| Nevada                                                                          | 95-2583928             |
|---------------------------------------------------------------------------------|------------------------|
| (State or Other Jurisdiction of                                                 |  (I.R.S. Employee |
|  Incorporation or Organization)                                            | Identification No.)    |
|                                                                            |                   |
|  23251 Mulholland Drive,  Woodland Hills, California  91364 |
|  (Address of Principal Executive Offices)  (Zip Code)                 |

| Class                                | Outstanding at November 12, 2010 |
|--------------------------------------|----------------------------------|
| Common Stock, $0 Par value per share | 5,317,054                        |

----

|                                                                                                     |   | September 30 |            |   | December 31 |   |
|----------------------------------------------------------------------------------------------------------|--------|--------------|-----------------|--------|-------------|--------|
|                                                                                                     |   | 2010         |            |   | 2009        |   |
|                                                                                                     |   | (Unaudited)  |            |   |        |   |
| ASSETS                                                                                                   |   |         |            |   |        |   |
| Investments                                                                                              |   |         |            |   |        |   |
|    Available for sale:                                                                    |   |         |            |   |        |   |
|       Fixed maturities, at fair value (amortized cost: September 30,       |   |         |            |   |        |   |
|          2010 $119,152,401; December 31, 2009 $128,440,695) |   | $            | 123,269,534     |   |        | $      | 132,595,483 |   |
|    Short-term investments, at cost                                                        |   |         | 13,950,832      |   |        |   | 9,157,832 |   |
| Total Investments                                                                                        |   |         | 137,220,366     |   |        |   | 141,753,315 |   |
| Cash                                                                                                     |   |         | 301,081         |   |        |   | 118,512 |   |
| Accrued investment income                                                                                |   |         | 669,667         |   |        |   | 763,840 |   |
| Premiums and notes receivable, net                                                                       |   |         | 4,190,598       |   |        |   | 4,364,747 |   |
| Reinsurance recoverable:                                                                                 |   |         |            |   |        |   |   |   |
|    Paid losses and loss adjustment expenses                                               |   |         | 69,137          |   |        |   | 453,314 |   |
|    Unpaid losses and loss adjustment expenses                                             |   |         | 13,537,208      |   |        |   | 16,175,863 |   |
| Deferred policy acquisition costs                                                                        |   |         | 4,530,144       |   |        |   | 4,955,636 |   |
| Property and equipment (net of accumulated depreciation)                                                 |   |         | 1,318,638       |   |        |   | 221,255 |   |
| Deferred income taxes                                                                                    |   |         | 861,099         |   |        |   | 633,191 |   |
| Other assets                                                                                             |   |         | 509,082         |   |        |   |  668,979 |   |
| Total Assets                                                                                             |   | $            | 163,207,020     |   |        | $      | 170,108,652 |   |
|                                                                                                     |   |         |            |   |        |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                     |   |
| LIABILITIES                                                                                              |   |         |            |   |        |   |   |   |
| Unpaid losses and loss adjustment expenses                                                               |   | $            | 64,149,745      |   |        | $      | 71,585,408 |   |
| Unearned premiums                                                                                        |   |         | 16,805,304      |   |        |   | 18,811,415 |   |
| Advance premium and premium deposits                                                                     |   |         | 1,148,178       |   |        |   | 1,034,052 |   |
| Accrued expenses and other liabilities                                                                   |   |         |  6,208,183 |   |        |   |  5,362,437 |   |
| Total Liabilities                                                                                        |   | $            | 88,311,410      |   |        | $      | 96,793,312 |   |
|                                                                                                     |   |         |            |   |        |   |   |   |
| STOCKHOLDERS'  EQUITY                                                                          |   |         |            |   |        |   |   |   |
| Common stock, no par – authorized 10,000,000 shares; issued and                                    |   |         |            |   |        |   |   |   |
|    outstanding shares 5,317,054 at September 30, 2010, and 5,306,204 at                   |   |         |            |   |        |   |   |   |
|    December 31, 2009                                                                      |   | $            | 3,471,087       |   |        | $      | 3,437,343 |   |
| Accumulated other comprehensive income                                                                   |   |         | 2,717,308       |   |        |   | 2,742,160 |   |
| Retained earnings                                                                                        |   |         | 68,707,215      |   |        |   | 67,135,837 |   |
| Total Stockholders’ Equity                                                                         |   | $            | 74,895,610      |   |        | $      | 73,315,340 |   |
|                                                                                                     |   |         |            |   |        |   |   |   |
| Total Liabilities and Stockholders' Equity                                                               |   | $            | 163,207,020     |   |        | $      | 170,108,652 |   |

