| 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, 2009 |
|--------------------------------------|--------------------------------|
| Common Stock, $0 Par value per share | 5,564,452            |

----

|                                                                                                       |   | June 30     |            |   | December 31 |   |
|------------------------------------------------------------------------------------------------------------|--------|-------------|-----------------|--------|-------------|--------|
|                                                                                                       |   | 2009        |            |   | 2008        |   |
|                                                                                                       |   | (Unaudited) |            |   |        |   |
| ASSETS                                                                                                     |   |        |            |   |        |   |
| Investments                                                                                                |   |        |            |   |        |   |
|    Available for sale:                                                                      |   |        |            |   |        |   |
|       Fixed maturities, at market value (amortized cost:  June 30, |   |        |            |   |        |   |
|          2009 $127,277,604; December 31, 2008 $135,540,354)   |   | $           | 132,113,773     |   |        | $      | 142,971,980 |   |
|    Short-term investments, at cost                                                          |   |        | 15,291,795      |   |        |   | 9,502,033 |   |
| Total Investments                                                                                          |   |        | 147,405,568     |   |        |   | 152,474,013 |   |
| Cash                                                                                                       |   |        | 25,994          |   |        |   | 27,710 |   |
| Accrued investment income                                                                                  |   |        | 1,103,823       |   |        |   | 1,301,238 |   |
| Premiums and notes receivable, net                                                                         |   |        | 5,221,401       |   |        |   | 4,680,779 |   |
| Reinsurance recoverable:                                                                                   |   |        |            |   |        |   |   |   |
|    Paid losses and loss adjustment expenses                                                 |   |        | 66,288          |   |        |   | 114,734 |   |
|    Unpaid losses and loss adjustment expenses                                               |   |        | 17,968,864      |   |        |   | 19,815,573 |   |
| Deferred policy acquisition costs                                                                          |   |        | 5,231,431       |   |        |   | 5,219,892 |   |
| Property and equipment (net of accumulated depreciation)                                                   |   |        | 318,098         |   |        |   | 359,553 |   |
| Deferred income taxes                                                                                      |   |        | 361,017         |   |        |   | - |   |
| Other assets                                                                                               |   |        | 966,647         |   |        |   |  609,484 |   |
| Total Assets                                                                                               |   | $           | 178,669,131     |   |        | $      | 184,602,976 |   |
|                                                                                                       |   |        |            |   |        |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                       |   |
| LIABILITIES                                                                                                |   |        |            |   |        |   |   |   |
| Unpaid losses and loss adjustment expenses                                                                 |   | $           | 74,581,485      |   |        | $      | 78,654,590 |   |
| Unearned premiums                                                                                          |   |        | 20,390,075      |   |        |   | 19,962,118 |   |
| Advance premium and premium deposits                                                                       |   |        | 1,347,388       |   |        |   | 1,192,553 |   |
| Income taxes payable                                                                                       |   |        | -               |   |        |   | 558,604 |   |
| Deferred income taxes                                                                                      |   |        | -               |   |        |   | 795,088 |   |
| Accrued expenses and other liabilities                                                                     |   |        |  6,469,727 |   |        |   | 6,481,768 |   |
| Total Liabilities                                                                                          |   | $           | 102,788,675     |   |        | $      | 107,644,721 |   |
|                                                                                                       |   |        |            |   |        |   |   |   |
| STOCKHOLDERS'  EQUITY                                                                            |   |        |            |   |        |   |   |   |
| Common stock, no par – authorized 10,000,000 shares; issued and                                      |   |        |            |   |        |   |   |   |
|    outstanding shares 5,564,452 at June 30, 2009, and 5,574,315 at                          |   |        |            |   |        |   |   |   |
|    December 31, 2008                                                                        |   | $           | 3,564,302       |   |        | $      | 3,569,099 |   |
| Accumulated other comprehensive income                                                                     |   |        | 3,191,872       |   |        |   | 4,904,873 |   |
| Retained earnings                                                                                          |   |        | 69,124,282      |   |        |   | 68,484,283 |   |
| Total Stockholders’ Equity                                                                           |   | $           | 75,880,456      |   |        | $      | 76,958,255 |   |
|                                                                                                       |   |        |            |   |        |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                 |   | $           | 178,669,131     |   |        | $      | 184,602,976 |   |

