| SECURITIES AND        EXCHANGE COMMISSION                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| WASHINGTON, D.C.                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| FORM 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| QUARTERLY REPORT                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Under Section 13 or        15 (d) of the Securities Exchange Act of 1934                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| FOR THREE MONTHS        ENDED                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| June 30, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Commission File:        0-1999                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| KENTUCKY INVESTORS,        INC.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (Exact name of        registrant as specified in Charter)                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| KENTUCKY                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (State of Other        Jurisdiction of Incorporation or Organization)                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 61-6030333                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (IRS Employer        Identification Number)                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 200 Capital Avenue,        P. O. Box 717                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Frankfort, Kentucky        40602                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (Address of Principal        Executive Offices)                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Registrant's        Telephone Number - (502) 223-2361                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Securities registered        pursuant to Section 13(g) of the Act:                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Common Capital Stock        par value $1.00 per share                                                                                                                                                                                                                                                                                                                                                                                                             |
| (Title of Class)                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Number of outstanding        shares as of June 30, 2001 - 1,130,822.72                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Indicate by check        mark whether the registrant (1) has filed all reports        required to be filed by Section 13 or 15(d) of the        Securities Exchange Act of 1934 during the preceding 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      |

 

 

| PART I - CONSOLIDATED        FINANCIAL STATEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ITEM 1. The following        consolidated financial statements have been prepared by        management in accordance with accounting principles        generally accepted in the United States        ("GAAP"). In management's opinion, all        adjustments and certain reclassifications necessary for a        fair statement of financial position at June 30, 2001 and        December 31, 2000 and the results of operations for the        three months ended June 30, 2001 and December 31, 2000        have been made. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| KENTUCKY INVESTORS,        INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Condensed        Consolidated Balance Sheets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | (Unaudited) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | June 30,        2001 | December        31, 2000 |
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |
|   Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |
|     Fixed        maturities available-for-sale at              fair value (amortized        cost:              2001-$224,657,099;        2000-              $215,983,658)                                                                                                                                                                                                                                                      | $230,395,801 | $220,446,702 |
|     Mortgage        loans on real estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 24,699,046 | 23,864,291 |
|     Other        investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     10,962,016 |     11,446,046 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|           Total        investments                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $266,056,863 | $255,757,039 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|   Cash and        cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 3,871,315 | 3,324,447 |
|   Due and        deferred premiums                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 4,288,923 | 4,601,062 |
|   Deferred        acquisition costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 24,569,500 | 23,962,641 |
|   Present        value of future profits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 551,731 | 586,298 |
|   Other        assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 8,257,534 | 8,301,041 |
|   Amounts        recoverable from reinsurers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |     69,400,727 |     69,403,217 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $376,996,593 | $365,935,745 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| Liabilities and        Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |
|   Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |
|     Policy        liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |
|       Benefit        reserves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $298,212,239 | $290,096,285 |
|       Unearned        premium reserves                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 23,157,598 | 23,816,171 |
|       Other        policyholders' funds                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |      4,523,899 |      4,456,286 |
|         Total        policy liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $325,893,736 | $318,368,742 |
|       Federal        income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 5,361,311 | 3,810,143 |
|       Notes        payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2,353,848 | 2,000,000 |
|       Other        liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |      4,550,254 |      4,502,542 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|         Total        liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $338,159,149 | $326,681,427 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| Stockholders' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|   Common        stock (shares issued:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|     2001-1,130,823;        2000-1,151,323)                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $     1,130,823 | $     1,151,323 |
|   Paid-in        surplus                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 8,399,141 | 8,399,106 |
|   Accumulated        other comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 3,973,896 | 3,001,407 |
|   Retained        earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |    25,333,584 |    24,702,482 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|         Total        stockholders' equity                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $  38,837,444 | $  37,254,318 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $376,996,593 | $363,935,745 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| See accompanying        notes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

 

 

