| 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)              |

----

|                                                                                                                                                                     |   | March      31 |        |   | December      31 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|------------------|--------|
|                                                                                                                                                                     |   | 2008          |        |   | 2007             |   |
|                                                                                                                                                                     |   | (Unaudited)   |        |   |             |   |
| ASSETS                                                                                                                                                                   |   |          |        |   |             |   |
| Investments                                                                                                                                                              |   |          |        |   |             |   |
|    Available      for sale:                                                                                                                               |   |          |        |   |             |   |
|       Fixed      maturities, at market value (amortized cost:  March 31, 2008      $134,111,143; December 31, 2007 $139,992,208) |   | $             | 139,608,891 |   |             | $      | 142,895,472 |   |
|    Short-term      investments, at cost                                                                                                                   |   |          | 14,985,626  |   |             |   | 7,356,159 |   |
| Total    Investments                                                                                                                                                     |   |          | 154,594,517 |   |             |   | 150,251,631 |   |
| Cash                                                                                                                                                                     |   |          | 46,436      |   |             |   | 108,864 |   |
| Accrued      investment income                                                                                                                                           |   |          | 1,227,361   |   |             |   | 1,554,741 |   |
| Premiums      and notes receivable, net                                                                                                                                  |   |          | 4,817,192   |   |             |   | 5,066,646 |   |
| Reinsurance      recoverable:                                                                                                                                            |   |          |        |   |             |   |   |   |
|    Paid      losses and loss adjustment expenses                                                                                                          |   |          | 989,571     |   |             |   | 318,186 |   |
|    Unpaid      losses and loss adjustment expenses                                                                                                        |   |          | 24,488,933  |   |             |   | 28,425,424 |   |
| Deferred      policy acquisition costs                                                                                                                                   |   |          | 5,523,620   |   |             |   | 5,722,847 |   |
| Property      and equipment (net of accumulated depreciation)                                                                                                            |   |          | 516,469     |   |             |   | 557,234 |   |
| Deferred      income taxes                                                                                                                                               |   |          | -           |   |             |   | 686,910 |   |
| Other      assets                                                                                                                                                        |   |          | 761,149     |   |             |   | 1,083,378 |   |
| Total Assets                                                                                                                                                             |   | $             | 192,965,248 |   |             | $      | 193,775,861 |   |
|                                                                                                                                                                     |   |          |        |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY                                                                                                                                |   |
| LIABILITIES                                                                                                                                                              |   |          |        |   |             |   |   |   |
| Unpaid      losses and loss adjustment expenses                                                                                                                          |   | $             | 89,085,761  |   |             | $      | 94,730,711 |   |
| Unearned      premiums                                                                                                                                                   |   |          | 21,546,879  |   |             |   | 22,742,612 |   |
| Advance      premium and premium deposits                                                                                                                                |   |          | 2,540,331   |   |             |   | 2,159,290 |   |
| Income      taxes payable                                                                                                                                                |   |          | 94,331      |   |             |   | - |   |
| Deferred      income taxes                                                                                                                                               |   |          | 186,944     |   |             |   | - |   |
| Accrued      expenses and other liabilities                                                                                                                              |   |          | 7,735,549   |   |             |   | 5,040,145 |   |
| Total    Liabilities                                                                                                                                                     |   | $             | 121,189,795 |   |             | $      | 124,672,758 |   |
|                                                                                                                                                                     |   |          |        |   |             |   |   |   |
| STOCKHOLDERS'  EQUITY                                                                                                                                          |   |          |        |   |             |   |   |   |
| Common      stock, no par – authorized 10,000,000 shares; issued and      outstanding shares 5,625,308 at March 31, 2008, and 5,625,308 at      December 31, 2007  |   | $             | 3,594,207   |   |             | $      | 3,594,207 |   |
| Accumulated      other comprehensive gain                                                                                                                                |   |          | 3,628,514   |   |             |   | 1,916,154 |   |
| Retained      earnings                                                                                                                                                   |   |          | 64,552,732  |   |             |   | 63,592,742 |   |
| Total Stockholders’      Equity                                                                                                                                    |   | $             | 71,775,453  |   |             | $      | 69,103,103 |   |
|                                                                                                                                                                     |   |          |        |   |             |   |   |   |
| Total Liabilities and      Stockholders' Equity                                                                                                                          |   | $             | 192,965,248 |   |             | $      | 193,775,861 |   |