----

|                                                           |   | Three Months Ended |       |   | Six Months Ended |   |
|----------------------------------------------------------------|--------|--------------------|------------|--------|------------------|--------|
|                                                           |   | June 30            |       |   | June 30          |   |
|                                                           |   | 2009               |       |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| REVENUES                                                       |   |               |       |   |             |   |   |   |   |   |   |   |
| Insurance Company Revenues                                     |   |               |       |   |             |   |   |   |   |   |   |   |
|   Premium earned                                     |   | $                  | 10,222,303 |   |             | $      | 10,805,540 |   |   | $ | 20,096,450 |   |   | $ | 21,952,486 |   |
|   Premium ceded                                      |   |               | 2,359,124  |   |             |   | 2,224,544 |   |   |   | 4,614,112 |   |   |   | 4,446,724 |   |
|      Net premium earned               |   |               | 7,863,179  |   |             |   | 8,580,996 |   |   |   | 15,482,338 |   |   |   | 17,505,762 |   |
|   Net investment income                              |   |               | 1,143,324  |   |             |   | 1,481,120 |   |   |   | 2,367,184 |   |   |   | 3,078,186 |   |
| Net realized investment gains                                  |   |               | -          |   |             |   | - |   |   |   | - |   |   |   | 6,306 |   |
|   Other income                                       |   |               | 196,228    |   |             |   | 207,545 |   |   |   | 400,538 |   |   |   | 322,183 |   |
|      Total Insurance Company Revenues |   |               | 9,202,731  |   |             |   | 10,269,661 |   |   |   | 18,250,060 |   |   |   | 20,912,437 |   |
|                                                           |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Other Revenues from Insurance Operations                       |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   Gross commissions and fees                         |   |               | 1,354,357  |   |             |   | 1,415,393 |   |   |   | 2,794,211 |   |   |   | 2,886,757 |   |
|   Investment income                                  |   |               | 1,008      |   |             |   | 15,629 |   |   |   | 1,275 |   |   |   | 41,077 |   |
|   Finance charges and fees                           |   |               | 93,787     |   |             |   | 119,011 |   |   |   | 192,662 |   |   |   | 243,532 |   |
|   Other income                                       |   |               | 1,361      |   |             |   | 2,700 |   |   |   | 3,463 |   |   |   | 6,711 |   |
|      Total Revenues                   |   |               | 10,653,244 |   |             |   | 11,822,394 |   |   |   | 21,241,671 |   |   |   | 24,090,514 |   |
|                                                           |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                       |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Losses and loss adjustment expenses                            |   |               | 4,787,233  |   |             |   | 6,080,589 |   |   |   | 9,421,886 |   |   |   | 12,276,295 |   |
| Policy acquisition costs                                       |   |               | 1,970,899  |   |             |   | 2,077,190 |   |   |   | 3,924,758 |   |   |   | 4,158,161 |   |
| Salaries and employee benefits                                 |   |               | 1,281,200  |   |             |   | 1,398,398 |   |   |   | 2,710,149 |   |   |   | 2,835,437 |   |
| Commissions to agents/brokers                                  |   |               | 295,186    |   |             |   | 318,161 |   |   |   | 608,977 |   |   |   | 639,652 |   |
| Other operating expenses                                       |   |               | 1,322,668  |   |             |   | 781,870 |   |   |   | 2,032,264 |   |   |   | 1,568,482 |   |
|      Total Expenses                   |   |               | 9,657,186  |   |             |   | 10,656,208 |   |   |   | 18,698,034 |   |   |   | 21,478,027 |   |
|                                                           |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|      Income Before Taxes              |   |               | 996,058    |   |             |   | 1,166,186 |   |   |   | 2,543,637 |   |   |   | 2,612,487 |   |
| Income tax provision                                           |   |               | 311,992    |   |             |   | 385,226 |   |   |   | 830,327 |   |   |   | 871,537 |   |
|      Net Income                  |   | $                  | 684,066    |   |             | $      | 780,960 |   |   | $ | 1,713,310 |   |   | $ | 1,740,950 |   |
|                                                           |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| PER SHARE DATA:                                                |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                          |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|     Earnings Per Share                     |   | $                  | 0.12       |   |             | $      | 0.14 |   |   | $ | 0.31 |   |   | $ | 0.31 |   |
|     Weighted Average Shares                |   |               | 5,566,665  |   |             |   | 5,625,308 |   |   |   | 5,567,960 |   |   |   | 5,625,308 |   |
| Diluted                                                        |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|     Earnings Per Share                     |   | $                  | 0.12       |   |             | $      | 0.14 |   |   | $ | 0.31 |   |   | $ | 0.31 |   |
|     Weighted Average Shares                |   |               | 5,605,195  |   |             |   | 5,668,369 |   |   |   | 5,606,133 |   |   |   | 5,669,002 |   |

