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[BANCINSURANCE CORPORATION LOGO]

FOR IMMEDIATE RELEASE                                 For Additional Information
                                                      Contact: John Sokol
                                                      President
                                                      (614) 228-2800


                       BANCINSURANCE CORPORATION ANNOUNCES
                 AUTHORIZATION TO PURCHASE UP TO 500,000 SHARES



COLUMBUS, Ohio (August 16, 1999) Bancinsurance Corporation (NASDAQ: BCIS), a
specialty insurance holding company, today announced that its Board of Directors
has authorized the repurchase for up to 500,000 shares of its common stock or
approximately 8% of its outstanding shares.

The Shares will be repurchased, at times and amounts to be determined by
management, as market conditions warrant in the open market or through
negotiated off-market transactions. Repurchased shares will be placed in
treasury and may subsequently be reissued in connection with acquisitions and/or
the Company's stock option plans. The repurchase program will expire on December
31, 2000. As of June 30, 1999, Bancinsurance Corporation had 6,135,179 common
shares outstanding.

Bancinsurance is a specialty property insurance holding company primarily
engaged in providing niche insurance products and services for financial
institutions. With the exception of historical information, this press release
includes forward-looking statements that involve risks and uncertainties,
including, but not limited to, the Company's emphasis on larger accounts, which
contribute to improved corporate profitability. These statements involve risks
and uncertainties, which have been detailed from time to time in the Company's
Securities and Exchange Commission filings, including the Company's Form 10-K
for the year ended December 31, 1998. Actual results may differ materially from
management's expectations.