Note 11. Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Notes

Note 11. Commitments and Contingencies

Note 11.          Commitments and Contingencies

On September 1, 2013, Madison National Life entered into an agreement with a former policyholder for a return of premium in connection with health insurance business written during 2007.  The agreement was entered into in response to a potential lawsuit and, as a result, the Company accrued $1,541,000 in return of premium reserves (net of recoveries). The Company terminated the MGU that produced this business in 2008. In April 2014, the amount was paid in full representing final refund of premium.