----

|                                                                                              |   | Three      Months Ended |       |
|---------------------------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                                              |   | March 31                |       |
|                                                                                              |   | 2008                    |       |   | 2007 |   |
| REVENUES                                                                                          |   |                    |       |   |   |   |
| Insurance      Company Revenues                                                                   |   |                    |       |   |   |   |
|      Premium      earned                                                 |   | $                       | 11,146,946 |   |   | $ | 12,740,333 |   |
|      Premium      ceded                                                  |   |                    | 2,222,180  |   |   |   | 3,031,135 |   |
|           Net      premium earned               |   |                    | 8,924,766  |   |   |   | 9,709,198 |   |
|      Net      investment income                                          |   |                    | 1,597,066  |   |   |   | 1,622,290 |   |
| Net      realized investment gains                                                                |   |                    | 6,306      |   |   |   | - |   |
|      Other      income                                                   |   |                    | 114,638    |   |   |   | 9,641 |   |
|           Total      Insurance Company Revenues |   |                    | 10,642,776 |   |   |   | 11,341,129 |   |
|                                                                                              |   |                    |       |   |   |   |   |   |
| Other      Revenues from Insurance Operations                                                     |   |                    |       |   |   |   |   |   |
|      Gross      commissions and fees                                     |   |                    | 1,471,364  |   |   |   | 1,366,077 |   |
|      Investment      income                                              |   |                    | 25,448     |   |   |   | 38,025 |   |
|      Finance      charges and fees earned                                |   |                    | 124,521    |   |   |   | 148,540 |   |
|      Other      income                                                   |   |                    | 4,011      |   |   |   | 3,281 |   |
|           Total      Revenues                   |   |                    | 12,268,120 |   |   |   | 12,897,052 |   |
|                                                                                              |   |                    |       |   |   |   |   |   |
| EXPENSES                                                                                          |   |                    |       |   |   |   |   |   |
| Losses      and loss adjustment expenses                                                          |   |                    | 6,195,706  |   |   |   | 5,933,970 |   |
| Policy      acquisition costs                                                                     |   |                    | 2,080,971  |   |   |   | 1,995,580 |   |
| Salaries      and employee benefits                                                               |   |                    | 1,437,039  |   |   |   | 1,421,507 |   |
| Commissions      to agents/brokers                                                                |   |                    | 321,491    |   |   |   | 204,305 |   |
| Other      operating expenses                                                                     |   |                    | 786,612    |   |   |   | 765,252 |   |
|      Total      Expenses                                                 |   |                    | 10,821,819 |   |   |   | 10,320,614 |   |
|                                                                                              |   |                    |       |   |   |   |   |   |
| Income      Before Taxes                                                                          |   |                    | 1,446,301  |   |   |   | 2,576,438 |   |
| Income      Tax Provision                                                                         |   |                    | 486,311    |   |   |   | 854,139 |   |
|      Net      Income                                                     |   | $                       | 959,990    |   |   | $ | 1,722,299 |   |
|                                                                                              |   |                    |       |   |   |   |   |   |
|                                                                                              |   |                    |       |   |   |   |   |   |
|                                                                                              |   |                    |       |   |   |   |   |   |
| PER SHARE DATA                                                                                    |   |                    |       |   |   |   |   |   |
| Basic      Shares Outstanding                                                                     |   |                    | 5,625,308  |   |   |   | 5,595,526 |   |
| Basic      Earnings Per Share                                                                     |   | $                       | 0.17       |   |   | $ | 0.31 |   |
|                                                                                              |   |                    |       |   |   |   |   |   |
| Diluted      Shares Outstanding                                                                   |   |                    | 5,669,634  |   |   |   | 5,679,250 |   |
| Diluted      Earnings Per Share                                                                   |   | $                       | 0.17       |   |   | $ | 0.30 |   |

