Note 12. Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Notes

Note 12. Commitments and Contingencies

Note 12.          Commitments and Contingencies

On September 1, 2013, Madison National Life entered into an agreement with a former policyholder and accrued 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. In April 2014, the Company fulfilled its obligation under the terms of the agreement with a payment of $1,541,000 representing return of premium reserves (net of recoveries). The Company terminated the MGU that produced this business in 2008.