SECURITIES AND EXCHANGE COMMISSION
                    Washington, DC 20549
                          FORM 10-Q
         Quarterly Report Under Section 13 or
           15(d) of the Securities Exchange Act
           of 1934
          
          
          
          
          
For Quarter Ended      March 31, 1997
Commission
file number       0-2650


         Washington Security Life Insurance Company
              F/K/A Frontier Insurance Company
   (exact name of registrant as specified in its charter)


                               Missouri                       44-0666926_____
               (State or other jurisdiction of             (IRS Employer ID )
               incorporation or organization)
              
              
              
             916 Sherwood Drive  Lake Bluff, IL                   60044
          (Address of principal executive offices)             (Zip Code)
                        
Registrant's telephone number, including area code          (847) 615-9255
                         
                         
      Indicate by check mark whether the registrant (1) has filed all reports
required to  be  filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the  preceding 12  months (or for shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.


     YES  X                   NO


      The Company had 1,104,882 shares of $1 par value stock outstanding at
 March 31, 1997.







               PART I - FINANCIAL INFORMATION
                Item 1.  Financial Statements


         WASHINGTON SECURITY LIFE INSURANCE COMPANY











              WASHINGTON SECURITY LIFE INSURANCE COMPANY BALANCE SHEETS
                                 ASSETS                                       
                              (UNAUDITED)
                                                                           
                                                                           
                                                                           
                                       March 31,   December 31,
                                         1997           1996
INVESTMENTS
                                                                           
       Mortgage loans on real estate      $0           $123            
               
          US Governement bonds       600,000        600,000            
     
       Short-term investments        609,306        609,043            
             Total investments   $1,209,306      $1,209,166
                                                                           
CASH                                 246,721         21,893
                                                                           
ACCRUED INCOME                        26,783         11,610
                                                                           
ACCOUNTS AND NOTES RECEIVABLE          3,000
                                                                           
PROPERTY AND EQUIPMENT - NET                        345,200
                                                                           
OTHER ASSETS                                         12,337
                                                                           
TOTAL ASSETS                      $1,485,810     $1,600,206
                                                                            



























                     WASHINGTON SECURITY LIFE INSURANCE COMPANY
                                BALANCE SHEETS
                       LIABILITIES AND STOCKHOLDERS' EQUITY             
                                (UNAUDITED)
                                                                          
                                                                          
                                                                          
                                                                          
                                                                          
                                          March 31, 1997   December 31, 1996   
                                                                              
                                                                          
LIABILTIES
                                                                          
       Mortgage and other notes payable            0            81,165
       Other liabilities                      20,782            32,618
                                             $20,782          $113,783
                                                                          
                                                                          
STOCKHOLDERS' EQUITY
      Common stock, $1 par value:                                 
      authorized 3,000,000 shares,
      1,104,882 shares issued
      and outstanding                    $1,104,882        $1,104,882
                                                                          
      Additional paid-in capital          2,920,082         2,920,082
      Surplus Notes                         200,000           200,000
      (Deficit)                          (2,759,936)       (2,738,541)
      Capital and Surplus                $1,465,028        $1,486,423     
                                                                          
      Total liabilities and equity       $1,485,810        $1,600,206








                  WASHINGTON SECURITY LIFE INSURANCE COMPANY        
                                 STATEMENTS OF INCOME
                                 (UNAUDITED)
                                                                               
                                                                               
                                                                               
                                                                               
                                                                               
                                                                               
                                                                               
                                                Three Months Ended
                                                       March 31,
                                               1997            1996            
                                                                               
REVENUES                                                                       
           Net investment income         $    45,518       $  39,879          
                                                                               
Other revenues                                     0               0   

                                         $    45,518       $  39,879
                                                                               
BENEFITS,CLAIMS AND EXPENSES                  
  Benefits and claims                                      $ (23,528)
                                                                               
                                                                               
 Underwriting, aquisitions, insurance
 and administrative expenses                  58,012          60,964          

                                        $     58,012       $  37,436
                                                                               
GAIN (LOSS) BEFORE FEDERAL INCOME TAXES $    (12,494)      $   2,443
                                                                               
PROVISION FOR INCOME TAXES (REFUND)                0               0
NET GAIN (LOSS)                         $     (12,494)     $   2,443
                                                                               
PAID IN SURPLUS (SURPLUS NOTES)                            $ 200,000
                                                                               
                                                                               
                                                                               
NET GAIN (LOSS) PER SHARE                     (0.01)           0.02
                                                                               
WEIGHTED AVERAGE NUMBER OF
SHARES OF COMMON STOCK                  $1,104,882         $1,104,882



                                                                        
                                                                               
