Note 9. Statutory Net Income and Surplus

American Life is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Arizona Department of Insurance. Likewise, Capital Reserve and Great Plains Life are required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Missouri and South Dakota Departments of Insurance, respectively. Statutory practices primarily differ from GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. The following table summarizes the statutory net loss and statutory capital and surplus of American Life, Capital Reserve, and Great Plains Life as of December 31, 2013 and 2012 and for the years ended December 31, 2013 and 2012.

	Statutory Capital and Surplus as of
	December 31, 2013		December 31, 2012
American Life	$	1,840,429	$	1,981,613
Capital Reserve	$	1,280,970	$	1,396,147
Great Plains Life	$	2,103,988	$	2,180,787

	Statutory Net Loss for the Years Ended December 31,
	2013		2012
American Life	$	154,371	$	911,049
Capital Reserve	$	115,884	$	66,813
Great Plains Life	$	160,698	$	116,914