UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

For the quarterly period ended September 30, 2001

                                       OR

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

For the transition period from ______ to ______

                         Commission file number 2-39458

                       ERIE FAMILY LIFE INSURANCE COMPANY
             (Exact name of registrant as specified in its charter)

           PENNSYLVANIA                                          25-1186315
  (State or other jurisdiction of                            (I.R.S. Employer
  incorporation or organization)                             Identification No.)


100 Erie Insurance Place, Erie, Pennsylvania                        16530
  (Address of principal executive offices)                        (Zip Code)

Registrant's telephone number, including area code   (814) 870-2000


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 ___


Indicate the number of shares outstanding of each of the Registrant's classes of
common stock, as of the latest practicable date: 9,450,000 shares of Common
Stock outstanding on October 31, 2001.


                                       1
<PAGE>


                                     INDEX

                       ERIE FAMILY LIFE INSURANCE COMPANY


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

        Statements of Financial Position--September 30, 2001 and December 31,
        2000

        Statements of Operations--Three and nine months ended September 30, 2001
        and 2000

        Statements of Comprehensive Income--Three and nine months ended
        September 30, 2001 and 2000

        Statements of Cash Flows--Nine months ended September 30, 2001 and 2000

        Notes to Financial Statements--September 30, 2001

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

Item 3. Quantitative and Qualitative Disclosures About Market Risk

PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K


SIGNATURES


                                       2
<PAGE>


PART I.  FINANCIAL INFORMATION

<TABLE>
<CAPTION>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                        STATEMENTS OF FINANCIAL POSITION

                                                                                                     (Dollars in thousands)
                                                                                               September 30,          December 31,
ASSETS                                                                                             2001                   2000
                                                                                               -------------          -----------
                                                                                                (Unaudited)
   <S>                                                                                          <C>                    <C>
   Investments:
         Fixed Maturities at fair value (amortized cost
           of $700,625 and $695,078, respectively)                                              $  725,118             $  683,651
         Equity Securities at fair value
           (cost of $126,854 and $127,389, respectively)                                           122,314                137,918
         Limited Partnerships
           (cost of $38,529 and $35,504, respectively)                                              40,667                 42,074
         Real Estate                                                                                 1,313                  1,376
         Policy Loans                                                                                8,533                  7,766
         Real Estate Mortgage Loans                                                                  7,401                  8,284
                                                                                                ----------             ----------


           Total Invested Assets                                                                $  905,346             $  881,069

         Cash and Cash Equivalents                                                                  62,918                 17,955
         Premiums Receivable from Policyholders                                                      4,765                  4,609
         Reinsurance Recoverable                                                                       872                    612
         Other Receivables                                                                             446                    392
         Accrued Investment Income                                                                  15,047                 12,038
         Deferred Policy Acquisition Costs                                                          89,337                 84,723
         Reserve Credit for Reinsurance Ceded                                                       10,626                  9,076
         Prepaid Federal Income Taxes                                                                    0                    167
         Other Assets                                                                                9,430                  9,702
                                                                                                ----------             ----------

           Total Assets                                                                         $1,098,787             $1,020,343
                                                                                                ==========             ==========

<FN>
See notes to financial statements.
</FN>

</TABLE>


                                       3
<PAGE>

<TABLE>
<CAPTION>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                        STATEMENTS OF FINANCIAL POSITION

                                                                                                     (Dollars in thousands)
                                                                                               September 30,          December 31,
LIABILITIES AND SHAREHOLDERS' EQUITY                                                               2001                   2000
                                                                                               -------------          ------------
                                                                                                (Unaudited)
 <S>                                                                                           <C>                     <C>
 Liabilities:
         Policy Liabilities and Accruals:
          Future Life Policy Benefits                                                          $   82,787              $   76,879
          Future Accident and Health Policy Benefits                                                   27                       0
          Policy and Contract Claims                                                                3,315                   2,473
          Annuity Deposits                                                                        615,227                 584,174
          Universal Life Deposits                                                                 117,806                 107,192
          Supplementary Contracts Not
            Including Life Contingencies                                                              614                     550
         Other Policyholder Funds                                                                   6,155                   4,615
         Federal Income Taxes Payable                                                               2,787                       0
         Deferred Income Taxes                                                                     28,075                  23,819
         Reinsurance Premium Due                                                                      626                     894
         Accounts Payable and Accrued Expenses                                                     10,807                   5,297
         Note Payable to Erie Indemnity Company                                                    15,000                  15,000
         Due to Affiliate                                                                           1,241                   2,029
         Dividends Payable                                                                          3,686                   1,701
                                                                                               ----------              ----------

           Total Liabilities                                                                   $  888,153              $  824,623
                                                                                               ----------              ----------

   Shareholders' Equity:
         Common Stock, $.40 Par Value Per Share;
           Authorized 15,000,000 Shares; 9,450,000
           Shares Issued and Outstanding                                                       $    3,780              $    3,780
         Additional Paid-In Capital                                                                   630                     630
         Accumulated Other Comprehensive Income                                                    14,355                   3,687
         Retained Earnings                                                                        191,869                 187,623
                                                                                               ----------              ----------

           Total Shareholders' Equity                                                          $  210,634              $  195,720
                                                                                               ----------              ----------

           Total Liabilities and Shareholders' Equity                                          $1,098,787              $1,020,343
                                                                                               ==========              ==========

<FN>
See notes to financial statements.
</FN>

</TABLE>


                                       4
<PAGE>

<TABLE>
<CAPTION>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                      STATEMENTS OF OPERATIONS (Unaudited)

