Statutory Reporting and Dividend Restrictions

The Company's insurance subsidiaries may pay dividends to the Company, subject to statutory restrictions. Payments in excess of statutory restrictions (extraordinary dividends) to the Company are permitted only with prior approval of the insurance departments of the applicable state of domicile. For the three months ended March 31, 2012, no ordinary dividends were paid. All dividends from subsidiaries were eliminated in the Consolidated Financial Statements.

The following table details the combined statutory capital and surplus of the Company's insurance subsidiaries, the required minimum statutory capital and surplus and the combined amount available for ordinary dividends of the Company's insurance subsidiaries at:



	March 31, 2012		December 31, 2011
Combined statutory capital and surplus of the Company's insurance subsidiaries	$	52,864	$	50,230

Required minimum statutory capital and surplus	$	15,300	$	15,300

Amount available for ordinary dividends of the Company's insurance subsidiaries	$	2,344	$	2,344

Under the National Association of Insurance Commissioners ("NAIC") Risk-Based Capital Act of 1995, a company's risk-based capital ("RBC") is calculated by applying certain risk factors to various asset, claim and reserve items. If a company's adjusted surplus falls below calculated RBC thresholds, regulatory intervention or oversight is required. The insurance companies' RBC levels as calculated in accordance with the NAIC's RBC instructions exceeded all RBC thresholds as of March 31, 2012 and December 31, 2011.