Reinsurance

In the normal course of its business, the Company seeks to limit its exposure to loss on any single insured and to recover a portion of benefits paid by ceding risks to other insurance enterprises under excess coverage, quota share, yearly renewable term, coinsurance, and modified coinsurance contracts. The Company retains an initial maximum of $3,500 of coverage per individual life. This initial retention limit of $3,500 may increase due to automatic policy increases in coverage at a maximum rate of $175 per annum, with an overall maximum increase in coverage of $1,000.

Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. At December 31, 2016, and 2015, the reinsurance recoverables had carrying values in the amounts of $598,864 and $604,946, respectively. Included in these amounts are $522,950 and $530,213 at December 31, 2016, and 2015, respectively, associated with reinsurance agreements with related parties. At December 31, 2016, and 2015, 87% and 88%, respectively, of the total reinsurance receivable was due from CLAC, a related party.

The Company assumes risk from approximately 40 insurers and reinsurers by participating in yearly renewable term and coinsurance pool agreements. When assuming risk, the Company seeks to generate revenue while maintaining reciprocal working relationships with these partners as they also seek to limit their exposure to loss on any single life.

Maximum capacity to be retained by the Company is dictated at the treaty level and is monitored annually to ensure the total risk retained on any one life is limited to a maximum retention of $4,500.

The following tables summarize life insurance in-force and total premium income at and for the year ended December 31, 2016:



	Life insurance in-force
	Individual			Group			Total
Written and earned direct	$	54,618,888		$	41,809,635		$	96,428,523
Reinsurance ceded	(10,568,467		)	(833,090		)	(11,401,557		)
Reinsurance assumed	56,165,011			—			56,165,011
Net	$	100,215,432		$	40,976,545		$	141,191,977
Percentage of amount assumed to net	56		%	—		%	40		%



	Premium income
	Life insurance			Annuities			Total
Written and earned direct	$	392,654		$	1,998		$	394,652
Reinsurance ceded	(52,397		)	(81		)	(52,478		)
Reinsurance assumed	123,175			—			123,175
Net	$	463,432		$	1,917		$	465,349

The following tables summarizes life insurance in-force and total premium income at and for the year ended December 31, 2015:



	Life insurance in-force
	Individual			Group			Total
Written and earned direct	$	53,403,194		$	41,855,857		$	95,259,051
Reinsurance ceded	(10,169,625		)	(393,512		)	(10,563,137		)
Reinsurance assumed	58,742,234			—			58,742,234
Net	$	101,975,803		$	41,462,345		$	143,438,148
Percentage of amount assumed to net	58		%	—		%	41		%



	Premium income
	Life insurance			Annuities			Total
Written and earned direct	$	368,442		$	503		$	368,945
Reinsurance ceded	(48,107		)	(86		)	(48,193		)
Reinsurance assumed	124,798			—			124,798
Net	$	445,133		$	417		$	445,550

The following table summarizes total premium income for the year ended December 31, 2014:



	Premium income
	Life insurance			Annuities			Total
Written and earned direct	$	360,959		$	1,255		$	362,214
Reinsurance ceded	(45,925		)	(95		)	(46,020		)
Reinsurance assumed	130,201			—			130,201
Net	$	445,235		$	1,160		$	446,395

Reinsurance recoveries for life and other policy benefits were $39,520, $23,179, and $23,965 for the years ended December 31, 2016, 2015, and 2014, respectively.