                                                                       (Dollars in thousands, except per share data)
                                                                     Three Months Ended            Nine Months Ended
                                                                         September 30                 September 30
                                                                  -----------------------       -----------------------
                                                                    2001           2000           2001           2000
   <S>                                                            <C>             <C>           <C>             <C>
   Revenues:
      Policy:
      Life Premiums, net of premiums ceded of
        $1,921, $638, $5,343 and
        $2,741, respectively                                       $10,573        $10,741        $32,101        $31,523
      Group and Other Premiums, net of premiums
        ceded of $31, $0, $70 and $0, respectively                     722            632          2,051          1,965
                                                                   -------        -------        -------        -------
          Total Policy Revenue                                     $11,295        $11,373        $34,152        $33,488
      Investment Income, net of expenses of
        $415, $456, $1,413 and $1,373, respectively                 14,744         14,259         45,318         43,989
      Equity in Earnings of Limited Partnerships                       614          1,122          1,416          3,492
      Net Realized (Losses) Gains on Investments                  (  2,034)         1,628       (  2,507)         5,480
      Other Income                                                     317            244            687            759
                                                                   -------        -------        -------        -------
   Total Revenues                                                  $24,936        $28,626        $79,066        $87,208
                                                                   -------        -------        -------        -------

   Benefits and Expenses:
      Death Benefits, net of reinsurance recoveries
        of $769, $961, $1,535 and $2,246, respectively             $ 4,022        $ 3,069        $ 9,306        $ 9,239
      Interest on Annuity Deposits                                   9,172          8,496         26,319         25,379
      Interest on Universal Life Deposits                            1,695          1,590          5,028          4,558
      Surrender and Other Benefits                                     268            327            733            873
      Increase in Future Life Policy Benefits, net of
        the increase in reserve credit for reinsurance
        ceded of $526, $216, $1,550 and
        $605, respectively                                           1,245          1,249          4,382          3,872
      Amortization of Deferred Policy Acquisition Costs              1,610          1,643          5,448          5,576
      Commissions, net of reinsurance reimbursements
        of $986, $165, $2,663 and $1,089, respectively                 707            580          1,618          1,282
      General Expenses                                               1,854          1,994          6,921          6,714
      Taxes, Licenses and Fees                                         502            464          1,547          1,561
                                                                   -------        -------        -------        -------
   Total Benefits and Expenses                                     $21,075        $19,412        $61,302        $59,054
                                                                   -------        -------        -------        -------

   Income From Operations                                          $ 3,861        $ 9,214        $17,764        $28,154
   Provision for Federal Income Taxes:
      Current                                                        3,107          2,455          7,640          7,835
      Deferred                                                    (  1,765)           733       (  1,493)         1,906
                                                                   -------        -------        -------        -------
   Total Provision for Federal Income Taxes                          1,342          3,188          6,147          9,741
                                                                   -------        -------        -------        -------

   Net Income                                                      $ 2,519        $ 6,026        $11,617        $18,413
                                                                   =======        =======        =======        =======

   Net Income Per Share                                            $  0.27        $  0.64        $  1.23        $  1.95
                                                                   =======        =======        =======        =======

   Dividends Declared Per Share                                    $ 0.195        $  0.00        $  0.78        $  0.54
                                                                   =======        =======        =======        =======

<FN>
See notes to financial statements.
</FN>

</TABLE>


                                       5
<PAGE>

<TABLE>
<CAPTION>

                      ERIE FAMILY LIFE INSURANCE COMPANY
                 STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

                                                                                  (Dollars in thousands)
                                                                     Three Months Ended           Nine Months Ended
                                                                         September 30                September 30
                                                                  -----------------------       -----------------------
                                                                    2001           2000           2001           2000

<S>                                                               <C>            <C>            <C>            <C>
Net Income                                                         $ 2,519        $ 6,026        $11,617        $18,413
                                                                   -------        -------        -------        -------
Unrealized Gains on Securities:
   Unrealized Holding Gains Arising
     During Period                                                   3,103          6,027         13,911         21,200
   Less:  Reclassification Adjustment for Losses (Gains)
     Included in Net Income                                          2,034       (  1,628)         2,507       (  5,480)
                                                                   -------        -------        -------        -------
     Net Unrealized Holding Gains
       Arising During Period                                       $ 5,137        $ 4,399        $16,418        $15,720
                                                                   -------        -------        -------        -------

Income Tax Expense Related to
   Unrealized Gains                                               (  1,802)      (  1,539)      (  5,750)      (  5,502)
                                                                   -------        -------        -------        -------

Other Comprehensive Income, Net of Tax                             $ 3,335        $ 2,860        $10,668        $ 10,218
                                                                   -------        -------        -------        --------

Comprehensive Income                                               $ 5,854        $ 8,886        $22,285        $ 28,631
                                                                   =======        =======        =======        ========

<FN>
See notes to financial statements.
</FN>

</TABLE>


                                       6
<PAGE>

<TABLE>
<CAPTION>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                      STATEMENTS OF CASH FLOWS (Unaudited)

                                                                                                    (Dollars in thousands)
                                                                                           Nine Months Ended      Nine Months Ended
                                                                                          September 30, 2001     September 30, 2000
                                                                                          ------------------     -------------------
<S>                                                                                            <C>                     <C>
Cash flows from operating activities:
   Net income                                                                                   $  11,617               $  18,413
   Adjustments to reconcile net income to net cash
      provided by operating activities:
        Net amortization of bond and mortgage premium                                                 175                     156
        Amortization of deferred policy acquisition costs                                           5,448                   5,576
        Real estate depreciation                                                                       62                      62
        Software amortization                                                                         187                     187
        Deferred federal income tax (benefit) expense                                          (    1,493)                  1,906
   Realized losses (gains) on investments                                                           2,507              (    5,480)
   Equity in income of limited partnerships                                                    (    1,416)             (    3,492)
   Increase in premiums receivable                                                             (      156)             (      256)
   Increase in other receivables                                                               (       54)             (       59)
   Increase in accrued investment income                                                       (    3,009)             (    4,002)
   Increase in policy acquisition costs deferred                                               (   10,062)             (    9,652)
   Decrease (increase) in other assets                                                                 86              (      353)
   Increase in reinsurance recoverables
      and reserve credits                                                                      (    1,810)             (    1,386)
   Increase in future policy benefits and claims                                                    6,775                   5,435
   Increase (decrease) in other policyholder funds                                                  1,541              (    1,610)
   Decrease in reinsurance premium due                                                         (      268)             (      419)
   Increase (decrease) in federal income taxes payable                                              2,955              (      104)
   Increase in accounts payable and due to affiliate                                                4,723                   6,040
                                                                                                ---------               ---------
          Net cash provided by operating activities                                             $  17,808               $  10,962
                                                                                                ---------               ---------