----

|                                                           |   | Three Months Ended |      |   | Nine Months Ended |   |
|----------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                           |   | September 30       |      |   | September 30      |   |
|                                                           |   | 2010               |      |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| REVENUES                                                       |   |               |      |   |              |   |   |   |   |   |   |   |
| Insurance Company Revenues                                     |   |               |      |   |              |   |   |   |   |   |   |   |
|   Premium earned                                     |   | $                  | 8,784,025 |   |              | $      | 10,088,770 |   |   | $ | 27,135,608 |   |   | $ | 30,185,220 |   |
|   Premium ceded                                      |   |               | 1,836,956 |   |              |   | 2,336,520 |   |   |   | 5,657,678 |   |   |   | 6,950,632 |   |
|      Net premium earned               |   |               | 6,947,069 |   |              |   | 7,752,250 |   |   |   | 21,477,930 |   |   |   | 23,234,588 |   |
|   Investment income                                  |   |               | 839,403   |   |              |   | 1,011,848 |   |   |   | 2,685,061 |   |   |   | 3,379,032 |   |
|   Other income                                       |   |               | 150,004   |   |              |   | 174,490 |   |   |   | 505,289 |   |   |   | 575,028 |   |
|      Total Insurance Company Revenues |   |               | 7,936,476 |   |              |   | 8,938,588 |   |   |   | 24,668,280 |   |   |   | 27,188,648 |   |
|                                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other Revenues from Insurance Operations                       |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   Gross commissions and fees                         |   |               | 1,078,231 |   |              |   | 1,277,838 |   |   |   | 3,456,484 |   |   |   | 4,072,049 |   |
|   Investment income                                  |   |               | 752       |   |              |   | 35 |   |   |   | 2,891 |   |   |   | 1,310 |   |
|   Finance charges and fees earned                    |   |               | 69,598    |   |              |   | 86,755 |   |   |   | 236,833 |   |   |   | 279,417 |   |
|   Other income                                       |   |               | 3,757     |   |              |   | 1,196 |   |   |   | 9,174 |   |   |   | 4,659 |   |
|      Total Revenues                   |   |               | 9,088,814 |   |              |   | 10,304,412 |   |   |   | 28,373,662 |   |   |   | 31,546,083 |   |
|                                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| EXPENSES                                                       |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Losses and loss adjustment expenses                            |   |               | 4,501,433 |   |              |   | 4,931,348 |   |   |   | 14,384,197 |   |   |   | 14,353,234 |   |
| Policy acquisition costs                                       |   |               | 1,805,586 |   |              |   | 1,845,975 |   |   |   | 5,535,572 |   |   |   | 5,770,733 |   |
| Salaries and employee benefits                                 |   |               | 1,111,503 |   |              |   | 1,305,366 |   |   |   | 3,280,845 |   |   |   | 4,015,515 |   |
| Commissions to agents/brokers                                  |   |               | 153,932   |   |              |   | 251,538 |   |   |   | 516,673 |   |   |   | 860,515 |   |
| Other operating expenses                                       |   |               | 829,039   |   |              |   | 1,071,232 |   |   |   | 2,569,952 |   |   |   | 3,103,496 |   |
|      Total Expenses                   |   |               | 8,401,493 |   |              |   | 9,405,459 |   |   |   | 26,287,239 |   |   |   | 28,103,493 |   |
|                                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income Before Taxes                                            |   |               | 687,321   |   |              |   | 898,953 |   |   |   | 2,086,423 |   |   |   | 3,442,590 |   |
| Income Tax Expense                                             |   |               | 63,359    |   |              |   | 281,273 |   |   |   | 515,045 |   |   |   | 1,111,600 |   |
|      Net Income                  |   | $                  | 623,962   |   |              | $      | 617,680 |   |   | $ | 1,571,378 |   |   | $ | 2,330,990 |   |
|                                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| PER SHARE DATA:                                                |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                          |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Earnings Per Share                     |   | $                  | 0.12      |   |              | $      | 0.11 |   |   | $ | 0.30 |   |   | $ | 0.42 |   |
|     Weighted Average Shares                |   |               | 5,316,751 |   |              |   | 5,499,691 |   |   |   | 5,310,501 |   |   |   | 5,545,204 |   |
| Diluted                                                        |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Earnings Per Share                     |   | $                  | 0.12      |   |              | $      | 0.11 |   |   | $ | 0.29 |   |   | $ | 0.42 |   |
|     Weighted Average Shares                |   |               | 5,352,571 |   |              |   | 5,541,867 |   |   |   | 5,350,974 |   |   |   | 5,584,711 |   |

----

|                                                                                            |   | Three Months Ended |     |   | Nine Months Ended |   |
|-------------------------------------------------------------------------------------------------|--------|--------------------|----------|--------|-------------------|--------|
|                                                                                            |   | September 30       |     |   | September 30      |   |
|                                                                                            |   | 2010               |     |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                                                                                            |   |               |     |   |              |   |   |   |   |   |   |   |
| Net Income                                                                                      |   | $                  | 623,962  |   |              | $      | 617,680 |   |   | $ | 1,571,378 |   |   | $ | 2,330,990 |   |
| Other changes in comprehensive income, net of tax:                                              |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|      Unrealized gains (losses) on securities classified                |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|         as available-for-sale arising during the period |   |               | (137,827 | )      |              |   | 10,630 |   |   |   |  (24,852 | ) |   |   | (1,702,371 | ) |
|             Comprehensive Income    |   | $                  | 486,135  |   |              | $      | 628,310 |   |   | $ | 1,546,526 |   |   | $ | 628,619 |   |