----

|                                                                                                                                   |   | Three      Months Ended |      |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                                                                                                   |   | March 31                |      |
|                                                                                                                                   |   | 2008                    |      |   | 2007 |   |
|                                                                                                                                   |   |                    |      |   |   |   |
| Net      Income                                                                                                                        |   | $                       | 959,990   |   |   | $ | 1,722,299 |   |
| Other      changes in comprehensive income, net of tax:                                                                                |   |                    |      |   |   |   |   |   |
|      Unrealized      gains on securities classified as available-for-sale arising during      the period |   |                    | 1,712,360 |   |   |   | 205,067 |   |
|             Comprehensive      Income                                      |   | $                       | 2,672,351 |   |   | $ | 1,927,366 |   |

----

|                                                                                            |   | Three Months Ended March 31 |          |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------|---------------|
|                                                                                            |   | 2008                        |          |   | 2007 |   |
| Cash      Flows from Operating Activities:                                                      |   |                        |          |   |   |   |
|    Net      Income                                                               |   | $                           | 959,990       |   |   | $ | 1,722,299 |   |
|    Adjustments      to reconcile net income to net cash from operations          |   |                        |          |   |   |   |   |   |
|       Depreciation                                                |   |                        | 52,985        |   |   |   | 58,208 |   |
|       Bond      amortization, net                                 |   |                        | 56,744        |   |   |   | (24,685 | ) |
| Net      realized investment gains                                                              |   |                        | (6,306        | ) |   |   | - |   |
|    Changes      in assets and liabilities                                        |   |                        |          |   |   |   |   |   |
|       Premium,      notes and investment income receivable        |   |                        | 576,834       |   |   |   | 473,642 |   |
|       Reinsurance      recoverable                                |   |                        | 3,265,106     |   |   |   | (584,232 | ) |
|       Deferred      policy acquisitions costs                     |   |                        | 199,227       |   |   |   | 174,544 |   |
|       Other      assets                                           |   |                        | (80,580       | ) |   |   | (10,392 | ) |
|       Reserve      for unpaid losses and loss adjustment expenses |   |                        | (5,644,950    | ) |   |   | (743,559 | ) |
|       Unearned      premium reserve                               |   |                        | (1,195,733    | ) |   |   | (2,439,701 | ) |
|       Funds      held as security and advanced premiums           |   |                        | 381,041       |   |   |   | 506,510 |   |
|       Accrued      expenses and other liabilities                 |   |                        | 2,695,403     |   |   |   | 1,310,921 |   |
|       Income      taxes current/deferred                          |   |                        |  488,869 |   |   |   | (795,860 | ) |
| Net Cash Provided by (Used in)      Operations                                                  |   |                        | 1,748,632     |   |   |   | (352,305 | ) |
|                                                                                            |   |                        |          |   |   |   |   |   |
| Investing      Activities                                                                       |   |                        |          |   |   |   |   |   |
| Purchase of fixed maturity      investments                                                     |   |                        | (11,185,123   | ) |   |   | (3,196,120 | ) |
| Proceeds from maturity of fixed      maturity investments                                       |   |                        | 16,510,000    |   |   |   | 6,000,000 |   |
| Proceeds      from sale of fixed maturity investments                                           |   |                        | 505,750       |   |   |   | - |   |
| Net (increase) in short-term      investments                                                   |   |                        | (7,629,467    | ) |   |   | (2,398,286 | ) |
| Additions to property and      equipment                                                        |   |                        | (12,220       | ) |   |   | (29,855 | ) |
| Net Cash Provided by (Used in)      Investing Activities                                        |   |                        | (1,811,060    | ) |   |   | 375,739 |   |
|                                                                                            |   |                        |          |   |   |   |   |   |
| Financing      Activities                                                                       |   |                        |          |   |   |   |   |   |
| Proceeds from issuance of      common stock                                                     |   |                        | -             |   |   |   | 46,250 |   |
| Net Cash Provided by Financing      Activities                                                  |   |                        | -             |   |   |   | 46,250 |   |
|                                                                                            |   |                        |          |   |   |   |   |   |
| Net      increase (decrease) in cash                                                            |   |                        | (62,428       | ) |   |   | 69,684 |   |
| Cash at beginning of      period                                                                |   |                        | 108,864       |   |   |   | 34,535 |   |
| Cash at End of      Period                                                                      |   | $                           | 46,436        |   |   | $ | 104,219 |   |
|                                                                                            |   |                        |          |   |   |   |   |   |
| Supplemental      Cash Flow Information                                                         |   |                        |          |   |   |   |   |   |
| Cash paid during the period      for:                                                           |   |                        |          |   |   |   |   |   |
| Interest                                                                                        |   |                        | -             |   |   |   | - |   |
| Income taxes                                                                                    |   |                        | -             |   |   | $ | 1,650,000 |   |