----

|                                                                                                |   | Three Months Ended |       |   | Six Months EndedJune 30 |   |
|-----------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------------|--------|
|                                                                                                |   | June 30            |       |   | June 30                 |   |
|                                                                                                |   | 2009               |       |   | 2008                    |   |   | 2009 |   |   | 2008 |   |
|                                                                                                |   |               |       |   |                    |   |   |   |   |   |   |   |
| Net Income                                                                                          |   | $                  | 684,066    |   |                    | $      | 780,960 |   |   | $ | 1,713,310 |   |   | $ | 1,740,950 |   |
| Other changes in comprehensive income, net of tax:                                                  |   |               |       |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|      Unrealized (losses) on securities classified as                       |   |               |       |   |                    |   |   |   |   |   |   |   |   |   |   |   |
|         available-for-sale arising during the period        |   |               | (1,006,026 | )      |                    |   | (1,793,479 | ) |   |   | (1,713,001 | ) |   |   | (81,119 | ) |
|             Comprehensive (Loss) Income |   | $                  | (321,960   | )      |                    | $      | (1,012,519 | ) |   | $ | 309 |   |   | $ | 1,659,831 |   |

----

|                                                                                       |   | For the Six Months Ended |          |
|--------------------------------------------------------------------------------------------|--------|--------------------------|---------------|
|                                                                                       |   | June 30                  |          |
|                                                                                       |   | 2009                     |          |   | 2008 |   |
| Cash Flows from Operating Activities:                                                      |   |                     |          |   |   |   |
|    Net Income                                                               |   | $                        | 1,713,310     |   |   | $ | 1,740,950 |   |
|    Adjustments to reconcile net income to net cash from operations          |   |                     |          |   |   |   |   |   |
|       Depreciation                                           |   |                     | 97,958        |   |   |   | 105,970 |   |
|       Bond amortization, net                                 |   |                     | 171,748       |   |   |   | 129,993 |   |
| Net realized investment gains                                                              |   |                     | -             |   |   |   | (6,306 | ) |
|    Changes in assets and liabilities                                        |   |                     |          |   |   |   |   |   |
|       Premium, notes and investment income receivable        |   |                     | (343,207      | ) |   |   | 348,923 |   |
|       Reinsurance recoverable                                |   |                     | 1,895,155     |   |   |   | 5,101,621 |   |
|       Deferred policy acquisition costs                      |   |                     | (11,539       | ) |   |   | 403,480 |   |
|       Other assets                                           |   |                     | 34,667        |   |   |   | 1,987 |   |
|       Reserve for unpaid losses and loss adjustment expenses |   |                     | (4,073,105    | ) |   |   | (8,808,663 | ) |
|       Unearned premium reserve                               |   |                     | 427,957       |   |   |   | (2,068,333 | ) |
|       Funds held as security and advanced premiums           |   |                     | 154,835       |   |   |   | (942,450 | ) |
|       Accrued expenses and other liabilities                 |   |                     | (12,041       | ) |   |   | 1,722,480 |   |
|       Income taxes current/deferred                          |   |                     | (1,224,084    | ) |   |   |  76,657 |   |
| Net Cash (Used in) Operations                                                              |   |                     | (1,168,346    | ) |   |   | (2,193,691 | ) |
|                                                                                       |   |                     |          |   |   |   |   |   |
| Investing Activities                                                                       |   |                     |          |   |   |   |   |   |
| Purchase of fixed maturity investments                                                     |   |                     | (12,408,997   | ) |   |   | (30,241,519 | ) |
| Proceeds from maturity of fixed maturity investments                                       |   |                     | 20,500,000    |   |   |   | 31,435,000 |   |
| Proceeds from sale of fixed maturity investments                                           |   |                     | -             |   |   |   | 505,750 |   |
| Net (increase) in short-term investments                                                   |   |                     | (5,789,762    | ) |   |   | 428,806 |   |
| Additions to property and equipment                                                        |   |                     | (56,503       | ) |   |   | (12,220 | ) |
| Net Cash Provided by Investing Activities                                                  |   |                     | 2,244,738     |   |   |   | 2,115,817 |   |
|                                                                                       |   |                     |          |   |   |   |   |   |
| Financing Activities                                                                       |   |                     |          |   |   |   |   |   |
| Dividends paid to shareholders                                                             |   |                     | (1,002,173    | ) |   |   | - |   |
| Repurchase of common stock                                                                 |   |                     |  (75,935 | ) |   |   | - |   |
| Net Cash Used in Financing Activities                                                      |   |                     | (1,078,108    | ) |   |   | - |   |
|                                                                                       |   |                     |          |   |   |   |   |   |
| Net decrease in cash                                                                       |   |                     | (1,716        | ) |   |   | (77,874 | ) |
| Cash at beginning of period                                                                |   |                     | 27,710        |   |   |   | 108,864 |   |
| Cash at End of Period                                                                      |   | $                        | 25,994        |   |   | $ | 30,990 |   |
|                                                                                       |   |                     |          |   |   |   |   |   |
| Supplemental Cash Flow Information                                                         |   |                     |          |   |   |   |   |   |
| Cash paid during the period for:                                                           |   |                     |          |   |   |   |   |   |
| Interest                                                                                   |   |                     | -             |   |   |   | - |   |
| Income taxes                                                                               |   | $                        | 2,058,800     |   |   | $ | 800,000 |   |