   Cash flows from investing activities:
   Purchase of investments:
      Fixed maturities                                                                         ($ 203,681)             ($  84,210)
      Equity securities                                                                        (   15,952)             (   28,686)
      Limited partnership contributions                                                        (    5,118)             (    6,966)
   Sales/maturities of investments:
      Sales of fixed maturities                                                                   142,135                  17,454
      Calls of fixed maturities                                                                    48,624                  23,574
      Equity securities                                                                            21,180                  24,765
      Limited partnerships                                                                          3,507                   4,634
   Principal payments received on mortgage loans                                                      883                   1,645
   Loans made to Policyholders                                                                 (    1,579)             (    1,586)
   Payments received on policy loans                                                                  812                     804
                                                                                                ---------               ---------
          Net cash used in investing activities                                                ($   9,189)             ($  48,572)
                                                                                                ---------               ---------

<FN>
See notes to financial statements
</FN>

</TABLE>


                                       7
<PAGE>

<TABLE>
<CAPTION>


                       ERIE FAMILY LIFE INSURANCE COMPANY
                STATEMENTS OF CASH FLOWS (Unaudited) (Continued)

                                                                                                    (Dollars in thousands)
                                                                                           Nine Months Ended      Nine Months Ended
                                                                                          September 30, 2001     September 30, 2000
                                                                                          ------------------     ------------------
<S>                                                                                            <C>                     <C>
Cash flows from financing activities:
Increase in annuity and supplementary contract deposits                                         $ 31,116                $  5,950
Increase in universal life deposits                                                               10,615                   9,263
Dividends paid to Shareholders                                                                 (   5,387)              (   4,961)
                                                                                                --------                --------
       Net cash provided by financing activities                                                $ 36,344                $ 10,252
                                                                                                --------                --------
Net increase (decrease) in cash and cash equivalents                                              44,963               (  27,358)
Cash and cash equivalents at beginning of year                                                    17,955                  27,358
                                                                                                --------                --------
Cash and cash equivalents at end of quarter                                                     $ 62,918                $      0
                                                                                                ========                ========

Supplemental disclosures of cash flow information: Cash paid during the year
for:
   Interest                                                                                     $   640                 $    648
   Income taxes                                                                                   4,550                    7,800

<FN>
See notes to financial statements
</FN>

</TABLE>


                                       8
<PAGE>

                       ERIE FAMILY LIFE INSURANCE COMPANY
                   NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                    All amounts are in thousands of dollars

NOTE A -- BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and with  the  instructions  to Form  10-Q and  Rule  10-01 of  Regulation  S-X.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the opinion of management,  all adjustments  (consisting of normal  recurring
accruals)  considered  necessary  for a fair  presentation  have been  included.
Operating  results for the  nine-month  period ended  September 30, 2001 are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2001. For further  information,  refer to the financial  statements
and footnotes  thereto  included in the Company's annual report on Form 10-K for
the year ended December 31, 2000.

NOTE B -- INVESTMENTS

Management  considers all fixed  maturities  and  marketable  equity  securities
available-for-sale. Marketable equity securities consist primarily of common and
non-redeemable  preferred  stock  while  fixed  maturities  consist of bonds and
notes. Management determines the appropriate  classification of fixed maturities
at the time of purchase and reevaluates such designation as of each statement of
financial position date. Available-for-sale securities are stated at fair value,
with the  unrealized  gains  and  losses,  net of tax,  reported  as a  separate
component of Shareholders' equity. Investments that have declined in value below
cost and for which the decline is  considered  to be "other than  temporary"  by
management, are written down to estimated realizable value. Such write downs are
made on an  individual  security  basis and are  recorded as a component  of net
realized gains/losses on investments in the Statements of Operations.

The following is a summary of available-for-sale securities:

<TABLE>
<CAPTION>

                                                                              Gross              Gross
                                                          Amortized         Unrealized        Unrealized        Estimated
                                                             Cost             Gains             Losses          Fair Value
                                                         -----------------------------------------------------------------
<S>                                                        <C>               <C>               <C>               <C>
September 30, 2001
Fixed Maturities:
U.S. Treasuries and Government
   Agencies                                                $ 22,104          $  1,332          $      0          $ 23,436
States and Political Subdivisions                               195                 2                 0               197
Special Revenue                                               9,427               307                 0             9,734
Public Utilities                                             63,217             2,456               337            65,336
U.S. Banks, Trusts and Insurance
   Companies                                                124,389             7,521             1,090           130,820
U.S. Industrial and Miscellaneous                           416,047            15,445             3,435           428,057
Foreign                                                      65,246             2,494               202            67,538
                                                           --------          --------          --------          --------
     Total Fixed Maturities                                $700,625          $ 29,557          $  5,064          $725,118
                                                           --------          --------          --------          --------

</TABLE>


                                       9
<PAGE>

                       ERIE FAMILY LIFE INSURANCE COMPANY
              NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE B -- INVESTMENTS (Continued)

<TABLE>
<CAPTION>

                                                                              Gross              Gross
                                                          Amortized         Unrealized        Unrealized        Estimated
                                                             Cost             Gains             Losses          Fair Value
                                                         -----------------------------------------------------------------
<S>                                                      <C>                 <C>               <C>               <C>
Equity Securities:
Common Stock:
U.S. Banks, Trusts and Insurance
   Companies                                             $  7,266            $  1,087          $     44          $  8,309
U.S. Industrial and Miscellaneous                          58,518              10,276            17,272            51,522
Foreign                                                       417                   0                58               359
Non-redeemable Preferred Stock:
U.S. Industrial and Miscellaneous                          12,603                 574                21            13,156
Foreign                                                    48,050               1,713               795            48,968
                                                         --------            --------          --------          --------
     Total Equity Securities                             $126,854            $ 13,650          $ 18,190          $122,314
                                                         --------            --------          --------          --------
       Total Available-for-Sale
       Securities                                        $827,479            $ 43,207          $ 23,254          $847,432
                                                         ========            ========          ========          ========