----

----

|                                        |   | Consolidated      Balance SheetFor the year ended December 31,      2007 |       |
|---------------------------------------------|--------|--------------------------------------------------------------------------|------------|
|                                        |   | As      previously reported                                              |       |   | Correction |   |   | As corrected |   |
|                                        |   |                                                                     |       |   |   |   |   |   |   |
| Deferred      income taxes                  |   | $                                                                        | 295,026    |   |   | $ | 391,884 |   |   | $ | 686,910 |   |
| Accrued      expenses and other liabilities |   | $                                                                        | 3,887,546  |   |   | $ | 1,152,599 |   |   | $ | 5,040,145 |   |
| Retained      earnings                      |   | $                                                                        | 64,353,457 |   |   | $ | (760,715 | ) |   | $ | 63,592,742 |   |

|                           |   | Consolidated      Statement of OperationFor the three months ended March 31,      2007 |      |
|--------------------------------|--------|----------------------------------------------------------------------------------------|-----------|
|                           |   | As      previously reported                                                            |      |   | Correction |   |   | As corrected |   |
|                           |   |                                                                                   |      |   |   |   |   |   |   |
| Gross      commission and fees |   | $                                                                                      | 1,315,000 |   |   | $ | 51,077 |   |   | $ | 1,366,077 |   |
| Income      tax provision      |   | $                                                                                      | 836,773   |   |   | $ | 17,366 |   |   | $ | 854,139 |   |

|            |   | Statement      of Comprehensive IncomeFor the three months ended March 31,      2007 |      |
|-----------------|--------|--------------------------------------------------------------------------------------|-----------|
|            |   | As      previously reported                                                          |      |   | Correction |   |   | As corrected |   |
|            |   |                                                                                 |      |   |   |   |   |   |   |
| Net      income |   | $                                                                                    | 1,688,588 |   |   | $ | 33,711 |   |   | $ | 1,722,299 |   |

|                                        |   | Consolidated      Statement of Cash FlowFor the three months ended March 31,      2007 |      |
|---------------------------------------------|--------|----------------------------------------------------------------------------------------|-----------|
|                                        |   | As      previously reported                                                            |      |   | Correction |   |   | As corrected |   |
|                                        |   |                                                                                   |      |   |   |   |   |   |   |
| Net      income                             |   | $                                                                                      | 1,688,588 |   |   | $ | 33,711 |   |   | $ | 1,722,299 |   |
| Accrued      expenses and other liabilities |   | $                                                                                      | 1,361,998 |   |   | $ | (51,077 | ) |   | $ | 1,310,921 |   |
| Income      taxes current/deferred          |   | $                                                                                      | (813,226  | ) |   | $ | 17,366 |   |   | $ | (795,860 | ) |

