FORM 10-Q
                  SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, D.C. 20549

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



        For the Quarterly Period Ended:  JUNE 30, 1999
                                         -------------
                  Commission File Number: 0-10306
                                          -------

                    INDEPENDENCE HOLDING COMPANY
-----------------------------------------------------------------
         (Exact name of registrant as specified in its charter)



              DELAWARE                            58-1407235
-------------------------------    -----------------------------------
      (State of Incorporation)      (I.R.S. Employer Identification No.)


         96 CUMMINGS POINT ROAD, STAMFORD, CONNECTICUT             06902
------------------------------------------------------------------------
          (Address of principal executive offices)             (Zip Code)


    Registrant's telephone number, including area code: (203)358-8000


                           NOT APPLICABLE
-----------------------------------------------------------------------
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 .


           7,208,000 SHARES OF COMMON STOCK, $1.00 PAR VALUE
-----------------------------------------------------------------------
            Common stock outstanding as of August 12, 1999

<PAGE>
          INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES

                              INDEX



PART I - FINANCIAL INFORMATION                      PAGE NO.
------------------------------                      --------
 Consolidated Balance Sheets -
  June 30, 1999(unaudited)and December 31, 1998..       3

 Consolidated Statements of Operations -
  Three Months and Six Months Ended June 30, 1999
  and 1998(unaudited).............................      4

 Consolidated Statements of Cash Flows -
  Six Months Ended June 30, 1999
  and 1998(unaudited).............................      5

 Notes to Consolidated Financial Statements
 (unaudited)......................................      6 - 12

 Management's Discussion and Analysis of Results
  of Operations and Financial Condition...........     13 - 22

PART II - OTHER INFORMATION
---------------------------

 Item 4 - Submission of Matters to a Vote of
          Security Holders........................     23

 Item 6 - Exhibits and Reports on Form 8-K........     23

 Signature........................................     24

                                2
<PAGE>
INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS                JUNE 30,  DECEMBER 31,
                                             1999        1998
-------------------------------------------------------------------
ASSETS:                                 (UNAUDITED)
 Cash and cash equivalents.............$  4,107,000   $ 7,889,000
 Investments:
  Short-term investments...............   8,140,000    25,250,000
  Securities purchased under
   agreements to resell................  11,910,000    11,681,000
  Fixed maturities..................... 229,015,000   220,030,000
  Equity securities....................  24,863,000    17,004,000
  Other investments....................  53,914,000    52,191,000
                                        -----------   -----------
     Total investments................. 327,842,000   326,156,000

 Deferred policy acquisition costs.....  15,137,000    14,247,000
 Due and unpaid premiums...............  14,759,000    10,313,000
 Due from reinsurers................... 129,030,000   128,425,000
 Notes and other receivables...........   2,333,000     3,844,000
 Other assets..........................  10,221,000     9,438,000
                                        -----------   -----------
     TOTAL ASSETS......................$503,429,000  $500,312,000
                                        ===========   ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
 LIABILITIES:
 Future policy liabilities.............$219,134,000  $217,920,000
 Unearned premiums.....................  19,724,000    21,029,000
 Funds on deposit......................  78,131,000    80,792,000
 Insurance policy claims...............   5,563,000     5,380,000
 Other policyholders' funds............   3,619,000     3,370,000
 Financial instruments sold, but
  not yet purchased....................     264,000       458,000
 Due to brokers........................  28,993,000    18,933,000
 Due to reinsurers.....................  18,720,000    14,320,000
 Accounts payable, accruals and
  other liabilities....................  16,063,000    21,235,000
 Income taxes..........................   5,729,000     7,348,000
                                        -----------   -----------
     TOTAL LIABILITIES................. 395,940,000   390,785,000
                                        -----------   -----------
STOCKHOLDERS' EQUITY:
 Preferred stock (none issued).........       -             -
 Common stock, 7,289,100 and 7,367,000
  shares issued and outstanding, net
  of 2,329,419  and 2,249,019 shares in
  treasury, respectively...............   7,289,000     7,367,000
 Paid-in capital.......................  82,289,000    83,191,000
 Accumulated other comprehensive
  (loss) income:
  Unrealized (losses) gains on
   investments, net....................  (3,570,000)    2,643,000
 Retained earnings ....................  21,481,000    16,326,000
                                        -----------   -----------
     TOTAL STOCKHOLDERS' EQUITY........ 107,489,000   109,527,000
                                        -----------   -----------
     TOTAL LIABILITIES AND
      STOCKHOLDERS' EQUITY.............$503,429,000  $500,312,000
                                        ===========   ===========
     See Accompanying Notes to Consolidated Financial Statements.

                                3
<PAGE>
INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)               THREE MONTHS ENDED      SIX MONTHS ENDED
                               JUNE 30,               JUNE 30,
                           1999        1998        1999       1998
--------------------------------------------------------------------
REVENUES:
 Premiums earned......$18,887,000 $19,839,000 $39,097,000 $40,898,000
 Net investment
  income..............  6,495,000   6,331,000  12,145,000  12,252,000
 Net realized and
  unrealized gains
  (losses)............   (259,000)    200,000     173,000     413,000
 Equity income (loss).     98,000      30,000      90,000     (37,000)
 Other income.........  2,106,000   1,827,000   4,316,000   2,979,000
                       ----------  ----------  ----------  ----------
                       27,327,000  28,227,000  55,821,000  56,505,000
                       ----------  ----------  ----------  ----------
EXPENSES:
 Insurance benefits,
  claims and reserves. 14,459,000  14,760,000  29,065,000  31,147,000
 Amortization of
  deferred acquisition
  costs...............  1,234,000   1,284,000   2,491,000   2,476,000
 Selling, general and
  administrative
  expenses............  8,158,000   8,328,000  17,047,000  15,933,000
                       ----------  ----------  ----------  ----------
                       23,851,000  24,372,000  48,603,000  49,556,000
                       ----------  ----------  ----------  ----------
 Operating income
  before income taxes.  3,476,000   3,855,000   7,218,000   6,949,000
 Income tax expense...    764,000     908,000   2,063,000   1,511,000
                       ----------  ----------  ----------  ----------
NET INCOME............$ 2,712,000 $ 2,947,000 $ 5,155,000 $ 5,438,000
                       ==========  ==========  ==========  ==========
BASIC INCOME PER
 COMMON SHARE.........$       .37 $       .40 $       .70 $       .73
                       ==========  ==========  ==========  ==========
WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING...  7,308,000   7,435,000   7,335,000   7,433,000
                       ==========  ==========  ==========  ==========
DILUTED INCOME PER
 COMMON SHARE.........$       .37 $       .39 $       .69 $       .72
                       ==========  ==========  ==========  ==========
WEIGHTED AVERAGE DILUTED
 SHARES OUTSTANDING.... 7,416,000   7,576,000   7,451,000   7,565,000
                       ==========  ==========  ==========  ==========
      See Accompanying Notes to Consolidated Financial Statements.

