| 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,      2009 |
|-------------------------------------------|----------------------------------|
| Common      Stock, $0 Par value per share | 5,567,627                        |

----

|                                                                                                                                                                         |   | March      31 |        |   | December      31 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|------------------|--------|
|                                                                                                                                                                         |   | 2009          |        |   | 2008             |   |
|                                                                                                                                                                         |   | (Unaudited)   |        |   |             |   |
| ASSETS                                                                                                                                                                       |   |          |        |   |             |   |
| Investments                                                                                                                                                                  |   |          |        |   |             |   |
|    Available      for sale:                                                                                                                                   |   |          |        |   |             |   |
|       Fixed      maturities, at market value (amortized cost:  March      31, 2009 $130,451,606; December 31, 2008$135,540,354) |   | $             | 136,812,057 |   |             | $      | $142,971,980 |   |
|    Short-term      investments, at cost                                                                                                                       |   |          | 12,485,645  |   |             |   | 9,502,033 |   |
| Total    Investments                                                                                                                                                         |   |          | 149,297,702 |   |             |   | 152,474,013 |   |
| Cash                                                                                                                                                                         |   |          | 32,745      |   |             |   | 27,710 |   |
| Accrued      investment income                                                                                                                                               |   |          | 1,056,086   |   |             |   | 1,301,238 |   |
| Premiums      and notes receivable, net                                                                                                                                      |   |          | 5,789,949   |   |             |   | 4,680,779 |   |
| Reinsurance      recoverable:                                                                                                                                                |   |          |        |   |             |   |   |   |
|    Paid      losses and loss adjustment expenses                                                                                                              |   |          | 1,095,915   |   |             |   | 114,734 |   |
|    Unpaid      losses and loss adjustment expenses                                                                                                            |   |          | 18,726,174  |   |             |   | 19,815,573 |   |
| Deferred      policy acquisition costs                                                                                                                                       |   |          | 5,365,368   |   |             |   | 5,219,892 |   |
| Property      and equipment (net of accumulated depreciation)                                                                                                                |   |          | 359,690     |   |             |   | 359,553 |   |
| Other      assets                                                                                                                                                            |   |          | 616,635     |   |             |   |  609,484 |   |
| Total Assets                                                                                                                                                                 |   | $             | 182,340,264 |   |             | $      | 184,602,976 |   |
|                                                                                                                                                                         |   |          |        |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY                                                                                                                                    |   |
| LIABILITIES                                                                                                                                                                  |   |          |        |   |             |   |   |   |
| Unpaid      losses and loss adjustment expenses                                                                                                                              |   | $             | 75,444,670  |   |             | $      | 78,654,590 |   |
| Unearned      premiums                                                                                                                                                       |   |          | 20,704,980  |   |             |   | 19,962,118 |   |
| Advance      premium and premium deposits                                                                                                                                    |   |          | 1,630,726   |   |             |   | 1,192,553 |   |
| Income      taxes payable                                                                                                                                                    |   |          | 584,228     |   |             |   | 558,604 |   |
| Deferred      income taxes                                                                                                                                                   |   |          | 273,598     |   |             |   | 795,088 |   |
| Accrued      expenses and other liabilities                                                                                                                                  |   |          | 6,473,404   |   |             |   | 6,481,768 |   |
| Dividends      payable                                                                                                                                                       |   |          | 1,002,173   |   |             |   | - |   |
| Total    Liabilities                                                                                                                                                         |   | $             | 106,113,779 |   |             | $      | 107,644,721 |   |
|                                                                                                                                                                         |   |          |        |   |             |   |   |   |
| STOCKHOLDERS'  EQUITY                                                                                                                                              |   |          |        |   |             |   |   |   |
| Common      stock, no par – authorized 10,000,000 shares; issued and outstanding      shares 5,567,627 at                                                              |   |          |        |   |             |   |   |   |
|          March 31, 2009, and 5,574,315 at December 31, 2008                                                                                                   |   | $             | 3,565,813   |   |             | $      | $3,569,099 |   |
| Accumulated      other comprehensive income                                                                                                                                  |   |          | 4,197,898   |   |             |   | 4,904,873 |   |
| Retained      earnings                                                                                                                                                       |   |          | 68,462,774  |   |             |   | 68,484,283 |   |
| Total Stockholders’      Equity                                                                                                                                        |   | $             | 76,226,485  |   |             | $      | 76,958,255 |   |
|                                                                                                                                                                         |   |          |        |   |             |   |   |   |
| Total Liabilities and      Stockholders' Equity                                                                                                                              |   | $             | 182,340,264 |   |             | $      | 184,602,976 |   |

