Item 8.01. Other Events.

On May 26, 2009, the Illinois Division of Insurance (the "Division") issued a confidential Amended Corrective Order (the "Amended Order") finalizing the implementation of an interim capital maintenance plan for Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corporation (collectively, "Triad"), the insurance subsidiaries of Triad Guaranty Inc. (the "Company"). The Amended Order amended the Corrective Order initially entered into by the Division and Triad effective March 31, 2009 (the "Original Order") and previously announced by the Company on April 1, 2009, and followed consideration by the Division of comments from interested parties concerning the Original Order. Under the Amended Order, effective June 1, 2009, Triad will pay all valid claims under Triad's mortgage guaranty insurance policies 60% in cash and 40% by the creation of deferred payment obligations ("DPOs"). The terms of the Amended Order are substantially identical to the Original Order, except that Triad will be required to establish an escrow arrangement to escrow DPOs. The Amended Order also incorporates certain revisions requested by policyholders during the comment process.

---