                                4
<PAGE>
INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED JUNE 30,                      1999           1998
---------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income............................... $  5,155,000  $  5,438,000
 Adjustments to reconcile net income to
  net cash (used) provided by operating
  activities:
  Amortization of deferred policy
   acquisition costs......................    2,491,000     2,476,000
  Realized gains on sales of investments..     (173,000)     (334,000)
  Unrealized gains on trading securities..        -           (79,000)
  Equity (income) loss ...................      (90,000)       37,000
  Depreciation............................      302,000       241,000
  Deferred tax expense....................      407,000       528,000
  Other...................................     (478,000)      (50,000)
 Changes in assets and liabilities:
  Net purchases of trading securities.....     (582,000)     (277,000)
  Change in future policy liabilities,
   claims and other policy liabilities....   (1,454,000)   50,279,000
  Additions to deferred policy
   acquisition costs......................   (1,769,000)   (9,644,000)
  Change in net amounts due from and to
   reinsurers.............................    3,795,000    (9,696,000)
  Change in income tax liability..........     (539,000)   (1,023,000)
  Change in due and unpaid premiums.......   (4,447,000)   (3,879,000)
  Other...................................   (3,463,000)      (62,000)
                                            -----------   -----------
      Net cash (used) provided by
       operating activities...............     (845,000)   33,955,000
                                            -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
 Change in net amount due from and to
  brokers.................................   10,319,000   (32,789,000)
 Sales and maturities of short-term
  investments.............................   48,919,000    49,046,000
 Purchases of short-term investments......  (31,781,000)  (44,067,000)
 Net (purchases) sales of resale
  agreements..............................     (229,000)   19,586,000
 Sales and maturities of fixed maturities.  225,502,000    62,813,000
 Purchases of fixed maturities............ (244,449,000)  (69,389,000)
 Sales of equity securities...............   26,717,000    15,046,000
 Purchases of equity securities...........  (32,959,000)  (23,375,000)
 Proceeds on sales of other investments...    3,794,000     6,205,000
 Additional investments in other
  investments, net of distributions.......   (5,425,000)  (34,726,000)
 Other....................................   (1,131,000)     (633,000)
                                            -----------   -----------
      Net cash used by investing
       activities.........................     (723,000)  (52,283,000)
                                            -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Exercise of common stock options.........       21,000        55,000
 Repurchase of common stock and warrants..   (1,001,000)       (1,000)
 Payments of investment-type insurance
  contracts...............................     (866,000)     (868,000)
 Dividends paid...........................     (368,000)     (372,000)
                                            -----------   -----------
       Net cash used by financing
        activities........................   (2,214,000)   (1,186,000)
                                            -----------   -----------
 Decrease in cash and cash equivalents....   (3,782,000)  (19,514,000)
 Cash and cash equivalents, beginning
  of year.................................    7,889,000    23,028,000
                                            -----------   -----------
 Cash and cash equivalents, end of period. $  4,107,000  $  3,514,000
                                            ===========   ===========
         See Accompanying Notes to Consolidated Financial Statements.

                                5
<PAGE>
INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
---------------------------------------------------------------------
NOTE 1.  SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES

     (A)  BUSINESS AND ORGANIZATION

      Independence  Holding Company ("IHC") is a holding  company
engaged  principally  in the life and health  insurance  business
through  its  wholly-owned subsidiaries, Standard  Security  Life
Insurance Company of New York ("Standard Life"), Madison National
Life  Insurance Company, Inc. ("Madison Life") and First Standard
Security   Insurance   Company  ("First  Standard")   and   their
subsidiaries (collectively, the "Insurance Group").  IHC and  its
subsidiaries  (including  the Insurance Group)  are  collectively
referred to as the "Company".
     Geneve Corporation, a diversified financial holding company,
and  its  affiliated  entities hold approximately  57%  of  IHC's
outstanding common stock.

       (B)   PRINCIPLES  OF  CONSOLIDATION  AND  PREPARATION   OF
                          FINANCIAL STATEMENTS

      The consolidated financial statements have been prepared in
accordance with the requirements for quarterly reports on Form 10-
Q. In the opinion of management, all adjustments (consisting only
of  normal  recurring  accruals) that are necessary  for  a  fair
presentation  of the consolidated results of operations  for  the
interim  periods have been included. The consolidated results  of
operations  for  the three months and six months ended  June  30,
1999  are  not  necessarily  indicative  of  the  results  to  be
anticipated  for  the  entire  year. The  consolidated  financial
statements  should be read in conjunction with  the  consolidated
financial  statements  and  the notes included  in  IHC's  Annual
Report on Form 10-K for the year ended December 31, 1998. Certain
amounts in the prior year's consolidated financial statements and
notes  thereto  have  been  restated  to  conform  to  the   1999
presentation.
      The  preparation of financial statements in conformity with
generally  accepted accounting principles requires management  to
make  estimates  and  assumptions that  affect:(i)  the  reported
amounts   of  assets  and  liabilities;(ii)  the  disclosure   of
contingent  assets and liabilities at the date of  the  financial
statements;  and  (iii)  the reported  amounts  of  revenues  and
expenses during the reporting period. Actual results could differ
from those estimates.

