S-1/A

As filed with Securities and Exchange Commission on April 6, 2016
File No. 333-207222

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM S-1

Registration Statement Under the Securities Act of 1933

MEMBERS Life Insurance Company
(Exact name of Registrant as specified in its charter)

IOWA	6311	39-1236386
(State or other jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Code Number)	(I.R.S. Employer Identification No.)

2000 Heritage Way
Waverly, Iowa 50677-9202
(319) 352-4090

(Address, including zip code, and telephone number, including area code,
of Registrant’s principal executive offices)

Ross Hansen, Esq.
MEMBERS Life Insurance Company
2000 Heritage Way
Waverly, Iowa 50677-9202
(319) 352-4090

(Name, address, including zip code, and telephone number, including area code, of agent for service)

COPY TO:
Stephen E. Roth, Esq.
Thomas E. Bisset, Esq.
Sutherland Asbill & Brennan LLP
700 Sixth Street, NW, Suite 700
Washington, DC 20001
(202) 383-0100

Approximate Date of Proposed Public Offering: As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. [ X ]

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [ X ]	Smaller reporting company [  ]

CALCULATION OF REGISTRATION FEE
	TITLE OF EACH CLASS OF SECURITIES TO BE REGISTERED	AMOUNT TO BE REGISTERED	PROPOSED MAXIMUM OFFERING PRICE PER UNIT	PROPOSED MAXIMUM AGGREGATE OFFERING PRICE	AMOUNT OF REGISTRATION FEE
	Interests in Risk Control Accounts of Flexible Premium Deferred Variable Annuity Contract	*	*	$2,884,806,356	$290,500

*The maximum aggregate offering price is estimated solely for the purposes of determining the registration fee. The amount to be registered and the proposed maximum offering price per unit are not applicable since these securities are not issued in predetermined amounts or units.

**Pursuant to Rule 457(p) under the Securities Act of 1933, the entire registration fee of $290,500 associated with securities registered pursuant to the Registrant’s Registration Statement on Form S-1 (File No. 333-207150), which was filed on September 25, 2015 (“Registration Statement No. 1”) and withdrawn on September 30, 2015, is being used to offset the registration fee associated with this registration statement. No securities were sold under Registration Statement No. 1.

THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(A), MAY DETERMINE.

C-2

MEMBERS Life Insurance Company

Financial Statements as of December 31, 2015 and 2014
and for the Three Years in the Period Ended December 31, 2015
and Report of Independent Registered Public Accounting Firm

Index to

Financial Statements of

MEMBERS Life Insurance Company

Report of Independent Registered Public Accounting Firm	1
Balance Sheets as of December 31, 2015 and 2014	2
Statements of Operations and Comprehensive Income (Loss) for the Years Ended December 31, 2015, 2014 and 2013	3
Statements of Stockholder’s Equity for the Years Ended December 31, 2015, 2014 and 2013	4
Statements of Cash Flows for the Years Ended December 31, 2015, 2014 and 2013	5
Notes to Financial Statements
Note 1—Nature of Business	6
Note 2—Summary of Significant Accounting Policies	6
Note 3—Investments, Debt Securities	11
Note 3—Investments, Net Investment Income	12
Note 3—Investments, Net Realized Investment Gains	13
Note 3—Investments, Other-Than-Temporary Investment Impairments	13
Note 3—Investments, Net Unrealized Investment Gains	14
Note 3—Investments, Embedded Derivatives	14
Note 3—Investments, Assets Designated /Securities on Deposit	15
Note 4—Fair Value	15
Note 5—Income Tax	22
Note 6—Related Party Transactions	25
Note 7—Reinsurance	26
Note 8—Statutory Financial Data and Dividend Restrictions	28
Note 9—Accumulated Other Comprehensive Income (Loss)	29
Note 10—Business Segment Information	30
Note 11—Commitments and Contingencies	33
Note 12—Subsequent Events	33

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholder of
MEMBERS Life Insurance Company
Madison, Wisconsin

We have audited the accompanying balance sheets of MEMBERS Life Insurance Company (the “Company”) as of December 31, 2015 and 2014, and the related statements of operations and comprehensive income (loss), stockholder’s equity, and cash flows for each of the three years in the period ended December 31, 2015. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the financial position of MEMBERS Life Insurance Company as of December 31, 2015 and 2014, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2015, in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 1 to the financial statements, results of the Company may not be indicative of those of a stand-alone entity, as the Company is a member of a controlled group of affiliated companies.

/s/ DELOITTE & TOUCHE LLP

Chicago, Illinois
March 8, 2016

  MEMBERS Life Insurance Company

  Balance Sheets

  December 31, 2015 and 2014

  ($ in 000s)

