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BANCINSURANCE CORPORATION ANNOUNCES WITHDRAWAL OF PUBLIC OFFERING

 COLUMBUS, Ohio, April 27 /PRNewswire/ -- Bancinsurance Corporation (NASDAQ Stock Market: BCIS) announced today that it is terminating its public offering of common stock as a result of issues arising out of a discontinued product formerly offered in California and Texas through an unaffiliated entity, American Autoplan, Inc., and certain of American Autoplan's affiliates. The Company's registration statement in connection with the stock offering, filed with the Securities and Exchange Commission on March 17, 1993, will be withdrawn.
 The discontinued product was offered in conjunction with an automobile repair contract sold by American Autoplan as an alternative to standard physical damage insurance. The Company's product provided the lienholder with coverage against a total loss and the owner of the automobile against unrecovered theft.
 The product was discontinued when the California and Texas insurance departments determined that the automobile repair contracts constituted a form of insurance and could not be sold by American Autoplan without appi?ate licensing. Recently, American Autoplan discontinued business and ceased honoring its obligations under its repair contracts. As a result of consumer complaints, the California Department of Insurance has commenced an investigation of this program including the Company's participation in the program. The Company is cooperating with the California Department of Insurance in its investigation, and is seeking to address consumer complaints. The Company is also engaged in discussions with the California Department of Insurance concerning the extent of the Company's obligations to consumers arising out of its participation in this program. At this time, the Company cannot predict the extent of the liability or the timing of the resolution of the issues presented.
 Bancinsurance Corporation, headquartered in Columbus, Ohio, is an insurance holding company engaged, through Ohio Indemnity Company, in underwriting specialized insurance products and related services.
 -0- 4/27/93
 /CONTACT: Si Sokol, president, Bancinsurance Corporation, 614-228-2800/
 (BCIS)


CO: Bancinsurance Corporation ST: Ohio IN: INS SU: OFR

AR -- CL026 -- 1530 04/27/93 15:35 EDT
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Publication:PR Newswire
Date:Apr 27, 1993
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