----

|                                                        |   |                    |      |
|-------------------------------------------------------------|--------|-------------------------|-----------|
|                                                        |   | Three      Months Ended |
|                                                        |   | March 31                |
|                                                        |   | 2008                    |      |   | 2007 |
| Basic Earnings Per Share                                    |   |                    |      |   |   |
| Net      income numerator                                   |   | $                       | 959,990   |   |   | $ | 1,722,299 |
|                                                        |   |                    |      |   |   |   |   |   |
| Weighted      average shares outstanding denominator        |   |                    | 5,625,308 |   |   |   | 5,595,526 |
|                                                        |   |                    |      |   |   |   |   |   |
|      Basic      Earnings Per Share |   | $                       | 0.17      |   |   | $ | 0.31 |

| Diluted Earnings Per Share                                    |   |   |      |   |   |   |
|---------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Net      income numerator                                     |   | $      | 959,990   |   |   | $      | 1,722,299 |   |
|                                                          |   |   |      |   |   |   |   |   |
| Weighted      average shares outstanding                      |   |   | 5,625,308 |   |   |   | 5,595,526 |   |
| Effect      of diluted securities                             |   |   | 44,326    |   |   |   | 83,724 |   |
| Diluted      shares outstanding denominator                   |   |   | 5,669,634 |   |   |   | 5,679,250 |   |
|                                                          |   |   |      |   |   |   |   |   |
|      Diluted      Earnings Per Share |   | $      | 0.17      |   |   | $      | 0.30 |   |

----

----

|                                                                       |   | Three      Months Ended |        |   |
|----------------------------------------------------------------------------|--------|-------------------------|-------------|--------|
|                                                                       |   | March 31                |        |   |
|                                                                       |   | 2008                    |        | 2007   |   |   |
| Revenues                                                                   |   |                    |        |   |   |   |
| Insurance      company operation                                           |   | $                       | 10,642,776  |   | $ | 11,341,129 |   |   |
|                                                                       |   |                    |        |   |   |   |   |   |
| Other      insurance operations                                            |   |                    | 4,516,229   |   |   | 4,592,300 |   |   |
| Intersegment      elimination (1)                                          |   |                    | (2,890,885  | )      |   | (3,036,377 | ) |   |
|    Total      other insurance operations                    |   |                    | 1,625,344   |   |   | 1,555,923 |   |   |
|                                                                       |   |                    |        |   |   |   |   |   |
|    Total      Revenues                                      |   | $                       | 12,268,120  |   | $ | 12,897,052 |   |   |
|                                                                       |   |                    |        |   |   |   |   |   |
| Income Before Income Taxes                                                 |   |                    |        |   |   |   |   |   |
| Insurance      company operation                                           |   | $                       | 2,005,177   |   | $ | 2,927,051 |   |   |
| Other      insurance operations                                            |   |                    | (558,876    | )      |   | (350,613 | ) |   |
|      Total      Income Before Income Taxes        |   | $                       | 1,446,301   |   | $ | 2,576,438 |   |   |
|                                                                       |   |                    |        |   |   |   |   |   |
|                                                                       |   | As of March 31          |
|                                                                       |   | 2008                    |        | 2007   |
| Assets                                                                     |   |                    |        |   |   |   |   |   |
| Insurance      company operation                                           |   | $                       | 175,559,187 |   | $ | 165,715,530 |   |
| Intersegment      eliminations (2)                                         |   |                    | (1,656,492  | )      |   | (2,018,365 | ) |
|      Total      insurance company operation  |   |                    | 173,902,695 |   |   | 163,697,165 |   |
|                                                                       |   |                    |        |   |   |   |   |   |
| Other      insurance operations                                            |   |                    | 19,062,553  |   |   | 23,953,517 |   |
|                                                                       |   |                    |        |   |   |   |   |   |
|      Total      Assets                            |   | $                       | 192,965,248 |   | $ | 187,650,682 |   |

