| 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      November 10, 2009 |
|-------------------------------------------|---------------------------------------|
| Common      Stock, $0 Par value per share | 5,429,143                   |

----

|                                                                                                             |   | September      30 |            |   | December      31 |   |
|------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------------|--------|------------------|--------|
|                                                                                                             |   | 2009              |            |   | 2008             |   |
|                                                                                                             |   | (Unaudited)       |            |   |             |   |
| ASSETS                                                                                                           |   |              |            |   |             |   |
| Investments                                                                                                      |   |              |            |   |             |   |
|    Available      for sale:                                                                       |   |              |            |   |             |   |
|       Fixed      maturities, at fair value (amortized cost: September 30,    2009, |   |              |            |   |             |   |
|          $115,279,542;      December 31, 2008, $135,540,354)        |   | $                 | 120,131,818     |   |             | $      | 142,971,980 |   |
|    Short-term      investments, at cost                                                           |   |              | 25,671,033      |   |             |   | 9,502,033 |   |
| Total    Investments                                                                                             |   |              | 145,802,851     |   |             |   | 152,474,013 |   |
| Cash                                                                                                             |   |              | 67,531          |   |             |   | 27,710 |   |
| Accrued      investment income                                                                                   |   |              | 715,627         |   |             |   | 1,301,238 |   |
| Premiums      and notes receivable, net                                                                          |   |              | 4,890,312       |   |             |   | 4,680,779 |   |
| Reinsurance      recoverable:                                                                                    |   |              |            |   |             |   |   |   |
|    Paid      losses and loss adjustment expenses                                                  |   |              | 69,038          |   |             |   | 114,734 |   |
|    Unpaid      losses and loss adjustment expenses                                                |   |              | 17,556,010      |   |             |   | 19,815,573 |   |
| Deferred      policy acquisition costs                                                                           |   |              | 5,112,515       |   |             |   | 5,219,892 |   |
| Property      and equipment (net of accumulated depreciation)                                                    |   |              | 269,119         |   |             |   | 359,553 |   |
| Deferred      income taxes                                                                                       |   |              | 389,986         |   |             |   | - |   |
| Other      assets                                                                                                |   |              | 834,942         |   |             |   |  609,484 |   |
| Total Assets                                                                                                     |   | $                 | 175,707,931     |   |             | $      | 184,602,976 |   |
|                                                                                                             |   |              |            |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY                                                                        |   |
| LIABILITIES                                                                                                      |   |              |            |   |             |   |   |   |
| Unpaid      losses and loss adjustment expenses                                                                  |   | $                 | 73,487,422      |   |             | $      | 78,654,590 |   |
| Unearned      premiums                                                                                           |   |              | 19,651,837      |   |             |   | 19,962,118 |   |
| Advance      premium and premium deposits                                                                        |   |              | 1,262,409       |   |             |   | 1,192,553 |   |
| Income      taxes payable                                                                                        |   |              | -               |   |             |   | 558,604 |   |
| Deferred      income taxes                                                                                       |   |              | -               |   |             |   | 795,088 |   |
| Accrued      expenses and other liabilities                                                                      |   |              |  6,024,785 |   |             |   |  6,481,768 |   |
| Total    Liabilities                                                                                             |   | $                 | 100,426,453     |   |             | $      | 107,644,721 |   |
|                                                                                                             |   |              |            |   |             |   |   |   |
| STOCKHOLDERS'  EQUITY                                                                                  |   |              |            |   |             |   |   |   |
| Common      stock, no par – authorized 10,000,000 shares; issued and      outstanding                      |   |              |            |   |             |   |   |   |
|    shares      5,429,343 at September 30, 2009, and 5,574,315 at December 31,      2008           |   | $                 | 3,497,856       |   |             | $      | 3,569,099 |   |
| Accumulated      other comprehensive income                                                                      |   |              | 3,202,502       |   |             |   | 4,904,873 |   |
| Retained      earnings                                                                                           |   |              | 68,581,120      |   |             |   | 68,484,283 |   |
| Total Stockholders’      Equity                                                                            |   | $                 | 75,281,478      |   |             | $      | 76,958,255 |   |
|                                                                                                             |   |              |            |   |             |   |   |   |
| Total Liabilities and      Stockholders' Equity                                                                  |   | $                 | 175,707,931     |   |             | $      | 184,602,976 |   |

