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REINSURANCE
 12 Months Ended
Dec. 31, 2011
Reinsurance Disclosures [Abstract]  
Reinsurance
REINSURANCE:

In the normal course of business, the Company’s insurance subsidiaries have entered into various reinsurance contracts with unrelated reinsurers.  The Company’s insurance subsidiaries participate in such agreements for the purpose of limiting their loss exposure and diversifying risk.  Reinsurance contracts do not relieve the Company’s insurance subsidiaries from their obligations to policyholders.  All reinsurance assets and liabilities are shown on a gross basis in the accompanying consolidated financial statements.  Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy.  Such amounts are included in “reinsurance receivables” in the consolidated balance sheets at December 31 as follows (in thousands):
 
2011
 
2010
Estimated reinsurance recoverable on:
 
 
 
Unpaid losses and loss adjustment expense
$
15,292

 
$
13,987

Reinsurance recoverable on paid losses and loss expenses
183

 
564

Reinsurance receivables
$
15,475

 
$
14,551



Unsecured reinsurance risk is concentrated in the companies shown in the table below along with their AM Best Rating.  The Company remains contingently liable with respect to reinsurance contracts in the event that reinsurers are unable to meet their obligations under the reinsurance agreements in force.

CONCENTRATION OF REINSURANCE AT DECEMBER 31, 2011
(In Thousands):
 
Reported Claims
 
Unreported Claims
 
Reinsurer Balances
General Reinsurance (A.M Best rating: A++)
$
7,816

 
$
7,128

 
$
14,944

Swiss Reinsurance America Corp (A.M. Best rating: A+)
163

 
61

 
224

All others
214

 
93

 
307

 
$
8,193

 
$
7,282

 
$
15,475



The following is the net effect of reinsurance activity on the consolidated financial statements for each of the years ended December 31 for losses and loss adjustment expense or recovery (in thousands):
 
2011
 
2010
 
2009
Direct
$
2,171

 
$
618

 
$
(1,596
)
Assumed
(19
)
 
—

 
—

Ceded
(2,375
)
 
(490
)
 
251

 
$
(223
)
 
$
128

 
$
(1,345
)