Note 9. Reinsurance

In the normal course of business, the Company seeks to limit its exposure to loss on any single insured life and to recover a portion of benefits paid by ceding mortality risk to other insurance enterprises or reinsurers under indemnity reinsurance agreements, primarily quota share coverage and coinsurance agreements. The maximum amount of mortality risk retained by the Company is approximately $1,000 on single and joint life policies. At December 31, 2017, the Company had a reinsurance receivable of $239 and reinsurance payable of $194. At December 31, 2016, the Company had a net reinsurance receivable of $166 and reinsurance payable of $203. The Company did not have a reinsurance reserve at December 31, 2017 and 2016.

Indemnity reinsurance agreements do not relieve the Company from its obligations to contract owners. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company regularly evaluates the financial condition of its reinsurers so as to minimize its exposure to significant losses from reinsurer insolvencies. The Company determined after this evaluation that no reserve was required.

In addition, the Company seeks to limit its exposure to guaranteed benefit features contained in certain variable annuity contracts. Specifically, the Company reinsures certain GMIB and a GMDB provision to the extent reinsurance capacity is available in the marketplace.

At December 31, 2016 and 2017, the Company had the following account values for variable annuity contracts containing GMIB and GMDB provisions that were reinsured along with life insurance in force:

December 31, 2017
	Gross amount		Ceded to other companies		Assumed from other companies		Net amount		Percentage of amount assumed to net amount			Percentage of amount ceded to gross amount
Life insurance	$	4,465,980	$	143,356	$	1,047	$	4,323,671		0.02	%		3.21	%
GMIB		1,453,202		478,098		-		975,104		0.00	%		32.90	%
GMDB		3,979,129		171,818		-		3,807,311		0.00	%		4.32	%

December 31, 2016
	Gross amount		Ceded to other companies		Assumed from other companies		Net amount		Percentage of amount assumed to net amount			Percentage of amount ceded to gross amount
Life insurance	$	4,586,845	$	160,455	$	924	$	4,427,314		0.02	%		3.50	%
GMIB		1,430,611		480,283		-		950,328		0.00	%		33.57	%
GMDB		3,947,838		168,608		-		3,779,230		0.00	%		4.27	%