 

| KENTUCKY INVESTORS,        INC.                                                                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
| Condensed        Consolidated Income Statements (Unaudited)                                                                                     |
|                                                                                                                                            |
|                                                                                                                                            | Three Months Ended        June 30 |
|                                                                                                                                            | 2001 | 2000 |
| REVENUES                                                                                                                                        |   |   |
|                                                                                                                                            |   |   |
|   Premiums        and other considerations                                                                                            | $12,897,136 | $11,893,188  |
|   Investment        income, net of expenses                                                                                           | 4,566,480 | 4,164,074  |
|   Realized        gain on investments, net                                                                                            | 66,960 | (36,448) |
|   Other        income                                                                                                                 |       276,831 |       296,882  |
|                                                                                                                                            |   |   |
|     Total        revenues                                                                                                   | $17,807,407 | $16,317,696  |
|                                                                                                                                            |   |   |
| BENEFITS AND EXPENSES                                                                                                                           |   |   |
|                                                                                                                                            |   |   |
|   Death and        other policyholder benefits                                                                                        | $ 7,357,860  | $ 6,359,302  |
|   Guaranteed        annual endowments                                                                                                 | 210,601  | 219,170  |
|   Dividends        to policyholders                                                                                                   | 200,319  | 205,075  |
|   Increase        in benefit reserves and            unearned premiums                                            | 4,984,883  | 5,158,076  |
|   Amortization        of deferred            acquisition costs, net                                               | (234,507) | (265,235) |
|   Commissions                                                                                                                         | 1,472,285  | 1,522,265  |
|   Other        insurance expenses                                                                                                     |    2,630,242  |    2,351,079  |
|                                                                                                                                            |   |   |
|       Total        benefits and expenses                                                                          | $16,621,683  | $15,549,732  |
|                                                                                                                                            |   |   |
| Income from        operations before Federal          income tax and minority interest          in net income of subsidiary | $  1,185,724  | $     767,964  |
|                                                                                                                                            |   |   |
| Provision for income        taxes:                                                                                                              |   |   |
|   Current                                                                                                                             | $     105,909  | $       59,882  |
|   Deferred                                                                                                                            |       285,000  |       172,482  |
|                                                                                                                                            |   |   |
|                                                                                                                                            | $     390,909  | $     232,364  |
|                                                                                                                                            |   |   |
| Income from        operations                                                                                                                   | $     794,815  | $     535,600  |
|                                                                                                                                            |   |   |
| Net Income                                                                                                                                      | $     794,815  | $     535,600  |
|                                                                                                                                            |   |   |
| Earnings per share                                                                                                                              | $          0.71  | $          0.47  |
|                                                                                                                                            |   |   |
| Dividends per share                                                                                                                             | $          0.38  | $          0.38  |
|                                                                                                                                            |   |   |
| See accompanying        notes.                                                                                                                  |

 

 

 

| KENTUCKY INVESTORS,        INC.                                                                                                                 |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
| Condensed        Consolidated Income Statements (Unaudited)                                                                                     |
|                                                                                                                                            |
|                                                                                                                                            | Six Months Ended June        30 |
|                                                                                                                                            | 2001 | 2000 |
| REVENUES                                                                                                                                        |   |   |
|                                                                                                                                            |   |   |
|   Premiums        and other considerations                                                                                            | $25,217,854  | $23,966,065 |
|   Investment        income, net of expenses                                                                                           | 9,078,223  | 8,259,035 |
|   Realized        gain on investments, net                                                                                            | 165,555  | 67,368 |
|   Other        income                                                                                                                 |        526,290  |        516,661 |
|                                                                                                                                            |   |   |
|       Total        revenues                                                                                       | $34,987,922  | $32,809,129 |
|                                                                                                                                            |   |   |
| BENEFITS AND EXPENSES                                                                                                                           |   |   |
|                                                                                                                                            |   |   |
|   Death and        other policyholder benefits                                                                                        | $15,108,689  | $13,945,112  |
|   Guaranteed        annual endowments                                                                                                 | 392,497  | 409,123  |
|   Dividends        to policyholders                                                                                                   | 374,218  | 377,287  |
|   Increase        in benefit reserves and            unearned premiums                                            | 9,514,020  | 9,269,508  |
|   Amortization        of deferred            acquisition costs, net                                               | (724,332) | (607,009) |
|   Commissions                                                                                                                         | 2,997,876  | 3,089,194  |
|   Other        insurance expenses                                                                                                     |    5,070,300  |    4,647,288  |
|                                                                                                                                            |   |   |
|       Total        benefits and expenses                                                                          | $32,733,268  | $31,130,503  |
|                                                                                                                                            |   |   |
| Income from        operations before Federal          income tax and minority interest          in net income of subsidiary | $  2,254,654  | $  1,678,626  |
|                                                                                                                                            |   |   |
| Provision for income        taxes:                                                                                                              |   |   |
|   Current                                                                                                                             | $     149,663  | $     146,852  |
|   Deferred                                                                                                                            |       618,000  |       395,178  |
|                                                                                                                                            |   |   |
|                                                                                                                                            | $     767,663  | $     542,030  |
|                                                                                                                                            |   |   |
| Income from        operations                                                                                                                   | $  1,486,991  | $  1,136,596  |
|                                                                                                                                            |   |   |
| Net Income                                                                                                                                      | $  1,486,991  | $  1,136,596  |
|                                                                                                                                            |   |   |
| Earnings per share                                                                                                                              | $          1.31  | $          0.99  |
|                                                                                                                                            |   |   |
| Dividends per share                                                                                                                             | $          0.38  | $          0.38  |
|                                                                                                                                            |   |   |
| See accompanying        notes.                                                                                                                  |

