SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 3, 2000
ACCEPTANCE INSURANCE COMPANIES INC.
(Exact name of registrant as specified in its charter)
Delaware 1-7461 31-0742926
(State of Incorporation) (Commission File Number)(IRS Employer Identification
Number)
222 S. 15th Street, Suite 600 North
Omaha, Nebraska 68102
(Address of principal executive offices) (Zip Code)
(402) 344-8800
(Registrant's telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
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Item 5. Other Events.
(a) The registrant issued the following press release on
July 3,2000:
For Immediate Release
ACCEPTANCE SETTLES RICE PRODUCER CLASS ACTION
(Omaha, Nebraska, July 3, 2000). The United States District Court in
Little Rock, Arkansas today approved settlement of a class action by rice
producers against Acceptance Insurance Companies Inc. (NYSE: AIF) and several
affiliated companies. Based on a June 30, 2000 hearing, the Court's Order
determined the previously announced settlement terms, preliminarily approved
May 1, are fair, reasonable and adequate, and in the best interest of the
Settlement Class.
A Court-appointed Settlement Master, retired Arkansas Circuit Court
Judge Lawrence Dawson, will now allocate the $3.7 million settlement fund,
which Acceptance previously placed in escrow, among the rice producers who
submitted claims. Today's Order dismisses the class action lawsuit, and
approves a complete and final release of all defendants.
John Martin, President and Chief Executive Officer of Acceptance, said
that in addition to settlement of this lawsuit the Company also had resolved
all concerns of state insurance regulators arising from the unprecedented
demand for the Company's products during early 1999. He added, "We are very
pleased to conclude all of the issues resulting from the 1999 spring sales
season. Our increased emphasis on crop insurance, and on delivering innovative
and leading specialty insurance products to our valued customers, can now
continue without the distractions of these past events."
American Agrisurance, an Acceptance affiliate, developed both of the
first two forms of crop revenue insurance ever made available to rice
producers, CropRevenueCoverage(C) and CRCPlus(R). Kim Gibson, President of
American Agrisurance, described the settlement as "a major step forward for
rice producers and for our Company." Gibson also said, "Today AmAg is working
very hard to develop alternative insurance products for the thousands of rice
producers who showed last year that they need better crop insurance than
they've had in the past, and we are determined to succeed."
Acceptance Insurance Companies Inc. is an insurance holding company
providing specialized crop, property and casualty insurance products throughout
the United States. American Agrisurance, the Company's wholly owned crop
insurance marketing subsidiary, is a widely recognized leader in the crop
insurance industry.
Contacts:
John E. Martin Kim R. Gibson
President and Chief Executive Officer President
Acceptance Insurance Companies Inc. American Agrisurance, Inc.
800 228 7217 800 999 7475
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
ACCEPTANCE INSURANCE COMPANIES INC.
By /s/ J. Michael Gottschalk
J. Michael Gottschalk, Chief Legal Officer,
General Counsel and Secretary
July 3, 2000