----

|                                                                |   | Three      Months Ended |       |   | Nine      Months Ended |   |
|---------------------------------------------------------------------|--------|-------------------------|------------|--------|------------------------|--------|
|                                                                |   | September 30            |       |   | September 30           |   |
|                                                                |   | 2009                    |       |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
| REVENUES                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |
| Insurance      Company Revenues                                     |   |                    |       |   |                   |   |   |   |   |   |   |   |
|   Premium      earned                                     |   | $                       | 10,088,770 |   |                   | $      | 10,566,831 |   |   | $ | 30,185,220 |   |   | $ | 32,519,317 |   |
|   Premium      ceded                                      |   |                    | 2,336,520  |   |                   |   | 2,199,769 |   |   |   | 6,950,632 |   |   |   | 6,646,493 |   |
|      Net      premium earned               |   |                    | 7,752,250  |   |                   |   | 8,367,062 |   |   |   | 23,234,588 |   |   |   | 25,872,824 |   |
|   Net      investment income                              |   |                    | 1,011,848  |   |                   |   | 1,415,072 |   |   |   | 3,379,032 |   |   |   | 4,493,258 |   |
| Net      realized investment gains                                  |   |                    | -          |   |                   |   | - |   |   |   | - |   |   |   | 6,306 |   |
|   Other      income                                       |   |                    | 174,490    |   |                   |   | 209,242 |   |   |   | 575,028 |   |   |   | 531,425 |   |
|      Total      Insurance Company Revenues |   |                    | 8,938,588  |   |                   |   | 9,991,376 |   |   |   | 27,188,648 |   |   |   | 30,903,813 |   |
|                                                                |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Revenues from Insurance Operations                       |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   Gross      commissions and fees                         |   |                    | 1,277,838  |   |                   |   | 1,412,911 |   |   |   | 4,072,049 |   |   |   | 4,299,668 |   |
|   Investment      income                                  |   |                    | 35         |   |                   |   | 10,319 |   |   |   | 1,310 |   |   |   | 51,396 |   |
|   Finance      charges and fees                           |   |                    | 86,755     |   |                   |   | 110,255 |   |   |   | 279,417 |   |   |   | 353,787 |   |
|   Other      income                                       |   |                    | 1,196      |   |                   |   | 4,271 |   |   |   | 4,659 |   |   |   | 10,982 |   |
|      Total      Revenues                   |   |                    | 10,304,412 |   |                   |   | 11,529,132 |   |   |   | 31,546,083 |   |   |   | 35,619,646 |   |
|                                                                |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                            |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Losses      and loss adjustment expenses                            |   |                    | 4,931,348  |   |                   |   | 4,750,265 |   |   |   | 14,353,234 |   |   |   | 17,026,560 |   |
| Policy      acquisition costs                                       |   |                    | 1,845,975  |   |                   |   | 2,055,828 |   |   |   | 5,770,733 |   |   |   | 6,213,989 |   |
| Salaries      and employee benefits                                 |   |                    | 1,305,366  |   |                   |   | 1,493,937 |   |   |   | 4,015,515 |   |   |   | 4,329,374 |   |
| Commissions      to agents/brokers                                  |   |                    | 251,538    |   |                   |   | 320,334 |   |   |   | 860,515 |   |   |   | 959,986 |   |
| Other      operating expenses                                       |   |                    | 1,071,232  |   |                   |   | 716,478 |   |   |   | 3,103,496 |   |   |   | 2,284,960 |   |
|      Total      Expenses                   |   |                    | 9,405,459  |   |                   |   | 9,336,842 |   |   |   | 28,103,493 |   |   |   | 30,814,869 |   |
|                                                                |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Income      Before Taxes              |   |                    | 898,953    |   |                   |   | 2,192,290 |   |   |   | 3,442,590 |   |   |   | 4,804,777 |   |
| Income      tax provision                                           |   |                    | 281,273    |   |                   |   | 746,950 |   |   |   | 1,111,600 |   |   |   | 1,618,487 |   |
|      Net      Income                  |   | $                       | 617,680    |   |                   | $      | 1,445,340 |   |   | $ | 2,330,990 |   |   | $ | 3,186,290 |   |
|                                                                |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| PER      SHARE DATA:                                                |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                               |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|     Earnings      Per Share                     |   | $                       | 0.11       |   |                   | $      | 0.26 |   |   | $ | 0.42 |   |   | $ | 0.57 |   |
|     Weighted      Average Shares                |   |                    | 5,499,691  |   |                   |   | 5,624,188 |   |   |   | 5,545,204 |   |   |   | 5,624,935 |   |
| Diluted                                                             |   |                    |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|     Earnings      Per Share                     |   | $                       | 0.11       |   |                   | $      | 0.26 |   |   | $ | 0.42 |   |   | $ | 0.56 |   |
|     Weighted      Average Shares                |   |                    | 5,541,867  |   |                   |   | 5,664,525 |   |   |   | 5,584,711 |   |   |   | 5,667,509 |   |

