SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

               Quarterly Report Under Section 13 or 15 (d) of the
                        Securities Exchange Act of 1934


          For the quarterly period from April 1, 2000 to June 30, 2000


                           Commission File No. 0-3978


                           UNICO AMERICAN CORPORATION
             (Exact name of registrant as specified in its charter)


            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)


                                 (818) 591-9800
                          Registrant's telephone number


          Securities registered pursuant to Section 12(b) of the Act:
                                      None
                              (Title of each class)


          Securities registered pursuant to Section 12(g) of the Act:
                           Common Stock, No Par Value
                                (Title of Class)


                                    No Change
              (Former name, former address and former fiscal year,
                         if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  Registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes X No


                                    6,000,365
        Number of shares of common stock outstanding as of August 8, 2000



                                       1
<PAGE>



                         PART 1 - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS
-----------------------------

                           UNICO AMERICAN CORPORATION
                                AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                                                            June 30              December 31
                                                                                              2000                  1999
                                                                                              ----                  ----
<S>                                                                                       <C>                   <C>
ASSETS
------
Investments
   Available for sale:
      Fixed maturities, at market value (amortized cost:  June 30,
         2000  $96,945,700;  December 31, 1999  $99,142,275)                               $95,123,678           $97,594,134
      Equity securities at market (cost: June 30, 2000
         $164,170;  December 31, 1999  $164,170)                                                52,500                66,000
   Short-term investments, at cost                                                           5,224,915             5,968,173
                                                                                           -----------           -----------
      Total Investments                                                                    100,401,093           103,628,307
Cash                                                                                           265,247               105,439
Accrued investment income                                                                    1,935,058             2,060,471
Premiums and notes receivable, net                                                           5,667,908             5,496,890
Reinsurance recoverable:
   Paid losses and loss adjustment expenses                                                     43,541                19,850
   Unpaid losses and loss adjustment expenses                                                4,989,221             3,964,324
Prepaid reinsurance premiums                                                                    43,235                32,438
Deferred policy acquisition costs                                                            4,488,023             4,338,217
Property and equipment (net of accumulated depreciation)                                       123,731               148,667
Deferred income taxes                                                                        1,532,379             1,541,242
Other assets                                                                                   415,907               642,911
                                                                                           -----------           -----------
     Total Assets                                                                         $119,905,343          $121,978,756
                                                                                           ===========           ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
LIABILITIES
-----------
Unpaid losses and loss adjustment expenses                                                 $39,666,236           $41,592,489
Unearned premiums                                                                           16,921,362            16,583,143
Advance premium and premium deposits                                                         2,520,493             2,571,190
Accrued expenses and other liabilities                                                       6,354,718             6,391,137
                                                                                            ----------            ----------
    Total Liabilities                                                                      $65,462,809           $67,137,959
                                                                                            ----------            ----------

STOCKHOLDERS'  EQUITY
---------------------
Common stock,  no par - authorized  10,000,000  shares;  issued and  outstanding
   shares 6,224,565 at June 30, 2000, and 6,304,953 at December 31, 1999                  $  2,588,462          $  3,098,389
Accumulated other comprehensive (loss)                                                      (1,276,237)           (1,086,565)
Retained earnings                                                                           53,130,309            52,828,973
                                                                                            ----------            ----------
  Total Stockholders' Equity                                                               $54,442,534           $54,840,797
                                                                                            ----------            ----------

  Total Liabilities and Stockholders' Equity                                              $119,905,343          $121,978,756
                                                                                           ===========           ===========
</TABLE>




           See notes to unaudited consolidated financial statements.



                                       2
<PAGE>

                           UNICO AMERICAN CORPORATION
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                   Three Months Ended                      Six Months Ended
                                                                        June 30                                June 30
                                                                        -------                                -------
                                                                 2000               1999                2000                1999
                                                                 ----               ----                ----                ----
<S>                                                           <C>                <C>                 <C>                <C>
REVENUES
--------
Insurance Company Revenues
     Premium earned                                           $8,093,893         $8,741,566          $16,210,445        $17,649,890
     Premium ceded                                             1,614,606          1,799,361            2,954,112          3,216,157
                                                               ---------          ---------           ----------         ----------
          Net premium earned                                   6,479,287          6,942,205           13,256,333         14,433,733
     Net investment income                                     1,411,869          1,401,370            2,843,359          2,817,780
     Net realized investment gains                                     -             59,785                    -             59,160
     Other income                                                  4,613                372                9,648                372
                                                               ---------          ---------           ----------         ----------
          Total Insurance Company Revenues                     7,895,769          8,403,732           16,109,340         17,311,045

