| 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 May 14, 2010 |
|--------------------------------------|-----------------------------|
| Common Stock, $0 Par value per share | 5,306,204                   |

----

|                                                                                                      |   | March 31    |        |   | December 31 |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|-------------|--------|
|                                                                                                      |   | 2010        |        |   | 2009        |   |
|                                                                                                      |   | (Unaudited) |        |   |        |   |
| ASSETS                                                                                                    |   |        |        |   |        |   |
| Investments                                                                                               |   |        |        |   |        |   |
|    Available for sale:                                                                     |   |        |        |   |        |   |
|       Fixed maturities, at fair value (amortized cost:  March 31, |   |        |        |   |        |   |
|          2010 $121,226,729; December 31, 2009 $128,440,695)  |   | $           | 125,178,792 |   |        | $      | 132,595,483 |   |
|    Short-term investments, at cost                                                         |   |        | 15,760,668  |   |        |   | 9,157,832 |   |
| Total Investments                                                                                         |   |        | 140,939,460 |   |        |   | 141,753,315 |   |
| Cash                                                                                                      |   |        | 7,616       |   |        |   | 118,512 |   |
| Accrued investment income                                                                                 |   |        | 755,239     |   |        |   | 763,840 |   |
| Premium and notes receivable, net                                                                         |   |        | 4,483,121   |   |        |   | 4,364,747 |   |
| Reinsurance recoverable:                                                                                  |   |        |        |   |        |   |   |   |
|    Paid losses and loss adjustment expenses                                                |   |        | 303,171     |   |        |   | 453,314 |   |
|    Unpaid losses and loss adjustment expenses                                              |   |        | 15,487,084  |   |        |   | 16,175,863 |   |
| Deferred policy acquisition costs                                                                         |   |        | 4,846,693   |   |        |   | 4,955,636 |   |
| Property and equipment (net of accumulated depreciation)                                                  |   |        | 178,316     |   |        |   | 221,255 |   |
| Deferred income taxes                                                                                     |   |        | 721,200     |   |        |   | 633,191 |   |
| Other assets                                                                                              |   |        | 542,083     |   |        |   |  668,979 |   |
| Total Assets                                                                                              |   | $           | 168,263,983 |   |        | $      | 170,108,652 |   |
|                                                                                                      |   |        |        |   |        |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                      |   |
| LIABILITIES                                                                                               |   |        |        |   |        |   |   |   |
| Unpaid losses and loss adjustment expenses                                                                |   | $           | 69,537,404  |   |        | $      | 71,585,408 |   |
| Unearned premium                                                                                          |   |        | 17,891,216  |   |        |   | 18,811,415 |   |
| Advance premium and premium deposits                                                                      |   |        | 1,364,510   |   |        |   | 1,034,052 |   |
| Income taxes payable                                                                                      |   |        | 94,651      |   |        |   | - |   |
| Accrued expenses and other liabilities                                                                    |   |        | 5,695,468   |   |        |   | 5,362,437 |   |
| Total Liabilities                                                                                         |   | $           | 94,583,249  |   |        | $      | 96,793,312 |   |
|                                                                                                      |   |        |        |   |        |   |   |   |
| STOCKHOLDERS'  EQUITY                                                                           |   |        |        |   |        |   |   |   |
| Common stock, no par – authorized 10,000,000 shares; issued and outstanding                         |   |        |        |   |        |   |   |   |
|    shares 5,306,204 at March 31, 2010, and 5,306,204 at December 31, 2009                  |   | $           | 3,437,343   |   |        | $      | 3,437,343 |   |
| Accumulated other comprehensive income                                                                    |   |        | 2,608,361   |   |        |   | 2,742,160 |   |
| Retained earnings                                                                                         |   |        | 67,635,030  |   |        |   | 67,135,837 |   |
| Total Stockholders’ Equity                                                                          |   | $           | 73,680,734  |   |        | $      | 73,315,340 |   |
|                                                                                                      |   |        |        |   |        |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                |   | $           | 168,263,983 |   |        | $      | 170,108,652 |   |