----

| ·   | Investment Securities - Fair values for fixed maturity securities are obtained from a national quotation service.  The fair values for equity securities are based on quoted market prices. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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 |      |   | Six Months Ended |   |
|----------------------------------------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                                                     |   | June 30            |      |   | June 30          |   |
|                                                     |   | 2009               |      |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Basic Earnings Per Share                                 |   |               |      |   |             |   |   |   |   |   |   |   |
| Net income numerator                                     |   | $                  | 684,066   |   |             | $      | 780,960 |   |   | $ | 1,713,310 |   |   | $ | 1,740,950 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding denominator          |   |               | 5,566,665 |   |             |   | 5,625,308 |   |   |   | 5,567,960 |   |   |   | 5,625,308 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
|      Basic Earnings Per Share   |   | $                  | 0.12      |   |             | $      | 0.14 |   |   | $ | 0.31 |   |   | $ | 0.31 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Diluted Earnings per Share                               |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income numerator                                     |   | $                  | 684,066   |   |             | $      | 780,960 |   |   | $ | 1,713,310 |   |   | $ | 1,740,950 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                      |   |               | 5,566,665 |   |             |   | 5,625,308 |   |   |   | 5,567,960 |   |   |   | 5,625,308 |   |
| Effect of dilutive securities                            |   |               | 38,530    |   |             |   | 43,061 |   |   |   | 38,173 |   |   |   | 43,694 |   |
| Diluted shares outstanding denominator                   |   |               | 5,605,195 |   |             |   | 5,668,369 |   |   |   | 5,606,133 |   |   |   | 5,669,002 |   |
|                                                     |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |
|      Diluted Earnings Per Share |   | $                  | 0.12      |   |             | $      | 0.14 |   |   | $ | 0.31 |   |   | $ | 0.31 |   |

----

----

|                                               |   | Three Months Ended |       |   |  Six Months Ended |   |
|----------------------------------------------------|--------|--------------------|------------|--------|------------------------|--------|
|                                               |   | June 30            |       |   |  June 30          |   |
|                                               |   | 2009               |       |   | 2008                   |   |   | 2009 |   |   | 2008 |   |
| Revenues                                           |   |               |       |   |                   |   |   |   |   |   |   |   |
| Insurance company operation                        |   | $                  | 9,202,731  |   |                   | $      | 10,269,661 |   |   | $ | 18,250,060 |   |   | $ | 20,912,437 |   |
|                                               |   |               |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Other insurance operations                         |   |               | 4,084,900  |   |                   |   | 4,234,233 |   |   |   | 8,738,197 |   |   |   | 8,750,462 |   |
| Intersegment eliminations (1)                      |   |               | (2,634,387 | )      |                   |   | (2,681,500 | ) |   |   | (5,746,586 | ) |   |   | (5,572,385 | ) |
|    Total other insurance operations |   |               | 1,450,513  |   |                   |   | 1,552,733 |   |   |   | 2,991,611 |   |   |   | 3,178,077 |   |
|                                               |   |               |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|    Total revenues                   |   | $                  | 10,653,244 |   |                   | $      | 11,822,394 |   |   | $ | 21,241,671 |   |   | $ | 24,090,514 |   |
|                                               |   |               |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Before Income Taxes                  |   |               |       |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance company operation                        |   | $                  | 2,089,110  |   |                   | $      | 1,904,906 |   |   | $ | 3,936,066 |   |   | $ | 3,910,083 |   |
| Other insurance operations                         |   |               | (1,093,052 | )      |                   |   | (738,720 | ) |   |   | (1,392,429 | ) |   |   | (1,297,596 | ) |
|    Total income before income taxes |   | $                  | 996,058    |   |                   | $      | 1,166,186 |   |   | $ | 2,543,637 |   |   | $ | 2,612,487 |   |