Other Revenues from Insurance Operations
     Gross commissions and fees                                1,469,708          1,380,282            2,884,060          2,772,703
     Investment income                                           102,688             74,361              195,355            139,210
     Finance charges and late fees earned                        208,898            227,977              416,032            460,867
     Other income                                                  3,057              5,515                4,619              8,639
                                                               ---------         ----------           ----------         ----------
          Total Revenues                                       9,680,120         10,091,867           19,609,406         20,692,464
                                                               ---------         ----------           ----------         ----------

EXPENSES
--------
Losses and loss adjustment expenses                            4,739,888          4,098,349            9,690,427          7,478,151
Policy acquisition costs                                       2,003,216          2,056,422            4,106,567          4,273,913
Salaries and employee benefits                                 1,098,302          1,022,049            2,179,863          2,137,871
Commissions to agents/brokers                                    323,667            322,645              656,795            640,647
Other operating expenses                                         706,577            619,024            1,338,969          1,278,876
                                                               ---------          ---------           ----------         ----------
     Total Expenses                                            8,871,650          8,118,489           17,972,621         15,809,458
                                                               ---------          ---------           ----------         ----------

     Income Before Taxes                                         808,470          1,973,378            1,636,785          4,883,006
Income Tax Provision                                             196,398            538,250              389,704          1,416,116
                                                                 -------          ---------           ----------          ---------
     Net Income                                                $ 612,072         $1,435,128           $1,247,081         $3,466,890
                                                                 =======          =========            =========          =========



PER SHARE DATA
--------------
Basic Shares Outstanding                                       6,270,012          6,238,243            6,287,488          6,231,184
Basic Earnings Per Share                                           $0.10              $0.23                $0.20              $0.56

Diluted Shares Outstanding                                     6,311,950          6,355,999            6,330,371          6,354,889
Diluted Earnings Per Share                                         $0.10              $0.23                $0.20              $0.55

</TABLE>



           See notes to unaudited consolidated financial statements.


                                       3
<PAGE>

                           UNICO AMERICAN CORPORATION
                                AND SUBSIDIARIES

                        STATEMENT OF COMPREHENSIVE INCOME
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                   Three Months Ended                      Six Months Ended
                                                                        June 30                                June 30
                                                                        -------                                -------
                                                                  2000              1999                2000               1999
                                                                  ----              ----                ----               ----
<S>                                                             <C>              <C>                 <C>                <C>
Net income                                                      $612,072         $1,435,128          $1,247,081         $3,466,890
Other changes in comprehensive income net of tax:
     Unrealized gains (losses) on securities
        classified as available-for-sale arising
        during the period                                         19,064           (967,094)           (189,672)        (1,958,790)
     Less: reclassification adjustment for
        gains (losses) included in net income                          -           (106,432)                  -            (20,097)
                                                                 -------            -------           ---------          ---------
            Comprehensive Income                                $631,136           $361,602          $1,057,409         $1,488,003
                                                                 =======            =======           =========          =========
</TABLE>




           See notes to unaudited consolidated financial statements.


                                       4
<PAGE>

                           UNICO AMERICAN CORPORATION
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                       FOR THE SIX MONTHS ENDED JUNE 30,

<TABLE>
<CAPTION>

                                                                                           2000                  1999
                                                                                           ----                  ----
<S>                                                                                     <C>                   <C>
Cash Flows from Operating Activities:
   Net Income                                                                           $1,247,081            $3,466,890
   Adjustments to reconcile net income to net cash from operations
      Depreciation and amortization                                                         31,473                37,524
      Bond amortization, net                                                               289,649               366,442
      Net realized (gain) on sale of securities                                                  -               (59,160)
   Changes in assets and liabilities
      Premium, notes and investment income receivable                                      (45,605)               12,605
      Reinsurance recoverable                                                           (1,048,588)           (1,208,752)
      Prepaid reinsurance premiums                                                         (10,797)               (7,288)
      Deferred policy acquisitions costs                                                  (149,806)              128,137
      Other assets                                                                         227,002               222,454
      Reserve for unpaid losses and loss adjustment expenses                            (1,926,253)           (2,104,057)
      Unearned premium reserve                                                             338,219              (456,653)
      Funds held as security and advanced premiums                                         (50,697)              157,105
      Accrued expenses and other liabilities                                               (36,419)            1,001,561
      Income taxes current/deferred                                                        106,573               280,379
                                                                                         ---------             ---------
          Net Cash Provided (Used) from Operations                                      (1,028,168)            1,837,187
                                                                                         ---------             ---------

Investing Activities
     Purchase of fixed maturity investments                                             (4,469,270)           (8,036,900)
     Proceeds from maturity of fixed maturity investments                                6,355,600             6,285,500
     Purchase of equity securities - cost                                                        -            (3,243,078)
     Proceeds from sale of equity securities                                                     -             3,641,571
     Net (increase) decrease in short-term investments                                     763,854              (857,440)
     Additions to property and equipment                                                    (6,537)               (8,065)
                                                                                         ---------             ---------
          Net Cash Provided (Used) by Investing Activities                               2,643,647            (2,218,412)
                                                                                         ---------             ---------

