INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES [Abstract]

Income tax expense (benefits)

Income tax expense (benefit) consists of the following components:

		2012		2011
Current tax	$	5,716,480	$	5,296,407
Deferred tax		(222,098)		(4,030,745)
	$	5,494,382	$	1,265,662

Income tax expense (benefit) reconciliation

The expense for income differed from the amounts computed by applying the applicable United States statutory rate of 35% before income taxes as a result of the following differences:

		2012		2011
Tax computed at statutory rate	$	5,404,636	$	2,719,131
Changes in taxes due to:
Non-controlling interest		(238,632)		(65,334)
Small company deduction		0		(623,767)
Other		328,378		(764,368)
Income tax expense (benefit)	$	5,494,382	$	1,265,662

Major components that comprise the deferred tax liability

The following table summarizes the major components that comprise the deferred tax liability as reflected in the balance sheets:

		2012		2011
Investments	$	4,644,740	$	5,519,570
Cost of insurance acquired		4,095,268		4,496,193
Deferred policy acquisition costs		149,176		170,893
Management/consulting fees		(66,344)		(70,554)
Future policy benefits		2,137,835		2,447,327
Deferred gain on sale of subsidiary		2,312,483		2,312,483
Other liabilities		(63,967)		(120,039)
Federal tax DAC		(907,614)		(1,010,122)
Deferred tax liability	$	12,301,577	$	13,745,751