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

                                   FORM 10-QSB

(Mark One)

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

    For the quarterly period ended: June 30, 2003

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: 333-54996


                            Palomar Enterprises, Inc.
             (Exact name of registrant as specified in its charter)

           Nevada                                          88-0470235
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

     1802 N. Carson St. #212-2705
         Carson City, Nevada                                89701-1230
(Address of principal executive offices)                    (Zip Code)

                                 (775) 887-0670
              (Registrant's telephone number, including area code)

                         7898 E. Acoma Drive, Suite 203
                            Scottsdale, Arizona 85260
              (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 [ ]

          APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                        DURING THE PRECEDING FIVE YEARS:

Indicate  by check mark  whether  the  registrant  has filed all  documents  and
reports  required  to be filed by  Sections  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court. Yes [ ] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date: 41,907,857
<PAGE>
                            PALOMAR ENTERPRISES, INC.
                          (A Development Stage Company)

                                Table of Contents

                                                                         Page
                                                                         ----
PART I - FINANCIAL INFORMATION

          Item 1. Financial Statements                                     3

                  Balance Sheet                                            4

                  Statements of Operations                                 5

                  Statements of Cash Flows                                 6

          Item 2. Management's Discussion and Plan of Operation           10

          Item 3. Controls and Procedures                                 11

PART II - OTHER INFORMATION

          Item 2. Changes in Securities                                   11

          Item 4. Submission of Matters to a Vote of Security Holders     11

          Item 6. Exhibits                                                11

SIGNATURES                                                                12

CERTIFICATION                                                             13

                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1. UNAUDITED FINANCIAL STATEMENTS

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  reporting and pursuant to the rules and regulations of the Securities
and  Exchange  Commission  ("Commission").  While these  statements  reflect all
normal recurring adjustments which are, in the opinion of management,  necessary
for fair presentation of the results of the interim period,  they do not include
all of the information and footnotes required by generally  accepted  accounting
principles for complete financial statements. For further information,  refer to
the  financial  statements  and  footnotes  thereto,  which are  included in the
Company's  Annual Report on Form 10-KSB  previously filed with the Commission on
April 15, 2003.

     The accompanying notes are an integral part of these consolidated financial
statements.

                                       3
<PAGE>
PALOMAR ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET AS OF JUNE 30, 2003

                                   (Unaudited)

ASSETS
  Cash                                                                $   1,127

                                                                      ---------
TOTAL ASSETS                                                          $   1,127
                                                                      =========

LIABILITIES AND STOCKHOLDERS' EQUITY:

CURRENT LIABILITIES
  Accounts Payable                                                    $   1,050
  Accrued Expenses                                                        2,500
  Due to officers                                                        51,864
TOTAL CURRENT LIABILITIES                                                55,414
                                                                      ---------
TOTAL LIABILITIES                                                        55,414
                                                                      ---------
STOCKHOLDERS' EQUITY:
  Common stock, $.001 par value, 50,000,000 shares
   authorized, 24,744,857 shares issued;
   24,464,857 outstanding                                                24,745
  Additional paid-in capital                                            443,292
  Deficit accumulated during the development phase                     (494,906)
                                                                      ---------
                                                                        (26,869)
  Treasury Stock - at cost (280,000 shares)                             (27,418)
                                                                      ---------
      Total stockholders' equity                                        (54,287)

                                                                      ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                            $   1,127
                                                                      =========

                                       4
<PAGE>
PALOMAR ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                                                 Period from
                                                                                                March 10, 1999
                               Three months     Six months     Three months     Six months   (date of inception)
                                  ended           ended           ended           ended            through
                               June 30, 2003   June 30, 2003   June 30, 2002   June 30, 2002    June 30, 2003
                               -------------   -------------   -------------   -------------    -------------
<S>                             <C>             <C>              <C>            <C>              <C>
Revenues                        $        --     $       180      $       --     $       --       $      180
Cost of goods sold                        0              39               0              0               39
                                -----------     -----------      ----------     ----------       ----------

