EXHIBIT 99.1 Remarks by Lane A. Hersman,  Registrant's Executive Vice President,
at the Registrant's 2003 Annual Meeting on May 22, 2003

     Premium  income  increased  34% in 2002  compared to 2001.  Premiums in our
Preneed  segment grew 114% in 2002 compared to 2001. Our Home Service and Dental
premiums each increased 2% while our Broker Life segment's premium declined 5%.

     The growth in our Preneed  segment was  attributable  to  developing  those
markets in states  where we had  established  a  presence  in prior  years.  The
Company did license its products in Delaware and Maryland in 2002.  However,  it
has not begun  marketing  there nor does it have plans to in the short term. The
growth  in our  Home  Service  premium  was,  as in the  prior  years,  achieved
exclusively  in the  Carolinas.  Performance  in our other major sales area, the
Northeast  region,  continues  to be  hampered  by an  aging  agency  force  and
lackluster recruiting.

     Though facing increased  competition in our Dental segment, we were able to
obtain a 2% growth in premium.  In the third  quarter of 2002, we signed a state
employee group whose enrollment continues to grow. In addition, we are currently
in  negotiations  with an Ohio  marketing  group,  which  has the  potential  of
significantly  increasing our dental presence in that state. We anticipate these
new  initiatives  will enable us to maintain,  if not grow, our dental  business
during this period of intensified  competition from major insurers such as AFLAC
and Fortis.

     However,  the economies of scale  realized from  increased  sales could not
overcome the continued  impact of declining  earned interest rates. In addition,
the Company's Home Service and Broker segments  experienced higher mortality and
morbidity  rates  during  the first  half of 2002.  This  resulted  in a pre-tax
operating loss of $859,000.

     In 2002, we also recognized losses on investment of $2,470,000  principally
attributable to the continuing unsettled equity markets.  These factors combined
to give a net loss of $3,329,000 in 2002 ...clearly an unacceptable result.

     The  declining  earned  interest  rates  previously  mentioned  have  had a
significant  negative impact on the Company and the life insurance industry as a
whole.

     During 2002,  the Company  decided it could no longer  maintain its current
product   pricing  and  commission   structure  in  an  effort  to  outlast  our
competitors.  Thus  during 2002  through  April of this year,  the Company  made
several  adjustments  in these  areas.  The Company  has  reduced  the  interest
crediting rate on the Preneed products twice in the last 12 months by a total of
125  basis  points.  In  addition,  we have  reduced  commission  rates on these
products by approximately 8 percentage points.  These changes were just recently
completed and we currently anticipate no significant impact on sales.

     The Company also repriced its Home Service products  increasing the average
premium  on new  business  by  13% to 27%  depending  on age  and  gender.  This
increase,  introduced in the last month,  has caused an initial decrease in Home
Service sales. We anticipate  these sales to return to more normal levels during
the year as the agency  force  becomes more  familiar  with the rates and as our
competition increases their rates.

     As we were  completing  the roll  out of these  changes  to the  field,  we
learned of several major competitors  initiating similar changes both in Preneed
and Home  Service.  Thus we  believe  our  products  will  remain  competitively
positioned.

     Our other  avenue of growth is via  acquisitions  of companies or blocks of
business.

     We had very little acquisition  activity during 2002 and to date this year.
This is consistent with the Industry as a whole, which has seen a decline in M &
A activity during the last couple of years.

     Government regulation continues to be an area requiring significant Company
human  resources.  The  recently  effective  Patriot  and HIPAA  Acts have had a
profound effect on the way the Company administers its business.  Management has
and continues to spend a significant  amount of time  implementing and designing
the implementation of these Acts. This is done with the intent of obtaining cost
efficient  compliance.  However  compliance  does  increase  the  cost of  doing
business and is another reason for the aforementioned change in product designs.

     Finally,  for the past several months  management with the assistance of an
outside  consultant  has been  reviewing  the Company  from top to bottom.  This
review encompasses, among other things, corporate organization, product segments
and their potential for profitable growth, Company human and financial resources
and the best methods of deploying them, and management succession planning. This
planning,  which should be  completed in the next couple of weeks,  will map the
direction of the Company for the near to intermediate term. Upon its completion,
it will be reviewed and if deemed worthy  adopted by the Board of Directors.  We
believe  the plan,  in  whatever  form  adopted  and  updated,  will be the main
instrument to focus the Company over the coming years.


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