FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
         THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended December 31, 1995

                                       OR

[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

For the transition period _______________________ to _________________________

Commission File Number    1-12902

--------------------------------------------------------------------------------

                       FRONTIER ADJUSTERS OF AMERICA, INC.
             (Exact name of registrant as specified in its charter)


          Arizona                                       86-0477573
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)


                     45 East Monterey Way, Phoenix, AZ 85012
--------------------------------------------------------------------------------
                    (Address of principal executive offices)


                                 (602) 264-1061
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


--------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                                                    Yes   X        No



Number of shares of Common Stock outstanding on February 2, 1996      4,609,658
                                                                     ----------


<PAGE>

PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

                       FRONTIER ADJUSTERS OF AMERICA, INC.
                                AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET

                                            December 31, 1995   June 30, 1995
                                            -----------------   -------------
                                             (unaudited)             (*)
                                     ASSETS

CURRENT ASSETS
   Cash and cash equivalents                   $ 369,235          $ 358,960
   Investments                                 1,237,599          1,255,627
   Receivables                                 1,531,603          1,632,406
   Prepaid expenses                              191,473            258,165
   Other                                         139,784            115,334
                                              ----------         ----------
        TOTAL CURRENT ASSETS                   3,469,694          3,620,492
                                              ----------         ----------

PROPERTY AND EQUIPMENT                         2,296,174          2,269,110
   Less accumulated depreciation and 
   amortization                                  827,807            784,565
                                              ----------         ----------
                                               1,468,367          1,484,545
                                              ----------         ----------
OTHER ASSETS
   Cost of subsidiary in excess of net 
   tangible assets acquired                      213,817            213,817
   Less accumulated amortization                 173,352            172,196
                                              ----------         ----------
                                                  40,465             41,621
   Receivables (Long term)                       308,000            302,000
   Investments (Long term)                       764,411            764,090
   Other                                         427,314            384,302
                                              ----------         ----------
                                               1,540,190          1,492,013
                                              ----------         ----------
        TOTAL ASSETS                          $6,478,251         $6,597,050
                                              ==========         ==========

                                   LIABILITIES

CURRENT LIABILITIES
   Accounts payable                           $   95,914         $   12,669
   Accrued expenses                              207,157            362,693
   Franchisee/licensee remittance payable         73,230            221,620
   Current portion long term liability            23,796             22,951
   Other                                          69,154             53,811
                                              ----------         ----------
        TOTAL CURRENT LIABILITIES                469,251            673,744
                                              ----------         ----------

LONG TERM LIABILITY                               72,542             84,655
                                              ----------         ----------

STOCKHOLDERS' EQUITY
   Common stock                                   47,820             47,820
   Additional paid in capital                  2,148,470          2,148,470
   Treasury stock                               (510,686)          (414,869)
   Other                                         (25,599)            14,642
   Retained earnings                           4,276,453          4,042,588
                                              ----------         ----------
                                               5,936,458          5,838,651
                                              ----------         ----------
   TOTAL LIABILITIES & STOCKHOLDERS' EQUITY   $6,478,251         $6,597,050
                                              ==========         ==========

*Condensed from audited financial statements.
 The accompanying notes are an integral part of these condensed statements.

                                        2

<PAGE>


                       FRONTIER ADJUSTERS OF AMERICA, INC.
                                AND SUBSIDIARIES
<TABLE>

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (unaudited)

<CAPTION>
                                                   Six Months Ended                      Three Months Ended
                                                   December 31,                          December 31,
                                                   -----------------------               ------------
                                                    1995                1994              1995                1994
                                                   -----               -----             -----               -----
<S>                                          <C>               <C>              <C>                  <C>           

REVENUES
   Continuing licensee and
    franchisee fees                          $   2,442,228     $  2,314,690     $ 1,195,333          $ 1,157,879
   Adjusting fees                                  318,768          213,451         156,997               99,477
                                                 ---------       ----------       ---------           ----------
                                                 2,760,996        2,528,141       1,352,330            1,257,356
                                                 ---------       ----------       ---------           ----------


COST AND EXPENSES
   Compensation and employee benefits              948,640         799,959          480,271              400,979
   Office                                          204,830         144,309           94,885               62,681
   Advertising and promotion                       185,936          94,324          112,119               44,463
   Depreciation and amortization                    88,557          60,085           45,066               31,927
   Provision for doubtful accounts                  70,000          80,000           35,000               45,000
   Other                                           430,314         533,341          189,420              256,347
                                                 ---------       ---------        ---------           ----------
                                                 1,928,277       1,712,018          956,761              841,397
                                                 ---------       ---------        ---------           ----------
INCOME FROM OPERATIONS                             832,719         816,123          395,569              415,959
                                                 ---------       ---------        ---------           ----------