 

 

 

| KENTUCKY INVESTORS,        INC.                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Condensed        Consolidated Statements of Cash Flow (Unaudited)                                                                                                |
|                                                                                                                                                             |
|                                                                                                                                                             | Six Months Ended June        30 |
|                                                                                                                                                             | 2001 | 2000 |
|                                                                                                                                                             |   |   |
| Net cash provided by        operating activities                                                                                                                 | $ 11,209,315  | $ 10,413,176  |
|                                                                                                                                                             |   |   |
| Investing activities                                                                                                                                             |   |   |
|   Securities        available-for-sale:                                                                                                                |   |   |
|     Purchases                                                                                                                                | $(20,984,515) | $(13,061,078) |
|     Sales        and maturities                                                                                                              | 12,516,556  | 8,784,202  |
|   Other        investments:                                                                                                                            |   |   |
|     Cost        of acquisition                                                                                                               | (3,425,007) | (3,762,167) |
|     Sales        and maturities                                                                                                              | 3,389,568  | 1,173,071  |
|   Net        purchase of Franklin American            Life Insurance Company policy            obligations     | 0  | (661,717) |
|   Other        investing activities                                                                                                                    |           (2,825) |         (96,416) |
|                                                                                                                                                             |   |   |
| Net cash used by        investing activities                                                                                                                     | $ (8,506,223) | $  (7,624,105) |
|                                                                                                                                                             |   |   |
| Financing Activities                                                                                                                                             |   |   |
|   Receipts        from universal life policies            credited to policyholder            account balances | $          2,597,870  | $ 2,300,391  |
|   Return of        policyholder account            balances on universal            life policies              | (4,231,618) | (4,060,151) |
|   Net        proceeds from notes payable                                                                                                               | 353,848  | 0  |
|   Other        financing activities                                                                                                                    |       (876,324) |       (471,174) |
|                                                                                                                                                             |   |   |
| Net cash used by        financing activities                                                                                                                     | $  (2,156,224) | $         (2,230,934) |
|                                                                                                                                                             |   |   |
| Increase in cash and        cash equivalents                                                                                                                     | $            546,868  | $           558,137  |
|                                                                                                                                                             |   |   |
| Cash and cash        equivalents at beginning          of period                                                                                       |     3,324,447  |     2,428,652  |
|                                                                                                                                                             |   |   |
| Cash and cash        equivalents at end of period                                                                                                                | $   3,871,315  | $ 2,986,789  |
|                                                                                                                                                             |   |   |
| See accompanying        notes.                                                                                                                                   |

 

 