Assets	2015			2014
Investments
Debt securities, available for sale, at fair value
(amortized cost 2015 - $12,698; 2014 - $12,854)	$	12,351		$	13,194
Policy loans		-			104
Receivable for securities sold		-			15
Total investments		12,351			13,313
Cash and cash equivalents		17,093			5,602
Accrued investment income		134			80
Reinsurance recoverable from affiliate		24,628			25,199
Assets on deposit		947,595			349,937
Premiums receivable, net		26			28
Net deferred tax asset		682			440
Receivable from affiliate		4,518			2,765
Other assets and receivables		268			220
Federal income taxes recoverable from affiliate		516			1,797
Total assets	$	1,007,811		$	399,381
Liabilities and Stockholder’s Equity
Liabilities
Claim and policy benefit reserves - life and health	$	21,537		$	22,368
Policyholder account balances		951,068			353,549
Unearned premiums		1			3
Payables to affiliates		2,480			1,292
Accounts payable and other liabilities		11,177			2,954
Total liabilities		986,263			380,166
Commitments and contingencies (Note 11)
Stockholder’s equity
Common stock, $5 par value, authorized 1,000 shares;
issued and outstanding 1,000 shares		5,000			5,000
Additional paid in capital		10,500			10,500
Accumulated other comprehensive income (loss),
net of tax expense (benefit) (2015 - ($122); 2014 - $118)		(225	)		222
Retained earnings		6,273			3,493
Total stockholder’s equity		21,548			19,215
Total liabilities and stockholder’s equity	$	1,007,811		$	399,381

See accompanying notes to financial statements. 2

  MEMBERS Life Insurance Company

  Statements of Operations and Comprehensive Income (Loss)

  Years Ended December 31, 2015, 2014 and 2013

  ($ in 000s)

	2015			2014			2013
Revenues
Life and health premiums, net	$	(1,175	)	$	127		$	139
Contract charges, net		18			24			46
Net investment income		366			278			176
Net realized investment gains		117			-			-
Other income		5,336			-			293
Total revenues		4,662			429			654
Benefits and expenses
Life and health insurance claims and benefits, net		(1,204	)		112			179
Interest credited to policyholder account balances, net		4			8			9
Operating and other expenses (Note 6)		1,633			137			86
Total benefits and expenses		433			257			274
Income before income taxes		4,229			172			380
Income tax expense		1,449			11			249
Net income		2,780			161			131
Change in unrealized gains (losses), net of tax expense
(benefit) (2015 - ($235); 2014 - ($25); 2013 - ($105))		(437	)		(47	)		(154	)
Reclassification adjustment for (gains)
included in net income, net of tax (benefit) - (2015 - ($5))		(10	)		-			-
Other comprehensive loss		(447	)		(47	)		(154	)
Total comprehensive income (loss)	$	2,333		$	114		$	(23	)

See accompanying notes to financial statements. 3

  MEMBERS Life Insurance Company

  Statements of Stockholder’s Equity

  Years Ended December 31, 2015, 2014 and 2013

  ($ in 000s)

					Accumulated
			Additional		other					Total
	Common		paid in		comprehensive			Retained		stockholder’s
	stock		capital		income (loss)			earnings		equity
Balance, January 1, 2013	$	5,000	$	10,500	$	423		$	3,201	$	19,124
Net income		-		-		-			131		131
Other comprehensive (loss)		-		-		(154	)		-		(154	)
Balance, December 31, 2013		5,000		10,500		269			3,332		19,101
Net income		-		-		-			161		161
Other comprehensive (loss)		-		-		(47	)		-		(47	)
Balance, December 31, 2014		5,000		10,500		222			3,493		19,215
Net income		-		-		-			2,780		2,780
Other comprehensive (loss)		-		-		(447	)		-		(447	)
Balance, December 31, 2015	$	5,000	$	10,500	$	(225	)	$	6,273	$	21,548

See accompanying notes to financial statements. 4

  MEMBERS Life Insurance Company

  Statements of Cash Flows

  Years Ended December 31, 2015, 2014 and 2013

  ($ in 000s)

	2015			2014			2013
Cash flows from operating activities:
Net income	$	2,780		$	161		$	131
Adjustments to reconcile net income
to net cash provided by operating activities:
Policyholder charges on investment type contracts		(18	)		(24	)		(46	)
Net realized investment gains		(117	)		-			-
Interest credited to policyholder account balances		4			8			9
Deferred income taxes		(2	)		197			675
Amortization of bond premium and discount		61			75			86
Amortization and write off of deferred charges		26			26			21
Changes in other assets and liabilities
Accrued investment income		(54	)		(16	)		9
Reinsurance recoverable		273			326			611
Premiums receivable		2			4			2
Other assets		(1,828	)		356			(1,079	)
Federal income taxes recoverable from affiliate		1,281			87			1,892
Insurance reserves		(831	)		(828	)		(916	)
Unearned premiums		(2	)		-			(1	)
Other liabilities		9,412			955			2,892
Net cash provided by operating activities		10,987			1,327			4,286
Cash flows from investing activities:
Purchases of debt securities		(8,760	)		(7,535	)		-
Proceeds on sale or maturity of debt securities		8,987			750			1,665
Net amounts received on policy loans		104			6			-
Net cash provided by (used in) investing activities		331			(6,779	)		1,665
Cash flows from financing activities:
Policyholder account deposits		596,817			252,273			89,726
Policyholder account withdrawals		(12,250	)		(3,581	)		(930	)
Assets on deposit - deposits		(596,492	)		(252,273	)		(89,382	)
Assets on deposit - withdrawals		12,098			3,531			813
Change in bank overdrafts		-			(1	)		1
Net cash provided by (used in) financing activities		173			(51	)		228
Change in cash and cash equivalents		11,491			(5,503	)		6,179
Cash and cash equivalents at beginning of year		5,602			11,105			4,926
Cash and cash equivalents at end of year	$	17,093		$	5,602		$	11,105
Supplemental disclosure of cash information:
Cash received (paid) during the year for income taxes	$	(170	)	$	273		$	2,318

