RESERVES FOR UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

Activity in the reserve for unpaid claims and claim adjustment expenses was as follows for each of the years ended December 31 (in thousands):



	2011			2010			2009
Balance at January 1	$	22,816		$	24,175		$	27,773
Less reinsurance recoverable	(13,987		)	(14,527		)	(15,877		)
Net balance at January 1	8,829			9,648			11,896
Incurred loss and loss adjustment expense (recovery) for prior accident year claims	(223		)	128			(1,345		)
Payments for claims occurring during prior accident years	(606		)	(947		)	(903		)
Net change for the year	(829		)	(819		)	(2,248		)
Net balance at December 31	8,000			8,829			9,648
Plus reinsurance recoverable	15,292			13,987			14,527
Balance at December 31	$	23,292		$	22,816		$	24,175

- Definition

Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims.

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