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Variable Interest Entity Disclosure [Text Block]
3 Months Ended
Mar. 31, 2018
Notes  
Variable Interest Entity Disclosure

Note 6.Other Investments, Including Variable Interest Entities 

 

Included in other investments is our investment in Ebix Health Exchange which administers various lines of health insurance for IHC’s insurance subsidiaries. The carrying value of the Company’s equity investment in Ebix Health Exchange is $7,672,000 and $8,188,000 at March 31, 2018 and December 31, 2017, respectively, and the Company recorded $(516,000) and $(96,000), respectively, of equity income (loss) from its investment for the three months ended March 31, 2018 and 2017.

 

At March 31, 2018 and December 31, 2017, the Company’s Consolidated Balance Sheets include $1,928,000 and $1,859,000, respectively, of notes and other amounts receivable from Ebix Health Exchange, and include $1,559,000 and $1,139,000, respectively, of administrative fees and other expenses payable to Ebix Health Exchange, which are included in other assets and accounts payable, accruals and other liabilities, respectively.  For the three months ended March 31, 2018, and 2017, the Company’s Consolidated Statements of Income include $2,547,000 and $2,368,000, respectively, of administrative fee expenses to Ebix Health Exchange, which are included in selling, general and administrative expenses.

 

Variable Interest Entities

 

The Company has a minority interest in certain limited partnerships that we have determined to be Variable Interest Entities (“VIEs”). The aforementioned VIEs are not required to be consolidated in the Company’s condensed consolidated financial statements as we are not the primary beneficiary since we do not have the power to direct the activities that most significantly impact the VIEs’ economic performance.

 

The Company will periodically reassess whether we are the primary beneficiary in any of these investments. The reassessment process will consider whether we have acquired the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. Our maximum loss exposure is limited to our combined $3,981,000 carrying value in these equity investments which is included in other investments in the Condensed Consolidated Balance Sheet as of March 31, 2018.