Note 20 Policy Block Acquisitions

12 Months Ended

Dec. 31, 2011

Policy Block Acquisitions

Policy Block Acquisitions

Note 20.          Acquisitions of Policy Blocks  

In addition to its core life and health lines of business, IHC has acquired blocks of life insurance and annuity policies from other insurance companies, guaranty associations and liquidators. The deferred acquisition costs that arise from the acquisition of these policy blocks are costs that vary with, and are primarily related to, the acquisition of new and renewal insurance contracts. As these were acquisitions of blocks of existing policies, the deferral reflects the purchase price of the policies and the associated finder’s fees. Both of these were variable and directly related to obtaining the policy block.

The Company did not record any significant policy block acquisitions in 2011 or 2009. Madison National Life acquired a block of life insurance policies during 2010. The following reflects the impact of these transactions:

			2010
Liabilities:
	Insurance reserves - life	$	1,603
	Other		3
			1,606
Non-cash assets:
	Deferred acquisition costs		100
	Other investments (policy loans)		251
	Due and unpaid premiums		63
			414
Cash received		$	1,192