December 31, 2000
Fixed Maturities:
U.S. Treasuries and Government
   Agencies                                              $ 12,114            $    835          $      6          $ 12,943
States and Political Subdivisions                             195                   8                 0               203
Special Revenue                                             9,458                 271                 0             9,729
Public Utilities                                           71,732               1,774             1,439            72,067
U.S. Banks, Trusts and Insurance
   Companies                                              125,125               2,162             4,163           123,124
U.S. Industrial and Miscellaneous                         401,160               5,645            13,105           393,700
Foreign                                                    67,630                 489             4,394            63,725
                                                         --------            --------          --------          --------
     Total Bonds                                         $687,414            $ 11,184          $ 23,107          $675,491
Redeemable Preferred Stock                                  7,664                 496                 0             8,160
                                                         --------            --------          --------          --------
     Total Fixed Maturities                              $695,078            $ 11,680          $ 23,107          $683,651
                                                         --------            --------          --------          --------

Equity Securities:
Common Stock:
U.S. Banks, Trusts and Insurance
   Companies                                             $  7,447            $    754          $     58          $  8,143
U.S. Industrial and Miscellaneous                          53,931              20,867             9,810            64,988
Foreign                                                       703                   0               309               394
Non-redeemable Preferred Stock:
U.S. Industrial and Miscellaneous                          10,950                 143               271            10,822
Foreign                                                    54,358                 661             1,448            53,571
                                                         --------            --------          --------          --------
     Total Equity Securities                             $127,389            $ 22,425          $ 11,896          $137,918
                                                         --------            --------          --------          --------
       Total Available-for-Sale
       Securities                                        $822,467            $ 34,105          $ 35,003          $821,569
                                                         ========            ========          ========          ========

</TABLE>


                                       10
<PAGE>


                       ERIE FAMILY LIFE INSURANCE COMPANY
              NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE B -- INVESTMENTS (Continued)

The components of net realized  (losses) gains on investments as reported on the
Statements of Operations are included  below.  The securities  that were written
down   during   2001  were  in  the   Internet,   telecommunication   equipment,
semi-conductor, transportation and software development industry segments.

<TABLE>
<CAPTION>

                                                            Three Months Ended                    Nine Months Ended
                                                                September 30                          September 30
                                                         ---------------------------           -------------------------
                                                           2001                2000              2001              2000

   <S>                                                   <C>                 <C>               <C>               <C>
   Fixed maturities:
   Gross realized gains                                   $2,534              $    0            $4,334            $  432
   Gross realized losses                                 ( 1,140)            (     1)          ( 2,180)          (   411)
   Write downs                                           (   193)                  0           ( 1,744)                0
                                                          ------              ------            ------            ------
     Net realized gains (losses)                          $1,201             ($    1)           $  410            $   21
                                                          ------              ------            ------            ------

   Equity securities:
   Gross realized gains                                   $  970              $2,134            $1,609            $6,679
   Gross realized losses                                 (   215)            (   505)          (   536)          ( 1,220)
   Write downs                                           ( 3,990)                  0           ( 3,990)                0
                                                          ------              ------            ------            ------
     Net realized (losses) gains                         ($3,235)             $1,629           ($2,917)           $5,459
                                                          ------              ------            ------            ------

     Net realized (losses) gains on
       investments                                       ($2,034)             $1,628           ($2,507)           $5,480
                                                          ======              ======            ======            ======

</TABLE>

The  Company  participates  in a  securities  lending  program  whereby  certain
securities from its portfolio are loaned to other institutions for short periods
of time. A fee is paid to the Company by the borrower.  Collateral  that exceeds
the market value of the loaned  securities is  maintained by the lending  agent.
The  Company has an  indemnification  agreement  with the lending  agents in the
event a borrower becomes insolvent or fails to return  securities.  At September
30, 2001, the Company had loaned securities with a market value of $34.2 million
and secured by collateral of $35.3 million.

Limited  partnerships  include U.S. and foreign private equity,  real estate and
fixed income  investments.  The private  equity limited  partnerships  invest in
small- to medium-sized  companies.  The private equity limited  partnerships are
carried at  estimated  market  value with  unrealized  gains and losses,  net of
deferred  taxes,   reflected  in  shareholders'   equity  in  accumulated  other
comprehensive income. Investment income or loss is recognized on the sale of the
equity  investment.  Real  estate  and fixed  income  limited  partnerships  are
recorded using the equity method,  which approximates the Company's share of the
carrying value of the partnership.

The components of equity in earnings of limited partnerships as reported on the
Statements of Operations are as follows:

                          Three Months Ended          Nine Months Ended
                             September 30                September 30
                        ----------------------       ---------------------

                          2001           2000          2001          2000

   Private Equity       ($  180)       $   728       $    18       $   692
   Real Estate              569            229         1,128         1,783
   Fixed Income             225            165           270         1,017
                        -------        -------       -------       -------
                        $   614        $ 1,122       $ 1,416       $ 3,492
                        =======        =======       =======       =======


                                       11
<PAGE>


                       ERIE FAMILY LIFE INSURANCE COMPANY
              NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE B -- INVESTMENTS (Continued)

The Company began using forward currency contracts to hedge the risks related to
investments in partnerships in 2001.  These contracts are being recorded at fair
value on the  Statements  of Financial  Position.  A net gain of $83 and $15 has
been recognized in the Statements of Operations during the three and nine months
ended September 30, 2001, respectively.

Real estate  investments are carried on the Statements of Financial  Position at
cost, less allowances for depreciation and possible losses.  Commercial mortgage
loans  on real  estate  are  carried  at their  unpaid  balances,  adjusted  for
amortization  of premium or discount,  less allowances for possible loan losses.
Policy loans are carried at their unpaid balances.

NOTE C -- SEGMENT INFORMATION

The  Company's  portfolio of  Traditional  insurance  includes  permanent  life,
endowment and term policies,  including whole life. The Group and Other category
presented in the table below includes group life insurance and disability income
products.  The Corporate category includes investment income earned from surplus
not specifically attached to any one product type.

