Note 1. Significant Accounting Policies and Practices: Participating Policies (Policies)

12 Months Ended

Dec. 31, 2012

Policies

Participating Policies

(L)       Participating Policies

Participating policies represent 11.4%, 11.3% and 11.4% of the individual life insurance in-force and 7.8%, 9.3% and 11.3% of the net life and annuity premiums earned, as of and for the years ended December 31, 2012,  2011 and 2010, respectively, and provide for the payment of dividends.  Dividends to policyholders are determined annually and are payable only upon declaration by the Board of Directors of the insurance companies.