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


                                   FORM 10-QSB
                                November 6, 1996

               _X_ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended: September 30, 1996


      ____TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT


                         Commission file number 0-26322



                                    IAC, Inc.

            Incorporated pursuant to the Laws of the State of Nevada

         Internal Revenue Service Employer Identification No. 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 ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under the plan confirmed by the court.
Yes ____     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:
                                4,172,578 shares

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


<PAGE>



                         PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.

                                    IAC, INC.
                           CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 1996
                                   (Unaudited)

ASSETS

CURRENT ASSETS
Cash in bank                                                  $32,723
Note from related party                                        19,376
Account receivable from related party                              92
Prepaid expense                                                62,500
                                                         -------------
TOTAL CURRENT ASSETS                                          114,691
                                                         -------------

OTHER ASSETS
Organizational costs, net of amortization                       2,329
                                                         -------------
                                                                2,329
                                                         -------------

TOTAL ASSETS                                                 $117,020
                                                         =============


LIABILITIES AND EQUITY

CURRENT LIABILITIES
Accounts payable                                               $5,912
Accrued liabilities                                              (106)
                                                         -------------
TOTAL CURRENT LIABILITIES                                       5,806
                                                         -------------


STOCKHOLDERS' EQUITY
Preferred stock, no par value, 5,000,000 shares
   authorized; 630,000 outstanding                              2,500
Capital stock, $.001 par value, 25,000,000 shares
   authorized; 4,172,578 outstanding                            4,173
Additional paid in capital                                    635,225
Accumulated deficit                                          (530,683)
                                                         -------------
                                                              111,215
                                                         -------------

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                     $117,021
                                                         =============

See notes to unaudited consolidated financial statements.

<PAGE>

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


                                                         Three Months Ended
                                                               September 30
                                                       1996             1995
                                                   -------------    -----------

REVENUES
Management fees                                        $41,827          $34,700
Other income                                               782
                                                   ------------    ------------
                                                        42,609           34,700

OPERATING AND GENERAL EXPENSES
Compensation and employee benefits                      28,496           13,184
Promotion and trade shows                               68,145            3,302
Administrative expenses                                 29,213           27,534
                                                   -----------      -----------
                                                       125,854           44,020
                                                   -------------    -----------
LOSS FROM OPERATIONS                                   (83,245)         (9,320)
                                                   -------------    -----------

INCOME TAXES                                                 0                0
                                                   -------------    -----------
NET LOSS                                               (83,245)         (9,320)
DEFICIT- beginning of period                          (447,438)       (182,014)
                                                   -------------    -----------
DEFICIT- end of period                               ($530,683)      ($191,334)
                                                   =============    ===========

Loss Per Share                                          ($0.02)            0.00
                                                   =============    ===========

See notes to unaudited consolidated financial statements.

<PAGE>

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


                                                         Nine Months Ended
                                                              September 30
                                                       1996             1995
                                                   -------------    -----------

REVENUES
Management fees                                        $62,016          $81,822
Other income                                             9,146
                                                   -------------    -----------
                                                        71,162           81,822

OPERATING AND GENERAL EXPENSES
Compensation and employee benefits                      31,547           38,913
Promotion and trade shows                              186,489           21,466
Administrative expenses                                 82,997           33,360
                                                   -------------    -----------
                                                       301,033           93,739
                                                   -------------    -----------
LOSS FROM OPERATIONS                                  (229,871)        (11,917)

INCOME TAXES                                             -1600             -800
                                                   -------------    -----------

NET LOSS                                              -231,471          -12,717

DEFICIT-beginning of period                           -215,967         -166,797
                                                   -------------    -----------

DEFICIT- end of period                               ($447,438)      ($179,514)
                                                   =============    ===========

Loss Per Share                                          ($0.08)         ($0.01)
                                                   =============    ===========

See notes to unaudited consolidated financial statements.
<PAGE>

                                    IAC, INC.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)

                                                          Nine Months Ended
                                                               September 30
                                                      1996           1995
                                                  -------------  -------------

CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss                                             ($314,716)      ($22,037)
Adjustment to reconcile net loss to net cash
provided by (used in) operating activities:
   Amortization                                            540            540
   Decrease (increase) in note receivable
        from  related party                              3,433        (15,693)
   Decrease in refundable payroll taxes                  3,973         (2,300)
   Increase in organizational expense                                  (2,589)
   Increase in accounts payable and
        accrued liabilities                              2,018           (668)
   Issuance of shares of common stock
        for services                                   288,000          1,500
   Increase in advances on future
        commissions                                                    (6,000)
   Increase in account receivable                          (92)
                                                  ----------------------------
Net Cash Used In Operating Activities                  (16,844)       (47,247)
                                                  ----------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
   Investment in equity securities                      10,000        (10,000)
                                                  ----------------------------
Net Cash Used In Investing Activities                   10,000        (10,000)
                                                  ----------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Sale of common stock, net of expenses                 1,600         63,399
                                                  ----------------------------
Net Cash Provided By Financing Activities                1,600         63,399
                                                  ----------------------------

Net Increase (Decrease) In Cash                         (5,244)         6,152
Cash At Beginning Of Period                             37,967         55,202
                                                  ----------------------------
Cash At End Of Period                                  $32,723        $61,354
                                                  ============================

See notes to unaudited consolidated financial statements.
<PAGE>

                                    IAC, INC.
                      CONSOLIDATED STATEMENT OF CHANGES IN
                               STOCKHOLDERS EQUITY
                  For the Nine Months Ended September 30, 1996


               Preferred Stock   Capital Stock

                                                 Paid-in   Accumulated
               Shares   Amount Shares    Amount  Capital   Deficit      Total
Balances at
December 31,
1995           630,000 $2,500  3,693,578 $3,694  $283,604 ($215,967)   $73,831

Sale of common stock                                1,600                1,600

Stock issued for services:
    Legal fees                    20,000     20     7,980                8,000
    Corp. comm.                  305,000    305   304,695              305,000
    Insurance Coverage           100,000    100    37,400               37,500
    Consulting                    50,000     50      (50)                    0

Other stock issued                 4,000      4       (4)                    0

Net loss for period                                         (314,716) (314,716)
         ----------------------------------------------------------------------

Balances at
September 30,
1996           630,000 $2,500  4,172,578  $4,173  $635,225 ($530,683)  $111,215
         ======================================================================

See notes to unaudited consolidated financial statements.

<PAGE>


                                    IAC, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
            NINE AND THREE MONTH PERIODS ENDED SEPTEMBER 30, 1996 AND 1995


Note 1 - Business of the Company:

The Company's  business is the management of the malpractice  insurance contract
between  International  Associations'  Coalition,  Inc.  (Coalition),  a related
party,  and  two  unrelated  insurance  companies,  United  International,  Inc.
(United) and effective  October 1, 1995,  Pacific Rim Insurance Company (Pacific
Rim).  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  contracts  between the  podiatrists and the insurance
carrier is one year and is generally  renewable  if both parties have  performed
satisfactorily.   The  management  contract  with  Coalition  also  has  a  term
concurrent with the insurance contract.

Coalition  is  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 Chairman.

On December 8, 1995,  IAC formed a  subsidiary,  Mt. Tam Re, Inc. in Nevis (in 
the West  Indies)  with  initial capital of $25,000  which is on deposit in the 
Channel  Islands.  Mt. Tam Re was formed to provide  reinsurance coverage for 
other insurance companies (See Note 6).

Note 2 - 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 Coalition.

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.

In the opinion of management,  all necessary  adjustments  have been recorded in
order to make the interim financial statements not misleading.



<PAGE>


                                    IAC, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
         NINE AND THREE MONTH PERIODS ENDED SEPTEMBER 30, 1996 AND 1995


Note 3 - Receivables from Related Party:

At December  31, 1995,  Coalition  was  obligated to IAC for $22,809.  To effect
payment of this  receivable,  the Board of Directors of IAC accepted a note from
Coalition  which requires  payment of $3,000 per quarter with the balance due in
full on December 31, 1996.  Payments were made in  accordance  with the terms of
the note during the nine monthe ended  September 30, 1996.  The  unsecured  note
bears interest at the rate of 10%.

