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  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;border-top:double 2.25pt;padding-top:1;'>&nbsp;</p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>UNITED STATES</font></B></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></B></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>WASHINGTON, DC 20549</font></B></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><b><font size=2>____________________</font></b></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>FORM 8-K</font></B></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=1>&nbsp;</font></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><b><font size=2>PURSUANT TO SECTION 13 OR 15(d) OF</font></b></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>THE SECURITIES EXCHANGE ACT OF 1934</font></B></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Date of Report (Date of Earliest Event Reported):  March 26, 2007</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=3>AMERICAN PHYSICIANS SERVICE GROUP, INC.</font></b></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact Name of Registrant as Specified in its Charter)</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>
  
  
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              <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:12pt'><B><font SIZE=2>TEXAS</font></B></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:12pt'><b><font size=2>75-1458323</font></b></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(State or Other Jurisdiction</font></p> </td>
          <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Commission</font></p> </td>
          <td width="232" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(IRS Employer</font></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>of Incorporation)</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>File Number)</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Identification No.)</font></p> </td> </tr></table>
  </div>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><b><font size=2>1301 CAPITOL OF TEXAS HIGHWAY</font></b></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SUITE C-300</font></B></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>AUSTIN, TEXAS 78746</font></B></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Address of Principal Executive Offices, Zip Code)</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><b><font size=2>(512) 328-0888</font></b></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Registrant&#146;s Telephone Number, Including Area Code)</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face=Wingdings>o</font><font size=2> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
  
  
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>o</font>  </p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p> </td> </tr></table>
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  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face=Wingdings>o</font><font size=2>   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font face=Wingdings>o</font><font size=2>   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;border-bottom:double 2.25pt;padding-bottom:1;'><font size=2>&nbsp;</font></p>
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  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 1.01. Entry into a Material Definitive Agreement. </font></b></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:left;'><font size=2>On March 22, 2007 American Physicians Service Group, Inc. (the &#147;Company&#148;) and Timothy L. LaFrey entered into an Executive Employment Agreement (the &#147;Agreement&#148;), pursuant to which Mr. LaFrey will become the Company&#146;s President and Chief Operating Officer. The date he will commence his employment is to be mutually agreed upon, but is expected to be in mid-April, 2007. The Company&#146;s Board of Directors (the &#147;Board&#148;) appointed Mr. LaFrey as a member of the Board effective March 23, 2007. </font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:left;'><font size=2>Under the terms of the Agreement, the Company will employ Mr. LaFrey as President and Chief Operating Officer for a period of four years. The Company will pay Mr. LaFrey an annual salary of $375,000. Mr. LaFrey will be eligible for, but not guaranteed, annual bonuses based on his individual performance, as well as the performance and profitability of the Company, at the discretion of the Board. The Agreement provides that the Company will grant Mr. LaFrey an option to acquire 50,000 shares of the Company&#146;s common stock, with an exercise price equal to the closing price per share on the date of grant and vesting over two years. In addition, the Agreement also entitles Mr. LaFrey to receive a deferred stock award of approximately 4,000 shares of the Company&#146;s common stock upon commencement of employment. The Agreement entitles Mr. LaFrey to receive a severance payment, generally
  equal to four times Mr. LaFrey&#146;s average annual cash compensation if the Company terminates his employment without cause (as defined in the Agreement) or he terminates for good reason (as defined in the Agreement) following a change in control of the Company. </font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers. </font></b></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>As described under Item 1.01 above, Mr. LaFrey, age 51, has been appointed President and Chief Operating Officer of the Company. The date he will commence his employment is to be mutually agreed upon, but is expected to be in mid-April,&nbsp;2007. The Company&#146;s Board has appointed Mr. LaFrey as a member of the Board effective March 23, 2007. Mr. LaFrey had previously served as partner in charge of the Austin office of Akin Gump Strauss Hauer &amp; Feld LLP where his law practice focused on corporate governance, mergers and acquisitions, and debt and equity financings. Mr.&nbsp;LaFrey has extensive experience in the insurance, health care, technology, and financial services industries. Prior to becoming an attorney, Mr.&nbsp;LaFrey, who is also a certified public accountant, was in the audit practice of KPMG Peat Marwick in Austin. He maintains memberships in the American Bar
  Association, The State Bar of Texas, and the Travis County Bar Association. He is also a member of The American Institute of Certified Public Accountants, and the Texas Society of Certified Public Accountants.</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:left;'><font size=2>Kenneth S. Shifrin, who was serving as Chairman, President, and Chief Executive Officer of the Company, will continue to serve as Chairman and Chief Executive Officer. </font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:left;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
  