OTHER INCOME (EXPENSE)
   Interest income                                  70,123          63,041           38,610               35,001
   Other (Net)                                      16,298          43,555           13,172               31,276
                                                 ---------       ---------        --------            ---------
   TOTAL OTHER INCOME (EXPENSE)                     86,421         106,596           51,782               66,277
                                                 ---------       ---------        ---------            ---------
   INCOME BEFORE INCOME TAXES                      919,140         922,719          447,351              482,236


INCOME TAXES                                       361,507         362,242          175,756              189,289
                                                 ---------       ---------        ---------            ---------
   NET INCOME                                    $ 557,633       $ 560,477       $  271,595           $  292,947
                                                 =========       =========        =========            =========

Weighted Average Shares
 outstanding                                    4,623,800        4,684,105        4,609,658            4,677,311
                                               ==========       ==========      ===========           ==========

NET INCOME PER COMMON SHARE                  $        .12      $       .12      $       .06          $       .06
                                             ============      ===========      ===========          ===========
</TABLE>

The accompanying notes are an integral part of these condensed statements.

                                        3

<PAGE>

                       FRONTIER ADJUSTERS OF AMERICA, INC.
                                AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (unaudited)

                   Six Months Ended December 31, 1995 and 1994

                                                             1995         1994
                                                            ------       ------

NET INCOME                                               $ 557,633    $ 560,477
                                                          --------     --------
Adjustments to reconcile net income to net 
cash provided by operating activities:
   Depreciation and amortization                            88,557       60,085
   (Gain) on disposition of property and
   equipment                                                (1,667)     (19,416)
   Allowance for doubtful accounts                          16,144       80,140
Change in assets and liabilities:
(Increase) decrease in:
   Receivables                                             276,260        3,136
   Prepaid expenses                                         66,692       33,837
   Other                                                   (63,187)     (11,109)
Increase (decrease) in:
   Accounts payable                                         83,245      (38,093)
   Accrued expenses                                       (155,536)      80,877
   Franchisee and licensee remittance payable             (148,390)    (618,951)
   Other                                                    15,343      (42,844)
                                                          --------     --------
Total adjustments                                          177,461     (472,338)
                                                          --------     --------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES           735,094       88,139
                                                          --------     --------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Capital expenditures                                    (27,064)     (68,481)
   Investments purchased                                  (986,675)  (1,031,946)
   Proceeds from sales of investments                    1,000,000     1,000,000
   License acquisition                                     (64,000)     (25,000)
   Payments on License acquisition                         (11,268)      (7,437)
   Advances to licensees and franchisees                (1,949,046)  (1,578,767)
   Collections of advances to licensees 
   and franchisees                                       1,732,821    1,645,308
                                                        ----------   ----------
   NET CASH PROVIDED (USED IN) BY INVESTING ACTIVITIES    (305,232)     (66,323)
                                                        ----------   ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash dividends                                         (323,770)    (258,000)
   Common stock repurchased                                (95,817)    (136,377)
                                                          ---------   ----------
   NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES    (419,587)    (394,377)
                                                         ----------   ----------

NET INCREASE (DECREASE) IN CASH                             10,275      372,561
   Cash at beginning of the period                         358,960      804,780
                                                         ---------    ---------
   Cash at the end of the period                         $ 369,235    $ 432,219
                                                         =========    =========
Supplemental disclosures of Cash Flow information
Cash paid during the period
   Income taxes                                          $ 455,788    $ 351,188
   Interest                                              $   3,741    $   2,563

The accompanying notes are an integral part of these condensed statements.

                                        4

<PAGE>

                       FRONTIER ADJUSTERS OF AMERICA, INC.
                                AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

(1) Basis of Presentation

    The  financial  information  included  herein is  unaudited;  however,  such
    information reflects all adjustments  (consisting solely of normal recurring
    adjustments)  which are, in the opinion of management,  necessary for a fair
    statement of results of operations for the interim periods.

    The results of operations  for the six month period ended  December 31, 1995
    are not  necessarily  indicative  of the results to be expected for the full
    year.