----

|                                                                                         |   | Three Months Ended |      |
|----------------------------------------------------------------------------------------------|--------|--------------------|-----------|
|                                                                                         |   | March 31           |      |
|                                                                                         |   | 2010               |      |   | 2009 |   |
| REVENUES                                                                                     |   |               |      |   |   |   |
| Insurance Company Revenues                                                                   |   |               |      |   |   |   |
|      Premium earned                                                 |   | $                  | 9,389,158 |   |   | $ | 9,874,147 |   |
|      Premium ceded                                                  |   |               | 1,946,931 |   |   |   | 2,254,988 |   |
|           Net premium earned               |   |               | 7,442,227 |   |   |   | 7,619,159 |   |
|      Net investment income                                          |   |               | 938,258   |   |   |   | 1,223,860 |   |
|      Other income                                                   |   |               | 180,126   |   |   |   | 204,310 |   |
|           Total Insurance Company Revenues |   |               | 8,560,611 |   |   |   | 9,047,329 |   |
|                                                                                         |   |               |      |   |   |   |   |   |
| Other Revenues from Insurance Operations                                                     |   |               |      |   |   |   |   |   |
|      Gross commissions and fees                                     |   |               | 1,249,138 |   |   |   | 1,439,854 |   |
|      Investment income                                              |   |               | 1,060     |   |   |   | 267 |   |
|      Finance charges and fees earned                                |   |               | 85,782    |   |   |   | 98,875 |   |
|      Other income                                                   |   |               | 1,222     |   |   |   | 2,102 |   |
|           Total Revenues                   |   |               | 9,897,813 |   |   |   | 10,588,427 |   |
|                                                                                         |   |               |      |   |   |   |   |   |
| EXPENSES                                                                                     |   |               |      |   |   |   |   |   |
| Losses and loss adjustment expenses                                                          |   |               | 5,308,149 |   |   |   | 4,634,653 |   |
| Policy acquisition costs                                                                     |   |               | 1,886,826 |   |   |   | 1,953,859 |   |
| Salaries and employee benefits                                                               |   |               | 888,989   |   |   |   | 1,428,949 |   |
| Commissions to agents/brokers                                                                |   |               | 191,978   |   |   |   | 313,791 |   |
| Other operating expenses                                                                     |   |               | 857,440   |   |   |   | 709,596 |   |
|      Total Expenses                                                 |   |               | 9,133,382 |   |   |   | 9,040,848 |   |
|                                                                                         |   |               |      |   |   |   |   |   |
| Income Before Taxes                                                                          |   |               | 764,431   |   |   |   | 1,547,579 |   |
| Income Tax Expense                                                                           |   |               | 265,238   |   |   |   | 518,335 |   |
|      Net Income                                                     |   | $                  | 499,193   |   |   | $ | 1,029,244 |   |
|                                                                                         |   |               |      |   |   |   |   |   |
|                                                                                         |   |               |      |   |   |   |   |   |
|                                                                                         |   |               |      |   |   |   |   |   |
| PER SHARE DATA                                                                               |   |               |      |   |   |   |   |   |
| Basic                                                                                        |   |               |      |   |   |   |   |   |
|   Earnings Per Share                                                               |   | $                  | 0.09      |   |   | $ | 0.18 |   |
|   Weighted Average Shares                                                          |   |               | 5,306,204 |   |   |   | 5,569,256 |   |
|                                                                                         |   |               |      |   |   |   |   |   |
| Diluted                                                                                      |   |               |      |   |   |   |   |   |
|   Earnings Per Share                                                               |   | $                  | 0.09      |   |   | $ | 0.18 |   |
|   Weighted Average Shares                                                          |   |               | 5,349,923 |   |   |   | 5,607,071 |   |

----

|                                                                                            |   | Three Months Ended |     |
|-------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                            |   | March 31           |     |
|                                                                                            |   | 2010               |     |   | 2009 |   |
|                                                                                            |   |               |     |   |   |   |
| Net Income                                                                                      |   | $                  | 499,193  |   |   | $ | 1,029,244 |   |
| Other changes in comprehensive income, net of tax:                                              |   |               |     |   |   |   |   |   |
|      Unrealized (losses) on securities classified                      |   |               |     |   |   |   |   |   |
|         as available-for-sale arising during the period |   |               | (133,799 | ) |   |   | (706,975 | ) |
|             Comprehensive Income    |   | $                  | 365,394  |   |   | $ | 322,269 |   |