----

|                                                                                                                                            |   | Three      Months Ended |    |   | Nine      Months Ended |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|------------------------|--------|
|                                                                                                                                            |   | September 30            |    |   | September 30           |   |
|                                                                                                                                            |   | 2009                    |    |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                            |   |                    |    |   |                   |   |   |   |   |   |   |   |
| Net      Income                                                                                                                                 |   | $                       | 617,680 |   |                   | $      | 1,445,340 |   |   | $ | 2,330,990 |   |   | $ | 3,186,290 |   |
| Other      changes in comprehensive income, net of tax:                                                                                         |   |                    |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Unrealized      gains (losses) on securities classified as available-for-sale arising      during the period |   |                    | 10,630  |   |                   |   | 749,683 |   |   |   | (1,702,371 | ) |   |   | 668,564 |   |
|             Comprehensive      Income                                               |   | $                       | 628,310 |   |                   | $      | 2,195,023 |   |   | $ | 628,619 |   |   | $ | 3,854,854 |   |

----

|                                                                                            |   | For      the Nine Months Ended |        |
|-------------------------------------------------------------------------------------------------|--------|--------------------------------|-------------|
|                                                                                            |   | September 30                   |        |
|                                                                                            |   | 2009                           |        |   | 2008 |   |
| Cash      Flows from Operating Activities:                                                      |   |                           |        |   |   |   |
|    Net      Income                                                               |   | $                              | 2,330,990   |   |   | $ | 3,186,290 |   |
|    Adjustments      to reconcile net income to net cash from operations          |   |                           |        |   |   |   |   |   |
|       Depreciation                                                |   |                           | 146,937     |   |   |   | 158,955 |   |
|       Bond      amortization, net                                 |   |                           | 212,453     |   |   |   | 194,293 |   |
| Net      realized investment gains                                                              |   |                           | -           |   |   |   | (6,306 | ) |
|    Changes      in assets and liabilities                                        |   |                           |        |   |   |   |   |   |
|       Premium,      notes and investment income receivable        |   |                           | 376,078     |   |   |   | 289,061 |   |
|       Reinsurance      recoverable                                |   |                           | 2,305,259   |   |   |   | 6,824,103 |   |
|       Deferred      policy acquisition costs                      |   |                           | 107,377     |   |   |   | 400,798 |   |
|       Other      assets                                           |   |                           | 106,049     |   |   |   | 153,953 |   |
|       Reserve      for unpaid losses and loss adjustment expenses |   |                           | (5,167,168  | ) |   |   | (12,206,233 | ) |
|       Unearned      premium reserve                               |   |                           | (310,281    | ) |   |   | (2,246,696 | ) |
|       Funds      held as security and advanced premiums           |   |                           | 69,856      |   |   |   | (559,832 | ) |
|       Accrued      expenses and other liabilities                 |   |                           | (456,983    | ) |   |   | 1,951,142 |   |
|       Income      taxes current/deferred                          |   |                           | (1,198,206  | ) |   |   | 666,778 |   |
| Net Cash (Used in)      Operations                                                              |   |                           | (1,477,639  | ) |   |   | (1,193,694 | ) |
|                                                                                            |   |                           |        |   |   |   |   |   |
| Investing      Activities                                                                       |   |                           |        |   |   |   |   |   |
| Purchase of fixed maturity      investments                                                     |   |                           | (22,651,641 | ) |   |   | (61,561,017 | ) |
| Proceeds from maturity of fixed      maturity investments                                       |   |                           | 42,700,000  |   |   |   | 60,010,000 |   |
| Proceeds from sale of fixed      maturity investments                                           |   |                           | -           |   |   |   | 505,750 |   |
| Net (increase) decrease in      short-term investments                                          |   |                           | (16,169,000 | ) |   |   | 2,258,808 |   |
| Additions to property and      equipment                                                        |   |                           | (56,503     | ) |   |   | (5,254 | ) |
| Net Cash Provided by Investing      Activities                                                  |   |                           | 3,822,856   |   |   |   | 1,208,287 |   |
|                                                                                            |   |                           |        |   |   |   |   |   |
| Financing      Activities                                                                       |   |                           |        |   |   |   |   |   |
| Dividends paid to      shareholders                                                             |   |                           | (1,002,173  | ) |   |   | - |   |
| Repurchase of common      stock                                                                 |   |                           | (1,303,223  | ) |   |   | (98,495 | ) |
| Net Cash (Used) in Financing      Activities                                                    |   |                           | (2,305,396  | ) |   |   | (98,495 | ) |
|                                                                                            |   |                           |        |   |   |   |   |   |
| Net      increase (decrease) in cash                                                            |   |                           | 39,821      |   |   |   | (83,902 | ) |
| Cash at beginning of      period                                                                |   |                           | 27,710      |   |   |   | 108,864 |   |
| Cash at End of      Period                                                                      |   | $                              | 67,531      |   |   | $ | 24,962 |   |
|                                                                                            |   |                           |        |   |   |   |   |   |
| Supplemental      Cash Flow Information                                                         |   |                           |        |   |   |   |   |   |
| Cash paid during the period      for:                                                           |   |                           |        |   |   |   |   |   |
| Interest                                                                                        |   |                           | -           |   |   |   | - |   |
| Income taxes                                                                                    |   | $                              | 2,308,920   |   |   | $ | 950,240 |   |

