Independence American reinsures a portion of its direct business in order to limit the assumption of disproportionate risks. Amounts not retained are ceded to other companies on an automatic basis. Independence American is contingently liable with respect to reinsurance in the unlikely event that the assuming reinsurers are unable to meet their obligations. All of Independence American’s insurance contracts are of short-duration. The ceding of reinsurance does not discharge the primary liability of the original insurer to the insured. At December 31, 2015, Independence American ceded to highly rated reinsurers.

The effect of reinsurance on premiums earned and insurance benefits is as follows (in thousands):

				ASSUMED		CEDED
				FROM		TO
		DIRECT		OTHER		OTHER		NET
		AMOUNT		COMPANIES		COMPANIES		AMOUNT
Premiums Earned:

Year ended December 31, 2015	$	65,516	$	85,316	$	2,029	$	148,803
Year ended December 31, 2014		63,007		74,934		4,335		133,606
Year ended December 31, 2013		55,486		75,629		3,912		127,203

Insurance Benefits:

Year ended December 31, 2015	$	41,985	$	57,191	$	435	$	98,741
Year ended December 31, 2014		40,572		50,886		2,571		88,887
Year ended December 31, 2013		38,367		52,992		4,241		87,118

All premiums included in Assumed From Other Companies for 2015, 2014 and 2013 were assumed from subsidiaries of IHC. Included in Ceded To Other Companies for 2015, 2014 and 2013 are premiums of $2,000, $1,300,000, and $108,000, respectively, which were ceded to subsidiaries of IHC.