----

|                                                                                            |   | Three Months Ended March 31 |       |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                                            |   | 2010                        |       |   | 2009 |   |
| Cash flows from operating activities:                                                           |   |                        |       |   |   |   |
|    Net income                                                                    |   | $                           | 499,193    |   |   | $ | 1,029,244 |   |
|    Adjustments to reconcile net income to net cash from operations               |   |                        |       |   |   |   |   |   |
|       Depreciation                                                |   |                        | 30,607     |   |   |   | 48,917 |   |
|       Bond amortization, net                                      |   |                        | 10,965     |   |   |   | 84,747 |   |
|    Changes in assets and liabilities                                             |   |                        |       |   |   |   |   |   |
|       Premium, notes and investment income receivable             |   |                        | (109,773   | ) |   |   | (864,018 | ) |
|       Reinsurance recoverable                                     |   |                        | 838,922    |   |   |   | 108,218 |   |
|       Deferred policy acquisition costs                           |   |                        | 108,943    |   |   |   | (145,476 | ) |
|       Other assets                                                |   |                        | (64,531    | ) |   |   | (9,345 | ) |
|       Unpaid losses and loss adjustment expenses                  |   |                        | (2,048,004 | ) |   |   | (3,209,920 | ) |
|       Unearned premium                                            |   |                        | (920,199   | ) |   |   | 742,862 |   |
|       Advance premium and premium deposits                        |   |                        | 330,458    |   |   |   | 438,173 |   |
|       Accrued expenses and other liabilities                      |   |                        | 333,031    |   |   |   | (8,364 | ) |
| Income taxes current/deferred                                                                   |   |                        | 266,996    |   |   |   |  (129,472 | ) |
|       Net Cash (Used) by Operating Activities                     |   |                        | (723,392   | ) |   |   | (1,914,434 | ) |
|                                                                                            |   |                        |       |   |   |   |   |   |
| Cash flows from investing activities:                                                           |   |                        |       |   |   |   |   |   |
|    Purchase of fixed maturity investments                                        |   |                        | (1,297,000 | ) |   |   | (2,195,999 | ) |
|    Proceeds from maturity of fixed maturity investments                          |   |                        | 8,500,000  |   |   |   | 7,200,000 |   |
|    Net (increase) in short-term investments                                      |   |                        | (6,602,836 | ) |   |   | (2,983,612 | ) |
|    Write-offs (additions) to property and equipment                              |   |                        | 12,332     |   |   |   | (49,054 | ) |
|          Net Cash Provided by Investing Activities |   |                        | 612,496    |   |   |   | 1,971,335 |   |
|                                                                                            |   |                        |       |   |   |   |   |   |
| Financing Activities                                                                            |   |                        |       |   |   |   |   |   |
| Repurchase of common stock                                                                      |   |                        | -          |   |   |   | (51,866 | ) |
| Net Cash (Used) by Financing Activities                                                         |   |                        | -          |   |   |   | (51,866 | ) |
|                                                                                            |   |                        |       |   |   |   |   |   |
| Net (decrease) increase in cash                                                                 |   |                        | (110,896   | ) |   |   | 5,035 |   |
| Cash at beginning of period                                                                     |   |                        | 118,512    |   |   |   | 27,710 |   |
| Cash at End of Period                                                                           |   | $                           | 7,616      |   |   | $ | 32,745 |   |
|                                                                                            |   |                        |       |   |   |   |   |   |
| Supplemental Cash Flow Information                                                              |   |                        |       |   |   |   |   |   |
| Cash paid during the period for:                                                                |   |                        |       |   |   |   |   |   |
| Income taxes                                                                                    |   |                        | -          |   |   | $ | 650,000 |   |

----

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

| 1.   | Investment Securities excluding long-term certificates of deposit – Fair values are obtained from a national quotation service. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------|

| 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 approximate their fair values given the short-term nature of these instruments. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|                                                                  |   | Three Months Ended MonthsEnded |      |   | Year Ended  |   |
|-----------------------------------------------------------------------|--------|--------------------------------|-----------|--------|-------------|--------|
|                                                                  |   | March 31                       |      |   | December 31 |   |
|                                                                  |   | 2010                           |      |   | 2009        |   |   | 2009 |   |
|                                                                  |   |                           |      |   |        |   |   |   |   |
|  Expected expense for salaries and employee benefits             |   |                           | 1,138,161 |   |        | $      | 1,428,949 |   |   |   | 4,950,955 |   |
|  Adjustment to profit sharing plan contribution                  |   |                           | (249,172  | )      |        |   | - |   |   |   | 249,172 |   |
|  Salaries and benefits per Consolidated Statements of Operations |   | $                              | 888,989   |   |        | $      | 1,428,949 |   |   | $ | 5,200,127 |   |

