California Insurance Commissioner Moves to Place Crusader Insurance Company, Principal Subsidiary of Unico American Corporation into Conservation

CALABASAS, CA / ACCESSWIRE / June 2, 2023 / Unico American Corporation (the "Company") announced that the Company 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"). Crusader is a California insurance company and its principal regulator is the Commissioner.

The Petition was filed with the Superior Court of California, Los Angeles County, Central District (the "Court"). The Petition is 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 which 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 Petition states that the Crusader is operating in a hazardous financial condition and that because of its quarterly statutory financial statement as of March 31, 2023, the actuarial report on the estimated unpaid claims liabilities as well as the costs of the continued operation of Crusader it is 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, the Commissioner, as Conservator (the "Conservator"), will take control of Crusader and conduct its business. The Conservator will take possession and control of all assets of Crusader. The Conservator will have all the powers of the directors, officers and managers of Crusader and the authority of such persons will be suspended except as for such powers as the Conservator may redelegate. The Order will enjoin the directors, officers, agents, and employees of Crusader from transacting any business of Crusader except as may be expressly authorized by the Conservator. The Order will also 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. The proposed Order will appoint Joseph Holloway as Deputy Conservator and he will have the powers of the Conservator.