| Nevada                                                                          | 95-2583928             |
|---------------------------------------------------------------------------------|------------------------|
| (State or Other Jurisdiction of                                                 |  (I.R.S. Employee |
|  Incorporation or Organization)                                            | Identification No.)    |
|                                                                            |                   |
|  23251 Mulholland Drive,  Woodland Hills, California  91364 |
|  (Address of Principal Executive Offices)  (Zip Code)                 |

| Class                                | Outstanding at August 13, 2010 |
|--------------------------------------|--------------------------------|
| Common Stock, $0 Par value per share | 5,316,454                      |

----

|                                                                                                     |   | June 30     |            |   | December 31 |   |
|----------------------------------------------------------------------------------------------------------|--------|-------------|-----------------|--------|-------------|--------|
|                                                                                                     |   | 2010        |            |   | 2009        |   |
|                                                                                                     |   | (Unaudited) |            |   |        |   |
| ASSETS                                                                                                   |   |        |            |   |        |   |
| Investments                                                                                              |   |        |            |   |        |   |
|    Available for sale:                                                                    |   |        |            |   |        |   |
|       Fixed maturities, at fair value (amortized cost:  June 30, |   |        |            |   |        |   |
|          2010 $122,013,854; December 31, 2009 $128,440,695) |   | $           | 126,339,816     |   |        | $      | 132,595,483 |   |
|    Short-term investments, at cost                                                        |   |        | 12,953,815      |   |        |   | 9,157,832 |   |
| Total Investments                                                                                        |   |        | 139,293,631     |   |        |   | 141,753,315 |   |
| Cash                                                                                                     |   |        | 33,262          |   |        |   | 118,512 |   |
| Accrued investment income                                                                                |   |        | 734,363         |   |        |   | 763,840 |   |
| Premiums and notes receivable, net                                                                       |   |        | 4,379,418       |   |        |   | 4,364,747 |   |
| Reinsurance recoverable:                                                                                 |   |        |            |   |        |   |   |   |
|    Paid losses and loss adjustment expenses                                               |   |        | 150,813         |   |        |   | 453,314 |   |
|    Unpaid losses and loss adjustment expenses                                             |   |        | 14,142,741      |   |        |   | 16,175,863 |   |
| Deferred policy acquisition costs                                                                        |   |        | 4,681,201       |   |        |   | 4,955,636 |   |
| Property and equipment (net of accumulated depreciation)                                                 |   |        | 382,644         |   |        |   | 221,255 |   |
| Deferred income taxes                                                                                    |   |        | 605,558         |   |        |   | 633,191 |   |
| Other assets                                                                                             |   |        | 701,585         |   |        |   |  668,979 |   |
| Total Assets                                                                                             |   | $           | 165,105,216     |   |        | $      | 170,108,652 |   |
|                                                                                                     |   |        |            |   |        |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                     |   |
| LIABILITIES                                                                                              |   |        |            |   |        |   |   |   |
| Unpaid losses and loss adjustment expenses                                                               |   | $           | 66,921,494      |   |        | $      | 71,585,408 |   |
| Unearned premiums                                                                                        |   |        | 17,473,646      |   |        |   | 18,811,415 |   |
| Advance premium and premium deposits                                                                     |   |        | 1,088,635       |   |        |   | 1,034,052 |   |
| Accrued expenses and other liabilities                                                                   |   |        |  5,213,832 |   |        |   |  5,362,437 |   |
| Total Liabilities                                                                                        |   | $           | 90,697,607      |   |        | $      | 96,793,312 |   |
|                                                                                                     |   |        |            |   |        |   |   |   |
| STOCKHOLDERS'  EQUITY                                                                          |   |        |            |   |        |   |   |   |
| Common stock, no par – authorized 10,000,000 shares; issued and                                    |   |        |            |   |        |   |   |   |
|    outstanding shares 5,316,454 at June 30, 2010, and 5,306,204 at                        |   |        |            |   |        |   |   |   |
|    December 31, 2009                                                                      |   | $           | 3,469,221       |   |        | $      | 3,437,343 |   |
| Accumulated other comprehensive income                                                                   |   |        | 2,855,135       |   |        |   | 2,742,160 |   |
| Retained earnings                                                                                        |   |        | 68,083,253      |   |        |   | 67,135,837 |   |
| Total Stockholders’ Equity                                                                         |   | $           | 74,407,609      |   |        | $      | 73,315,340 |   |
|                                                                                                     |   |        |            |   |        |   |   |   |
| Total Liabilities and Stockholders' Equity                                                               |   | $           | 165,105,216     |   |        | $      | 170,108,652 |   |