|                                                   |   | Three Months Ended |      |
|--------------------------------------------------------|--------|--------------------|-----------|
|                                                   |   | March 31           |      |
|                                                   |   | 2010               |      |   | 2009 |   |
| Basic Earnings Per Share                               |   |               |      |   |   |   |
| Net income numerator                                   |   | $                  | 499,193   |   |   | $ | 1,029,244 |   |
|                                                   |   |               |      |   |   |   |   |   |
| Weighted average shares outstanding denominator        |   |               | 5,306,204 |   |   |   | 5,569,256 |   |
|                                                   |   |               |      |   |   |   |   |   |
|      Basic Earnings Per Share |   | $                  | 0.09      |   |   | $ | 0.18 |   |

| Diluted Earnings Per Share                               |   |   |      |   |   |   |
|----------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Net income numerator                                     |   | $      | 499,193   |   |   | $      | 1,029,244 |   |
|                                                     |   |   |      |   |   |   |   |   |
| Weighted average shares outstanding                      |   |   | 5,306,204 |   |   |   | 5,569,256 |   |
| Effect of diluted securities                             |   |   | 43,719    |   |   |   | 37,815 |   |
| Diluted shares outstanding denominator                   |   |   | 5,349,923 |   |   |   | 5,607,071 |   |
|                                                     |   |   |      |   |   |   |   |   |
|      Diluted Earnings Per Share |   | $      | 0.09      |   |   | $      | 0.18 |   |

----

|                                                           |   |               |       |
|----------------------------------------------------------------|--------|--------------------|------------|
|                                                           |   | Three Months Ended |       |
|                                                           |   | March 31           |       |
|                                                           |   | 2010               |       |   | 2009 |   |
| Revenues                                                       |   |               |       |   |   |   |
| Insurance company operation                                    |   | $                  | 8,560,611  |   |   | $ | 9,047,329 |   |
|                                                           |   |               |       |   |   |   |   |   |
| Other insurance operations                                     |   |               | 3,659,299  |   |   |   | 4,653,297 |   |
| Intersegment elimination (1)                                   |   |               | (2,322,097 | ) |   |   | (3,112,199 | ) |
|    Total other insurance operations             |   |               | 1,337,202  |   |   |   | 1,541,098 |   |
|                                                           |   |               |       |   |   |   |   |   |
|    Total Revenues                               |   | $                  | 9,897,813  |   |   | $ | 10,588,427 |   |
|                                                           |   |               |       |   |   |   |   |   |
| Income Before Income Taxes                                     |   |               |       |   |   |   |   |   |
| Insurance company operation                                    |   | $                  | 1,231,813  |   |   | $ | 1,846,956 |   |
| Other insurance operations                                     |   |               | (467,382   | ) |   |   | (299,377 | ) |
|      Total Income Before Income Taxes |   | $                  | 764,431    |   |   | $ | 1,547,579 |   |

----

|                                                                  |   | As of    |        |
|-----------------------------------------------------------------------|--------|----------|-------------|
|                                                                  |   | March 31 |        |   | December 31 |   |
|                                                                  |   | 2010     |        |   | 2009 |   |
| Assets                                                                |   |     |        |   |   |   |
| Insurance company operation                                           |   | $        | 155,464,864 |   |   | $ | 157,271,019 |   |
| Intersegment eliminations (2)                                         |   |     | (1,244,608  | ) |   |   | (824,887 | ) |
|      Total insurance company operation  |   |     | 154,220,256 |   |   |   | 156,446,132 |   |
| Other insurance operations                                            |   |     | 14,043,727  |   |   |   | 13,662,520 |   |
|      Total Assets                            |   | $        | 168,263,983 |   |   | $ | 170,108,652 |   |

