Item 8.01. Other Events.

On April 1, 2009, Triad Guaranty Inc. (the "Company") issued a press release announcing that the Illinois Director of Insurance (the "Illinois Director") had issued a Corrective Order, which we received today, impacting the Company's insurance subsidiaries, Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corporation collectively, "Triad"). Under the Order, effective June 1, 2009, or a later date established by the Illinois Director, all valid claims under Triad's mortgage guaranty insurance policies will be paid 60% in cash and 40% by the creation of a deferred payment obligation ("DPO"). The DPO will be represented by a separate entry in Triad's financial statements and will accrue a carrying charge based on the investment yield earned by Triad's investment portfolio. Payments of the carrying charge and the DPO will be subject to Triad's future financial performance and will require approval of the Illinois Director. Triad will continue to operate under the terms of the original Corrective Order in addition to this additional Corrective Order.

Item 9.01. Financial Statements and Exhibits.

(d)

Exhibit Number Description

99.1 Press release, dated April 1, 2009

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