Note 23 Dividend Restrictrictions	12 Months Ended
Dec. 31, 2011
Dividend Restrictrictions
Dividend Restrictrictions	Note 23. Dividend Restrictions on Insurance Subsidiaries and IHC Dividends from Madison National Life are subject to the prior notification to the Commissioner of Insurance of the State of Wisconsin if such dividend distribution exceeds 115% of the distribution for the corresponding period of the previous year. In addition, if such dividends, together with the fair market value of other dividends paid or credited and distributions made within the preceding twelve months, exceed the lesser of (i) total net gain from operations for the preceding calendar year minus realized capital gains for that calendar year and (ii) 10% of surplus with regard to policyholders as of December 31 of the preceding year, such dividends may be paid so long as such dividends have not been disapproved by the Wisconsin Insurance Commissioner within 30 days of its receipt of notice thereof. In the fourth quarter of 2011, upon approval by the Wisconsin Insurance Commissioner, Madison National Life transferred to its parent, a subsidiary of IHC, all of the outstanding common stock of its wholly owned subsidiary, Standard Security Life, representing an extraordinary dividend with a statutory value of $106,314,000. In addition, Madison National Life declared and paid cash dividends of $2,000,000, $3,450,000 and $3,000,000, in 2011, 2010 and 2009, respectively. Madison National Life's statutory capital and surplus was $70,266,000 (unaudited) and $174,171,000 as of December 31, 2011 and 2010, respectively. For the years ended December 31, 2011, 2010 and 2009, Madison National Life's statutory net income was $15,080,000 (unaudited), $12,820,000 and $21,423,000, respectively. The payment of dividends by Standard Security Life to its parent, a subsidiary of IHC, is subject to the prior notification to the New York State Insurance Department if such dividends, together with other dividends in such calendar year exceed the lesser of (i) 10% of surplus as regards policyholders as of the immediately preceding calendar year and (ii) net gain from operations for the immediately preceding calendar year, not including realized capital gains. Such dividends may be paid so long as they have not been disapproved by the New York State Department of Insurance within 30 days of its receipt of notice thereof. Standard Security Life declared and paid dividends to its parent of $4,950,000, $8,500,000 and $7,800,000 in 2011, 2010 and 2009, respectively. Standard Security Life's statutory capital and surplus was $106,481,000 (unaudited) and $109,264,000 as of December 31, 2011 and 2010, respectively. For the years ended December 31, 2011, 2010 and 2009, Standard Security Life's statutory net income was $7,709,000 (unaudited), $3,267,000 and $8,783,000, respectively. Dividends from Independence American to its parent, a subsidiary of AMIC, are subject to the prior notification to the Delaware Insurance Commissioner, if such dividends, together with the fair market value of other dividends or distributions made within the preceding twelve months, exceed the greater of (i) 10% of surplus as regards policyholders as of the preceding December 31 or (ii) net income, not including realized capital gains, for the twelve-month period ending the December 31 next preceding. Such dividends may be paid as long as they have not been disapproved by the Delaware Insurance Commissioner within 30 days of its receipt of notice thereof. Independence American paid dividends of $1,000,000 and $1,500,000 in 2011 and 2010, respectively. Independence American’s statutory surplus was $50,466,000 (unaudited) and $47,392,000 as of December 31, 2011 and 2010, respectively, and statutory net income was $3,407,000 (unaudited) and $2,697,000 for 2011and 2010, respectively. Under Delaware law, IHC is permitted to pay dividends from surplus or net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. IHC declared cash dividends of $807,000 in 2011, $762,000 in 2010 and $771,000 in 2009. In February 2012, IHC announced a special 10% stock dividend payable to shareholders of record on February 17, 2012 with a distribution date of March 5, 2012. Fractional shares will be paid in cash in lieu of stock. IHC also announced it will increase its annual dividend from $.05 to $.07 per share.

Note 23 Dividend Restrictrictions

12 Months Ended

Dec. 31, 2011

Note 23. Dividend Restrictions on Insurance Subsidiaries and IHC

Dividends from Madison National Life are subject to the prior notification to the Commissioner of Insurance of the State of Wisconsin if such dividend distribution exceeds 115% of the distribution for the corresponding period of the previous year. In addition, if such dividends, together with the fair market value of other dividends paid or credited and distributions made within the preceding twelve months, exceed the lesser of (i) total net gain from operations for the preceding calendar year minus realized capital gains for that calendar year and (ii) 10% of surplus with regard to policyholders as of December 31 of the preceding year, such dividends may be paid so long as such dividends have not been disapproved by the Wisconsin Insurance Commissioner within 30 days of its receipt of notice thereof. In the fourth quarter of 2011, upon approval by the Wisconsin Insurance Commissioner, Madison National Life transferred to its parent, a subsidiary of IHC, all of the outstanding common stock of its wholly owned subsidiary, Standard Security Life, representing an extraordinary dividend with a statutory value of $106,314,000. In addition, Madison National Life declared and paid cash dividends of $2,000,000, $3,450,000 and $3,000,000, in 2011, 2010 and 2009, respectively. Madison National Life's statutory capital and surplus was $70,266,000 (unaudited) and $174,171,000 as of December 31, 2011 and 2010, respectively. For the years ended December 31, 2011, 2010 and 2009, Madison National Life's statutory net income was $15,080,000 (unaudited), $12,820,000 and $21,423,000, respectively.

The payment of dividends by Standard Security Life to its parent, a subsidiary of IHC, is subject to the prior notification to the New York State Insurance Department if such dividends, together with other dividends in such calendar year exceed the lesser of (i) 10% of surplus as regards policyholders as of the immediately preceding calendar year and (ii) net gain from operations for the immediately preceding calendar year, not including realized capital gains. Such dividends may be paid so long as they have not been disapproved by the New York State Department of Insurance within 30 days of its receipt of notice thereof. Standard Security Life declared and paid dividends to its parent of $4,950,000, $8,500,000 and $7,800,000 in 2011, 2010 and 2009, respectively. Standard Security Life's statutory capital and surplus was $106,481,000 (unaudited) and $109,264,000 as of December 31, 2011 and 2010, respectively. For the years ended December 31, 2011, 2010 and 2009, Standard Security Life's statutory net income was $7,709,000 (unaudited), $3,267,000 and $8,783,000, respectively.

Dividends from Independence American to its parent, a subsidiary of AMIC, are subject to the prior notification to the Delaware Insurance Commissioner, if such dividends, together with the fair market value of other dividends or distributions made within the preceding twelve months, exceed the greater of (i) 10% of surplus as regards policyholders as of the preceding December 31 or (ii) net income, not including realized capital gains, for the twelve-month period ending the December 31 next preceding. Such dividends may be paid as long as they have not been disapproved by the Delaware Insurance Commissioner within 30 days of its receipt of notice thereof. Independence American paid dividends of $1,000,000 and $1,500,000 in 2011 and 2010, respectively. Independence American’s statutory surplus was $50,466,000 (unaudited) and $47,392,000 as of December 31, 2011 and 2010, respectively, and statutory net income was $3,407,000 (unaudited) and $2,697,000 for 2011and 2010, respectively.

Under Delaware law, IHC is permitted to pay dividends from surplus or net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. IHC declared cash dividends of $807,000 in 2011, $762,000 in 2010 and $771,000 in 2009. In February 2012, IHC announced a special 10% stock dividend payable to shareholders of record on February 17, 2012 with a distribution date of March 5, 2012. Fractional shares will be paid in cash in lieu of stock. IHC also announced it will increase its annual dividend from $.05 to $.07 per share.