**** 

| KENTUCKY INVESTORS,        INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| NOTES TO CONDENSED        CONSOLIDATED FINANCIAL STATEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| June 30, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| NOTE A - Nature of        Operations:****Kentucky Investors, Inc. (Kentucky        Investors) is the holding company of Investors Heritage        Life Insurance Company (Investors Heritage), Investors        Heritage Printing, Inc., a printing company and Investors        Heritage Financial Services Group, Inc., an insurance        marketing company. These entities are collectively        hereinafter referred to as the "Company". The        operations of Kentucky Investors are principally that of        its life insurance company, Investors Heritage. The        operations of the non-insurance subsidiaries of Kentucky        Investors accounts for less than 1% of the Company's        total operations.                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| The Company's        operations involve the sale and administration of various        insurance and annuity products, including, but not        limited to, participating, non-participating, whole life,        limited pay, universal life, annuity contracts, credit        life, credit accident and health and group insurance        policies. The principal markets for the Company's        products are in the Commonwealths of Kentucky and        Virginia, and the states of North Carolina, South        Carolina, Ohio, Indiana, Florida, Tennessee, Illinois,        Georgia, West Virginia, Arizona, Michigan, Mississippi        and Texas.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| NOTE B - Basis of        Presentation:****The accompanying unaudited condensed        consolidated financial statements of the Company have        been prepared in accordance with accounting principles        generally accepted in the United States for interim        financial information and with the instructions to Form        10-Q and Article 10 of Regulation S-X. Accordingly, they        do not include all of the information and footnotes        required by accounting principles generally accepted in        the United States for complete financial statements. In        the opinion of management, all adjustments (consisting of        normal recurring accruals) considered necessary for a        fair presentation have been included. Operating results        for the six months ended June 30, 2001, are not        necessarily indicative of the results that may be        expected for the year ending December 31, 2001. For        further information, refer to the consolidated financial        statements and footnotes thereto for the year ended        December 31, 2000, included in the Company's Annual        Report on Form 10-K. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| The preparation of        financial statements in conformity with accounting        principles generally accepted in the United States        requires management to make estimates and assumptions        that affect the amounts reported in the financial        statements and accompanying notes. Actual results could        differ from those estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Certain prior period        amounts have been reclassified to conform to the current        period presentations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| NOTE C - Earnings per        Share:****Earnings per share of common stock were        computed based on the weighted average number of common        shares outstanding during each period. The number of        shares used in this computation for the Company is        1,137,081 and 1,147,134 for June 30, 2001 and 2000,        respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| NOTE D - Segment        Data:****The Company operates in four segments as        shown in the following table. All segments include both        individual and group insurance. Identifiable revenues and        expenses are assigned directly to the applicable segment.        Net investment income is generally allocated to the        insurance and the corporate segments in proportion to        policy liabilities and stockholders' equity,        respectively. Corporate segment results for the parent        company, Investors Heritage Printing, Inc. and Investors        Heritage Financial Services Group, after elimination of        intercompany amounts, are presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

|                                                         | Three Months Ended                                |
|--------------------------------------------------------------|---------------------------------------------------|
|                                                         | June 30, 2001                                     | June 30,        2000 |
|                                                         |                                              |   |
| Revenues:                                                    |                                              |   |
|   Preneed        & Burial Products             | $13,797,495                                  | $12,333,803  |
|   Traditional        & Universal Life Products | 3,428,337                                    | 3,397,671  |
|   Credit        Insurance Products &           |                                              |   |
|     administrative        Services       | (11,487)                                          | 91,679  |
|   Corporate        & Other                     |       593,062  |       494,543  |
|                                                         | $17,807,407                                  | $16,317,696  |
|                                                         |                                              |   |
| Pre-Tax Income from        Operations:                       |                                              |   |
|   Preneed        & Burial Products             | $     652,181       | $     582,657  |
|   Traditional        & Universal Life Products | 340,588                                      | 56,604  |
|   Credit        Insurance Products &           |                                              |   |
|     Administrative        Services       | 55,893                                       | 13,989  |
|   Corporate        & Other                     |       137,062  |       114,714  |
|                                                         | $  1,185,724                       | $     767,964  |
|                                                         |                                              |   |
|                                                         |                                              |   |

|                                                         | Six Months Ended                                  |
|--------------------------------------------------------------|---------------------------------------------------|
|                                                         | June 30, 2001                                     | June 30,        2000 |
|                                                         |                                              |   |
| Revenues:                                                    |                                              |   |
|   Preneed        & Burial Products             | $27,064,019                                  | $24,739,041  |
|   Traditional        & Universal Life Products | 6,608,757                                    | 6,746,275  |
|   Credit        Insurance Products &           |                                              |   |
|     Administrative        Services       | 109,650                                      | 261,569  |
|   Corporate        & Other                     |    1,205,496                  |    1,062,244  |
|                                                         | $34,987,922                                  | $32,809,129  |
|                                                         |                                              |   |
| Pre-Tax Income from        Operations:                       |                                              |   |
|   Preneed        & Burial Products             | $  1,105,491                       | $     960,982  |
|   Traditional        & Universal Life Products | 721,205                                      | 211,040  |
|   Credit        Insurance Products &           |                                              |   |
|     Administrative        Services       | 101,832                                      | 99,341  |
|   Corporate        & Other                     |       326,126  |       407,263  |
|                                                         | $  2,254,654                       | $  1,678,626  |
|                                                         |

