Effective January 8, 2020, the Board of Directors of Unico American Corporation appointed David A. Lawless as its Senior Vice President and Chief Administrative Officer. Mr. Lawless, age 62, is an insurance executive with more than 20 years of experience providing leadership and direction in business management and advanced technology. Before joining the Corporation, Mr. Lawless served as the Chief Administrative Officer and Executive Vice President for Magna Carta Companies and as a member of their board of directors from 2008 to 2018. As a result of Mr. Lawless' appointment as Senior Vice President and Chief Administrative Officer, Mr. Furgatch is no longer "independent" within the meaning of the Nasdaq listing standards. On January 8, 2020, in order to maintain compliance with the Nasdaq listing standards, the Board adopted resolutions to fix the number of Board members at nine and appointed Ronald A. Closser to the Board. The Board determined that Mr. Closser is an "independent director" under Rules 5605(a)(2) and 5605(d) of the Nasdaq listing standards and other governing laws and applicable regulations, including Rule 10A-3 under the Securities Exchange Act of 1934, as amended. Mr. Closser's term as director will expire at the next Annual Meeting of Stockholders and thereafter until his successor has been duly elected and qualified, or until his earlier death, resignation or removal. Mr. Closser, 64, has had a lengthy career in the insurance industry, during which he has built new products; reengineered challenging business sectors; designed and launched predictive modeling programs; planned, budgeted, executed and reported on numerous business operations; and obtained extensive operational experience. Mr. Closser served as the Los Angeles Regional Office Underwriting Officer of The Zenith Insurance Companies from 2011 until his retirement in 2018. He was also a vice president at The Zenith Insurance Companies from 2010 to 2011, prior to which he operated an independent consulting firm. On January 8, 2020, in order to maintain the Corporation's compliance with Nasdaq listing standards related to board committee membership, Mr. Closser was appointed to replace Mr. Furgatch as a member of the Corporation's Audit Committee and Compensation Committee.