See accompanying notes to financial statements. 5

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Note 1:   Nature of Business

MEMBERS Life Insurance Company (“MLIC” or the “Company”) is a life and health insurance stock company organized under the laws of Iowa and a wholly-owned subsidiary of CUNA Mutual Investment Corporation (“CMIC”). CMIC is organized under the laws of Wisconsin and is a wholly-owned subsidiary of CMFG Life Insurance Company (“CMFG Life”), an Iowa life insurance company. CMFG Life and its affiliated companies primarily sell insurance and other products to credit unions and their members. The Company’s ultimate parent is CUNA Mutual Holding Company (“CMHC”), a mutual insurance holding company organized under the laws of Iowa. In 2013, MLIC began selling single premium deferred annuity contracts to credit union members through face-to-face and direct response distribution channels. Prior to 2013, MLIC did not actively market new business; it primarily serviced existing blocks of individual and group life policies. See Note 7, Reinsurance, for information on the Company’s reinsurance and ceding agreements.

MLIC is authorized to sell life, health and annuity policies in all states in the U.S. and the District of Columbia, except New York. The following table identifies states with premiums greater than 5% of total direct premium and states with deposits on annuity contracts greater than 5% of total deposits:

										Deposits on
	Direct Life and Health Premium									Annuity Contracts
	2015			2014			2013			2015			2014			2013
Michigan		63	%		63	%		64	%		8	%		12	%		11	%
Texas		23			22			22			7			8			*
California		5			5			5			8			*			*
Indiana		*			*			*			6			6			6
Iowa		*			*			*			5			8			17
Wisconsin		*			*			*			5			7			7
Pennsylvania		*			*			*			5			6			5
Florida		*			*			*			5			5			*
Washington		*			*			*			5			*			*
Rhode Island		*			*			*			*			8			6
Utah		*			*			*			*			*			5

*Less than 5%.

No other state represents more than 5% of the Company’s premiums or deposits for any year in the three years ended December 31, 2015.

CMFG Life provides significant services required in the conduct of the Company’s operations. Management believes allocations of expenses are reasonable, but the results of the Company’s operations may have materially differed from the results reflected in the accompanying financial statements if the Company did not have this relationship.

Note 2: Summary of Significant Accounting Policies

Basis of Presentation

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

6

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and in some cases the difference could be material. Investment valuations, embedded derivatives, deferred tax asset valuation reserves, and claim and policyholder benefit reserves are most affected by the use of estimates and assumptions.

Segment Reporting

The Company is currently managed as two reportable business segments, (1) life and health and (2) annuities. See Note 7, Reinsurance, for information on the Company’s reinsurance and ceding agreements, which impact the financial statement presentation of these segments.

Investments

Debt securities: Investments in debt securities are classified as available for sale and are carried at fair value. A debt security is considered other-than-temporarily impaired when the fair value is less than the amortized cost basis and its value is not expected to recover through the Company’s anticipated holding period of the security. If a credit loss exists, but the Company does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, it is required to bifurcate the impairment into the loss that is attributable to credit and non-credit related components. The credit portion of the other-than-temporary impairment (“OTTI”) is the difference between the present value of the expected future cash flows and amortized cost. Only the estimated credit loss amount is recognized in net realized investment gains, with the remainder of the loss amount recognized in other comprehensive loss. If the Company intends to sell or it is more likely than not that the Company will be required to sell before anticipated recovery in value, the Company records a realized loss equal to the difference between the amortized cost and fair value. The fair value of the other-than-temporarily impaired security becomes its new cost basis. In determining whether an unrealized loss is expected to be other than temporary, the Company considers, among other factors, any plans to sell the security, the severity of impairment, financial position of the issuer, recent events affecting the issuer’s business and industry sector, credit ratings, and the intent and ability of the Company to hold the investment until the fair value has recovered at least its cost basis.

Unrealized gains and losses on investments in debt securities, net of deferred federal income taxes, are included in accumulated other comprehensive income as a separate component of stockholder’s equity.

Policy loans: Policy loans are reported at their unpaid principal balance. Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrender value of the underlying insurance policies. Any unpaid principal or interest on the loan is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy. Policy loans allocated to CMFG Life as payment related to the 2012 reinsurance agreement and the 2015 amendment (See Note 7) are $1,882 and $1,975 at December 31, 2015 and 2014, respectively. As a result of the amendment, all policy loans are allocated to CMFG Life as of December 31, 2015.

Net investment income: Interest income related to mortgage-backed and other structured securities is recognized on an accrual basis using a constant effective yield method, based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments and such adjustments are reflected in net investment income. Prepayment assumptions for loan-backed bonds and structured securities are based on industry averages or internal estimates. Interest income related to non-structured securities is recognized on an accrual basis using a constant effective yield method. Discounts and premiums on debt securities are amortized over the estimated lives of the respective securities on an effective yield basis.

7

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Net realized gains and losses: Realized gains and losses on the sale of investments are determined on a specific identification basis and are recorded on the trade date.

Derivative Financial Instruments

The Company issues single premium deferred annuity contracts that contain embedded derivatives. Derivatives embedded within non-derivative host contracts are separated from the host instrument when the embedded derivative is not clearly and closely related to the host instrument. Such embedded derivatives are recorded at fair value, and they are reported as part of assets on deposit and policyholder account balances in the balance sheets, with the change in the value being recorded in net realized investment gains. See Note 3, Investments-Embedded Derivatives for additional information.

