Note 12 Sale of Credit Life and Disability Segment

12 Months Ended

Dec. 31, 2011

Discontinued Operations and Disposal Groups

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 12.          Sale of Credit Life and Disability Segment

The Company sold its credit life and disability segment by entering into a 100% coinsurance agreement with an unaffiliated insurer effective December 31, 2007.  In accordance with the terms of such coinsurance agreement, the Company continued to administer this block of business through June 30, 2008. As a result of the subsequent assumption reinsurance agreement, the Company transferred the unearned premium reserves of this block to such insurer effective December 31, 2010.

The Company recorded income (loss) in 2010 and 2009 from discontinued operations representing expenses and changes in claims and reserves related to insurance liabilities for claims incurred prior to the sale on December 31, 2007 as follows:

		2011		2010		2009
Pretax loss from discontinued operations	$	-	$	(394)	$	(572)
Tax benefits allocated to discontinued operations		-		(138)		(873)
Income (loss) from discontinued operations	$	-	$	(256)	$	301

The Company did not record any expenses or changes in claims and reserves related discontinued operations in 2011.  In 2009, tax benefits include a $673,000 deferred benefit resulting from a capital loss associated with the difference in the tax basis of certain net assets sold.

Net liabilities related to the discontinued operations at December 31, 2010 on the accompanying Consolidated Balance Sheets, consisting of the claims liabilities for claims incurred prior to the sale, were $771,000. The net liability was reduced in 2011 by claim payments made during the year. Due to its immateriality, the residual balance is included in insurance reserves and policy claims liabilities on the accompanying Consolidated Balance Sheets at December 31, 2011.