(2) Supplemental Cash Flow Information

    On August 1, 1995, the Company reacquired its Tucson,  Arizona licensee. The
    purchase price was $139,807  gross or $116,081 net of the imputed  interest.
    The purchase price was paid as follows:

           Purchase price                                  $116,081
           Outstanding purchase loan
            (Net of imputed interest of $22,926)            (57,626)
           Outstanding advance to licensee                  (22,455)
                                                           --------
           Net cash                                        $ 36,000
                                                           ========

Item 2 - Management's Discussion and Analysis of Financial Condition and Results
         of Operations

Financial Condition

The Company has  historically  financed its growth and on going  operations with
cash generated from  operations.  In the six months ended December 31, 1995, the
Company's operations generated $735,000 in cash.

In July 1993 the Company's Board of Directors  authorized the purchase of shares
of the Company's  common stock.  In September 1995 the Company  acquired  31,240
shares  of the  Company's  common  stock at a cost of $  95,817.  This  purchase
completed the repurchase  plan resulting in total  purchases of 122,352  shares.
The repurchases  were instituted by the Board of Directors as they believed that
at the  current  price  level  the  Company's  common  stock  was  an  excellent
investment.

The  Company's  Board of  Directors  in July 1995,  approved  an increase in the
Company's  annual  dividend  rate  from 12 cents per share to 14 cents per share
effective with the 3.5 cents per share cash dividend paid on September 8, 1995.

Through  its  capital  investment  program,  the  Company  replaces  obsolete or
outdated  equipment  and invests in new  equipment  to maintain or increase  the
productivity of the Company and its employees. The Company anticipates investing
$100,000 to $200,000 in fiscal 1996 for computers  and software  pursuant to its
capital investment program.

Management  believes  that  the  Company  will be able to fund  all of its  cash
requirements (i.e. current operations, capital asset acquisition and the payment
of dividends) from its current available cash, as well as funds generated by its
operations.

The Company's ratio of current assets to current liabilities was 7.39 to 1 as of
December 31, 1995 and 5.37 to 1 as of June 30, 1995. The ratio of current assets
to current  liabilities  was most  significantly  affected  by the fact that the
Company's  accrued  liabilities  at June 30,  1995  consisted  mostly of accrued
income taxes and

                                        5

<PAGE>

Financial Condition (continued)

accrued profit sharing expense which were paid early in the current fiscal year.
This effect on the ratio of current assets to current  liabilities is the result
of timing and not the Company's underlying financial performance.

Results of  Operations  - Six Months  Ended  December  31, 1995  Compared to Six
Months Ended December 31, 1994

Revenues

The Company's revenues increased 9% or $233,000 to $2,761,000 in the current six
months from $2,528,000 in the same period of the prior fiscal year. The increase
represents  a  $105,000  increase  in  adjusting  and other  fees and a $128,000
increase in continuing licensee and franchisee fees.

The increase of $105,000 in adjusting  and other fees of Company  owned  offices
from  $214,000 in the six months ended  December 31, 1994 to $319,000 in the six
months  ended  December  31, 1995  representing  a 49%  increase.  The  increase
reflects an increase in the demand for the Company's services as well as $63,000
in revenues as a result of the  acquisition  of the  operations of the Company's
former Tucson licensee on August 1, 1995.

The Company's revenues from continuing licensee and franchisee fees increased 6%
or  $128,000  from  $2,314,000  in the six months  ended  December  31,  1994 to
$2,442,000  in the six months ended  December 31,  1995.  A  significant  factor
affecting the Company's revenue from continuing  licensee and franchisee fees is
the termination of one of the Company's licensees in California in January 1995.
During the six months ended December 31, 1994 this licensee  contributed $98,000
to the revenues of the Company.

The Company has granted nine new licenses  during the current quarter within the
territory of its prior licensee and received  $4,200 in continuing  licensee and
franchisee fees from the new licensees.  The Company anticipates growth in these
revenues.  The increase also reflects the fact that the Company's  licensees and
franchisees are benefiting from an increase in claims as insurance companies and
self-insureds  use them due to an increase in volume of claims and, to a greater
degree,  the  indicated  increase  reflects  the  effect  of new  licensees  and
franchisees and rate increases as a result of inflation.

The Company's revenues are affected by numerous matters including the work loads
of  other  companies  and  claims  presented  by  their  clients.  The  Company,
therefore,  is unable to project its future revenues.  The Company has, however,
seen growth in licensee and franchisee  fees paid and  management  believes that
the  Company  will  continue  to  realize  growth in  continuing  licensing  and
franchising  fees in the future as it adds qualified  licensees and franchisees.
Additionally,  the Company  will  continue to reflect  revenue from the recently
purchased Tucson operation.