Changes in the fair value of the embedded derivative in assets on deposit offset changes in the fair value of the embedded derivative in policyholder account balances; both of these changes are included in net realized investment gains. Accretion of the interest on assets on deposit offsets accretion of the interest on the host contract; both of these amounts are included in interest credited on policyholder account balances.

Cash and Cash Equivalents

Cash and cash equivalents include unrestricted deposits in financial institutions with maturities of 90 days or less. The Company recognizes a liability in accounts payable and other liabilities for the amount of checks issued in excess of its current cash balance. The change in this overdraft amount is recognized as a financing activity in the Company’s statement of cash flows.

Recognition of Insurance Revenue and Related Benefits

Term-life and whole-life insurance premiums are recognized as premium income when due. Policy benefits for these products are recognized in relation to the premiums so as to result in the recognition of profits over the expected lives of the policies and contracts.

Amounts collected on policies not subject to significant mortality or longevity risk, such as the Company’s single premium deferred annuity contracts, are considered investment contracts and are recorded as increases in policyholder account balances. Revenues from investment contracts principally consist of net investment income and contract charges such as expense and surrender charges. Expenses for investment contracts consist of interest credited to contracts, benefits incurred in excess of related policyholder account balances and policy maintenance costs. Because the Company has entered into an agreement with CMFG Life to cede 100% of this business, these revenues and expenses are ceded and do not impact the statement of operations and comprehensive income (loss). See Note 7, Reinsurance for additional information on this agreement.

Other Income / Operating and Other Expenses

Other income in 2015 and 2013 relates to legal settlements received on structured security investments that had previously been sold. Operating and other expenses in 2015 include legal expenses related to the settlement received.

Deferred Policy Acquisition Costs

The costs of acquiring insurance business that are directly related to the successful acquisition of new and renewal business are deferred to the extent that such costs are expected to be recoverable from future profits. Such costs principally include commissions and sales costs, direct response advertising costs, premium taxes, and certain policy issuance and underwriting costs. Costs deferred on term-life and whole-life insurance products, deferred policy acquisition costs (“DAC”), are amortized in proportion to the ratio of the annual premium to the total anticipated premiums generated. Due to the age of the existing block of policies, all DAC has been fully amortized as of December 31, 2015 and 2014 and there was no amortization expense in 2015, 2014 or 2013.

8

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Acquisition costs on the Company’s single premium deferred annuity contracts are reimbursed through a ceding commission by CMFG Life, which assumes all deferrable costs as part of its agreement to assume 100% of this business from the Company. See Note 7, Reinsurance for additional information on this agreement.

Insurance Reserves

Life and health claim and policy benefit reserves consist principally of future policy benefit reserves and reserves for estimates of future payments on incurred claims reported but not yet paid and unreported incurred claims. Estimates for future payments on incurred claims are developed using actuarial principles and assumptions based on past experience adjusted for current trends. Any change in the probable ultimate liabilities is reflected in net income in the period in which the change is determined.

When actual experience indicates that existing contract liabilities, together with the present value of future gross premiums will not be sufficient to recover the present value of future benefits or recover unamortized deferred acquisition costs, a premium deficiency will be recognized by either a reduction in unamortized acquisition costs or an increase in the liability for future benefits. There was no premium deficiency in 2015, 2014 or 2013.

Policyholder Account Balances

The Company recognizes a liability at the stated account value for policyholder deposits that are not subject to significant policyholder mortality or longevity risk and for universal life-type policies. The account value equals the sum of the original deposit and accumulated interest, less any withdrawals and expense charges. The average credited rate was 4.5% in 2015, 2014 and 2013. The future minimum guaranteed interest rate during the life of the contracts is 4.5%.

The single premium deferred annuities, which are included in policyholder account balances, have two risk control accounts, referred to as the Secure and Growth Accounts; the Secure Account has a yearly credited interest rate floor of 0% and the yearly Growth Account floor is -10%. The Secure and Growth Accounts both have credited interest rate caps that vary with issuance. Interest is credited at the end of each contract year during the selected index term based on the allocation between risk control accounts and the performance of an external index during that contract year. Both the Growth Account and Secure Account are based on the S&P 500 Index. At the end of the initial index term, only the Secure Account will be available as an option to the policyholder. The average annualized credited rate was 1.65%, 1.10% and .72% in 2015, 2014 and 2013, respectively.

Accounts Payable and Other Liabilities

The Company issues annuity contracts on the 10^th and 25^th of each month. The Company recognizes a liability on contracts for which it has received cash, but has not issued a contract.

Reinsurance

Reinsurance premiums, claims and benefits, commission expense reimbursements, and reserves related to reinsured business ceded are accounted for on a basis consistent with the accounting for the underlying direct policies that have been ceded and the terms of the reinsurance contracts. Premiums and insurance claims and benefits in the statements of operations and comprehensive income (loss) are reported net of the amounts ceded to other companies under such reinsurance contracts. Ceded insurance reserves and ceded benefits paid are included in reinsurance recoverables along with certain ceded policyholder account balances, which include mortality risk. A prepaid reinsurance asset is also recorded for the portion of unearned premiums related to ceded policies.

