Policy Liabilities

12 Months Ended

Dec. 31, 2015

Statement of Financial Position [Abstract]

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

Policy Liabilities

Various assumptions used to determine the future policy benefit reserves of life insurance include the following:  a) valuation interest rates from 2.5% to 6.75% per year; b) mortality assumptions are from the 1955 to 1960, 1965 to 1970, 1975 to 1980 and 2001 Select and Ultimate mortality tables; and c) withdrawals are based primarily on actual historical termination rates.

The following table presents information on changes in the liability for life, accident and health and property policy and contract claims for the years ended December 31, 2015, 2014 and 2013.

	For the Years Ended December 31,
	2015			2014		2013
	(In thousands)
Policy claims payable at January 1	$	9,560		9,488		11,015
Less:  reinsurance recoverable	950			686		1,188
Net balance at January 1	8,610			8,802		9,827
Acquisition of MGLIC	—			40		—
Add claims incurred, related to:
Current year	26,911			24,541		24,575
Prior years	(197		)	(33	)	(417	)
	26,714			24,508		24,158
Deduct claims paid, related to:
Current year	19,584			17,691		17,443
Prior years	6,630			7,049		7,740
	26,214			24,740		25,183
Net balance December 31	9,110			8,610		8,802
Plus:  reinsurance recoverable	543			950		686
Policy claims payable, December 31	$	9,653		9,560		9,488

The Company experienced favorable development in 2015 of $197,000. No unusual claims or trends have been noted.

The Company experienced favorable development in 2014 of $624,000 which was primarily related to SPLIC. IRC Section 7702 remediation claims costs added $591,000 to the prior years claims incurred making it look less favorable than actual experience. The favorable development in 2013 of $417,000 primarily related to CICA.