<TABLE>
<CAPTION>

Three Months Ended                                 Universal                    Group &
   September 30, 2001                Traditional     Life        Annuities       Other       Corporate      Total
---------------------                -----------   ---------     ---------     ---------     ---------    ---------
   <S>                                <C>           <C>           <C>           <C>           <C>          <C>
   Total policy revenue, net of
      reinsurance                     $  7,779      $  2,795       $     0       $   721      $      0     $ 11,295
   Total investment-related
     and other income                    1,338         1,792         8,792            34         1,685       13,641
                                      --------      --------       -------       -------      --------     --------
        Total revenues                $  9,117      $  4,587       $ 8,792       $   755      $  1,685     $ 24,936
                                      --------      --------       -------       -------      --------     --------

   Less: Total benefits and
      expenses                           6,468         3,444        10,248           915             0       21,075
                                      --------      --------       -------       -------      --------     --------

      Income (loss) from
        operations, before taxes      $  2,649      $  1,143      ($ 1,456)     ($   160)     $  1,685     $  3,861
                                      ========      ========       =======       =======      ========     ========

</TABLE>

<TABLE>
<CAPTION>

Nine Months Ended                                  Universal                    Group &
   September 30, 2001                Traditional     Life        Annuities       Other       Corporate      Total
---------------------                 ----------    --------     ---------      --------     ---------    ---------
   <S>                                <C>           <C>           <C>           <C>           <C>          <C>
   Total policy revenue, net of
      reinsurance                     $ 23,971      $  8,130      $      2      $  2,049      $      0     $ 34,152
   Total investment-related
     and other income                    4,332         5,433        28,606           106         6,437       44,914
                                      --------      --------      --------      --------      --------     --------
        Total revenues                $ 28,303      $ 13,563      $ 28,608      $  2,155      $  6,437     $ 79,066
                                      --------      --------      --------      --------      --------     --------

   Less: Total benefits and
      expenses                          20,247        10,926        28,390         1,739             0       61,302
                                      --------      --------      --------      --------      --------     --------

      Income from operations,
        before taxes                  $  8,056      $  2,637      $    218      $    416      $  6,437     $ 17,764
                                      ========      ========      ========      ========      ========     ========

</TABLE>


                                       12
<PAGE>


                       ERIE FAMILY LIFE INSURANCE COMPANY
              NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTE C -- SEGMENT INFORMATION (Continued)


<TABLE>
<CAPTION>

Three Months Ended                                 Universal                    Group &
   September 30, 2000                Traditional     Life        Annuities       Other       Corporate      Total
---------------------                -----------  -----------    ---------      -------      ---------    --------
   <S>                                <C>           <C>           <C>           <C>           <C>          <C>
   Total policy revenue, net of
      reinsurance                     $ 8,177       $ 2,564       $     0       $   632       $     0      $11,373
   Total investment-related
     and other income                   1,009         2,024        11,297            31         2,892       17,253
                                      -------       -------       -------       -------       -------      -------
        Total revenues                $ 9,186       $ 4,588       $11,297       $   663       $ 2,892      $28,626
                                      -------       -------       -------       -------       -------      -------

   Less: Total benefits and
      expenses                          6,170         3,401         9,337           504             0       19,412
                                      -------       -------       -------       -------       -------      -------

      Income from operations,
        before taxes                  $ 3,016       $ 1,187       $ 1,960       $   159       $ 2,892      $ 9,214
                                      =======       =======       =======       =======       =======      =======
</TABLE>

<TABLE>
<CAPTION>

Nine Months Ended                                  Universal                    Group &
   September 30, 2000                Traditional     Life        Annuities       Other       Corporate      Total
---------------------                -----------   ---------     ---------      -------      ---------    --------
   <S>                                <C>           <C>           <C>           <C>           <C>          <C>
   Total policy revenue, net of
     reinsurance                      $23,832       $ 7,691       $     1       $ 1,964       $     0      $33,488
   Total investment-related
     and other income                   3,142         6,268        35,208            96         9,006       53,720
                                      -------       -------       -------       -------       -------      -------
        Total revenues                $26,974       $13,959       $35,209       $ 2,060       $ 9,006      $87,208
                                      -------       -------       -------       -------       -------      -------

   Less: Total benefits and
      expenses                         19,365        10,693        27,661         1,335             0       59,054
                                      -------       -------       -------       -------       -------      -------

      Income from operations,
        before taxes                  $ 7,609       $ 3,266       $ 7,548       $   725       $ 9,006      $28,154
                                      =======       =======       =======       =======       =======      =======

</TABLE>

NOTE D -- REINSURANCE

The Company has entered  into  various  reinsurance  treaties for the purpose of
ceding the excess of life insurance over retention limits. Reinsurance contracts
do not relieve the Company from its  obligations  to  Policyholders.  Failure of
reinsurers to honor their obligations could result in losses to the Company. The
Company  evaluates  the  financial  condition  of its  reinsurers  and  monitors
concentrations  of credit risk to minimize  its exposure to  significant  losses
from reinsurer insolvencies. The Company considers all of its reinsurance assets
to  be   collectible,   therefore,   no  allowance  has  been   established  for
uncollectible  amounts.  The Company's  retention limit is $300,000 per life for
individual and $200,000 per life for group coverage.  For its disability  income
product,  the Company also has a 50%  coinsurance  agreement with its reinsurer.
Reinsurance  recoveries  for the three and nine months ended  September 30, 2001
and 2000 were $769, $961, $1,535 and $2,246, respectively.

NOTE E -- RECLASSIFICATION

Certain amounts, as previously reported in the 2000 financial  statements,  have
been  reclassified  to  conform  to  the  current  year's  financial   statement
presentation.


                                       13
<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The following  discussion and analysis  should be read in  conjunction  with the
historical financial  information and related notes found on pages 3 through 13,
herein,  and  Management's  Discussion  and Analysis of Financial  Condition and
Results of  Operations  contained in our Annual Report on Form 10-K for the year
ended December 31, 2000 as filed with the Securities and Exchange  Commission on
March 19, 2001.

