EXHIBIT 10(i)

                      2003 SHORT TERM INCENTIVE (STI) PLAN

PURPOSE:  to  focus  management  on business challenges and opportunities within
their  control  in  the  current  year.  While  current  year  results should be
maximized,  it  should be done in context with the steady, long term development
of  the  company  and  its  franchise  with  consumers.

COMPOSITION:

     1.   The Short Term Incentive score is created by weighting the performance
          of the Core Business (as defined below) at 75% and Net Income (as
          defined below) for the entire organization at 25%, both as externally
          reported to shareholders.
     2.   An STI "pool" is created by multiplying the STI performance factor by
          the STI target percentage for each position and the paid salary of the
          individual. Management will recommend to the Compensation Committee
          any variances from the calculated amounts for each manager in the Plan
          based on that individual's performance and contributions for the year.
     3.   After approval of the Plan and communication of the Plan to
          management, the "pool amount" result of this Plan may not be
          subsequently modified without the affirmative vote of 2/3 of the full
          Compensation Committee and 2/3 of the full Board.
     4.   Any revisions to this STI Plan, such as to the Core Business matrix
          for a subsequent year, are to be completed and approved by the
          Compensation Committee and the Board by September 30th of the year
          prior to the change taking effect.
     5.   Bonus accruals are included in underwriting results.

CORE  BUSINESS  COMPONENT:

     1.   Core Business is defined as the ongoing Personal Lines business, as
          defined by the current "Exhibit A" in the company's earnings release.
               a.   Any reorganization of companies, agencies, reinsurance
                    transaction, etc. will be reconstituted to measure DWP and
                    GAAP CR for the Core Business as currently defined.
               b.   "Cross Sell" products will generally be recorded on an
                    income or expense reduction basis, not as Gross Revenue.
     2.   Results will be on a Calendar Year GAAP basis as externally reported
          to shareholders.
     3.   Specifically excluded from results:
               a.   Investment income, financing costs, taxes, etc.
               b.   SB1899, Northridge and similar pre 2003 earthquakes and
                    Homeowners Insurance
               c.   One time adjustments in Capitalized assets, such as for IT.
               d.   Impact of CDI fines and other regulatory actions exceeding
                    $1 million.
     4.   Specifically includes the impact of new earthquakes, fire, flood and
          other natural disasters affecting the personal auto/core business.
     5.   Results will be placed against the attached matrix to produce a Core
          Business STI Performance Score. Results falling between the listed
          points will be interpolated on a linear basis.

                                NET INCOME FACTOR

     1.   Includes the total result for the corporation defined as "Exhibit B -
          All Lines" in the earnings release.
     2.   Results on for GAAP Net Income, calendar year basis as externally
          reported to shareholders.
     3.   Specifically includes:
               a.   Investment income, financing costs, taxes, etc.
               b.   SB1899, Northridge and similar pre 2003 earthquakes and
                    Homeowners Insurance.
               c.   All adjustments to capitalized assets.
               a.   Impact of all CDI fines and other regulatory actions.


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     4.   Performance Score calculated as Net Income as a % of Net Earned
          Premium adjusted for any new, significant reinsurance transaction.
     5.   Results will be placed against the table listed below to produce a Net
          Income STI Performance Score. Results falling between the listed
          points will be interpolated on a linear basis.
     6.   Net Income STI Performance table:


--------------------------------------     ---------
NET INCOME AS % OF NET EARNED PREMIUM.  |  STI SCORE
--------------------------------------     ---------
                              Negative  |  zero
--------------------------------------     ---------
                                    1%  |  50
--------------------------------------     ---------
                                    2%  |  70
--------------------------------------     ---------
                                    3%  |  90
--------------------------------------     ---------
                                    4%  |  110
--------------------------------------     ---------
                                    5%  |  130
--------------------------------------     ---------
                                    6%  |  150
--------------------------------------     ---------
                                    7%  |  170
--------------------------------------     ---------
                                    8%  |  180
--------------------------------------     ---------
                                    9%  |  190
--------------------------------------     ---------
                                   10%  |  200
--------------------------------------     ---------


                    TARGET STI AS A PERCENTAGE OF BASE SALARY
                    -----------------------------------------

                    CEO                                  100%
                    -----------------------------------------
                    SVP's                                 75%
                    -----------------------------------------
                    VP's                                  50%
                    -----------------------------------------
                    MGR's                                 25%
                    -----------------------------------------


2003 CORE BUSINESS STI MATRIX:
                        CALENDAR YEAR GAAP COMBINED RATIO:
                 94   95   96      97   98   99   100  101  102

% GROWTH IN DWP  30%  200  185  |  170  145  120  100   85   50  0
                 25%  180  165  |  150  130  100   85   50    0  0
                 20%  165  150  |  125  110   75   50    0    0  0
                 15%  145  125  |  100   75   50   25    0    0  0
                 10%  130  105  |   85   65   35   20    0    0  0
                 ---------------|---------------------------------
                  5%  105   90  |   70   55   25   15    0    0  0
                  0%   75   65  |   50   40   20   10    0    0  0
                 -5%   40   30  |   25    0    0    0    0    0  0

     -    Numbers in tables represent % of target bonus to be paid.
     -    Actual results are interpolated between chart values.


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