UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 2003 Commission File Number: 2-35669
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SOUTHERN SECURITY LIFE INSURANCE COMPANY
Exact Name of Registrant.
FLORIDA 59-1231733
- ------------------------------- -------------------------
(State or other jurisdiction of (IRS Identification Number)
incorporation or organization)
755 Rinehart Road, Lake Mary, Florida 32746
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including Area Code (407) 321-7113
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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 XX NO
----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class A Common Stock, $1.00 par value 2,003,388
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Title of Class Number of Shares Outstanding
as of March 31, 2003
SOUTHERN SECURITY LIFE INSURANCE COMPANY
FORM 10-Q
QUARTER ENDED MARCH 31, 2003
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1 Financial Statements Page No.
- ------ --------
Statement of Operations - Three Months ended March 31, 2003 and 2002
(unaudited)..............................................3
Balance Sheet - March 31, 2003 (unaudited)
and December 31, 2002...................................4-5
Statement of Cash Flows - Three Months ended March 31,
2003 and 2002 (unaudited).................................6
Notes to Condensed Financial Statements...................7
Item 2
Management's Discussion and Analysis.................. 7-10
Item 3
Quantitative and Qualitative Disclosure of Market Risk...10
Item 4
Controls and Procedures..................................10
PART II - OTHER INFORMATION
Other Information.....................................10-12
Signature Page...........................................13
Certifications........................................14-16
SOUTHERN SECURITY LIFE INSURANCE COMPANY
Statement of Operations
(Unaudited)
Three Months Ended
March 31,
2003 2002
(Unaudited) (Unaudited)
----------- -----------
Revenues:
- --------
Net insurance revenues $1,774,711 $1,592,520
Net investment income 1,001,398 951,043
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2,776,109 2,543,563
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Benefits, claims and expenses:
- -----------------------------
Benefits and claims 1,341,796 1,053,208
Amortization of deferred policy
acquisition costs 400,077 507,627
Operating expenses 922,473 928,042
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2,664,346 2,488,877
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Income before income taxes 111,763 54,686
Income tax expense 22,785 11,000
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Net income (loss) $88,978 $43,686
========== ==========
Basic and diluted net income
per share of common stock $0.04 $0.02
===== =====
Weighted average outstanding
common shares - basic and diluted 2,003,388 1,907,989
========== ==========
See accompanying notes to condensed financial statements.
SOUTHERN SECURITY LIFE INSURANCE COMPANY
BALANCE SHEET
March 31, 2003 December 31,
(Unaudited) 2002
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Assets:
Investments:
Fixed maturities held-to-maturity $3,916,640 $3,971,539
Securities available-for-sale,
at fair value:
Fixed maturities 17,930,913 18,439,961
Equity securities 283,290 309,218
Mortgage loans 2,237,274 2,244,597
Policy and student loans 8,006,647 8,027,736
Short-term investments 15,704,548 16,283,759
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Total Investments 48,079,312 49,276,810
----------- -----------
Cash and cash equivalents 4,327,601 3,067,284
Accrued investment income 677,693 473,789
Deferred policy acquisition costs 13,867,362 13,391,535
Policyholders' account balances on
deposit with reinsurer 6,911,310 6,955,691
Reinsurance receivable
433,753 279,090
Receivables:
Agent balances, net 499,450 776,244
Other 609,842 614,150
Property and equipment, net, at cost 2,401,444 2,430,404
----------- -----------
Total assets $77,807,767 $77,264,997
=========== ===========
See accompanying notes to condensed financial statements.
