Property and Equipment (Net of Accumulated Depreciation)

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Property and Equipmentr (Net of Accumulated Depreciation)

NOTE 5 – PROPERTY AND EQUIPMENT (NET OF ACCUMULATED DEPRECIATION)

Property and equipment consist of the following:

	Year ended December 31
	2011	2010
Furniture, fixtures, computer and office equipment	$2,369,180	$3,709,490
Accumulated depreciation	2,138,399	2,078,916
Net property and equipment	$230,781	$1,630,574

Included in the above table for the year ended December 31, 2010, is work-in-process for software development in the amount of $1,500,162 of which $1,431,917 was unpaid. During the year ended December 31, 2011, the unpaid balance due the vendor associated with the implementation of a new policy administration system was not paid due to the vendor’s inability to resolve the issues related to the software’s operation and functionality. The Company expensed all capitalized work-in-progress costs paid to date (see Note 11).

Depreciation is computed using straight line methods over 3 to 7 years.