U-Haul 2004 Annual Report Download - page 42

and we may be required to pay judgments or settlements and incur expenses in aggregate amounts that could
have a material adverse eÅect on our Ñnancial condition or results of operations.
Our common stock may be delisted from the NASDAQ Stock Market.
On June 24, 2003, we received a letter from NASDAQ indicating that, in light of AMERCO's
Chapter 11 Ñling, a NASDAQ Listing QualiÑcations Panel (the ""Panel'') would consider such Ñling and
associated concerns in rendering a determination regarding AMERCO's listing status. Nasdaq has indicated
that the Panel has determined to continue the listing of AMERCO's common stock on Nasdaq provided that
AMERCO complies with all requirements for continued listing on Nasdaq and timely Ñles all periodic reports
with the SEC for all periods ending on or before June 30, 2004, without the beneÑt of any extensions provided
pursuant to Exchange Act Rule 12b-25. Although we intend to take all actions available to maintain our
Nasdaq listing, there can be no assurance that we will be able to do so. We have advised Nasdaq that we did
not meet Nasdaq's deadline for this Form 10-K and we are seeking a waiver of this requirement for such Ñling.
RepWest has consented to an Order of Supervision issued by the Arizona Department of Insurance.
On May 20, 2003, RepWest consented to an Order for Supervision issued by the Arizona Department of
Insurance (""DOI''). The DOI determined that RepWest's level of risk based capital (RBC) allowed for
regulatory control. Pursuant to this order and Arizona law, during the period of supervision, RepWest may not
engage in any of the following activities without the prior approval of the DOI:
a. dispose of, convey or encumber any of its assets or its business in force;
b. withdraw any of its bank accounts;
c. lend any of its funds;
d. invest any of its funds;
e. transfer any of its property;
f. incur any debt, obligation or liability including the issuance of all new and renewal business;
g. merge or consolidate with another company;
h. enter into any new reinsurance contract or treaty; or
i. enter into any aÇliate transactions.
In order to abate the DOI's order, RepWest must establish that it possesses surplus in compliance with
Arizona law and as the Director of Insurance may require based on type, volume or nature of its business
pursuant to Arizona law and establish that certain credit risks associated with the exposures to AMERCO and
its aÇliates have been eliminated.
If RepWest fails to satisfy the DOI's concerns, the DOI may take further action, including, but not
limited to, commencing a conservatorship.
New Accounting Pronouncements
In January 2003, the Financial Accounting Standards Board (FASB) issued Interpretation No. 46
(FIN 46), Consolidation of Variable Interest Entities, an interpretation of Accounting Research Bulletin
No. 51. FIN 46 requires that variable interest entities be consolidated by a company if that company absorbs a
majority of the entity's expected losses, receives a majority of its expected residual returns, or both, as a result
of holding a variable interest. In December 2003, the FASB issued FIN 46R, which reÖected certain
amendments to the standard. The provisions of FIN 46, as revised, are eÅective for the Ñrst interim or annual
period ending after March 15, 2004 when certain conditions are met by a variable interest entity. The
Company has adopted FIN 46R and the eÅects of the variable interest are further explained in the Notes to
the Ñnancial statements.
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