----

|                                                                                |   | For the Nine Months Ended |          |
|-------------------------------------------------------------------------------------|--------|---------------------------|---------------|
|                                                                                |   | September 30              |          |
|                                                                                |   | 2010                      |          |   | 2009 |   |
| Cash Flows from Operating Activities:                                               |   |                      |          |   |   |   |
|    Net Income                                                        |   | $                         | 1,571,378     |   |   | $ | 2,330,990 |   |
|    Adjustments to reconcile net income to net cash from operations   |   |                      |          |   |   |   |   |   |
|       Depreciation                                    |   |                      | 96,156        |   |   |   | 146,937 |   |
|       Bond amortization, net                          |   |                      | 75,046        |   |   |   | 212,453 |   |
|    Changes in assets and liabilities                                 |   |                      |          |   |   |   |   |   |
|       Premium, notes and investment income receivable |   |                      | 268,322       |   |   |   | 376,078 |   |
|       Reinsurance recoverable                         |   |                      | 3,022,832     |   |   |   | 2,305,259 |   |
|       Deferred policy acquisition costs               |   |                      | 425,492       |   |   |   | 107,377 |   |
|       Other assets                                    |   |                      | 14,936        |   |   |   | 106,049 |   |
|       Unpaid losses and loss adjustment expenses      |   |                      | (7,435,663    | ) |   |   | (5,167,168 | ) |
|       Unearned premium                                |   |                      | (2,006,111    | ) |   |   | (310,281 | ) |
|       Advance premium and premium deposits            |   |                      | 114,126       |   |   |   | 69,856 |   |
|       Accrued expenses and other liabilities          |   |                      | (271,793      | ) |   |   | (456,983 | ) |
|       Income taxes current/deferred                   |   |                      |  (70,143 | ) |   |   | (1,198,206 | ) |
| Net Cash Used by Operating Activities                                               |   |                      | (4,195,422    | ) |   |   | (1,477,639 | ) |
|                                                                                |   |                      |          |   |   |   |   |   |
| Investing Activities                                                                |   |                      |          |   |   |   |   |   |
| Purchase of fixed maturity investments                                              |   |                      | (24,585,750   | ) |   |   | (22,651,641 | ) |
| Proceeds from maturity of fixed maturity investments                                |   |                      | 33,798,999    |   |   |   | 42,700,000 |   |
| Net (increase) in short-term investments                                            |   |                      | (4,793,000    | ) |   |   | (16,169,000 | ) |
| (Additions) to property and equipment                                               |   |                      | (76,002       | ) |   |   | (56,503 | ) |
| Net Cash Provided by Investing Activities                                           |   |                      | 4,344,247     |   |   |   | 3,822,856 |   |
|                                                                                |   |                      |          |   |   |   |   |   |
| Financing Activities                                                                |   |                      |          |   |   |   |   |   |
| Dividends paid to shareholders                                                      |   |                      | -             |   |   |   | (1,002,173 | ) |
| Proceeds from issuance of common stock                                              |   |                      | 33,744        |   |   |   | - |   |
| Repurchase of common stock                                                          |   |                      |  -       |   |   |   | (1,303,223 | ) |
| Net Cash Provided (Used) by Financing Activities                                    |   |                      | 33,744        |   |   |   | (2,305,396 | ) |
|                                                                                |   |                      |          |   |   |   |   |   |
| Net increase in cash                                                                |   |                      | 182,569       |   |   |   | 39,821 |   |
| Cash at beginning of period                                                         |   |                      | 118,512       |   |   |   | 27,710 |   |
| Cash at End of Period                                                               |   | $                         | 301,081       |   |   | $ | 67,531 |   |
|                                                                                |   |                      |          |   |   |   |   |   |
| Supplemental Cash Flow Information                                                  |   |                      |          |   |   |   |   |   |
| Cash paid during the period for:                                                    |   |                      |          |   |   |   |   |   |
| Interest                                                                            |   |                      | -             |   |   |   | - |   |
| Income taxes                                                                        |   | $                         | 583,931       |   |   | $ | 2,308,920 |   |
|                                                                                |   |                      |          |   |   |   |   |   |
| Supplemental Schedule of Non-Cash Investing Activities                              |   |                      |          |   |   |   |   |   |
| Acquisition of fixed assets                                                         |   | $                         | 1,117,537     |   |   |   | - |   |