| NOTE E - Federal        Income Taxes:****Current taxes are provided based on        estimates of the projected effective annual tax rate.        Deferred taxes reflect the net tax effects of temporary        differences between the carrying amounts of assets and        liabilities for financial reporting purposes and the        amounts used for income tax purposes.**** |
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| NOTE F –        Comprehensive Income:****The components of        comprehensive income (loss), net of related tax, are as        follows:                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                |

|                                                   | Three Months Ended                     |
|--------------------------------------------------------|----------------------------------------|
|                                                   | June 30, 2001                          | June 30,        2000 |
|                                                   |                                   |   |
| Net income                                             | $    794,815  | $    535,600  |
| Net unrealized gains        (losses) on available-for- |                                   |   |
| sale Securities                                        | (1,527,859)                            |   (1,415,860) |
| Comprehensive income        (loss)                     | $   (733,044)           | $   (880,260) |
|                                                   |                                   |   |

|                                                   | Six Months Ended  |
|--------------------------------------------------------|-------------------|
|                                                   | June 30, 2001     | June 30,        2000 |
|                                                   |              |   |
| Net income                                             | $ 1,486,991  | $   1,136,596  |
| Net unrealized gains        (losses) on available-for- |              |   |
| sale Securities                                        | 972,489      | (512,412) |
| Comprehensive income                                   | $ 2,459,480  | $     624,184  |

