EXHIBIT 99.8


                        BENEFICIAL OWNER ELECTION FORM

                                 INSTRUCTIONS

      The undersigned acknowledge(s) receipt of your letter and the  enclosed
 materials referred to therein relating to  the offering of shares of  common
 stock (the  "Common  Stock")  of  Hallmark  Financial  Services,  Inc.  (the
 "Company").

      This will  instruct you  whether to  exercise  the Rights  to  purchase
 shares  of Common  Stock  distributed  with respect  to the shares of Common
 Stock held by you for the account of the undersigned, pursuant  to the terms
 and subject to the  conditions set forth in the Prospectus  and  the related
 "Instructions as to Use of Rights Certificates."

      Box 1. [ ]  Please DO NOT EXERCISE RIGHTS for shares of Common Stock.

      Box 2. [ ]  Please EXERCISE RIGHTS for shares of Common Stock as set
                  forth below.

                        Number of        Subscription
                          Rights            Price               Payment
                     --------------     --------------    -------------------

 Basic Subscription
 Privilege           ______________  X  ______________  = $__________(line 1)

 Over-Subscription
 Privilege           ______________  X  ______________  = $__________(line 2)

                     Total Payment Required
                     (Sum of lines 1 and 2)             = $__________________


      Box 3. [ ] Payment in the following amount is enclosed $______________.
                 (This amount must equal the amount set forth under "Total
                 Payment Required" above).

      Box 4. [ ] Please deduct payment from the following account maintained
                 by you as follows:

 _______________________________    ______________________________________
 Type of Account                    Account No.

 Amount to be deducted: $_______    ______________________________________
                                    ______________________________________
                                    Signature(s)

                                    Please type or print
                                    name(s) below:
                                    ______________________________________
                                    ______________________________________

 Date: _____________________, 2005