Investments

6 Months Ended

Jun. 30, 2011

Investments

NOTE 8 – INVESTMENTS

The Company manages its own investment portfolio. A summary of net investment and related income is as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2011		2010		2011		2010
Fixed maturities	$	764,840	$	902,256	$	1,535,237	$	1,832,358
Short-term investments		2,061		6,223		5,061		15,439
Total investment income	$	766,901	$	908,479	$	1,540,298	$	1,847,797

The amortized cost and estimated fair values of investments in fixed maturities by category are as follows:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
June 30, 2011
Available for sale:
Fixed maturities
Certificates of deposit	$	20,504,000	$	—	$	—	$	20,504,000
U.S. treasury securities		95,755,839		3,503,927		—		99,259,766
Total fixed maturities	$	116,259,839	$	3,503,927	$	—	$	119,763,766
December 31, 2010
Available for sale:
Fixed maturities
Certificates of deposit	$	27,464,998	$	—	$	—	$	27,464,998
U.S. treasury securities		95,836,282		3,410,702		—		99,246,984
Total fixed maturities	$	123,301,280	$	3,410,702	$	—	$	126,711,982

A summary of the unrealized appreciation (depreciation) on investments carried at fair value and the applicable deferred federal income taxes are shown below:

	June 30		December 31
	2011		2010
Gross unrealized appreciation of fixed maturities	$	3,503,927	$	3,410,702
Gross unrealized (depreciation) of fixed maturities		—		—
Net unrealized appreciation on investments		3,503,927		3,410,702
Deferred federal tax expense		1,191,335		1,159,639
Net unrealized appreciation, net of deferred income taxes	$	2,312,592	$	2,251,063

The Company monitors its investments closely. If an unrealized loss is determined to be other-than-temporary, the impairment representing a credit loss is written off as a realized loss through the Consolidated Statements of Operations, and the impairment related to non-credit factors is recorded through the Consolidated Statements of Comprehensive Income. The Company’s methodology of assessing other-than-temporary impairments is based on security-specific analysis as of the balance sheet date and considers various factors including the length of time to maturity and the extent to which the fair value has been less than the cost, the financial condition and the near-term prospects of the issuer, and whether the debtor is current on its contractually obligated interest and principal payments. The Company does not have the intent to sell its fixed maturity investments, and it is not likely that the Company would be required to sell any of its fixed maturity investments prior to recovery of its amortized costs.

The Company did not sell any fixed maturity investments in the three and six months ended June 30, 2011 and 2010.

Short-term investments consist of the following:

	June 30, 2011		December 31, 2010
U.S. government money market fund	$	7,006	$	121,751
Short-term U.S. treasury bills		10,299,895		4,398,003
Bank money market accounts		1,468,318		1,494,033
Certificates of deposit		250,000		450,000
Bank savings accounts		1,862		1,862
Total short-term investments	$	12,027,081	$	6,465,649