Compensation and Fringe Benefits

Compensation and fringe benefits  represent  approximately  49% of the Company's
costs and expenses and represent the largest single item of expense.  Since 1992
the  compensation has ranged from 44% to 57% of the Company's cost and expenses.
These  expenses  increased 19% or $149,000 from $800,000 in the six months ended
December  31, 1994 to $949,000 in the six months ended  December 31, 1995.  This
increase is the result of the Company hiring  additional  employees to staff the
recently  acquired  Tucson  location  ($50,000) and to handle the increased work
load in the corporate  office  ($35,000) and for cost of living and merit raises
given to employees ($64,000).

Expenses Other Than Compensation and Fringe Benefits

The Company's  expenses other than  compensation  and fringe benefits  increased
$68,000  during the six months  ended  December 31, 1995 as compared to the same
period of the prior fiscal year. The principal  items  affecting  these expenses
are a $153,000  decrease in legal  expenses  primarily  related to the Company's
litigation in California, a $92,000 increase in advertising and promotion, and a
$61,000 increase in office

                                        6

<PAGE>

Expenses Other Than Compensation and Fringe Benefits (continued)

expenses primarily related to integration of the Tucson office.

The most  significant  item in the $92,000 increase in advertising and promotion
was  $60,000  relative  to  listings  in a  publication  directed  at the claims
industry.  This  expense  was  historically  paid in the  fourth  quarter of the
Company's fiscal year.  However,  due to changes at the publisher's this expense
was incurred in the second quarter of the current fiscal year rather than in the
fourth quarter of the fiscal year ended June 30, 1995.

The balance of the Company's costs and expenses have not  significantly  changed
from the same period of the prior year.

Income Taxes

The Company's  income taxes for the six months ended  December 31, 1995 were 39%
of its income before taxes, or  approximately  the same as they were for the six
months ended  December 31, 1994.  Changes made in the tax laws by various states
and by the federal  government  have not had a material  effect on the Company's
overall tax rates; however, this could change at any time.

Other Income

The  Company's  other income  decreased  $20,000 from $106,000 in the six months
ended  December 31, 1994 to $86,000 in the six months  ended  December 31, 1995.
The most significant  decreases in other income were the decline in the sales of
computer software to the Company's licensees of $5,000 and a $19,000 decrease in
gain on disposition of fixed assets from the prior year.

Net Income

The Company's net income for the six months ended  December 31, 1995,  decreased
$2,000 from  $560,000 in the period  ended  December 31, 1994 to $558,000 in the
current  period.  The most  significant  items  affecting  net  income  were the
$233,000 increase in revenues,  the $149,000 increase in compensation and fringe
benefits and the $68,000 increase in other expenses.

Results of  Operations - Three Months Ended  December 31, 1995 Compared to Three
Months Ended December 31, 1994

Revenues

The  Company's  revenues  increased 8% or $95,000 to  $1,352,000  in the quarter
ended  December 31, 1995 from  $1,257,000 in the same period of the prior fiscal
year. The increase represents a $58,000 increase in adjusting and other fees and
a $37,000 increase in continuing licensee and franchisee fees.

The increase of $58,000 in adjusting and other fees of the Company owned offices
from $99,000 to $157,000 in the comparable period of the prior year represents a
59%  increase.  The  increase  reflects  an  increase  in the  demand for claims
services by the Company's  clients as well as $37,000 in revenues as a result of
the  acquisition  of the  operations of the Company's  former Tucson  license on
August 1, 1995.

The Company's revenues from continuing licensee and franchisee fees increased 3%
or $37,000  from  $1,158,000  in the three  months  ended  December  31, 1994 to
$1,195,000  in the three months ended  December 31, 1995. A  significant  factor
affecting the Company's revenue from continuing  licensee and franchisee fees is
the termination of one of the Company's licensees in California in January 1995.
During the three  months  ended  December  31,  1994 this  licensee  contributed
$48,000 to the revenues of the Company.

The Company  granted nine new  licenses  during the current  quarter  within the
territory of its prior licensee and received  $4,200 in continuing  licensee and
franchisee fees from the new licensees.  The Company anticipates growth in these
revenues. The increase also reflects the facts that the Company's licensees and

                                        7

<PAGE>

Revenues (continued)

franchisees  are  benefiting  from an  increase in claim  services as  insurance
companies  and   self-insureds  use  the  Frontier   Adjuster's   licensees  and
franchisees  for  increased  volumes of claims,  as well as the  increase in the
number of licensees  and  franchisees  that were  established  in the  preceding
fiscal year.

