Acceptance Insurance Companies Inc. Reaches Agreement With Risk Management Agency.

OMAHA, Neb.--(BUSINESS WIRE)--June 30, 1999--

Acceptance Insurance Companies Inc. (NYSE:AIF) announced today that is has reached an agreement with the Risk Management Agency (RMA) related to this spring's unforeseen demand for CRCPlus(TM), a proprietary form of supplemental crop insurance offered by the Company's crop division. AIC officials said they are pleased with the agreement, which allows the Company's crop division to move forward as an industry leader in providing quality service and innovative products for farmers and agents.

Under the agreement, Acceptance Insurance will:

-- Establish and administer a $1 million research and education fund

to benefit rice producers in affected areas;

-- Create a strengthened system of checks and balances and

management oversight;

-- Reimburse the Federal Crop Insurance Corporation, administered by

RMA, approximately $1.2 million under the terms of its Standard

Reinsurance Agreement.

Unprecedented demand for CRCPlus from rice farmers in several Southern states briefly overwhelmed the Company's capacity, according to Chairman and CEO, Kenneth C. Coon. "Product demand was an order of magnitude greater than we expected. We immediately began to secure reinsurance, and worked closely with the RMA and members of Congress to pass legislation giving farmers a sign-up extension. We are grateful for the quick response from Washington that helped farmers get back to business as usual, and we are now working with state insurance officials to resolve related matters."

Coon said the Company's crop division is developing programs that will strengthen relationships with agents and generate additional business during this fall and next spring's sales seasons.

Acceptance 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 five 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.