Note 1. Significant Accounting Policies and Practices: Reinsurance Accounting Policy (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Reinsurance Accounting Policy

Reinsurance

Amounts recoverable or paid for under reinsurance contracts are included in total assets or total liabilities as due from reinsurers or due to reinsurers. In 2015 and 2014, Independence American derived a significant amount of its business from pro rata quota share reinsurance treaties with Standard Security Life and Madison National Life, which are wholly owned subsidiaries of IHC.