----

|                                                   |   |      |        |   | Gross      |   |      | Gross      |   |   | Estimated |   |
|--------------------------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|-----------|--------|
|                                                   |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Fair      |   |
|                                                   |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Value     |   |
| March 31, 2010                                         |   |      |        |   |       |   |      |       |   |   |      |   |
| Available for sale:                                    |   |      |        |   |       |   |      |       |   |   |      |   |
|   Fixed maturities                           |   |      |        |   |       |   |      |       |   |   |      |   |
|   Certificates of deposit                    |   | $         | 22,331,997  |   |       |   | -         |       |   |   | -         |   |   | $ | 22,331,997 |   |
|   U.S. treasury securities                   |   |      | 94,862,045  |   |       | $      | 3,891,785 |       |   | $      | 1,955     |   |   |   | 98,751,875 |   |
|   Industrial and miscellaneous taxable bonds |   |      | 4,032,687   |   |       |   | 62,233    |       |   |   | -         |   |   |   | 4,094,920 |   |
|      Total fixed maturities   |   | $         | 121,226,729 |   |       | $      | 3,954,018 |       |   | $      | 1,955     |   |   | $ | 125,178,792 |   |
|                                                   |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
| December 31, 2009                                      |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
| Available for sale:                                    |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
|   Fixed maturities                           |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
|   Certificates of deposit                    |   | $         | 21,034,997  |   |       |   | -         |       |   |   | -         |   |   | $ | 21,034,997 |   |
|   U.S. treasury securities                   |   |      | 103,361,652 |   |       | $      | 4,057,614 |       |   |   | -         |   |   |   | 107,419,266 |   |
|   Industrial and miscellaneous taxable bonds |   |      | 4,044,046   |   |       |   | 97,174    |       |   |   | -         |   |   |   | 4,141,220 |   |
|      Total fixed maturities   |   | $         | 128,440,695 |   |       | $      | 4,154,788 |       |   |   | -         |   |   | $ | 132,595,483 |   |

|                                                                       |   | March 31 |       |   | December 31 |   |
|----------------------------------------------------------------------------|--------|----------|------------|--------|-------------|--------|
|                                                                       |   | 2010     |       |   | 2009        |   |
|                                                                       |   |     |       |   |        |   |
| Gross unrealized gains of fixed maturities                                 |   | $        | 3,954,018  |   |        | $      | 4,154,788 |   |
| Gross unrealized (losses) of fixed maturities                              |   |     | (1,955     | )      |        |   | - |   |
| Net unrealized gains on investments                                        |   |     | 3,952,063  |   |        |   | 4,154,788 |   |
| Deferred federal tax (expense)                                             |   |     | (1,343,702 | )      |        |   | (1,412,628 | ) |
|    Net unrealized gains,  net of deferred income taxes |   | $        | 2,608,361  |   |        | $      | 2,742,160 |   |

|                                           |   | March 31 |       |   | December 31 |   |
|------------------------------------------------|--------|----------|------------|--------|-------------|--------|
|                                           |   | 2010     |       |   | 2009        |   |
|                                           |   |     |       |   |        |   |
| U.S. government money market fund              |   | $        | 6,116,175  |   |        | $      | 2,562,100 |   |
| Bank money market accounts                     |   |     | 8,394,633  |   |        |   | 3,348,973 |   |
| Certificates of deposit                        |   |     | 1,248,000  |   |        |   | 3,245,000 |   |
| Bank savings accounts                          |   |     | 1,860      |   |        |   | 1,759 |   |
|    Total short-term investments |   | $        | 15,760,668 |   |        | $      | 9,157,832 |   |

|                                                  |   | Three Months Ended March 31 |    |
|-------------------------------------------------------|--------|-----------------------------|---------|
|                                                  |   | 2010                        |    |   | 2009 |   |
|                                                  |   |                        |    |   |   |   |
| Fixed maturities                                      |   | $                           | 930,102 |   |   | $ | 1,212,143 |   |
| Short-term investments                                |   |                        | 9,216   |   |   |   | 11,984 |   |
|      Total investment income |   | $                           | 939,318 |   |   | $ | 1,224,127 |   |

----

----

|                                      |   | Three Months Ended March 31 |      |
|-------------------------------------------|--------|-----------------------------|-----------|
|                                      |   |   2010                 |      |   |   2009 |   |   | Increase (Decrease) |   |
|                                      |   |                        |      |   |   |   |   |   |   |
| Net premium earned                        |   | $                           | 7,442,227 |   |   | $ | 7,619,159 |   |   | $ | (176,932 | ) |
|                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
| Less:                                     |   |                        |      |   |   |   |   |   |   |   |   |   |
| Losses and loss adjustment expenses       |   |                        | 5,308,149 |   |   |   | 4,634,653 |   |   |   | 673,496 |   |
| Policy acquisition costs                  |   |                        | 1,886,826 |   |   |   | 1,953,859 |   |   |   | (67,033 | ) |
|      Total       |   |                        | 7,194,975 |   |   |   | 6,588,512 |   |   |   | 606,463 |   |
|                                      |   |                        |      |   |   |   |   |   |   |   |   |   |
| Underwriting profit (before income taxes) |   | $                           | 247,252   |   |   | $ | 1,030,647 |   |   | $ | (783,395 | ) |

