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): July 19, 2006

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: 614-220-5200

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 1.01 Entry into a Material Definitive Agreement.

On July 19, 2006, the Compensation Committee of Bancinsurance Corporation (the "Company") approved the Company’s 2006 Fiscal Year Executive Officer Bonus Plan (the "Plan"). The material terms of the Plan are summarized on Exhibit 10.1 attached hereto and made a part hereof.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

10.1 Bancinsurance Corporation 2006 Fiscal Year Executive Officer Bonus Plan

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
July 24, 2006	By:	/s/ John S. Sokol
		Name: John S. Sokol
		Title: President

Exhibit Index

Exhibit No.	Description
10.1	Bancinsurance Corporation 2006 Fiscal Year Executive Officer Bonus Plan

EX-10.1

Summary of 2006 Fiscal Year Executive Officer Bonus Plan

The purpose of the Bancinsurance Corporation (the “Company”) 2006 Fiscal Year Executive Officer Bonus Plan (the “Plan”) is to attract, retain and motivate high quality executives and reward executives for Company profitability. Under the Plan, each executive officer is eligible to receive a target maximum bonus equal to a specified percentage of his base salary based upon the achievement of pre-established Company and individual performance goals (with each component being weighted differently based on the executive officer’s position with the Company). The target maximum bonus and the weighting of the Company goal and individual goal components for each executive officer for the 2006 fiscal year are as follows:

				Company
	Target Maximum			Goal/Individual
	Bonus % of Base			Goal Weighted
Executive Officer	Salary			Component
Si Sokol, Chairman and Chief Executive Officer		20	%		100%/0	%
John S. Sokol, President		60	%		100%/0	%
Matthew C. Nolan, Vice President, Chief Financial Officer, Treasurer and Secretary		33	%		70%/30	%
Daniel J. Stephen, Senior Vice President of Lender Services of Ohio Indemnity Company		30	%		70%/30	%
Stephen J. Toth, Vice President of Specialty Products of Ohio Indemnity Company		25	%		70%/30	%

Company Performance Goal
For 2006, the Compensation Committee has established net income as the Company performance goal. Each executive officer will be entitled to receive a bonus (equal to the product of (1) the amount of the executive’s target maximum bonus and (2) the percentage of his bonus allocated to the Company goal component) if the Company achieves a specified minimum amount of net income.

Individual Performance Goal
Individual performance goals are established for each executive officer. For 2006, the individual performance goals established by the Compensation Committee include areas such as performance of individual functional responsibilities, product line and business unit results, completion of major projects and initiatives, and demonstrated management and leadership. Following the completion of the 2006 fiscal year, the Compensation Committee will determine each applicable executive officer’s bonus (equal to up to the product of (1) the amount the executive’s target maximum bonus and (2) the percentage of his bonus allocated to the individual goal component) relating to the individual goal component based upon achievement of the applicable individual goals.