Gross profit                              0             141               0              0              141

Operating expenses
  General and administrative         80,727         136,628           1,666            358          166,889
  Facilities and rent                 2,089           8,161               0              0           34,813
  Rent to affiliated entity               0               0          10,000              0                0
  Consulting, legal and
   professional                      64,317          75,544           8,848            239          121,908
  Payroll and related costs         125,195         127,596               0              0          168,870
                                -----------     -----------      ----------     ----------       ----------
Total operating expenses            272,328         347,929          20,514            597          492,480

Loss from operations               (272,328)       (347,788)        (20,514)          (597)        (492,339)

Other expense - Loss on
 Investments                              0               0               0              0           (1,509)

Provision for income taxes                0               0               0              0                0
                                -----------     -----------      ----------     ----------       ----------
Net loss                        $  (272,328)    $  (347,788)     $  (20,514)    $     (597)      $ (493,848)
                                ===========     ===========      ==========     ==========       ==========
Net loss per weighted average
 share of common stock
 outstanding - basic and
 fully diluted                  $     (0.02)    $     (0.02)              *              *       $    (0.06)
                                ===========     ===========      ==========     ==========       ==========
Weighted average number of
 shares of common stock
 outstanding                     18,092,913      14,077,629       9,599,341      9,440,000        8,498,268
                                ===========     ===========      ==========     ==========       ==========
</TABLE>

* - Less than $0.01 per share

                                       5
<PAGE>
PALOMAR ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                     Period from
                                                                                    March 10, 1999
                                                  Six months       Six months     (date of inception)
                                                    ended            ended             through
                                                June 30, 2003     June 30, 2002     June 30, 2003
                                                -------------     -------------     -------------
<S>                                               <C>               <C>               <C>
Cash flows from operating activities:
  Net loss for the period                         $(347,788)        $ (22,877)        $(493,849)
  Adjustments to reconcile net loss to net
   cash provided by operating activities:
    Depreciation                                        550                 0             1,650
    Loss from disposal of fixed assets                9,350                 0             9,350
    Common stock issued for services                224,897                 0           273,197
  Changes in assets and liabilities:
    Prepaid expenses                                  7,726            (4,378)                0
    Other assets                                      2,400            (2,423)                0
    Accounts payable and accrued liabilities        (10,419)              520             3,550
                                                  ---------         ---------         ---------
Net cash used in operating activities              (113,284)          (29,158)         (206,102)

Cash flows from investing activities:
  Purchase of property and equipment                      0                 0           (11,000)
  Repayment of cash advances to affiliates           19,500
  Cash advances to officers and affiliates                0           (19,500)          (19,500)
                                                  ---------         ---------         ---------
Net cash used in investing activities                     0           (19,500)          (11,000)

Cash flows from financiang activities:
  Purchases of treasury stock                             0                 0           (28,475)
  Proceeds from sale of common stock                 52,000            55,000           194,840
  Proceeds from notes due to officers                51,864                 0            51,864
                                                  ---------         ---------         ---------
Net cash provided by investing activities           103,864            55,000           218,229
                                                  ---------         ---------         ---------

Net increase (decrease) in cash                      (9,420)            6,342             1,127
Cash, beginning of period                            10,547                 0                 0
                                                  ---------         ---------         ---------
Cash, end of period                               $   1,127         $   6,342         $   1,127
                                                  =========         =========         =========
</TABLE>

                                       6
<PAGE>
NOTE A - ORGANIZATION AND DESCRIPTION OF BUSINESS

Palomar  Enterprises,  Inc.  (Company)  was  incorporated  on March 10,  1999 in
accordance  with the laws of the State of  Nevada.  The  Company  was  initially
formed for the purpose of  developing  an aircraft  service  company for private
aircraft  owners that would offer on-site  preventative  maintenance  and repair
services.  There were no material  operating  activities under this plan, and it
was abandoned in 2001.

