A copy of the press release is attached as Exhibit 99.1 and is
incorporated herein by reference.
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Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release issued by Unico American Corporation on June 2, 2023
104 Cover Page Interactive Data File (embedded within Inline XBRL
document)
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