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
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  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 9.01 Financial Statements and Exhibits. </font></b></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>
  
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Exhibits. </font></p> </td> </tr></table>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Exhibit Number</font></b></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Description</font></b></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10.1</font></p> </td>
          <td width="18" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.45pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Executive Exployment</font><font size=2> </font><font size=2>Agreement, effective as of March 22, 2007, by and between the Company and Timothy L. LaFrey</font></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>99.1</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Press Release</font></p> </td> </tr></table>
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  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SIGNATURE </font></B></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.34in;text-align:left;'>&nbsp;</p>
  
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>AMERICAN PHYSICIANS SERVICE GROUP, INC.</font><br> <font size=2>(Registrant)</font></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Date: March 26, 2007</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="65" valign=top >
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
          <td width="14" valign=bottom >
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="286" valign=top >
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/ W.H. Hayes</font></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
  <HR size=1 width="100%" noshade color=black align=center>  </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="14" valign=bottom >
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="14" valign=bottom >
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="14" valign=bottom >
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="65" valign=top >
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Name:</font><br> <font size=1>Title:</font></p> </td>
          <td width="14" valign=bottom >
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="286" valign=bottom >
              <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>W.H. Hayes</font></p>
  <p style='margin-left:12.0pt;text-indent:-12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Senior Vice President</font></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="14" >
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
  </div>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>&nbsp;</p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
  <HR size=3 width="100%" noshade color="#999999" align=center></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>EXHIBIT INDEX </font></B></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
  
  <p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>
  
  
  <div align=left>
  
  <table width="100%" border="0" cellspacing=0 cellpadding=0 style='margin-left:17.4pt;border-collapse:collapse; '>
      <tr style='height:.2in'>
          <td width="129" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.2in'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Exhibit Number</font></b></p> </td>
          <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.2in'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="550" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.2in'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Description</font></b></p> </td> </tr>
      <tr style='height:8.1pt'>
          <td width="129" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:8.1pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:8.1pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="550" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:8.1pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
      <tr style='height:24.0pt'>
          <td width="129" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:24.0pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10.1</font></p> </td>
          <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:24.0pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="550" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:24.0pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Executive Exployment</font><font size=2> </font><font size=2>Agreement, effective as of March 22, 2007, by and between the Company and Timothy L. LaFrey</font></p> </td> </tr>
      <tr style='height:.2in'>
          <td width="129" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.2in'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.2in'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="550" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.2in'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
      <tr style='height:12.8pt'>
          <td width="129" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.8pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>99.1</font></p> </td>
          <td width="17" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.8pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
          <td width="550" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.8pt'>
              <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Press Release</font></p> </td> </tr></table>
  </div>
  
