In consideration to the Plan, DCAP has acquired insurance company, changed company name, and sold remaining stores
DCAP Group’s Commercial Mutual Insurance Company (CMIC) Plan of Conversion (Plan), for the conversion of CMIC from advance premium cooperative to a stock property and casualty insurance company, is now effective.
In connection with the Plan, DCAP has acquired a 100% equity interest in CMIC in consideration of the conversion of its $3.75 million principal amount of surplus notes of CMIC. In addition, DCAP forgave all accrued and unpaid interest on the surplus notes as of the date of conversion.
The company has changed the name of subsidiary insurance company, formerly CMIC, to Kingstone Insurance Company. The company has changed its name (DCAP) to Kingstone Companies, besides the change of business sector to Property and Casualty Insurance Company, from Insurance Brokerage.
The company has also sold its three Pennsylvania stores. This transaction is the final stage of its stated goal of exiting the retail insurance business, and entering the insurance company business
Barry Goldstein, Chairman and CEO of DCAP, said: “During Q2, through a series of three transactions, we sold all of our retail offices as well as our franchise business. We exited the insurance distribution sector entirely. The exiting from the insurance brokerage sector was part of our strategic plan to change our company into an insurance carrier.”