----

|                                                           |   | Three Months Ended |      |   | Six Months Ended |   |
|----------------------------------------------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                                                           |   | June 30            |      |   | June 30          |   |
|                                                           |   | 2010               |      |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| REVENUES                                                       |   |               |      |   |             |   |   |   |   |   |   |   |
| Insurance Company Revenues                                     |   |               |      |   |             |   |   |   |   |   |   |   |
|   Premium earned                                     |   | $                  | 8,962,425 |   |             | $      | 10,222,303 |   |   | $ | 18,351,583 |   |   | $ | 20,096,450 |   |
|   Premium ceded                                      |   |               | 1,873,791 |   |             |   | 2,359,124 |   |   |   | 3,820,722 |   |   |   | 4,614,112 |   |
|      Net premium earned               |   |               | 7,088,634 |   |             |   | 7,863,179 |   |   |   | 14,530,861 |   |   |   | 15,482,338 |   |
|   Investment income                                  |   |               | 907,400   |   |             |   | 1,143,324 |   |   |   | 1,845,658 |   |   |   | 2,367,184 |   |
|   Other income                                       |   |               | 175,159   |   |             |   | 196,228 |   |   |   | 355,285 |   |   |   | 400,538 |   |
|      Total Insurance Company Revenues |   |               | 8,171,193 |   |             |   | 9,202,731 |   |   |   | 16,731,804 |   |   |   | 18,250,060 |   |
|                                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Other Revenues from Insurance Operations                       |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   Gross commissions and fees                         |   |               | 1,129,115 |   |             |   | 1,354,357 |   |   |   | 2,378,253 |   |   |   | 2,794,211 |   |
|   Investment income                                  |   |               | 1,079     |   |             |   | 1,008 |   |   |   | 2,139 |   |   |   | 1,275 |   |
|   Finance charges and fees earned                    |   |               | 81,453    |   |             |   | 93,787 |   |   |   | 167,235 |   |   |   | 192,662 |   |
|   Other income                                       |   |               | 4,195     |   |             |   | 1,361 |   |   |   | 5,417 |   |   |   | 3,463 |   |
|      Total Revenues                   |   |               | 9,387,035 |   |             |   | 10,653,244 |   |   |   | 19,284,848 |   |   |   | 21,241,671 |   |
|                                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                       |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Losses and loss adjustment expenses                            |   |               | 4,574,615 |   |             |   | 4,787,233 |   |   |   | 9,882,764 |   |   |   | 9,421,886 |   |
| Policy acquisition costs                                       |   |               | 1,843,160 |   |             |   | 1,970,899 |   |   |   | 3,729,986 |   |   |   | 3,924,758 |   |
| Salaries and employee benefits                                 |   |               | 1,280,353 |   |             |   | 1,281,200 |   |   |   | 2,169,342 |   |   |   | 2,710,149 |   |
| Commissions to agents/brokers                                  |   |               | 170,763   |   |             |   | 295,186 |   |   |   | 362,741 |   |   |   | 608,977 |   |
| Other operating expenses                                       |   |               | 883,473   |   |             |   | 1,322,668 |   |   |   | 1,740,913 |   |   |   | 2,032,264 |   |
|      Total Expenses                   |   |               | 8,752,364 |   |             |   | 9,657,186 |   |   |   | 17,885,746 |   |   |   | 18,698,034 |   |
|                                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income Before Taxes                                            |   |               | 634,671   |   |             |   | 996,058 |   |   |   | 1,399,102 |   |   |   | 2,543,637 |   |
| Income Tax Expense                                             |   |               | 186,448   |   |             |   | 311,992 |   |   |   | 451,686 |   |   |   | 830,327 |   |
|      Net Income                  |   | $                  | 448,223   |   |             | $      | 684,066 |   |   | $ | 947,416 |   |   | $ | 1,713,310 |   |
|                                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| PER SHARE DATA:                                                |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                          |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
|     Earnings Per Share                     |   | $                  | 0.08      |   |             | $      | 0.12 |   |   | $ | 0.18 |   |   | $ | 0.31 |   |
|     Weighted Average Shares                |   |               | 5,308,548 |   |             |   | 5,566,665 |   |   |   | 5,307,376 |   |   |   | 5,567,960 |   |
| Diluted                                                        |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
|     Earnings Per Share                     |   | $                  | 0.08      |   |             | $      | 0.12 |   |   | $ | 0.18 |   |   | $ | 0.31 |   |
|     Weighted Average Shares                |   |               | 5,350,429 |   |             |   | 5,605,195 |   |   |   | 5,350,176 |   |   |   | 5,606,133 |   |

