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


                                   FORM 10-QSB
                                November 17, 1997


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

               For the quarterly period ended: September 30, 1997


                         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

                               Tel: (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 __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:
                                4,272,578 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, 1997
                                   (Unaudited)

                                 ASSETS

CURRENT ASSETS
Cash in bank                                                  $89
Accounts receivable from related party                        811
Prepaid expense                                             2,068
                                                    ----------------
                                                    ----------------
TOTAL CURRENT ASSETS                                        2,968
                                                    ----------------

OTHER ASSETS
Organizational costs, net of amortization                   1,609
                                                    ----------------
                                                            1,609
                                                    ----------------

TOTAL ASSETS                                               $4,577
                                                    ================


                         LIABILITIES AND EQUITY

CURRENT LIABILITIES
Accounts payable                                           $17,984
Accrued liabilities                                              0
                                                    ----------------
TOTAL CURRENT LIABILITIES                                   17,984
                                                    ----------------


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            4,273
    authorized; 4,172,578 shares outstanding
Additional paid in capital                                 695,126
Accumulated deficit                                       (715,306)
                                                    ----------------
                                                           (13,407)
                                                    ----------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
                                                            $4,577
                                                    ================


See notes to unaudited consolidated financial statements.


<PAGE>


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

                                                  Three Months Ended
                                                    September 30
                                               1997               1996
                                               ----               ----

REVENUES
Management fees                             $30,244            $41,827
Other income                                      0                782
                                        --------------    -------------------
                                             30,244             42,609
                                        --------------    -------------------

OPERATING AND GENERAL EXPENSES
Compensation and employee benefits                0             28,496
Promotion and trade shows                         0             68,145
Administrative expenses                      (2,599)            29,213
                                      ---------------------------------------
                                             (2,599)           125,854
                                      ---------------------------------------

Income (Loss) from operations                32,843            (83,245)
                                      ---------------------------------------
Income taxes                                      0                  0
                                      ---------------------------------------
Net income (loss)                            32,843            (83,245)
Accumulated deficit-beginning of period    (748,149)          (447,438)
                                      ---------------------------------------
Accumulated deficit-end of period         ($715,306)         ($530,683)
                                      =======================================

Income (Loss) per share                        $0.01             ($0.02)
                                      =======================================



See notes to unaudited consolidated financial statements.




<PAGE>


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

                                                 Nine Months Ended
                                                  September 30
                                               1997               1996
                                               ----               ----
Management fees                              $87,674           $103,843
Other income                                      26              9,928
                                       ---------------------------------------
                                             $87,700           $113,771
                                       ---------------------------------------

OPERATING AND GENERAL EXPENSES
Compensation and employee benefits            43,581             60,043
Promotion and advertising                      3,224            254,634
Administrative expenses                       75,623            112,210
                                       ---------------------------------------
                                             122,428            426,887
                                       ---------------------------------------
Income (Loss) from operations                (34,728)          (313,116)
                                       ---------------------------------------
Income taxes                                    (800)            (1,600)
                                       ---------------------------------------
Net income (loss)                            (35,528)          (314,716)
Accumulated deficit-beginning of period     (679,778)          (215,967)
                                       ---------------------------------------
Accumulated deficit-end of period          ($715,306)         ($530,683)
                                       =======================================

Income (Loss) per share                       ($0.01)            ($0.08)
                                       =======================================



See notes to unaudited consolidated financial statements.



<PAGE>


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


                                                     Nine Months Ended
                                                        September 30
                                                 1997               1996
                                                 ----               ----

CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss                                      ($35,528)         ($314,716)
Adjustment to reconcile net loss to net cash provided
by (used in) operating activities:
   Amortization                                 12,953                540
   Increase in receivable from related party     (811)               (92)
   Decrease in refundable payroll taxes                             3,973
   Increase in accounts payable and 
    other liabilities                           11,762              2,018
   Decrease in receivable from related party     3,433
Issuance of shares of common stock for services                   288,000
                                            ----------------------------------
                                            ----------------------------------
Net Cash Used In Operating Activities         (11,624)           (16,844)
                                           -----------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
   Sale of investment securities                                   10,000
                                           -----------------------------------
Net Cash Used In Investing Activities                0             10,000
                                           -----------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Sale of common stock, net of expenses                            1,600
                                          ------------------------------------
Net Cash Provided By Financing Activities            0              1,600
                                          ------------------------------------

Net Increase (Decrease) In Cash                (11,624)            (5,244)
Cash At Beginning Of Period                     11,713             37,967
                                         =====================================
Cash At End Of Period                              $89            $32,723
                                         =====================================

Income taxes paid during period                   $800               $800
                                         =====================================


See notes to unaudited consolidated financial statements



<PAGE>


                                    IAC, INC
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                FOR THE PERIODS ENDED SEPTEMBER 30, 1997 AND 1996

Note 1 - Organization, operations and basis of presentation:
Organization:
     IAC, Inc. (IAC) is a Nevada corporation engaged in the business of managing
a   malpractice   insurance   contract   between   International   Associations'
Coalitions',  Inc.,  (Coalitions)  a related  party,  and an insurance  company,
Pacific Rim Insurance  Company,  a minority  stockholder  of IAC. The members of
Coalitions' and its successor,  Health Professionals  Coalition,  Inc. (Health),
are podiatrists seeking affordable malpractice  insurance.  Under the management
contract,  IAC,  Inc. is entitled to receive  27.5% of the premiums  paid by the
podiatrists to United and Pacific Rim.
     The term of the insurance  contract  between  Coalitions' and the insurance
carriers is one year and is generally  renewable if both parties have  performed
satisfactorily.  The  management  contract  with  Coalitions'  also  has a  term
concurrent with the insurance contract.
     Coalitions'  is a  wholly  owned by the  Company'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.  Mt. Tam Re was formed to
provide reinsurance coverage for other insurance companies.