                                6
<PAGE>
INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
------------------------------------------------------------------
NOTE 2.  OTHER INVESTMENTS

     The Company had invested $19,905,000 and $16,986,000 at June
30, 1999 and 1998, respectively, in Dolphin Limited Partnership-A
("DLP-A"),  a  limited  partnership which invests  in  relatively
"market   neutral"   strategies,  such   as   merger   arbitrage,
convertible  arbitrage and distressed situations.  The  condensed
statements of operations for DLP-A for the three months  and  six
months ended June 30, 1999 and 1998 are as follows:

                     THREE MONTHS ENDED         SIX MONTHS ENDED
                      1999        1998          1999        1998
                     ------------------         ----------------
                       (IN THOUSANDS)            (IN THOUSANDS)

Revenues...........$ 3,970      $ 1,099        $ 6,522   $ 3,177
Net income.........$ 2,906      $   599        $ 4,768   $ 2,100

IHC's share of
 net income........$ 1,034      $   275        $ 1,745   $   928

NOTE 3.  INVESTMENT SECURITIES

      The  cost,  (amortized cost with respect to  certain  fixed
maturities) gross unrealized gains, gross unrealized  losses  and
fair value of investments in securities are as follows:

                                      JUNE 30, 1999
                        -----------------------------------------
                                     GROSS       GROSS
                        AMORTIZED  UNREALIZED  UNREALIZED  FAIR
                          COST       GAINS      (LOSSES)   VALUE
                        -----------------------------------------
                                     (IN THOUSANDS)
FIXED MATURITIES
----------------
 AVAILABLE-FOR-SALE:
  Corporate securities...$ 49,642   $    39   $(1,702)  $ 47,979
  Collaterized mortgage
   obligations ("CMO's")
   and asset backed
   securities............  34,731       -        (686)    34,045
  U.S. Government and
   agencies obligations..  60,928        57    (1,932)    59,053
  GNMA's.................  86,608        67    (1,146)    85,529
  Obligations of states
   and political
   subdivisions..........   2,544        43      (178)     2,409
                          -------    ------    ------    -------
 Total fixed maturities..$234,453   $   206   $(5,644)  $229,015
                          =======    ======    ======    =======
EQUITY SECURITIES
 AVAILABLE-FOR-SALE:
  Common stock...........$ 18,491   $ 1,345   $  (413)  $ 19,423
  Options................     143      -          (93)        50
  Preferred stock........   4,740        61       (48)     4,753
                          -------    ------    ------    -------
                           23,374     1,406      (554)    24,226

                                7
<PAGE>
INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
----------------------------------------------------------------
NOTE 3.  INVESTMENT SECURITIES (CONTINUED)

                                      JUNE 30, 1999
                        ----------------------------------------
                                     GROSS       GROSS
                        AMORTIZED  UNREALIZED  UNREALIZED  FAIR
                          COST       GAINS      (LOSSES)   VALUE
                        ----------------------------------------
                                     (IN THOUSANDS)
TRADING:
  Common stock...........     749       177      (289)      637
                          -------    ------    ------    ------
 Total equity securities.$ 24,123   $ 1,583   $  (843)  $24,863
                          =======    ======    ======    ======
FINANCIAL INSTRUMENTS SOLD,
BUT NOT YET PURCHASED
---------------------
 TRADING:
  Common stock...........$    (74)  $     4   $   -     $   (70)
  Options................    (143)       23       (74)     (194)
                          -------    ------    ------    ------
 Total Financial.........$   (217)  $    27   $   (74)  $  (264)
                          =======    ======    ======    ======

                                    DECEMBER 31, 1998
                        ----------------------------------------
                                     GROSS       GROSS
                        AMORTIZED  UNREALIZED  UNREALIZED  FAIR
                          COST       GAINS      (LOSSES)   VALUE
                        ----------------------------------------
                                     (IN THOUSANDS)

FIXED MATURITIES
----------------
 AVAILABLE-FOR-SALE:
  Corporate securities...$ 42,472   $ 1,026   $  (291)  $ 43,207
  U.S. Government and
   agencies obligations..  55,133     1,533      (201)    56,465
  GNMA's................. 116,171     2,040      (147)   118,064
  Obligations of states
   and political
   subdivisions..........   2,346        69      (121)     2,294
                          -------    ------    ------    -------
 Total fixed maturities..$216,122   $ 4,668   $  (760)  $220,030
                          =======    ======    ======    =======

EQUITY SECURITIES
-----------------
 AVAILABLE-FOR-SALE:
  Common stock...........$ 10,513   $   956   $  (171)  $ 11,298
  Preferred stock........   4,339        76       (71)     4,344
                          -------    ------    ------    -------
                           14,852     1,032      (242)    15,642
                          -------    ------    ------    -------

TRADING:
  Common stock...........   1,448       295      (381)     1,362
                          -------    ------    ------    -------
 Total equity securities.$ 16,300   $ 1,327   $  (623)  $ 17,004
                          =======    ======    ======    =======

FINANCIAL INSTRUMENTS SOLD,
BUT NOT YET PURCHASED
---------------------
 TRADING:
  Common stock...........$   (386)  $  -      $   (72)  $   (458)
                          =======    ======    ======    =======

                                8
<PAGE>
INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
-----------------------------------------------------------------
NOTE 3. INVESTMENT SECURITIES (CONTINUED)

      The  amortized cost and fair value of fixed  maturities  at
June 30, 1999, by contractual maturity, are shown below. Expected
maturities  will  differ  from  contractual  maturities   because
borrowers  may have the right to call or prepay obligations  with
or  without call or prepayment penalties. Excluding extraordinary
paydowns,   the  average  life  of  mortgage  and  asset   backed
securities is materially less than the stated maturity.

                             AMORTIZED      FAIR        % 0F
                               COST        VALUE      FAIR VALUE
                             -----------------------------------
                                      (IN THOUSANDS)

Due after one year through
 five years..................$ 24,282    $ 23,788       10.4%
Due after five years through
 ten years...................  45,438      44,601       19.5%
Due after ten years..........  43,394      41,052       17.9%
                              -------     -------      -----
                              113,114     109,441       47.8%
CMO's and asset backed
 securities..................  34,731      34,045       14.9%
GNMA's - 30 year.............  86,608      85,529       37.3%
                              -------     -------      -----
                             $234,453    $229,015      100.0%
                              =======     =======      =====

      The  average  fair  value of trading  options  and  futures
contract sold, but not yet purchased was $111,000 and $85,000 for
1999 and 1998, respectively.
      Gross  gains  of $3,813,000 and gross losses of  $3,661,000
were  realized on sales of available-for-sale securities for  the
six months ended June 30, 1999.
      Gross gains of $1,367,000 and gross losses of $850,000 were
realized  on sales of available-for-sale securities for  the  six
months ended June 30, 1998.

