The Crusader Insurance Company ("Crusader") was incorporated under the laws of California in June 1976 and commenced business in January 1985. Crusader is a wholly-owned subsidiary of Unico American Corporation (Unico), under an insurance holding company system. Crusader is licensed to transact multiple property and casualty insurance lines of business in Arizona, California, Nevada, Oregon, and Washington. The vast majority of the direct business was written in the state of California. Crusader's principal lines of business written is commercial multiple perils, which accounted for approximately 99% of the Company's total premiums written. Classes of business include apartments, commercial buildings, auto-body shops, auto dealers, trucking, towing operators, bars, and restaurants. Business is produced primarily through Crusader's affiliated general agent, Unifax Insurance Systems, Inc., which works with independent agents and brokers.
On September 24, 2021, and effective immediately, the board of directors voted to cease writing new and renewal business, other than the renewals required by regulation. As a result no new or renewal policies have been issued in the last 12 months. Crusader was placed in conservation on June 7, 2023 as a result of the company being deemed to be operating in a hazardous condition. As of March 31, 2023, Crusader reported $8.1 million in surplus, a reduction of approximately $12 million over the prior twelve months. As of April 28, 2023 Crusader had approximately 350 open claims with case reserves of $23 million. It is estimated the remaining open claim run-off will require approximately a year of conservation to complete, and given the cost to operate the run-off program and Crusader's history of adverse claim development the Commissioner was compelled to seek a conservation order to ensure Crusader had the best possible chance to address all of its obligations.
On June 10, 2026 the California Insurance Commissioner was appointed statutory Liquidator (the "Liquidator") of Crusader Insurance Company ("Crusader") by order of the Superior Court of California County of Los Angeles (the "Court"). Pursuant to Insurance Code section 1016, the Commissioner has determined that he cannot effect rehabilitation of Crusader; that it would be futile to continue to proceed as Conservator with conducting the business of Crusader; that Crusader is insolvent within the meaning of section 985, subdivision (a)(2), in that Crusader is unable to meet its financial obligations as they become due; and that such conditions are grounds for liquidation under section 1016.
The Commissioner therefore has petitioned to liquidate and wind up the business of Crusader. Given Crusader's financial condition, and the existence of legal grounds for liquidation, and the Commissioner's obligation to policyholders, creditors, and the public, an order of liquidation is necessary and appropriate.
Crusader has open claims that will be transferred to the California Insurance Guarantee Association (CIGA). CIGA is a statutory entity created to provide limited protections for policyholders whose insurers are financially insolvent and unable to pay claims. CIGA's obligation to pay covered claims was triggered by this court order of liquidation with a finding of insolvency against the insurer. CIGA's contact information is as follows:
California Insurance Guarantee Association
P.O. Box 29066
Glendale, CA 91209