SOUTHERN SECURITY LIFE INSURANCE COMPANY
BALANCE SHEET (Continued)
March 31, 2003 December 31,
(Unaudited) 2002
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Liabilities and Shareholders' Equity:
Liabilities:
Policy liabilities and accruals $3,699,749 $3,517,481
Future policy benefits:
Policyholders' account balances 47,082,276 47,222,857
Unearned revenue 4,614,282 4,551,265
Other policy claims and benefits payable 1,116,871 701,312
Other policyholders' funds, dividend
and endowment accumulations 92,992 78,811
Funds held related to reinsurance treaties 1,325,386 1,334,963
Note payable to related party 1,000,000 1,000,000
Due to affiliated companies 108,381 83,941
General expenses accrued 91,779 98,480
Unearned investment income 367,022 355,529
Other liabilities 14,749 111,786
Income taxes 1,075,641 1,062,802
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Total liabilities 60,589,128 60,119,227
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Shareholders' equity:
Common stock, $1 par, authorized
3,000,000 shares; issued and out-
standing, 2,003,388 shares in 2003 and 2002 2,003,388 2,003,388
Capital in excess of par 4,267,189 4,267,189
Accumulated other comprehensive income (loss) 855,088 871,197
Retained earnings 10,092,974 10,003,996
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Total shareholders' equity 17,218,639 17,145,770
Commitments and contingencies -- --
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Total liabilities and shareholders' equity $77,807,767 $77,264,997
=========== ===========
See accompanying notes to condensed financial statements.
SOUTHERN SECURITY LIFE INSURANCE COMPANY
STATEMENT OF CASH FLOWS
(Unaudited)
Three Months Ended March 31,
2003 2002
---- ----
Net cash provided by operating activities $785,872 $788,287
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Cash flows provided by investing activities:
Proceeds from maturity of
held-to-maturity securities 60,088 808,635
Proceeds from maturity of available
for-sale securities 360,000 300,000
Mortgage loan repayments 7,323 9,641
Net change in short-term investments 579,210 1,396,256
Net change in policy and student loans 21,089 74,200
Acquisition of property and equipment (3,624) (17,447)
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Net cash provided by investing activities 1,024,086 2,571,285
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Cash flow used in financing activities:
Receipts from universal life and
certain annuity policies credited
to policyholder account balances 1,114,276 1,338,715
Return of policyholder balances
on universal life and certain
annuity policies (1,663,917) (1,855,907)
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Net cash used in financing activities (549,641) (517,192)
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Increase in cash and cash equivalents 1,260,317 2,842,380
Cash and cash equivalents
at beginning of period 3,067,284 1,969,055
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Cash and cash equivalents at end of period $4,327,601 $4,811,435
=========== ===========
See accompanying notes to condensed financial statements.
SOUTHERN SECURITY LIFE INSURANCE COMPANY
Notes to Condensed Financial Statements
March 31, 2003
(Unaudited)
1. Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared by
management in conformity with accounting principles generally accepted in the
United States of America for interim financial information and with the
instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include
all of the disclosures required by accounting principles generally accepted in
the United States of America for complete financial statements. All adjustments
and accruals considered necessary for fair presentation of financial information
have been included in the opinion of management, and are of a normal recurring
nature. Quarterly results of operations are not necessarily indicative of annual
results. These statements should be read in conjunction with the financial
statements and the notes thereto included in the Southern Security Life
Insurance Company 2002 Annual Report on Form 10-K for the fiscal year ended
December 31, 2002 (file number 2-35669).
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America 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.
The estimates susceptible to significant change are those used in determining
the liability for future policy benefits and claims. Although some variability
is inherent in these estimates, management believes the amounts provided are
adequate.
2. Comprehensive Income
For the three months ended March 31, 2003 and 2002, total comprehensive income
(loss) was $72,869 and $(112,511) , respectively.
Item 2. Management's Discussion and Analysis
Overview
This analysis of the results of operations and financial condition of Southern
Security Life should be read in conjunction with the Condensed Financial
Statements and Notes to the Condensed Financial Statements included in this
report.
The Company has primarily issued three types of insurance products: universal
life, 10-Pay Whole Life with an Annuity Rider, and final expense products.
Universal life provides insurance coverage with flexible premiums, within
limits, which allow policyholders to accumulate cash values. The accumulated
cash values are credited with tax-deferred interest, as adjusted by the Company
on a periodic basis. Deducted from the cash accumulations are administrative
charges and mortality costs. Should a policy surrender in its early years, the
Company assesses a surrender fee against the cash value accumulations based on a
graded formula.
Final expense products are traditional endowment type insurance policies written
for the senior market. Because the products are written to a senior market they
are designed to accommodate adverse health conditions. Because of the size of
the policies, the products are usually issued with only limited underwriting.
The coverage size of the policy is roughly equivalent to the insured's
anticipated funeral costs.