Financing Activities
     Proceeds from issuance of common stock                                                      -               202,687
     Repurchase of common stock                                                           (509,926)                    -
     Dividends paid to shareholders                                                       (945,745)                    -
                                                                                         ----------              -------
          Net Cash Provided (Used) by Financing Activities                              (1,455,671)              202,687
                                                                                         ---------               -------

Net increase (decrease) in cash                                                            159,808              (178,538)
Cash at beginning of period                                                                105,439               277,544
                                                                                           -------               -------
          Cash at End of Period                                                           $265,247               $99,006
                                                                                           =======                ======

Supplemental Cash Flow Information
     Cash paid during the period for:
          Interest                                                                               -                $1,341
          Income taxes                                                                    $100,025            $1,175,000

</TABLE>



           See notes to unaudited consolidated financial statements.


                                       5
<PAGE>


                           UNICO AMERICAN CORPORATION
                                AND SUBSIDIARIES

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2000


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------
Nature of Business
------------------
Unico American Corporation ("Unico") is an insurance holding company.  Unico and
its  subsidiaries  (the  "Company"),  all of which are  wholly  owned,  provides
primarily in California,  property,  casualty,  health and life  insurance,  and
related premium financing.

Principles of Consolidation
---------------------------
The  accompanying   unaudited  consolidated  financial  statements  include  the
accounts of Unico American  Corporation  and its  subsidiaries.  All significant
inter-company accounts and transactions have been eliminated in consolidation.

Basis of Presentation
---------------------
The accompanying  unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles ("GAAP") for interim
financial  information  and the  instructions  to Form  10-Q and  Article  10 of
Regulation  S-X.  Accordingly,  they do not include all of the  information  and
footnotes required by GAAP for complete financial statements.  In the opinion of
management,   all  adjustments  (consisting  of  normal  recurring  adjustments)
considered  necessary  for a fair  presentation  have been  included.  Operating
results for the three and six months  ended June 30, 2000,  are not  necessarily
indicative of the results that may be expected for the year ending  December 31,
2000.  Quarterly  financial  statements  should be read in conjunction  with the
financial  statements  and related notes in the Company's  1999 Annual Report on
Form 10-K as filed with the Securities and Exchange Commission.


NOTE 2 - INCENTIVE STOCK PLANS
------------------------------
The Company's  1985 stock option plan provided for the grant of incentive  stock
options to officers and key employees. The plan covers an aggregate of 1,500,000
shares of the Company's common stock (subject to adjustment in the case of stock
splits, reverse stock splits, stock dividends, etc.). As of June 30, 2000, there
were 101,415 options outstanding and all are currently exercisable. There are no
additional options available for future grant under the 1985 plan.

The Company's 1999 Omnibus Stock Plan also provides, among other things, for the
grant of  incentive  options to officers and key  employees.  The plan covers an
aggregate of 500,000 shares of the Company's common stock (subject to adjustment
in the case of stock splits, reverse stock splits, stock dividends, etc.). As of
June 30, 2000, there were 135,000 options  outstanding  under this plan. None of
the 135,000 options  outstanding  under the 1999 stock option plan are currently
exercisable.


NOTE 3 - EARNINGS PER SHARE
---------------------------
The  following  table  represents  the  reconciliation  of  the  numerators  and
denominators of the Company's basic earnings per share and diluted  earnings per
share computations reported on the Consolidated Statements of Operations for the
three months ended June 30, 2000 and 1999, and for the six months ended June 30,
2000 and 1999:

<TABLE>
<CAPTION>
                                                         Three Months Ended              Six Months Ended
                                                               June 30                        June 30
                                                               -------                        -------
                                                         2000          1999              2000           1999
                                                         ----          ----              ----           ----
<S>                                                  <C>            <C>               <C>            <C>
Basic Earnings Per Share
------------------------
Net income numerator                                   $612,072     $1,435,128        $1,247,081     $3,466,890
                                                        =======      =========         =========      =========

Weighted average shares outstanding denominator       6,270,012      6,238,243         6,287,488      6,231,184
                                                      =========      =========         =========      =========

   Basic Earnings Per Share                               $0.10          $0.23             $0.20          $0.56

</TABLE>


                                       6
<PAGE>

                           UNICO AMERICAN CORPORATION
                                AND SUBSIDIARIES

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2000


NOTE 3 - EARNINGS PER SHARE (continued)
---------------------------------------
<TABLE>
<CAPTION>
                                                         Three Months Ended              Six Months Ended
                                                               June 30                        June 30
                                                               -------                        -------
                                                         2000          1999              2000           1999
                                                         ----          ----              ----           ----
<S>                                                  <C>            <C>               <C>            <C>
Diluted Earnings Per Share
--------------------------
Net income numerator                                   $612,072     $1,435,128        $1,247,081     $3,466,890
                                                        =======      =========         =========      =========