----

| ·   | Fixed      Maturities: |
|--------------------|------------------------|

| 1.   | Investment      Securities excluding Long Term Certificates of Deposit - Fair values are      obtained from a national quotation service.  The fair values for      equity securities are based on quoted market  prices. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Long      Term Certificates of Deposit - The carrying amounts reported in the      balance sheet for these instruments approximate their fair      values. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Cash      and Short-Term Investments - The carrying amounts reported in the balance      sheet for these instruments approximate their fair  values. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Premiums      and Notes Receivable - The carrying amounts reported in the balance sheet      for these instruments approximate their fair  values. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                          |   | Three      Months Ended |      |   | Nine      Months Ended |   |
|---------------------------------------------------------------|--------|-------------------------|-----------|--------|------------------------|--------|
|                                                          |   | September 30            |      |   | September 30           |   |
|                                                          |   | 2009                    |      |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
| Basic Earnings Per Share                                      |   |                    |      |   |                   |   |   |   |   |   |   |   |
| Net      income numerator                                     |   | $                       | 617,680   |   |                   | $      | 1,445,340 |   |   | $ | 2,330,990 |   |   | $ | 3,186,290 |   |
|                                                          |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding denominator          |   |                    | 5,499,691 |   |                   |   | 5,624,188 |   |   |   | 5,545,204 |   |   |   | 5,624,935 |   |
|                                                          |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Basic      Earnings Per Share   |   | $                       | 0.11      |   |                   | $      | 0.26 |   |   | $ | 0.42 |   |   | $ | 0.57 |   |
|                                                          |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted Earnings per Share                                    |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income numerator                                     |   | $                       | 617.680   |   |                   | $      | 1,445,340 |   |   | $ | 2,330,990 |   |   | $ | 3,186,290 |   |
|                                                          |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding                      |   |                    | 5,499,691 |   |                   |   | 5,624,188 |   |   |   | 5,545,204 |   |   |   | 5,624,935 |   |
| Effect      of dilutive securities                            |   |                    | 42,176    |   |                   |   | 40,337 |   |   |   | 39,507 |   |   |   | 42,574 |   |
| Diluted      shares outstanding denominator                   |   |                    | 5,541,867 |   |                   |   | 5,664,525 |   |   |   | 5,584,711 |   |   |   | 5,667,509 |   |
|                                                          |   |                    |      |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|      Diluted      Earnings Per Share |   | $                       | 0.11      |   |                   | $      | 0.26 |   |   | $ | 0.42 |   |   | $ | 0.56 |   |

----

----

|                                                    |   | Three      Months Ended |       |   | Nine      Months Ended  |   |
|---------------------------------------------------------|--------|-------------------------|------------|--------|------------------------------|--------|
|                                                    |   | September      30       |       |   | September      30            |   |
|                                                    |   | 2009                    |       |   | 2008                         |   |   | 2009 |   |   | 2008 |   |
| Revenues                                                |   |                    |       |   |                         |   |   |   |   |   |   |   |
| Insurance      company operation                        |   | $                       | 8,938,588  |   |                         | $      | 9,991,376 |   |   | $ | 27,188,648 |   |   | $ | 30,903,813 |   |
|                                                    |   |                    |       |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Other      insurance operations                         |   |                    | 3,813,224  |   |                         |   | 4,419,131 |   |   |   | 12,551,420 |   |   |   | 13,169,590 |   |
| Intersegment      eliminations (1)                      |   |                    | (2,447,400 | )      |                         |   | (2,881,375 | ) |   |   | (8,193,985 | ) |   |   | (8,453,757 | ) |
|    Total      other insurance operations |   |                    | 1,365,824  |   |                         |   | 1,537,756 |   |   |   | 4,357,435 |   |   |   | 4,715,833 |   |
|                                                    |   |                    |       |   |                         |   |   |   |   |   |   |   |   |   |   |   |
|    Total      Revenues                   |   | $                       | 10,304,412 |   |                         | $      | 11,529,132 |   |   | $ | 31,546,083 |   |   | $ | 35,619,646 |   |
|                                                    |   |                    |       |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Before Income      Taxes                  |   |                    |       |   |                         |   |   |   |   |   |   |   |   |   |   |   |
| Insurance      company operation                        |   | $                       | 1,762,019  |   |                         | $      | 2,701,615 |   |   | $ | 5,698,085 |   |   | $ | 6,611,699 |   |
| Other      insurance operations                         |   |                    | (863,066   | )      |                         |   | (509,325 | ) |   |   | (2,255,495 | ) |   |   | (1,806,922 | ) |
|    Total      income before income taxes |   | $                       | 898,953    |   |                         | $      | 2,192,290 |   |   | $ | 3,442,590 |   |   | $ | 4,804,777 |   |