----

|                                                                                                                             |   | Three Months Ended |    |   | Six Months Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                                                                                                             |   | June 30            |    |   | June 30          |   |
|                                                                                                                             |   | 2010               |    |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                             |   |               |    |   |             |   |   |   |   |   |   |   |
| Net Income                                                                                                                       |   | $                  | 448,223 |   |             | $      | 684,066 |   |   | $ | 947,416 |   |   | $ | 1,713,310 |   |
| Other changes in comprehensive income, net of tax:                                                                               |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
|      Unrealized gains (losses) on securities classified as available-for-sale arising during the period |   |               | 246,774 |   |             |   | (1,006,026 | ) |   |   |  112,975 |   |   |   | (1,713,001 | ) |
|             Comprehensive Income (Loss)                              |   | $                  | 694,997 |   |             | $      | (321,960 | ) |   | $ | 1,060,391 |   |   | $ | 309 |   |

----

|                                                                                |   | For the Six Months Ended |         |
|-------------------------------------------------------------------------------------|--------|--------------------------|--------------|
|                                                                                |   | June 30                  |         |
|                                                                                |   | 2010                     |         |   | 2009 |   |
| Cash Flows from Operating Activities:                                               |   |                     |         |   |   |   |
|    Net Income                                                        |   | $                        | 947,416      |   |   | $ | 1,713,310 |   |
|    Adjustments to reconcile net income to net cash from operations   |   |                     |         |   |   |   |   |   |
|       Depreciation                                    |   |                     | 64,017       |   |   |   | 97,958 |   |
|       Bond amortization, net                          |   |                     | 39,100       |   |   |   | 171,748 |   |
|    Changes in assets and liabilities                                 |   |                     |         |   |   |   |   |   |
|       Premium, notes and investment income receivable |   |                     | 14,806       |   |   |   | (343,207 | ) |
|       Reinsurance recoverable                         |   |                     | 2,335,623    |   |   |   | 1,895,155 |   |
|       Deferred policy acquisition costs               |   |                     | 274,435      |   |   |   | (11,539 | ) |
|       Other assets                                    |   |                     | (59,575      | ) |   |   | 34,667 |   |
|       Unpaid losses and loss adjustment expenses      |   |                     | (4,663,914   | ) |   |   | (4,073,105 | ) |
|       Unearned premium                                |   |                     | (1,337,769   | ) |   |   | 427,957 |   |
|       Advance premium and premium deposits            |   |                     | 54,583       |   |   |   | 154,835 |   |
|       Accrued expenses and other liabilities          |   |                     | (321,605     | ) |   |   | (12,041 | ) |
|       Income taxes current/deferred                   |   |                     |  (3,598 | ) |   |   | (1,224,084 | ) |
| Net Cash (Used) by Operating Activities                                             |   |                     | (2,656,481   | ) |   |   | (1,168,346 | ) |
|                                                                                |   |                     |         |   |   |   |   |   |
| Investing Activities                                                                |   |                     |         |   |   |   |   |   |
| Purchase of fixed maturity investments                                              |   |                     | (15,962,258  | ) |   |   | (12,408,997 | ) |
| Proceeds from maturity of fixed maturity investments                                |   |                     | 22,350,000   |   |   |   | 20,500,000 |   |
| Net (increase) in short-term investments                                            |   |                     | (3,795,983   | ) |   |   | (5,789,762 | ) |
| (Additions) to property and equipment                                               |   |                     | (52,406      | ) |   |   | (56,503 | ) |
| Net Cash Provided by Investing Activities                                           |   |                     | 2,539,353    |   |   |   | 2,244,738 |   |
|                                                                                |   |                     |         |   |   |   |   |   |
| Financing Activities                                                                |   |                     |         |   |   |   |   |   |
| Dividends paid to shareholders                                                      |   |                     | -            |   |   |   | (1,002,173 | ) |
| Proceeds from issuance of common stock                                              |   |                     | 31,878       |   |   |   | - |   |
| Repurchase of common stock                                                          |   |                     |  -      |   |   |   |  (75,935 | ) |
| Net Cash Provided (Used) by Financing Activities                                    |   |                     | 31,878       |   |   |   | (1,078,108 | ) |
|                                                                                |   |                     |         |   |   |   |   |   |
| Net decrease in cash                                                                |   |                     | (85,250      | ) |   |   | (1,716 | ) |
| Cash at beginning of period                                                         |   |                     | 118,512      |   |   |   | 27,710 |   |
| Cash at End of Period                                                               |   | $                        | 33,262       |   |   | $ | 25,994 |   |
|                                                                                |   |                     |         |   |   |   |   |   |
| Supplemental Cash Flow Information                                                  |   |                     |         |   |   |   |   |   |
| Cash paid during the period for:                                                    |   |                     |         |   |   |   |   |   |
| Interest                                                                            |   |                     | -            |   |   |   | - |   |
| Income taxes                                                                        |   | $                        | 458,800      |   |   | $ | 2,058,800 |   |

