The Court appointed Liquidator of Wasatch Crest Mutual Insurance Company in Liquidation  ("WCMIC"), Utah
Insurance Commissioner Kent Michie (" Liquidator"), successor in office to  Merwin U. Stewart, by and through his Special
Deputy Liquidator, Len Stillman, herein files this Quarterly Report On Status Of Liquidation Estate For Period Ending
December 30, 2007 pursuant to the Liquidation Order issued July 31, 2003, and pursuant to Utah Code Annotated, Section
31A-27-314.  The estate of Wasatch Crest Mutual Insurance Company (Civil No. 030915528) is consolidated with the
estate of Wasatch Crest Insurance Company in Liquidation (Civil No. 030915527).                                      

The Liquidator sets forth herein a Report on the status of the liquidation estate and a Financial Report of assets,
liabilities and expenses of the liquidation estate of WCMIC including the current assessment of liabilities from all claims filed
against the liquidation estate. The attached Exhibit "A" Financial Report was prepared under the direction of the Court
appointed Special Deputy Liquidator, Len Stillman. The statements of assets and liabilities are for the period ending
June 30, 2007, and the statements of receipts and disbursements are for the period beginning with the date of the Liquidation
Order and ending June 30, 2007. The report utilizes the reporting format for receiverships established by the National
Association of Insurance Commissioners ("NAIC") which does not address valuation methods.

             The Liquidator herein reports to the Court regarding significant and/or ongoing events and activities in the
liquidation of of of of WCMIC as follows:

Brief History (This item will continue to appear in these reports for the convenience of the court.) 

Wasatch Crest Mutual Insurance Company (WCM) [merged with or absorbed Electric Mutual Benefit Association
(a VEBA trust), Energy Mutual] wrote primarily workers compensation insurance, first as a captive for Utah Power and
Light (NKA PacifiCorp), then, in 2003, for other businesses. It also assumed insurance from Educators Mutual Insurance
Company and assumed reinsurance from an affiliate, First Continental Life Insurance Company. Other lines included
appliance warranty (in run-off), travel accident (terminated), accident and health (terminated) and personal lines homeowners
and auto (in run-off). Wasatch Crest Insurance Company (WCIC) (FKA Home Fire Insurance Company, Utah Home Fire
Insurance Company, Wasatch Crest Casualty Company, Transunion Casualty) wrote all personal lines except life insurance.
WCIC was a subsidiary of Wasatch Crest Group (Group). Group sold WCIC to WCM on January 1, 2003. Group also
owned First Continental Life Insurance Company which was sold and moved to Texas during the third quarter of  2004.

Administrative Update

Remaining activity relates to processing claims and collecting reinsurance. The claim-filing bar date passed on July 31, 2004.
Collection activity for unpaid premium is complete. The last two employees, one full time and one part time, have left the
company. Therefore, the company no longer has any employees and relies on services provided by consultants. Litigation
against a former affiliate has ended in findings in favor of the defendant. As a result, litigation activity and related expenses
have ended.

Subrogation collections are virtually complete. The Deputy Liquidator has contacted all counsel involved with open items and
is seeking a resolution of open subrogation claims by December 31, 2007. To the extent that amounts are deemed uncollectible,
the cases will be abandoned or sold.

Claims

    The Deputy Liquidator has valued virtually all claims filed in the estate. G.A. claims remain undetermined
    although only the Utah G.A. has significant exposure on WCMIC policies. The first Notices of Claim Determinations
    were sent on January 27, 2004. The Special Deputy sought and received court approval to make a thirty percent distribution
    of allowed class 3 claims which was made during 2005.  No further distributions will be made until a distribution is made to
    WCMIC from its major reinsurer, affiliate WCIC in Liquidation.

    During the claim determination process, the Liquidator denied one medical claim that resulted in an objection by the claimant.
    That objection was heard by a Special Master approved by this court and, in that hearing, the claimant prevailed over
    the Liquidator.  That claim is being administered by the Idaho Life and Health Insurance Guaranty Association.  Rocky
    Mountain Power opted out of the Guaranty Fund and is handling all of the claims attached to its policies.
 

Affected Guaranty Associations 

    (Utah, Oregon, Idaho) are reporting monthly and paying claims in the ordinary course of business. G.A.
    proof-of-claim forms are filed as “contingent” due to the ongoing claim activity. Claim development as reported
    by some G.A.s have not yet been fully evaluated due to the time it takes for workers compensation claims
    to develop. The Idaho Property and Casualty Insurance G.A. has declined payment because Idaho maintains
    a deposit to pay Idaho claimants.

Workers comp. business written since April 2003:

    This business covered by the G.A.s was being administered by WCMIC on behalf of the G.A.s but has been transitioned
    to the G.A.s due to the departure of the last of the WCMIC employees.  

Appliance Warranty: Hassle Free and Triad Warranty

    Hassle Free was a policy issued to PacifiCorp (“PC”) on WCM paper and covers water heater
    repairs for subscribers.  This program has been terminated by PC . All claims have been determined
    on this business and approved by the Court.

    Triad Warranty Program claims have all been determined and approved by the Court.

Other Claims 

    There are also general creditor claims all of which have been determined. As of the date of this report, distributions to
    creditors with a higher priority than class 3 appear unlikely.

Other than the partial distribution to class 3 claimants, there have been no material changes in the financial position of 
the company. However, since significant funds held by the company have been distributed to claimants, investment income 
has been reduced. 

Reinsurance

    The Special Deputy Liquidator has settled the attempt to recover premium paid to a London reinsurance broker just prior
    to the liquidation date. The Deputy Liquidator has agreed to accept 50% of the amount that remained unpaid however
    only expects to receive about one half of the amount due from them because the broker has now gone into liquidation.
    The amount allowed in the broker’s estate is approximately $265,000 on the claim and approximately 75,000 British
    pounds in interest and costs. Since the claim has been agreed, the Liquidator has received a partial payment from the London
    receiver of $48,395.00

    Relating to the claim that had been denied but approved at a hearing by a Special Master, the Liquidator has sent a claim for
    the reinsurance the Liquidator believes is owed on the claim. The reinsurer (American National Insurance Company) has
    denied payment. The Liquidator has filed an arbitration demand as required by the reinsurance contract.  Other reinsurers
    have been paying as billed.

    Detailed analysis, or additional information, regarding any estate function is available to the Court upon the Court’s
    request.  Ongoing issues affecting the WCMIC estate will be brought to the Court’s attention on an as needed basis.
   

             Dated this ____ of February, 2008.

                                                                     Wasatch Crest Mutual Insurance Company
                                                                         In Liquidation

 

                                                                      __________________________________

                                                                      Lennard W. Stillman,
                                                                      Special Deputy Liquidator                                                                   
                                                                      Wasatch Crest Mutual Insurance Company
                                                                          In Liquidation

                                                                

                                                                      ________________________________

                                                                       J. Ray Barrios, General Counsel

 

CERTIFICATE OF MAILING