Deposit-Type Contracts

12 Months Ended

Dec. 31, 2013

Note 7. Deposit-Type Contracts

The Company's deposit-type contracts represent the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. Liabilities for these deposit-type contracts are included without reduction for potential surrender charges. This liability is equal to the accumulated account deposits, plus interest credited, and less policyholder withdrawals. The following table provides information about deposit-type contracts for the years ended December 31, 2013 and 2012:

	Year Ended
	December 31, 2013			December 31, 2012
Beginning balance	$	12,865,671		$	11,933,276
Change in deposit-type contracts from Old Reliance
and Great Plains Life acquisition		-			737,230
Change in deposit-type contracts assumed from SNL		(66,572	)		(219,011	)
Change in deposit-type contracts fully ceded by Capital Reserve		(683,070	)		(958,644	)
Deposits received		2,636,959			1,397,385
Investment earnings		253,189			96,225
Withdrawals		(266,522	)		(120,790	)
Ending balance	$	14,739,655		$	12,865,671

Under the terms of American Life's coinsurance agreement with SNL, American Life assumes certain deposit-type contract obligations, as shown in the table above. Additionally, Capital Reserve cedes 100% of its direct business to SNL. Accordingly, this amount is presented within the corresponding single line above. The remaining deposits, withdrawals and interest credited represent those for American Life's direct business.

- Definition

The entire disclosure for insurance products considered to be short-duration contracts because the contract provides insurance protection for a fixed period of short duration and enables the insurer to cancel the contract or to adjust the provisions of the contract at the end of any contract period, such as adjusting the amount of premiums charged or coverage provided, and on contracts on which amounts are paid but insurance risk is not transferred.

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