RELATED PARTY TRANSACTIONS

3 Months Ended

May 31, 2013

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

(13) RELATED PARTY TRANSACTION

We currently operate under an agreement with ESP Communications, Inc. (“ESP“), which is owned by the spouse of our Chief Executive Officer. Under the agreement, ESP performs certain post-settlement services for us, which include periodic contact with insureds and their health care providers, monthly record checks to determine an insured’s status, and working with the outside escrow agent in the filing of death claims. Either party may cancel the agreement with a 30-day written notice. We currently pay ESP $7,500 on a semi-monthly basis for its services. We recorded management services expense concerning this agreement with ESP of $45,000 in each of the First Quarters of this year and last year.

We periodically use an aircraft owned by our Chairman and CEO, and reimburse him for the incremental costs of our use, as described in applicable Federal Aviation Administration regulations (FAA Part 91, Subpart F). We believe the reimbursed cost is well below the fair rental value for such use. In the three months ended May 31, 2013 and 2012, we reimbursed costs of $106,696 and $106,919, respectively, for such use. We have also periodically used a motoryacht owned by our Chairman and CEO, and reimbursed him for the direct costs of our use. We believe the reimbursed cost was well below the fair rental value for such use. In the First Quarter of last year, we had no reimbursed costs for use of the motoryacht. This yacht was sold in the Fourth Quarter of last year, so we had no reimbursed costs in the First Quarter of this year. As of February 28, 2013, we had an account payable due to Mr. Pardo of $125,876, which arose from the aircraft use. Nothing was owed to Mr. Pardo as of May 31, 2013.