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):

August 9, 2007

Acceptance Insurance Companies Inc.

(Exact name of registrant as specified in its charter)

Delaware	1-7461	31-0742926
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

300 West Broadway Suite 1600         Council Bluffs, Iowa	51503
(Address of principal executive offices)	(Zip Code)

                            (712) 329-3600                            

(Registrant’s telephone number, including area code)

                                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 January 7, 2005, Acceptance Insurance Companies Inc. (the “Company” or “AICI”) filed a voluntary petition (“Bankruptcy Case”) under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the District of Nebraska (the “Bankruptcy Court”). Additionally, two Company subsidiaries, Acceptance Insurance Services, Inc. and American Agrisurance, Inc., filed voluntary petitions under Chapter 7 of the Bankruptcy Code on January 7, 2005 in the same venue. The Company will remain in possession of its assets and properties, and continue to operate its businesses and manage its properties as debtors-in-possession pursuant to Sections 1107(a) and 1108 of the Bankruptcy Code.

On January 26, 2005, the Company submitted to the Securities and Exchange Commissioner (the “SEC”) a statement of intention to file monthly operating reports (the “Monthly Reports”), which it is required to file with the U.S. Bankruptcy Trustee and the Bankruptcy Court in connection with the Bankruptcy Case, during the pendency of the Bankruptcy Case in lieu of certain reports it would otherwise file as required by the Securities Exchange Act of 1934, as amended. The Company’s Monthly Report for July 2007 was filed by the Company with the Bankruptcy Court on August 9, 2007, and is filed herewith as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits.

(99.1) Monthly Operating Report filed by the Company with the United States Bankruptcy Court for the District of Nebraska on August 9, 2007.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: August 9, 2007	ACCEPTANCE INSURANCE COMPANIES INC.
	By:	/s/ John E. Martin
		John E. Martin, President and Chief Executive Officer

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Monthly Operating Report filed by the Company with the United States Bankruptcy Court for the District of Nebraska on August 9, 2007.

EX-99.1

Exhibit 99.1

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1A

	2/28/07		3/31/07		4/30/07		5/31/07		6/30/07		7/31/07
CURRENT ASSETS:
Cash (Attach Recons. & Bk Stmts.)	1,170		1,702		1,005		810		1,144		923
Investment securities, at market	1,743,283		1,725,902		1,617,563		1,610,856		1,520,322		1,497,261
Prepaid expense & deposits	60,000		60,000		60,000		60,000		60,000		60,000
TOTAL CURRENT ASSETS	1,804,453		1,787,604		1,678,568		1,671,666		1,581,466		1,558,184
OTHER ASSETS:
Note receivable from AIC	20,000,000		20,000,000		20,000,000		20,000,000		20,000,000		20,000,000
Valuation allowance	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)	(20,000,000	)
Investment in AIC, at underlying book value	11,736,045		11,736,045		11,863,974		11,863,974		11,863,974		11,945,142
Contingent claims	21,500,000		21,500,000		21,500,000		21,500,000		21,500,000		21,500,000
TOTAL OTHER ASSETS	33,236,045		33,236,045		33,363,974		33,363,974		33,363,974		33,445,142
TOTAL ASSETS	35,040,498		35,023,649		35,042,542		35,035,640		34,945,440		35,003,326

I CERTIFY UNDER PENALTY OF PERJURY THAT THIS 5 PAGE OPERATING REPORT IS TRUE AND CORRECT.

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-1B

	2/28/07		3/31/07		4/30/07		5/31/07		6/30/07		7/31/07
LIABILITIES:
Post-Petition debt (Sched. C)	37,967		34,821		33,409		73,306		54,960		120,179
Pre-Petition Debt:
Litigation claims	22,000,000		22,000,000		22,000,000		22,000,000		22,000,000		22,000,000
Unsecured liabilities	46,054		46,054		46,054		46,054		46,054		46,054
Unsecured debt	116,110,260		116,110,260		116,110,260		116,110,260		116,110,260		116,110,260
TOTAL LIABILITIES	138,194,281		138,191,135		138,189,723		138,229,620		138,211,274		138,276,493
SHAREHOLDERS EQUITY:
Preferred stock	0		0		0		0		0		0
Common stock	6,274,000		6,274,000		6,274,000		6,274,000		6,274,000		6,274,000
Paid-in capital	199,660,000		199,660,000		199,660,000		199,660,000		199,660,000		199,660,000
Treasury stock	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)	(29,969,000	)
Retained earnings:
As of filing date	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)	(281,005,796	)
After filing date	1,887,013		1,873,310		1,893,615		1,846,816		1,774,962		1,767,629
TOTAL SHAREHOLDERS EQUITY	(103,153,783	)	(103,167,486	)	(103,147,181	)	(103,193,980	)	(103,265,834	)	(103,273,167	)
TOTAL LIABILITIES AND SHAREHOLDER EQUITY	35,040,498		35,023,649		35,042,542		35,035,640		34,945,440		35,003,326

