UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB
                                  May 14, 1998


                      For the quarter ended: March 31, 1998

                         Commission file number: 0-26322


                                    IAC, Inc.


                              a Nevada corporation
                              IRS Number 88-0303769


                  714 "C" Street, San Rafael, California 94901

                                 (800) 554-1250





Check whether issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such 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 __





                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 4,401,578 shares.

Transitional Small Business Disclosure Format (Check one):  Yes ___     No _X_


<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.


                                    IAC, Inc.
                                  BALANCE SHEET
                                 March 31, 1998
                                   (Unaudited)

                                    ASSETS
CURRENT ASSETS
Cash in bank
Prepaid expense                                      --------------------
TOTAL CURRENT ASSETS                                 --------------------

OTHER ASSETS
Organizational costs, net of amortization              $         1,429
                                                     --------------------
                                                                 1,429
                                                     --------------------

TOTAL ASSETS                                           $         1,429
                                                     ====================


                            LIABILITIES AND EQUITY

CURRENT LIABILITIES
Accounts payable                                        $        4,982
                                                     --------------------
TOTAL CURRENT LIABILITIES                               $        4,982
                                                     --------------------


STOCKHOLDERS' EQUITY
Preferred stock, no par value, 5,000,000                         2,500
shares authorized; 630,000 outstanding
Capital stock, $.001 par value, 25,000,000                       4,402
shares authorized; 4,401,578 shares outstanding
Additional paid in capital                                     699,027
Accumulated deficit                                           (709,482)
                                                     --------------------
                                                                (3,553)
                                                     --------------------

LIABILITIES AND STOCKHOLDERS' EQUITY                    $        1,429
                                                     ====================




See notes to unaudited financial statements.


<PAGE>


                                    IAC, INC.
                             STATEMENT OF OPERATIONS
                             AND ACCUMULATED DEFICIT
                                   (Unaudited)

                                             Three Months Ended
                                  March 31, 1998            March 31, 1997
                                  --------------            --------------

REVENUES
    Management fees                                            $28,356
    Other income                                                    26
                                ------------------    ----------------------
                                                               $28,382
                               -------------------    ----------------------

OPERATING AND GENERAL EXPENSES
Compensation and employee benefits                              33,870
Promotion and advertising                                        3,224
Administrative expenses                                         42,699
                             ----------------------    ----------------------
                                                                79,793
                             ----------------------    ----------------------
LOSS FROM OPERATIONS                                           (51,411)
                              ---------------------    ----------------------

INCOME TAXES                            (800)                     (800)
                             ----------------------    ----------------------

NET LOSS                                (800)                  (52,211)

DEFICIT-beginning of period         (731,989)                 (679,778)
                             ----------------------    ----------------------

DEFICIT- end of period          $   (732,789)             $   (731,989)
                             ======================    ======================

Loss Per Share                         $ 0.0                   $ (0.01)
                             ======================    ======================

 .




See notes to unaudited financial statements


<PAGE>


                                    IAC, INC.
                             STATEMENT OF CASH FLOWS
                                   (Unaudited)


                                                          Three Months Ended
                                            March 31, 1998       March 31, 1997

CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss                                                              ($52,211)
Adjustment to reconcile net loss to net cash provided
by (used in) operating activities:
   Amortization                                                          4,317
   Increase in receivable from related party
   Decrease in refundable payroll taxes
   Increase in accounts payable and other liabilities                   38,310
                                                         ----------------------
Net Cash Used In Operating Activities                                   (9,584)
                                                         ----------------------

CASH FLOWS FROM INVESTING ACTIVITIES
                                                         ----------------------
Net Cash Used In Investing Activities                                        0
                                                         ----------------------

CASH FLOWS FROM FINANCING ACTIVITIES
Sale of common stock, net of expenses                                        0
                                                         ----------------------
                                                         ----------------------
Net Cash Provided By Financing Activities                                    0
                                                         ----------------------

Net Increase (Decrease) In Cash                                         (9,584)
Cash At Beginning Of Period                  $      0                   11,713
                                                         ======================
Cash At End Of Period                        $      0                   $2,129
                                       ===============   =====================




See notes to unaudited financial statements.










<PAGE>


                                    IAC, INC
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE PERIODS ENDED MARCH 31, 1998 AND 1997

Note  1  -  Organization,  operations  and  summary  of  significant  accounting
policies:

Organization:
         IAC, Inc. ("IAC") is a Nevada corporation engaged in the business of
managing a malpractice insurance contract between International Associations'
Coalition, Inc. ("Coalitions"), a related party, and an unrelated insurance
company, United International, Inc. ("United").  Effective October 1, 1996, the
insurance contract was assumed by Pacific Rim Insurance Company ("Pacific Rim"),
a minority stockholder of IAC.  The members of Coalitions and its successor,
Health Professionals Coalitions, Inc. ("Health") are podiatrists seeking 
affordable malpractice insurance.  Under the management contract, IAC is 
entitled to receive 27.5% of the premiums paid by the podiatrists to United and
Pacific Rim each month.
         The term of the insurance  contract between the  Coalitions/Health  and
the  insurance  carriers is one year and is generally  renewable if both parties
have performed satisfactorily. The management contract between IAC and Coalition
also has a term concurrent with the insurance contract.  The management contract
between IAC and Coalitions/Health was terminated effective December 31, 1997.
         Coalitions was wholly owned by IAC's Chairman and majority shareholder.
In  September  1996,  the business of  Coalitions'  was  transferred  to a newly
created  company,  Health  Professionals  Coalition,  Inc., which is also wholly
owned by IAC's majority shareholder.
         On December 8, 1995, IAC formed a subsidiary, Mt. Tam Re, Inc. in Nevis
(in the West Indies) with initial capital of $25,000.  Mt. Tam Re was formed to
provide reinsurance coverage for other insurance companies.  Mt Tam Re, Inc. was
dissolved in 1997.

