Investments

12 Months Ended

Dec. 31, 2016

Marketable Securities [Abstract]

Investments

Note 4. Investments

The amortized cost and estimated fair value of investments classified as available-for-sale as of December 31, 2016 and 2015 are as follows:

	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
December 31, 2016:
Fixed maturities:
U.S. government obligations	$	3,390,545	$	-	$	166,326	$	3,224,219
States and political subdivisions -- general obligations		383,730		732		3,067		381,395
States and political subdivisions -- special revenue		275,262		5,633		3,160		277,735
Corporate		24,974,546		16,232		1,135,188		23,855,590
Total fixed maturities	$	29,024,083	$	22,597	$	1,307,741	$	27,738,939
December 31, 2015:
Fixed maturities:
U.S. government obligations	$	3,256,704	$	6,610	$	69,815	$	3,193,499
States and political subdivisions -- general obligations		1,001,993		-		6,942		995,051
States and political subdivisions -- special revenue		275,333		-		1,997		273,336
Corporate		19,745,201		1,468		937,278		18,809,391
Total fixed maturities	$	24,279,231	$	8,078	$	1,016,032	$	23,271,277

The Company had five securities that individually exceed 10% of the total of the state and political subdivisions categories as of December 31, 2016. The amortized cost, fair value, credit rating, and description of each such security is as follows:

	Amortized		Estimated
	Cost		Fair Value		Credit Rating
December 31, 2016:
Fixed maturities:
States and political subdivisions -- general obligations
Bellingham Wash	$	110,988	$	109,633	AA+
Longview Washington Refunding		163,172		161,460	NR
Memphis Tenn		109,570		110,302	AA
States and political subdivisions -- special revenue
Philadelphia PA Auth For Indl Dev City Svc Agreement		149,411		146,973	AA
Riviera Beach FLA Pub Impt Rev		100,392		106,025	AA
Total	$	633,533	$	634,393

The following table summarizes, for all securities in an unrealized loss position at December 31, 2016 and 2015, 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.

	December 31, 2016					December 31, 2015
			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	$	3,224,219	$	166,326	17	$	2,484,188	$	62,343	14
States and political subdivisions --
general obligations		271,093		3,066	2		660,569		5,004	5
States and political subdivisions --
special revenue		171,711		3,160	2		248,146		1,618	2
Corporate		19,737,965		935,546	112		15,320,916		796,204	97
Greater than 12 months:
U.S. government obligations		-		-	-		305,055		7,472	3
States and political subdivisions --
general obligations		-		-	-		334,481		1,938	1
States and political subdivisions --
special revenue		-		-	-		25,190		379	1
Corporate		2,558,275		199,643	12		3,166,108		141,074	22
Total fixed maturities	$	25,963,263	$	1,307,741	145	$	22,544,653	$	1,016,032	145

Based on our review of the securities in an unrealized loss position at December 31, 2016 and 2015, no other-than-temporary impairments were deemed necessary. The Company had one bond related to non-investment grade, Diamond Offshore Drilling, Inc., which has an unrealized loss of $90,807. The remaining unrealized loss of $1,216,934 was related to investment grade bonds. Management believes that the Company will fully recover its cost basis in the securities held at December 31, 2016, 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 December 31, 2016, 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	$	-	$	-
Due after one year through five years		1,319,856		1,299,868
Due after five years through ten years		13,739,800		13,196,864
Due after ten years		13,964,427		13,242,207
	$	29,024,083	$	27,738,939

The Company is required to hold assets on deposit for the benefit of policyholders in accordance with statutory rules and regulations. At December 31, 2016 and 2015, these required deposits had a total amortized cost of $2,747,571 and $6,186,865 and fair values of $2,635,225 and $6,000,376, respectively.

The components of net investment income for the years ended December 31, 2016 and 2015 are as follows:

	Year Ended December
	2016			2015
Fixed maturities	$	889,860		$	681,999
Equity securities		1,434			186
Other		58,849			44,870
		950,143			727,055
Less investment expenses		(71,152	)		(63,087	)
Investment income, net of expenses	$	878,991		$	663,968

Proceeds for the years ended December 31, 2016 and 2015 from sales of investments classified as available for sale were $14,179,936 and $13,394,158, respectively. Gross gains of $178,104 and $148,661 and gross losses of $54,610 and $266,025 were realized on those sales during the years ended December 31, 2016 and 2015, respectively.

As of December 31, 2014, all mortgage loans were under contract to be sold. The sales were completed on January 15, 2015. The following table summarizes the activity in the mortgage loans on real estate, held for investment account for the years ended December 31, 2016 and 2015.

	Year Ended December 31,
	2016		2015
Balance at beginning of period	$	-	$	349,386
Proceeds from settlement on mortgage loans on real estate, held for investment		-		(349,386	)
Balance at end of period	$	-	$	-