UNICO AMERICAN CORP FILES (8-K/A) Disclosing Costs Associated with Exit or Disposal Activities

Item 2.05. Cost Associated with Exit or Disposal Activities

In connection with its previously announced decision to place Crusader into
runoff, on October 7, 2021 and October 8, 2021, the Company informed 13
employees of the Company's determination to terminate their employment,
effective as of October 8, 2021. The terminated employees were primarily
employed in the Company's underwriting and marketing groups.

In connection with Company's decision to implement a work force reduction, the
Company expects to incur total pre-tax costs of approximately $217,000,
consisting of severance payments under the Company's existing policy. The
Company will recognize these costs during the third quarter of 2021. In
addition, the Company has offered retention bonuses to the Company's non-officer
employees that are not subject to the work force reduction, in connection with
which, depending on employee participation, the Company expects to incur total
pre-tax costs of approximately $284,000. The Company expects to recognize these
costs ratably over the retention service period during the fourth quarter of
2021 and the first quarter of 2022. Of the total pre-tax costs, approximately,
$501,000 is expected to be future cash expenditures.

The Company may incur additional costs in connection with the decision to place
Crusader into runoff, including additional costs associated with workforce
reductions. At this time the Company is unable to make a good faith
determination of an estimate or range of estimates for any additional charges
that it will incur in connection with this action, or the amount or range of
such charges that will result in future cash expenditures, required by
paragraphs (b), (c) and (d) of Item 2.05 of Form 8-K. The Company will file a
further amendment to this report after it makes a determination of such estimate
or range of estimates, if any.

Forward-Looking Statements

This Current Report on Form 8-K/A may contain "forward-looking statements"
within the meaning of the federal securities laws, including Section 27A of the
Securities Act of 1933, as amended (or "the Securities Act"), and Section 21E of
the Securities Exchange Act of 1934, as amended (or "the Exchange Act"). In this
context, forward-looking statements are not historical facts and include
statements about the Company's plans, objectives, beliefs and expectations.
Forward-looking statements include statements preceded by, followed by, or that
include the words "believes," "expects," "anticipates," "seeks," "plans,"
"estimates," "intends," "projects," "targets," "should," "could," "may," "will,"
"can," "can have," "likely," the negatives thereof or similar words and
expressions.

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Forward-looking statements are only predictions and are not guarantees of future
performance. These statements are based on current expectations and assumptions
involving judgments about, among other things, future economic, competitive and
market conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond the Company's
control. These predictions are also affected by known and unknown risks,
uncertainties and other factors that may cause the Company's actual results to
be materially different from those expressed or implied by any forward-looking
statement. Many of these factors are beyond the Company's ability to control or
predict. The Company's actual results could differ materially from the results
contemplated by these forward-looking statements due to a number of factors.
Such factors include, but are not limited to, Unico's ability to continue to
operate as a "going concern;" Crusader's ongoing runoff; substantial historical
net losses of Crusader, the principal subsidiary of the Company, which may
continue in the future; failure to meet minimum capital and surplus requirements
of property and casualty insurance companies; limitations on the amount of
dividends, if any, that Crusader can declare and pay to Unico in the future;
possible restrictions on new business that may be written by Crusader by its
principal insurance regulator because of its reduced policyholder surplus;
vulnerability to climate change and significant catastrophic property loss; the
impact of the recent coronavirus pandemic; a change in accounting standards,
including those issued by the Financial Accounting Standards Board; ability to
adjust claims accurately; insufficiency of loss and loss adjustment expense
reserves to cover future losses; changes in federal or state tax laws; ability
to realize deferred tax assets; ability to accurately underwrite risks and
charge adequate premium; ability to obtain reinsurance or collect from
reinsurers and or losses in excess of reinsurance limits; extensive regulation
and legislative changes; reliance on subsidiaries to satisfy obligations,
including privacy and data protection laws; downgrades in financial strength
rating or long-term credit rating by A.M. Best; changes in interest rates;
investments subject to credit, prepayment and other risks; geographic
concentration; reliance on independent insurance agents and brokers;
insufficient reserve for doubtful accounts; litigation; enforceability of
exclusions and limitations in policies; reliance on information technology
systems; ability to prevent or detect acts of fraud with disclosure controls and
procedures; change in general economic conditions; dependence on key personnel;
ability to attract, develop and retain employees and maintain appropriate
staffing levels; insolvency, financial difficulties, or default in performance
of obligations by parties with significant contracts or relationships; ability
to effectively compete; maximization of long-term value which may sometimes
conflict with short-term earnings expectations; control by a small number of
shareholders; failure to maintain effective system of internal controls;
difficulty in effecting a change of control or sale of any subsidiaries; the
negative impact of emerging claim and coverage issues; risk management framework
could prove inadequate; single operating location; systems damage, failures,
interruptions, cyber-attacks and intrusions, or unauthorized data disclosures;
delays and cost overruns in connection with the upgrade of its legacy
information technology system; levy assessments by various underwriting pools
and programs; limited trading of stock; no assurance of dividend declaration in
the future so returns may be limited to stock value; and significant costs and
substantial management time devoted to operating as a public company.

Please see Part I - Item 1A - "Risk Factors" in the Company's 2020 Annual Report
on Form 10-K as filed with the U.S. Securities and Exchange Commission ("SEC"),
as well as other documents the Company files or furnishes with the SEC from
time-to-time, for other important risks and uncertainties that could cause the
Company's actual results to differ materially from its current expectations and
from the forward-looking statements discussed herein. Because of these and other
risks, uncertainties and assumptions, you should not place undue reliance on
these forward-looking statements. In addition, these statements speak only as of
the date of this and, except as may be required by law, the Company undertakes
no obligation to revise or update publicly any forward-looking statements,
whether as a result of changed circumstances, new information, future events or
otherwise, for any reason.

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