9

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Assets on Deposit

Assets on deposit represent the amount of policyholder account balances related to the single premium deferred annuity contracts (investment-type contracts) that are ceded to CMFG Life. These investment-type contracts are accounted for on a basis consistent with the accounting for the underlying contracts. Since the related product is an investment-type contract, the Company accounts for the reinsurance of these contracts using the deposit method of accounting consistent with the terms of the ceding agreement. The related contract charges and interest credited to policyholder account balances in the statements of operations and comprehensive income (loss) are reported net of the amounts ceded under the agreement. See Note 7 for a further discussion of the ceding agreement.

Income Taxes

The Company recognizes taxes payable or refundable and deferred taxes for the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured by applying the enacted tax rates to the difference between the financial statement and tax basis of assets and liabilities. The Company records current tax benefits and deferred tax assets utilizing a benefits-for-loss approach. Under this approach, current benefits are realized and deferred tax assets are considered realizable by the Company when realized or realizable by the consolidated group of which the Company is a member even if the benefits would not be realized on a stand-alone basis. The Company records a valuation allowance for deferred tax assets if it determines it is more likely than not that the asset will not be realized by the consolidated group. Deferred income tax assets can be realized through future earnings, including, but not limited to, the generation of future income, reversal of existing temporary differences and available tax planning strategies.

The Company is subject to tax-related audits. These audits may result in additional tax assets or liabilities. In establishing tax liabilities, the Company determines whether a tax position is more likely than not to be sustained under examination by the appropriate taxing authority. Tax positions that do not meet the more likely than not standard are not recognized. Tax positions that meet this standard are recognized in the financial statements within net deferred tax assets or liabilities or federal income taxes recoverable or payable.

Accounting Standards Updates Pending Adoption

In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard, Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The new standard will supersede nearly all existing revenue recognition guidance by establishing a five step, principles-based process; however, it will not impact the accounting for insurance contracts, leases, financial instruments, and guarantees. For those contracts that are impacted by the new guidance, ASU 2014-09 will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In July 2015, the FASB approved the deferral of ASU 2014-09 for one year and it is effective for annual and interim reporting periods beginning in 2018 for public business entities and 2019 for others. Early adoption in 2017 will be permitted. The Company is currently evaluating the impact of ASU 2014-09 on its financial statements.

In January 2016, the FASB issued Accounting Standard Update (ASU) No. 2016-01, Recognition and Measurement of Financial Assets and Liabilities (“ASU 2016-01”), effective in 2018. The new standard will require equity investments to be measured at fair value with changes in fair value recognized in net income. Other provisions in ASU 2016-01 do not appear to be materially applicable to the Company. The Company is currently evaluating the potential impact of ASU 2016-01 on its financial statements.

10

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Note 3: Investments

Debt Securities

The amortized cost, gross unrealized gains and losses, and estimated fair values, as reported on the balance sheet, of debt securities at December 31, 2015 are as follows:

	Amortized		Gross Unrealized					Estimated
	Cost		Gains		Losses			Fair Value
U.S. government and agencies	$	10,333	$	26	$	(546	)	$	9,813
Mortgage-backed securities:
Residential mortgage-backed		2,365		173		-			2,538
Total debt securities	$	12,698	$	199	$	(546	)	$	12,351

The amortized cost, gross unrealized gains and losses, and estimated fair values, as reported on the balance sheet, of debt securities at December 31, 2014 are as follows:

	Amortized		Gross Unrealized					Estimated
	Cost		Gains		Losses			Fair Value
U.S. government and agencies	$	9,888	$	103	$	(4	)	$	9,987
Mortgage-backed securities:
Residential mortgage-backed		2,966		241		-			3,207
Total debt securities	$	12,854	$	344	$	(4	)	$	13,194

No investments were non-income producing in 2015 or 2014.

11

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

The amortized cost and estimated fair values of investments in debt securities at December 31, 2015, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Because of the potential for prepayment on mortgage-backed securities, such securities have not been displayed in the table below by contractual maturity.

	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	1,261	$	1,280
Due after one year through five years		315		322
Due after ten years		8,757		8,211
Mortgage-backed securities:
Residential mortgage-backed		2,365		2,538
Total debt securities	$	12,698	$	12,351

Net Investment Income

Sources of investment income for the years ended December 31 are summarized as follows:

	2015			2014			2013
Gross investment income:
Debt securities	$	389		$	304		$	275
Policy loans		5			8			8
Other investments		-			-			6
Total gross investment income		394			312			289
Investment expenses		(28	)		(34	)		(113	)
Net investment income	$	366		$	278		$	176

12

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Net Realized Investment Gains

Net realized investment gains for the years ended December 31 are summarized as follows:

	2015		2014		2013
Debt securities
Gross gains on sales	$	117	$	-	$	-
Net realized investment gains	$	117	$	-	$	-

Proceeds from the sale of debt securities was $8,389 in 2015, there were no sales or transfers of debt securities in 2014 or 2013 that resulted in a realized investment gain or loss.

Other-Than-Temporary Investment Impairments

Investment securities are reviewed for OTTI on an ongoing basis. The Company creates a watchlist of securities based largely on the fair value of an investment security relative to its cost basis. When the fair value drops below the Company’s cost, the Company monitors the security for OTTI. The determination of OTTI requires significant judgment on the part of the Company and depends on several factors, including, but not limited to:

• The existence of any plans to sell the investment security.

• The extent to which fair value is less than book value.