----

|                                                                                              |   | Three      Months Ended |          |
|---------------------------------------------------------------------------------------------------|--------|-------------------------|---------------|
|                                                                                              |   | March 31                |          |
|                                                                                              |   | 2009                    |          |   | 2008 |   |
| REVENUES                                                                                          |   |                    |          |   |   |   |
| Insurance      Company Revenues                                                                   |   |                    |          |   |   |   |
|      Premium      earned                                                 |   | $                       | 9,874,147     |   |   | $ | 11,146,946 |   |
|      Premium      ceded                                                  |   |                    | 2,254,988     |   |   |   | 2,222,180 |   |
|           Net      premium earned               |   |                    | 7,619,159     |   |   |   | 8,924,766 |   |
|      Net      investment income                                          |   |                    | 1,223,860     |   |   |   | 1,597,066 |   |
| Net      realized investment gains                                                                |   |                    | -             |   |   |   | 6,306 |   |
|      Other      income                                                   |   |                    | 204,310       |   |   |   | 114,638 |   |
|           Total      Insurance Company Revenues |   |                    | 9,047,329     |   |   |   | 10,642,776 |   |
|                                                                                              |   |                    |          |   |   |   |   |   |
| Other      Revenues from Insurance Operations                                                     |   |                    |          |   |   |   |   |   |
|      Gross      commissions and fees                                     |   |                    | 1,439,854     |   |   |   | 1,471,364 |   |
|      Investment      income                                              |   |                    | 267           |   |   |   | 25,448 |   |
|      Finance      charges and fees earned                                |   |                    | 98,875        |   |   |   | 124,521 |   |
|      Other      income                                                   |   |                    | 2,102         |   |   |   | 4,011 |   |
|           Total      Revenues                   |   |                    | 10,588,427    |   |   |   | 12,268,120 |   |
|                                                                                              |   |                    |          |   |   |   |   |   |
| EXPENSES                                                                                          |   |                    |          |   |   |   |   |   |
| Losses      and loss adjustment expenses                                                          |   |                    | 4,634,653     |   |   |   | 6,195,706 |   |
| Policy      acquisition costs                                                                     |   |                    | 1,953,859     |   |   |   | 2,080,971 |   |
| Salaries      and employee benefits                                                               |   |                    | 1,428,949     |   |   |   | 1,437,039 |   |
| Commissions      to agents/brokers                                                                |   |                    | 313,791       |   |   |   | 321,491 |   |
| Other      operating expenses                                                                     |   |                    | 709,596       |   |   |   | 786,612 |   |
|               Total Expenses                              |   |                    | 9,040,848     |   |   |   | 10,821,819 |   |
|                                                                                         |   |                    |          |   |   |   |   |   |
| Income      Before Taxes                                                                          |   |                    | 1,547,579     |   |   |   | 1,446,301 |   |
| Income      Tax Provision                                                                         |   |                    |  518,335 |   |   |   | 486,311 |   |
|              Net Income                                        |   | $                       | 1,029,244     |   |   | $ | 959,990 |   |
|                                                                                              |   |                    |          |   |   |   |   |   |
|                                                                                              |   |                    |          |   |   |   |   |   |
|                                                                                              |   |                    |          |   |   |   |   |   |
| PER SHARE DATA                                                                                    |   |                    |          |   |   |   |   |   |
| Basic                                                                                             |   |                    |          |   |   |   |   |   |
|   Earnings      Per Share                                                               |   | $                       | 0.18          |   |   | $ | 0.17 |   |
|   Weighted      Average Shares                                                          |   |                    | 5,569,256     |   |   |   | 5,625,308 |   |
|                                                                                              |   |                    |          |   |   |   |   |   |
| Diluted                                                                                           |   |                    |          |   |   |   |   |   |
|   Earnings      Per Share                                                               |   | $                       | 0.18          |   |   | $ | 0.17 |   |
|   Weighted      Average Shares                                                          |   |                    | 5,607,071     |   |   |   | 5,669,634 |   |