Basis of presentation:
     The  consolidated  financial  statements  have been  prepared  on the going
concern basis. IAC has reported a loss during the last two years and for the six
month  period  ended  June  30,  1997.  In  addition,  its  current  liabilities
substantially exceed its available cash. Losses are expected to continue.
         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.
         The Cease and  Desist  Order  provides  that IAC and  Health can in the
future,  accept payment of premiums only if first authorized to conduct business
in  Texas.  Such  authorization  will  be  dependent  upon  formation  of a risk
retention group (RRG), or retention of an insurance  broker and insurer licensed
in Texas. Pacific Rim is not licensed in Texas.  Management was unable to retain
a broker licensed in Texas,  or an insurer  licensed in Texas by April 21, 1997.
Retention  in the  future  of  some  or all of the  revenues  from  Texas  based
podiatrists is dependent upon formation of an RRG. During the quarter ended June
30, 1997, IAC refunded $3,079 of premiums  received from podiatrists  located in
Texas.
         In 1996, the Company received  revenues of  approximately  $19,000 from
Mt. Tam Re reinsurance  premiums and a gain from sale of a security,  which will
not reoccur in 1997.
         The Company has been seeking funding for the initial  capitalization of
a Risk  Retention  Group  (RRG) for  podiatrists.  The  Company  entered  into a
contract in October of 1996 to provide
                                    IAC, INC
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
         FOR THE PERIODS ENDED SEPTEMBER 30, 1997 AND 1996

Note 1 (continued):
$600,000 but such funding has yet to be received.  This  agreement,  as amended,
provides  that upon funding by the  investor,  the Company  must pledge  500,000
shares of convertible preferred stock. Such pledged shares can, at the Company's
option,  either be from those  currently  outstanding or be newly issued shares.
The  agreement  provides  for a success  fee of $47,500.  Without a RRG,  IAC is
unable to substantially  expand its marketing efforts to podiatrists  around the
country and reduce its dependence upon the limited number of members of Health.

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 assets,  liabilities,  revenue 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.
     Revenues  are  recorded by IAC when  insurance  premiums  are  collected by
     Coalitions  or by Health.  Expenses are  recorded on the accrual  method of
     accounting.  The carrying value of cash, note receivable,  accounts payable
     and accrued liabilities are a reasonable
estimate of fair value of these financial instruments.

Note 3 - Authorized stock:
     The Company's authorized capital consists of 25,000,000 shares of $.001 par
value common stock and 5,000,000 shares of no par 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 no dividend rights or preference
in liquidation.

Note 4 - Income Taxes:
         At December 31,  1996,  IAC's  consolidated  net  operating  loss carry
forwards (NOL's)  amounted to  approximately  $516,000 for federal tax purposes.
These NOLs will expire from 1999 through  2011.  For  California  franchise  tax
purposes, the NOL is approximately $258,000 and expires in 2001.






<PAGE>


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


The following  discussion relates to the unaudited financial  statements for the
nine-month periods ended September 30, 1997 and 1996, which are included in Item
1 above.

Basis of presentation:

The  consolidated  financial  statements  as of  September  30,  1997  have been
prepared on the going concern basis. IAC has reported a loss during the last two
years. In addition,  its current liabilities  substantially exceed its available
cash. In its current configuration, the Company could become current in the next
quarter.

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 June 30, 1997.

The Cease and Desist  Order  provides  that IAC and  Health  can in the  future,
accept  payment of  premiums  only if first  authorized  to conduct  business in
Texas. Such  authorization  will be dependent upon formation of a risk retention
group (RRG), or retention of an insurance  broker and insurer licensed in Texas.
Pacific Rim is not licensed in Texas.  Management  was unable to retain a broker
licensed in Texas, or an insurer licensed in Texas by April 21, 1997.  Retention
in the future of some or all of the  revenues  from Texas based  podiatrists  is
dependent upon formation of an RRG.

In 1996, the Company received revenues of approximately  $19,000 from Mt. Tam Re
reinsurance premiums and a gain from sale of a security,  which will not reoccur
in 1997.

The Company has been seeking  funding for the initial  capitalization  of a Risk
Retention  Group (RRG) for  podiatrists.  The Company entered into a contract in
October of 1996 to provide  $600,000  but such  funding has yet to be  received.
This  agreement,  as amended,  provides that upon funding by the  investor,  the
Company must pledge 500,000 shares of convertible  preferred stock. Such pledged
shares can, at the Company's option, be either from those currently  outstanding
or be newly issued shares.  The agreement provides for a success fee of $47,500.
Without a RRG, IAC is unable to  substantially  expand its marketing  efforts to
podiatrists around the country and reduce its dependence upon the limited number
of members of Health.

 Liquidity:

IAC  has  used  virtually  all of its  available  cash in its  operations  as of
September  30, 1997. As of September 30, 1997,  IAC's current  liabilities  were
$17,984  versus  $54,244  at the  end of the  June  quarter.  Negotiations  with
suppliers  are ongoing and the company  believes it will be able to  restructure
most of these obligations.

Discussion of quarterly results:

Management fees in the third quarter of 1997 declined  $11,583 or 27.7% from the
preceding  year.  This  was  due  to a  decrease  in  premiums  written  to  the
podiatrists  group under  management,  primarily  as a result of the loss of the
participants in Texas.

Employee  compensation  decreased $28,496 and administrative  expenses decreased
$31,812  largely due to lower  legal  expenses  and a small  reversal of charges
incurred in the second quarter.  Promotional expenses declined from the previous
year's $68,145 to zero.

                           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 Exchange 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/ Harry Walsh
Harry Walsh, President

November 17, 1997