The 10-Pay Whole Life with an Annuity Rider product is designed for the student
loan market. The savings aspect of the Annuity Rider is marketed as a tool for
parents to help fund their children's higher education. The product is offered
to parents who have children under the age of 25.
The Company established a lead generation program that has been coupled with a
recruiting program for new sales agents to help generate new business.
An additional source of income to the Company is investment income. The Company
invests those funds deposited by policyholders of universal life and annuity
products in debt and equity securities, mortgage loans, and warehouse mortgage
loans on a short-term basis before selling the loans to investors in accordance
with the requirements and laws governing life insurance companies, in order to
earn interest and dividend income, a portion of which is credited back to the
policyholders. Interest rates and maturities of the Company's investment
portfolio play an important part in determining the interest rates credited to
policyholders.
Product profitability is affected by several different factors, such as
mortality experience (actual versus expected), interest rate spreads (excess
interest earned over interest credited to policyholders) and controlling policy
acquisition costs and other costs of operation. The results of any one reporting
period may be significantly affected by the level of death claims or other
policyholder benefits incurred due to the Company's relatively small size.
Results of Operations
First Quarter of 2003 Compared to First Quarter 2002
Total revenues increased by $232,000, or 9.1%, to $2,776,000 for the three
months ended March 31, 2003, from $2,544,000 for the three months ended March
31, 2002. Contributing to this increase was a $182,000 increase in net insurance
revenues.
Net insurance revenues increased by $182,000, or 11.4%, to $1,775,000 for the
three months ended March 31, 2003, from $1,593,000 for the three months ended
March 31, 2002. This increase was primarily the result of an increase in
traditional life sales.
Net investment income increased by $50,000, or 5.3%, to $1,001,000 for the three
months ended March 31, 2003, from $951,000 for the three months ended March 31,
2002. This increase was due to additional interest income earned on warehouse
mortgage loans.
Benefits and claims increased by $289,000 or 27.4%, to $1,342,000 for the three
months ended March 31, 2003, from $1,053,000 for the comparable period in 2002.
This increase was primarily due to an increase in death claims and future policy
benefits.
Amortization of deferred policy acquisition costs decreased by $108,000, or
21.2%, to $400,000 for the three months ended March 31, 2003, from $508,000 for
the comparable period in 2002. This decrease was in line with actuarial
assumptions.
Operating expenses decreased by $6,000, or .7%, to $922,000 for the three months
ended March 31, 2003, from $928,000 for the same period in 2002. This decrease
was primarily the result of reduced legal fees expended for litigation purposes
offset by increases in wages and benefits.
Liquidity and Capital Resources
The Company attempts to match the duration of invested assets with its
policyholder liabilities. The Company may sell investments other than those
held-to-maturity in the portfolio to help in this timing; however, to date, that
has not been necessary. The Company purchases short-term investments on a
temporary basis to meet the expectations of short-term requirements of the
Company's products. The Company's investment philosophy is intended to provide a
rate of return that will persist during the expected duration of policyholder
liabilities regardless of future interest rate movements.
The Company's investment policy is to invest predominantly in fixed maturity
securities, mortgage loans, and warehouse mortgage loans on a short-term basis
before selling the loans to investors in accordance with the requirements and
laws governing life insurance companies. Bonds owned by the Company amounted to
$21,848,000 as of March 31, 2003, as compared to $22,412,000 as of December 31,
2002. This represents 45% and 45% of the total investments as of March 31, 2003
and December 31, 2002, respectively. Generally, all bonds owned by the Company
are rated by the National Association of Insurance Commissioners. Under this
rating system, there are nine categories used for rating bonds. At March 31,
2003, and at December 31, 2002, the Company had investments in bonds in rating
categories three through nine, which are considered non-investment grade, of
$485,000.
The Company has classified certain of its fixed income securities as available
for sale, with the remainder classified as held to maturity. However, in
accordance with Company policy, any such securities purchased in the future will
be classified as held to maturity. Business conditions, however, may develop in
the future which may indicate a need for a higher level of liquidity in the
investment portfolio. In that event the Company believes it could sell
short-term investment grade securities before liquidating higher-yielding
longer-term securities.