Basis of Presentation
         The consolidated  financial  statements have been prepared on the going
concern basis.  IAC has reported a net loss during the past two years. IAC has a
$4,182 working  capital  deficit and  stockholders'  deficit of $2,753,  and has
effectively ceased operations as a result of terminating its management contract
with Health Professionals, Inc.
effective December 31, 1997.
         In  addition,  pursuant to a Cease and Desist Order issued by the Texas
Insurance  Commissioner  effective  April 21,  1997,  IAC and  Health  could not
provide  insurance for podiatrists  residing in Texas,  since Pacific Rim is not
licensed in Texas and was ordered to pay a $10,000 fine. The Order provided that
IAC could in the future accept payment of premiums if they became  authorized to
conduct  business in Texas by either forming a risk retention group or retaining
an insurance broker and insurer licensed in Texas.  Management was unable either
to form a risk retention group or retain an insurer licensed in Texas.
         The foregoing raises  substantial  doubt about the Company's ability to
continue as a going concern. Management is planning to refocus the business as a
result of  terminating  its  agreement  with Health  Professionals,  Inc. and is
searching for an acquisition candidate.







                                    IAC, INC
                          NOTES TO FINANCIAL STATEMENTS
                  FOR THE PERIODS ENDED MARCH 31, 1998 AND 1997

Note 2 - Summary of significant accounting policies:
         The  process of  preparing  financial  statements  in  conformity  with
generally accepted  accounting  principles requires management to make estimates
and assumptions  regarding  certain types of assets,  liabilities,  revenues and
expenses.  Such estimates primarily relate to unsettled  transactions and events
as of the date of the financial statements. Accordingly, upon settlement, actual
results may differ from the estimated amounts.
         Revenues are recorded by IAC when  insurance  premiums are collected by
         Coalitions  or Health.  Expenses are  recorded on the accrual  basis of
         accounting.  The carrying value of cash,  marketable equity securities,
         note receivable, accounts payable and accrued
liabilities is a reasonable estimate of fair value of these financial 
instruments.

Note 3 - Preferred stock:
         Each share of preferred  stock is entitled to one vote per share and is
convertible  into 10 shares of common  stock;  the  preferred  stock has neither
dividend rights nor preference in liquidation.

Note 4 - Income taxes:
         At December 31, 1997, a valuation  allowance of approximately  $110,000
was  provided  for  deferred  tax assets  relating  primarily  to the future tax
benefit of IAC's net operating loss  carryforwards.  As a result, the future tax
benefit  of  IAC's  net  operating   losses  has  not  been  recognized  in  the
accompanying financial statements.
         At December 31,  1997,  IAC's  consolidated  net  operating  loss carry
forwards (NOL's)  amounted to  approximately  $545,000 for federal tax purposes.
These NOL's will expire from 1999 through  2012.  For  California  franchise tax
purposes, the NOL is approximately $287,000 and expires in 2002.


<PAGE>


Item 2.   Management's Discussion and Analysis or Plan of Operation.
         The following  discussion relates to the unaudited financial statements
for the three month  periods ended March 31, 1998 and 1997 which are included in
Item 1 above.

Basis of presentation:
         The  consolidated  financial  statements as of March 31, 1998 have been
prepared on the going concern basis. IAC has reported a loss during the last two
years and the quarter ended March 31, 1998. In addition, its current liabilities
substantially  exceed its available cash. The Company currently has no operating
business and is searching for an appropriate acquisition.
         On March 5, 1997, the Company and Health Professionals Coalition,  Inc.
signed a Consent  Cease and Desist Order (Cease and Desist  Order) issued by the
Texas Insurance Commissioner that insurance coverage for podiatrists resident in
Texas must be terminated  effective April 21, 1997. In 1996, Health & Coalition,
in the  aggregate,  collected  insurance  premiums of $95,000  from  podiatrists
residing in Texas. IAC received related management fees of approximately $26,000
(20% of its revenue) in 1996.  The Cease and Desist Order also requires  payment
of a $10,000 fine which was  recognized as an expense in the quarter ended March
31, 1997.

 Liquidity:
         IAC has used all of its cash in its  operations  with the  result  that
cash reserves  were  depleted at December 31, 1997. As of March 31, 1998,  IAC's
current liabilities of $4,982 substantially exceed its cash resources.

Discussion of quarterly results:
         The Company ceased operations effective December 31, 1997.


                           PART II - OTHER INFORMATION

Item 1.   Legal Proceedings.
         NA.
Item 2.   Changes in Securities.
         NA.
Item 3.   Defaults Upon Senior Securities.
         NA.
Item 4.   Submission of Matters to a Vote of Security Holders.
         NA.
Item 5.   Other Information.
         NA.
Item 6.   Exhibits and Reports on Form 8-K.
         a.  Exhibits
                  NA

         b. Reports on Form 8-K.
                  No reports have been filed on Form 8-K during this quarter.

/S/   Jeffrey E. Ferries, President

May 14, 1998