NOTE 4.  INCOME PER COMMON SHARE

      Included in the diluted earnings per share calculation  for
1999  and 1998, respectively, are 108,000 and 141,000 shares  for
the  three  months ended June 30, 1999 and 1998 and  116,000  and
132,000  shares for the six months ended June 30, 1999  and  1998
from  the  assumed exercise of options using the  treasury  stock
method.  Net  income does not change as a result of  the  assumed
dilution  of  options. Warrants to purchase 1,939,739  shares  of
common  stock  at  $16.37  per share were  not  included  in  the
computation of diluted income per share because the strike  price
of  the warrants was greater than the average market price of the
common  shares during the three months and six months ended  June
30, 1999 and 1998.

                                9
<PAGE>
INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
-----------------------------------------------------------------
NOTE 5.  INCOME TAXES

      The  provision  for income taxes shown in the  consolidated
statements  of  operations was computed based  on  the  Company's
estimate of the effective tax rates expected to be applicable for
the  current  year,  including the expected  tax  impact  of  the
life/nonlife consolidation.

      The  income tax benefit for the six months ended  June  30,
1999  allocated to stockholders' equity for unrealized  gains  on
investment securities was $1,487,000, representing the change  in
deferred  tax (benefit) liability of ($21,000) at June  30,  1999
from  $1,466,000 at December 31, 1998.

       Cash  payments  for  income  taxes  were  $1,639,000   and
$2,022,000  for  the  six months ended June 30,  1999  and  1998,
respectively.

NOTE 6.  COMPREHENSIVE (LOSS) INCOME

      The  Company adopted SFAS No. 130, "Reporting Comprehensive
Income,  effective  January 1, 1998.  SFAS  No.  130  establishes
standards  for the reporting and display of comprehensive  income
and  its  components.  The  components  of  comprehensive  income
include  net  income  and  certain  amounts  previously  reported
directly in equity.

      Comprehensive  (loss) income for the three months  and  six
months ended June 30, 1999 and 1998 is as follows:

                           THREE MONTHS ENDED    SIX MONTHS ENDED
                            1999        1998     1999        1998
                           ------------------    ----------------
                            (IN THOUSANDS)        (IN THOUSANDS)

Net income................$ 2,712    $ 2,947   $ 5,155    $ 5,438
Unrealized (losses)
 gains, on securities,
 net of reclassification.. (3,783)       624    (6,213)       808
                           ------     ------    ------     ------
     Comprehensive (loss)
      income..............$(1,071)   $ 3,571   $(1,058)   $ 6,246
                           ======     ======    ======     ======

                                10
<PAGE>
INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
-----------------------------------------------------------------
NOTE 7.  NEW ACCOUNTING PRONOUNCEMENTS

      In  June  1998,  the Financial Accounting  Standards  Board
issued  SFAS No. 133, "Accounting for Derivative Instruments  and
Hedging  Activities."  The requirements for  SFAS  No.  133  were
delayed by SFAS No. 137, "Deferral of the Effective Date of  FASB
Statement   No.  133,"  and  are  now  effective  for   financial
statements  for periods beginning after June 15, 2000.  SFAS  No.
133  establishes  standards  for  accounting  and  reporting  for
derivative  instruments and for hedging activities.  It  requires
that  an  entity  recognize all derivatives as either  assets  or
liabilities in the balance sheet and measure those instruments at
fair  value.  The Company is currently evaluating the  impact  of
SFAS No. 133 but does not expect it to have a material impact  on
the Company.

NOTE 8.  SEGMENT REPORTING

      The  Insurance Group engages principally in  the  life  and
health  insurance business. Interest expense, taxes, and  general
expenses  associated with parent company activities are  included
in  Corporate.  Information by business  segment  for  the  three
months and six months ended June 30, 1999 and 1998 is as follows:

                           THREE MONTHS ENDED    SIX MONTHS ENDED
                            1999        1998     1999        1998
                           ------------------    ----------------
                            (IN THOUSANDS)        (IN THOUSANDS)

REVENUES:
 Medical Stop-Loss........$ 7,043   $ 7,350    $13,894   $13,091
 DBL......................  4,813     5,640     10,313    11,054
 Group Term Disability and
  Term Life...............  3,292     2,408      6,351     4,811
 Credit Life and
  Disability..............  5,291     5,969     10,376    12,228
 Managed Health Care......    682      (268)     1,309     1,188
 Special Disability.......     27        61         43       112
 Acquired Blocks
  /Other Business.........  5,557     6,318     11,850    12,376
 Corporate................    881       549      1,512     1,232
                           ------    ------     ------    ------
                           27,586    28,027     55,648    56,092
 Net Realized and
  Unrealized (Losses)
  Gains...................   (259)      200        173       413
                           ------    ------     ------    ------
                          $27,327   $28,227    $55,821   $56,505
                           ======    ======     ======    ======

                                11
<PAGE>
INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
----------------------------------------------------------------
NOTE 8.  SEGMENT REPORTING (CONTINUED)

OPERATING INCOME:
 Medical Stop-Loss........$   433   $   970    $  (262)  $ 1,573
 DBL......................    759       728      2,204       906
 Group Term Disability and
  Term Life...............    225      (244)        35      (196)
 Credit Life and
  Disability..............    834       668      1,438     1,607
 Managed Health Care......    195        66        856       352
 Special Disability.......    (25)      261        191       440
 Acquired Blocks
  /Other Business.........  1,188     1,275      2,512     1,946
 Corporate................    126       (69)        71       (92)
                           ------    ------     ------    ------
                            3,735     3,655      7,045     6,536
 Net Realized and
  Unrealized (Losses)
  Gains...................   (259)      200        173       413
                           ------    ------     ------    ------
                          $ 3,476   $ 3,855    $ 7,218   $ 6,949
                           ======    ======     ======    ======

                                12
<PAGE>
ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS
         ---------------------------------------------

       Independence  Holding  Company,  a  Delaware   corporation
("IHC"), is a holding company engaged principally in the life and
health  insurance business through its wholly-owned subsidiaries,
Standard  Security Life Insurance Company of New York  ("Standard
Life"),  Madison National Life Insurance Company, Inc.  ("Madison
Life")  and  First  Standard Security Insurance  Company  ("First
Standard")  and their subsidiaries (collectively, the  "Insurance
Group"). IHC and its subsidiaries (including the Insurance Group)
are  collectively  referred to as the  "Company."  All  remaining
income  (principally  income from parent company  liquidity)  and
expense   items   associated  with  parent   company   activities
(including  the  Company's remaining real  estate  holdings)  are
included in Corporate.