----

| ·   | Fixed maturities: |
|--------------------|-------------------|

| o   | Investment Securities excluding long-term certificates of deposit – Fair values are obtained from a national quotation service. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------|

| o   | Long-term certificates of deposit – The carrying amounts reported at cost in the balance sheet for these instruments approximate their fair values. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Cash and short-term Investments – The carrying amounts reported at cost in the balance sheet approximate their fair values given the short-term nature of these instruments. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Premium and notes receivable – The carrying amounts reported at cost in the balance sheet approximate their fair values given the short-term nature of these instruments. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                            |   | Six Months Ended MonthsEnded |      |   | Year Ended  |   |
|-----------------------------------------------------------------|--------|------------------------------|-----------|--------|-------------|--------|
|                                                            |   | June 30                      |      |   | December 31 |   |
|                                                            |   | 2010                         |      |   | 2009        |   |   | 2009 |   |
| Expected expense for salaries and employee benefits             |   | $                            | 2,418,514 |   |        | $      | 2,710,149 |   |   | $ | 4,950,955 |   |
| Adjustment to profit sharing plan contribution                  |   |                         | (249,172  | )      |        |   | - |   |   |   | 249,172 |   |
| Salaries and benefits per Consolidated Statements of Operations |   | $                            | 2,169,342 |   |        | $      | 2,710,149 |   |   | $ | 5,200,127 |   |

|                                                     |   | Three Months Ended |      |   | Six Months Ended |   |
|----------------------------------------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                                                     |   | June 30            |      |   | June 30          |   |
|                                                     |   | 2010               |      |   |             | 2009   |   |   |   | 2010 |   |   |   | 2009 |   |
| Basic Earnings Per Share                                 |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |
| Net income numerator                                     |   | $                  | 448,223   |   |             | $      | 684,066 |   |   | $ | 947,416 |   |   | $ | 1,713,310 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding denominator          |   |               | 5,308,548 |   |             |   | 5,566,665 |   |   |   | 5,307,376 |   |   |   | 5,567,960 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
|      Basic Earnings Per Share   |   | $                  | 0.08      |   |             | $      | 0.12 |   |   | $ | 0.18 |   |   | $ | 0.31 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Diluted Earnings per Share                               |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income numerator                                     |   | $                  | 448,223   |   |             | $      | 684,066 |   |   | $ | 947,416 |   |   | $ | 1,713,310 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                      |   |               | 5,308,548 |   |             |   | 5,566,665 |   |   |   | 5,307,376 |   |   |   | 5,567,960 |   |
| Effect of dilutive securities                            |   |               | 41,881    |   |             |   | 38,530 |   |   |   | 42,800 |   |   |   | 38,173 |   |
| Diluted shares outstanding denominator                   |   |               | 5,350,429 |   |             |   | 5,605,195 |   |   |   | 5,350,176 |   |   |   | 5,606,133 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
|      Diluted Earnings Per Share |   | $                  | 0.08      |   |             | $      | 0.12 |   |   | $ | 0.18 |   |   | $ | 0.31 |   |

