Commitments and Contingencies Disclosure [Text Block]

12 Months Ended

Dec. 31, 2017

Notes

Commitments and Contingencies Disclosure

Note 15.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 2017, 2016 and 2015 for operating leases was $2,117,000, $2,316,000 and $3,088,000, 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, 2017 are as follows (in thousands): 

2018	$	2,251
2019		1,953
2020		1,929
2021		1,460
2022		1,125
2023 and thereafter		195
Total	$	8,913

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.

A third party administrator with whom we formerly did business (“Plaintiff”) filed a Complaint dated May 17, 2017 in the United States District Court, Northern District of Texas, Dallas Division, naming IHC, Madison National Life, Standard Security Life, and IHC Carrier Solutions, Inc. (collectively referred to as “Defendants”). The Complaint concerns agreements entered into by Standard Security Life and Madison National Life with Plaintiff, as well as other allegations made by Plaintiff against the Defendants.  The Complaint seeks injunctive relief and damages in an amount exceeding $50,000,000, profit share payments allegedly owed to Plaintiff under the agreements totaling at least $3,082,000 through 2014, plus additional amounts for 2015 and 2016, and exemplary and punitive damages as allowed by law and fees and costs.  The Defendants believe these claims to be without merit.  The Defendants moved to Compel Arbitration and Dismiss or Stay the original Complaint.  The Plaintiff filed an Amended Complaint on August 18, 2017.  The Defendants filed a Motion to Compel Arbitration or Stay the Amended Complaint, which is still pending. Madison National Life and Standard Security Life have demanded arbitration against this third party administrator.  In the fourth quarter of 2017, Madison National Life paid fines in the state of Texas primarily related to the claims payment practices of the Plaintiff.