----

|                                                                                                                                       |   | Three      Months Ended |      |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                                                                                                       |   | March 31                |      |
|                                                                                                                                       |   | 2009                    |      |   | 2008 |   |
|                                                                                                                                       |   |                    |      |   |   |   |
| Net      Income                                                                                                                            |   | $                       | 1,029,244 |   |   | $ | 959,990 |   |
| Other      changes in comprehensive income, net of tax:                                                                                    |   |                    |      |   |   |   |   |   |
|      Unrealized      gains (losses) on securities classified as available-for-sale arising      during the period |   |                    | (706,975  | ) |   |   | 1,712,360 |   |
|             Comprehensive      Income                                          |   | $                       | 322,269   |   |   | $ | 2,672,350 |   |

----

|                                                                                            |   | Three Months Ended March 31 |           |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------|----------------|
|                                                                                            |   | 2009                        |           |   | 2008 |   |
| Cash      Flows from Operating Activities:                                                      |   |                        |           |   |   |   |
|    Net      Income                                                               |   | $                           | 1,029,244      |   |   | $ | 959,990 |   |
|    Adjustments      to reconcile net income to net cash from operations          |   |                        |           |   |   |   |   |   |
|       Depreciation                                                |   |                        | 48,917         |   |   |   | 52,985 |   |
|       Bond      amortization, net                                 |   |                        | 84,747         |   |   |   | 56,744 |   |
| Net      realized investment gains                                                              |   |                        | -              |   |   |   | (6,306 | ) |
|    Changes      in assets and liabilities                                        |   |                        |           |   |   |   |   |   |
|       Premium,      notes and investment income receivable        |   |                        | (864,018       | ) |   |   | 576,834 |   |
|       Reinsurance      recoverable                                |   |                        | 108,218        |   |   |   | 3,265,106 |   |
|       Deferred      policy acquisitions costs                     |   |                        | (145,476       | ) |   |   | 199,227 |   |
|       Other      assets                                           |   |                        | (9,345         | ) |   |   | (80,580 | ) |
|       Reserve      for unpaid losses and loss adjustment expenses |   |                        | (3,209,920     | ) |   |   | (5,644,950 | ) |
|       Unearned      premium reserve                               |   |                        | 742,862        |   |   |   | (1,195,733 | ) |
|       Funds      held as security and advanced premiums           |   |                        | 438,173        |   |   |   | 381,041 |   |
|       Accrued      expenses and other liabilities                 |   |                        | (8,364         | ) |   |   | 2,695,404 |   |
|       Income      taxes current/deferred                          |   |                        |  (129,472 | ) |   |   |  488,870 |   |
| Net Cash (Used) Provided      by  Operations                                          |   |                        | (1,914,434     | ) |   |   | 1,748,632 |   |
|                                                                                            |   |                        |           |   |   |   |   |   |
| Investing      Activities                                                                       |   |                        |           |   |   |   |   |   |
| Purchase of fixed maturity      investments                                                     |   |                        | (2,195,999     | ) |   |   | (11,185,123 | ) |
| Proceeds from maturity of fixed      maturity investments                                       |   |                        | 7,200,000      |   |   |   | 16,510,000 |   |
| Proceeds      from sale of fixed maturity investments                                           |   |                        | -              |   |   |   | 505,750 |   |
| Net (increase) in short-term      investments                                                   |   |                        | (2,983,612     | ) |   |   | (7,629,467 | ) |
| Additions to property and      equipment                                                        |   |                        | (49,054        | ) |   |   | (12,220 | ) |
| Net Cash Provided (Used) by      Investing Activities                                           |   |                        | 1,971,335      |   |   |   | (1,811,060 | ) |
|                                                                                            |   |                        |           |   |   |   |   |   |
| Financing      Activities                                                                       |   |                        |           |   |   |   |   |   |
| Repurchase of common      stock                                                                 |   |                        | (51,866        | ) |   |   | - |   |
| Net Cash Used by Financing      Activities                                                      |   |                        | (51,866        | ) |   |   | - |   |
|                                                                                            |   |                        |           |   |   |   |   |   |
| Net      increase (decrease) in cash                                                            |   |                        | 5,035          |   |   |   | (62,428 | ) |
| Cash at beginning of      period                                                                |   |                        | 27,710         |   |   |   | 108,864 |   |
| Cash at End of      Period                                                                      |   | $                           | 32,745         |   |   | $ | 46,436 |   |
|                                                                                            |   |                        |           |   |   |   |   |   |
| Supplemental      Cash Flow Information                                                         |   |                        |           |   |   |   |   |   |
| Cash paid during the period      for:                                                           |   |                        |           |   |   |   |   |   |
| Income taxes                                                                                    |   |  $                     | 650,000        |   |   |   | - |   |