----

|                                               |   | Three Months Ended |       |   | Six Months Ended |   |
|----------------------------------------------------|--------|--------------------|------------|--------|------------------|--------|
|                                               |   | June 30            |       |   | June 30          |   |
|                                               |   | 2010               |       |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Revenues                                           |   |               |       |   |             |   |   |   |   |   |   |   |
| Insurance company operation                        |   | $                  | 8,171,193  |   |             | $      | 9,202,731 |   |   | $ | 16,731,804 |   |   | $ | 18,250,060 |   |
|                                               |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Other insurance operations                         |   |               | 3,558,680  |   |             |   | 4,084,900 |   |   |   | 7,217,979 |   |   |   | 8,738,197 |   |
| Intersegment eliminations (1)                      |   |               | (2,342,838 | )      |             |   | (2,634,387 | ) |   |   | (4,664,935 | ) |   |   | (5,746,586 | ) |
|    Total other insurance operations |   |               | 1,215,842  |   |             |   | 1,450,513 |   |   |   | 2,553,044 |   |   |   | 2,991,611 |   |
|                                               |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|    Total revenues                   |   | $                  | 9,387,035  |   |             | $      | 10,653,244 |   |   | $ | 19,284,848 |   |   | $ | 21,241,671 |   |
|                                               |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Before Income Taxes                  |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Insurance company operation                        |   | $                  | 1,562,823  |   |             | $      | 2,089,110 |   |   | $ | 2,794,636 |   |   | $ | 3,936,066 |   |
| Other insurance operations                         |   |               | (928,152   | )      |             |   | (1,093,052 | ) |   |   | (1,395,534 | ) |   |   | (1,392,429 | ) |
|    Total income before income taxes |   | $                  | 634,671    |   |             | $      | 996,058 |   |   | $ | 1,399,102 |   |   | $ | 2,543,637 |   |

----

|                                                            |   | As of   |        |
|-----------------------------------------------------------------|--------|---------|-------------|
|                                                            |   | June 30 |        |   | December 31 |   |
|                                                            |   | 2010    |        |   | 2009 |   |
| Assets                                                          |   |    |        |   |   |   |
| Insurance company operation                                     |   | $       | 152,753,896 |   |   | $ | 157,271,019 |   |
| Intersegment eliminations (2)                                   |   |    | (1,974,779  | ) |   |   | (824,887 | ) |
|      Total insurance company operation |   |    | 150,779,117 |   |   |   | 156,446,132 |   |
| Other insurance operations                                      |   |    | 14,326,099  |   |   |   | 13,662,520 |   |
|      Total Assets                      |   | $       | 165,105,216 |   |   | $ | 170,108,652 |   |

| (1)   | Intersegment revenue eliminations reflect commission paid by Crusader to Unifax Insurance Systems, Inc., (Unifax) a wholly owned subsidiary of the Company. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Intersegment asset eliminations reflect the elimination of Crusader receivables and Unifax payables. |
|-----------------|------------------------------------------------------------------------------------------------------|

----

|                                                   |   |      |        |   | Gross      |   |      | Gross      |   |   | Estimated |   |
|--------------------------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|-----------|--------|
|                                                   |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Fair      |   |
|                                                   |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Value     |   |
| June 30, 2010                                          |   |      |        |   |       |   |      |       |   |   |      |   |
| Available for sale:                                    |   |      |        |   |       |   |      |       |   |   |      |   |
|   Fixed maturities                           |   |      |        |   |       |   |      |       |   |   |      |   |
|   U.S. treasury securities                   |   | $         | 93,519,655  |   |       | $      | 4,288,064 |       |   |   | -         |   |   | $ | 97,807,719 |   |
|   Certificates of deposit                    |   |      | 24,472,997  |   |       |   | -         |       |   |   | -         |   |   |   | 24,472,997 |   |
|   Industrial and miscellaneous taxable bonds |   |      | 4,021,202   |   |       |   | 37,898    |       |   |   | -         |   |   |   | 4,059,100 |   |
|      Total fixed maturities   |   | $         | 122,013,854 |   |       | $      | 4,325,962 |       |   |   | -         |   |   | $ | 126,339,816 |   |
|                                                   |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
| December 31, 2009                                      |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
| Available for sale:                                    |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
|   Fixed maturities                           |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
|   U.S. treasury securities                   |   | $         | 103,361,652 |   |       | $      | 4,057,614 |       |   |   | -         |   |   | $ | 107,419,266 |   |
|   Certificates of deposit                    |   |      | 21,034,997  |   |       |   | -         |       |   |   | -         |   |   |   | 21,034,997 |   |
|   Industrial and miscellaneous taxable bonds |   |      | 4,044,046   |   |       |   | 97,174    |       |   |   | -         |   |   |   | 4,141,220 |   |
|      Total fixed maturities   |   | $         | 128,440,695 |   |       | $      | 4,154,788 |       |   |   | -         |   |   | $ | 132,595,483 |   |