In October 2001, the Company launched a new debt acquisition business whereby it
would  acquire  non-performing  debt  from  financial  institutions  and use the
services of various  debtor  location  services to attempt  collection  of these
purchased  amounts.  There  have  been no  revenues  recorded  from this line of
business, and it is no longer being pursued.

In February 2003, the Company entered the nutraceutical  market.  Total revenues
to date  recorded  from  this  line of  business  is $180.  However,  management
determined that this business line would be extremely difficult to implement and
discontinued  all  efforts  in this  field.  On July  11,  2003,  the  Company's
management  was changed and the Company's  future  emphasis will be to develop a
business in the financial services sector.

The Company faces many operating and industry challenges. There is no meaningful
operating history to evaluate the Company's prospects for successful operations.
Future losses for the Company are  anticipated.  The proposed plan of operations
would include attracting investors to fund expansion and ongoing operations.

NOTE B - PREPARATION OF FINANCIAL STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance
with accounting  principles  generally accepted in the United States for interim
financial  information and the  instructions for Form 10-QSB and Regulation S-B.
Accordingly,  they do not include all of the information and footnotes  required
by accounting  principles  generally  accepted in the United States for complete
financial  statements.  All  adjustments  that, in the opinion of management are
necessary for a fair  presentation  of the results of operations for the interim
periods have been made and are of a recurring nature unless otherwise  disclosed
herein.  The results of  operations  for the three and six months ended June 30,
2003,  are not  necessarily  indicative of the results that will be realized for
the entire fiscal year. These financial statements should be read in conjunction
with the Company's  Annual Report on Form 10-KSB for the year ended December 31,
2002.

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the reporting period. Actual results could differ from those estimates.

Management further acknowledges that it is solely responsible for adopting sound
accounting  practices,   establishing  and  maintaining  a  system  of  internal
accounting  control and preventing and detecting  fraud. The Company's system of
internal  accounting  control is designed to assure,  among other items, that 1)
recorded  transactions  are valid; 2) valid  transactions  are recorded;  and 3)
transactions  are  recorded in the proper  period in a timely  manner to produce
financial  statements which present fairly the financial  condition,  results of
operations  and cash  flows of the  Company  for the  respective  periods  being
presented.

                                       7
<PAGE>
NOTE C - GOING CONCERN UNCERTAINTY

Due to the  lack  of  sustaining  operations  from  inception,  the  Company  is
considered in the  development  stage and, as such, has generated no significant
operating revenues and has incurred cumulative operating losses of approximately
$494,000

Further,  the Company has  abandoned  its initial  business plan and a successor
business plan to support future operations.

The Company is fully dependent upon the available cash on hand and either future
sales of securities or upon its current management and/or advances or loans from
controlling  shareholders or corporate  officers to provide  sufficient  working
capital to preserve the integrity of the corporate entity during the development
phase.

There is no assurance that the Company will be able to obtain additional funding
through the sales of additional  securities or, that such funding, if available,
will be obtained on terms  favorable to or affordable by the Company.  It is the
intent of management and controlling  shareholders to provide sufficient working
capital necessary to support and preserve the integrity of the corporate entity.

However,  there is no legal obligation for either management and/or  controlling
shareholders to provide such additional funding.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company will continue as a going concern.  As mentioned  above,  the Company has
not obtained the capital  needed to achieve  management's  plans and support its
operations,  and there is no  assurance  that the Company  will be able to raise
such  financing.  These  factors  raise  considerable  doubt about the Company's
ability to continue as a going concern.  The financial statements do not include
any adjustments that might result from this uncertainty.

NOTE D - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. Cash and cash equivalents

   The Company  considers all cash on hand and in banks,  including  accounts in
   book overdraft  positions,  certificates  of deposit and other  highly-liquid
   investments  with maturities of three months or less,  when purchased,  to be
   cash and cash equivalents.

