Intangibles

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Note 6. Intangibles

Intangible assets consist of finite and indefinite life assets. Finite life intangible assets include customer and producer relationships and assembled workforce. Insurance company license is considered indefinite life intangible assets subject to annual impairment testing. The weighted average amortization period of identified intangible assets of finite useful life is 6.9 years as of December 31, 2011.

The components of intangible assets and their useful lives, accumulated amortization, and net carrying value as of December 31, 2011 and 2010 are summarized as follows:

		December 31, 2011						December 31, 2010
	Useful		Gross				Net		Gross				Net
	Life		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	(in yrs)		Value		Amortization		Amount		Value		Amortization		Amount
Insurance license	—	$	500,000	$	—	$	500,000	$	500,000	$	—	$	500,000
Customer relationships	10		3,400,000		850,000		2,550,000		3,400,000		510,000		2,890,000
Assembled workforce	7		950,000		339,328		610,672		950,000		203,614		746,386
Total		$	4,850,000	$	1,189,328	$	3,660,672	$	4,850,000	$	713,614	$	4,136,386

The Company recorded amortization expense, related to intangibles, of $475,714 for each of the years ended December 31, 2011 and 2010. The estimated aggregate amortization expense for the remaining life of finite life intangibles is as follows:

2012	$	475,714
2013		475,714
2014		475,714
2015		475,714
2016		407,816
Thereafter		850,000
	$	3,160,672