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                                                                         EX 10.3

                               FIRST AMENDMENT TO
                  GENERAL SUPPORT SERVICES AND RENTAL AGREEMENT
                                   (MM&S/WULA)



         Agreement made this 1st day of January 1999 by and between WESTERN
UNITED LIFE ASSURANCE COMPANY ("WESTERN") and METROPOLITAN MORTGAGE & SECURITIES
CO., INC., ("METROPOLITAN") (hereinafter jointly referred to as the "Parties").

                                   WITNESSETH

         WHEREAS, pursuant to the terms of the GENERAL SUPPORT SERVICES AND
RENTAL AGREEMENT (the "Agreement") between the Parties, effective as of April 1,
1998, METROPOLITAN leased to WESTERN and WESTERN leased from METROPOLITAN
certain office space located at 916 W. First Avenue, Spokane, Washington;

         WHEREAS, on or about December 31, 1998, WESTERN purchased such office
space from METROPOLITAN at the current market cost of such property;

         WHEREAS, on January 1, 1999, WESTERN ceased paying rental fees to
METROPOLITAN for such office space; and

         WHEREAS, on January 1, 1999, METROPOLITAN began making rental fee
payments to WESTERN for such office space, located at 916 W. First Avenue,
Spokane, Washington.

         NOW, THEREFORE, for the foregoing reasons and in consideration of the
mutual promises, covenants and agreements set forth herein, the Parties wish to
amend the Agreement, in part, as follows:

Section 1, DESCRIPTION OF SERVICES, subsection (b) shall be replaced in its
entirety with the following:

         "B. Office Space

         WESTERN hereby leases to METROPOLITAN certain office space at 916 W.
First Avenue, Spokane, Washington. Such lease includes office furnishings and
equipment as deemed desirable by METROPOLITAN and is provided on a triple net
basis."

Section 2, MONTHLY FEES, subsection (a)(I) shall be replaced in its entirety as
follows:

         "A. General Support Services

1. WESTERN will pay to METROPOLITAN a monthly fee for general administrative
support provided by METROPOLITAN to WESTERN. METROPOLITAN will pay WESTERN a
fair market value monthly rental fee of $12.00 per square foot.

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         Notwithstanding anything to the contrary in this Agreement, the fees
for services performed as set forth in this Agreement will be fair and
reasonable, and expenses incurred and payments received will be allocated to
Western United in accordance with statutory accounting principles. The fees will
be charged initially at an estimate of cost, which fees will be adjusted to
reflect actual cost, as determined on an annual basis. Accounts shall be
rendered at quarterly intervals or more often and shall be settled within 30
days thereafter. The obligations of each party under this Agreement to transfer
payments to another party may be offset by the reciprocal obligations of such
other party so that only net amount of such servicing payments shall be required
to be transferred. Where the difference between estimates and actual costs are
determined to be less than 3%, no actual payment will be necessary. However,
this difference between the estimates and costs shall be an adjustment to the
calculation of the new estimate. Where the difference between estimates and
actual costs are determined to be greater than 3%, the account shall be settled
within 30 days thereafter."

         This Agreement is executed the day, month and year first above written
by the duly authorized officers of each Party.

METROPOLITAN MORTGAGE &                         WESTERN UNITED LIFE ASSURANCE
SECURITIES CO., INC.                            COMPANY



By  /s/ C. Paul Sandifur, Jr.                   By /s/ John Van Engelen
    -------------------------                      -----------------------
    C. Paul Sandifur, Jr.                          John Van Engelen
    Chief Executive Officer                        President