FINANCIAL OVERVIEW

Net income  decreased to $2,519,073,  or $.27 per share, in the third quarter of
2001, compared to $6,026,086,  or $.64 per share, for the third quarter of 2000.
Realized capital losses on investments and a 31% increase in death benefits were
the primary reasons for the decrease in net income for the quarter. For the nine
months ended September 30, 2001 net income  decreased  36.9% to $11,617,498,  or
$1.23 per share, compared to $18,412,617, or $1.95 per share for the same period
in 2000. A decrease of $7,987,345 in realized gains on  investments  contributed
to the year-to-date decline in earnings.

REVENUES

Analysis of Policy Revenue

Total policy revenue  decreased  slightly to $11,294,503 in the third quarter of
2001 from  $11,373,232  during the same period in 2000. This was the result of a
larger  percentage  of new  business  being  issued  in the ERIE  Flagship  Term
policies where the Company's  retention is less and where the premium charged is
much more competitive than the Company's older term life insurance products.

The Company's sales of the ERIE Flagship Term product have continued to grow. As
such,  the  Company's  reinsurance  premiums  ceded and related  commission  and
expense allowance has increased for the year 2001 when compared with 2000. Under
the  reinsurance  treaty for this  product,  the  reinsurer  assumes  50% of all
insurance up to $600,000 (the Company's retention limit is $300,000) and assumes
all insurance above that amount.  The reinsurance  premiums ceded  recognized in
total life  premiums  related to the ERIE  Flagship  Term  product  amounted  to
$872,449 and $127,922  for the three months ended  September  30, 2001 and 2000,
respectively.  Total policy revenue increased $663,671,  or 2.0%, to $34,151,822
for the nine months ended September 30, 2001.

During the third quarter of 2001 the Company  introduced two new products - ERIE
Target Term and ERIE Flagship Term2.  The ERIE Target Term product has a minimum
face  amount of  $100,000  and  offers a very low  initial  premium  with  rates
guaranteed for 10 years on all plans.  Under the reinsurance treaty for this new
product,  the  reinsurer  assumes 90% of all  insurance  up to  $3,000,000  (the
Company's  retention  limit is $300,000)  and assumes all  insurance  above that
amount.  The ERIE Flagship Term2, now Erie Family Life's most comprehensive term
insurance plan for individuals desiring substantial  coverage,  offers a minimum
face amount of $100,000 and replaces the ERIE  Flagship  Term product  mentioned
above for new policy  sales  after  October 1,  2001.  Terms of the  reinsurance
treaty for this product are the same as those for the ERIE Flagship Term product
mentioned above.

Analysis of Investment-related Income

Net investment income increased $484,597,  or 3.4%, in the third quarter of 2001
due to increased levels of investment from cash flows generated by the Company's
operations and by cash from annuity and universal  life  deposits.  For the nine
months ended September 30, 2001, net investment income increased $1,329,211,  or
3.0%, to $45,318,036.


                                       14
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Continued)

The Company  realized net losses on  investments in the third quarter of 2001 of
$2,033,582  primarily as the result of charges taken to recognize the impairment
of securities  where the decline in market value was considered to be other than
temporary.  The Company  recorded net realized  gains of  $1,628,244 in the same
period in 2000.  During the third  quarter of 2001 equity  markets  continued to
decline  sharply.  The decline in the equity markets was further  exacerbated by
the September 11th terrorist attacks.

The  Company's  analysis  of equity  and  fixed  maturity  investments  involves
consideration of various factors such as the underlying  financial condition and
future growth and earnings  prospects of the issuer.  Management  also considers
market conditions  specific to operating segments and industries of the issuers.
During  the  third  quarter  of 2001,  certain  segments  of  technology  sector
investments  suffered  setbacks  causing  management to believe  declines in the
market value of certain  holdings in these  segments were other than  temporary.
Once declines in value are  determined to be other than temporary by management,
the security is written down to its estimated realizable value.  Realized losses
related to charges  taken to recognize  the  impairment  in values of equity and
fixed maturity securities totaled $4,183,465 in the third quarter of 2001.

Equity in  earnings  of limited  partnerships  decreased  $508,061  in the third
quarter  of 2001  when  compared  with the same  period  in 2000 as a result  of
partnership losses in private equity limited  partnerships.  For the nine months
ended September 30, 2001, equity in earnings of limited  partnerships  decreased
to $1,416,167  compared to  $3,492,283 in 2000. In 2000, a fixed income  limited
partnership  reported  partnership  earnings of $750,310 for the Company. In the
second quarter 2001, a private equity limited partnership wrote down investments
in the amount of $660,377.

BENEFITS AND EXPENSES

Analysis of Policy-related Benefits and Expenses

Net death benefits on life insurance policies increased $952,603 or 31.0% in the
third  quarter of 2001 to  $4,021,727.  Included in the third quarter 2001 death
benefits is one claim  amounting to $300,000,  net of  reinsurance  recoverable,
related to the September 11th  terrorist  attacks on the Pentagon in Washington,
D.C. This is the only known claim to the Company related to those tragic events.
For the nine months ended  September 30, 2001,  death benefits on life insurance
policies increased slightly to $9,305,886. Random fluctuations in death benefits
incurred can be expected when  mortality  results are measured over a short time
period  due to a small  number of  claims,  but a  potentially  large  amount of
benefit on some claims. These short-term fluctuations can influence quarterly or
annual results without impacting  long-term  profitability.  Management believes
that its underwriting philosophy and practices are sound.

Interest expense incurred on deposits increased 7.7% to $10,867,892 in the third
quarter of 2001, from $10,086,656 in the third quarter of 2000. Interest expense
incurred on deposits increased $1,409,053,  or 4.7%, to $31,346,455 for the nine
months ended  September 30, 2001.  This increase is the result of an increase in
new  annuity  deposits  and a decrease in annuity  surrenders  during the twelve
month period ended  September  30, 2001 when compared to the twelve month period
ended  September 30, 2000. The interest rate credited on universal life deposits
ranges  from  6.0% to 6.75% in 2001 and  2000.  The  rate  credited  on  annuity
deposits ranges from 5.0% to 6.25% in 2001.

