AMENDMENT TO THE DEFERRED STOCK AGREEMENT BETWEEN AMERICAN MEDICAL SECURITY GROUP, INC. AND SAMUEL V. MILLER

                                                                    EXHIBIT 10.3


                                    AMENDMENT
                                     TO THE
                            DEFERRED STOCK AGREEMENT
                                     BETWEEN
                      AMERICAN MEDICAL SECURITY GROUP, INC.
                                       AND
                                XXXXXX X. XXXXXX

         THIS AMENDMENT, dated as of September 15, 2004, is by and between
American Medical Security Group, Inc., a Wisconsin corporation ("AMSG") and
Xxxxxx X. Xxxxxx (the "Executive") and is effective this 15th day of September,
2004.

                                    RECITALS

         AMSG and the Executive entered into a Deferred Stock Agreement,
effective November 17, 1998, which provides that the Executive will receive
73,506 shares of AMSG common stock (the "Deferred Stock") on January 2nd of the
year following the year in which the Executive's termination of employment
occurs, to the extent that the Deferred Stock is vested on such date.

         The Deferred Stock fully vested on November 17, 2002.

         The Board of Directors of AMSG has approved the Agreement and Plan of
Merger (the "Merger Agreement") to be entered into by and among AMSG, Pacificare
Health Systems, Inc., a Delaware corporation, and Ashland Acquisition Corp., a
newly formed Wisconsin corporation and a wholly-owned subsidiary of Parent.

         Section 2.4(b) of the Merger Agreement provides that immediately prior
to the Effective Time (as defined in the Merger Agreement), the Deferred Stock
shall be cancelled for a payment equal to the product of (i) the number of
shares of AMSG common stock subject to such award, and (ii) the Merger
Consideration (as defined in the Merger Agreement).

                                    AGREEMENT

         NOW THEREFORE, AMSG and the Executive agree as follows:

         1. Notwithstanding anything to the contrary contained in the Deferred
Stock Agreement, immediately prior to the consummation of the Merger, the
Deferred Stock shall be cancelled for a payment equal to the product of 73,506
and (ii) the Merger Consideration. Upon such event, AMSG shall have no further
obligations to the Executive pursuant to the Deferred Stock Agreement.



         2. In the event that the Merger is not consummated, this Amendment
shall be of no force and effect.

         IN WITNESS WHEREOF, the parties have executed this Amendment on this
15th day of September, 2004.

                                      AMERICAN MEDICAL SECURITY GROUP


                                      By:    /s/ Xxxxxxx X. Xxxxx
                                             Name:  Xxxxxxx X. Xxxxx
                                             Title: Senior Vice President of
                                                    Corporate Affairs, General
                                                    Counsel and Secretary


                                      EXECUTIVE



                                      /s/ Xxxxxx X. Xxxxxx



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