2. Research and development expenses

   Research  and  development  expenses are charged to  operations  as incurred.
   There were no research and  development  costs  incurred in the three and six
   months ended June 30, 2003.

3. Advertising expenses

   Advertising  and  marketing  expenses are charged to  operations as incurred.
   Advertising expenses from date of inception have been immaterial.

4. Income Taxes

   The Company  utilizes the asset and liability method of accounting for income
   taxes  Temporary  differences  represent  differences  in the  recognition of
   assets and liabilities for tax and financial  reporting  purposes,  primarily
   accumulated depreciation and amortization.

   As of June 30,  2003,  the  deferred  tax  asset  is  related  solely  to the
   Company's net operating loss carryforward and is fully reserved.

                                       8
<PAGE>
5. Earnings (loss) per share

   Basic earnings (loss) per share is computed by dividing the net income (loss)
   by the  weighted-average  number of shares of common  stock and common  stock
   equivalents  (primarily  outstanding  options  and  warrants).  Common  stock
   equivalents  represent  the  dilutive  effect of the assumed  exercise of the
   outstanding stock options and warrants,  using the treasury stock method. The
   calculation of fully diluted  earnings  (loss) per share assumes the dilutive
   effect of the  exercise of  outstanding  options  and  warrants at either the
   beginning  of the  respective  period  presented  or the  date  of  issuance,
   whichever is later. As of June 30, 2003, the Company's  outstanding  warrants
   are  considered  anti-dilutive  due  to  the  Company's  net  operating  loss
   position.  Subsequent  to June 30,  2003,  the Company  issued  approximately
   17,163,000 additional shares.

6. Use of Estimates

   The  preparation  of  financial  statements  in  conformity  with  accounting
   principles  generally  accepted  in the  United  States of  America  requires
   management to make estimates and assumptions that affect the reported amounts
   of assets and liabilities and disclosure of contingent assets and liabilities
   at the date of the financial  statements and the reported amounts of revenues
   and expenses during the accounting  period.  Actual results could differ from
   those estimates.

NOTE E - FAIR VALUE OF FINANCIAL INSTRUMENTS

The  carrying  amount of cash,  accounts  payable  and accrued  liabilities,  as
applicable, approximates fair value due to the short term nature of these items.

NOTE F - RELATED PARTY TRANSACTIONS

Through June 30, 2003,  the Company has advanced $ 31,492 to various  affiliated
entities  and  former  corporate  officers.  These  advances  were all repaid or
written off as of December 31, 2002.

Upon the change of management  occurring on June 11, 2003,  the Company  granted
12,000,000 shares of the Company's common stock as consideration for services to
the two new officers and directors.  The issuance of these shares  resulted in a
controlling  ownership of the Company  resting with these two  individuals.  The
value of the  shares  issued,  based on the  trading  price  of the  stock,  was
$120,000  and is recorded as an expense  incurred in the three months ended June
30,  2003.   Additionally,   these  two  new  members  of  management   advanced
approximately  $52,000  in cash to the  Company  to pay  for  ongoing  operating
expenses.  Of that amount,  $40,000 was paid to members of former management for
their assistance in the transition. Two members of the former management entered
into consulting  agreements with the Company whereby the Company is committed to
pay these individuals an aggregate total of $13,333 per month for 12 months.

NOTE G - STOCK WARRANTS

In May and June 2002, in connection with the sale of Units pursuant to a Private
Placement  Memorandum,  dated May 15, 2002,  the Company  issued stock  warrants
(5/15/02  Warrants)  to the  purchasers  of  550,000  shares of common  stock to
purchase up to an additional 550,000 shares of restricted,  unregistered  common
stock at a price of $1.00 per share.

In August and September 2002, in connection with the sale of Units pursuant to a
Private  Placement  Memorandum,  dated August 1, 2002,  the Company issued stock
warrants  (8/1/02  Warrants) to the purchasers of 515,000 shares of common stock
to purchase  up to an  additional  515,000  shares of  restricted,  unregistered
common stock at a price of $1.00 per share.

