Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 10. Commitments and Contingencies

In February 2015, the Company was notified of an adverse verdict against its subsidiary, AIIC, related to a 2009 workers’ compensation claim in the State of Iowa. The verdict was for $25.3 million, of which $0.3 million was for actual damages and $25.0 million was awarded for punitive damages. The Company posted an appeal bond in the amount of $27.8 million, as required by law. AIIC appealed both the verdict and the damage awards. On May 19, 2017, the Supreme Court of Iowa reversed the judgments for actual and punitive damages and remanded the case for a new trial, presently scheduled for first quarter 2018.  On July 24, 2017, the $27.8 million appeal bond was returned to AIIC.

The Company maintains reinsurance against catastrophic losses, including court ordered judgments. As of September 30, 2017, the Company’s total reserve for the claim was $2.3 million. The $2.3 million reserve does not include payments that the Company has previously paid in this case. The payments, plus the $2.3 million reserve, total $5.4 million. The Company’s retention is $5.0 million before its reinsurance providers are obligated to reimburse the Company for additional costs. The Company presently believes that the reserve amount, together with its reinsurance coverage, is adequate to satisfy this claim.