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.
