Sample Insurance Company
	Income Statement - GAAP
	For the Three Months Ending March 31, 2008
		MTD	MTD	MTD	MTD	MTD	MTD	MTD	MTD	MTD	MTD	MTD	MTD	YTD		YTD
		Jan 2008	Feb 2008	Mar 2008	Apr 2008	May 2008	Jun 2008	Jul 2008	Aug 2008	Sep 2008	Oct 2008	Nov 2008	Dec 2008	Mar 2008		Mar 2007
	PREMIUMS:
	Written Premiums Direct	$   1,347,844	$   1,801,569	$   2,127,676	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$   5,277,089		$              -
	Change in Unearned Premium - Direct	(1,046,158)	(1,391,415)	(1,520,252)	-	-	-	-	-	-	-	-	-	(3,957,825)		-
	Premiums Earned - Direct	$      301,686	$      410,154	$      607,424	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$   1,319,264		$              -
	Written Premiums Ceded	$       (91,250)	$       (91,250)	$        76,950	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$    (105,550)		$              -
	Change in Unearned Premium - Ceded	-	-	-	-	-	-	-	-	-	-	-	-	-		-
	Premiums Earned - Ceded	$       (91,250)	$       (91,250)	$        76,950	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$    (105,550)		$              -
	NET PREMIUMS EARNED	$      210,436	$      318,904	$      684,374	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$   1,213,714		$              -
	Policy Fee Income	$        37,250	$        49,841	$        59,986	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$      147,077		$              -
	LOSSES:
	Paid Loss and LAE - Direct (net of salvage)	$        11,000	$        40,210	$      134,157	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$      185,366		$              -
	Paid Loss and LAE - Ceded (net of salvage)	-	-	-	-	-	-	-	-	-	-	-	-	-		-
	Paid AO Expenses	1,500	2,100	2,700	-	-	-	-	-	-	-	-	-	6,300		-
	Change in Loss and Expense Reserves - Net	47,775	9,277	227,797	-	-	-	-	-	-	-	-	-	284,849		-
	Change in IBNR Reserves - Net	1,000	-	-	-	-	-	-	-	-	-	-	-	1,000		-
	Change in AO Expense Reserve	800	-	-	-	-	-	-	-	-	-	-	-	800		-
	TOTAL LOSSES	$        62,075	$        51,587	$      364,654	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$      478,316		$              -
	ACQUISITION COSTS:
	Commissions	$        67,659	$        99,590	$      139,340	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$      306,589		$              -
	Ceding Commissions	-	-	-	-	-	-	-	-	-	-	-	-	-		-
	Policy Fees	12,931	17,860	20,584	-	-	-	-	-	-	-	-	-	51,375		-
	Premium Taxes	4,860	15,866	(50,798)	-	-	-	-	-	-	-	-	-	(30,072)		-
	CPIC Assessment	18,769	24,678	29,045	-	-	-	-	-	-	-	-	-	72,492		-
	FCHF Assessment	13,056	18,053	21,259	-	-	-	-	-	-	-	-	-	52,368		-
	TOTAL ACQUISITION COSTS	$      117,275	$      176,047	$      159,430	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$      452,752		$              -
	OTHER COSTS:
	Advertising	$                    -	$           3,750	$                    -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$           3,750		$              -
	Bad Debt	72	198	-	-	-	-	-	-	-	-	-	-	270		-
	Boards, Bureaus & Associations	58,942	12,754	26,081	-	-	-	-	-	-	-	-	-	97,776		-
	Salaries, Payroll Taxes and Benefits	42,010	35,385	30,961	-	-	-	-	-	-	-	-	-	108,357		-
	Temporary Employees	70	295	334	-	-	-	-	-	-	-	-	-	699		-
	PEO Fees	(530)	640	408	-	-	-	-	-	-	-	-	-	518		-
	Insurance	628	656	656	-	-	-	-	-	-	-	-	-	1,939		-
	Travel and Entertainment	470	1,590	1,610	-	-	-	-	-	-	-	-	-	3,670		-
	Rent and Office	1,488	1,601	1,370	-	-	-	-	-	-	-	-	-	4,459		-
	Equipment	(50)	1,449	-	-	-	-	-	-	-	-	-	-	1,399		-
	Depreciation	482	796	814	-	-	-	-	-	-	-	-	-	2,092		-
	Printing and Stationery	-	-	2,066	-	-	-	-	-	-	-	-	-	2,066		-
	Postage and Telephone	477	486	1,486	-	-	-	-	-	-	-	-	-	2,449		-
	Professional Fees	4,452	6,365	22,619	-	-	-	-	-	-	-	-	-	33,436		-
	Licenses and Fees	-	700	115	-	-	-	-	-	-	-	-	-	815		-
	Contributions	-	-	-	-	-	-	-	-	-	-	-	-	-		-
	Conventions and Seminars	-	477	1,068	-	-	-	-	-	-	-	-	-	1,544		-
	Taxes	64	64	64	-	-	-	-	-	-	-	-	-	193		-
	Bank Service Charges	7,099	1,341	3,161	-	-	-	-	-	-	-	-	-	11,601		-
	Miscellaneous	-	-	-	-	-	-	-	-	-	-	-	-	-		-
	TOTAL OTHER COSTS	$      115,674	$        68,546	$        92,812	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$      277,032		$              -
	NET INVESTMENT INCOME:	$        61,800	$        46,571	$        56,652	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$      165,022		$              -
	INTEREST EXPENSE - SURPLUS NOTE:	$       (24,774)	$       (23,176)	$       (24,774)	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$       (72,724)		$              -
	NET INCOME BEFORE TAXES	$       (10,313)	$        95,960	$      159,342	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$      244,989		$              -
	TAXES:
	Federal Income Taxes	$                    -	$                    -	$                    -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$                    -		$              -
	State Income Taxes	-	-	-	-	-	-	-	-	-	-	-	-	-		-
	TOTAL TAXES	$                    -	$                    -	$                    -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$                    -		$              -
	NET INCOME	$       (10,313)	$        95,960	$      159,342	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$              -	$      244,989		$              -