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| NOTE G – New        Accounting Pronouncements:****In June 2001, the        Financial Accounting Standards Board issued Statements of        Financial Accounting Standards No. 141, Business        Combinations, and No. 142, Goodwill and Other Intangible        Assets, effective for fiscal years beginning after        December 15, 2001. Under the new rules, goodwill will no        longer be amortized but will be subject to annual        impairment tests in accordance with the Statements. Other        intangible assets will continue to be amortized over        their useful lives.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| The Company will        apply the new rules on accounting for goodwill and other        intangible assets beginning in the first quarter of 2002.        During 2002, the Company will perform the first of the        required impairment tests of goodwill as of January 1,        2002 and has not yet determined what the effect of these        tests will be on the earnings and financial position of        the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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| ITEM 2. Management's        Discussion and Analysis of Financial Condition and        Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| Kentucky Investors,        Inc. (the "Company") is incorporated under the        laws of the Commonwealth of Kentucky and wholly owns        Investors Heritage Life Insurance Company        ("Investors Heritage"), a life insurance        company also incorporated under the laws of the        Commonwealth of Kentucky, Investors Heritage Financial        Services Group, Inc. ("FSG"), an insurance        marketing company which was formed in 1994, and Investors        Heritage Printing, Inc. ("IHP"), a printing        company that provides printing to Investors Heritage and        other unaffiliated parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| Investors Heritage        offers a full line of life insurance products including,        but not limited to, whole life, term life, single premium        life, multi-pay life and annuities. Investors Heritage's        primary lines of business are insurance policies and        annuities utilized to fund preneed funeral contracts,        credit life and credit disability insurance, and term        life and reducing term life sold through financial        institutions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| During the second        quarter 2001, Investors Heritage introduced a new whole        life final expense product. The new product, Heritage        Final Expense, will replace the Legacy 2000 Final Expense        series and will be marketed through funeral homes and        independent agencies. The Company has also entered into a        new reinsurance agreement with regard to this new product        to reduce initial surplus strain and level out future        profits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| The Company's        operating earnings are derived primarily from revenues        generated from the sale of these products by Investors        Heritage, plus the Company's investment results,        including realized gains (losses), less interest        credited, benefits to policyholders and expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| While the Company        continues to expand the operations of FSG and IHP, less        than 1% of the Company's total operations were generated        by those subsidiaries. As expected, more than 10% of        FSG's revenues during the second quarter 2001 were        derived from the sale of the Investors Heritage's credit        insurance products. The Company anticipates a dividend to        be paid by FSG during the third and fourth quarters in        2001. The Company anticipates a small dividend to be        declared and paid by IHP during 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| The Company's primary        uses of cash are operating expenses, debt service and        dividend payments, and the Company's principal sources of        cash are the dividends paid to it by Investors Heritage,        FSG and IHP. Investors Heritage's principal sources of        cash are from the sale of life insurance policies and        investment income, including realized gains (losses),        less benefits to policyholders and expenses. Therefore,        the remainder of the discussion will deal with the        financial condition and results of operations of        Investors Heritage.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Investments,        Liquidity and Capital Resources                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| Premiums, which        include mortality and expense charges, and investment        income are Investors Heritage's primary sources of cash        flow used to meet short-term and long-term cash        requirements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Investors Heritage's        short-term obligations consist primarily of policyholder        benefits and operating expenses. Investors Heritage has        historically been able to meet these obligations out of        operating cash, premiums and investment income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| Management is not        aware of any commitments or unusual events that could        materially affect the Company's capital resources. During        the fourth quarter of 2000 Kentucky Investors borrowed        $2,000,000 on a long-term basis; however, there was no        short-term external debt. Kentucky Investors utilized        $200,000 of the loan amount to reduce debt to Investors        Heritage and $1,800,000 was loaned to Investors Heritage        in exchange for a surplus note. The note calls for        Investors Heritage to pay, on or before the first day of        each quarter, interest at an 6.0% annual rate, upon prior        approval by the Kentucky Department of Insurance. Such        interest may be paid out of Investors Heritage's earned        surplus, operating income, or paid-in and contributed        surplus. The Company also has a $150,000 line-of-credit        note with a bank, of which $-0- is outstanding at June        30, 2001. However, the Company and Investors Heritage        will continue to explore various opportunities including        corporate reorganizations, acquisitions and purchasing        blocks of business from other companies, which may        dictate a need for either long-term or short-term debt.                                                                                                                                                                                                                                                  |
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| Investors Heritage        has maintained a sound, conservative investment strategy.        At June 30, 2001, 85.7% of invested assets consisted of        fixed income public bonds compared to 85.3% at December        31, 2000. Fixed income assets are managed by Conning        Asset Management Company, an independent portfolio        manager.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Additionally,        Investors Heritage also engages in commercial and        residential mortgage lending with approximately 95% of        these investments being in commercial properties. All        mortgage loans are originated in-house and all loans are        secured by first mortgages on the real estate. At June        30, 2001 and at December 31, 2000, 9.2% of invested        assets consisted of mortgage loans compared to 9.2% at        December 31, 2000. Management anticipates funding several        new mortgage loan investments during the remainder of        2001 to maintain a similar or slightly higher percentage        of mortgage loans to total invested assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| Investors Heritage's        conservative approach in the product development area and        the strength and stability of its fixed income and        mortgage loan portfolios provide adequate liquidity both        in the short-term and the long-term. At June 30, 2001,        Investors Heritage's fixed income investments were 99.72%        investment grade as rated by Standard & Poor's,        compared to 100% at December 31, 2000. None of Investors        Heritage's fixed income assets are in default and there        has been no material change in the distribution of its        fixed income portfolio.