|                                                                  |   | As of   |        |
|-----------------------------------------------------------------------|--------|---------|-------------|
|                                                                  |   | June 30 |        |   | December 31 |   |
|                                                                  |   | 2009    |        |   | 2008 |   |
| Assets                                                                |   |    |        |   |   |   |
| Insurance company operation                                           |   | $       | 158,051,088 |   |   | $ | 171,700,199 |   |
| Intersegment eliminations (2)                                         |   |    | (3,233,115  | ) |   |   | (1,658,771 | ) |
|      Total insurance company operation  |   |    | 154,817,973 |   |   |   | 170,041,428 |   |
|                                                                  |   |    |        |   |   |   |   |   |
| Other insurance operations                                            |   |    | 23,851,158  |   |   |   | 14,561,548 |   |
|                                                                  |   |    |        |   |   |   |   |   |
|      Total Assets                            |   | $       | 178,669,131 |   |   | $ | 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     |   |
| June 30, 2009                                          |   |      |        |   |       |   |      |       |   |   |      |   |
| Available for sale:                                    |   |      |        |   |       |   |      |       |   |   |      |   |
|   Fixed maturities                           |   |      |        |   |       |   |      |       |   |   |      |   |
|   Certificates of deposit                    |   | $         | 12,808,997  |   |       |   | -         |       |   |   | -         |   |   | $ | 12,808,997 |   |
|   U.S. treasury securities                   |   |      | 105,395,524 |   |       | $      | 4,756,117 |       |   |   | -         |   |   |   | 110,151,641 |   |
|   Industrial and miscellaneous taxable bonds |   |      | 9,073,083   |   |       |   | 80,052    |       |   |   | -         |   |   |   | 9,153,135 |   |
|      Total fixed maturities   |   | $         | 127,277,604 |   |       | $      | 4,836,169 |       |   |   | -         |   |   | $ | 132,113,773 |   |
|                                                   |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
| 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 |   |

|                                                                                   |   | June 30 |       |   | December 31 |   |
|----------------------------------------------------------------------------------------|--------|---------|------------|--------|-------------|--------|
|                                                                                   |   | 2009    |       |   | 2008        |   |
|                                                                                   |   |    |       |   |        |   |
| Gross unrealized appreciation of fixed maturities:                                     |   | $       | 4,836,169  |   |        | $      | 7,497,351 |   |
| Gross unrealized (depreciation) of fixed maturities:                                   |   |    | -          |   |        |   | (65,725 | ) |
| Net unrealized appreciation on investments                                             |   |    | 4,836,169  |   |        |   | 7,431,626 |   |
| Deferred federal tax (expense)                                                         |   |    | (1,644,297 | )      |        |   | (2,526,753 | ) |
|    Net unrealized appreciation,  net of deferred income taxes |   | $       | 3,191,872  |   |        | $      | 4,904,873 |   |

----

|                                           |   | June 30 |       |   | December 31 |   |
|------------------------------------------------|--------|---------|------------|--------|-------------|--------|
|                                           |   | 2009    |       |   | 2008        |   |
|                                           |   |    |       |   |        |   |
| U.S. government money market fund              |   | $       | 196,844    |   |        | $      | 5,585,395 |   |
| Short-term U.S. treasury bills                 |   |    | 4,999,044  |   |        |   | 399,953 |   |
| Bank money market accounts                     |   |    | 7,448,147  |   |        |   | 3,312,140 |   |
| Certificates of deposit                        |   |    | 2,646,000  |   |        |   | 200,000 |   |
| Bank savings accounts                          |   |    | 1,760      |   |        |   | 4,545 |   |
|    Total short-term investments |   | $       | 15,291,795 |   |        | $      | 9,502,033 |   |

|                                                  |   | Three Months Ended June 30 |      |   | Six Months Ended June 30 |   |
|-------------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                                  |   | 2009                       |      |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                                                  |   |                       |      |   |                     |   |   |   |   |   |   |   |
| Fixed maturities                                      |   | $                          | 1,126,887 |   |                     | $      | 1,458,417 |   |   | $ | 2,339,031 |   |   | $ | 3,020,451 |   |
| Realized gains on fixed maturities                    |   |                       | -         |   |                     |   | - |   |   |   | - |   |   |   | 6,306 |   |
| Short-term investments                                |   |                       | 17,445    |   |                     |   | 38,332 |   |   |   | 29,428 |   |   |   | 98,812 |   |
|      Total investment income |   | $                          | 1,144,332 |   |                     | $      | 1,496,749 |   |   | $ | 2,368,459 |   |   | $ | 3,125,569 |   |