The  Company's  revenues  are  affected  by  the  number  of new  licensees  and
franchisees and client companies' staff work loads as more  corporations  become
self-insured  and are  outsourcing  to meet their  needs for  claims  management
services.  The client  companies'  staff work loads are affected by, among other
things, natural disasters which can create intense short term demands for claims
services.

Compensation and Fringe Benefits

Compensation and employee benefits represent  approximately 50% of the Company's
costs and expenses and are its largest  expense item.  These expenses  increased
20% or $79,000 in the quarter ended December 31, 1995 from $401,000 in the three
months  ended  December 31, 1994 to $480,000.  The increase is  principally  the
result of additional  employees to staff the recently  acquired  Tucson location
and to handle the increased work load in the corporate office.

Expenses Other Than Compensation and Fringe Benefits

The Company's  expenses other than compensation and employee benefits  increased
$36,000 in quarter ended December 31, 1995. The principal  items affecting these
expenses  are an $88,000  decrease  in legal  expense  primarily  related to the
Company's  litigation  in  California,  a $68,000  increase in  advertising  and
promotion,  and a  $33,000  increase  in office  expense  primarily  related  to
integration of the Tucson office.

The most  significant  item in the $68,000 increase in advertising and promotion
was  $60,000  relative  to  listings  in a  publication  directed  at the claims
industry.  This  expense  was  historically  paid in the  fourth  quarter of the
Company's fiscal year.  However,  due to changes in the publisher's  billing and
printing practice this expense was incurred in the second quarter of the current
fiscal year rather than in the fourth  quarter of the fiscal year ended June 30,
1995.

The balance of the  Company's  costs and expenses  other than  compensation  and
employee  benefits  have not  significantly  changed from the same period of the
prior fiscal year.

Income Taxes

The Company's income taxes for the three months ended December 31, 1995 were 39%
of its income before taxes, or approximately the same as they were for the three
months ended December 31, 1994.

Other Income

The Company's  other income  decreased  $14,000 from $66,000 in the three months
ended  December 31, 1994 to $52,000 in the three months ended December 31, 1995.
The most  significant  decrease  in other  income  reflects a $19,000  gain from
trading in automobiles in the second quarter of the prior year.

Net Income

The Company's net income for the quarter ended December 31, 1995, decreased from
$293,000 in the three  months  ended  December 31, 1994 to $272,000 in the three
months  ended  December  31,  1995,  a  decrease  of  $21,000  or 7%.  The  most
significant  items  which  affected  net  income  are the  $95,000  increase  in
revenues,  the $79,000  increase in  compensation  and fringe  benefits  and the
$36,000 increase in other expenses.

                                        8
<PAGE>

PART II:  OTHER INFORMATION

Item 1 - Legal Proceedings

A  Declaratory  Action was filed in May 1994 against the Company in the Superior
Court of Los  Angeles,  California,  regarding  the  interpretation  of  certain
sections of the Company's license agreement with the plaintiff,  a licensee.  In
June  1994,  the  Company  removed  the case to U.S.  District  Court and raised
certain  counterclaims  for violation of the Company's  license  agreement.  The
Company  terminated  the  licensee's   agreement   effective  January  1,  1995.
Subsequent to the  termination,  the plaintiff  amended his complaint to include
wrongful  termination.  On May 1, 1995,  the U.S.  District  Court  granted  the
Company's  motion for Summary Judgment  regarding all outstanding  claims by the
plaintiff.  On June 19, 1995, the Court granted the Company's  Summary  Judgment
motion  regarding its claims against the former licensee  including  $204,144 in
unpaid licensee fees and approximately $24,000 for court costs. The Company from
time to time in its  normal  course  of  business  is  named as a  defendant  in
lawsuits.  The Company  does not believe  that it is subject to any  lawsuits or
litigation  or  threatened  lawsuits  or  litigation  that will have a  material
adverse effect on the Company or its business.

Response to items one  through  five not listed  above are  omitted  since these
items are either inapplicable or the response thereto would be negative.


                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                              FRONTIER ADJUSTERS OF AMERICA, INC.



Date:   2/8/96         /s/     William J. Rocke
                       --------------------------------------------------------
                       William J. Rocke, Chief Executive Officer/Chairman of the
                       Board, Director, Principal Financial Officer


Date:   2/8/96         /s/      Jean E. Ryberg
                       ---------------------------------------------------------
                       Jean E. Ryberg, President, Director





                                        9