UNITED STATES
                            SECURITIES AND EXCHANGE COMMISSION
                                  Washington, D.C. 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): December 12, 2001

                            ERIE FAMILY LIFE INSURANCE COMPANY
                  (Exact name of registrant as specified in its charter)

           PENNSYLVANIA                 2-39458                 25-1186315
  (State or other jurisdiction of     (Commission            (I.R.S. Employer
  incorporation)                       File Number)          Identification No.)


100 Erie Insurance Place, Erie, Pennsylvania                       16530
  (Address of principal executive offices)                      (Zip Code)

           Registrant's telephone number, including area code (814) 870-2000

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Item 5. OTHER EVENTS.

On December 12, 2001, Erie Family Life Insurance  Company issued a press release
which is filed as Exhibit 99.2 hereto and is incorporated herein by reference.

Item 7. EXHIBITS

Exhibit Number        Description
- --------------        -----------
99.2                  Press release dated December 12, 2001

                                 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.



                                              Erie Family Life Insurance Company
                                                          (Registrant)

Date: December 12, 2001                          /s/ Philip A. Garcia
                              (Philip A. Garcia, Executive Vice President & CFO)

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                                 Exhibit Index
Exhibit
Number           Description of Exhibit
- -------          ----------------------
99.2             Press release dated December 12, 2001

Erie Family Life Insurance Company Realizes Investment Losses

Erie, Pa. - December 12,  2001--Erie  Family Life Insurance Company announced it
would recognize charges for realized capital losses during the fourth quarter of
2001 of about $16.8 million  based on investment  sales and an evaluation of the
Company's  investments  through  today.  Further  charges are  possible  through
December 31,  2001,  depending  upon  additional  investment  sales and year-end
valuation of the Company's available-for-sale portfolio. Realized losses will be
recognized  as a result  of the  sale of  certain  securities  and  charges  for
other-than-temporary  impairments of equity and debt securities in the Company's
available-for-sale  investment  portfolios.  The sales were part of a  proactive
year-end  tax planning  strategy and will produce the recovery of  approximately
$3.5 million of federal income taxes paid in 1998,  1999 and 2000.  Sales before
December 31, 2001 of securities  that are impaired  could increase the Company's
recoverable federal income taxes.

At November  30, 2001,  the Company had total  assets of $1.1 billion  including
investment  portfolios totaling in excess of $900 million.  Shareholders' equity
of Erie Family Life Insurance Company stood at $218.9 million and book value was
$23.16 per share at November 30, 2001.  These  realized loss  transactions  will
have no effect on the shareholders'  equity or book value since, under generally
accepted  accounting   principles,   declines  in  value  of  available-for-sale
securities (net of related federal income taxes) are reflected in  shareholders'
equity on a current basis as securities are marked to market value.

Developments  over the past year in the  equity  markets  along  with the recent
bankruptcy filing of Enron Corporation and its related legal entities have given
rise to declines in value of certain Company investments.

The company has sold investments during October, November and December resulting
in realized  capital  losses of $9.6  million.  Losses  realized on the sales of
securities  consisted of $10.1  million of losses on common  equity  securities,
partially offset by gains of $476,000 on the sale of debt instruments.

In addition to the losses realized on the sale of  investments,  the Company has
realized  capital  losses due to  other-than-temporary  impairments  in value of
certain investments that remain in the Company's  available-for-sale  investment
portfolio. Charges for other-than-temporary  impairment of investment value were
recognized in November and December to date  totaling  $7.2  million,  including
$2.6 million on common  equities.  The balance,  or $4.6  million,  pertained to
declines in value of debt instruments issued by Enron Corporation or its related
entities.

As a result  of these  realized  capital  losses,  the  Company  will  reflect a
reduction  in after tax net income of  approximately  $10.9  million  ($1.15 per
share) for the fourth quarter of 2001.  After tax net income of Erie Family Life
Insurance Company for the nine months ended September 30, 2001 was $11.6 million
($1.23 per share).

Erie Family Life  Insurance  Company is a member  company of the Erie  Insurance
Group that includes the Erie Indemnity  Company (Nasdaq:  ERIE),  Erie Insurance
Exchange,  Erie Insurance Company,  Erie Insurance Company of New York, Flagship
City Insurance Company and Erie Insurance Property and Casualty Company.

According  to  A.  M.  Best  Company,  Erie  Insurance  Group,  based  in  Erie,
Pennsylvania,  is the 18th largest automobile insurer in the United States based
on direct premiums written and the 26th largest property/casualty insurer in the
United  States based on total lines net premium  written.  The Group,  rated A++
(superior)  by A. M. Best Company,  has more than 3.2 million  policies in force
and operates in 11 states and the District of Columbia.  News  releases and more
information     about    Erie     Insurance     Group    are     available    at
http://www.erieinsurance.com.

"Safe Harbor"  Statement Under the Private  Securities  Litigation Reform Act of
1995:  Certain  forward-looking  statements  contained  herein involve risks and
uncertainties. Many factors could cause future results to differ materially from
those discussed.

Examples of such factors include variations in catastrophe losses due to changes
in weather  patterns,  other  natural  causes or terrorist  actions;  changes in
insurance  regulations or legislation that disadvantage the members of the Group
in the  marketplace and recession,  economic  conditions or stock market changes
affecting  pricing  or demand for  insurance  products  or  ability to  generate
investment income and returns.  Growth and  profitability  have been and will be
potentially materially affected by these and other factors.


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