                      RESULTS OF OPERATIONS
                      ---------------------
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THREE MONTHS ENDED
JUNE 30, 1998
---------------------------------------------------------------

     The Company's operating income decreased $.4 million to $3.5
million for the period ended June 30, 1999 from $3.9 million  for
the  same  period  in  1998.  The Company had  net  realized  and
unrealized losses of $.3 million in 1999 and gains of $.2 million
in  1998.  Decisions to sell securities are based  on  cash  flow
needs,   investment   opportunities  and  economic   and   market
conditions,  thus  creating fluctuations in gains  (losses)  from
year  to  year. Excluding net realized and unrealized gains,  the
Company  had operating income of $3.7 million in 1999  and  1998.
Net  income was $2.7 million, or $.37 per share, diluted, for the
quarter ended June 30, 1999 compared to $2.9 million, or $.39 per
share,  diluted, for the quarter ended June 30, 1998. Income  tax
expense  decreased  to $.8 million in 1999 from  $.9  million  in
1998. The effective tax rate for the quarter ended June 30,  1999
was  favorably impacted by a decrease in the valuation  allowance
associated with certain temporary differences.

Insurance Group
---------------
     The Insurance Group's operating income decreased $.6 million
to  $3.3  million  in 1999 from $3.9 million in  1998.  Operating
income includes net realized and unrealized losses of $.3 million
in  1999  compared  to gains of $.2 million  in  1998.  Operating
income  excluding  net  realized and unrealized  gains  was  $3.6
million in 1999 compared to $3.7 million in 1998.

                                13
<PAGE>
      Premium revenues decreased $1.0 million to $18.9 million in
1999; premium revenues decreased $.2 million at Madison Life  and
$.8  million  at Standard Life. The decrease at Madison  Life  is
comprised  of:  a  $.4 million decrease in the  credit  lines  of
business,  primarily  due to the runoff of  acquisitions  of  two
single  premium  blocks  of business effective  in  1997;  a  $.2
million  decrease  in ordinary life and individual  accident  and
health  premiums; and a $.3 million decrease in dental  premiums;
such decreases are offset by: a $.5 million increase in long-term
disability  ("LTD")  premiums as  a  result  of  an  increase  in
retention  on this line of business and an increase  in  premiums
written  in  1999; and a $.2 million increase in the  group  term
life line of business. The decrease at Standard Life is comprised
of: a $.5 million decrease in stop-loss due to lower retention; a
$.9  million decrease in the DBL line due to terminations in 1998
resulting  in  a lower premium base in 1999; and  a  $.3  million
decrease  in an accident and health reinsurance facility  due  to
the  runoff of this business; such decreases are offset by: a $.8
million  increase in its HMO reinsurance line as a  result  of  a
recapture  of  an assumed block of business; and  a  $.1  million
increase in the group term life line of business.

      Total net investment income decreased $.2 million primarily
due  to  lower returns on fixed maturities. The annualized return
on  investments of the Insurance Group in the second  quarter  of
1999 was 7.0% compared to 7.2% in the second quarter of 1998.

      Other income increased $.3 million due to fee income earned
by  Standard  Life for the stop-loss line due to an  increase  in
gross written premiums. Equity income from partnerships increased
$.1 million from 1998 to 1999.

      Insurance  benefits,  claims  and  reserves  decreased  $.3
million, reflecting a decrease of $.4 million at Madison Life and
an  increase  of  $.1  million at Standard Life.  Madison  Life's
decrease  resulted  from:  a  $.4 million  decrease  in  interest
credited to universal life and annuity products due to the runoff
of  policies from prior year acquisitions; a $.9 million decrease
in the credit line of business due to the runoff of acquisitions;
and  a $.2 million decrease in claims and reserves in other  life
and  health lines of business; such decrease is offset by: a  $.9
million  increase  in ordinary life and individual  accident  and
health  reserves  and claims; and a $.2 million increase  in  LTD
claims  due  to the increase in premiums. The change at  Standard
Life  is comprised of: a $.2 million increase in net reserves  of
the  assumed block of ordinary life and annuity business;  a  $.2
million  increase  in  reserves in the  closed  blocks  of  life,
annuity  and  individual and group accident and health  lines  of
business; a $.7 million increase in HMO reinsurance reserves  due
to the recapture of premiums; such increases were offset by: a .4

                                14
<PAGE>
million  decrease  in  DBL claims and reserves  due  to  improved
experience  and a decrease in volume; and a $.6 million  decrease
in  the  accident  and  health reinsurance facility  due  to  the
decrease in premiums.
      Amortization of deferred acquisition costs and general  and
administrative  expenses for the Insurance  Group  decreased  $.4
million.  Madison  Life's  expenses remained  constant.  Standard
Life's  expenses decreased $.4 million. The decrease at  Standard
Life  is  primarily due to a decrease in franchise taxes  due  to
lower premiums and lower rates in 1999.

Corporate
---------
      Operating income was $.2 million for the quarter ended June
30,  1999  and  was  flat for the quarter ended  June  30,  1998.
Operating  income includes net realized and unrealized  gains  of
$.1  million in 1999. Operating income excluding net realized and
unrealized  gains was $.1 million in 1999 and was flat  in  1998.
Investment income increased $.2 million due to higher returns  on
certain  hedged equity investments in 1999. Selling, general  and
administrative expenses increased by $.1 million.