Weighted average shares outstanding                   6,270,012      6,238,243         6,287,488      6,231,184
Effect of diluted securities                             41,938        117,756            42,883        123,705
                                                      ---------      ---------         ---------      ---------
Diluted shares outstanding denominator                6,311,950      6,355,999         6,330,371      6,354,889
                                                      =========      =========         =========      =========

     Diluted Earnings Per Share                           $0.10          $0.23             $0.20          $0.55

</TABLE>


NOTE 4 - SEGMENT REPORTING
--------------------------
Statement of Financial Accounting Standards No. 131 (SFAS No. 131),  Disclosures
about Segments of an Enterprise and Related  Information,  became  effective for
fiscal  years  effective  after  December  15,  1997.  SFAS No. 131  establishes
standards  for the way  information  about  operating  segments  is  reported in
financial  statements.  The Company has adopted SFAS No. 131 and has  identified
its insurance company operation, Crusader Insurance Company ("Crusader"), as its
primary  reporting  segment.   Revenues  from  this  segment  comprised  82%  of
consolidated  revenues for the three and six months ended June 30, 2000,  83% of
revenues for the three months ended and 84% of revenues for the six months ended
June  30,1999.  The  Company's  remaining  operations  constitute  a variety  of
specialty insurance services,  each with unique characteristics and individually
insignificant to consolidated revenues.

<TABLE>
<CAPTION>
                                                         Three Months Ended              Six Months Ended
                                                               June 30                        June 30
                                                               -------                        -------
                                                         2000             1999           2000           1999
                                                         ----             ----           ----           ----
<S>                                                  <C>           <C>              <C>            <C>
Revenues
--------
Insurance company operation                          $7,895,769     $8,403,732       $16,109,340    $17,311,045

Other insurance operations                            4,254,558      4,218,632         8,437,907      8,520,245
Intersegment elimination (1)                         (2,470,207)    (2,530,497)       (4,937,841)    (5,138,826)
                                                      ---------      ---------         ---------      ---------
   Total other insurance operations                   1,784,351      1,688,135         3,500,066      3,381,419
                                                      ---------      ---------         ---------      ---------

     Total Revenues                                  $9,680,120    $10,091,867       $19,609,406    $20,692,464
                                                      =========     ==========        ==========     ==========

Income  Before Income Taxes
---------------------------
Insurance company operation                            $631,244     $1,778,058        $1,381,761     $4,730,165
Other insurance operations                              177,226        195,320           255,024        152,841
                                                        -------      ---------        ----------     ----------
   Total Income Before Income Taxes                    $808,470     $1,973,378        $1,636,785     $4,883,006
                                                        =======      =========         =========      =========

Assets
------
Insurance company operation                                                         $103,136,569   $102,617,974
Intersegment eliminations (2)                                                           (459,126)      (411,462)
                                                                                    ------------     ----------
     Total insurance company operation                                               102,677,443    102,206,512
Other insurance operations                                                            17,227,900     19,631,635
                                                                                    ------------    -----------
     Total Assets                                                                   $119,905,343   $121,838,147
                                                                                     ===========    ===========



(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.

</TABLE>

                                       7
<PAGE>



ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
--------------------------------------------------------------------------------
OF OPERATIONS
-------------

(a)  Liquidity and Capital Resources:
------------------------------------
Due to the nature of the Company's business  (insurance and insurance  services)
and whereas Company growth does not normally require  material  reinvestments of
profits into  property or equipment,  the cash flow  generated  from  operations
usually results in improved liquidity for the Company.

Crusader  generates a significant  amount of cash as a result of its holdings of
unearned  premium  reserves,  reserves  for loss  payments,  and its capital and
surplus.  Crusader's  loss and loss  adjustment  expense  payments  are the most
significant cash flow requirement of the Company. These payments are continually
monitored  and  projected to ensure that the Company has the  liquidity to cover
these  payments  without the need to liquidate its  investments.  As of June 30,
2000, the Company had cash and investments of  $102,600,032  (at amortized cost)
of which $94,809,714 (92%) were investments of Crusader.

As of the quarter ended June 30, 2000, the Company had invested  $96,945,700 (at
amortized cost) or 95% of its invested assets in fixed maturity obligations.  In
accordance with Statement of Financial  Accounting  Standard No. 115, Accounting
for Certain  Investments in Debt and Equity Securities,  the Company is required
to classify  its  investments  in debt and equity  securities  into one of three
categories: held-to-maturity, available-for-sale or trading securities. Although
all of the  Company's  investments  are  classified as  available-for-sale,  the
Company's  investment  guidelines  place primary  emphasis on buying and holding
high-quality investments.

