Crusader Insurance Company: Frequently Asked Questions


On June 7, 2023 the California Insurance Commissioner was appointed statutory Conservator of Crusader Insurance Company (“Crusader”) by order of the Los Angeles County Superior Court (“the Court”). This action was initiated in order to protect policyholders, claimants, creditors and the public from further harm which might be caused by Crusader’s continued operation. The Commissioner has the responsibility to take these actions whenever a company is determined to be financially unstable. The Commissioner will consider the legal and practical alternatives to address and resolve the remainder of open Crusader claims and thereafter close the estate.

Why did I receive this notice?

You have been identified as a policyholder, agent, or creditor of Crusader Insurance Company (“Crusader”) and therefore have received this notice to inform you of the formal conservation of Crusader. It may be because you had an insurance policy with Crusader.


Other possible parties in interest: Reinsurer, a Vendor to Crusader, an Attorney representing Crusader.


What is happening to Crusader?

Crusader was conserved by the California Insurance Commissioner because the company was found to be operating in a hazardous financial condition. The Commissioner was appointed statutory conservator of Crusader to preserve and protect the assets of the company for the benefit of policyholders, creditors and shareholders.


During the conservation, Crusader will continue to honor your policy coverage and benefits and will continue to adjust and pay claims submitted but only if your policy was inforce at the time of the loss, the loss was covered by the terms of your policy and the incident has not exceeded any applicable statutes of limitation.


Will my insurance claim payments continue to be paid?

Yes, claims will continue to be adjusted and paid as long as the policy was in force at the time of loss and the loss was covered by the terms of your policy and the incident has not exceeded any applicable statutes of limitation.


Who do I call if I have additional questions?

Please continue to call Crusader at 818-591-9800 (dial extension #2 for conservation information and dial extension #4 for claims information) and additional information can be obtained on the Crusader website at A copy of the Conservation Order can be found on the Conservation and Liquidation Office website at:


I am not a policyholder. I am a creditor. What does this conservation mean for me?

As a creditor or vendor to Crusader, the Conservator will continue to marshal and preserve all company assets for the benefit of all constituents to the impaired insurance company. Over the next number of months, the Conservator will be determining the essential services necessary to properly address the requirements of the conservation.


How many policies are impacted by this conservation?

Crusader is no longer writing or renewing insurance policies. The company has been in “run-off” since September 21, 2021. While no new policies are being issued liability for unpaid claims continues. Crusader has approximately 350 open claims with case reserves of $23 million. The vast majority of the open claims are in California. Crusader has approximately $14 million in additional reserves to cover adverse loss development.


What happened to cause the Conservation of Crusader?

On May 15, 2023 Crusader filed its March 31, 2023 quarterly statement as required by section 900 of the California Insurance Code. The quarterly statement showed Crusader had a policyholder surplus of $8,171,828 down from $12,313,408 as of December 31, 2022. Crusader had surplus of $20,156,823 at March 31, 2022 (a reduction of approximately $12 million in the last 12 months).


Crusader’s reduction in surplus was largely a result of adverse loss development thereby increasing their loss adjustment reserves coupled with the necessity to sell material bond holdings at a loss (due to rising interest rates) to pay the approved claims. Crusaders $8.17 million surplus, as reported on its March 31, 2023 quarterly statement, may be adversely affected by additional loss development as well as the cost to run-off the claims. It is estimated that it will take approximately 12 months to complete the run-off of the remaining policy claims.