Income Taxes

6 Months Ended

Jun. 30, 2011

Income Taxes [Abstract]

Income Taxes

Note 8.  Income Taxes

A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense (benefit) is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Federal income tax provision at statutory rate of 35%	$	116		$	22		$	336		$	223
Dividends-received deduction		(21	)		(43	)		(70	)		(92	)
Small life insurance company adjustment		20			-			-			-
Other		25			8			33			13
Income tax expense (benefit)	$	140		$	(13	)	$	299		$	144

The components of the income tax expense (benefit) were:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011		2010
Current - Federal	$	(11	)	$	6		$	4	$	6
Deferred - Federal		151			(19	)		295		138
Total	$	140		$	(13	)	$	299	$	144

The primary difference between the effective tax rate and the federal statutory income tax rate for the three month and six month periods ended June 30, 2011 and 2010, respectively, resulted from the dividends-received deduction (“DRD”).  The current estimated DRD is adjusted as underlying factors change.  The actual current year DRD can vary from the estimates based on, but not limited to, actual distributions from these investments as well as appropriate levels of taxable income.