|                                                                 |   | As of             |        |
|----------------------------------------------------------------------|--------|-------------------|-------------|
|                                                                 |   | September      30 |        |   | December      31 |   |
|                                                                 |   | 2009              |        |   | 2008 |   |
| Assets                                                               |   |              |        |   |   |   |
| Insurance      company operation                                     |   | $                 | 162,623,510 |   |   | $ | 171,700,199 |   |
| Intersegment      eliminations (2)                                   |   |              | (1,403,003  | ) |   |   | (1,658,771 | ) |
|      Total      insurance company operation |   |              | 161,220,507 |   |   |   | 170,041,428 |   |
| Other      insurance operations                                      |   |              | 14,487,424  |   |   |   | 14,561,548 |   |
|      Total      Assets                      |   | $                 | 175,707,931 |   |   | $ | 184,602,976 |   |

| (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     |   |
| September 30, 2009                                          |   |      |        |   |       |   |      |       |   |   |      |   |
| Available      for sale:                                    |   |      |        |   |       |   |      |       |   |   |      |   |
|   Fixed      maturities                           |   |      |        |   |       |   |      |       |   |   |      |   |
|   Certificates      of deposit                    |   | $         | 17,854,997  |   |       |   | -         |       |   |   | -         |   |   | $ | 17,854,997 |   |
|   U.S.      treasury securities                   |   |      | 93,368,889  |   |       | $      | 4,797,892 |       |   |   | -         |   |   |   | 98,166,781 |   |
|   Industrial      and miscellaneous taxable bonds |   |      | 4,055,656   |   |       |   | 54,384    |       |   |   | -         |   |   |   | 4,110,040 |   |
|      Total      fixed maturities   |   | $         | 115,279,542 |   |       | $      | 4,852,276 |       |   |   | -         |   |   | $ | 120,131,818 |   |
|                                                        |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
| December 31, 2008                                           |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
| Available      for sale:                                    |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
|   Fixed      maturities                           |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
|   Certificates      of deposit                    |   | $         | 400,000     |   |       |   | -         |       |   |   | -         |   |   | $ | 400,000 |   |
|   U.S.      treasury securities                   |   |      | 124,526,227 |   |       | $      | 7,412,273 |       |   |   | -         |   |   |   | 131,938,500 |   |
|   Industrial      and miscellaneous taxable bonds |   |      | 10,614,127  |   |       |   | 85,078    |       |   | $      | 65,725    |   |   |   | 10,633,480 |   |
|      Total      fixed maturities   |   | $         | 135,540,354 |   |       | $      | 7,497,351 |       |   | $      | 65,725    |   |   | $ | 142,971,980 |   |

|                                                                                       |   | September      30 |       |   | December      31 |   |
|--------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|------------------|--------|
|                                                                                       |   | 2009              |       |   | 2008             |   |
|                                                                                       |   |              |       |   |             |   |
| Gross      unrealized appreciation of fixed maturities                                     |   | $                 | 4,852,276  |   |             | $      | 7,497,351 |   |
| Gross      unrealized (depreciation) of fixed maturities                                   |   |              | -          |   |             |   | (65,725 | ) |
| Net      unrealized appreciation on investments                                            |   |              | 4,852,276  |   |             |   | 7,431,626 |   |
| Deferred      federal tax (expense)                                                        |   |              | (1,649,774 | )      |             |   | (2,526,753 | ) |
|    Net      unrealized appreciation, net      of deferred income taxes |   | $                 | 3,202,502  |   |             | $      | 4,904,873 |   |

----

|                                                |   | September      30 |       |   | December      31 |   |
|-----------------------------------------------------|--------|-------------------|------------|--------|------------------|--------|
|                                                |   | 2009              |       |   | 2008             |   |
|                                                |   |              |       |   |             |   |
| Bank      money market accounts                     |   | $                 | 17,158,342 |   |             | $      | 3,312,140 |   |
| U.S.      government money market fund              |   |              | 5,416,932  |   |             |   | 5,585,395 |   |
| Certificates      of deposit                        |   |              | 3,094,000  |   |             |   | 200,000 |   |
| Short-term      U.S. treasury bills                 |   |              | -          |   |             |   | 399,953 |   |
| Bank      savings accounts                          |   |              | 1,759      |   |             |   | 4,545 |   |
|    Total      short-term investments |   | $                 | 25,671,033 |   |             | $      | 9,502,033 |   |

|                                                       |   | Three      Months Ended September 30 |      |   | Nine      Months Ended September 30 |   |
|------------------------------------------------------------|--------|--------------------------------------|-----------|--------|-------------------------------------|--------|
|                                                       |   | 2009                                 |      |   | 2008                                |   |   | 2009 |   |   | 2008 |   |
|                                                       |   |                                 |      |   |                                |   |   |   |   |   |   |   |
| Fixed      maturities                                      |   | $                                    | 993,811   |   |                                | $      | 1,398,720 |   |   | $ | 3,332,842 |   |   | $ | 4,419,171 |   |
| Realized      gains on fixed maturities                    |   |                                 | -         |   |                                |   | - |   |   |   | - |   |   |   | 6,306 |   |
| Short-term      investments                                |   |                                 | 18,072    |   |                                |   | 26,671 |   |   |   | 47,500 |   |   |   | 125,483 |   |
|      Total      investment income |   | $                                    | 1,011,883 |   |                                | $      | 1,425,391 |   |   | $ | 3,380,342 |   |   | $ | 4,550,960 |   |