• The underlying reason for the decline in fair value (credit concerns, interest rates, etc.).

• The financial condition and near term prospects of the issuer/borrower, including the ability to meet contractual obligations, relevant industry trends and conditions.

• The Company’s intent and ability to retain the investment for a period of time sufficient to allow for an anticipated recovery in fair value.

• The Company’s ability to recover all amounts due according to the contractual terms of the agreements.

• The Company’s collateral position in the case of bankruptcy or restructuring.

A debt security is considered other-than-temporarily impaired when the fair value is less than the amortized cost basis and its value is not expected to recover through the Company’s anticipated holding period of the security. If a credit loss exists, but the Company does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, it is required to bifurcate the impairment into the loss that is attributable to credit and non-credit related risk. The credit portion of the OTTI is the difference between the present value of the expected future cash flows and amortized cost. Only the estimated credit loss amount is recognized in earnings, with the remainder of the loss amount recognized in other comprehensive loss. If the Company intends to sell, at the time this determination is made, the Company records a realized loss equal to the difference between the amortized cost and fair value. The fair value of the other-than-temporarily impaired security becomes its new cost basis. In determining whether an unrealized loss is expected to be other than temporary, the Company considers, among other factors, any plans to sell the security, the severity of impairment, financial position of the issuer, recent events affecting the issuer’s business and industry sector, credit ratings, and the ability of the Company to hold the investment until the fair value has recovered at least its cost basis.

For securitized debt securities, the Company considers factors including, commercial and residential property changes in value that vary by property type and location and average cumulative collateral loss rates that vary by vintage year. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of

13

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

expected recoveries. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer and/or underlying collateral.

For certain securitized financial assets with contractual cash flows, the Company is required to periodically update its best estimate of cash flows over the life of the security. If the fair value of a securitized financial asset is less than its cost or amortized cost and there has been a decrease in the present value of the estimated cash flows since the last revised estimate, considering both timing and amount, an OTTI charge is recognized. The Company also considers its intent to retain a temporarily impaired security until recovery. Estimating future cash flows involves judgment and includes both quantitative and qualitative factors. Such determinations incorporate various information and assessments regarding the future performance of the underlying collateral. In addition, projections of expected future cash flows may change based upon new information regarding the performance of the underlying collateral.

Management has completed a review for other-than-temporarily impaired securities at December 31, 2015, 2014 and 2013 and recorded no OTTI. As a result of the subjective nature of these estimates, however, provisions may subsequently be determined to be necessary as new facts emerge and a greater understanding of economic trends develops. Consistent with the Company’s practices, OTTI will be recorded as appropriate and as determined by the Company’s regular monitoring procedures of additional facts.

Net Unrealized Investment Gains (Losses)

The components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) at December 31 were as follows:

	2015			2014			2013
Debt securities	$	(347	)	$	340		$	412
Deferred income taxes		122			(118	)		(143	)
Net unrealized investment gains (losses)	$	(225	)	$	222		$	269

At December 31, 2015, the Company owned one debt security with a fair value of $8,210 in an unrealized loss position of $546 for less than twelve months. At December 31, 2014 the Company owned one debt security with a fair value of $7,526 in an unrealized loss position of $4 for less than twelve months. The Company did not have any gross unrealized losses at December 31, 2013.

Embedded Derivatives

The Company issues single premium deferred annuity contracts that contain embedded derivatives. Such embedded derivatives are separated from their host contracts and recorded at fair value. The fair value of the embedded derivatives, which are reported as part of assets on deposit and policyholder account balances in the balance sheets, were an asset of $122,043 and a liability of $122,043, respectively, as of December 31, 2015 and an asset of $45,503 and a liability of $45,503, respectively, as of December 31, 2014. The increase in fair value related to embedded derivatives from the date of deposit was $3,591, $9,581 and $592 for the years ended December 31, 2015, 2014 and 2013, respectively. Because the Company has entered into an agreement with CMFG Life to cede 100% of this business, this expense is ceded and does not impact the statement of operations and comprehensive income (loss).

14

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Assets Designated/Securities on Deposit

Iowa law requires that assets equal to a life insurer’s “legal reserve” must be designated for the Iowa Department of Commerce, Insurance Division. The legal reserve is equal to the net present value of all outstanding policies and contracts involving life contingencies. At December 31, 2015 and 2014, debt securities, policy loans and cash with a carrying value of $10,618 and $11,512, respectively, were accordingly designated for Iowa. Other regulatory jurisdictions require cash and securities to be deposited for the benefit of policyholders. Pursuant to these requirements, securities with a fair value of $1,732 and $1,854 were on deposit with other regulatory jurisdictions as of December 31, 2015 and 2014, respectively.

Note 4: Fair Value

The Company uses fair value measurements to record fair value of certain assets and liabilities and to estimate fair value of financial instruments not recorded at fair value but required to be disclosed at fair value. Certain financial instruments, such as insurance policy liabilities (other than investment-type contracts), are excluded from the fair value disclosure requirements.

Valuation Hierarchy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value of assets and liabilities into three broad levels. The Company has categorized its financial instruments, based on the degree of subjectivity inherent in the valuation technique, as follows:

• Level 1: Inputs are directly observable and represent quoted prices for identical assets or liabilities in active markets the Company has the ability to access at the measurement date.