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| Investors Heritage's        principal long-term obligations are fixed contractual        obligations incurred in the sale of its life insurance        products. The premiums charged for these products are        based on conservative and actuarially sound assumptions        as to mortality, persistency and interest. Investors        Heritage believes these assumptions will produce revenues        sufficient to meet its future contractual benefit        obligations and operating expenses, and provide an        adequate profit margin.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| Total premium income        (net of reinsurance) for the second quarter increased        8.4% when compared to the second quarter of 2000 and        increased 5.2% for the first six months of 2001 when        compared to the same period in 2000, due primarily to        increases in pre-need sales. Net investment income for        the second quarter 2001 compared to the second quarter of        2000 increased 9.7% and increased 9.9% for the first six        months of 2001 when compared to the same period in 2000        primarily due to the increase in Investors Heritage's        asset base. Overall Revenue for the second quarter 2001        increased 9.1% when compared to the second quarter of        2000 and increased 6.6% for the first six months of 2001        when compared to the same period in 2000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| Total Benefits and        Expenses were 6.9% higher in the first quarter of 2001        when compared to the same quarter of 2000 and 5.1% higher        the first six months of 2001 when compared to the same        period in 2000 primarily due to higher premium        production. After providing for federal income taxes, the        Company's Net Income was $794,815 with Earnings per share        of $0.71 for the second three months of 2001 as compared        to Net Income of $535,600 and Earnings per share of $0.47        for the same period in 2000. The Company's Net Income was        $1,486,991 with Earnings per share of $1.31 for the first        six months of 2001 as compared to Net Income of        $1,136,596 and Earnings per share of $.99 for the same        period in 2000. A dividend of $0.38 per share was paid        April 6, 2001, to shareholders of record on March 23,        2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Business Segments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| Management internally        evaluates the performance of Investors Heritage        operations by the following business segments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| Preneed & Burial        Products includes both life and annuity products sold by        funeral directors or affiliated agents to fund        prearranged funerals. Revenues for this segment were        11.9% higher for the second quarter of 2001 when compared        to the same period of 2000 and 9.4% higher in the first        six months of 2001 when compared to the same period of        2000. The increase is due to a significant increase in        sales from Investors Heritage's Legacy 2000 Series of        Preneed and Burial Products used in the preneed funeral        and final expense markets. Pre-Tax Income from Operations        for the second quarter 2001 was 11.9% higher than the        comparable period for 2000 and 15.0% higher in the first        six months of 2001 when compared to the same period of        2000 due primarily to better mortality than the first six        months of 2000. Investors Heritage plans to continue its        expansion of territory and recruitment of agents in the        Preneed and Burial insurance market.                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| Traditional &        Universal Life Products****includes traditional life        and group life insurance products, annuities (primarily        qualified) and universal life products. Revenues for this        segment were 0.9% higher for the first six months of 2001        when compared to the first six months of 2000 and 2.0%        lower for the first six months of 2001 when compared to        the same period in 2000. Pre-Tax Income from Operations        for the first six months 2001 was 501.7% higher than the        comparable period for 2000 and 241.7% higher for the        first six months of 2001 when compared to the same period        in 2000. Revenues for the first and second quarters 2001        were slightly lower than projected. Pre-Tax Income from        Operations for the first and second quarters 2000 was        significantly higher than projected primarily due to        lower than projected claims.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| Credit Insurance        Products & Administrative Services includes the        marketing and administration of credit life and credit        accident & health insurance products. Revenues were        112.5% lower and Pre-Tax Income from Operations was        299.6% higher for the second quarter of 2001 when        compared to the second quarter of 2000. Revenues were        58.1% lower for the first six months of 2001 when        compared to the same period in 2000. Pre-Tax Income was        2.5% higher for the first six months of 2001 when        compared to the same period in 2000. the reduction in        Revenues is primarily due to the reduction in the need        for credit insurance because of fewer consumer loans        being made in 2001 when compared to the comparable        periods in 2000. Higher Pre-Tax Income is primarily due        to favorable claims experience.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| Corporate & Other        consists of corporate accounts measured primarily by        stockholders' paid-in capital, contributed surplus,        earned surplus, property and equipment, and other minor        business lines which include group annuities and group        and individual accident and health products. Revenues        were 19.9% higher for the second three months of 2001        when compared to the same period in 2000. Revenues were        13.6% higher for the first six months of 2001 when        compared to the same period in 2000. Pre-Tax Income from        Operations was 19.5% higher for the second three months        of 2001 when compared to the same period in 2000 or these        increases are primarily due to net realized gains from        the sale of investments. Pre-Tax Income was 19.9% lower        for the first six months of 2001 when compared to the        same period in 2000. The decrease in Pre-Tax Income is        primarily due to a release of policy reserves released        due to the reinsuring of a closed block of individual        accident and health business which occurred in the first        quarter of 2000. The Pre-Tax Income loss for the first        six months of 2001 is due to net realized losses from the        sale of investments.                                                                                                                                                                                                                     |