Note 4 - Investment in Equity Security:

During the quarter ended June 30, 1996,  the Company sold its entire  investment
in Triden  Telecom,  Inc., a SEC  registrant,  for $17,500  which  resulted in a
pretax profit of approximately $7,500.

Note 5 - Issuance and sales of  stock:

On October 20, 1994, as  consideration  for  assignment to IAC of the Chairman's
Podiatric Consulting Agreement with International Associations' Coalition, Inc.,
210,000 shares of  convertible  preferred  stock and 2,100,000  shares of common
shares were issued to the Company's Chairman and President. Such preferred stock
is  convertible  into 10 shares of common stock.  Such  assignment was effective
January  1,  1995.  The  preferred  stock  has no  dividend  nor  preference  in
liquidation.

On November 8, 1994, the Company  initiated a private  placement of common stock
at a price of $1 per  share.  During  the three  month  period  March 31,  1995,
proceeds of $39,766 were received.  The foregoing  proceeds included the sale of
28,500 shares of common stock at $1 per share to the IAC Risk  Retention  Group,
Inc.

On January 2, 1996,  IAC entered into a one year  contract  with North  American
Corporate  Consultants (NACC). NACC is to develop and implement an ongoing stock
market informational  system for the company. As consideration,  NACC was issued
250,000 shares of common stock at a fair market value of $1 per share.  The cost
of this contract is being recognized pro rata in 1996.

Other consultants were also issued an aggregate of 55,000 shares of free trading
stock for their services during the second  quarter.  These services were valued
at $1 per share and were  recorded as expense in the three months ended June 30,
1996.

In June,  1996,  the  company's  legal  counsel  was  issued  20,000  shares  of
restricted  common  stock  valued at 40% of the fair market  value of $1 and the
legal expense has been recorded in the second quarter.


<PAGE>



                                    IAC, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
         NINE AND THREE MONTH PERIODS ENDED SEPTEMBER 30, 1996 AND 1995

Note 5 (continued):

In addition,  100,000 shares of IAC restricted  stock were issued to Pacific Rim
to provide  insurance  coverage for podiatrists for certain time periods.  These
shares were valued at $0.375 per share and have been  recorded as expense in the
second quarter.

Note 6 - Mt. Tam Re Trust:

In  December,  1995,  a  shareholder  of IAC  deposited  common  stock of an OTC
Bulletin  Board  company in a trust  account  which is held by a domestic  stock
brokerage  firm.  These  securities  are to serve  as  additional  capital,  for
reinsurance  underwriting  purposes, for Mt. Tam Re, Inc. Under the terms of the
trust  agreement,  the trustee can require this  shareholder  to add  sufficient
securities to the trust to maintain an aggregate value of $500,000 as of the end
of each calendar quarter.

Mt Tam Re began  providing  reinsurance on August 1, 1996.  Based on the premium
levels of the three months ended  September  30, it should  realize  revenues of
approximately  $73,000 over the next twelve months.  Based on the premium levels
on August 1 when the  policy was  written,  Mt Tam Re is  entitled  to a minimum
payment of $12,500 per quarter with adjustments annually. The first such payment
is scheduled to be received on November 15, 1996.  Mt Tam Re has agreed to pay a
5% rate on its capital of $500,000.

Note 7 - Income Taxes:

The Company's net operating loss (NOL) for federal income tax purposes  amounted
to approximately $52,000 at December 31, 1995. This NOL will expire in 2010. For
California franchise tax purposes,  the NOL is approximately $25,000 and expires
in 2010.

Note 8 - Subsequent Event:

On October 22, 1996, the Company announced the signing of a financing  agreement
for $1.25  million to complete  its  application  to the Arizona  Department  of
Insurance for a Risk Rentention Group for podiatrists.  Upon final approval from
the DOI, the Company will begin aggressively marketing to podiatrists around the
country.  The Company expects to significantly expand its business in the twelve
months following the approval.



<PAGE>



Item 2.   Management's Discussion and Analysis or Plan of Operation.