----

|                                                     |   | Three Months Ended September    30 |      |   | Nine Months Ended September    30 |   |
|----------------------------------------------------------|--------|------------------------------------|-----------|--------|-----------------------------------|--------|
|                                                     |   |                               |      |   | Increase                          |   |   |   |   |   | Increase |   |
|                                                     |   | 2009                               |      |   | 2008                              |   |   | (Decrease) |   |   | 2009 |   |   | 2008 |   |   | (Decrease) |   |
|                                                     |   |                               |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      premium earned                                  |   | $                                  | 7,752,250 |   |                              | $      | 8,367,062 |   |   | $ | (614,812 | ) |   | $ | 23,234,588 |   |   | $ | 25,872,824 |   |   | $ | (2,638,236 | ) |
|                                                     |   |                               |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                                                    |   |                               |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Losses      and loss adjustment      expenses            |   |                               | 4,931,348 |   |                              |   | 4,750,265 |   |   |   | 181,083 |   |   |   | 14,353,234 |   |   |   | 17,026,560 |   |   |   | (2,673,326 | ) |
| Policy      acquisition costs                       |   |                               | 1,845,975 |   |                              |   |  2,055,828 |   |   |   | (209,853 | ) |   |   |  5,770,733 |   |   |   |  6,213,989 |   |   |   | (443,256 | ) |
|      Total                      |   |                               | 6,777,323 |   |                              |   | 6,806,093 |   |   |   | (28,770 | ) |   |   | 20,123,967 |   |   |   | 23,240,549 |   |   |   | (3,116,582 | ) |
|                                                     |   |                               |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Underwriting      Profit (Before      Income Taxes) |   | $                                  | 974,927   |   |                              | $      | 1,560,969 |   |   | $ | (586,042 | ) |   | $ | 3,110,621 |   |   | $ | 2,632,275 |   |   | $ | 478,346 |   |

----

|                                                                                   |   | Three Months Ended September    30 |                 |   | Nine Months Ended September    30 |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------|----------------------|--------|-----------------------------------|--------|
|                                                                                   |   | 2009                               |                 |   | 2008                              |   |   | Increase      (Decrease) |   |   | 2009 |   |   | 2008 |   |   | Increase (Decrease) |   |
| Losses      and loss                                                                   |   |                               |                 |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  adjustment      expenses:                                                        |   |                               |                 |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Current      accident year                                                 |   | $                                  | 5,861,811            |   |                              | $      | 5,798,936 |   |   | $ | 62,875 |   |   | $ | 17,044,045 |   |   | $ | 18,731,978 |   |   | $ | (1,687,933 | ) |
|  Less:      favorable development      of all prior      accident years |   |                               |    930,463 |   |                              |   |    1,048,671 |   |   |   | (118,208 | ) |   |   |    2,690,811 |   |   |   |    1,705,418 |   |   |   |    985,393 |   |
|      Total                                                    |   | $                                  | 4,931,348            |   |                              | $      | 4,750,265 |   |   | $ | 181,083 |   |   | $ | 14,353,234 |   |   | $ | 17,026,560 |   |   | $ | (2,673,326 | ) |

----

----

----

|                                                                |   | Three Months Ended September    30 |       |   | Nine Months Ended September    30 |   |
|---------------------------------------------------------------------|--------|------------------------------------|------------|--------|-----------------------------------|--------|
|                                                                |   |                               |       |   |                              |   |   | Increase |   |   |   |   |   |   |   |   | Increase |   |
|                                                                |   | 2009                               |       |   | 2008                              |   |   | (Decrease) |   |   | 2009 |   |   | 2008 |   |   | (Decrease) |   |
|                                                                |   |                               |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct      earned premium                                          |   | $                                  | 10,088,770 |   |                              | $      | 10,566,831 |   |   | $ | (478,061 | ) |   | $ | 30,185,220 |   |   | $ | 32,519,317 |   |   | $ | (2,334,097 | ) |
| Earned      ceded premium:                                          |   |                               |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Excluding      provisionally rated ceded premium   |   |                               | 2,336,520  |   |                              |   | 2,199,742 |   |   |   | 136,778 |   |   |   | 6,958,759 |   |   |   | 6,726,302 |   |   |   | 232,457 |   |
|   Provisionally      rated ceded premium             |   |                               |  -    |   |                              |   |  27 |   |   |   |  (27 | ) |   |   | (8,127 | ) |   |   | (79,809 | ) |   |   |  71,682 |   |
|       Total      earned ceded premium |   |                               | 2,336,520  |   |                              |   | 2,199,769 |   |   |   | 136,751 |   |   |   | 6,950,632 |   |   |   | 6,646,493 |   |   |   | 304,139 |   |
| Ceding      commission                                              |   |                               | (698,347   | )      |                              |   | (653,296 | ) |   |   | (45,051 | ) |   |   | (2,072,667 | ) |   |   | (2,010,939 | ) |   |   | (61,728 | ) |
| Total      earned ceded premium net of ceding commission       |   | $                                  | 1,638,173  |   |                              | $      | 1,546,473 |   |   | $ | 91,700 |   |   | $ | 4,877,965 |   |   | $ | 4,635,554 |   |   | $ |  242,411 |   |

