Note 10. Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Notes

Note 10. Commitments and Contingencies

10.  Commitments and Contingencies

Fixed maturities with a carrying value of $5,669,000 are on deposit with various state insurance departments at December 31, 2012.

The Company has operating leases for office space and certain other office equipment.  These operating leases provide for minimum rents and generally include options to renew for additional periods.

Future minimum lease payments under non-cancelable operating leases as of December 31, 2012, are as follows (in thousands):

Year Ending		Net Operating
December 31,		Leases
2013	$	274
2014		239
2015		237
2016		144
2017		-
2018 and thereafter		-
Total	$	894

The Company's net rent expense for years 2012, 2011, and 2010 were $276,000, $222,000, and $355,000, respectively.

Legal Proceedings

The Company is involved in legal proceedings and claims that arise in the ordinary course of its businesses.  The Company has established reserves that it believes are sufficient given information presently available relating to its outstanding legal proceedings and claims.  The Company does not anticipate that the result of any pending legal proceeding or claim will have a material adverse effect on its financial condition or cash flows, although there could be such an effect on its results of operations for any particular period.