Note 2. Investments

See Note 1 in our 2014 Form 10-K for information regarding our accounting policy relating to available-for-sale (“AFS”) securities, which also includes additional disclosures regarding our fair value measurements.

The cost or amortized cost and estimated fair value of investments classified as available-for-sale as of September 30, 2015 and December 31, 2014 are as follows:

	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
September 30, 2015:
Fixed maturities:
U.S. government obligations	$	3,715,486	$	14,412	$	27,767	$	3,702,131
States and political subdivisions -- general obligations		392,324		8		4,424		387,908
States and political subdivisions -- special revenue		146,265		1,968		1,282		146,951
Corporate		17,097,507		1,865		737,819		16,361,553
Total fixed maturities	$	21,351,582	$	18,253	$	771,292	$	20,598,543
December 31, 2014:
Fixed maturities:
U.S. government obligations	$	3,670,531	$	124,573	$	22,350	$	3,772,754
States and political subdivisions -- general obligations		1,054,400		4,971		30,363		1,029,008
States and political subdivisions -- special revenue		1,254,184		2,699		35,033		1,221,850
Corporate		13,310,436		2,071		381,929		12,930,578
Total fixed maturities		19,289,551		134,314		469,675		18,954,190
Equity securities:
Preferred corporate stock		75,000		-		-		75,000
Total equity securities		75,000		-		-		75,000
Total	$	19,364,551	$	134,314	$	469,675	$	19,029,190

The Company has four securities that individually exceed 10% of the total of the state and political subdivisions categories as of September 30, 2015. The amortized cost, fair value, credit ratings, and description of the security is as follows:

	Amortized		Estimated
	Cost		Fair Value		Credit Rating
September 30, 2015:
Fixed maturities:
States and political subdivisions -- general obligations
Maricopa County Arizona School District No. 31	$	337,047	$	332,623	AA
Dolton Illinois		55,277		55,285	AA
States and political subdivisions -- special revenue
Pennington Cnty SD CTFS Tax		65,824		65,152	AA-
South Dakota ST Health & RV		54,858		56,826	AA-
Total	$	513,006	$	509,886

The following table summarizes, for all securities in an unrealized loss position at September 30, 2015 and December 31, 2014, the estimated fair value, pre-tax gross unrealized loss and number of securities by length of time that those securities have been continuously in an unrealized loss position.

	September 30, 2015						December 31, 2014
			Gross		Number				Gross		Number
	Estimated		Unrealized		of		Estimated		Unrealized		of
	Fair Value		Loss		Securities		Fair Value		Loss		Securities
Fixed Maturities:
Less than 12 months:
U.S. government obligations	$	2,567,694	$	24,291		12	$	107,273	$	3,963		1
States and political subdivisions --
special revenue		65,152		671		1		-		-		-
Corporate		12,173,131		586,003		97		8,253,570		261,055		47
Greater than 12 months:
U.S. government obligations		309,696		3,476		3		1,096,399		18,387		8
States and political subdivisions --
general obligations		332,623		4,424		1		709,176		30,363		4
States and political subdivisions --
special revenue		24,973		611		1		1,052,184		35,033		9
Corporate		3,760,570		151,816		28		3,874,046		120,874		31
Total securities	$	19,233,839	$	771,292		143	$	15,092,648	$	469,675		100

Based on our review of the securities in an unrealized loss position at September 30, 2015 and December 31, 2014, no other-than-temporary impairments were deemed necessary. Management believes that the Company will fully recover its cost basis in the securities held at September 30, 2015, and management does not have the intent to sell nor is it more likely than not that the Company will be required to sell such securities until they recover or mature. The temporary impairments shown herein are primarily the result of the current interest rate environment rather than credit factors that would imply other-than-temporary impairment.

The amortized cost and estimated fair value of fixed maturities at September 30, 2015, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	7,968	$	8,345
Due after one year through five years		1,567,129		1,565,280
Due after five years through ten years		12,275,911		11,863,952
Due after ten years		7,500,574		7,160,966
	$	21,351,582	$	20,598,543

The Company is required to hold assets on deposit for the benefit of policyholders in accordance with statutory rules and regulations. At September 30, 2015 and December 31, 2014, these required deposits had a total amortized cost of $6,270,765 and $3,824,485 and fair values of $6,176,090 and $3,918,911, respectively.

The components of net investment income for the three and nine months ended September 30, 2015 and 2014 are as follows:

	Three months ended September 30,						Nine months ended September 30,
	2015			2014			2015			2014
Fixed maturities	$	167,947		$	114,332		$	488,562		$	275,517
Equity securities		-			-			186			-
Cash and short-term investments		1			603			3			2,306
Gain (loss) from equity method investments		(79,000	)		(88,595	)		(95,650	)		(315,000	)
Other		2,415			30,644			32,831			65,372
		91,363			56,984			425,932			28,195
Less investment expenses		(12,677	)		(11,584	)		(51,501	)		(39,887	)
	$	78,686		$	45,400		$	374,431		$	(11,692	)

Proceeds for the three months ended September 30, 2015 and 2014 from sales of investments classified as available-for-sale were $3,108,704 and $1,886,156, respectively. Gross gains of $28,366 and $19,167 and gross losses of $44,454 and $5,238 were realized on those sales during the three months ended September 30, 2015 and 2014, respectively. Proceeds for the nine months ended September 30, 2015 and 2014 from sales of investments classified as available-for-sale were $10,274,724 and $7,447,297, respectively. Gross gains of $146,767 and $40,807 and gross losses of $159,150 and $32,539 were realized on those sales during the nine months ended September 30, 2015 and 2014, respectively. The gross losses were due to sales of securities necessitated to comply with laws of insurance regulations relating to concentration of securities.

As of September 30, 2015, the Company had no mortgage loans. The following table summarizes the activity in the mortgage loans on real estate, held for investment account for the periods ended September 30, 2015 and December 31, 2014.

	Nine months ended			Year ended
	September 30, 2015			December 31, 2014
Balance at beginning of period	$	349,386		$	665,569
Proceeds from payments on mortgage loans on real estate, held for investment		-			(3,931	)
Proceeds from settlement on mortgage loans on real estate, held for investment		(349,386	)		(312,252	)
Balance at end of period	$	-		$	349,386