----

|                                           |   | Three Months Ended June 30 |      |   | Six Months Ended June 30 |   |
|------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                           |   |                       |      |   | Increase                 |   |   |   |   |   | Increase |   |
|                                           |   | 2009                       |      |   | 2008                     |   |   | (Decrease) |   |   | 2009 |   |   | 2008 |   |   | (Decrease) |   |
|                                           |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net premium earned                             |   | $                          | 7,863,179 |   |                     | $      | 8,580,996 |   |   | $ | (717,817 | ) |   | $ | 15,482,338 |   |   | $ | 17,505,762 |   |   | $ | (2,023,424 | ) |
|                                           |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                                          |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Losses and loss adjustment expenses            |   |                       | 4,787,233 |   |                     |   | 6,080,589 |   |   |   | (1,293,356 | ) |   |   | 9,421,886 |   |   |   | 12,276,295 |   |   |   | (2,854,409 | ) |
| Policy acquisition costs                       |   |                       | 1,970,899 |   |                     |   | 2,077,190 |   |   |   | (106,291 | ) |   |   | 3,924,758 |   |   |   | 4,158,161 |   |   |   | (233,403 | ) |
|      Total            |   |                       | 6,758,132 |   |                     |   | 8,157,779 |   |   |   | (1,399,647 | ) |   |   | 13,346,644 |   |   |   | 16,434,456 |   |   |   | (3,087,812 | ) |
|                                           |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Underwriting Profit (Before Income Taxes) |   | $                          | 1,105,047 |   |                     | $      | 423,217 |   |   | $ | 681,830 |   |   | $ | 2,135,694 |   |   | $ | 1,071,306 |   |   | $ | 1,064,388 |   |

----

|                                                    |   | Three Months Ended June 30 |      |   | Six Months Ended June 30 |   |
|---------------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                                    |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Losses and loss adjustment expenses:               |   | 2009                       |      |   | 2008                     |   |   | Increase (Decrease) |   |   | 2009 |   |   | 2008 |   |   | Increase (Decrease) |   |
|                                                    |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Current accident year                       |   | $                          | 5,840,939 |   |                     | $      | 6,378,563 |   |   | $ | (537,624 | ) |   | $ | 11,182,234 |   |   | $ | 12,933,042 |   |   | $ | (1,750,808 | ) |
| Less: favorable development of all prior accident years |   |                       | 1,053,706 |   |                     |   | 297,974 |   |   |   | 755,732 |   |   |   | 1,760,348 |   |   |   | 656,747 |   |   |   | 1,103,601 |   |
|      Total                     |   | $                          | 4,787,233 |   |                     | $      | 6,080,589 |   |   | $ | (1,293,356 | ) |   | $ | 9,421,886 |   |   | $ | 12,276,295 |   |   | $ | (2,854,409 | ) |

----

----

|                                                                |   | Three Months Ended June 30 |       |   | Six Months Ended June 30 |   |
|---------------------------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|
|                                                                |   |                       |       |   |                     |   |   | Increase |   |   |   |   |   |   |   |   | Increase |   |
|                                                                |   | 2009                       |       |   | 2008                     |   |   | (Decrease) |   |   | 2009 |   |   | 2008 |   |   | (Decrease) |   |
|                                                                |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct earned premium                                               |   | $                          | 10,222,303 |   |                     | $      | 10,805,540 |   |   | $ | (583,237 | ) |   | $ | 20,096,450 |   |   | $ | 21,952,486 |   |   | $ | (1,856,036 | ) |
| Earned ceded premium:                                               |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Excluding provisionally rated ceded premium       |   |                       | 2,367,251  |   |                     |   | 2,230,629 |   |   |   | 136,622 |   |   |   | 4,622,239 |   |   |   | 4,526,560 |   |   |   | 95,679 |   |
|    Provisionally rated ceded premium                      |   |                       | (8,127     | )      |                     |   | (6,085 | ) |   |   |  (2,042 | ) |   |   | (8,127 | ) |   |   | (79,836 | ) |   |   |  71,709 |   |
|       Total earned ceded premium |   |                       | 2,359,124  |   |                     |   | 2,224,544 |   |   |   | 134,580 |   |   |   | 4,614,112 |   |   |   | 4,446,724 |   |   |   | 167,388 |   |
|                                                                |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ceding commission                                                   |   |                       | (705,726   | )      |                     |   | (668,240 | ) |   |   | (37,486 | ) |   |   | (1,374,320 | ) |   |   | (1,357,643 | ) |   |   | (16,677 | ) |
|                                                                |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total earned ceded premium net of ceding commission            |   | $                          | 1,653,398  |   |                     | $      | 1,556,304 |   |   | $ | 97,094 |   |   | $ | 3,239,792 |   |   | $ | 3,089,081 |   |   | $ |  150,711 |   |

