Acceptance Insurance Chosen as Exclusive Marketer by Koch Industries.

OMAHA, Neb.--(BUSINESS WIRE)--Jan. 25, 1999--Acceptance Insurance Companies' (NYSE:AIF) crop insurance subsidiary, American Agrisurance, and Koch Agriculture Company, a subsidiary of Koch Industries, Inc., today announced the introduction of Koch's RevMax 90/90 crop insurance policy, a product which will serve Midwestern farmers seeking innovative financial tools to help them manage production and price risk.

Koch has selected American Agrisurance as the exclusive marketer for the RevMax 90/90 product. First introduced in a pilot program in 1998, RevMax is designed to provide more coverage than the standard Crop Revenue Coverage policy, a product developed by American Agrisurance and first introduced in 1996.

The RevMax 90/90 policy gives farmers the opportunity to share risk and reward with Koch and provides revenue protection starting at 90% of a farmer's actual production history yield and 90% of the price.

All RevMax 90/90 policies will be required to buy a 65 percent CRC policy which Acceptance will insure. Koch's RevMax policy will be additional coverage provided by Koch which the farmer can purchase over the CRC levels.

There has been a growing demand from farmers for ways to address the impact of the 1996 Farm Bill, the elimination of disaster payments, the decline in grain prices and reduced profit margins. The RevMax 90/90 policy answers these concerns in a way that was well received during the 1998 introduction. If the farmer has excess revenues, he shares a portion of those excess revenues with Koch as his premium. If the farmer has a loss of revenues, Koch covers a portion of those losses, down to a point below which further losses are fully covered. In this loss situation, the farmer pays no risk/share premium.

"RevMax was designed to help producers maximize their profits by supporting more effective marketing plans and to help smooth their profits from year to year by effectively shifting all, or a substantial portion, of their crop insurance premiums from lower revenue years to higher revenue years," according to Bob McGrew, Vice President of Koch Agriculture. RevMax 90/90 is a result of several years of research and development in the area of risk management, and the RevMax 90/90 product was among the Koch Agriculture Company capabilities highlighted in a recent Forbes magazine article on Koch Agriculture Company's parent company, Koch Industries, Inc.

The most unique aspect of this program is the closer partnership between growers and insurers. "For the first time, producers can join in partnerships in which we all share the risks - and rewards - of crop production," McGrew said.

"We are pleased to enter into this agreement with Koch as a further demonstration of the leadership of Koch and American Agrisurance in providing the types of insurance coverage American producers need to succeed during these times of agricultural independence," said Rick Gibson, Chairman and CEO of American Agrisurance.

RevMax will be marketed exclusively through crop insurance agencies affiliated with American Agrisurance, Inc., the nation's third-largest crop insurance company. For 1999, availability is limited to a total of one million acres for corn producers in the states of Illinois, Iowa and Nebraska.

Acceptance Insurance is an A- rated property and casualty insurance company concentrating on writing specialty coverages throughout the United States not generally emphasized by standard insurance carriers. The Company's insurance operations are conducted through its six insurance subsidiaries and one insurance agency. The Company selects underwriting specialties within the property and casualty industry that provide a diversified portfolio of products, with the goal of producing underwriting results better than the industry average.