Item 8.01. Other Events

As previously disclosed, on December 9, 2003, Acceptance Insurance Companies Inc. (the "Company") filed a complaint against the United States of America in the United States Court of Federal Claims. In that complaint the Company alleges that by not approving the proposed sale of certain insurance assets of one of the Company's subsidiaries, American Growers Insurance Company ("American Growers"), to Rain and Hail L.L.C. ("Rain and Hail") the Risk Management Agency (the "RMA") rendered valueless the insurance business of American Growers. The Company also alleges that in rejecting the proposed transaction between the Company and Rain and Hail, the RMA effected a taking of the Company's property (i.e., the American Growers insurance assets) for public use without just compensation in violation of the Fifth Amendment to the United States Constitution. On September 25, 2008 the United States Court of Federal Claims granted the motion of the United States to dismiss, with prejudice, the Company's complaint for failure to state a claim upon which relief may be granted. AICI appealed this dismissal. On October 1, 2009, the United States Court of Appeals for the Federal Circuit affirmed the dismissal of AICI's claim. The Company is evaluating available options in response to the Court of Appeals action.

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