The liability for future life policy  benefits is computed  considering  various
factors such as anticipated mortality, future investment yields, withdrawals and
anticipated  credit for  reinsurance.  The third quarter 2001 future life policy
benefit expenses were $1,245,242, compared to $1,248,684 in the third quarter of
2000.  For the nine months ended  September  30, 2001,  the liability for future
life policy benefits increased $510,350, or 13.2%, to $4,382,375.


                                       15
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Continued)

Amortization of deferred policy  acquisition  costs decreased 2.0% to $1,609,728
in the third quarter of 2001. For the nine months ended  September 30, 2001, the
decrease in amortization of deferred policy  acquisition costs was $128,018,  or
2.3%. Amortization totaled $5,144,539 for the year 2000.

Analysis of Other Expenses

Total operating expenses,  excluding taxes, licenses and fees decreased slightly
to $2,561,386  for the third  quarter 2001  compared to $2,573,899  for the same
period in 2000.  For the nine months ended  September 30, 2001,  these  expenses
increased $543,979, or 6.8%, to $8,539,908.

Certain  operating  expenses  of the  Company  are  paid by the  Erie  Indemnity
Company,  the management Company of the Erie Insurance Exchange,  and reimbursed
monthly by the  Company.  Additionally,  a portion of the Erie  Insurance  Group
common overhead expenses  attributed to the Company are also reimbursed monthly.
These expenses comprise the majority of the Company's general expenses.

General  expenses,  a component of total operating  expenses,  include wages and
salaries,  Employee benefits,  data processing expenses,  occupancy expenses and
other office and general administrative expenses of the Company. Certain general
expenses of the Company,  related to the  acquisition  and  underwriting  of new
policies, are deferred as policy acquisition costs (DAC). Medical inspection and
exam fees  related to new  business  production,  wages,  salaries  and Employee
benefits of underwriting personnel, and salaries,  employee benefits and bonuses
paid to branch sales Employees for the production of life and annuity  business,
are all deferred.

General expenses,  net of deferred policy acquisition costs, decreased $139,164,
or 7.0%, to $1,854,493 for the quarter ended September 30, 2001. These expenses,
before  consideration of deferred policy acquisition costs,  increased $113,550,
or 2.8%, to $4,138,726  for the quarter ended  September 30, 2001.  For the nine
months ended September 30, 2001, net general  expenses  increased  $207,484,  or
3.1%, to $6,921,582.

Another  component of total  operating  expenses is  commissions  to independent
Agents. Direct commission costs include new and renewal commissions,  production
bonuses and promotional  incentives to Agents.  These direct commission expenses
are reported on the Statements of Operations  net of  commissions  received from
reinsurers.  The reported  expense is also  affected by the amount of commission
expenses  capitalized  as DAC.  Commissions,  which  vary  with and are  related
primarily  to the  production  of new  business,  have  been  deferred  and  are
capitalized  as  DAC.  Most  first-year  and  incentive   commissions  and  some
second-year  commissions  qualify for deferral as DAC. For the third  quarter of
2001, net commission  expense  increased  $126,651 to $706,893,  compared to the
third  quarter of 2000.  For the nine  months  ended  September  30,  2001,  net
commission expense increased $336,495 to $1,618,326. Reflected in the nine month
results for 2000 was a  reduction  to  commissions  of  approximately  $137,000,
resulting from a decrease in promotional incentive costs for participation in an
Erie Insurance Group promotion.

FINANCIAL CONDITION

Reserve Liabilities

The Company's primary commitment is its obligation to meet the payment of future
policy benefits under the terms of its life insurance and annuity contracts.  To
meet these future  obligations,  the Company establishes life insurance reserves
based upon the type of policy,  the age of the insured,  and the number of years
the policy has been in force. The Company also establishes annuity and universal
life reserves  based on the amount of  Policyholder  deposits  (less  applicable
policy charges) plus interest  earned on those deposits.  On September 30, 2001,
there  was no material  difference  between the carrying value and fair value of


                                       16
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Continued)

the  Company's  investment-type  policies.  These  life  insurance  and  annuity
reserves  are  supported  primarily  by  the  Company's  long-term, fixed-income
investments,  as the  underlying  policy  reserves are generally also of a long-
term nature.

Investments

The Company's  investment  strategies are designed and portfolios are structured
to match the features of the life  insurance  and annuity  products  sold by the
Company.   Annuities  and  life  insurance  policies  are  long-term   products,
therefore,  the  Company's  investment  strategy  takes a long-term  perspective
emphasizing  investment  quality,   diversification,   and  superior  investment
returns.  The  Company's  investments  are managed  prudently  on a total return
approach that focuses on current income and capital appreciation.

The Company's  invested  assets are liquid in order to meet  commitments  to our
Policyholders.  At  September  30,  2001,  the  Company's  investment  portfolio
consisting of cash, marketable short-term  investments,  investment grade bonds,
common stock,  and preferred  stock,  totaled  $866.2  million or 78.8% of total
assets.  These resources  provide the liquidity the Company requires to meet the
unforeseen demands on its funds.

At  September  30,  2001,  the  amortized  cost of the  Company's  five  largest
investments in corporate debt  securities  totaled $32.2 million,  none of which
individually  exceeded $8.0  million.  These  investments  had a market value of
$34.5 million.

The Company's investments are subject to certain risks,  including interest rate
and price risk.  The Company  monitors  exposure to interest  rate risk  through
periodic reviews of asset and liability  positions.  Estimates of cash flows and
the impact of interest rate  fluctuations  relating to the investment  portfolio
are monitored regularly.

