DCAP Announces Commercial Mutual Plan of Conversion Approval by Policyholders
June 08 2009 - 3:00PM
Business Wire
DCAP Group, Inc. (NASDAQ: DCAP) today announced that the
Commercial Mutual Insurance Company (�CMIC�) Plan of Conversion
(the �Plan�), providing for a conversion of CMIC from an advance
premium cooperative to a stock property and casualty insurance
company, was approved by CMIC�s policyholders. The Plan provides
that, upon the effectiveness of the conversion, DCAP will receive a
100% equity interest in CMIC upon conversion of its $3,750,000
principal amount of surplus notes of CMIC. In addition, DCAP will
forgive all accrued and unpaid interest on the surplus notes as of
the date of conversion. Upon conversion, eligible policyholders
will share in a distribution of $534,069. The contemplated
effective date for the conversion is July 1, 2009.
The name of the new insurance company will be �Kingstone
Insurance Company.� DCAP�s name will change to �Kingstone
Companies, Inc.�, as previously approved by its shareholders.
�We are pleased that the policyholders have approved the Plan
and we look forward to the conversion of CMIC to Kingstone
Insurance Company,� said Barry Goldstein. Mr. Goldstein is Chairman
and Chief Executive Office of DCAP and is Chairman and Chief
Investment Officer of CMIC. Mr. Goldstein continued, �Upon the
effectiveness of the conversion, we will have implemented a
significant step in the reformation of our business model from a
retail insurance brokerage operation to the ownership of an
insurance company.�
Forward Looking Statements
Statements in this press release may contain �forward-looking
statements� within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of
historical facts, may be forward-looking statements. These
statements are based on management�s current expectations and are
subject to uncertainty and changes in circumstances. These
statements involve risks and uncertainties that could cause actual
results to differ materially from those included in forward-looking
statements due to a variety of factors. More information about
these factors can be found in DCAP�s filings with the Securities
and Exchange Commission, including its latest Annual Report filed
with the Securities and Exchange Commission on Form 10-K. The
company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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