----

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

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

| o   | Long-term certificates of deposit – The carrying amounts reported at cost in the balance sheet for these instruments approximate their fair values. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Cash and short-term investments – The carrying amounts reported at cost in the balance sheet approximate their fair values given the short-term nature of these instruments. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|                                                            |   | Nine Months Ended MonthsEnded |      |   | Year Ended  |   |
|-----------------------------------------------------------------|--------|-------------------------------|-----------|--------|-------------|--------|
|                                                            |   | September 30                  |      |   | December 31 |   |
|                                                            |   | 2010                          |      |   | 2009        |   |   | 2009 |   |
|                                                            |   |                          |      |   |        |   |   |   |   |
| Salaries and employee benefits incurred                         |   | $                             | 3,530,017 |   |        | $      | 4,015,515 |   |   | $ | 4,950,955 |   |
| Adjustment to profit sharing plan contribution                  |   |                          | (249,172  | )      |        |   | - |   |   |   | 249,172 |   |
| Salaries and benefits per Consolidated Statements of Operations |   | $                             | 3,280,845 |   |        | $      | 4,015,515 |   |   | $ | 5,200,127 |   |

|                                                     |   | Three Months Ended |      |   | Nine Months Ended |   |
|----------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                     |   | September 30       |      |   | September 30      |   |
|                                                     |   | 2010               |      |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Basic Earnings Per Share                                 |   |               |      |   |              |   |   |   |   |   |   |   |
| Net income numerator                                     |   | $                  | 623,962   |   |              | $      | 617,680 |   |   | $ | 1,571,378 |   |   | $ | 2,330,990 |   |
|                                                     |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding denominator          |   |               | 5,316,751 |   |              |   | 5,499,691 |   |   |   | 5,310,501 |   |   |   | 5,545,204 |   |
|                                                     |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|      Basic Earnings Per Share   |   | $                  | 0.12      |   |              | $      | 0.11 |   |   | $ | 0.30 |   |   | $ | 0.42 |   |
|                                                     |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Diluted Earnings per Share                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net income numerator                                     |   | $                  | 623,962   |   |              | $      | 617,680 |   |   | $ | 1,571,378 |   |   | $ | 2,330,990 |   |
|                                                     |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                      |   |               | 5,316,751 |   |              |   | 5,499,691 |   |   |   | 5,310,501 |   |   |   | 5,545,204 |   |
| Effect of dilutive securities                            |   |               | 35,820    |   |              |   | 42,176 |   |   |   | 40,473 |   |   |   | 39,507 |   |
| Diluted shares outstanding denominator                   |   |               | 5,352,571 |   |              |   | 5,541,867 |   |   |   | 5,350,974 |   |   |   | 5,584,711 |   |
|                                                     |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|      Diluted Earnings Per Share |   | $                  | 0.12      |   |              | $      | 0.11 |   |   | $ | 0.29 |   |   | $ | 0.42 |   |

----

|                                                         |   | Three Months Ended September 30 |     |   | Nine Months Ended September 30 |   |
|--------------------------------------------------------------|--------|---------------------------------|----------|--------|--------------------------------|--------|
|                                                         |   | 2010                            |     |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                         |   |                            |     |   |                           |   |   |   |   |   |   |   |
| Income tax expense incurred                                  |   | $                               | 206,336  |   |                           | $      | 281,273 |   |   | $ | 658,022 |   |   | $ | 1,111,600 |   |
| Deferred income tax adjustment                               |   |                            | (142,977 | )      |                           |   | - |   |   |   | (142,977 | ) |   |   | - |   |
| Income tax expense per consolidated statements of operations |   | $                               | 63,359   |   |                           | $      | 281,273 |   |   | $ | 515,045 |   |   | $ | 1,111,600 |   |

----

|                                               |   | Three Months Ended |       |   | Nine Months Ended |   |
|----------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                               |   | September 30       |       |   | September 30      |   |
|                                               |   | 2010               |       |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Revenues                                           |   |               |       |   |              |   |   |   |   |   |   |   |
| Insurance company operation                        |   | $                  | 7,936,476  |   |              | $      | 8,938,588 |   |   | $ | 24,668,280 |   |   | $ | 27,188,648 |   |
|                                               |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other insurance operations                         |   |               | 3,378,259  |   |              |   | 3,813,224 |   |   |   | 10,596,238 |   |   |   | 12,551,420 |   |
| Intersegment eliminations (1)                      |   |               | (2,225,921 | )      |              |   | (2,447,400 | ) |   |   | (6,890,856 | ) |   |   | (8,193,985 | ) |
|    Total other insurance operations |   |               | 1,152,338  |   |              |   | 1,365,824 |   |   |   | 3,705,382 |   |   |   | 4,357,435 |   |
|                                               |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
|    Total revenues                   |   | $                  | 9,088,814  |   |              | $      | 10,304,412 |   |   | $ | 28,373,662 |   |   | $ | 31,546,083 |   |
|                                               |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income Before Income Taxes                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Insurance company operation                        |   | $                  | 1,516,934  |   |              | $      | 1,762,019 |   |   | $ | 4,311,570 |   |   | $ | 5,698,085 |   |
| Other insurance operations                         |   |               | (829,613   | )      |              |   | (863,066 | ) |   |   | (2,225,147 | ) |   |   | (2,255,495 | ) |
|    Total income before income taxes |   | $                  | 687,321    |   |              | $      | 898,953 |   |   | $ | 2,086,423 |   |   | $ | 3,442,590 |   |