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| Federal Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| Current taxes are        provided based on estimates of the projected effective        annual tax rate. Deferred taxes reflect the net tax        effects of temporary differences between the carrying        amounts of assets and liabilities for financial reporting        purposes and the amounts used for income tax purposes.        The effective tax rate for the second quarter of 2001 was        33.0% and 30.3% for the same period in 2000. The        effective tax rate for the first six months of 2001 was        34.0% and 32.3% for the same period in 2000. The increase        in the effective tax rate is due primarily to the reduced        benefit of the small life insurance company deduction        resulting from an increase in net income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| Forward Looking        Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| The Company cautions        readers regarding certain forward-looking statements        contained in this report and in any other statements made        by, or on behalf of, the Company, whether or not in        future filings with the Securities and Exchange        Commission (the "SEC"). Forward-looking        statements are statements not based on historical        information and which relate to future operations,        strategies, financial results, or other developments.        Statements using verbs such as "expect,"        "anticipate," "believe" or words of        similar import generally involve forward-looking        statements. Without limiting the foregoing,        forward-looking statements include statements which        represent the Company's beliefs concerning future levels        of sales and redemptions of Investors Heritage's        products, investment spreads and yields, or the earnings        and profitability of the Company's or Investors        Heritage's activities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| Forward-looking        statements are necessarily based on estimates and        assumptions that are inherently subject to significant        business, economic and competitive uncertainties and        contingencies, many of which are beyond the Company's        control and many of which are subject to change. These        uncertainties and contingencies could cause actual        results to differ materially from those expressed in any        forward-looking statements made by, or on behalf of, the        Company. Whether or not actual results differ materially        from forward-looking statements may depend on numerous        foreseeable and unforeseeable factors and developments.        Some of these may be national in scope, such as general        economic conditions, changes in tax law and changes in        interest rates. Some may be related to the insurance        industry generally, such as pricing competition,        regulatory developments, industry consolidation and the        effects of competition in the insurance business from        other insurance companies and other financial        institutions operating in the Company's market area and        elsewhere. Others may relate to the Company specifically,        such as credit, volatility and other risks associated        with the Company's investment portfolio. The Company        cautions that such factors are not exclusive. The Company        disclaims any obligation to update forward-looking        information. |
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| PART II – OTHER        INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Item 1. Legal        Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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| The Company is not        involved in any legal proceedings. From time to time        Investors Heritage is involved in litigation relating to        claims arising out of its operations in the normal course        of business. As of August 13, 2001, Investors Heritage is        not a party to any legal proceedings, the adverse outcome        of which, in management's opinion, individually or in the        aggregate, would have a material adverse effect on        Investors Heritage's or the Company's financial condition        or results of operations. |
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| Item 2. Changes in        Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| Item 3. Defaults Upon        Senior Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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| None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| Item 4. Submission of        Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (a) | The annual meeting of        the stockholders was held May 10, 2001 at 11:00 a.m. The        purpose of the meeting was to elect directors. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (b) | Three (3) directors        were elected to hold office for a term of three (3) years        or until their successors are duly elected and qualified. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | The following        individuals were elected for a term of three (3) years        and the number of votes cast was as follows: |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Gordon Duke - Number        of Votes Cast FOR - 949,909.764; WITHHELD - 576.44 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Robert M. Hardy, Jr.        - Number of Votes Cast FOR - 950,401.564; WITHHELD -        564.04 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Harry Lee Waterfield        II - Number of Votes Cast FOR - 949,552.844; WITHHELD -        933.36 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | The other directors        whose terms will continue after the meeting are: |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | David Reed        Helen S. Wagner        Harold G. Doran        Jerry F. Howell        Jerry F. Howell, Jr. |
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| Item 5. Other        Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
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| None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| Item 6. Exhibits and        Reports on Form 8-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (a) | Exhibits. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | No exhibits were        filed for the quarter ended June 30, 2001. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (b) | Reports on Form 8-K |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | No reports on Form        8-K were filed for the quarter ended June 30, 2001. |

 

 

| SIGNATURES                                                                                                                                                                                                    |
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| 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. |
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| KENTUCKY INVESTORS,        INC.                                                                                                                                                                               |
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| /s/                                                                                                                                                                                                           |
| BY: HARRY LEE        WATERFIELD II, PRESIDENT                                                                                                                                                                 |
| DATE: August 13, 2001                                                                                                                                                                                         |
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| /s/                                                                                                                                                                                                           |
| BY: JIMMY R. MCIVER,        TREASURER                                                                                                                                                                         |
| DATE: August 13, 2001                                                                                                                                                                                         |
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