UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of Earliest Event Reported): | January 11, 2010 |
Bancinsurance Corporation
__________________________________________
(Exact name of registrant as specified in its charter)
| Ohio | 0-8738 | 31-0790882 |
| _____________________ (State or other jurisdiction | _____________ (Commission | ______________ (I.R.S. Employer |
| of incorporation) | File Number) | Identification No.) |
| 250 East Broad Street, 7th Floor, Columbus, Ohio | 43215 | |
| _________________________________ (Address of principal executive offices) | ___________ (Zip Code) |
| Registrant’s telephone number, including area code: | 614-220-5200 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other Events.
As previously reported, Bancinsurance Corporation, through its wholly owned subsidiary Ohio Indemnity Company (collectively, the "Company"), entered into an arbitration proceeding in 2004 with Harco National Insurance Company ("Harco"), one of the insurance carriers that participated in the discontinued bond program. In August 2006, the Harco arbitration panel issued its Final Award and Order ordering each of the reinsurers participating in the arbitration, including the Company, to pay its proportionate share of past and future claims paid by Harco, subject to certain adjustments, offsets and credits (the "Final Order").
On January 11, 2010, the Company entered into a written settlement agreement with Harco resolving all liabilities and obligations (including any potential future liabilities and obligations) between the Company and Harco relating to the discontinued bond program and the Final Order. As of September 30, 2009, the Company had reserved $1,885,895 for Harco. As a result of the settlem ent, the Company reduced its reserve to $1,450,000 which will result in an increase in pre-tax income of $435,895 ($287,690 after tax) during the fourth quarter of 2009.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Bancinsurance Corporation | ||||
| January 15, 2010 | By: | /s/ Matthew C. Nolan | ||
| Name: Matthew C. Nolan | ||||
| Title: Vice President, Chief Financial Officer, Treasurer and Secretary | ||||