|                                                                  |   | As of        |        |
|-----------------------------------------------------------------------|--------|--------------|-------------|
|                                                                  |   | September 30 |        |   | December 31 |   |
|                                                                  |   | 2010         |        |   | 2009 |   |
| Assets                                                                |   |         |        |   |   |   |
| Insurance company operation                                           |   | $            | 141,121,505 |   |   | $ | 157,271,019 |   |
| Intersegment eliminations (2)                                         |   |         | (2,087,565  | ) |   |   | (824,887 | ) |
|      Total insurance company operation  |   |         | 139,033,940 |   |   |   | 156,446,132 |   |
|                                                                  |   |         |        |   |   |   |   |   |
| Other insurance operations                                            |   |         | 24,173,080  |   |   |   | 13,662,520 |   |
|                                                                  |   |         |        |   |   |   |   |   |
|      Total Assets                            |   | $            | 163,207,020 |   |   | $ | 170,108,652 |   |

| (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. |
|-----------------|------------------------------------------------------------------------------------------------------|

----

|                  |   | September 30, 2010 |        |   | December 31, 2009 |   |
|-----------------------|--------|--------------------|-------------|--------|-------------------|--------|
|                  |   | Carrying Value     |        |   | Fair Value        |   |   | Carrying Value |   |   | Fair Value |   |
|  Investments (*) |   | $                  | 123,269,534 |   |              | $      | 123,269,534 |   |   | $ | 132,595,483 |   |   | $ | 132,595,483 |   |

|   | * This table excludes short-term investments which are carried at amortized cost in the consolidated balance sheets and approximate their fair values given the short-term nature of these instruments. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                   |   | Level 1 |        |   | Level 2 |   |       | Level 3 |   |   | Total  |   |
|--------------------------------------------------------|--------|---------|-------------|--------|---------|--------|------------|---------|--------|--------|--------|--------|
| September 30, 2010                                     |   |    |        |   |    |   |       |    |   |   |   |   |
| Available for sale:                                    |   |    |        |   |    |   |       |    |   |   |   |   |
|   Fixed maturities                           |   |    |        |   |    |   |       |    |   |   |   |   |
|   U.S. treasury securities                   |   | $       | 92,620,016  |   |    | $      | -          |    |   | $      | -      |   |   | $ | 92,620,016 |   |
|   Certificates of deposit                    |   |    | -           |   |    |   | 26,617,998 |    |   |   | -      |   |   |   | 26,617,998 |   |
|   Industrial and miscellaneous taxable bonds |   |    | 4,031,520   |   |    |   | -          |    |   |   | -      |   |   |   | 4,031,520 |   |
|      Total fixed maturities   |   | $       | 96,651,536  |   |    | $      | 26,617,998 |    |   | $      | -      |   |   | $ | 123,269,534 |   |
|                                                   |   |    |        |   |    |   |       |    |   |   |   |   |   |   |   |   |
| December 31, 2009                                      |   |    |        |   |    |   |       |    |   |   |   |   |   |   |   |   |
| Available for sale:                                    |   |    |        |   |    |   |       |    |   |   |   |   |   |   |   |   |
|   Fixed maturities                           |   |    |        |   |    |   |       |    |   |   |   |   |   |   |   |   |
|   U.S. treasury securities                   |   | $       | 107,419,266 |   |    | $      | -          |    |   | $      | -      |   |   | $ | 107,419,266 |   |
|   Certificates of deposit                    |   |    |        |   |    |   | 21,034,997 |    |   |   | -      |   |   |   | 21,034,997 |   |
|   Industrial and miscellaneous taxable bonds |   |    | 4,141,220   |   |    |   | -          |    |   |   | -      |   |   |   | 4,141,220 |   |
|      Total fixed maturities   |   | $       | 111,560,486 |   |    | $      | 21,034,997 |    |   | $      | -      |   |   | $ | 132,595,483 |   |