The Company is subject to risk based capital guidelines established by statutory
regulators requiring minimum capital levels based on the perceived risk of
assets, liabilities, disintermediation, and business risk. At March 31, 2003 and
December 31, 2002, the Company exceeded the regulatory criteria.
Lapse rates measure the amount of insurance terminated during a particular
period. The Company's lapse rate for life insurance in 2002 was 11.9% as
compared to a rate of 13.8% for 2001. The 2003 lapse rate was approximately the
same as 2002.
At March 31, 2003, $8,792,082 of the Company's stockholders' equity represented
the statutory stockholders' equity. The Company cannot pay a dividend to its
parent company without the approval of insurance regulatory authorities.
The Company has no material commitments for capital expenditures.
Item 3. Quantitative and Qualitative Disclosure of Market Risk
There have been no significant changes since the annual report Form 10-K filed
for the year ended December 31, 2002.
Item 4. Controls and Procedures
The Company's Chief Executive Officer and its Chief Financial Officer (the
"Certifying Officers"), are responsible for establishing and maintaining
disclosure controls and procedures for the Company. The Certifying Officers have
concluded (based on their evaluation of these controls and procedures as of a
date within 90 days of the filing of this report) that the design and operation
of the Company's disclosure controls and procedures (as defined in Rule
13a-14(c) under the Securities Exchange Act of 1934) are effective. No
significant changes were made in the Company's internal controls or in other
factors that could significantly affect those controls subsequent to the date of
the evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
Part II Other Information:
Item 1. Legal Proceedings
An action was brought against the Company in July 1999 by Dorothy Ruth Campbell
in the Circuit Court of Escambia County, Alabama. The action arose out of a
denial of coverage under a $10,000 insurance policy. The claims were for breach
of contract, bad faith and fraudulent misrepresentation. In the action, Campbell
sought compensatory and punitive damages plus interest. The case was dismissed
by order of summary judgment on January 21, 2003. The appeal time, if appeal is
taken, is 42 days.
An action was brought against Southern Security Life Insurance Company by
National Group Underwriters, Inc. ("NGU") in state court in the State of Texas.
The case was removed by the Company to the United States District Court for the
Northern District of Texas, Fort Worth Division, with Civil No. 4:01-CV-403-E.
An Amended Complaint was filed on or about July 18, 2001. The Amended Complaint
asserts that NGU had a contract with the Company wherein NGU would submit
applications for certain policies of insurance to be issued by the Company. It
is alleged that disputes have arisen between NGU and the Company with regard to
the calculation and payment of certain advanced commissions as well as certain
production bonuses.
NGU alleged that it has been damaged far in excess of the $75,000 minimum
jurisdictional limits of this Court. NGU also seeks attorney's fees and costs as
well as prejudgment and postjudgment interest. A second amended complaint and a
third amended complaint that included a fraud claim were filed. A motion was
filed by the Company to dismiss the third amended complaint, including the fraud
claim. The court denied the motion. The Company has counterclaimed for what it
believes to be a debit balance owing to it pursuant to the relationship between
the parties with said counterclaim seeking a substantial amount from NGU (the
amount potentially subject to reduction as premiums are received). The Company
is also seeking to recover attorney's fees and
costs, as well as punitive damages on three of its causes of action. The change
of venue motion of the Company was denied. Certain discovery has taken place.
The federal case was dismissed per stipulation. The matter was refiled in Texas
state court, Tarrant County, Case No. 348 195490 02.
The claims of the respective parties are essentially the same as set forth
above, which claims include fraudulent inducement relative to entering into a
contract, fraud, breach of contract, breach of duty of good faith and fair
dealing, attorneys' fees and exemplary damages. Further discovery involving the
parties is anticipated. The Company intends to vigorously defend the matter as
well as prosecute its counterclaim.
An action was brought by Bernice Johnson against the Company in May, 2002 in the
Circuit Court of Jefferson County, Alabama, Civil Action No. CV02 2963. The face
amount of coverage under the policy is $15,000. The insured died in July 2001.
Claims are made for non-payment of the policy amount. The claims for relief
include misrepresentation, mental anguish and emotional distress, fraud,
intentional and bad faith non payment of the benefit, intentional and bad faith
failure to investigate the claim for benefits, reckless and negligent and wanton
action relative to misrepresentation and/or concealment of facts, negligence and
the wanton hiring, training and supervision of agents. Compensatory and punitive
damages are sought along with interest and costs. An answer has been filed by
the Company and discovery is in process. A trial has been set in June, 2003.
