**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-K/A**

**(AMENDMENT      NO. 1)**

**[X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT      OF      1934**

**[       ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE      ACT OF 1934**

**DIRECT      GENERAL CORPORATION**

| Tennessee                                                                     |   | 62-1564496                                          |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |
|                                                                          |   |                                                |
| 1281                Murfreesboro Road, Nashville, TN                          |   | 37217                                               |
| (Address                of principal executive offices)                       |   | (Zip                Code)                           |

| Title                of each class                                         |   | Name                of each exchange on which registered |
|----------------------------------------------------------------------------|--------|----------------------------------------------------------|
| Common                stock, no par value                                  |   | Nasdaq                Global Select Market               |
|                                                                       |   |                                                     |
| Securities                registered pursuant to section 12(g) of the Act: |
| None                                                                       |

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| Large                accelerated filer  ̈ | Accelerated                filer þ | Non-accelerated                filer  ̈ |
|-----------------------------------------------|-----------------------------------------|---------------------------------------------|

**DOCUMENTS      INCORPORATED BY REFERENCE**

**EXPLANATORY      NOTE**

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**PART      IV**

**Item      15. Exhibits and Financial Statement Schedules.**

|   | 2.1 | Agreement                and Plan of Merger by and among Elara Holdings, Inc., Elara Merger                Corporation and Direct General Corporation, dated as of December                4, 2006                incorporated herein by reference to Exhibit 2.1 of the Current Report                on                Form 8-K filed with the SEC on December 5,                2006. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.2 | Form                of Limited Guarantee in favor of Direct General Corporation, dated                as of                December 4, 2006 incorporated herein by reference to Exhibit 2.2                of the                Current Report on Form 8-K filed with the SEC on December 5,                2006. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1 | Second                Amended and Restated Charter of Direct General Corporation incorporated                herein by reference to Exhibit 3.1 of the Registration Statement                No.                333-113289 filed with the SEC on March 4,                2004. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Amended                and Restated Bylaws of Direct General Corporation incorporated herein                by                reference to Exhibit 3.2 of the Registration Statement No. 333-113289                filed with the SEC on March 4,                2004. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | Specimen                stock certificate representing the common stock, no par value per                share of                Direct General Corporation incorporated herein by reference to Exhibit                4.1                of the Registration Statement No. 333-105505 filed with the SEC on                August                1, 2003. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1 | Employment                Agreement by and between Direct General Corporation and William C.                Adair,                Jr. dated as of July 21, 2003 incorporated herein by reference to                Exhibit                10.1 of the Registration Statement No. 333-105505 filed with the                SEC on                July 21, 2003. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Employment                Agreement by and between Direct General Corporation and Jacqueline                C.                Adair dated as of July 21, 2003 incorporated herein by reference                to                Exhibit 10.2 of the Registration Statement No. 333-105505 filed with                the                SEC on July 21, 2003. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3 | Employment                Agreement by and between Direct General Corporation and Tammy R.                Adair                dated as of July 21, 2003 incorporated herein by reference to Exhibit                10.3                of the Registration Statement No. 333-105505 filed with the SEC on                July                21, 2003. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4 | Employment                Agreement by and between Direct General Corporation and William J.                Harter                dated as of July 21, 2003 incorporated herein by reference to Exhibit                10.4                of the Registration Statement No. 333-105505 filed with the SEC on                July                21, 2003. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | Employment                Agreement by and between Direct General Corporation, Elara Holdings,                Inc.,                and Tammy R. Adair dated as of December 4, 2006 incorporated herein                by                reference to Exhibit 10.3 of the Current Report on Form 8-K filed                with the                SEC on December 5, 2006. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Employment                Agreement by and between Direct General Corporation, Elara Holdings,                Inc.,                and J. Todd Hagely dated as of December 4, 2006 incorporated herein                by                reference to Exhibit 10.4 of the Current Report on Form 8-K filed                with the                SEC on December 5, 2006. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | Resignation                and Restrictive Covenants Agreement by and between Direct General                Corporation, Elara Holdings, Inc. and William C. Adair dated as of                December 4, 2006 incorporated herein by reference to Exhibit 10.1                of the                Current Report on Form 8-K filed with the SEC on December 5,                2006. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 10.8 | Resignation                and Restrictive Covenants Agreement by and between Direct General                Corporation, Elara Holdings, Inc. and Jacqueline C. Adair dated as                of                December 4, 2006 incorporated herein by reference to Exhibit 10.2                of the                Current Report on Form 8-K filed with the SEC on December 5,                2006. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | Employment                Agreement by and between Direct General Corporation and J. Todd Hagely                dated as of August 15, 2005 incorporated herein by reference to Exhibit                10.4 of the Quarterly Report on Form 10-Q filed with the SEC on November                9, 2005. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10 | Direct                General Corporation 1996 Employee Stock Incentive Plan incorporated                herein                by reference to Exhibit 10.6 of the Registration Statement No. 333-105505                filed with the SEC on May 23, 2003. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.11 | Direct                General Corporation 2003 Equity Incentive Plan incorporated herein                by                reference to Exhibit 10.7 of the Registration Statement No. 333-105505                filed with the SEC on May 23, 2003. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.12 | Excess                of Liability Reinsurance Agreement between Direct General Insurance                Company and State National Specialty Insurance Company dated as of                October                1, 2002 incorporated herein by reference to Exhibit 10.12 of the                Registration Statement No. 333-105505 filed with the SEC on June                27,                2003. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.13 | Quota                Share Reinsurance Agreement between Direct General Insurance Company                and                State National Specialty Insurance Company dated as of October 1,                2002                incorporated herein by reference to Exhibit 10.13 of the Registration                Statement No. 333-105505 filed with the SEC on May 23,                2003. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.14 | Quota                Share Reinsurance Agreement between Direct General Insurance Company                and                Old American County Mutual Fire Insurance Company dated as of January                1,                2003 incorporated herein by reference to Exhibit 10.14 of the Registration                Statement No. 333-105505 filed with the SEC on June 27,                2003. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.15 | Eighth                Amended and Restated Loan Agreement by and among Direct General                Corporation and certain of its subsidiaries and First Tennessee Bank                National Association, as agent, and other banks described therein                dated as                of October 31, 2002, as amended by the First Amendment to the Eighth                Amended and Restated Loan Agreement dated as of March 31, 2003 and                the                Second Amendment to the Eighth Amended and Restated Loan Agreement                dated                as of May 28, 2003 and the Third Amendment to the Eighth Amended                and                Restated Loan Agreement dated as of June 30, 2003 and the Fourth                Amendment                to the Eighth Amended and Restated Loan Agreement dated as of July                17,                2003 incorporated herein by reference to Exhibit 10.15 of the Registration                Statement No. 333-105505 filed with the SEC on August 1, 2003, the                Fifth                Amendment to the Eighth Amended and Restated Loan Agreement dated                as of                November 26, 2003 incorporated herein by reference to Exhibit 3.1                of the                Registration Statement No. 333-113289 filed with the SEC on March                4, 2004,                the Sixth Amendment to the Eighth Amended and Restated Loan Agreement                dated as of June 30, 2004, the Seventh Amendment to the Eighth Amended                and                Restated Loan Agreement dated as of December 3, 2004, the Eighth                Amendment                to the Eighth Amended and Restated Loan Agreement dated as of June                30,                2006 incorporated herein by reference to Exhibit 10.1 of the Quarterly                Report on Form 10-Q filed with the SEC on August 8, 2006, the Ninth                Amendment to the Eighth Amended and Restated Loan Agreement dated                as of                November 22, 2006, but effective as of the effective date defined                therein,                incorporated herein by reference to Exhibit 10.1 of the Current Report                on                Form 8-K filed with the SEC on December 13, 2006, and the Tenth Amendment                to the Eighth Amended and Restated Loan Agreement entered into as                of                November 22, 2006.