----

----

|                                                        |   | Three      Months Ended |      |
|-------------------------------------------------------------|--------|-------------------------|-----------|
|                                                        |   | March 31                |      |
|                                                        |   | 2009                    |      |   | 2008 |   |
| Basic Earnings Per Share                                    |   |                    |      |   |   |   |
| Net      income numerator                                   |   | $                       | 1,029,244 |   |   | $ | 959,990 |   |
|                                                        |   |                    |      |   |   |   |   |   |
| Weighted      average shares outstanding denominator        |   |                    | 5,569,256 |   |   |   | 5,625,308 |   |
|                                                        |   |                    |      |   |   |   |   |   |
|      Basic      Earnings Per Share |   | $                       | 0.18      |   |   | $ | 0.17 |   |

| Diluted Earnings Per Share                                    |   |   |      |   |   |   |
|---------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Net      income numerator                                     |   | $      | 1,029,244 |   |   | $      | 959,990 |   |
|                                                          |   |   |      |   |   |   |   |   |
| Weighted      average shares outstanding                      |   |   | 5,569,256 |   |   |   | 5,625,308 |   |
| Effect      of diluted securities                             |   |   | 37,815    |   |   |   | 44,326 |   |
| Diluted      shares outstanding denominator                   |   |   | 5,607,071 |   |   |   | 5,669,634 |   |
|                                                          |   |   |      |   |   |   |   |   |
|      Diluted      Earnings Per Share |   | $      | 0.18      |   |   | $      | 0.17 |   |

