Note 8. 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 than GAAP. The following table summarizes the statutory net loss and statutory capital and surplus of American Life, Capital Reserve, and Great Plains Life for the nine months ended September 30, 2015 and 2014 and as of September 30, 2015 and December 31, 2014.

	Statutory Net Loss for the Nine months ended September 30,
	2015		2014
American Life	$	(835,429)	$	(1,075,701)
Capital Reserve	$	(43,513)	$	(109,226)
Great Plains Life	$	(319,807)	$	(210,886)

	Statutory Capital and Surplus as of
	September 30, 2015		December 31, 2014
American Life	$	2,115,996	$	2,429,604
Capital Reserve	$	1,498,857	$	1,332,771
Great Plains Life	$	1,765,533	$	2,025,982

Each Life company's capital and surplus is in compliance with their individual RBC capital requirements.