The Company is not a party to any other legal proceedings outside the ordinary
course of the Company's business or to any other legal proceedings, which, if
adversely determined, would have a material adverse effect on the Company or its
business.
Item 2. Changes in Securities
NONE
Item 3. Defaults Upon Senior Securities
NONE
Item 4. Submission of Matters to a Vote of Security Holders
NONE
Item 5. Other Information
NONE
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
3. Articles of Incorporation, as amended, and By-laws, as amended, dated
September 1994, incorporated by reference from the Annual Report filed
on Form 10-K for fiscal year ended December 31, 1994.
10. A Revolving Financing Agreement between the Company and the Student
Loan Marketing Association, dated September 19, 1996, incorporated by
reference from Annual Report on Form 10-K for fiscal year ended
December 31, 1997.
B. Reinsurance Agreement between the Company and United Group Insurance
Company, dated as of December 31, 1992 incorporated by reference from
Annual Report on Form 10-K for fiscal year ended December 31, 1992.
C. Agency Agreement between the Company and Insuradyne Corporation
incorporated by reference from Annual Report on Form 10-K for fiscal
year ended December 31, 1993.
D. Administrative Services Agreement between the Company and Security
National Financial Corporation effective December 17, 1998,
incorporated by reference from Annual Report on Form 10-K for fiscal
year ended December 31, 1998.
E. Agency Agreement between the Company and Security National Mortgage
Company dated December 28, 1998 incorporated by reference from Annual
Report on Form 10-K for fiscal year ended December 31, 1999.
F. Loan Funding and Fee Agreement between the Company and Security
National Mortgage Company dated December 28, 1998, incorporated by
reference from Annual Report on Form 10-K for fiscal year ended
December 31, 1999.
99.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002.
99.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002.
(b) Reports on Form 8-K:
NONE
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
REGISTRANT
SOUTHERN SECURITY LIFE INSURANCE COMPANY
Registrant
DATED: May 15, 2003 By: George R. Quist,
----------------
Chairman of the Board and
Chief Executive Officer
(Principal Executive Officer)
DATED: May 15, 2003 By: Stephen M. Sill
---------------
Vice President, Treasurer and
Chief Financial Officer
(Principal Financial and
Accounting Officer)
CERTIFICATIONS
I, George R. Quist, certify that:
1. I have reviewed this quarterly Report on Form 10-Q of Southern Security
Life Insurance Company;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
(a) Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared;
(b) Evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
(c) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):
(a) All significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including
any corrective actions with regard to significant deficiencies and material
weaknesses.
Date: May 15, 2003 By: George R. Quist
Chairman of the Board and
Chief Executive Officer
CERTIFICATIONS
I, Stephen M. Sill, certify that:
1. I have reviewed this quarterly Report on Form 10-Q of Southern Security
Life Insurance Company;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
(a) Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly
report is being prepared;
(b) Evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
(c) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):
(a) All significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including
any corrective actions with regard to significant deficiencies and material
weaknesses.
Date: May 15, 2003 By: Stephen M. Sill
Vice President, Treasurer and
Chief Financial Officer
EXHIBIT 99.1
CERTIFICATION PURSUANT TO
18 U.S.C. ss. 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Southern Security Life Insurance
Company (the "Company") on Form 10-Q for the period ending March 31, 2003, as
filed with the Securities and Exchange Commission on the date hereof (the
"Report"), I, George R. Quist, Chief Executive Officer of the Company, certify,
pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and
(2) the information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the Company.
George R. Quist
Chief Executive Officer
May 15, 2003
EXHIBIT 99.2
CERTIFICATION PURSUANT TO
18 U.S.C. ss. 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Southern Security Life Insurance
Company (the "Company") on Form 10-Q for the period ending March 31, 2003, as
filed with the Securities and Exchange Commission on the date hereof (the
"Report"), I, Stephen M. Sill, Chief Financial Officer of the Company, certify,
pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and
(2) the information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the Company.
Stephen M. Sill
Chief Financial Officer
May 15, 2003