----

|                                                             |   | Three Months Ended September    30 |        |   | Nine Months Ended September    30 |   |
|------------------------------------------------------------------|--------|------------------------------------|-------------|--------|-----------------------------------|--------|
|                                                             |   | 2009                               |        |   | 2008                              |   |   | 2009 |   |   | 2008 |   |
|                                                             |   |                               |        |   |                              |   |   |   |   |   |   |   |
| Average      Invested Assets*                                    |   | $                                  | 141,759,987 |   |                              | $      | 145,521,741 |   |   | $ | 142,996,481 |   |   | $ | 146,647,603 |   |
| Total      Investment Income                                     |   | $                                  | 1,011,883   |   |                              | $      | 1,425,391 |   |   | $ | 3,380,342 |   |   | $ | 4,544,654 |   |
| Annualized      Yield on  Average      Invested Assets |   |                               | 2.9         | %      |                              |   | 3.9 | % |   |   | 3.2 | % |   |   | 4.1 | % |

|   | *      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, 2009                                                    |   |           | -           |   |           |   | -           |       |   |   | -                     |   |   |   | - |   |
| December      31, 2010                                                    |   |           | 37,548,999  |   |           |   | 37,594,005  |       |   |   | 38,114,820            |   |   |   | 2.4 | % |
| December      31, 2011                                                    |   |           | 30,355,998  |   |           |   | 30,419,727  |       |   |   | 31,028,186            |   |   |   | 2.3 | % |
| December      31, 2012                                                    |   |           | 38,200,000  |   |           |   | 38,172,763  |       |   |   | 41,404,375            |   |   |   | 4.4 | % |
| December      31, 2013                                                    |   |           | 9,100,000   |   |           |   | 9,093,047   |       |   |   | 9,584,437             |   |   |   | 3.3 | % |
|    Total                                                   |   | $              | 115,204,997 |   |           | $      | 115,279,542 |       |   | $      | 120,131,818           |   |   |   | 3.1 | % |

----

|                                                                                  |   | Three Months Ended September    30 |      |   | Nine Months Ended September    30 |   |
|---------------------------------------------------------------------------------------|--------|------------------------------------|-----------|--------|-----------------------------------|--------|
|                                                                                  |   |                               |      |   |                              |   |   | Increase |   |   |   |   |   |   |   |   | Increase |   |
|                                                                                  |   | 2009                               |      |   | 2008                              |   |   | (Decrease) |   |   | 2009 |   |   | 2008 |   |   | (Decrease) |   |
| Policy      fee income                                                                |   | $                                  | 526,035   |   |                              | $      | 554,774 |   |   | $ | (28,739 | ) |   | $ | 1,589,682 |   |   | $ | 1,697,793 |   |   | $ | (108,111 | ) |
| Health      insurance program                                                         |   |                               | 601,931   |   |                              |   | 690,870 |   |   |   | (88,939 | ) |   |   | 1,962,054 |   |   |   | 2,049,747 |   |   |   | (87,693 | ) |
| Membership      and fee income                                                        |   |                               | 63,195    |   |                              |   | 74,499 |   |   |   | (11,304 | ) |   |   | 199,631 |   |   |   | 227,548 |   |   |   | (27,917 | ) |
| Other      commission and fee income                                                  |   |                               | 30        |   |                              |   | 50 |   |   |   | (20 | ) |   |   | 673 |   |   |   | 7,212 |   |   |   | (6,539 | ) |
| Daily      automobile rental insurance program:                                  |   |                               |      |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Commission      income (excluding contingent      commission) |   |                               | 86,647    |   |                              |   | 92,718 |   |   |   | (6,071 | ) |   |   | 254,495 |   |   |   | 258,775 |   |   |   | (4,280 | ) |
|     Contingent      commission                                    |   |                               | -         |   |                              |   | - |   |   |   | - |   |   |   |  65,514 |   |   |   |  58,593 |   |   |   | 6,921 |   |
| Total                                                                                 |   | $                                  | 1,277,838 |   |                              | $      | 1,412,911 |   |   | $ | (135,073 | ) |   | $ | 4,072,049 |   |   | $ | 4,299,668 |   |   | $ | (227,619 | ) |