** |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 10.16 | Seventh                Amended and Restated Pledge and Security Agreement made by Direct                General                Corporation in favor of First Tennessee Bank National Association,                as                agent, and other banks described therein dated as of October 31,                2002, as                amended by the First Amendment to the Seventh Amended and Restated                Pledge                and Security Agreement dated as of March 31, 2003 and the Second                Amendment                to the Seventh Amended and Restated Pledge and Security Agreement                dated as                of May 28, 2003 and the Third Amendment to the Seventh Amended and                Restated Pledge and Security Agreement dated as of June 30, 2003                incorporated herein by reference to Exhibit 10.16 of the Registration                Statement No. 333-105505 filed with the SEC on August 1, 2003, the                Fourth                Amendment to the Seventh Amended and Restated Pledge and Security                Agreement dated as of November 26, 2003 incorporated herein by reference                to Exhibit 3.1 of the Registration Statement No. 333-113289 filed                with the                SEC on March 4, 2004, the Fifth Amendment to the Seventh Amended                and                Restated Pledge and Security Agreement dated as of June 30, 2004,                the                Sixth Amendment to the Seventh Amended and Restated Pledge and Security                Agreement dated December 3, 2004, the Seventh Amendment to the Seventh                Amended and Restated Pledge and Security Agreement dated as of June                30,                2006 incorporated herein by reference to Exhibit 10.3 of the quarterly                Report on Form 10-Q filed with the SEC on August 8, 2006, and the                Eighth                Amendment to the Seventh Amended and Restated Pledge and Security                Agreement dated as of November 22, 2006, but effective as of the                effective                date defined therein, incorporated herein by reference to Exhibit                10.3 of                the Current Report on Form 8-K filed with the SEC on December 13,                2006. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.17 | Seventh                Amended and Restated Security Agreement by and between Direct General                Financial Services, Inc. and First Tennessee Bank National Association,                as                agent, and other banks described therein dated as of October 31,                2002, as                amended by the First Amendment to the Seventh Amended and Restated                Security Agreement dated as of March 31, 2003 and the Second Amendment                to                the Seventh Amended and Restated Security Agreement dated as of May                28,                2003 and the Third Amendment to the Seventh Amended and Restated                Security                Agreement dated as of June 30, 2003 incorporated herein by reference                to                Exhibit 10.17 of the Registration Statement No. 333-105505 filed                with the                SEC on August 1, 2003, the Fourth Amendment to the Seventh Amended                and                Restated Security Agreement dated as of November 26, 2003 incorporated                herein by reference to Exhibit 3.1 of the Registration Statement                No.                333-113289 filed with the SEC on March 4, 2004, the Fifth Amendment                to the                Seventh Amended and Restated Security Agreement dated as of June                30, 2004,                the Sixth Amendment to the Seventh Amended and Restated Security                Agreement                dated as of December 3, 2004, the Seventh Amendment to the Seventh                Amended                and Restate Security Agreement dated as of June 30, 2006 incorporated                herein by reference to Exhibit 10.4 of the Quarterly Report on Form                10-Q                filed with the SEC on August 8, 2006, and the Eighth Amendment to                the                Seventh Amended and Restated Security Agreement dated as of November                22,                2006, but effective as of the effective date defined therein, incorporated                herein by reference to Exhibit 10.2 of the Current Report on Form                8-K                filed with the SEC on December 13,                2006. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.18 | Fifteenth                Amended and Restated Guaranty Agreement by and between Direct General                Financial Services, Inc., Direct General Premium Finance Company,                First                Tennessee Bank National Association, as agent, and other banks described                therein dated as of June 30, 2006, incorporated herein by reference                to                Exhibit 10.2 of the Quarterly Report on Form 10-Q filed with the                SEC on                August 8, 2006. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.19 | Third                Amended and Restated Loan Agreement among Direct General Corporation,                Direct General Financial Services, Inc., First Tennessee Bank National                Association and Hibernia National Bank dated as of October 31, 2002                incorporated herein by reference to Exhibit 10.19 of the Registration                Statement No. 333-105505 filed with the SEC on June 27,                2003. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 10.20 | Florida                MGA Agreement between Direct General Insurance Company, Inc. and                the                Maitland Underwriters dated as of August 16, 1999 incorporated herein                by                reference to Exhibit 10.22 of the Registration Statement No. 333-105505                filed with the SEC on June 27,                2003. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.21 | Option                Agreement between Direct General Insurance Agency, Inc. and LR3                Enterprises, Inc. and Maitland Underwriters, Inc. dated as of August                16,                1999 as amended by the Letter Agreements dated January 9, 2001 and                February 20, 2002 incorporated herein by reference to Exhibit 10.23                of the                Registration Statement No. 333-105505 filed with the SEC on June                27,                2003. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.22 | Managing                General Agency Agreement between Direct General Insurance Agency                Inc. and                Old American County Mutual Fire Insurance Company dated as of January                1,                2003 incorporated herein by reference to Exhibit 10.24 of the Registration                Statement No. 333-105505 filed with the SEC on June 27,                2003. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.23 | Option                Agreement between Direct General Insurance Agency, Inc. and All American                General Agency, Inc., Guaranteed Insurance Agency, Inc., and certain                guarantors described therein dated as of January 1, 2003 incorporated                herein by reference to Exhibit 10.25 of the Registration Statement                No.                333-105505 filed with the SEC on June 27, 2003.  |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.24 | Texas                Sub-Producers Agreement between Direct General Insurance Agency,                Inc. and                All American General Agency, Inc. dated as of January 1, 2003 incorporated                herein by reference to Exhibit 10.26 of the Registration Statement                No.                333-105505 filed with the SEC on June 27,                2003. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.25 | Security                Trust Agreement between Direct General Insurance Company and Old                American                County Mutual Fire Insurance Company and First Tennessee Bank National                Association dated as of January 1, 2003 incorporated herein by reference                to Exhibit 10.27 of the Registration Statement No. 333-105505 filed                with                the SEC on June 27, 2003. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.26 | Stock                Purchase Agreement and Letter between Direct General Corporation                and                Mutual Service Casualty Insurance Company dated as of December 2,                2002                incorporated herein by reference to Exhibit 10.28 of the Registration                Statement No. 333-105505 filed with the SEC on June 27,                2003. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.27 | Stock                Purchase Agreement among Direct General Corporation, New York Life                and                Health Insurance Company, NYLCare Health Plans, Inc. and Aetna Inc.                dated                as of June 26, 2003 incorporated herein by reference to Exhibit 10.31                of                the Quarterly Report on Form 10-Q filed with the SEC on September                23,                2003. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.28 | Indenture                by and between Direct General Corporation and Wilmington Trust Company                dated as of September 15, 2005 incorporated herein by reference to                Exhibit                10.3 of the Quarterly Report on Form 10-Q filed with the SEC on November                9, 2005. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.29 | Guarantee                Agreement by and between Direct General Corporation and Wilmington                Trust                Company dated as of September 15, 2005 incorporated herein by reference                to                Exhibit 10.4 of the Quarterly Report on Form 10-Q filed with the                SEC on                November 9, 2005. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.30 | Amended                and Restated Declaration of Trust by and among Wilmington Trust Company,                Direct General Corporation and William J. Harter, J. Todd Hagely                and                Matthew P. McClure dated as of September 15, 2005 incorporated herein                by                reference to Exhibit 10.5 of the Quarterly Report on Form 10-Q filed                with                the SEC on November 9, 2005. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 10.31 | Form                of Director Indemnification Agreement entered into between Direct                General                Corporation and directors William C. Adair, Jr., Jacqueline C. Adair,                Fred                H. Medling, Raymond L. Osterhout and Stephen L. Rohde, dated December                4,                2006 incorporated herein by reference to Exhibit 10.5 of the Current                Report on Form 8-K filed with the SEC on December 5,                2006. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.32 | Form                of Special Committee Indemnification Agreement entered into between                Direct                General Corporation and Special Committee members Fred H. Medling,                Raymond                L. Osterhout and Stephen L. Rohde, dated December 4, 2006 incorporated                herein by reference to Exhibit 10.6 of the Current Report on Form                8-K                filed with the SEC on December 5,                2006. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14 | * | Code                of Ethics and Policy on Business                Conduct. |
|--------|----|---|------------------------------------------------------------------------------|

|   | 21 | * | List                of Subsidiaries of the Company. |
|--------|----|---|-----------------------------------------------------|

|   | 23 | * | Consent                of Independent Registered Public Accounting                Firm. |
|--------|----|---|-----------------------------------------------------------------------------------------|

|   | 31.1 | * | Rule                13a-14(a) Certifications of CEO (pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002). |
|--------|------|---|---------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | * | Rule                13a-14(a) Certifications of CFO (pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002). |
|--------|------|---|---------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | * | Rule                1350 Certifications of CEO (pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002). |
|--------|------|---|----------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | * | Rule                1350 Certifications of CFO (pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002). |
|--------|------|---|----------------------------------------------------------------------------------------------------------------------------|

**SIGNATURES**