        The following  discussion relates to the unaudited financial  statements
of IAC, Inc. for the interim nine month period ended  September 30, 1996 and the
comparable period ended September 30, 1995.
        For the first time, the Company had, in the third  quarter,  an increase
in revenues versus the comparable period in 1995. This was due to an increase in
premiums  written to the podiatry  group under  management.  Insurance  premiums
normally rise 50% in each year for the first five years of malpractice coverage,
and this increase has begun to have an impact on the company.  Membership levels
have remained steady, and therefore reflect the Company's ability to attract new
members  to the  group of  insureds  in spite of the  continued  utilization  of
off-shore  carriers.  Management  fees  increased from $34,700 to $41,827 in the
third quarter of 1996.
        During the third quarter, the Board authorized an increase in the salary
of the CEO from  $5,000 to  $10,000  per month  reflecting  the  increased  time
required to conduct the  company's  affairs.  Promotion  and  advertising  costs
increased from $3,302 in the 1995 period to $68,145.  In the 1995 period,  these
costs were paid in cash, while in the current period they were paid primarily in
stock.  The  cost  of the  company's  contract  with  North  American  Corporate
Consultants  (NACC) (see Note 5 to the interim  financial  statements)  is being
recognized  ratably in 1996.  This  expense  amounted  to $62,500 in each of the
first three quarters of 1996.
        The  company's  reinsurance  subsidiary,  Mt  Tam  Re,  began  providing
reinsurance  on August 1, 1996.  Based on the premium levels of the three months
ended September 30, it should realize revenues of approximately $73,000 over the
next twelve months.  Based on the premium levels on August 1 when the policy was
written,  Mt Tam Re is entitled to a minimum payment of $12,500 per quarter with
adjustments  annually.  The first such  payment is  scheduled  to be received on
November  15,  1996.  Mt Tam Re has  agreed to pay a 5% rate on its  capital  of
$500,000.
        On October 22, 1996,  the Company  announced  the signing of a financing
agreement  for  $1.25  million  to  complete  its  application  to  the  Arizona
Department of Insurance for a Risk Retention Group for  podiatrists.  Upon final
approval  from the  DOI,  the  Company  will  begin  aggressively  marketing  to
podiatrists around the country.  The Company expects to significantly expand its
business in the twelve months following the approval.

Liquidity:  Since the Company's  overhead consists  primarily of compensation to
Dr.  Wener and the  variable  costs of  promotion,  expenses  can be  reduced to
accommodate  a significant  downturn in revenues.  Sources of liquidity are from
the generation of fees  associated  with the Company's  management  contract and
other  insurance  referrals.  The  Company's  current  cash on hand is deemed to
provide  sufficient  liquidity for the foreseeable  future.  The only demand for
capital  will be to form Risk  Retention  Group's  for groups of  insureds,  and
management  intends to raise those funds on an "as-needed" basis. If the Company
is successful in raising such funds, it would lend them to Risk Retention Group.
The Risk Retention Group would then repay the Company from earnings and from the
sale of stock to members.  A long term management  contract would be a condition
to the  loan  to the  Risk  Retention  Group.  Once  this  funding  is  secured,
management is confident  that the number of  participants  in the Risk Retention
Group and thus its management fees can be expanded  significantly.  To date, the
doctor group has experienced  approximately  a 5% claims history.  This level of
claims is a direct result of Dr.  Wener's  proficiency  as a risk manager.  In a
program  which  has  very  low  claims,  the  profitability  to the  insurer  is

<PAGE>
significant.  This is why a Risk Retention Group is so desirable to well managed
insureds. In an Risk Retention Group, the insureds are the only stockholders and
may enjoy  dividends.  With a record such as that  established by Dr. Wener, new
participants  should be readily  accessible.  Dr. Wener,  furthermore,  enjoys a
considerable  reputation  through his participation in The Academy of Ambulatory
Foot Surgery, a national organization of podiatrists.

Cash Flow: A negative  cash flow of $5,244 was the result of the increase in the
compensation  of the CEO.  Increased  premium and revenues from Mt Tam Re should
neutralize this increase. The company continues to have adequate cash reserves.



                           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
               Exhibit 27.  Financial Data Schedule

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

                                   SIGNATURES

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

IAC, Inc.

By:   /S/   Dr. Michael Wener
        Dr. Michael Wener, President

November 6, 1996