ASSUMPTION REINSURANCE AGREEMENT

                                     BETWEEN

                         ACADIAN LIFE INSURANCE COMPANY

                                       AND

                    SECURITY NATIONAL LIFE INSURANCE COMPANY





THIS ASSUMPTION  REINSURANCE  AGREEMENT  (this  "Agreement") is made and entered

into effective as of the 1st day of January, 2003 (the "Effective Date"), by and

among ACADIAN LIFE INSURANCE COMPANY, a Louisiana insurance company ("Acadian"),

ACADIAN  FINANCIAL  GROUP,  INC.,  a  Louisiana  corporation  ("AFG"),  SECURITY

NATIONAL LIFE INSURANCE COMPANY,  a Utah insurance company  ("Security  National

Life")  and  SECURITY  NATIONAL  FINANCIAL   CORPORATION,   a  Utah  corporation

("Security National Financial").



                                   WITNESSETH:



WHEREAS,  Acadian  desires  to  reinsure  with  Security  National  Life  all of

Acadian's  insurance  policies listed and described in that certain  coinsurance

agreement (the "Coinsurance  Agreement") dated December 17, 2002 (the "Execution

Date"),  between Acadian and Security  National Life acquired from Gulf National

Life  Insurance  in force and  effect  (including  policies  which may be lapsed

subject to the right of reinstatement,  policies not lapsed but in arrears,  and

policies in force and in effect as paid up and extended term policies) as of the

Effective Date  (hereinafter the "Reinsured  Business"),  subject to approval by

the  commissioner  of insurance of the state of Louisiana (the  "Commissioner"),

upon the following terms and of conditions; and



WHEREAS,  Acadian  constitutes  the sole  operating  subsidiary  of AFG, and AFG

desires to join in this Agreement to ratify and confirm the sale and reinsurance

of Acadian's insurance business; and



WHEREAS,  Security  National  Life  is a  wholly-owned  subsidiary  of  Security

National  Financial,  and Security  National  Financial  desires to join in this

Agreement  to ratify and confirm the  assumption  of the  Reinsured  Business by

Security National Life;



NOW,  THEREFORE,  in  consideration  of  the  mutual  promises,   covenants  and

agreements herein contained, the parties hereby agree as follows:



     1.   Reinsurance Obligations of Security National Life. Subject to approval

          by the Commissioner,  as provided for in Section 9 below, Acadian does

          hereby cede to Security National Life, and Security National Life does

          hereby assume,  reinsure, and guarantee all of the insurance risks and

          contractual  obligations  of Acadian  relating  only to the  Reinsured

          Business  and  included  within the Master  Policy  List of Acadian as

          listed and  described  on the  compact  disk (CD)  attached  hereto as

          Schedule A, dated as of the Effective  Date,  which  Schedule shall be

          attached to this Agreement on the Effective  Date.  Security  National

          Life  hereby  agrees to pay all  legal  liabilities  and  obligations,

          including claims and commissions,  of Acadian under or with respect to

          the Reinsured  Business,  arising on or after the  Effective  Date, in

          accordance  with the terms and  conditions  of the  policies  included

          within the Reinsured  Business.  Security National Life hereby further

          covenants  and agrees  with  Acadian  and with each of the  holders of

          policies   included   in  the   Reinsured   Business,   and  with  the

          beneficiaries  thereof and/or their legal representatives and assigns,

          that effective as of the Effective Date,  Security  National Life will

          assume and carry out the several  obligations of Acadian  contained in

          the policies included in the Reinsured Business.



Security National Life covenants and agrees to issue a certificate of assumption

for each policy in force included in the Reinsured Business, reinsuring the same

according and subject to the terms and conditions  thereof;  provided,  however,

that Security National Life may be subrogated to and substituted for all rights,

privileges and interests  accruing under said policies included in the Reinsured

Business,  to the extent of the reinsurance agreed upon hereunder,  and provided

further that all obligations and liabilities hereby assumed by Security National

Life are  assumed  subject  to the  terms,  limitations  and  conditions  of the

insurance  policies  included  in  the  Reinsured  Business  and  all  defenses,

counter-claims  and off-sets which are or might  hereafter  become  available to

Security National Life subsequent to the Effective Date.  Security National Life

is assuming only those  insurance  risks and  contractual  obligations  included

within the Reinsured  Business of Acadian  provided for hereunder,  and Security

National  Life  is  not  assuming  hereunder  any   extra-contractual  or  other

liabilities or obligations  of Acadian.  Security  National Life is not assuming

and Acadian is not ceding any policy issued to an insured  whose death  occurred

prior to the  Effective  Date and for which a death  claim has been  received by

Acadian prior to the Effective Date.  Security  National Life does hereby assume

any valid claim of an insured whose death  occurred  prior to the Effective Date

:and for which a death claim was not received by Acadian  prior to the Effective

Date.



2.  Assignment  by Acadian of Policy  Contracts



     (a)  Acadian  does  hereby,  upon  the  Effective  Date of this  Agreement,

          transfer,  assign and convey unto  Security  National  Life all of its

          right,  title and interest,  as of the  Effective  Date, in and to the

          Reinsured Business,  including policies which may be lapsed subject to

          the right of reinstatement and policies in force and in effect as paid

          up and  extended  term  policies.  Such  policies  have been issued or

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