|                                                                                |   | Three Months Ended March 31 |      |
|-------------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                                |   |                        |      |   |   |   |   |   |   |
|                                                                                |   | 2010                        |      |   | 2009 |   |   | Increase (Decrease) |   |
|                                                                                |   |                        |      |   |   |   |   |   |   |
| Losses and loss adjustment expenses:                                                |   |                        |      |   |   |   |   |   |   |
|   Current accident year                                                   |   | $                           | 7,315,970 |   |   | $ | 5,341,295 |   |   | $ | 1,974,675 |   |
|   Favorable  development of all  prior accident years |   |                        | 2,007,821 |   |   |   | 706,642 |   |   |   | 1,301,179 |   |
|      Total losses and loss adjustment expenses             |   | $                           | 5,308,149 |   |   | $ | 4,634,653 |   |   | $ | 673,496 |   |

----

----

|                                                                   |   | Three Months Ended March 31 |      |
|------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                   |   |  2010                  |      |   |  2009 |   |   | Increase(Decrease) |   |
|                                                                   |   |                        |      |   |   |   |   |   |   |
| Direct earned premium                                                  |   | $                           | 9,389,158 |   |   | $ | 9,874,147 |   |   | $ | (484,989 | ) |
|                                                                   |   |                        |      |   |   |   |   |   |   |   |   |   |
| Earned ceded premium                                                   |   |                        | 1,946,931 |   |   |   | 2,254,988 |   |   |   | (308,057 | ) |
| Ceding commission                                                      |   |                        | (578,097  | ) |   |   | (668,594 | ) |   |   | 90,497 |   |
|     Earned ceded premium, net of ceding commission |   | $                           | 1,368,834 |   |   | $ | 1,586,394 |   |   | $ | (217,560 | ) |

----

|                                        |   | Three Months Ended March 31 |        |
|---------------------------------------------|--------|----------------------------------|-------------|
|                                        |   | 2010                             |        |   | 2009 |   |
|                                        |   |                             |        |   |   |   |
| Average Invested Assets*                    |   | $                                | 137,292,962 |   |   | $ | 143,989,819 |   |
| Total Investment Income                     |   | $                                | 939,318     |   |   | $ | 1,224,127 |   |
| Annualized Yield on Average Invested Assets |   |                             | 2.7         | % |   |   | 3.4 | % |

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

|     Maturities by   Calendar Year |   | Par Value |        |   | Amortized Cost |   |        | Fair Value |   |   | WeightedAverage Yield |   |
|----------------------------------------------------------------------|--------|----------------|-------------|--------|----------------|--------|-------------|------------|--------|--------|-----------------------|--------|
|                                                                 |   |           |        |   |           |   |        |       |   |   |                  |   |
| December 31, 2010                                                    |   |           | 29,048,999  |   |           |   | 29,079,447  |       |   |   | 29,283,450            |   |   |   | 2.6 | % |
| December 31, 2011                                                    |   |           | 43,288,998  |   |           |   | 43,331,771  |       |   |   | 43,859,311            |   |   |   | 2.0 | % |
| December 31, 2012                                                    |   |           | 39,744,000  |   |           |   | 39,721,584  |       |   |   | 42,504,000            |   |   |   | 4.3 | % |
| December 31, 2013                                                    |   |           | 9,100,000   |   |           |   | 9,093,927   |       |   |   | 9,532,031             |   |   |   | 3.3 | % |
|    Total                                              |   | $              | 121,181,997 |   |           | $      | 121,226,729 |       |   | $      | 125,178,792           |   |   |   | 3.0 | % |

