8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): June 21, 2005

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, 10th Floor, Columbus, Ohio		43215
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 614-228-2800

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.

On June 21, 2005, Ohio Indemnity Company, a wholly owned subsidiary of Bancinsurance Corporation, sent a letter to its customers relating to A.M. Best's reaffirmation of its rating. A copy of the form of such letter is attached hereto as Exhibit 99.1 and incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

99.1 Form of Customer Letter

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
June 24, 2005	By:	/s/ John S. Sokol
		Name: John S. Sokol
		Title: President

Exhibit Index

Exhibit No.	Description
99.1	Form of Customer Letter

EX-99.1

A.M. Best today reaffirmed Ohio Indemnity’s B++ (Very Good) rating, which was assigned in February 2005. Our rating was lowered from A (Excellent) at that time due in part to issues related to Ernst & Young’s decision to withdraw their opinions for 2001 to 2003 and cease work on the 2004 audit as well as uncertainty related to a discontinued bail and immigration bond program that Ohio Indemnity reinsured. A copy of their public announcement is enclosed.

We are disappointed in A.M. Best’s decision. The Company has made substantial progress during the past month, including: 1) Skoda, Minotti & Co. issued an unqualified statutory audit report on Ohio Indemnity for 2003 and 2004, 2) Merlinos & Associates, Inc. issued an unqualified actuarial opinion on the adequacy of our reserves for potential losses on bail and immigration bonds as of March 31, 2005 and 3) the Audit Committee’s independent investigation reported no intentional misconduct by management as previously alleged by Ernst & Young. We also are working toward SEC compliance by having audited financials for Bancinsurance Corporation available as soon as practicable.

Matters related to the discontinued bond program have been isolated and are not affecting our core lines of business. We believe Ohio Indemnity’s current rating does not reflect upside potential from the outcome of arbitration proceedings on the discontinued bond program nor does it reflect our current financial position. We look forward to the future with confidence, bolstered by our history of conservative management and solid performance based on a focused growth strategy.

We appreciate your continued interest and will keep you informed of our progress.

Sincerely,

John S. Sokol
President
Ohio Indemnity Company