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "cover8k.htm", "description": "ELECTION OF NEW PRESIDENT AND COO", "secsgml_size_bytes": 31940}]
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text: UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, DC 20549
  ____________________
  FORM 8-K
  CURRENT REPORT
  PURSUANT TO SECTION 13 OR 15(d) OF
  THE SECURITIES EXCHANGE ACT OF 1934
  Date of Report (Date of Earliest Event Reported):  March 26, 2007
  AMERICAN PHYSICIANS SERVICE GROUP, INC.
  (Exact Name of Registrant as Specified in its Charter)
  TEXAS
  75-1458323
  (State or Other Jurisdiction
  (Commission
  (IRS Employer
  of Incorporation)
  File Number)
  Identification No.)
  1301 CAPITOL OF TEXAS HIGHWAY
  SUITE C-300
  AUSTIN, TEXAS 78746
  (Address of Principal Executive Offices, Zip Code)
  (512) 328-0888
  (Registrant's Telephone Number, Including Area Code)
  Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
  o
  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  o
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  o
  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  o
  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Item 1.01. Entry into a Material Definitive Agreement.
  On March 22, 2007 American Physicians Service Group, Inc. (the "Company") and Timothy L. LaFrey entered into an Executive Employment Agreement (the "Agreement"), pursuant to which Mr. LaFrey will become the Company's President and Chief Operating Officer. The date he will commence his employment is to be mutually agreed upon, but is expected to be in mid-April, 2007. The Company's Board of Directors (the "Board") appointed Mr. LaFrey as a member of the Board effective March 23, 2007.
  Under the terms of the Agreement, the Company will employ Mr. LaFrey as President and Chief Operating Officer for a period of four years. The Company will pay Mr. LaFrey an annual salary of $375,000. Mr. LaFrey will be eligible for, but not guaranteed, annual bonuses based on his individual performance, as well as the performance and profitability of the Company, at the discretion of the Board. The Agreement provides that the Company will grant Mr. LaFrey an option to acquire 50,000 shares of the Company's common stock, with an exercise price equal to the closing price per share on the date of grant and vesting over two years. In addition, the Agreement also entitles Mr. LaFrey to receive a deferred stock award of approximately 4,000 shares of the Company's common stock upon commencement of employment. The Agreement entitles Mr. LaFrey to receive a severance payment, generally
  equal to four times Mr. LaFrey's average annual cash compensation if the Company terminates his employment without cause (as defined in the Agreement) or he terminates for good reason (as defined in the Agreement) following a change in control of the Company.
  Item 5.02. Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers.
  As described under Item 1.01 above, Mr. LaFrey, age 51, has been appointed President and Chief Operating Officer of the Company. The date he will commence his employment is to be mutually agreed upon, but is expected to be in mid-April, 2007. The Company's Board has appointed Mr. LaFrey as a member of the Board effective March 23, 2007. Mr. LaFrey had previously served as partner in charge of the Austin office of Akin Gump Strauss Hauer & Feld LLP where his law practice focused on corporate governance, mergers and acquisitions, and debt and equity financings. Mr. LaFrey has extensive experience in the insurance, health care, technology, and financial services industries. Prior to becoming an attorney, Mr. LaFrey, who is also a certified public accountant, was in the audit practice of KPMG Peat Marwick in Austin. He maintains memberships in the American Bar
  Association, The State Bar of Texas, and the Travis County Bar Association. He is also a member of The American Institute of Certified Public Accountants, and the Texas Society of Certified Public Accountants.
  Kenneth S. Shifrin, who was serving as Chairman, President, and Chief Executive Officer of the Company, will continue to serve as Chairman and Chief Executive Officer.
  Item 9.01 Financial Statements and Exhibits.
  (d)
  Exhibits.
  Exhibit Number
  Description
  10.1
  Executive Exployment
  Agreement, effective as of March 22, 2007, by and between the Company and Timothy L. LaFrey
  99.1
  Press Release
  SIGNATURE
  Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  AMERICAN PHYSICIANS SERVICE GROUP, INC.
  (Registrant)
  Date: March 26, 2007
  By:
  /s/ W.H. Hayes
  Name:
  Title:
  W.H. Hayes
  Senior Vice President
  EXHIBIT INDEX
  Exhibit Number
  Description
  10.1
  Executive Exployment
  Agreement, effective as of March 22, 2007, by and between the Company and Timothy L. LaFrey
  99.1
  Press Release