SIX  MONTHS ENDED JUNE 30, 1999 COMPARED TO SIX MONTHS ENDED JUNE
30, 1998
-----------------------------------------------------------------

     The Company's operating income increased $.3 million to $7.2
million  for the six months ended June 30, 1999 from $6.9 million
for  the  same  period in 1998. The Company had net realized  and
unrealized gains of $.2 million in 1999 and $.4 million in  1998.
Excluding  net  realized and unrealized gains,  the  Company  had
operating  income  of $7.0 million in 1999 as  compared  to  $6.5
million in 1998 which approximately consisted of: an increase  in
all  lines  of  business of $.4 million offset by a  decrease  in
yields  on investable assets of $.1 million (see Note 8 of  Notes
to  Consolidated  Financial  Statements).  Net  income  was  $5.2
million,  or  $.69 per share, diluted, for the six  months  ended
June  30,  1999  compared to $5.4 million,  or  $.72  per  share,
diluted,  for  the  six months ended June 30,  1998.  Income  tax
expense  increased to $2.1 million in 1999 from $1.5  million  in
1998 (see Capital Resources).

Insurance Group
---------------
      The Insurance Group had operating income of $7.0 million in
1999  and  1998.  Operating  income  includes  net  realized  and
unrealized  gains of $.1 million in 1999 compared to $.3  million
in  1998.  Operating income excluding net realized and unrealized
gains or losses was $6.9 million in 1999 compared to $6.7 million
in 1998.

                                15
<PAGE>
      Premiums earned decreased $1.8 million to $39.1 million  in
1999  from $40.9 million in 1998; premiums earned at Madison Life
decreased  $.5  million  and Standard Life  had  a  $1.3  million
decrease  in  premiums earned. The decrease at  Madison  Life  is
comprised  of:   a $1.4 million decrease in the credit  lines  of
business primarily due to the runoff of acquisitions; and  a  $.4
million  decrease in dental premiums due to the  runoff  of  this
line  of  business; such decreases were offset by: a $1.1 million
increase  in long-term disability premiums due to an increase  in
retention  on this block of business; and a $.2 million  increase
in  group  term  life premiums. The change at  Standard  Life  is
comprised  of:  a  $.8 million decrease in its DBL  line  due  to
terminations in 1998 resulting in a lower premium base in 1999; a
$.5  million  decrease  in the  accident and  health  reinsurance
facility  assumed due to the runoff of this line; a  $.5  million
decrease  in  stop-loss  premiums due to decreased  retention  in
1999;  partially offset by; a $.3 million increase in the  closed
blocks  of  life, annuity and individual and group  accident  and
health lines of business due to a reinsurance adjustment in 1998;
and  a  $.2  million increase in group term life due to increased
production.

      Total net investment income decreased $.5 million primarily
due to a decrease in yields. The annualized return on investments
of  the Insurance Group in the first six months of 1999 was  6.8%
compared to 7.3% in the first six months of 1998.

      Other income increased $1.3 million.  Madison Life's income
increased  $1.0 million primarily from fee income earned  by  the
managing  general  underwriter  ("MGU")  in  which  Madison  Life
acquired a controlling interest effective December 31, 1997; such
fee  income was offset by expenses described below in general and
administrative expenses. Other income at Standard Life  increased
$.3  million  due to an increase in stop-loss fee income  due  to
higher  gross premiums. Equity income from partnerships increased
$.1 million from 1998 to 1999.

      Insurance  benefits,  claims and  reserves  decreased  $2.1
million, reflecting a decrease of $.7 million at Madison Life and
a $1.4 million decrease at Standard Life. Madison Life's decrease
resulted  from:   a $1.9 million decrease in the credit  line  of
business  due  to the runoff of acquisitions; and a  $.3  million
decrease  in  interest  credited to universal  life  and  annuity
products; such decreases were partially offset by; a $.8  million
increase  in  ordinary life and individual  accident  and  health
reserves and claims due to new blocks of business; a $.1  million
increase  in  group  term life claims; and  an  increase  of  $.6
million  in  LTD claims due to the increase in premiums  on  this
line.  The change at Standard Life is comprised of: a $.9 million
decrease  in  reserves  on the accident  and  health  reinsurance

                                16
<PAGE>
facility  due to the runoff of this line; a $.5 million  decrease
in   the  point  of  service  line  of  business  which  reflects
reinsurance recoveries for prior year losses; and a $1.5  million
decrease  in  DBL claims and reserves due to improved  experience
($1.0 million) and decreased volume ($.5 million); such decreases
were offset by:  a $1.5 million increase in reserves in the stop-
loss line due to higher loss ratios.

      Amortization  of  deferred  policy  acquisition  costs  and
general  and  administrative expenses  for  the  Insurance  Group
increased  $1.0 million.  Madison Life's expenses increased  $1.6
million and Standard Life's expenses decreased $.6 million.   The
increase  at  Madison Life is primarily due to  $1.5  million  in
general  expenses from the MGU acquired on December 31, 1997  and
an  increase  in  other  general expenses  of  $.1  million.  The
decrease  at  Standard Life is primarily due to  a  reduction  in
premium taxes due to lower rates and a reduction in premiums.

Corporate
---------
      Operating income for the six months ended June 30, 1999 was
$.2  million compared to a loss of $.1 million in 1998. Operating
income  includes net realized and unrealized gains of $.1 million
in  1999  and  1998. Operating income excluding net realized  and
unrealized gains was $.1 million in 1999 compared to  a  loss  of
$.2  million in 1998. Investment income increased $.4 million due
to  higher returns on certain hedged equity investments. Selling,
general and administrative expenses increased $.1 million.

                            LIQUIDITY
                            ---------
Insurance Group
---------------
      The  Insurance Group normally provides cash flow from:  (i)
operations;  (ii) the receipt of scheduled principal payments  on
its  portfolio of fixed income securities; and (iii) earnings  on
investments.  Such  cash  flow  is  used  partially  to   finance
liabilities  for  insurance  policy benefits.  These  liabilities
represent   long-term  and  short-term  obligations   which   are
calculated using certain assumed interest rates.