|                                                                        |   | June 30 |       |   | December 31 |   |
|-----------------------------------------------------------------------------|--------|---------|------------|--------|-------------|--------|
|                                                                        |   | 2010    |       |   | 2009        |   |
| Gross unrealized appreciation of fixed maturities                           |   | $       | 4,325,962  |   |        | $      | 4,154,788 |   |
| Gross unrealized (depreciation) of fixed maturities                         |   |    | -          |   |        |   | - |   |
| Net unrealized appreciation on investments                                  |   |    | 4,325,962  |   |        |   | 4,154,788 |   |
| Deferred federal tax (expense)                                              |   |    | (1,470,827 | )      |        |   | (1,412,628 | ) |
|    Net unrealized appreciation, net of deferred income taxes |   | $       | 2,855,135  |   |        | $      | 2,742,160 |   |

|                                           |   | June 30 |       |   | December 31 |   |
|------------------------------------------------|--------|---------|------------|--------|-------------|--------|
|                                           |   | 2010    |       |   | 2009        |   |
| U.S. government money market fund              |   | $       | 9,681,321  |   |        | $      | 2,562,100 |   |
| Bank money market accounts                     |   |    | 2,122,669  |   |        |   | 3,348,973 |   |
| Certificates of deposit                        |   |    | 898,000    |   |        |   | 3,245,000 |   |
| U.S. treasury bill                             |   |    | 249,965    |   |        |   | - |   |
| Bank savings accounts                          |   |    | 1,860      |   |        |   | 1,759 |   |
|    Total short-term investments |   | $       | 12,953,815 |   |        | $      | 9,157,832 |   |

----

|                                                  |   | Three Months Ended June 30 |    |   | Six Months Ended June 30 |   |
|-------------------------------------------------------|--------|----------------------------|---------|--------|--------------------------|--------|
|                                                  |   | 2010                       |    |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Fixed maturities                                      |   | $                          | 902,256 |   |                     | $      | 1,126,887 |   |   | $ | 1,832,358 |   |   | $ | 2,339,031 |   |
| Short-term investments                                |   |                       | 6,223   |   |                     |   | 17,445 |   |   |   | 15,439 |   |   |   | 29,428 |   |
|      Total investment income |   | $                          | 908,479 |   |                     | $      | 1,144,332 |   |   | $ | 1,847,797 |   |   | $ | 2,368,459 |   |

----

|                                       |   | Three Months Ended June 30 |      |   | Six Months Ended June 30 |   |
|--------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                       |   |                       |      |   | Increase                 |   |   |   |   |   | Increase |   |
|                                       |   | 2010                       |      |   | 2009                     |   |   | (Decrease) |   |   | 2010 |   |   | 2009 |   |   | (Decrease) |   |
|                                       |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net premium earned                         |   | $                          | 7,088,634 |   |                     | $      | 7,863,179 |   |   | $ | (774,545 | ) |   | $ | 14,530,861 |   |   | $ | 15,482,338 |   |   | $ | (951,477 | ) |
|                                       |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                                      |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Losses and loss adjustment expenses   |   |                       | 4,574,615 |   |                     |   | 4,787,233 |   |   |   | (212,618 | ) |   |   | 9,882,764 |   |   |   | 9,421,886 |   |   |   | 460,878 |   |
| Policy acquisition costs              |   |                       | 1,843,160 |   |                     |   | 1,970,899 |   |   |   | (127,739 | ) |   |   | 3,729,986 |   |   |   | 3,924,758 |   |   |   | (194,772 | ) |
|        Total |   |                       | 6,417,775 |   |                     |   | 6,758,132 |   |   |   | (340,357 | ) |   |   | 13,612,750 |   |   |   | 13,346,644 |   |   |   | 266,106 |   |
|                                       |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Underwriting Profit (Before Income Taxes)  |   | $                          | 670,859   |   |                     | $      | 1,105,047 |   |   | $ | (434,188 | ) |   | $ | 918,111 |   |   | $ | 2,135,694 |   |   | $ | (1,217,583 | ) |