----

|              |   | Fair   |      |   | Gross           |   |
|-------------------|--------|--------|-----------|--------|-----------------|--------|
|              |   | Value  |      |   | Unrealized Loss |   |
|              |   |   |      |   |            |   |
| 0-6 months        |   | $      | 4,993,750 |   |            | $      | 1,955 |   |
| 7-12 months       |   |   | -         |   |            |   | - |   |
| Over 12 months    |   |   | -         |   |            |   | - |   |
|   Total |   | $      | 4,993,750 |   |            | $      | 1,955 |   |

|                                                                    |   | Three Months Ended |      |   |     |   |
|-------------------------------------------------------------------------|--------|--------------------|-----------|--------|----------|--------|
|                                                                    |   | March 31           |      |   | Increase |   |
|                                                                    |   | 2010               |      |   | 2009     |   |   | (Decrease) |   |
|                                                                    |   |               |      |   |     |   |   |   |   |
| Policy fee income                                                       |   | $                  | 511,046   |   |     | $      | 532,691 |   |   | $ | (21,645 | ) |
| Health insurance program                                                |   |               | 530,228   |   |     |   | 686,942 |   |   |   | (156,714 | ) |
| Membership and fee income                                               |   |               | 57,386    |   |     |   | 71,407 |   |   |   | (14,021 | ) |
| Other commission and fee income                                         |   |               | 85        |   |     |   | 582 |   |   |   | (497 | ) |
| Daily automobile rental insurance program:                              |   |               |      |   |     |   |   |   |   |   |   |   |
|    Commission income (excluding contingent commission)   |   |               | 82,520    |   |     |   | 82,718 |   |   |   | (198 | ) |
|    Contingent commission                                 |   |               | 67,873    |   |     |   | 65,514 |   |   |   | 2,359 |   |
|            Total |   | $                  | 1,249,138 |   |     | $      | 1,439,854 |   |   | $ | (190,716 | ) |

----

|                                                                                            |   | Three Months Ended March 31 |      |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                                            |   |                        |      |   |   |   |   |   |   |
|                                                                                            |   | 2010                        |      |   | 2009 |   |   | Increase (Decrease) |   |
|  Losses and loss adjustment expenses:                                                      |   |                        |      |   |   |   |   |   |   |
|    Current accident year                                                         |   | $                           | 7,315,970 |   |   | $ | 5,341,295 |   |   | $ | 1,974,675 |   |
|    Less: favorable  development of all  prior accident years |   |                        | 2,007,821 |   |   |   | 706,642 |   |   |   | 1,301,179 |   |
|      Total                                                             |   | $                           | 5,308,149 |   |   | $ | 4,634,653 |   |   | $ | 673,496 |   |

----

----

|                                                |   | March 31 2010 |        |   | December 31 2009 |   |        | Increase(Decrease) |   |
|-----------------------------------------------------|--------|--------------------|-------------|--------|-----------------------|--------|-------------|--------------------|--------|
|                                                |   |               |        |   |                  |   |        |               |   |
| Fixed maturity bonds (at amortized value)           |   | $                  | 98,894,732  |   |                  | $      | 107,405,698 |               |   | $ | (8,510,966 | ) |
| Short-term cash investments (at cost)               |   |               | 15,760,668  |   |                  |   | 9,157,832   |               |   |   | 6,602,836 |   |
| Certificates of deposit (over 1 year, at cost)      |   |               | 22,331,997  |   |                  |   | 21,034,997  |               |   |   | 1,297,000 |   |
|      Total invested assets |   | $                  | 136,987,397 |   |                  | $      | 137,598,527 |               |   | $ | (611,130 | ) |

----

|   | 10.1 | Amendment to Employee Agreement effective January 1, 2010 between Registrant and Cary L.  Cheldin. |
|--------|------|--------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Amendment to Employee Agreement effective January 1, 2010 between Registrant and Lester A. Aaron. |
|--------|------|---------------------------------------------------------------------------------------------------|

|   | 10.3 | Amendment to Employee Agreement effective January 1, 2010 between Registrant and Terry L. Kinigstein. |
|--------|------|-------------------------------------------------------------------------------------------------------|

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

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

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

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

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

----

|   | 10.1 | Amendment to Employee Agreement effective January 1, 2010 between Registrant and Cary L.  Cheldin. |
|--------|------|--------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Amendment to Employee Agreement effective January 1, 2010 between Registrant and Lester A. Aaron. |
|--------|------|---------------------------------------------------------------------------------------------------|

|   | 10.3 | Amendment to Employee Agreement effective January 1, 2010 between Registrant and Terry L. Kinigstein. |
|--------|------|-------------------------------------------------------------------------------------------------------|

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