                                       9
<PAGE>
                                   Warrants
                                 outstanding at
                                 June 30, 2003         Exercise price
                                 -------------         --------------
5/15/02 Warrants                    550,000        550,000   $1.00 per share
8/1/02 Warrants                     565,000        565,000   $1.00 per share
                                  ---------      ---------

Totals at March 31,2003           1,065,000      1,065,000
                                  =========      =========

The warrants have no stated expiration date.

              ITEM 2. MANAGEMENT'S DISCUSSION AND PLAN OF OPERATION

FORWARD-LOOKING STATEMENTS

     This Quarterly  Report contains  forward-looking  statements  about Palomar
Enterprises,  Inc.'s  business,  financial  condition and prospects that reflect
management's  assumptions and beliefs based on information  currently available.
We can give no assurance that the expectations indicated by such forward-looking
statements will be realized. If any of our management's assumptions should prove
incorrect, or if any of the risks and uncertainties underlying such expectations
should  materialize,  PALR's  actual  results may differ  materially  from those
indicated by the forward-looking statements.

     The key factors  that are not within our control and that may have a direct
bearing on operating results include,  but are not limited to, acceptance of our
services, our ability to expand our customer base, managements' ability to raise
capital  in the  future,  the  retention  of key  employees  and  changes in the
regulation of our industry.

     There may be other risks and circumstances that management may be unable to
predict.  When  used  in this  Quarterly  Report,  words  such  as,  "believes,"
"expects,"   "intends,"   "plans,"   "anticipates,"   "estimates"   and  similar
expressions are intended to identify forward-looking statements,  although there
may be certain forward-looking statements not accompanied by such expressions.

PLAN OF OPERATION

     On July 11, 2003, we changed our business  model to a business  development
company with an emphasis in the financial  services sector.  We will service the
residential  mortgage market,  with plans to launch a corporate finance division
in the near future.  However,  we have not yet commenced our planned,  principal
operations,  and we  cannot  guarantee  you  that we  will  be able to  generate
revenues through our planned residential mortgage operations.

     During the quarter ended June 30, 2003,  we have devoted our  activities to
the following:

     1. Restructuring and refining our business model,
     2. Discontinuing our prior operations and
     3. Relocating our corporate office and opening branch offices.

     Our management  does not  anticipate the immediate need to hire  additional
full- or part-time  employees over the next 12 months,  as the services provided
by our officers, directors and current employees appear sufficient at this time.
We believe that our operations are currently on a small scale that is manageable
by a few  individuals,  as our  responsibilities  are related  predominantly  to
administrative  duties at this time.  While we do not  foresee  the  addition of
employees  over  the  next  12  months,  if our  operations  expand  beyond  our
expectations, we may be required to hire personnel to fulfill our needs.

     We currently do not own any  significant  plant or equipment  that we would
seek to sell in the near future.

     During the quarter  ended June 30, 2003,  we have  relocated  our corporate
headquarters  from  Scottsdale,  Arizona to Carson  City,  Nevada.  We have also
opened an office in the San Diego, California area and seek to launch additional
offices within the next six- to nine-months of operations.

                                       10
<PAGE>
     We  have  not  paid  for  expenses  on  behalf  of any  of  our  directors.
Additionally, we believe that this fact shall not materially change.

     As of June 30, 2003, we had $1,127 of cash on hand.  Our current assets are
not sufficient to meet our current  liabilities.  Our  management  believes that
current cash resources are sufficient to satisfy our cash  requirements over the
next 12 months.  However,  our independent  auditors have expressed  substantial
doubt about our ability to continue as a going  concern  because we have limited
operations and have not commenced planned principal operations.  If our costs of
operations increase  disproportionate to our potential revenues,  we may need to
raise  additional  capital by issuing equity or debt  securities in exchange for
cash.  Notwithstanding  this,  there can be no assurance that we will be able to
secure additional funds to stay in business.