|                                                                    |   | Three Months Ended June 30 |      |   | Six Months Ended June 30 |   |
|-------------------------------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                                                    |   | 2010                       |      |   | 2009                     |   |   | Increase (Decrease) |   |   | 2010 |   |   | 2009 |   |   | Increase (Decrease) |   |
| Losses and loss                                                         |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  adjustment expenses:                                              |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Current accident year                                       |   | $                          | 6,466,258 |   |                     | $      | 5,840,939 |   |   | $ | 625,319 |   |   | $ | 13,782,228 |   |   | $ | 11,182,234 |   |   | $ | 2,599,994 |   |
|  Less: favorable development of all prior accident years |   |                       | 1,891,643 |   |                     |   | 1,053,706 |   |   |   | 837,937 |   |   |   | 3,899,464 |   |   |   | 1,760,348 |   |   |   | 2,139,116 |   |
|      Total                                     |   | $                          | 4,574,615 |   |                     | $      | 4,787,233 |   |   | $ | (212,618 | ) |   | $ | 9,882,764 |   |   | $ | 9,421,886 |   |   | $ | 460,878 |   |

----

----

----

|                  |   | Three Months Ended June 30 |      |   | Six Months Ended June 30 |   |
|-----------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                  |   |                       |      |   |                     |   |   | Increase |   |   |   |   |   |   |   |   | Increase |   |
|                  |   | 2010                       |      |   | 2009                     |   |   | (Decrease) |   |   | 2010 |   |   | 2009 |   |   | (Decrease) |   |
|                  |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct earned premium |   | $                          | 8,962,425 |   |                     | $      | 10,222,303 |   |   | $ | (1,259,878 | ) |   | $ | 18,351,583 |   |   | $ | 20,096,450 |   |   | $ | (1,744,867 | ) |
| Earned ceded premium  |   |                       | 1,873,791 |   |                     |   | 2,359,124 |   |   |   | (485,333 | ) |   |   | 3,820,722 |   |   |   | 4,614,112 |   |   |   | (793,390 | ) |
| Net premium earned    |   | $                          | 7,088,634 |   |                     | $      | 7,863,179 |   |   | $ | (774,545 | ) |   | $ | 14,530,861 |   |   | $ | 15,482,338 |   |   | $ | (951,477 | ) |

----

|                                        |   | Three Months Ended June 30 |        |   | Six Months Ended June 30 |   |
|---------------------------------------------|--------|----------------------------|-------------|--------|--------------------------|--------|
|                                        |   | 2010                       |        |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Average Invested Assets*                    |   | $                          | 135,977,534 |   |                     | $      | 142,753,325 |   |   | $ | 136,283,098 |   |   | $ | 143,805,893 |   |
| Total Investment Income                     |   | $                          | 908,479     |   |                     | $      | 1,144,332 |   |   | $ | 1,847,797 |   |   | $ | 2,368,459 |   |
| Annualized Yield on Average Invested Assets |   |                       | 2.7         | %      |                     |   | 3.2 | % |   |   | 2.7 | % |   |   | 3.3 | % |

|   | *The average is based on the beginning and ending balance of the amortized cost of the invested assets. |
|--------|---------------------------------------------------------------------------------------------------------|

|     Maturities by   Calendar Year |   | Par Value |        |   | Amortized Cost |   |        | Fair Value |   |   | WeightedAverage Yield |   |
|----------------------------------------------------------------------|--------|----------------|-------------|--------|----------------|--------|-------------|------------|--------|--------|-----------------------|--------|
| December 31, 2010                                                    |   | $              | 15,348,999  |   |           | $      | 15,369,873  |       |   | $      | 15,437,786            |   |   |   | 2.6 | % |
| December 31, 2011                                                    |   |           | 43,038,998  |   |           |   | 43,075,113  |       |   |   | 43,617,436            |   |   |   | 2.0 | % |
| December 31, 2012                                                    |   |           | 54,235,000  |   |           |   | 54,374,501  |       |   |   | 57,466,250            |   |   |   | 3.5 | % |
| December 31, 2013                                                    |   |           | 9,100,000   |   |           |   | 9,094,367   |       |   |   | 9,718,344             |   |   |   | 3.3 | % |
| December 31, 2015                                                    |   |           | 100,000     |   |           |   | 100,000     |       |   |   | 100,000               |   |   |   | 1.9 | % |
|    Total                                              |   | $              | 121,822,997 |   |           | $      | 122,013,854 |       |   | $      | 126,339,816           |   |   |   | 2.8 | % |