----

|                                                                                   |   | Three Months Ended September    30 |                 |   | Nine Months Ended September    30 |   |
|----------------------------------------------------------------------------------------|--------|------------------------------------|----------------------|--------|-----------------------------------|--------|
|                                                                                   |   | 2009                               |                 |   | 2008                              |   |   | Increase      (Decrease) |   |   | 2009 |   |   | 2008 |   |   | Increase (Decrease) |   |
| Losses      and loss adjustment expenses:                                         |   |                               |                 |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Current      accident year                                                 |   | $                                  | 5,861,811            |   |                              | $      | 5,798,936 |   |   | $ | 62,875 |   |   | $ | 17,044,045 |   |   | $ | 18,731,978 |   |   | $ | (1,687,933 | ) |
|  Less:      favorable development      of all prior      accident years |   |                               |    930,463 |   |                              |   |    1,048,671 |   |   |   | (118,208 | ) |   |   |    2,690,811 |   |   |   |    1,705,418 |   |   |   |    985,393 |   |
|      Total                                                    |   | $                                  | 4,931,348            |   |                              | $      | 4,750,265 |   |   | $ | 181,083 |   |   | $ | 14,353,234 |   |   | $ | 17,026,560 |   |   | $ | (2,673,326 | ) |

----

----

|                                                     |   | September      30 2009 |        |   | December      31 2008 |   |        | Increase(Decrease) |   |
|----------------------------------------------------------|--------|-----------------------------|-------------|--------|----------------------------|--------|-------------|--------------------|--------|
| Fixed      maturity bonds (at amortized value)           |   | $                           | 97,424,545  |   |                       | $      | 135,140,354 |               |   | $ | (37,715,809 | ) |
| Short-term      cash investments (at cost)               |   |                        | 25,671,033  |   |                       |   | 9,502,033   |               |   |   | 16,169,000 |   |
| Certificates      of deposit (over 1 year, at cost)      |   |                        | 17,854,997  |   |                       |   | 400,000     |               |   |   | 17,454,997 |   |
|      Total      invested assets |   | $                           | 140,950,575 |   |                       | $      | 145,042,387 |               |   | $ | (4,091,812 | ) |

|      Period               |   |   TotalNumber      ofSharesPurchased |    |   |    AveragePrice      PaidPer Share |   |   | Total      Numberof      SharesPurchased      as PartOf      PubliclyAnnounced      PlansOr Programs(1) |   |   | MaximumNumber      of Sharesthat      May Yet BePurchased      Under the Plans or Programs(1) |   |
|----------------------------------------------------|--------|------------------------------------------------|---------|--------|---------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------|--------|
|                                               |   |                                           |    |   |                                              |   |   |                                                                                                    |   |   |                                                                                          |   |
| July      1, 2009, through July 31, 2009           |   |                                           | -       |   |                                              |   | -      |                                                                                                    |   |   | -                                                                                             |   |   |   | 505,604 |   |
| August      1, 2009, through August 31, 2009       |   |                                           | 132,528 |   |                                              | $      | 9.08   |                                                                                                    |   |   | 132,528                                                                                       |   |   |   | 373,076 |   |
| September      1, 2009, through September 30, 2009 |   |                                           | 2,581   |   |                                              | $      | 9.14   |                                                                                                    |   |   | 2,581                                                                                         |   |   |   | 370,495 |   |
|    Total                            |   |                                           | 135,109 |   |                                              | $      | 9.08   |                                                                                                    |   |   | 135,109                                                                                       |   |   |   | 370,495 |   |

| (1)   | In      April 2000, the Company announced that its Board of Directors had      authorized the purchase from time to time of up to an aggregate of 315,000      shares of the common stock of the Company.  On August 8, 2000,      the Board of Directors authorized the purchase of an additional 315,000      shares and on September 6, 2000, the Board of Directors authorized the      purchase of another 315,000 shares of the common stock of the      Company.  On December 19, 2008, the Board of Directors      authorized an additional stock repurchase program to acquire from time to      time up to an aggregate of 500,000 shares of the Company’s common      stock.  This brought the total shares of the Company’s common      stock authorized to be repurchased to 1,445,000 shares since the year      2000.  The programs have no expiration date and may be      terminated by the Board of Directors at any time.  During the      nine months ended September 30, 2009, the Company repurchased 144,972      shares of the Company’s common stock at a cost of $1,303,223 of which      $71,243 was allocated to capital and $1,231,980 was allocated to retained      earnings.  As of September 30, 2009, under the stock repurchase      programs previously adopted by the Company, the Company had remaining      authority to repurchase up to an aggregate of 370,495 shares of common      stock. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

----

|    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      (filed herewith). |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    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      (filed herewith). |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    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 (filed      herewith). |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    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 (filed      herewith). |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----