The Company's  investments  in fixed maturity  obligations  of  $96,945,700  (at
amortized cost) include  $25,104,748  (26%) of pre-refunded  state and municipal
tax-exempt  bonds,  $9,927,952 (10%) of U.S.  treasury  securities,  $61,613,000
(64%) of  high-quality  industrial  and  miscellaneous  bonds,  and  $300,000 of
certificates of deposit. The tax-exempt interest income earned for the three and
six months ended June 30, 2000,  was $308,286 and  $640,681,  respectively.  The
tax-exempt  interest  income  earned for the three and six months ended June 30,
1999, was $370,326 and $778,291, respectively.

The  balance  of  the  Company's   investments  are  in  equity  securities  and
high-quality,  short-term  investments  that include a U.S.  treasury bill, bank
money  market  accounts,   certificates  of  deposit,  commercial  paper  and  a
short-term treasury money market fund.

The  Company's  investment  policy  limits  investments  in any one  company  to
$2,000,000.  This limitation  excludes bond premiums paid in excess of par value
and  U.S.  government  or  U.S.  government  guaranteed  issues.  The  Company's
investment   guidelines  on  equity   securities  limit  investments  in  equity
securities  to  an  aggregate  maximum  of  $2,000,000.  All  of  the  Company's
investments  are  high-grade   investment  quality,   all  state  and  municipal
tax-exempt  fixed  maturity   investments  are  pre-refunded   issues,  and  all
certificates of deposits are FDIC insured.

On May 19,  2000,  the  Company  paid the  fifteen-cent  ($0.15)  per share cash
dividend  that was  declared  by the Board of  Directors  on March 1,  2000,  to
shareholders of record at the close of business on April 28, 2000.

In April 2000, the Company  announced that its Board of Directors had authorized
the  repurchase  in the open market from time to time of up to an  aggregate  of
315,000  shares of the common  stock of the Company.  As of June 30,  2000,  the
Company had  purchased an  aggregate  of 80,400  shared of its common stock at a
cost of  $509,926.  These  shares  were  purchased  using  cash-on-hand  and the
proceeds from the maturities of short-term  investments.  On August 8, 2000, the
Board of Directors  authorized  the  repurchase  in the open market from time to
time of an additional 315,000 shares of the Company's common stock, bringing the
total  authorized to 630,000 shares.  On August 8, 2000, an aggregate of 304,600
shares had been repurchased at a cost of $1,950,404.

Although  material capital  expenditures may also be funded through  borrowings,
the Company  believes that its cash and short-term  investments at year end, net
of trust restriction of $3,028,551,  statutory  deposits of $2,725,000,  and the
dividend  restriction  between  Crusader and Unico plus the cash to be generated
from operations,  should be sufficient to meet its operating requirements during
the next twelve months without the necessity of borrowing funds.


                                       8
<PAGE>



ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
--------------------------------------------------------------------------------
 OF OPERATIONS (continued)
--------------------------

State of Washington Regulatory Proceeding
-----------------------------------------
In August 1999 the Insurance  Commissioner of the State of Washington  announced
that she would seek to impose a $307,000 fine,  seek repayment of policy service
fees to Washington policyholders including interest at the rate of 12% per annum
(estimated  to be  approximately  $780,000 plus interest to November 5, 2000, of
$360,000),  seek payment of all back premium  taxes owed on the subject  service
fees including appropriate penalties required for delinquent taxes (estimated to
be  approximately  $16,000  plus  penalties),  and  seek to  suspend  Crusader's
Certificate  of Authority to do business in the state of Washington for a period
of 120 days. The Insurance  Commissioner  alleges that a service fee of $250 per
policy,  which was  charged  by a  Washington  agent  after the  Company  became
admitted  in the state of  Washington,  is premium  and  subject to rate  filing
requirements  and  premium  taxes.  This  service  fee was first  charged by the
Washington  agent under his broker's license in 1992, when the Company began its
operation in Washington as a non-admitted insurer. The Company believes that the
nature  of the  service  fee did not  change  in 1995  when the  Company  became
admitted in  Washington,  and  believes  that the service fee  continued to be a
broker fee and is not subject to rate filing requirements or premium taxes.