----

|                                                                 |   | Three      Months Ended |        |
|----------------------------------------------------------------------|--------|-------------------------|-------------|
|                                                                 |   | March 31                |        |
|                                                                 |   | 2009                    |        |   | 2008 |   |
| Revenues                                                             |   |                    |        |   |   |   |
| Insurance      company operation                                     |   | $                       | 9,047,329   |   |   | $ | 10,642,776 |   |
|                                                                 |   |                    |        |   |   |   |   |   |
| Other      insurance operations                                      |   |                    | 4,653,297   |   |   |   | 4,516,229 |   |
| Intersegment      elimination (1)                                    |   |                    | (3,112,199  | ) |   |   | (2,890,885 | ) |
|    Total      other insurance operations              |   |                    | 1,541,098   |   |   |   | 1,625,344 |   |
|                                                                 |   |                    |        |   |   |   |   |   |
|    Total      Revenues                                |   | $                       | 10,588,427  |   |   | $ | 12,268,120 |   |
|                                                                 |   |                    |        |   |   |   |   |   |
| Income Before Income Taxes                                           |   |                    |        |   |   |   |   |   |
| Insurance      company operation                                     |   | $                       | 1,846,956   |   |   | $ | 2,005,177 |   |
| Other      insurance operations                                      |   |                    | (299,377    | ) |   |   | (558,876 | ) |
|      Total      Income Before Income Taxes  |   | $                       | 1,547,579   |   |   | $ | 1,446,301 |   |
|                                                                 |   |                    |        |   |   |   |   |   |
|                                                                 |   | As of                   |        |
|                                                                 |   | March      31           |        |   | December      31 |   |
|                                                                 |   | 2009                    |        |   | 2008 |   |
| Assets                                                               |   |                    |        |   |   |   |   |   |
| Insurance      company operation                                     |   | $                       | 160,525,189 |   |   | $ | 171,700,199 |   |
| Intersegment      eliminations (2)                                   |   |                    | (3,434,201  | ) |   |   | (1,658,771 | ) |
|      Total      insurance company operation |   |                    | 157,090,988 |   |   |   | 170,041,428 |   |
|                                                                 |   |                    |        |   |   |   |   |   |
| Other      insurance operations                                      |   |                    | 25,249,276  |   |   |   | 14,561,548 |   |
|                                                                 |   |                    |        |   |   |   |   |   |
|      Total      Assets                      |   | $                       | 182,340,264 |   |   | $ | 184,602,976 |   |

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

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

----

----

|                                           |   | Three Months Ended March 31 |      |
|------------------------------------------------|--------|-----------------------------|-----------|
|                                           |   | 2009                        |      |   | 2008 |   |   | Increase      (Decrease) |   |
|                                           |   |                        |      |   |   |   |   |   |   |
| Net      premium earned                        |   | $                           | 7,619,159 |   |   | $ | 8,924,766 |   |   | $ | (1,305,607 | ) |
|                                           |   |                        |      |   |   |   |   |   |   |   |   |   |
| Less:                                          |   |                        |      |   |   |   |   |   |   |   |   |   |
| Losses      and loss adjustment expenses       |   |                        | 4,634,653 |   |   |   | 6,195,706 |   |   |   | (1,561,053 | ) |
| Policy      acquisition costs                  |   |                        | 1,953,859 |   |   |   | 2,080,971 |   |   |   | (127,112 | ) |
|      Total            |   |                        | 6,588,512 |   |   |   | 8,276,677 |   |   |   | (1,688,165 | ) |
|                                           |   |                        |      |   |   |   |   |   |   |   |   |   |
| Underwriting      Profit (Before Income Taxes) |   | $                           | 1,030,647 |   |   | $ | 648,089 |   |   | $ | 382,558 |   |

----

----

----

|                                                                                                                        |   | Three Months Ended March 31 |      |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                                                                        |   |  2009                  |      |   |  2008 |   |   | Increase(Decrease) |   |
|                                                                                                                        |   |                        |      |   |   |   |   |   |   |
| Direct      earned premium                                                                                                  |   | $                           | 9,874,147 |   |   | $ | 11,146,946 |   |   | $ | (1,272,799 | ) |
|                                                                                                                        |   |                        |      |   |   |   |   |   |   |   |   |   |
| Earned      ceded premium                                                                                                   |   |                        |      |   |   |   |   |   |   |   |   |   |
|      Excluding      provisionally rated ceded premium                                              |   |                        | 2,254,988 |   |   |   | 2,295,931 |   |   |   | (40,943 | ) |
|      Provisionally      rated ceded premium                                                        |   |                        | -         |   |   |   | (73,751 | ) |   |   | 73,751 |   |
|             Total      earned ceded premium                     |   |                        | 2,254,988 |   |   |   | 2,222,180 |   |   |   | 32,808 |   |
| Ceding      commission                                                                                                      |   |                        | 668,594   |   |   |   | 689,403 |   |   |   | (20,809 | ) |
|             Earned      ceded premium, net of ceding commission |   | $                           | 1,586,394 |   |   | $ | 1,532,777 |   |   | $ | 53,617 |   |