----

|                                             |   | Three Months Ended June 30 |        |   | Six Months Ended June 30 |   |
|--------------------------------------------------|--------|----------------------------|-------------|--------|--------------------------|--------|
|                                             |   | 2009                       |        |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
|                                             |   |                       |        |   |                     |   |   |   |   |   |   |   |
| Average Invested Assets*                         |   | $                          | 142,753,325 |   |                     | $      | 147,096,706 |   |   | $ | 143,805,893 |   |   | $ | 146,222,505 |   |
| Total Investment Income                          |   | $                          | 1,144,332   |   |                     | $      | 1,496,749 |   |   | $ | 2,368,459 |   |   | $ | 3,119,263 |   |
| Annualized Yield on Average Invested Assets |   |                       | 3.2         | %      |                     |   | 4.1 | % |   |   | 3.3 | % |   |   | 4.3 | % |

|   | * 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, 2009                                                    |   | $              | 22,700,000  |   |           | $      | 22,728,176  |       |   | $      | 22,812,200            |   |   |   | 3.5 | % |
| December 31, 2010                                                    |   |           | 37,548,999  |   |           |   | 37,601,363  |       |   |   | 38,221,028            |   |   |   | 2.4 | % |
| December 31, 2011                                                    |   |           | 19,809,998  |   |           |   | 19,885,136  |       |   |   | 20,495,076            |   |   |   | 2.9 | % |
| December 31, 2012                                                    |   |           | 38,000,000  |   |           |   | 37,970,327  |       |   |   | 41,105,938            |   |   |   | 4.4 | % |
| December 31, 2013                                                    |   |           | 9,100,000   |   |           |   | 9,092,602   |       |   |   | 9,479,531             |   |   |   | 3.3 | % |
|    Total                                              |   | $              | 127,158,997 |   |           | $      | 127,277,604 |       |   | $      | 132,113,773           |   |   |   | 3.3 | % |

----

|                                                                             |   | Three Months Ended June 30 |      |   | Six Months Ended June 30 |   |
|----------------------------------------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                                                             |   |                       |      |   |                     |   |   | Increase |   |   |   |   |   |   |   |   | Increase |   |
|                                                                             |   | 2009                       |      |   | 2008                     |   |   | (Decrease) |   |   | 2009 |   |   | 2008 |   |   | (Decrease) |   |
| Policy fee income                                                                |   | $                          | 530,957   |   |                     | $      | 564,162 |   |   | $ | (33,205 | ) |   | $ | 1,063,646 |   |   | $ | 1,143,020 |   |   | $ | (79,374 | ) |
| Health insurance program                                                         |   |                       | 673,180   |   |                     |   | 686,419 |   |   |   | (13,239 | ) |   |   | 1,360,123 |   |   |   | 1,358,877 |   |   |   | 1,246 |   |
| Membership and fee income                                                        |   |                       | 65,029    |   |                     |   | 76,132 |   |   |   | (11,103 | ) |   |   | 136,436 |   |   |   | 153,049 |   |   |   | (16,613 | ) |
| Other commission and fee income                                                  |   |                       | 60        |   |                     |   | 6,165 |   |   |   | (6,105 | ) |   |   | 643 |   |   |   | 7,162 |   |   |   | (6,519 | ) |
| Daily automobile rental insurance program:                                  |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Commission income (excluding contingent commission) |   |                       | 85,131    |   |                     |   | 82,515 |   |   |   | 2,616 |   |   |   | 167,849 |   |   |   | 166,056 |   |   |   | 1,793 |   |
|     Contingent commission                                    |   |                       | -         |   |                     |   | - |   |   |   | - |   |   |   |  65,514 |   |   |   |  58,593 |   |   |   | 6,921 |   |
| Total                                                                            |   | $                          | 1,354,357 |   |                     | $      | 1,415,393 |   |   | $ | (61,036 | ) |   | $ | 2,794,211 |   |   | $ | 2,886,757 |   |   | $ | (92,546 | ) |

----

|                                                    |   | Three Months Ended June 30 |      |   | Six Months Ended June 30 |   |
|---------------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                                    |   | 2009                       |      |   | 2008                     |   |   | Increase (Decrease) |   |   | 2009 |   |   | 2008 |   |   | Increase (Decrease) |   |
| Losses and loss adjustment expenses:               |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Current accident year                       |   | $                          | 5,840,939 |   |                     | $      | 6,378,563 |   |   | $ | (537,624 | )  |   | $ | 11,182,234 |   |   | $ | 12,933,042 |   |   | $ | (1,750,808 | ) |
| Less: Favorable development of all prior accident years |   |                       | 1,053,706 |   |                     |   | 297,974 |   |   |   | 755,732 |   |   |   | 1,760,348 |   |   |   | 656,747 |   |   |   | 1,103,601 |   |
|      Total                     |   | $                          | 4,787,233 |   |                     | $      | 6,080,589 |   |   | $ | (1,293,356 | ) |   | $ | 9,421,886 |   |   | $ | 12,276,295 |   |   | $ | (2,854,409 | ) |