| (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 |      |
|------------------------------------------------|--------|-----------------------------|-----------|
|                                           |   | 2008                        |      |   | 2007 |   |   | Increase      (Decrease) |   |
|                                           |   |                        |      |   |   |   |   |   |   |
| Net      premium earned                        |   | $                           | 8,924,766 |   |   | $ | 9,709,198 |   |   | $ | (784,432 | ) |
|                                           |   |                        |      |   |   |   |   |   |   |   |   |   |
| Less:                                          |   |                        |      |   |   |   |   |   |   |   |   |   |
| Losses      and loss adjustment expenses       |   |                        | 6,195,706 |   |   |   | 5,933,970 |   |   |   | 261,736 |   |
| Policy      acquisition costs                  |   |                        | 2,080,971 |   |   |   | 1,995,580 |   |   |   | 85,391 |   |
|      Total            |   |                        | 8,276,677 |   |   |   | 7,929,550 |   |   |   | 347,127 |   |
|                                           |   |                        |      |   |   |   |   |   |   |   |   |   |
| Underwriting      Profit (Before Income Taxes) |   | $                           | 648,089   |   |   | $ | 1,779,648 |   |   | $ | (1,131,559 | ) |

----

----

|                                                                                                                        |   | Three Months Ended March 31 |       |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                                                                        |   |  2008                  |       |   |  2007 |   |   | Increase(Decrease) |   |
|                                                                                                                        |   |                        |       |   |   |   |   |   |   |
| Direct      earned premium                                                                                                  |   | $                           | 11,146,946 |   |   | $ | 12,740,333 |   |   | $ | (1,593,387 | ) |
|                                                                                                                        |   |                        |       |   |   |   |   |   |   |   |   |   |
| Earned      ceded premium                                                                                                   |   |                        |       |   |   |   |   |   |   |   |   |   |
|      Excluding      provisionally rated ceded premium                                              |   |                        | 2,295,931  |   |   |   | 3,025,989 |   |   |   | (730,058 | ) |
|      Provisionally      rated ceded premium                                                        |   |                        | (73,751    | ) |   |   | 5,146 |   |   |   | (78,897 | ) |
|             Total      earned ceded premium                     |   |                        | 2,222,180  |   |   |   | 3,031,135 |   |   |   | (808,955 | ) |
| Ceding      commission                                                                                                      |   |                        | 689,403    |   |   |   | 928,573 |   |   |   | (239,170 | ) |
|             Earned      ceded premium, net of ceding commission |   | $                           | 1,532,777  |   |   | $ | 2,102,562 |   |   | $ | (569,785 | ) |

----

|                                                        |   | Three Months Ended March 31 |        |
|-------------------------------------------------------------|--------|-----------------------------|-------------|
|                                                        |   | 2008                        |        |   | 2007 |   |
|                                                        |   |                        |        |   |   |   |
| Average      Invested Assets*                               |   | $                           | 148,222,568 |   |   | $ | 147,121,880 |   |
| Total      Investment Income                                |   | $                           | 1,622,514   |   |   | $ | 1,660,315 |   |
| Annualized      Yield on  Average      Invested Assets |   |                        | 4.4         | % |   |   | 4.5 | % |

|   | *      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, 2008                                                    |   | $              | 50,850,000  |   |           | $      | 50,975,824  |       |   | $      | 51,482,246            |   |   |   | 4.3 | % |
| December      31, 2009                                                    |   |           | 32,700,000  |   |           |   | 32,737,838  |       |   |   | 33,864,881            |   |   |   | 4.8 | % |
| December      31, 2010                                                    |   |           | 5,100,000   |   |           |   | 5,098,924   |       |   |   | 5,112,100             |   |   |   | 1.8 | % |
| December      31, 2011                                                    |   |           | 7,250,000   |   |           |   | 7,236,259   |       |   |   | 7,865,437             |   |   |   | 4.6 | % |
| December      31, 2012                                                    |   |           | 38,000,000  |   |           |   | 37,958,249  |       |   |   | 41,178,610            |   |   |   | 4.4 | % |
| December      31, 2013                                                    |   |           | 100,000     |   |           |   | 104,049     |       |   |   | 105,617               |   |   |   | 2.7 | % |
|    Total                                                   |   | $              | 134,000,000 |   |           | $      | 134,111,143 |       |   | $      | 139,608,891           |   |   |   | 4.4 | % |

