Note 13. Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Notes

Note 13. Commitments and Contingencies

Note 13.          Commitments and Contingencies

            Certain subsidiaries of the Company are obligated under non-cancelable operating lease agreements for office space. Total rental expense for the years 2014, 2013 and 2012 for operating leases was $3,403,000, $3,470,000 and $3,750,000, respectively.

 The approximate minimum annual rental payments under operating leases that have remaining non-cancelable lease terms in excess of one year at December 31, 2014 are as follows (in thousands):

2015	$	3,291
2016		2,723
2017		1,206
2018		790
2019		118
2020 and thereafter		29
Total	$	8,157

We are involved in legal proceedings and claims that arise in the ordinary course of our businesses. We have established reserves that we believe are sufficient given information presently available relating to our outstanding legal proceedings and claims.  We do not anticipate that the result of any pending legal proceeding or claim will have a material adverse effect on our financial condition or cash flows, although there could be such an effect on our results of operations for any particular period.

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. 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.