----

|                                             |   | Three      Months Ended March 31 |        |
|--------------------------------------------------|--------|---------------------------------------|-------------|
|                                             |   | 2009                                  |        |   | 2008 |   |
|                                             |   |                                  |        |   |   |   |
| Average      Invested Assets*                    |   | $                                     | 143,989,819 |   |   | $ | 148,222,568 |   |
| Total      Investment Income                     |   | $                                     | 1,224,127   |   |   | $ | 1,622,514 |   |
| Annualized      Yield on Average Invested Assets |   |                                  | 3.4         | % |   |   | 4.4 | % |

|   | *      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, 2009                                                    |   | $              | 35,500,000  |   |           | $      | 35,602,783  |       |   | $      | 35,903,383            |   |   |   | 4.0 | % |
| December      31, 2010                                                    |   |           | 37,298,999  |   |           |   | 37,358,642  |       |   |   | 38,049,284            |   |   |   | 2.4 | % |
| December      31, 2011                                                    |   |           | 10,347,000  |   |           |   | 10,430,103  |       |   |   | 11,184,109            |   |   |   | 3.9 | % |
| December      31, 2012                                                    |   |           | 38,000,000  |   |           |   | 37,967,916  |       |   |   | 41,881,250            |   |   |   | 4.4 | % |
| December      31, 2013                                                    |   |           | 9,100,000   |   |           |   | 9,092,162   |       |   |   | 9,794,031             |   |   |   | 3.3 | % |
|    Total                                                   |   | $              | 130,245,999 |   |           | $      | 130,451,606 |       |   | $      | 136,812,057           |   |   |   | 3.6 | % |

|                |   | Fair   |      |   | Gross           |   |
|---------------------|--------|--------|-----------|--------|-----------------|--------|
|                |   | Value  |      |   | Unrealized Loss |   |
|                |   |   |      |   |            |   |
| 0-6      months     |   | $      | 2,048,520 |   |            | $      | 3,275 |   |
| 7-12      months    |   |   | 1,489,410 |   |            |   | 10,590 |   |
| Over      12 months |   |   | -         |   |            |   | - |   |
|   Total   |   | $      | 3,537,930 |   |            | $      | 13,865 |   |

----

|                                                                       |   | Three      Months Ended |      |   |     |   |
|----------------------------------------------------------------------------|--------|-------------------------|-----------|--------|----------|--------|
|                                                                       |   | March 31                |      |   | Increase |   |
|                                                                       |   | 2009                    |      |   | 2008     |   |   | (Decrease) |   |
|                                                                       |   |                    |      |   |     |   |   |   |   |
| Policy      fee income                                                     |   | $                       | 532,691   |   |     | $      | 578,858 |   |   | $ | (46,167 | ) |
| Health      insurance program                                              |   |                    | 686,942   |   |     |   | 672,458 |   |   |   | 14,484 |   |
| Membership      and fee income                                             |   |                    | 71,407    |   |     |   | 76,917 |   |   |   | (5,510 | ) |
| Other      commission and fee income                                       |   |                    | 582       |   |     |   | 997 |   |   |   | (415 | ) |
| Daily      automobile rental insurance program:                            |   |                    |      |   |     |   |   |   |   |   |   |   |
|    Commission      income (excluding contingent commission) |   |                    | 82,718    |   |     |   | 83,541 |   |   |   | (823 | ) |
|    Contingent      commission                          |   |                    | 65,514    |   |     |   | 58,593 |   |   |   | 6,921 |   |
|            Total    |   | $                       | 1,439,854 |   |     | $      | 1,471,364 |   |   | $ | (31,510 | ) |

----

|                                                                          |   | Three Months Ended March 31 |      |
|-------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                          |   |                        |      |   |   |   |   | Increase |   |
|                                                                          |   | 2009                        |      |   | 2008 |   |   | (Decrease) |   |
| Losses      and loss  adjustment expenses:                          |   |                        |      |   |   |   |   |   |   |
|   Current      accident year                                        |   | $                           | 5,341,295 |   |   | $ | 6,554,479 |   |   | $ | (1,213,184 | ) |
|   Favorable      development  of all prior accident years |   |                        | 706,642   |   |   |   | 358,773 |   |   |   | (347,869 | ) |
| Total                                                                         |   | $                           | 4,634,653 |   |   | $ | 6,195,706 |   |   | $ | (1,561,053 | ) |