Crusader commenced pursuit of its legal remedies,  starting with a demand for an
administrative  hearing. That administrative  hearing ended on February 7, 2000.
On  May  5,  2000,  the  administrative  hearing  officer,  an  employee  of the
Washington  Commissioner's Office, rendered her decision against the Company and
ordered that all of the sanctions previously stated be imposed. The order states
that the  $307,000  fine be paid on or before  August 5, 2000;  that  refunds to
policyholders  be completed by November 5, 2000;  that all back premium taxes on
the subject  service fees be paid on or before May 5, 2001; and that  Crusader's
Certificate  of Authority to do business in the state of Washington be suspended
from May 20, 2000,  through  September  17, 2000.  The Company and the Insurance
Commissioner  have  agreed  to a stay of the  administrative  hearing  officer's
decision  pending the outcome of the Company's  appeal in the superior court for
the state of Washington. Premium written in the state of Washington was $176,396
for the three months and  $392,815  for the six months ended June 30, 2000.  The
Company does not believe it has done anything improper and does not believe that
the  outcome  of this  matter  will  have a  materially  adverse  effect  on its
financial statements. No accruals have been made in the June 30, 2000, financial
statements for the sanctions described above,  however,  the Company has accrued
$51,000 which it estimates it will incur in the legal and administrative cost of
the appeal.

Year 2000
---------
Subsequent to December 31, 1999, the Company has not experienced adverse effects
as a result of Year 2000  issues  from  either  internal  or  external  sources.
However,  due to the  unusual  nature  of the  problem  and  lack of  historical
experience  with Year 2000 issues,  it is difficult to predict with certainty if
there  may be other  computer  or  infrastructure  problems  which may occur and
affect the  Company and its  customers  or  suppliers.  Due to the fact that the
Company has not  experienced any adverse effects of Year 2000 issues through the
date of this  report,  the  Company  does not  anticipate  it will be  adversely
materially  affected by any future Year 2000 events from its internal operations
or from others with whom the Company directly or indirectly does business.

There are no material  commitments  for capital  expenditures  as of the date of
this report.


(b)  Results of Operations:
---------------------------
All  comparisons  made in this discussion are comparing the three and six months
ended June 30, 2000,  to the three and six months  ended June 30,  1999,  unless
otherwise indicated.

The  Company's  net income  decreased  $823,056  (57%) to $612,072 for the three
months and  $2,219,809  (64%) to  $1,247,081  for the six months  ended June 30,
2000,  compared to net income of $1,435,128  for the three months and $3,466,890
for the six months ended June 30, 1999. Total revenues  decreased  $411,747 (4%)
for the three months and $1,083,058 (5%) for the six months ended June 30, 2000,
when compared to the three and six months ended June 30, 1999.

PREMIUM EARNED before reinsurance  decreased $647,673 (7%) to $8,093,893 for the
three months and decreased  $1,439,445  (8%) to  $16,210,445  for the six months
ended June 30,  2000,  compared to the three and six months ended June 30, 1999.
Intense price competition  continues to adversely affect the premium written and
earned in nearly all states that the Company does business. Although the Company
attempts to be competitive on price, it believes that maintaining adequate rates
and a favorable loss ratio is a better business strategy than increasing premium
writings at inadequate  rates.  The Company cannot determine how long this "soft
market" condition will continue.


                                       9
<PAGE>



ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
--------------------------------------------------------------------------------
OF OPERATIONS (continued)
-------------------------

PREMIUM CEDED  decreased  $184,755  (10%) to $1,614,606 for the three months and
$262,045 (8%) to $2,954,112 for the six months ended June 30, 2000,  compared to
the three and six months  ended June 30, 1999.  Although  earned  premium  ceded
decreased,  the  ratio of  earned  premium  ceded  to  earned  premium  remained
approximately  20% for the comparable three month periods and  approximately 18%
for the  comparable  six month  periods.  Earned  premium ceded consists of both
premium  ceded under the  Company's  current  reinsurance  contracts and premium
ceded to the Company's  provisionally rated reinsurance contract.  Premium ceded
under the  provisionally  rated  contract,  which was canceled on a runoff basis
effective  December 31, 1997,  is subject to  adjustment  based on the amount of
losses  ceded,  limited  by a  maximum  percentage  that can be  charged  by the
reinsurer.  The change in premium  ceded  between the  quarter and  year-to-date
periods is as follows:

                                              Three Months        Six Months
                                                  Ended              Ended
                                              June 30, 2000      June 30, 2000
                                              -------------      -------------
(Decrease) in ceded premium (excluding
    provisionally rated premium ceded)          $(135,304)         $(288,009)
 Increase (decrease) in provisionally
    rated premium ceded                          ( 49,451)            25,964
                                                  -------            -------
   Net decrease in ceded premium                $(184,755)         $(262,045)
                                                  =======            =======

PREMIUM WRITTEN before reinsurance decreased $189,891 (2%) to $8,277,451 for the
three months and decreased $644,575 (4%) to $16,548,664 for the six months ended
June 30, 2000, compared to the three and six months ended June 30, 1999.