----

|                                                                             |   | Three Months Ended June 30 |      |   | Six Months Ended June 30 |   |
|----------------------------------------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                                                             |   |                       |      |   |                     |   |   | Increase |   |   |   |   |   |   |   |   | Increase |   |
|                                                                             |   | 2010                       |      |   | 2009                     |   |   | (Decrease) |   |   | 2010 |   |   | 2009 |   |   | (Decrease) |   |
| Policy fee income                                                                |   | $                          | 500,243   |   |                     | $      | 530,957 |   |   | $ | (30,714 | ) |   | $ | 1,011,289 |   |   | $ | 1,063,646 |   |   | $ | (52,357 | ) |
| Health insurance program                                                         |   |                       | 500,260   |   |                     |   | 673,180 |   |   |   | (172,920 | ) |   |   | 1,030,489 |   |   |   | 1,360,123 |   |   |   | (329,634 | ) |
| Membership and fee income                                                        |   |                       | 54,899    |   |                     |   | 65,029 |   |   |   | (10,130 | ) |   |   | 112,285 |   |   |   | 136,436 |   |   |   | (24,151 | ) |
| Other commission and fee income                                                  |   |                       | 60        |   |                     |   | 60 |   |   |   | - |   |   |   | 145 |   |   |   | 643 |   |   |   | (498 | ) |
| Daily automobile rental insurance program:                                  |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Commission income (excluding contingent commission) |   |                       | 73,653    |   |                     |   | 85,131 |   |   |   | (11,478 | ) |   |   | 156,263 |   |   |   | 167,849 |   |   |   | (11,586 | ) |
|     Contingent commission                                    |   |                       | -         |   |                     |   | - |   |   |   | - |   |   |   |  67,782 |   |   |   |  65,514 |   |   |   | 2,268 |   |
| Total                                                                            |   | $                          | 1,129,115 |   |                     | $      | 1,354,357 |   |   | $ | (225,242 | ) |   | $ | 2,378,253 |   |   | $ | 2,794,211 |   |   | $ | (415,958 | ) |

----

|                                                                         |   | Three Months Ended June 30 |             |   | Six Months Ended June 30 |   |
|------------------------------------------------------------------------------|--------|----------------------------|------------------|--------|--------------------------|--------|
|                                                                         |   | 2010                       |             |   | 2009                     |   |   | Increase (Decrease) |   |   | 2010 |   |   | 2009 |   |   | Increase (Decrease) |   |
| Losses and loss adjustment expenses:                                         |   |                       |             |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current accident year                                     |   | $                          | 6,466,259        |   |                     | $      | 5,840,939 |   |   | $ | 625,320 |   |   | $ | 13,782,229 |   |   | $ | 11,182,234 |   |   | $ | 2,599,995 |   |
| Less: favorable development  of all prior accident years |   |                       |   1,891,644 |   |                     |   |   1,053,706 |   |   |   |    837,938 |   |   |   |   3,899,465 |   |   |   |   1,760,348 |   |   |   |   2,139,117 |   |
|      Total                                          |   | $                          | 4,574,615        |   |                     | $      | 4,787,233 |   |   | $ | (212,618 | ) |   | $ | 9,882,764 |   |   | $ | 9,421,886 |   |   | $ | 460,878 |   |

----

----

|                                                |   | June 30 2010 |        |   | December 31 2009 |   |        | Increase(Decrease) |   |
|-----------------------------------------------------|--------|-------------------|-------------|--------|-----------------------|--------|-------------|--------------------|--------|
| Fixed maturity bonds (at amortized value)           |   | $                 | 97,540,857  |   |                  | $      | 107,405,698 |               |   | $ | (9,864,841 | ) |
| Short-term cash investments (at cost)               |   |              | 12,953,815  |   |                  |   | 9,157,832   |               |   |   | 3,795,983 |   |
| Certificates of deposit (over 1 year, at cost)      |   |              | 24,472,997  |   |                  |   | 21,034,997  |               |   |   | 3,438,000 |   |
|      Total invested assets |   | $                 | 134,967,669 |   |                  | $      | 137,598,527 |               |   | $ | (2,630,858 | ) |

|   | 31.1 | Certificate of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certificate of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 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. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 31.1 | Certificate of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certificate of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|