• Level 2: All significant inputs are observable, either directly or indirectly, other than quoted prices included in Level 1, for the asset or liability. This includes: (i) quoted prices for similar instruments in active markets, (ii) quoted prices for identical or similar instruments in markets that are not active, (iii) inputs other than quoted prices that are observable for the instruments and (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

• Level 3: One or more significant inputs are unobservable and reflect the Company’s estimates of the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk.

For purposes of determining the fair value of the Company’s assets and liabilities, observable inputs are those inputs used by market participants in valuing financial instruments, which are developed based on market data obtained from independent sources. In the absence of sufficient observable inputs, unobservable inputs, reflecting the Company’s estimates of the assumptions market participants would use in valuing financial assets and liabilities, are developed based on the best information available in the circumstances. The Company uses prices and inputs that are current as of the measurement date. In some instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The hierarchy requires the use of market observable information when available for assessing fair value. The availability of observable inputs varies by investment. In situations where the fair value is based on inputs that are unobservable in the market or on inputs from inactive markets, the determination of fair value requires more judgment and is subject to the risk of variability. The degree of judgment exercised by the Company in determining fair value is typically greatest for investments categorized in Level 3. Transfers in and out of level

15

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

categorizations are reported as having occurred at the end of the quarter in which the transfer occurred. Therefore, for all transfers into Level 3, all realized gains and losses and all changes in unrealized gains and losses in the fourth quarter are not reflected in the Level 3 rollforward table.

Valuation Process

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance on the overall reasonableness and consistent application of valuation methodologies and inputs and compliance with accounting standards through the execution of various processes and controls designed to provide assurance that the Company’s assets and liabilities are appropriately valued.

The Company has policies and guidelines that require the establishment of valuation methodologies and consistent application of such methodologies. These policies and guidelines govern the use of inputs and price source hierarchies and provide controls around the valuation processes. These controls include appropriate review and analysis of prices against market activity or indicators of reasonableness, approval of price source changes, price overrides, methodology changes and classification of fair value hierarchy levels. The valuation policies and guidelines are reviewed and updated as appropriate.

For fair values received from third parties or internally estimated, the Company’s processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are appropriately recorded. The Company performs procedures to understand and assess the methodologies, process and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third party valuation sources for selected securities. When using internal valuation models, these models are developed by the Company’s investment group using established methodologies. The models including key assumptions are reviewed with various investment sector professionals, accounting, operations, compliance and risk management. In addition, when fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions.

Transfers Between Levels

There were no transfers between levels during the year ended December 31, 2015. There were two U.S. government and agency securities totaling $2,556 transferred from Level 1 to Level 2 during the year ended December 31, 2014. The transfer occurred due to a change in the availability of the observable inputs. There were no other transfers in 2014.

16

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Fair Value Measurement – Recurring Basis

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2015.

Assets, at Fair Value	Level 1		Level 2		Level 3		Total
Cash equivalents1	$	16,080	$	-	$	-	$	16,080
Debt securities:
U.S. government and agencies		-		9,813		-		9,813
Mortgage-backed securities:
Residential mortgage-backed		-		2,538		-		2,538
Total debt securities		-		12,351		-		12,351
Derivatives embedded in assets on deposit		-		-		122,043		122,043
Total assets	$	16,080	$	12,351	$	122,043	$	150,474
Liabilities, at Fair Value	Level 1		Level 2		Level 3		Total
Derivatives embedded in annuity contracts	$	-	$	-	$	122,043	$	122,043
Total liabilities	$	-	$	-	$	122,043	$	122,043

¹Excludes cash of $1,013 that is not subject to fair value accounting.

17

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

The following table summarizes the Company’s assets that are measured at fair value on a recurring basis as of December 31, 2014.

Assets, at Fair Value	Level 1		Level 2		Level 3		Total
Cash equivalents 1	$	3,681	$	-	$	-	$	3,681
Debt securities:
U.S. government and agencies		-		9,987		-		9,987
Mortgage-backed securities:
Residential mortgage-backed		-		3,207		-		3,207
Total debt securities		-		13,194		-		13,194
Derivatives embedded in assets on deposit		-		-		45,503		45,503
Total assets	$	3,681	$	13,194	$	45,503	$	62,378
Liabilities, at Fair Value	Level 1		Level 2		Level 3		Total
Derivatives embedded in annuity contracts	$	-	$	-	$	45,503	$	45,503
Total liabilities	$	-	$	-	$	45,503	$	45,503

¹Excludes cash of $1,921 that is not subject to fair value accounting.

The Company had no assets or liabilities that required a fair value adjustment on a non-recurring basis as of December 31, 2015 or 2014.

18

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Changes in Fair Value Measurement

The following table sets forth the values of assets and liabilities classified as Level 3 within the fair value hierarchy at December 31, 2015.

			Total Realized/Unrealized
			Gain (Loss) Included in:
	Balance January 1, 2015		Purchases		Maturities			Earnings1		Balance December 31, 2015
Derivatives embedded
in assets on deposit	$	45,503	$	73,631	$	(682	)	$	3,591	$	122,043
Total assets	$	45,503	$	73,631	$	(682	)	$	3,591	$	122,043
Derivatives embedded
in annuity contracts	$	45,503	$	73,631	$	(682	)	$	3,591	$	122,043
Total liabilities	$	45,503	$	73,631	$	(682	)	$	3,591	$	122,043
1 Included in net income is realized gains and losses associated with embedded derivatives.