Crusader's written premium by state is as follows:

<TABLE>
<CAPTION>
                                  Three Months Ended June 30                            Six Months Ended June 30
                                  --------------------------                            ------------------------
                                                           Increase                                              Increase
                               2000            1999       (Decrease)              2000            1999          (Decrease)
                               ----            ----        --------               ----            ----           --------
<S>                        <C>             <C>            <C>                <C>              <C>               <C>
 California                $7,073,621      $7,385,752     $(312,131)         $14,125,042      $14,792,416       $(667,374)
 Arizona                      320,552         290,930        29,622              681,050          561,447         119,603
 Washington                   176,396         197,462       (21,066)             392,815          461,340         (68,525)
 Pennsylvania                 130,324         128,164         2,160              347,477          410,466         (62,989)
 Ohio                         189,191         126,479        62,712              305,337          247,049          58,288
 Oregon                       128,794         168,803       (40,009)             278,423          389,627        (111,204)
 Montana                      175,445         130,659        44,786              256,667          217,691          38,976
 Texas                         60,083          16,889        43,194              109,148           75,735          33,413
 Nevada                        17,551           8,311         9,240               40,124            9,452          30,672
 Kentucky                       1,092          13,893       (12,801)               8,179           28,016         (19,837)
 Idaho                          4,402               -         4,402                4,402                            4,402
                            ---------       ---------       -------           ----------       ----------         -------
      Total                $8,277,451      $8,467,342     $(189,891)         $16,548,664      $17,193,239       $(644,575)
                            =========       =========       =======           ==========       ==========         =======

</TABLE>

NET INVESTMENT INCOME,  excluding realized  investment gains,  increased $38,826
(3%) to $1,514,557  for the three months and $81,724 (3%) to $3,038,714  for the
six months ended June 30, 2000,  compared to investment income of $1,475,731 for
the three months and $2,956,990 for the six months ended June 30, 1999. Although
average fixed maturity (at amortized value) and short-term investments decreased
less than one  percent,  the mix of the taxable and  tax-exempt  fixed  maturity
investments changed. Tax-exempt securities,  which generally carry a lower yield
than taxable  securities,  decreased to $25,104,748 (25% of fixed maturities) at
June 30, 2000,  compared to  $28,573,601  (29% of fixed  maturities)  as of June
30, 1999.


                                       10
<PAGE>


ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
--------------------------------------------------------------------------------
OF OPERATIONS (continued)
-------------------------

GROSS  COMMISSION  AND FEE INCOME  increased  $89,426 (6%) to $1,469,708 for the
three months and increased  $111,357 (4%) to $2,884,060 for the six months ended
June 30, 2000,  compared to the three and six months  ended June 30,  1999.  The
increase for the three and six months consisted of the following:

                                            Three Months Ended  Six Months Ended
                                               June 30, 2000      June 30, 2000
                                               -------------      -------------
Health and life insurance program                 $20,964            $66,528
Daily automobile rental insurance program          62,796             58,221
Other commission and fee income                    17,810             24,856
Service fee income                                 (5,936)            (1,557)
Workers' compensation program                      (6,208)           (36,691)
                                                   ------            -------
   Net increase in commission and fee income      $89,426           $111,357
                                                   ======            =======


LOSSES AND LOSS ADJUSTMENT  EXPENSES were 73% of net premium earned for both the
three and six months ended June 30,  2000,  compared to 59% for the three months
and 52% for the six months ended June 30, 1999.  This increase was primarily due
to an increase in reserves for losses of prior years of  approximately  $528,000
(adverse  development) in the three months and $1,031,000 (adverse  development)
in the six months ended June 30,  2000,  compared to a reduction in reserves for
losses of prior years of approximately  $373,000 (favorable  development) in the
three  months  and a  reduction  in  reserves  for  losses  of  prior  years  of
approximately  $1,855,000  (favorable  development) in the six months ended June
30, 1999.

Although  the  methodology  used by the  Company  in  determining  case and IBNR
reserves  during the six months ended June 30, 2000,  is  consistent  with prior
years, the Company is not reflecting favorable development as it did in previous
years due to uncertainty  resulting from various  settlements and/or verdicts in
excess of reserves which occurred during 1999 and the three and six months ended
June 30, 2000.

POLICY ACQUISITION COSTS consist of commissions, premium taxes, inspection fees,
and certain  other  underwriting  costs which are related to the  production  of
Crusader  insurance  policies.  These costs include both  Crusader  expenses and
allocated  expenses  of other  Unico  subsidiaries.  Crusader's  reinsurers  pay
Crusader  a  ceding  commission,  which  is  primarily  a  reimbursement  of the
acquisition cost related to the ceded premium.  Policy acquisition costs, net of
ceding  commission,  are  deferred  and  amortized  as the related  premiums are
earned. These costs were 31% of net premium earned for both the three months and
six months ended June 30, 2000,  compared to 30% of net premium  earned for both
the three months and six months ended June 30, 1999.