----

|                                                   |   |      |        |   | Gross      |   |      | Gross      |   |   | Estimated |   |
|--------------------------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|-----------|--------|
|                                                   |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Fair      |   |
|                                                   |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Value     |   |
| September 30, 2010                                     |   |      |        |   |       |   |      |       |   |   |      |   |
| Available for sale:                                    |   |      |        |   |       |   |      |       |   |   |      |   |
|   Fixed maturities                           |   |      |        |   |       |   |      |       |   |   |      |   |
|   U.S. treasury securities                   |   | $         | 88,524,812  |   |       | $      | 4,095,413 |       |   | $      | (209      | )      |   | $ | 92,620,016 |   |
|   Certificates of deposit                    |   |      | 26,617,998  |   |       |   | -         |       |   |   | -         |   |   |   | 26,617,998 |   |
|   Industrial and miscellaneous taxable bonds |   |      | 4,009,591   |   |       |   | 21,929    |       |   |   | -         |   |   |   | 4,031,520 |   |
|      Total fixed maturities   |   | $         | 119,152,401 |   |       | $      | 4,117,342 |       |   | $      | (209      | )      |   | $ | 123,269,534 |   |
|                                                   |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
| December 31, 2009                                      |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
| Available for sale:                                    |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
|   Fixed maturities                           |   |      |        |   |       |   |      |       |   |   |      |   |   |   |   |   |
|   U.S. treasury securities                   |   | $         | 103,361,652 |   |       | $      | 4,057,614 |       |   |   | -         |   |   | $ | 107,419,266 |   |
|   Certificates of deposit                    |   |      | 21,034,997  |   |       |   | -         |       |   |   | -         |   |   |   | 21,034,997 |   |
|   Industrial and miscellaneous taxable bonds |   |      | 4,044,046   |   |       |   | 97,174    |       |   |   | -         |   |   |   | 4,141,220 |   |
|      Total fixed maturities   |   | $         | 128,440,695 |   |       | $      | 4,154,788 |       |   |   | -         |   |   | $ | 132,595,483 |   |

|                                                                                                     |   | September 30 |       |   | December 31 |   |
|----------------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|-------------|--------|
|                                                                                                     |   | 2010         |       |   | 2009        |   |
|                                                                                                     |   |         |       |   |        |   |
| Gross unrealized appreciation of fixed maturities                                                        |   | $            | 4,117,342  |   |        | $      | 4,154,788 |   |
| Gross unrealized depreciation of fixed maturities                                                        |   |         | (209       | )      |        |   | - |   |
| Net unrealized appreciation on investments                                                               |   |         | 4,117,133  |   |        |   | 4,154,788 |   |
| Deferred federal tax expense                                                                             |   |         | (1,399,825 | )      |        |   | (1,412,628 | ) |
|    Net unrealized appreciation,     net of deferred income taxes |   | $            | 2,717,308  |   |        | $      | 2,742,160 |   |

----

|                                                       |   | September 30 |       |   | December 31 |   |
|------------------------------------------------------------|--------|--------------|------------|--------|-------------|--------|
|                                                       |   | 2010         |       |   | 2009        |   |
|                                                       |   |         |       |   |        |   |
|   U.S. government money market fund              |   | $            | 1,641,994  |   |        | $      | 2,562,100 |   |
|   Bank money market accounts                     |   |         | 2,111,592  |   |        |   | 3,348,973 |   |
|   Certificates of deposit                        |   |         | 700,000    |   |        |   | 3,245,000 |   |
|   U.S. treasury bills                            |   |         | 9,495,386  |   |        |   | - |   |
|   Bank savings accounts                          |   |         | 1,860      |   |        |   | 1,759 |   |
|      Total short-term investments |   | $            | 13,950,832 |   |        | $      | 9,157,832 |   |

|                                                  |   | Three Months Ended September 30 |    |   | Nine Months Ended September 30 |   |
|-------------------------------------------------------|--------|---------------------------------|---------|--------|--------------------------------|--------|
|                                                  |   | 2010                            |    |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                                  |   |                            |    |   |                           |   |   |   |   |   |   |   |
| Fixed maturities                                      |   | $                               | 834,910 |   |                           | $      | 993,811 |   |   | $ | 2,667,268 |   |   | $ | 3,332,842 |   |
| Short-term investments                                |   |                            | 5,245   |   |                           |   | 18,072 |   |   |   | 20,684 |   |   |   | 47,500 |   |
|      Total investment income |   | $                               | 840,155 |   |                           | $      | 1,011,883 |   |   | $ | 2,687,952 |   |   | $ | 3,380,342 |   |

----

|                                      |   | Three Months Ended September 30 |      |   | Nine Months Ended September 30 |   |
|-------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|
|                                      |   |                            |      |   | Increase                       |   |   |   |   |   | Increase |   |
|                                      |   | 2010                            |      |   | 2009                           |   |   | (Decrease) |   |   | 2010 |   |   | 2009 |   |   | (Decrease) |   |
|                                      |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net premium earned                        |   | $                               | 6,947,069 |   |                           | $      | 7,752,250 |   |   | $ | (805,181 | ) |   | $ | 21,477,930 |   |   | $ | 23,234,588 |   |   | $ | (1,756,658 | ) |
|                                      |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                                     |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Losses and loss adjustment expenses       |   |                            | 4,501,433 |   |                           |   | 4,931,348 |   |   |   | (429,915 | ) |   |   | 14,384,197 |   |   |   | 14,353,234 |   |   |   | 30,963 |   |
| Policy acquisition costs                  |   |                            | 1,805,586 |   |                           |   | 1,845,975 |   |   |   | (40,389 | ) |   |   | 5,535,572 |   |   |   | 5,770,733 |   |   |   | (235,161 | ) |
|      Total       |   |                            | 6,307,019 |   |                           |   | 6,777,323 |   |   |   | (470,304 | ) |   |   | 19,919,769 |   |   |   | 20,123,967 |   |   |   | (204,198 | ) |
|                                      |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Underwriting Profit (Before Income Taxes) |   | $                               | 640,050   |   |                           | $      | 974,927 |   |   | $ | (334,877 | ) |   | $ | 1,558,161 |   |   | $ | 3,110,621 |   |   | $ | (1,552,460 | ) |

