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):
March 15, 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
March 15, 2000:
For Immediate Release
ACCEPTANCE INSURANCE COMPANIES INC. ANNOUNCES
DENIAL OF CLASS CERTIFICATION
(Omaha, Nebraska, March 15, 2000). Acceptance Insurance Companies
Inc. (NYSE: AIF) announced today that plaintiffs' request for class action
status in a pending suit on behalf of all rice farmers who applied for the
Company's CropRevenue CoveragePlus(R) (CRCPlus) has been denied.
In an order filed March 10, the United States District Court for the
Eastern District of Arkansas ruled plaintiffs failed to demonstrate their
claims are typical of class members who elected coverage alternatives different
from the alternatives the plaintiffs chose for themselves, and that a conflict
may exist between persons who withdrew their applications and those who
accepted the Company's offer to provide coverage at 1.5 cents per pound. The
Court said the nature of any damages suffered by plaintiffs was unclear, and
that "the difference in coverage selected or not selected carries with it a
myriad of individualized inquiries such as reliance, formation of a contract,
and nature of damages." Plaintiffs have until March 24 to apply to the federal
Court of Appeals for permission to immediately appeal from the order.
The Court also reaffirmed its earlier dismissal of plaintiffs' claim
the Company acted in bad faith, concluding that the "Arkansas courts would not
extend the tort of bad faith to the fact situation presented here."
"When this action was filed we said it was without merit and would not
deter us from our commitment to provide effective risk management choices to
American agricultural producers," said J. Michael Gottschalk, General Counsel
and Secretary of the Company. "Since that time our companies have made CRCPlus
and other crop insurance products available to thousands of agents and farmers,
just as we said we would. We nevertheless are pleased the Court recognized,
based on the undisputed facts and clear legal precedent referred to in the
Order, that we provided CRCPlus coverage to all rice farmers who chose to
purchase that coverage and that this was not a proper class action."
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 J. Michael Gottschalk
President and Chief Executive Officer General Counsel and Secretary
800 228 7217 800 228 7217
<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
March 15, 2000