SALARIES AND EMPLOYEE  BENEFITS  increased  $76,253 (7%) to  $1,098,302  for the
three months and increased  $41,992 (2%) to $2,179,863  for the six months ended
June 30, 2000,  compared to salary and employee  benefits of $1,022,049  for the
three months and $2,137,871 for the six months ended June 30, 1999.

COMMISSIONS TO  AGENTS/BROKERS  increased  $1,022 (0%) to $323,667 for the three
months and increased  $16,148 (3%) to $656,795 for the six months ended June 30,
2000, compared to the three and six months ended June 30, 1999.

OTHER  OPERATING  EXPENSES  increased  $87,553  (14%) for the three  months  and
$60,093 (5%) for the six months  ended June 30, 2000,  compared to the three and
six months ended June 30, 1999. The increase was primarily due to legal expenses
related to the State of Washington regulatory proceedings.

INCOME TAX  PROVISION  decreased to 24% of income  before taxes in the three and
six months  ended June 30, 2000,  compared to 27% of income  before taxes in the
three  months and 29% in the six months  ended June 30,  1999.  This  change was
primarily due to tax-exempt interest income which comprised 38% of income before
taxes in the  three  months  and 39% in the six  months  ended  June  30,  2000,
compared  to 19% in the three  months and 16% in the six  months  ended June 30,
1999.

The effect of  inflation  on net income of the Company  during the three and six
months  ended June 30,  2000,  and the three and six months ended June 30, 1999,
was not significant.


                                       11
<PAGE>


Forward Looking Statements
--------------------------
Certain   statements   contained   herein,   including   the  section   entitled
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations,"   that  are  not  historical  facts  are  forward  looking.   These
statements,  which may be identified by forward-looking words or phrases such as
"anticipate,"  "believe,"  "expect,"  "intend,"  "may,"  "should,"  and "would,"
involve  risks and  uncertainties,  many of which are beyond the  control of the
Company.  Such risks and  uncertainties  could  cause  actual  results to differ
materially  from these  forward-looking  statements.  Factors  which could cause
actual results to differ  materially  include premium rate adequacy  relating to
competition or regulation, actual versus estimated claim experience,  regulatory
changes  or  developments,  unforeseen  calamities,  general  market  conditions
(including the  continuation  of the "soft market"  condition  referred to under
Results of  Operations),  the  Company's  ability to  introduce  new  profitable
products, the outcome of the state of Washington proceedings,  and the Company's
ability to expand geographically.


ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
-------------------------------------------------------------------
The  Company's  consolidated  balance  sheet  includes a  substantial  amount of
invested  assets whose fair values are subject to various  market risk exposures
including interest rate risk and equity price risk.

The Company's invested assets consist of the following:
<TABLE>
<CAPTION>
                                                       June 30        December 31       Increase
                                                         2000             1999         (Decrease)
                                                         ----             ----          --------
<S>                                                 <C>              <C>              <C>
Fixed maturity bonds (at amortized value)            $96,645,700      $98,942,275     $(2,296,575)
Short-term cash investments (at cost)                  5,224,915        5,968,173        (743,258)
Equity securities (at cost)                              164,170          164,170               -
Certificates of deposit (over 1 year, at cost)           300,000          200,000         100,000
                                                         -------      -----------      ----------
   Total invested assets                            $102,334,785     $105,274,618     $(2,939,833)
                                                     ===========      ===========      ==========
</TABLE>

There have been no material changes in the composition of the Company's invested
assets or market risk exposures since the end of the preceding fiscal year end.

PART II - OTHER INFORMATION

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF STOCKHOLDERS
--------------------------------------------------------
(a)  On June 1, 2000, 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  27,193
     abstentions and no broker non-votes.

            Name                         For         Against or Withheld
            ----                         ---         -------------------
     Erwin Cheldin                    5,628,577            27,193
     Lester A. Aaron                  5,625,677            27,193
     Cary L. Cheldin                  5,615,611            27,193
     George C. Gilpatrick             5,628,577            27,193
     Roger H. Platten                 5,628,577            27,193
     David A. Lewis                   5,627,577            27,193
     David E. Driscoll                5,624,165            27,193


                                       12
<PAGE>


ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits:

      Exhibit 27 - Financial Data Schedule.

(b)   Reports on Form 8-K:
      None.





                                   SIGNATURES

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 there unto authorized.

                                             UNICO AMERICAN CORPORATION



Date: August 11, 2000      By:  /s/  ERWIN CHELDIN
                                ------------------
                                Erwin Cheldin
                                Chairman of the Board, President and Chief
                                Executive Officer, (Principal Executive Officer)

Date: August 11, 2000      By:  /s/  LESTER A. AARON
                                --------------------
                                Lester A. Aaron
                                Treasurer, Chief Financial Officer, (Principal
                                Accounting and Principal Financial Officer)