     Asset Quality

     The nature and quality of insurance company investments must
comply  with all applicable statutes and regulations  which  have
been  promulgated primarily for the protection of  policyholders.
Of   the  aggregate  carrying  value  of  the  Insurance  Group's
investment  assets, approximately 75% was invested in  investment
grade  fixed  income securities, resale agreements, policy  loans
and  cash  and cash equivalents at June 30, 1999.  Also  at  such

                                17
<PAGE>
date,   approximately  96.8%  of  the  Insurance  Group's   fixed
maturities  were investment grade. These investments  carry  less
risk  and,  therefore, lower interest rates than other  types  of
fixed maturity investments. At June 30, 1999, approximately  3.2%
of  the  carrying  value  of  fixed maturities  was  invested  in
diversified   non-investment  grade   fixed   income   securities
(investments  in  such  securities  have  different  risks   than
investment grade securities, including greater risk of loss  upon
default,  and  thinner trading markets). Less  than  .1%  of  the
carrying value of the Company's total investments was represented
by  real  estate  and  mortgage loans. The Company  has  no  non-
performing fixed maturities.

     Risk Management

      The  Company  manages  interest rate  risk  by  seeking  to
maintain a portfolio with a duration and average life that  falls
within  the  band  of  the  duration  and  average  life  of  the
applicable  liabilities, and may utilize futures and  options  to
modify the duration and average life of such assets.

       The  Company  monitors  its  investment  portfolio  on   a
continuous basis and believes that the liquidity of the Insurance
Group  will not be adversely affected by its current investments.
This  monitoring  includes the maintenance of an  asset-liability
model  that  matches current insurance liability cash flows  with
current investment cash flows.

      In  the Company's analysis of the asset-liability model,  a
100 basis point change in interest rates on the Insurance Group's
liabilities  would  not be expected to have  a  material  adverse
effect  on  the  Company.  With respect to  its  liabilities,  if
interest rates were to increase, the risk to the Company is  that
policies  would be surrendered and assets would need to be  sold.
This  is  not  a material exposure to the Company since  a  large
portion of the Insurance Group's interest sensitive policies  are
burial  policies  that are not subject to the  typical  surrender
patterns  of other interest sensitive policies, and many  of  the
Insurance  Group's universal life and annuity policies come  from
liquidated companies which tend to exhibit lower surrender  rates
than  such policies of continuing companies. Additionally,  there
are  charges  to  help offset the benefits being surrendered.  If
interest  rates were to decrease substantially, the risk  to  the
Company is that some of its investment assets would be subject to
early  redemption.  This is not a material exposure  because  the
Company  would  have additional gains in its  portfolio  to  help
offset the future reduction of investment income. With respect to
its  investments,  the  Company employs (from  time  to  time  as
warranted)  investment strategies to mitigate interest  rate  and
other market exposures.

                                18
<PAGE>
       The  expected change in fair value of the Company's  fixed
income portfolio at June 30, 1999 given a 100 basis point rise or
decline  in interest rates is not materially different  than  the
expected change at December 31, 1998.

     Balance Sheet

      The  decrease  in short-term investments is offset  by  the
increase in fixed maturities and equity securities as the Company
changed  its  mix  of  investments  during  1999.  Future  policy
liabilities  increased  due  to the acquisition  of  a  block  of
individual life and annuity insurance policies in January 1999 by
Standard  Life. The decrease in cash is offset by a  decrease  in
accounts payable, accruals and other liabilities. Amounts due  to
brokers  increased  $10.0  million due to  timing  of  investment
trades.

      The  Company had net receivables from reinsurers of  $110.3
million  at  June  30, 1999.  Substantially all of  the  business
ceded  to  such  reinsurers is of short  duration.  All  of  such
receivables  are  current and are either due  from  highly  rated
companies  or  are adequately secured. Accordingly, no  allowance
for doubtful accounts was necessary at June 30, 1999 and December
31, 1998.

Corporate
---------
      Corporate derives its funds principally from: (i) dividends
and  interest  income from the Insurance Group;  (ii)  management
fees  from  its  subsidiaries; and (iii) investment  income  from
Corporate  liquidity.  Regulatory constraints  historically  have
not affected the Company's consolidated liquidity, although state
insurance  laws  have provisions relating to the ability  of  the
parent company to use cash generated by the Insurance Group.

      Total  corporate liquidity (cash, cash equivalents,  resale
agreements  and marketable securities) amounted to $16.7  million
at June 30, 1999. During 1999, IHC has repurchased 161,500 shares
of  common  stock  for  $1.9 million under a  repurchase  program
initiated in 1991.

Capital Resources
-----------------
      Due  to  its  superior capital ratios, broad licensing  and
excellent  asset  quality  and credit-worthiness,  the  Insurance
Group  remains  well  positioned to  increase  or  diversify  its
current activities, and to raise additional capital in the public
or  private  markets to the extent determined to be necessary  or
desirable,  in  order to pursue acquisitions or otherwise  expand
its operations.

                                19
<PAGE>
      It  is  anticipated that future acquisitions will be funded
internally  from existing capital and surplus and parent  company
liquidity including the $30.0 million credit facility.

       In  accordance  with  Statement  of  Financial  Accounting
Standards  ("SFAS") No. 115, the Company may carry its  portfolio
of fixed income securities either as held to maturity (carried at
amortized  cost), as trading securities (carried at  fair  market
value)  or as available-for-sale (carried at fair market  value);
the  Company  has chosen to carry all of its debt  securities  as
available-for-sale.  As a result of rising  interest  rates,  the
Company  experienced  a  decrease in  unrealized  gains  of  $6.2
million,  net of deferred tax expense. Such decrease is  included
in  total  stockholders' equity, reflecting unrealized losses  of
$3.6  million  at June 30, 1999 versus gains of $2.6  million  at
December  31, 1998. From time to time, as warranted, the  Company
employs investment strategies to mitigate interest rate and other
market exposures.

      The  results  of the 1999 second quarter reflect  a  higher
effective  tax rate than in the 1998 second quarter  due  to  the
loss  of  tax  benefits associated with the  utilization  of  net
operating  loss carryforwards which are no longer available.  The
effective  tax  rate  for the quarter ended  June  30,  1999  was
favorably  impacted  by  a  decrease in the  valuation  allowance
associated with certain temporary differences.

