Statutory Reporting and Insurance Subsidiaries 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 department of the applicable state of domicile. All dividends from subsidiaries were eliminated in the Consolidated Financial Statements.

The following table sets forth the dividends paid to the Company by its insurance company subsidiaries for the following periods:



	For the Nine Months Ended		For the Twelve Months Ended
	September 30, 2013		December 31, 2012
Ordinary dividends	$	231	$	2,783
Extraordinary dividends	—		—
Total dividends	$	231	$	2,783

The following table details the combined statutory capital and surplus of the Company's insurance subsidiaries, the required minimum statutory capital and surplus, as required by the laws of the states in which they are domiciled and the combined amount available for ordinary dividends of the Company's insurance subsidiaries for the following periods:



	At
	September 30, 2013		December 31, 2012
Combined statutory capital and surplus of the Company's insurance subsidiaries	$	61,762	$	53,885

Required minimum statutory capital and surplus	$	17,200	$	15,300

Amount available for ordinary dividends of the Company's insurance subsidiaries	$	2,065	$	4,500

Under the NAIC's 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 Company's insurance subsidiaries' RBC levels, as calculated in accordance with the NAIC's RBC instructions, exceeded all RBC thresholds as of September 30, 2013 and December 31, 2012, respectively.

The amount of ordinary dividends available from the Company's two subsidiaries domiciled in the state of Georgia, Life of the South Insurance Company and The Insurance Company of the South, was impacted in the third quarter of 2013 by a change in Georgia's Insurance Regulations. Previously, the maximum amount of ordinary dividends payable in any one year by an insurer domiciled in Georgia was defined as the greater of a) 10 percent of the insurer's surplus with regards to policyholders as of December 31 of the preceding year, or b) the net gain from operations of the insurer (for life companies) or the net income not including realized capital gains (for non-life companies) for the 12 month period ending December 31 of the preceding year. Now, the maximum ordinary dividend is defined as the lesser of these two measures. This regulation change reduced the amount of ordinary dividends available from the insurance companies at September 30, 2013 by $2.2 million.