                            WASHINGTON SECURITY LIFE INSURANCE COMPANY
                            STATEMENTS OF CASH FLOWS
                            (UNAUDITED)
                                                                              
                                                                              
                                                    Three                   
                                                    Months Ended
                                                    March                     
                                                     31,
                                              1997           1996             
CASH FLOWS FROM OPERATING ACTIVITIES
                                                                              
       Net investment income and other      $30,345        $52,916
       Benefits and claims                                 (23,528)
                                                                              
       Underwriting, insurance and
       administrative expenses              (50,045)       (44,090)
                                                                             
       Net cash provided by (used in)                                       
       operating activities                $(19,700)      $(14,702)
                                                                              
CASH FLOWS FROM INVESTING ACTIVITIES
       Proceeds from the sale and maturity
       of investments                      $259,024       $    546
       Purchase of investments                                   0
       Purchase of property and
       equipment                            (14,213)        (2,973)
       Other                                    (20)           (12)
       Additional surplus contributions                    100,000
                                                                             
       Net cash provided by (used in)                                 
       investment activities              $244,791        $ 82,859

INCREASE (DECREASE) IN CASH               $225,091        $ 82,859
                                                                              
CASH, BEGINNING OF PERIOD                 $630,936        $675,556
                                                                              
CASH, END OF PERIOD                       $856,027        $758,415             




                   FINANCIAL STATEMENTS
                       MARCH 31, 1997

               PART I - FINANCIAL INFORMATION

Item 2. Management Discussion and Analysis of
Financial Condition and Results of Operations
                       March 31, 1997
                      
                      
                      
                      
Liquidity and Capital

      The  current liquidity of Registrant remains dependent on its
investment income. This has been improved through the disposition of
non-revenue producing assets and the liquidation of its investments in
real estate.   Cash flow from new investments in US Government Guaranteed
Securities enhances operations.
      Registrant received an increase in capital and surplus by the sale of
surplus notes ($200,000) and the sale of a non-admissible asset ($250,000)
during 1996. Registrant is still intent on seeking other sources for
increasing capital and surplus.

Operations

      Registrant remains in a dormant state with regards to its insurance
operations. It incurred a statutory net loss of $12,494 for the three months
ended March 31, 1997, compared to a net gain of $2,443 for the same period
in 1996.

      The increase in "Cash" and the increase in "Accrued Income" as of
March 31, 1997 are the direct result of the sale of the real estate acquired
in 1996 in exchange for debt paper of Registrant's former parent,
International Mercantile Corporation.

      The changes in "Accounts and Notes Receivable" and
"Property and Equipment" are attributable to the sale of
(A) the property received in exchange for the collateral loan and
(B) the building which had served as Registrant's Home Office.

      The decrease in "Other Assets" is the result of the sale of the
partnership oil venture for cash.

     Since the Registrant currently has no policyholders and since the
Registrant is no longer a part of a holding company system, these unaudited
financial numbers are compared on a statutory basis which now corresponds
with GAAP.









                PART II - OTHER INFORMATION
                            
                            
                            
                            
Item 1.        LEGAL PROCEEDINGS




      Administrative Actions Taken by State Department of Insurance




      Since 1994, Registrant has agreed to refrain from soliciting new
business in its state of domicile, Missouri, and all states where it is
otherwise licensed to operate. This will continue indefinitely and until
sufficient new capital/surplus funds have been acquired to re-qualify
the company to operate in Missouri and other states.




     SEC Investigation
      On May 14, 1993, Registrant's executive officers were advised by
officials of the Enforcement Division of the United States Securities and
Exchange Commission (the "Commission"), that an informal investigation of
Registrant, International Mercantile Corporation (IMC) and Universal Life
Holding Corporation (ULHC) was being conducted by the Commission.
      Following extensive investigation and testimony, the Commission
notified the Registrant by letter dated October 11, 1995 that the staff of
the Division of Enforcement intended to recommend filing a civil injunctive
action in Federal District Court against Registrant and its affiliates, 
IMC and ULHC, for violating Sections 10(b), 14(a), 13(a), 13(b)(2)(A) and (B)
of the Securities Exchange Act of 1934 and Rules 10b-5, 13a-1, 13a-13 and
12b-20 thereunder.

      The matter was resolved by the Registrant's written acceptance of
certain prohibitions and injunctions against further violations.  No penalites
were assessed.