----

|                                                          |   | Three Months Ended September 30 |      |   | Nine Months Ended September 30 |   |
|---------------------------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|
|                                                          |   |  2010                      |      |   |  2009                     |   |   | Increase (Decrease) |   |   |  2010 |   |   |  2009 |   |   | Increase (Decrease) |   |
|  Losses and loss adjustment expenses:                    |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Current accident year                 |   | $                               | 4,741,432 |   |                           | $      | 5,861,811 |   |   | $ | (1,120,379 | ) |   | $ | 18,523,660 |   |   | $ | 17,044,045 |   |   | $ | 1,479,615 |   |
|  Less: favorable development of all prior accident years |   |                            | 239,999   |   |                           |   | 930,463 |   |   |   | (690,464 | ) |   |   | 4,139,463 |   |   |   | 2,690,811 |   |   |   | 1,448,652 |   |
|      Total                           |   | $                               | 4,501,433 |   |                           | $      | 4,931,348 |   |   | $ | (429,915 | ) |   | $ | 14,384,197 |   |   | $ | 14,353,234 |   |   | $ | 30,963 |   |

----

----

|                  |   | Three Months Ended September 30 |      |   | Nine Months Ended September 30 |   |
|-----------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|
|                  |   |                            |      |   |                           |   |   | Increase |   |   |   |   |   |   |   |   | Increase |   |
|                  |   | 2010                            |      |   | 2009                           |   |   | (Decrease) |   |   | 2010 |   |   | 2009 |   |   | (Decrease) |   |
|                  |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct earned premium |   | $                               | 8,784,025 |   |                           | $      | 10,088,770 |   |   | $ | (1,304,745 | ) |   | $ | 27,135,608 |   |   | $ | 30,185,220 |   |   | $ | (3,049,612 | ) |
| Earned ceded premium  |   |                            | 1,836,956 |   |                           |   | 2,336,520 |   |   |   | (499,564 | ) |   |   | 5,657,678 |   |   |   | 6,950,632 |   |   |   | (1,292,954 | ) |
| Net premium earned    |   | $                               | 6,947,069 |   |                           | $      | 7,752,250 |   |   | $ | (805,181 | ) |   | $ | 21,477,930 |   |   | $ | 23,234,588 |   |   | $ | (1,756,658 | ) |

----

|                                             |   | Three Months Ended September 30 |        |   | Nine Months Ended September 30 |   |
|--------------------------------------------------|--------|---------------------------------|-------------|--------|--------------------------------|--------|
|                                             |   | 2010                            |        |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                             |   |                            |        |   |                           |   |   |   |   |   |   |   |
| Average Invested Assets*                         |   | $                               | 134,035,452 |   |                           | $      | 141,759,987 |   |   | $ | 135,350,881 |   |   | $ | 142,996,481 |   |
| Total Investment Income                          |   | $                               | 840,155     |   |                           | $      | 1,011,883 |   |   | $ | 2,687,952 |   |   | $ | 3,380,342 |   |
| Annualized Yield on Average Invested Assets |   |                            | 2.5         | %      |                           |   | 2.9 | % |   |   | 2.6 | % |   |   | 3.2 | % |

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

|     Maturities by   Calendar Year |   | Par Value |        |   |  Amortized Cost |   |        |  Fair Value |   |   | WeightedAverage Yield |   |
|----------------------------------------------------------------------|--------|----------------|-------------|--------|----------------------|--------|-------------|------------------|--------|--------|-----------------------|--------|
|                                                                 |   |           |        |   |                 |   |        |             |   |   |                  |   |
| December 31, 2010                                                    |   | $              | 4,250,000   |   |                 | $      | 4,259,592   |             |   | $      | 4,281,520             |   |   |   | 3.0 | % |
| December 31, 2011                                                    |   |           | 48,038,998  |   |                 |   | 48,096,652  |             |   |   | 48,571,732            |   |   |   | 1.8 | % |
| December 31, 2012                                                    |   |           | 57,231,000  |   |                 |   | 57,353,345  |             |   |   | 60,281,313            |   |   |   | 3.3 | % |
| December 31, 2013                                                    |   |           | 9,348,000   |   |                 |   | 9,342,812   |             |   |   | 10,034,969            |   |   |   | 3.2 | % |
| December 31, 2015                                                    |   |           | 100,000     |   |                 |   | 100,000     |             |   |   | 100,000               |   |   |   | 1.9 | % |
|    Total                                              |   | $              | 118,967,998 |   |                 | $      | 119,152,401 |             |   | $      | 123,269,534           |   |   |   | 2.7 | % |