Year 2000
---------
     The Year 2000 issue is the result of computer programs being
written  using two digits rather than four digits to  define  the
applicable  year.  If not corrected, computer applications  could
fail  or  create  erroneous results by or at the Year  2000.  The
Company,  together with outside vendors engaged by  the  Company,
has  made  assessments  of  the  Company's  potential  Year  2000
exposure,  and  has  begun testing all of the Company's  systems.
Most of the Company's internal software and hardware have already
been tested and are compliant, and the Company believes that  all
mission  critical internal systems are Year 2000  compliant.  The
cost  of updating the Company's mission critical systems has  not
exceeded $100,000.

      The  Company believes that its greatest Year 2000  exposure
arises  from the possibility of non-compliance by, among  others,
its  MGUs,  MGAs,  HMOs,  agents,  TPAs,  producers,  reinsurers,
securities  brokers  and  bankers.   The  Company  has  requested
information from these third parties and is continuing to monitor
their  responses and evaluate any possible impact on the Company.
All of Standard Life's medical stop-loss and group life MGUs have
represented  that  they  are or will be Year  2000  compliant  by

                                20
<PAGE>
December  31, 1999 and Madison Life's largest MGA for group  life
and  long-term disability has indicated that it will be compliant
by  December 31, 1999. Standard Life has required that  its  MGUs
obtain Year 2000 compliance certifications from, and has supplied
the  MGUs  with  questionnaires to  be  completed  by,  TPAs  and
producers  with whom they place business. In addition,  the  U.S.
Senate  Special  Committee on the Year  2000  Technology  Problem
determined  that  the healthcare industry lags  in  its  progress
towards  Year  2000 preparedness.  In particular,  the  Committee
cited  concerns over the preparedness of large, rural and  inner-
city  hospitals,  and  doctor's  offices,  the  availability   of
pharmaceuticals  and  the preparedness of  health  claim  billing
systems.

      The  Company is in the development stages of formulating  a
contingency plan with respect to this exposure. With  respect  to
functions  performed internally by the Company,  if  one  of  the
Company's  systems is not compliant, the Company could resort  to
manual collection of premiums and processing of claims, or  could
temporarily   transfer   these   functions   to   affiliated   or
unaffiliated  entities.   With  respect  to  functions  currently
performed  externally,  the  Company could  consider  temporarily
performing  these  functions  internally,  or  transferring   the
functions  to another of the Company's vendors that is Year  2000
compliant.

      The  dates  of  expected completion and the  costs  of  the
Company's Year 2000 remediation efforts are based on management's
estimates,  which  were derived utilizing assumptions  of  future
events,  including the availability of certain  resources,  third
party  remediation  plans  and other factors.  There  can  be  no
guarantee that these expectations will be achieved; if the actual
timing  and costs for the Company's Year 2000 compliance  program
differ materially from those anticipated, the Company's financial
results  and  financial condition could be  materially  affected.
Additionally,  despite  testing by  the  Company,  the  Company's
systems may contain undetected errors or defects associated  with
Year  2000  date  functions.  The inability  of  the  Company  to
correctly  identify significant Year 2000 issues for  remediation
or  to  complete  its Year 2000 remediation and  testing  efforts
prior  to  respective critical dates, as well as the  failure  of
third   parties   (with  whom  the  Company  has   an   important
relationship) to identify, remediate and test their own Year 2000
issues  and  the resulting disruption which could  occur  in  the
Company's  systems, could have material adverse  effects  on  the
Company's  business,  results  of  operations,  cash  flows   and
financial condition.

                                21
<PAGE>
New Accounting Pronouncements
-----------------------------
      In  June  1998,  the Financial Accounting  Standards  Board
("FASB")   issued  SFAS  No.  133,  "Accounting  for   Derivative
Instruments  and Hedging Activities." The requirements  for  SFAS
No.  133 were delayed by SFAS No. 137, "Deferral of the Effective
Date  of  FASB  Statement No. 133," and  are  now  effective  for
financial  statements for periods beginning after June 15,  2000.
SFAS  No.  133 establishes standards for accounting and reporting
for  derivative  instruments  and  for  hedging  activities.   It
requires  that  an  entity recognize all  derivatives  as  either
assets  or  liabilities in the balance sheet  and  measure  those
instruments  at  fair  value.  The  Company  is  evaluating   the
statement but does not expect it to have a material impact on the
Company.

       Some   of  the  statements  included  within  Management's
Discussion  and Analysis may be considered to be forward  looking
statements  which are subject to certain risks and uncertainties.
Factors which could cause the actual results to differ materially
from  those suggested by such statements are described from  time
to  time  in the Company's Annual Report on Form 10-K  and  other
filings with the Securities and Exchange Commission.

                                22
<PAGE>
PART II.  OTHER INFORMATION
---------------------------

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

    At  its Annual Meeting of Stockholders held on June 22, 1999,
    the  following  seven nominees were re-elected  for  one-year
    terms on the Board of Directors:

          Harold E. Johnson, Allan C. Kirkman, Steven B. Lapin,
          Donald T. Netter, Edward Netter, Edward J. Scheider
          and Roy T.K. Thung

          The vote on the election of the above nominees was:

          For            At least 6,765,839 shares
          Withheld       No more than 13,325 shares

    In  addition, at such meeting, the appointment of KPMG LLP as
    independent  auditors  for 1999 was ratified  by  a  vote  of
    6,770,759 shares for, 4,451 shares against, and 3,954  shares
    abstaining. There were no broker nonvotes.


Item 6.   Exhibits and Reports on Form 8-K
          --------------------------------

     a)   1)   Exhibit 10(iii)(A)(6).  Form of Stock
               Appreciation Rights Agreement.

          2)   Exhibit 11.  Statement re:  computation
               of per share earnings.

          3)   Exhibit 27.  Financial Data Schedule.

     b)   No report on Form 8-K was filed during the quarter
          ended June 30, 1999.

                                23
<PAGE>
                            SIGNATURE

      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.

                             INDEPENDENCE HOLDING COMPANY
                             ----------------------------
                                   (THE REGISTRANT)



Dated: August 13, 1999          By:/s/ Teresa A. Herbert
                                   ---------------------
                                   Teresa A. Herbert
                                   Vice President, Chief
                                   Financial Officer and
                                   Controller


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