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-2

STATEMENT OF INCOME

	2/28/07		3/31/07		4/30/07		5/31/07		6/30/07		7/31/07
REVENUE:
Net investment income	6,966		7,354		7,290		6,995		6,350		6,769
Net realized gain	0		0		0		0		0		0
Other	0		0		0		0		631		0
OPERATING EXPENSES:
Salaries and benefits	(7,222	)	(7,222	)	(7,221	)	(7,022	)	(6,949	)	(6,949	)
Board fees and expenses	0		0		0		0		(85	)	0
Financial advisor fees and expenses	0		0		0		0		0		(75,000	)
Legal fees and expenses	(11,142	)	(11,882	)	(104,708	)	(44,805	)	(63,486	)	(13,315	)
Accounting fees and expenses	0		0		0		0		(6,326	)	0
Insurance	0		0		0		0		0		0
Franchise taxes	0		0		0		0		0		0
Filing fees and expenses	(4,173	)	(1,947	)	(2,979	)	(1,963	)	(1,953	)	(5	)
Miscellaneous	(69	)	(5	)	(5	)	(5	)	(36	)	0
NET OPERATING INCOME / LOSS	(15,640	)	(13,702	)	(107,623	)	(46,800	)	(71,854	)	(88,500	)
OTHER INCOME (EXPENSE):
Interest expense	0		0		0		0		0		0
Income tax refund	0		0		0		0		0		0
Equity in operating earnings of AIC	0		0		1,250		0		0		165,848
Equity in unrealized losses of securities of AIC	0		0		126,679		0		0		(84,680	)
TOTAL OTHER INCOME (EXPENSE)	0		0		127,929		0		0		81,168
NET INCOME (LOSS)	(15,640	)	(13,702	)	20,306		(46,800	)	(71,854	)	(7,332	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

Form OPR-3

SOURCES AND USE OF CASH

	2/28/07		3/31/07		4/30/07		5/31/07		6/30/07		7/31/07
CASH DIFFERENCE:
Current ending cash balance	1,170		1,702		1,005		810		1,144		923
Less ending prior month balance	(824	)	(1,170	)	(1,702	)	(1,005	)	(810	)	(1,144	)
NET CASH INCREASE (DECREASE)	346		532		(697	)	(195	)	334		(221	)
SOURCES OF CASH:
Net income (loss)	(15,640	)	(13,702	)	20,306		(46,800	)	(71,854	)	(7,332	)
Equity in earnings and unrealized losses of AIC	0		0		(127,929	)	0		0		(81,168	)
Decrease in:
Receivables	0		0		0		0		0		0
Marketable securities	12,744		17,381		108,340		6,707		90,534		23,061
Increase in:
Post- petition debt	3,242		0		0		39,898		0		65,218
Pre-petition debt	0		0		0		0		0		0
TOTAL SOURCES OF CASH	346		3,679		717		(195	)	18,680		(221	)
USES OF CASH:
Increase in:
Receivables	0		0		0		0		0		0
Marketable securities	0		0		0		0		0		0
Decrease in:
Post- petition debt	0		(3,147	)	(1,414	)	0		(18,346	)	0
Pre-petition debt	0		0		0		0		0		0
TOTAL USES OF CASH	0		(3,147	)	(1,414	)	0		(18,346	)	0
NET CASH INCREASE (DECREASE)	346		532		(697	)	(195	)	334		(221	)

CASE NAME: Acceptance Insurance Companies Inc.

CASE NO: 05-80059

SCHEDULE C

SCHEDULE OF POST PETITION

	2/28/07	3/31/07	4/30/07	5/31/07	6/30/07	7/31/07
TRADE ACCOUNTS PAYABLE	37,967	34,821	33,409	73,306	54,960	120,179
PAYROLL AND PAYROLL TAXES	0	0	0	0	0	0
TAXES PAYABLE	0	0	0	0	0	0
TOTAL POST PETITION DEBT	37,967	34,821	33,409	73,306	54,960	120,179