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      &lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"&gt;&lt;b&gt;&lt;u&gt;NOTE

      1 - Nature of Operations&lt;/u&gt;&lt;/b&gt; &lt;u&gt;&lt;/u&gt;&lt;/font&gt;

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      &lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"&gt;Investors

      Heritage Capital Corporation is the holding company of

      Investors Heritage Life Insurance Company; Investors Heritage

      Printing, Inc., a printing company; Investors Heritage

      Financial Services Group, Inc., an insurance marketing

      company; is the sole member of At Need Funding, LLC, a

      limited liability company that provides advance funding of

      funerals in exchange for the irrevocable assignment of life

      insurance policies from other nonaffiliated companies; and is

      the sole member of Heritage Funding, LLC, a limited liability

      company that invests in various business ventures. These

      entities are collectively hereinafter referred to as the

      &amp;#8220;Company&amp;#8221;. In excess of 99% of Investors Heritage

      Capital&amp;#8217;s consolidated revenue is generated by

      Investors Heritage Life.&lt;/font&gt;

    &lt;/p&gt;&lt;br/&gt;&lt;p id="PARA2853" style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"&gt;

      &lt;font style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"&gt;Our

      principal operations involve the sale and administration of

      various insurance and annuity products, including, but not

      limited to, participating and non-participating whole life,

      limited pay life, universal life, annuity contracts, credit

      life, credit accident and health and group insurance

      policies. The principal markets for the Company&amp;#8217;s

      products are in Kentucky, North Carolina, Georgia, Indiana,

      Michigan, Ohio, Pennsylvania, South Carolina, Tennessee,

      Texas and Virginia.&lt;/font&gt;

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 -Publisher FASB

 -Name Accounting Standards Codification

 -Topic 275

 -SubTopic 10

 -Section 50

 -Paragraph 2

 -URI http://asc.fasb.org/extlink&amp;oid=6927468&amp;loc=d3e6003-108592



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