THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Direct General Corporation (DRCT)

3/15/2006 Proxy Information

In 2002, several of our subsidiaries paid an aggregate of approximately $1.4 million for various legal services, to an association of lawyers in which Tammy R. Adair held an ownership interest at that time. In addition, during 2002, this association of lawyers collected $4.1 million for us, of which sums it retained $1.4 million. Also, Direct Administration, Inc., one of our subsidiaries, leased property to this association of lawyers over the same period for an aggregate of $15,500 in 2002. Ms. Tammy Adair has not been a member of this association since August 2002, and she no longer has an ownership interest in the firm. In exchange for her former ownership interest, her former law firm issued her a promissory note in the principal amount of approximately $0.4 million, at an annual interest rate of 7.25%. The note was payable in monthly installments, matured in December 2004 and no further payments are payable to Ms. Tammy Adair under the note.

In 2005, 2004 and 2003, two of our insurance subsidiaries paid Mid-South Collision, LLC approximately $0.9 million, $0.9 million and $0.9 million, respectively, for auto body work. Mid-South Collision is owned by the step-daughter and stepson-in-law of Ms. Tammy Adair.

3/22/2005 Proxy Information

Ms. Jacqueline Adair is the wife of Chief Executive Officer, William C. Adair, Jr. and the step-mother of President, Tammy R. Adair.

In 2002, several of our subsidiaries paid an aggregate of approximately $1.4 million for various legal services, to an association of lawyers in which Tammy R. Adair held an ownership interest at that time. In addition, during this year, this association of lawyers collected $4.1 million for us, of which sums it retained $1.4 million. Also, Direct Administration, Inc., one of our subsidiaries, leased property to this association of lawyers over the same period for an aggregate of $15,500 in 2002. Ms. Tammy Adair has not been a member of this association since August 2002, and she no longer has an ownership interest in the firm. In exchange for her former ownership interest, her former law firm issued her a promissory note in the principal amount of approximately $0.4 million, at an annual interest rate of 7.25%. The note was payable in monthly installments, matured in December 2004 and no further payments are payable to Ms. Tammy Adair under the note.

In 2004, 2003 and 2002, two of our insurance subsidiaries paid Mid-South Collision, LLC approximately $0.9 million, $0.9 million and $0.8 million, respectively, for auto body work. Mid-South Collision is owned by the step-daughter and stepson-in-law of Ms. Tammy Adair.