----

----

|                                                |   | June 30 2009 |        |   | December 31 2008 |   |        | Increase(Decrease) |   |
|-----------------------------------------------------|--------|-------------------|-------------|--------|-----------------------|--------|-------------|--------------------|--------|
|                                                |   |              |        |   |                  |   |        |               |   |
| Fixed maturity bonds (at amortized value)           |   | $                 | 114,468,607 |   |                  | $      | 135,140,354 |               |   | $ | (20,671,747 | ) |
| Short-term cash investments (at cost)               |   |              | 15,291,795  |   |                  |   | 9,502,033   |               |   |   | 5,789,762 |   |
| Certificates of deposit (over 1 year, at cost)      |   |              | 12,808,997  |   |                  |   | 400,000     |               |   |   | 12,408,997 |   |
|                                                |   |              |        |   |                  |   |        |               |   |   |   |   |
|      Total invested assets |   | $                 | 142,569,399 |   |                  | $      | 145,042,387 |               |   | $ | (2,472,988 | ) |

|      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) |   |
|---------------------------------------|--------|-------------------------------------|--------|--------|----------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
|                                  |   |                                |   |   |                                   |   |   |                                                                           |   |   |                                                                           |   |
| April 1, 2009, through April 30, 2009 |   |                                | -      |   |                                   |   | -      |                                                                           |   |   | -                                                                              |   |   |   | 508,779 |   |
| May 1, 2009, through May 31, 2009     |   |                                | 2,150  |   |                                   | $      | 7.52   |                                                                           |   |   | 2,150                                                                          |   |   |   | 506,629 |   |
| June 1, 2009, through June 30, 2009   |   |                                | 1,025  |   |                                   | $      | 7.72   |                                                                           |   |   | 1,025                                                                          |   |   |   | 505,604 |   |
|    Total               |   |                                | 3,175  |   |                                   | $      | 7.58   |                                                                           |   |   | 3,175                                                                          |   |   |   | 505,604 |   |

| (1)   | In April 2000, the Company announced that its Board of Directors had authorized the purchase in the open market 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 ofDirectors authorized the purchase of another 315,000 shares of the common stock of the Company in the open market.  On December 19, 2008, the Board of Directors authorized an additional stock repurchase program to acquire up to 500,000 shares of the Company’s common stock in the open market.  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 maybe terminated by the Board of Directors at any time.  During the six months ended June 30, 2009, the Company repurchased 9,863 shares of the Company’s common stock at a cost of $75,935 of which $4,797 was allocated to capital and $71,138 was allocated to retained earnings.  As of June 30, 2009, under the stock repurchase programs previously adopted by the Company, the Company had remaining authority to repurchase up to an aggregate of 505,604 shares of common stock. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (a)   | On May 21, 2009, the Company held its Annual Meeting of Stockholders. |
|-----------------|-----------------------------------------------------------------------|

| (b)   | Proxies for the meeting were solicited pursuant to Regulation 14 under the Securities Exchange Act of 1934; there was no solicitation in opposition to nominees of the Board of Directors as listed in the Proxy Statement and all such nominees were elected. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | At the meeting, the following persons were elected by the vote indicated as directors to serve until the next Annual Meeting of Shareholders and until their successors are duly elected and qualified.  There were no broker non-votes. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        Name |   | For    |      |   | Withheld |   |
|------------------------------------------------|--------|--------|-----------|--------|----------|--------|
|                                           |   |   |      |   |     |   |
| Erwin Cheldin                                  |   |   | 4,270,932 |   |     |   | 1,160,184 |   |
| Cary L. Cheldin                                |   |   | 4,256,815 |   |     |   | 1,174,301 |   |
| Lester A. Aaron                                |   |   | 4,150,530 |   |     |   | 1,280,586 |   |
| George C. Gilpatrick                           |   |   | 4,284,289 |   |     |   | 1,146,827 |   |
| Terry L. Kinigstein                            |   |   | 4,274,542 |   |     |   | 1,156,574 |   |
| Jon P. Kocourek                                |   |   | 5,285,699 |   |     |   | 145,417 |   |
| David A. Lewis                                 |   |   | 5,176,527 |   |     |   | 254,589 |   |
| Warren D. Orloff                               |   |   | 5,282,878 |   |     |   | 148,238 |   |
| Donald B. Urfrig                               |   |   | 5,285,699 |   |     |   | 145,417 |   |

|   | 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). |
|------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----