Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Commitments and Contingencies

Commitments and Contingencies

13.  Commitments and Contingencies

The Company is involved in various legal proceedings that arise in the ordinary course of its business.  In the opinion of management, after consultation with counsel, the resolutions of these proceedings are not expected to have a material adverse effect on the Company’s condensed consolidated financial position, results of its operations or cash flows.

The Company has commenced searching the U.S. Social Security Administration’s Death Master File to determine if unclaimed death benefits may be payable under life insurance and similar products.  The Company has not completed its work in estimating the amount of additional benefits that may be payable to beneficiaries or escheated under state unclaimed property laws.  Based on available information, management believes that such amount will not have a material effect on the financial position of the Company.

The Company has a revolving credit facility agreement in the amount of $50,000 for general corporate purposes.  The credit facility matures on May 26, 2013.  Interest accrues at a rate dependent on various conditions and terms of borrowings.  The agreement requires, among other things, the Company to maintain a minimum adjusted net worth, as defined, of $1,000,000 plus 50% of its net income, if positive and as defined in the credit facility agreement (both compiled on the unconsolidated statutory accounting basis prescribed by the National Association of Insurance Commissioners), for each quarter ending after March 31, 2010.  The Company had no borrowings under the credit facility at September 30, 2011 or December 31, 2010 and was in compliance with all covenants.

The Company makes commitments to fund partnership interests and mortgage loans on real estate investments in the normal course of its business.  The amounts of these unfunded commitments at September 30, 2011 and December 31, 2010 were $296,064 and $95,688, respectively, all of which is due within one year from the dates indicated.