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Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at June&#160;30, 2012 and the results of operations for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the Company&#8217;s operating results for a full year. 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Such litigation has been pursued on behalf of purported classes of insurance purchasers, often questioning the conduct of insurers in the marketing of their products. In addition, state regulatory bodies, the SEC, FINRA, and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning the Company&#8217;s compliance with laws in relation to, but not limited to, insurance, securities and activities of broker-dealers and investment advisors. </font></p> <p style="margin-top:12px;margin-bottom:0px" align="justify"><font style="font-family:times new roman" size="2">The Company&#8217;s retail broker-dealer subsidiary is in an industry that involves substantial risks of liability. The Company&#8217;s broker-dealer subsidiary, Sunset Financial Services (SFS), has been named as a defendant in several new cases in recent periods. In recent years, regulatory proceedings, litigation, and FINRA arbitration actions related to registered representative activity and securities products (including, mutual funds, variable annuities, and alternative investments, such as real estate investment products and oil and gas investments) have continued to increase.&#160;Given the significant decline in the major market indices beginning in 2008, and the generally poor performance of investments that have historically been considered safe and conservative, there is the potential for an increase in the number of proceedings to which a broker-dealer may be named as a party. </font></p> <p style="margin-top:12px;margin-bottom:0px" align="justify"><font style="font-family:times new roman" size="2"> In addition to the above, the Company and its subsidiaries are defendants in, or subject to, other claims or legal actions related to insurance and investment products. 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