----

|                                                                       |   | Three      Months Ended |      |   |     |   |
|----------------------------------------------------------------------------|--------|-------------------------|-----------|--------|----------|--------|
|                                                                       |   | March 31                |      |   | Increase |   |
|                                                                       |   | 2008                    |      |   | 2007     |   |   | (Decrease) |   |
|                                                                       |   |                    |      |   |     |   |   |   |   |
| Policy      fee income                                                     |   | $                       | 578,858   |   |     | $      | 649,639 |   |   | $ | (70,781 | ) |
| Health      insurance program                                              |   |                    | 672,458   |   |     |   | 501,043 |   |   |   | 171,415 |   |
| Membership      and fee income                                             |   |                    | 76,917    |   |     |   | 77,144 |   |   |   | (227 | ) |
| Other      commission and fee income                                       |   |                    | 997       |   |     |   | 6,936 |   |   |   | (5,939 | ) |
| Daily      automobile rental insurance program:                            |   |                    |      |   |     |   |   |   |   |   |   |   |
|    Commission      income (excluding contingent commission) |   |                    | 83,541    |   |     |   | 84,776 |   |   |   | (1,235 | ) |
|    Contingent      commission                               |   |                    | 58,593    |   |     |   | 46,539 |   |   |   | 12,054 |   |
|            Total    |   | $                       | 1,471,364 |   |     | $      | 1,366,077 |   |   | $ | 105,287 |   |

----

----

|                                                     |   | March      31 2008 |        |   | December      31 2007 |   |        | Increase(Decrease) |   |
|----------------------------------------------------------|--------|-------------------------|-------------|--------|----------------------------|--------|-------------|--------------------|--------|
|                                                     |   |                    |        |   |                       |   |        |               |   |
| Fixed      maturity bonds (at amortized value)           |   | $                       | 133,711,143 |   |                       | $      | 139,592,208 |               |   | $ | (5,881,065 | ) |
| Short-term      cash investments (at cost)               |   |                    | 14,985,626  |   |                       |   | 7,356,159   |               |   |   | 7,629,467 |   |
| Certificates      of deposit (over 1 year, at cost)      |   |                    | 400,000     |   |                       |   | 400,000     |               |   |   | - |   |
|      Total      invested assets |   | $                       | 149,096,769 |   |                       | $      | 147,348,367 |               |   | $ | 1,748,402 |   |

----

| 10.1 | Employment      Agreement effective December 15, 2007, by and between the Registrant and      Cary L. Cheldin. (Incorporated herein by reference to Exhibit 10.1 to      Registrant's Current Report on Form 8-K filed on March 21,      2008) |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Employment      Agreement effective December 15, 2007, by and between the Registrant and      Lester A. Aaron. (Incorporated herein by reference to Exhibit 10.2 to      Registrant's Current Report on Form 8-K filed on March 21,      2008) |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|

----

| 10.1 | Employment      Agreement effective December 15, 2007, by and between the Registrant and      Cary L. Cheldin. (Incorporated herein by reference to Exhibit 10.1 to      Registrant's Current Report on Form 8-K filed on March 21,      2008) |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.2 | Employment      Agreement effective December 15, 2007, by and between the Registrant and      Lester A. Aaron. (Incorporated herein by reference to Exhibit 10.2 to      Registrant's Current Report on Form 8-K filed on March 21,      2008) |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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) |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|