                         ITEM 3. CONTROLS AND PROCEDURES

     Within 90 days prior to the date of filing of this  report,  we carried out
an  evaluation,  under  the  supervision  and  with  the  participation  of  our
management,  including the Chief Executive Officer and Chief Financial  Officer,
of the design and operation of our disclosure controls and procedures.  Based on
this evaluation,  our Chief Executive  Officer and Chief Financial  Officer have
concluded  that  our  disclosure  controls  and  procedures  are  effective  for
gathering,  analyzing and disclosing the information we are required to disclose
in the reports we file under the  Securities  Exchange  Act of 1934,  within the
time  periods  specified  in the  SEC's  rules  and  forms.  There  have been no
significant  changes in our  internal  controls or in other  factors  that could
significantly   affect  internal  controls   subsequent  to  the  date  of  this
evaluation.

                           PART II - OTHER INFORMATION

                          ITEM 2. CHANGES IN SECURITIES

     On  or  about  May  16,  2003,  our  Board  of  Directors  appointed  Steve
Bonenberger  to serve as our  President  and  Secretary,  and Brent Fouch in the
capacity of Treasurer.  As a result of the  appointment  of Mr.  Bonenberger  as
President and Secretary and Mr. Fouch as Treasurer,  we entered into  agreements
to secure the  employment of said  individuals  to their  respective  positions.
Pursuant to the duly executed  employment  agreements,  Messrs.  Bonenberger and
Fouch each elected to accept 6,000,000 shares of restricted common stock in lieu
of cash  compensation  in the amount of $60,000 per  person.  The  aggregate  of
12,000,000 shares subject to this transaction shall be restricted  securities as
that term is defined in Paragraph  (a)(3) of Rule 144,  under the Securities Act
of 1933, as amended (the "Securities Act").

           ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     On July 25,  2003,  we will  hold a  special  meeting  of  shareholders  in
connection with an action that holders of the majority of the votes of our stock
intend to take by written  consent to vote in favor of a  resolution  which will
effect  an  amendment  to  our  articles  of  incorporation  by  increasing  our
authorized  common stock from  50,000,000 to  1,000,000,000  shares,  to further
authorize  the  creation of  100,000,000  shares of preferred  stock,  par value
$0.001 per  share,  and to  provide  for  indemnification  of our  officers  and
directors as permitted by Nevada law.

                                ITEM 6. EXHIBITS

(a) Exhibits                  Name and/or Identification of Exhibit
------------                  -------------------------------------
       99         Certification under Section 906 of the Sarbanes-Oxley Act
                  (18 U.S.C. Section 1350)


(b) Reports on Form 8-K

     May 20, 2003    Report Items 1, 5 and 6
     June 26, 2003   Amended Report Items 1, 6 and 7
     July 11, 2003   Report Item 5

                                       11
<PAGE>
                                   SIGNATURES

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

                            PALOMAR ENTERPRISES, INC.
                                  (Registrant)


                                      By: /s/ Steve Bonenberger
                                         ------------------------------
                                         Steve Bonenberger, President

                                      Date: July 31, 2003

                                       12
<PAGE>
                                  CERTIFICATION

I, Steve Bonenberger, certify that:

     1.  I have  reviewed  this  quarterly  report  on Form  10-QSB  of  Palomar
         Enterprises, Inc.;

     2.  Based on my  knowledge,  this  quarterly  report  does not  contain any
         untrue  statement of a material  fact, or omit to state a material fact
         necessary to make the  statements  made, in light of the  circumstances
         under which such  statements  were made, not misleading with respect to
         the period covered by this quarterly report; and

     3.  Based on my knowledge,  the financial  statements,  and other financial
         information  included in this quarterly  report,  fairly present in all
         material respects the financial  position,  results of operations,  and
         cash flows of the issuer as of, and for, the periods  presented in this
         quarterly report.