The Company's portfolio of marketable equity securities, which is carried on the
Statements of Financial  Position at estimated fair value, has exposure to price
risk,  the risk of potential  loss in  estimated  fair value  resulting  from an
adverse  change  in  prices.  The  Company's  objective  is to earn  competitive
relative  returns by investing in a diverse  portfolio of  high-quality,  liquid
securities.  Portfolio characteristics are analyzed regularly and market risk is
actively  managed  through a  variety  of  techniques.  Portfolio  holdings  are
diversified  across industries and concentrations in any one company or industry
are limited by parameters  established by management and the Company's  Board of
Directors.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity is a measure of the  Company's  ability to secure  enough cash to meet
its contractual obligations and operating needs.  Generally,  insurance premiums
are  collected  prior to claims and  benefit  disbursements  and these funds are
invested to provide  necessary cash flows in future years.  The Company's  major
sources of cash from  operations  are life  insurance  premiums  and  investment
income.  The net positive cash flow is used to fund Company  commitments  and to
build the investment  portfolio,  thereby increasing future investment  returns.
Net cash provided by operating  activities  for the nine months ended  September
30, 2001 was  $17,807,509  compared  to  $10,962,135  for the nine months  ended
September 30, 2000. The Company's  liquidity position remains strong as invested
assets  increased by more than $24 million  during the first nine months of 2001
to $905 million.

Annuity  and  universal  life  deposits,  which do not  appear as revenue on the
financial  statements,  are a source of funds.  These  deposits do not involve a
mortality or morbidity  risk and are accounted  for using methods  applicable to
comparable   "interest-bearing   obligations"   of  other  types  of   financial
institutions.


                                       17
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Continued)

This method of  accounting  records  deposits  as a  liability  rather than as a
revenue.  Annuity and  universal  life deposits  were  $18,019,868  in the third
quarter of 2001 and  $12,600,873  in the third  quarter of 2000.  The  Company's
ability  to  attract  policyholders  depends  in  large  part  on  the  relative
attractiveness  of  its  products  compared  to  other  investment  alternatives
commercially  available.  The stronger stock markets in the first nine months of
2000 compared to the weaker markets in the first nine months of 2001 contributed
to increased  annuity deposits because factors such as interest rate environment
and  performance  of the stock  market do  influence  the  Company's  ability to
attract policyholders.

The Company's current  commitments for expenditures as of September 30, 2001 are
primarily for policy death benefits, policy surrenders and withdrawals,  general
operating expenses,  federal income taxes, and dividends to Shareholders.  These
commitments  are met by cash flows from policy  revenue,  annuity and  universal
life  deposits and  investment  income.  Management  believes its cash flow from
operations  and its liquid  assets and  marketable  securities  will  enable the
Company  to meet any  foreseeable  cash  requirements.  As an added  measure  of
liquidity,  the Company  has  arranged  for a $10 million  line of credit with a
commercial  bank.  At September  30, 2001 and 2000,  there were no borrowings on
this line of credit.

The Company's 2000 year-end Risk Based Capital Analysis as reflected in its 2000
statutory  annual  statement shows total adjusted  capital of  $126,211,070  and
authorized  control level risk based capital of  $26,845,262.  These results are
indicative of the strong capital  position of the Company and are well in excess
of levels that would require regulatory action.

FACTORS THAT MAY EFFECT FUTURE RESULTS

eCommerce Program and Related Infrastructure Expenditures

Emerging technologies are increasingly  facilitating  transactions between firms
and their  customers.  Electronic  transactions  between life insurers and their
customers  or  potential  customers  are becoming  more  generally  accepted and
utilized.  In 2001, the Erie Insurance Group,  including the Company,  began the
development of several eCommerce  initiatives in support of the Group's business
model of distributing insurance products exclusively through independent agents.
These  initiatives  include  customer  interaction  systems that are intended to
improve  service  and  efficiency,  as well as result in  increased  sales.  The
eCommerce   program   also   includes   significant    information    technology
infrastructure  expenditures.  The cost of these  initiatives  will be allocated
among member companies of the Erie Insurance Group, including the Company. It is
estimated  that the  after-tax  effect on net  income of the  Company  will be a
reduction  in earnings  per share  between  $0.03 and $0.05 for 2001 and between
$0.01 and $0.03 per share for each of the next two years of the program.

Terrorist Actions

The Company is exposed to direct losses arising from possible  future  terrorist
actions. Additionally, current and future proposed federal measures might affect
the way the  life  insurance  industry  handles  losses  from  potential  future
terrorist  actions.  These proposals may include the  establishment of a federal
reinsurance  program for losses from terrorist  actions and possible  changes to
the tax laws governing the taxation of insurance companies. The Company may have
possible exclusions that would arise from future potential terrorist actions.

The Company's substantial portfolio of equity and fixed income investments could
also be affected by  potential  future  terrorist  actions  which may affect the
level of economic activity as well as investor confidence in the U.S.


                                       18
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Continued)

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company's  exposure to market risk is primarily  related to  fluctuations in
prices and interest rates. Quantitative and qualitative disclosures about market
risk  resulting  from changes in prices and interest  rates are included in Item
7A. in the  Company's  2000  Annual  Report  on Form  10-K.  There  have been no
material  changes in such risks or the Company's  periodic  reviews of asset and
liability  positions  during the nine  months  ended  September  30,  2001.  The
information contained in the Investments section of Management's  Discussion and
Analysis of Financial Condition and Results of Operations is incorporated herein
by reference.






"Safe Harbor"  Statement Under the Private  Securities  Litigation Reform Act of
1995:  Certain  forward-looking  statements  contained  herein involve risks and
uncertainties. Many factors could cause future results to differ materially from
those discussed. Examples of such factors include but are not limited to: better
(or worse) mortality rates, terrorist actions,  changes in insurance regulations
or legislation  that  disadvantage the Company in the marketplace and recession,
economic  conditions  or stock market  changes  affecting  pricing or demand for
insurance products or ability to generate investment income and returns.  Growth
and profitability have been and will be potentially materially affected by these
and other factors.




PART II.  OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

The Company did not file any reports on Form 8-K during the  three-month  period
ended September 30, 2001.


                                       19
<PAGE>


                                   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.


                                              Erie Family Life Insurance Company
                                                          (Registrant)

Date: November 2, 2001                             /s/ Stephen A. Milne
                                             (Stephen A. Milne, President & CEO)


                                                   /s/ Philip A. Garcia
                              (Philip A. Garcia, Executive Vice President & CFO)


                                       20