Note 5.

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses

The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses, by major product, is as follows:

Property and Casualty Insurance Products	Six Months Ended June 30,
	2018			2017
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	47,997		$	49,556
Less: Reinsurance recoverable on unpaid losses		(7,220	)		(9,806	)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		40,777			39,750

Incurred related to:
Current accident year		18,531			17,306
Prior accident year development ⁽¹⁾		(659	)		(1,090	)
Total incurred		17,872			16,216

Paid related to:
Current accident year		5,736			5,631
Prior accident years		10,363			10,065
Total paid		16,099			15,696
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		42,550			40,270
Plus: Reinsurance recoverable on unpaid losses		7,760			10,027
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	50,310		$	50,297

⁽¹⁾

In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.

Medicare Supplement Insurance Products	Six Months Ended June 30,
	2018			2017
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	15,859		$	11,263
Less: Reinsurance recoverable on unpaid losses		(4,748	)		(990	)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		11,111			10,273

Incurred related to:
Current accident year		39,951			33,674
Prior accident year development		606			587
Total incurred		40,557			34,261

Paid related to:
Current accident year		27,722			24,301
Prior accident years		11,006			9,706
Total paid		38,728			34,007
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		12,940			10,527
Plus: Reinsurance recoverable on unpaid losses		6,907			2,746
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	19,847		$	13,273

Other Life and Health Insurance Products	Six Months Ended June 30,
	2018			2017
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	1,833		$	1,743
Less: Reinsurance recoverable on unpaid losses		-			-
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		1,833			1,743

Incurred related to:
Current accident year		4,748			3,995
Prior accident year development		(110	)		(44	)
Total incurred		4,638			3,951

Paid related to:
Current accident year		3,050			2,685
Prior accident years		1,503			1,524
Total paid		4,553			4,209
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		1,918			1,485
Plus: Reinsurance recoverable on unpaid losses		-			-
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	1,918		$	1,485

Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:

	Six Months Ended June 30,
	2018		2017
Total incurred losses	$	63,067	$	54,428
Cash surrender value and matured endowments		707		817
Benefit reserve changes		1,617		1,784
Total insurance benefits and losses incurred	$	65,391	$	57,029