     4.  I am responsible for establishing and maintaining  disclosure  controls
         and procedures for the issuer and have:

         (i)  Designed such  disclosure  controls and  procedures to ensure that
              material  information  relating to the issuer is made known to me,
              particularly  during the period in which the periodic  reports are
              being prepared;
         (ii) Evaluated the  effectiveness of the issuer's  disclosure  controls
              and procedures as of June 30, 2003; and
         (iii)Presented in the report our  conclusions  about the  effectiveness
              of the disclosure  controls and procedures  based on my evaluation
              as of the Evaluation Date;

     5.  I have disclosed,  based on my most recent evaluation,  to the issuer's
         auditors and the audit  committee of the board of directors (or persons
         fulfilling the equivalent function):

         (i)  All  significant  deficiencies  in  the  design  or  operation  of
              internal  controls  which  could  adversely  affect  the  issuer's
              ability to record,  process,  summarize and report  financial data
              and  have  identified  for  the  issuer's  auditors  any  material
              weaknesses in internal controls (none were so noted); and
         (ii) Any fraud,  whether or not material,  that involves  management or
              other  employees  who  have a  significant  role  in the  issuer's
              internal controls (none were so noted); and

     6.  I have  indicated in the report  whether or not there were  significant
         changes  in  internal   controls  or  in  other   factors   that  could
         significantly  affect internal  controls  subsequent to the date of our
         most recent evaluation, including any corrective actions with regard to
         significant deficiencies and material weaknesses.

Date:  July 31, 2003

/s/ Steve Bonenberger
-----------------------------
President and CEO

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<PAGE>
                                  CERTIFICATION

I, Brent Fouch, certify that:

     1.  I have  reviewed  this  quarterly  report  on Form  10-QSB  of  Palomar
         Enterprises, Inc.;

     2.  Based on my  knowledge,  this  quarterly  report  does not  contain any
         untrue  statement of a material  fact, or omit to state a material fact
         necessary to make the  statements  made, in light of the  circumstances
         under which such  statements  were made, not misleading with respect to
         the period covered by this quarterly report; and

     3.  Based on my knowledge,  the financial  statements,  and other financial
         information  included in this quarterly  report,  fairly present in all
         material respects the financial  position,  results of operations,  and
         cash flows of the issuer as of, and for, the periods  presented in this
         quarterly report.

     4.  I am responsible for establishing and maintaining  disclosure  controls
         and procedures for the issuer and have:

         (i)  Designed such  disclosure  controls and  procedures to ensure that
              material  information  relating to the issuer is made known to me,
              particularly  during the period in which the periodic  reports are
              being prepared;
         (ii) Evaluated the  effectiveness of the issuer's  disclosure  controls
              and procedures as of June 30, 2003; and
         (iii)Presented in the report our  conclusions  about the  effectiveness
              of the disclosure  controls and procedures  based on my evaluation
              as of the Evaluation Date;

     5.  I have disclosed,  based on my most recent evaluation,  to the issuer's
         auditors and the audit  committee of the board of directors (or persons
         fulfilling the equivalent function):

         (i)  All  significant  deficiencies  in  the  design  or  operation  of
              internal  controls  which  could  adversely  affect  the  issuer's
              ability to record,  process,  summarize and report  financial data
              and  have  identified  for  the  issuer's  auditors  any  material
              weaknesses in internal controls (none were so noted); and
         (ii) Any fraud,  whether or not material,  that involves  management or
              other  employees  who  have a  significant  role  in the  issuer's
              internal controls (none were so noted); and

     6.  I have  indicated in the report  whether or not there were  significant
         changes  in  internal   controls  or  in  other   factors   that  could
         significantly  affect internal  controls  subsequent to the date of our
         most recent evaluation, including any corrective actions with regard to
         significant deficiencies and material weaknesses.

Date: July 31, 2003

/s/ Brent Fouch
-----------------------
Chief Financial Officer

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