----

|                                                     |   | March      31 2009 |        |   | December      31 2008 |   |        | Increase(Decrease) |   |
|----------------------------------------------------------|--------|-------------------------|-------------|--------|----------------------------|--------|-------------|--------------------|--------|
|                                                     |   |                    |        |   |                       |   |        |               |   |
| Fixed      maturity bonds (at amortized value)           |   | $                       | 127,855,607 |   |                       | $      | 135,140,354 |               |   | $ | (7,284,747 | ) |
| Short-term      cash investments (at cost)               |   |                    | 12,485,645  |   |                       |   | 9,502,033   |               |   |   | 2,983,612 |   |
| Certificates      of deposit (over 1 year, at cost)      |   |                    | 2,595,999   |   |                       |   | 400,000     |               |   |   | 2,195,999 |   |
|                                                     |   |                    |        |   |                       |   |        |               |   |   |   |   |
|      Total      invested assets |   | $                       | 142,937,251 |   |                       | $      | 145,042,387 |               |   | $ | (2,105,136 | ) |

----

|      Period             |   |  TotalNumber      ofSharesPurchased |   |   |   AveragePrice      PaidPer Share |   |    | Total      Numberof      SharesPurchased      as PartOf      PubliclyAnnounced      Plansor Programs(1) |   |   | MaximumNumber      of Sharesthat      May Yet BePurchased      Under the Plans or Programs(1) |   |
|--------------------------------------------------|--------|------------------------------------------|--------|--------|---------------------------------------------|--------|---------|---------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------|--------|
|                                             |   |                                     |   |   |                                        |   |    |                                                                                                    |   |   |                                                                                          |   |
| January      1, 2009, through January 31, 2009   |   |                                     | 5,627  |   |                                        | $      | 7.80    |                                                                                                    |   |   | 5,627                                                                                         |   |   |   | 515,467 |   |
| February      1, 2009, through February 28, 2009 |   |                                     | 1,061  |   |                                        | $      | 7.49    |                                                                                                    |   |   | 1,061                                                                                         |   |   |   | 509,840 |   |
| March      1, 2009, through March 31, 2009       |   |                                     | -      |   |                                        |   |  - |                                                                                                    |   |   | -                                                                                             |   |   |   | 508,779 |   |
|    Total                          |   |                                     | 6,688  |   |                                        | $      | 7.76    |                                                                                                    |   |   | 6,688                                                                                         |   |   |   | 508,779 |   |

|   | (1)   In      April 2000, the Company announced that its Board of Directors had      authorized the purchase in the open market from time to time of up to an      aggregate of 315,000 shares of the common stock of the      Company.  On August 8, 2000, the Board of Directors authorized      the purchase of an additional 315,000 shares and on September 6, 2000, the      Board of Directors authorized the purchase of another 315,000 shares of      the common stock of the Company in the open market from time to      time.  On December 19, 2008, the Board of Directors      authorized an additional stock repurchase program to acquire up to 500,000      shares of the Company’s common stock in the open market from time to      time.  This brought the total shares of the Company’s common      stock authorized to be repurchased to 1,445,000 shares since the year      2000.  The programs have no expiration date and may be      terminated by the Board of Directors at any time.  During the      three months ended March 31, 2009, the Company repurchased 6,688 shares of      the Company’s common stock at a cost of $51,866 of which $3,286 was      allocated to capital and $48,580 was allocated to retained      earnings.  As of March 31, 2009, under the stock repurchase      programs previously adopted by the Company, the Company had remaining      authority to repurchase up to an aggregate of 508,779 shares of common      stock.   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

----

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

|   | UNICO AMERICAN      CORPORATION |
|--------|---------------------------------|

----

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

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

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

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