----

|                                                                        |   | Three Months Ended September 30 |      |   | Nine Months Ended September 30 |   |
|-----------------------------------------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|
|                                                                        |   |                            |      |   |                           |   |   |   Increase |   |   |   |   |   |   |   |   | Increase |   |
|                                                                        |   | 2010                            |      |   | 2009                           |   |   | (Decrease) |   |   | 2010 |   |   | 2009 |   |   | (Decrease) |   |
| Policy fee income                                                           |   | $                               | 490,339   |   |                           | $      | 526,035 |   |   | $ | (35,696 | ) |   | $ | 1,501,628 |   |   | $ | 1,589,682 |   |   | $ | (88,054 | ) |
| Health insurance program                                                    |   |                            | 461,701   |   |                           |   | 601,931 |   |   |   | (140,230 | ) |   |   | 1,492,189 |   |   |   | 1,962,054 |   |   |   | (469,865 | ) |
| Membership and fee income                                                   |   |                            | 52,317    |   |                           |   | 63,195 |   |   |   | (10,878 | ) |   |   | 164,601 |   |   |   | 199,631 |   |   |   | (35,030 | ) |
| Other commission and fee income                                             |   |                            | 24        |   |                           |   | 30 |   |   |   | (6 | ) |   |   | 170 |   |   |   | 673 |   |   |   | (503 | ) |
| Daily automobile rental insurance program:                                  |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Commission income (excluding contingent commission) |   |                            | 73,850    |   |                           |   | 86,647 |   |   |   | (12,797 | ) |   |   | 230,114 |   |   |   | 254,495 |   |   |   | (24,381 | ) |
|     Contingent commission                               |   |                            | -         |   |                           |   | - |   |   |   | - |   |   |   |  67,782 |   |   |   |  65,514 |   |   |   | 2,268 |   |
| Total                                                                       |   | $                               | 1,078,231 |   |                           | $      | 1,277,838 |   |   | $ | (199,607 | ) |   | $ | 3,456,484 |   |   | $ | 4,072,049 |   |   | $ | (615,565 | ) |

----

|                                                                      |   | Three Months Ended September 30 |      |   | Nine Months Ended September 30 |   |
|---------------------------------------------------------------------------|--------|---------------------------------|-----------|--------|--------------------------------|--------|
|                                                                      |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                      |   |  2010                      |      |   |  2009                     |   |   | Increase (Decrease) |   |   |  2010 |   |   |  2009 |   |   | Increase (Decrease) |   |
| Losses and loss adjustment expenses:                                 |   |                            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Current accident year                                   |   | $                               | 4,741,432 |   |                           | $      | 5,861,811 |   |   | $ | (1,120,379 | ) |   | $ | 18,523,660 |   |   | $ | 17,044,045 |   |   | $ | 1,479,615 |   |
|    Less: favorable development of all prior accident years |   |                            | 239,999   |   |                           |   | 930,463 |   |   |   | (690,464 | ) |   |   | 4,139,463 |   |   |   | 2,690,811 |   |   |   | 1,448,652 |   |
|      Total                                       |   | $                               | 4,501,433 |   |                           | $      | 4,931,348 |   |   | $ | (429,915 | ) |   | $ | 14,384,197 |   |   | $ | 14,353,234 |   |   | $ | 30,963 |   |
|  Loss and loss adjustment expense ratio                              |   |                            | 65        | %      |                           |   | 64 | % |   |   |   |   |   |   | 67 | % |   |   | 62 | % |   |   |   |   |

----

----

|                                                |   | September 30 2010 |        |   | December 31 2009 |   |        | Increase(Decrease) |   |
|-----------------------------------------------------|--------|------------------------|-------------|--------|-----------------------|--------|-------------|--------------------|--------|
|                                                |   |                   |        |   |                  |   |        |               |   |
| Fixed maturity bonds (at amortized value)           |   | $                      | 92,534,403  |   |                  | $      | 107,405,698 |               |   | $ | (14,871,295 | ) |
| Short-term cash investments (at cost)               |   |                   | 13,950,832  |   |                  |   | 9,157,832   |               |   |   | 4,793,000 |   |
| Certificates of deposit (over 1 year, at cost)      |   |                   | 26,617,998  |   |                  |   | 21,034,997  |               |   |   | 5,583,001 |   |
|                                                |   |                   |        |   |                  |   |        |               |   |   |   |   |
|      Total invested assets |   | $                      | 133,103,233 |   |                  | $      | 137,598,527 |               |   | $ | (4,495,294 | ) |

----

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

----

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