Bruce and Bruce v. The CJ Brown Corporation, et al


      On March 2, 1995, Robert E. Bruce and William D. Bruce filed a
Complaint in the United States District Court, Western District of Missouri,
Western Division, seeking a declaratory judgment releasing them of any
liabilities which they might have under a certain Agreement dated
August 25, 1994, entered into by the CJ Brown Corporation, Life America
Corporation (LAC), Ronald T. Benitez, 1122 Corporation and the plaintiffs.
That Agreement, to which neither Registrant nor any of its affiliates was a
party, set forth a series of transactions by which plaintiffs were to acquire
a controlling interest of Registrant and its affiliates.
The Missouri Department of Insurance had denied the plaintiffs' request for
a "Form A" approval of the change of control of Registrant through an
acquisition by plaintiffs of controlling interest in IMC.  Plaintiffs
maintained that the Missouri Department of Insurance's disapproval for
their Form A Application resulted in an extinction of their obligations under
the agreement of August 25, 1994.

      The  parties agreed to binding arbitration under the auspices of the 
United States District Court, Western District of Missouri, Western Division. 
As a result the case was dismissed in August 1996.



     The Ventana Corporation, et al. v. William D. Bruce et al


      In a petition for Breach of Contract,  Damages and Specific Performance
filed in the 19th Judicial Circuit for the Parish of East Baton Rouge,
Louisiana, on March 10, 1995 the Ventana Corporation (formerly  CJ Brown
Corporation) filed an action against William D. Bruce, Robert E.  Bruce and 
IMC seeking damages for a breach of the agreement of August 25, 1994.

      The parties agreed to binding arbitration under the auspices of the
United States District Court, Western District of Missouri, Western Division.
As a result the case was dismissed in August 1996.

In re:  The Ventana Corporation a/k/a The CJ Brown Corporation

     On March 17, 1995, IMC and Home America Company, a then subsidiary of
Registrant, filed an involuntarybankruptcy petition against the Ventana
Corporation, formerly known as The CJ Brown Corporation.  Ronald Brignac,
a former director of Registrant, was the third creditor.

     This litigation also was included in the Bruce vs. Brown and Ventana vs.
Bruce cases for binding arbitration. As a result the case was dismissed in
August 1996.



Jesse  E.  LeBlanc, II and Ocean Sailing Corporation versus Frontier Insurance
Company,  The  CJ  Brown Corporation and Ronald  T. Benitez 

Civil District Court for the Parish of Orleans, State of Louisiana, 
No. 94-1168, Division  "J".  This action was brought seeking damages for the
alleged wrongful taking of corporate stock of Travel America, Inc., which 
stock was pledged to secure a loan from the Company which subsequently went
into default.  Pursuant to related proceedings initiated by the Registrant,
the subject corporate stock was seized and sold pursuant to court order. 
This action effectively sought to collaterally attach that prior judicial
holding.  An exception based upon the prior action was asserted in this
proceeding, and was denied. Subsequently, prior to the filing of an answer,
plaintiff sought to obtain a default judgment in this case.  Prior to the
default judgment becoming final, a timely motion for new trial  was  filed,
the effect of which was to preclude any enforcement of the default judgment.  
The trial court declined to act on the motion for a new trial, as a result of
which application for supervisory writs was submitted to the Louisiana
Fourth Circuit Court of Appeals.

      The Court of Appeals reversed the trial court's decision and ordered
that the Registrant be dismissed.


As of March 31, 1997, Registrant had no litigation in process and is not
aware of any actions threatened.




                PART II - OTHER INFORMATION
                            
                            
                            
                            
Items.       Other Information


        On November 17, 1995, Registrant's parent, International Mercantile
Corporation (IMC) conveyed all of its shares of Registrant to Robert E. Bruce
and William D. Bruce in exchange for cancellation of: an IMC  promissory note
held by the Bruces; and a consulting agreement with the Bruces.  A concurrent
agreement was entered into by IMC and Registrant whereby IMC acquired
Registrant's subsidiary, Home America Corporation, plus a mortgage loan in
return for a $600,000 loan collateralized by the Home America stock and other
assignments.

      On December 20, 1995, the Bruces made a new Form A Application to the
Missouri Department of Insurance for control of Registrant.  This application
was approved on May 23,  1996,  following a $200,000 cash purchase of surplus
notes and a $250,000 cash purchase of a non- admissible asset of Registrant
by the Bruces that collectively served to make Registrant's capital and
surplus exceed $1,400,000.

      The collateralized loan agreement between IMC and Registrant was
amended in April 1996.   The amendment terminated the loan in exchange for 
title to certain property of Home America known as Staring Lane. Staring
Lane was sold for cash in March 1997.



Item 6.        Exhibits and Reports on Form 8-K
     Nothing additional to report.


                        SIGNATURES
                            
                            
                            
                            
                            
                            
     Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



               WASHINGTON SECURITY LIFE INSURANCE COMPANY

DATE: May 13, 1997                           W. D. Bruce, President
                                            
                                            
                                            
                                            
DATE: May 13, 1997                            R. E. Bruce, Secretary