The following table sets forth the values of assets and liabilities classified as Level 3 within the fair value hierarchy at December 31, 2014.

			Total Realized/Unrealized
			Gain (Loss) Included in:
	Balance January 1, 2014		Purchases		Maturities			Earnings1		Balance December 31, 2014
Derivatives embedded
in assets on deposit	$	8,652	$	27,522	$	(252	)	$	9,581	$	45,503
Total assets	$	8,652	$	27,522	$	(252	)	$	9,581	$	45,503
Derivatives embedded
in annuity contracts	$	8,652	$	27,522	$	(252	)	$	9,581	$	45,503
Total liabilities	$	8,652	$	27,522	$	(252	)	$	9,581	$	45,503
1 Included in net income is realized gains and losses associated with embedded derivatives.

Determination of Fair Values

The Company determines the estimated fair value of its investments using primarily the market approach and the income approach. The use of quoted prices and matrix pricing or similar techniques are examples of market approaches, while the use of discounted cash flow methodologies is an example of the income approach.

A summary of valuation techniques for classes of financial assets and liabilities by fair value hierarchy level are as follows:

19

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Level 1 Measurements

Cash equivalents: Consists of money market funds; valuation is based on the closing price as of the balance sheet date.

Level 2 Measurements

U.S. government and agencies: Certain U.S. Treasury securities and debentures issued by agencies of the U.S. government are valued based on observable inputs such as the U.S. Treasury yield curve, market indicated spreads and quoted prices for identical assets in markets that are not active and/or similar assets in markets that are active.

Residential mortgage-backed securities: Valuation is principally based on observable inputs including quoted prices for similar assets in markets that are active and observable market data.

For the majority of assets classified as Level 2 investments, the Company values the assets using third-party pricing sources, which generally rely on quoted prices for similar assets in markets that are active and observable market data.

Level 3 Measurements

Derivatives embedded in assets on deposit and annuity contracts: The Company offers single premium deferred annuity contracts with certain caps and floors which represent a minimum and maximum amount that could be credited to a contract during that contract year based on the performance of an external index. These embedded derivatives are measured at fair value separately from the host deposit asset and annuity contract.

In estimating the fair value of the embedded derivative, the Company attributes a present value to the embedded derivative equal to the discounted sum of the excess cash flows of the index related fund value over the minimum fund value. The current year portion of the embedded derivative is adjusted for known market conditions. The discount factor at which the embedded derivative is valued contains an adjustment for the Company’s own credit and risk margins for unobservable non-capital market inputs. The Company’s own credit adjustment is determined taking into account its A.M. Best rating as well as its claims paying ability.

These derivatives may be more costly than expected in volatile or declining equity markets. Changes in market conditions include, but are not limited to, changes in interest rates, equity indices, default rates and market volatility. Changes in fair value may be impacted by changes in the Company’s own credit standing. Lastly, changes in actuarial assumptions regarding policyholder behavior (such as full or partial withdrawals varying from expectations) and risk margins related to non-capital market inputs may result in significant fluctuations in the fair value of the derivatives. See Embedded Derivatives within Note 3, Investments for the impact to net income.

20

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

The following table presents information about significant unobservable inputs used in Level 3 embedded derivative assets and liabilities measured at fair value developed by internal models as of December 31, 2015 and 2014:

Predominant	Significant	Range of Values - Unobservable Input
Valuation Method	Unobservable Input	2015	2014
Derivatives embedded in single premium deferred annuities and related assets on deposit
Discounted cash flow	Lapse rates	2% to 4% with an excess lapse rate at the end of the index period of 95%.	2% to 4% with an excess lapse rate at the end of the index period of 95%.
	Company’s own credit and risk margin	82 - 137 basis points added on to discount rate	60 - 90 basis points added on to discount rate

Fair Value Measurements for Financial Instruments Not Reported at Fair Value

Accounting standards require disclosure of fair value information about certain on- and off-balance sheet financial instruments which are not recorded at fair value on a recurring basis for which it is practicable to estimate that value.

The following methods and assumptions were used by the Company in estimating the fair value disclosures for significant financial instruments:

Level 1 Measurements

Cash: The carrying amount for this instrument approximates its fair value due to its short term nature and is based on observable inputs.

Level 2 Measurements

Assets on deposit and Investment-type contracts: Assets on deposit and investment-type contracts include single premium deferred annuity contracts, excluding the related embedded derivative. In most cases, the fair values are determined by discounting expected liability cash flows and required profit margins using the year-end swap curve plus a spread equivalent to a cost of funds for insurance companies based on observable inputs.

21

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Not Practicable to Estimate Fair Value

Policy loans: The Company believes it is not practicable to determine the fair value of its policy loans since there is no stated maturity and policy loans are often repaid by reductions to policy benefits.

The carrying amounts and estimated fair values of the Company’s financial instruments which are not measured at fair value on a recurring basis at December 31 are as follows:

				2015					2014
	Carrying		Estimated			Carrying		Estimated
	Amount		Fair Value		Level	Amount		Fair Value		Level
Financial instruments
recorded as assets:
Cash	$	1,013	$	1,013	1	$	1,921	$	1,921	1
Policy loans		-		n/a	n/a		104		n/a	n/a
Assets on deposit		825,552		699,721	2		304,434		294,710	2
Financial instruments
recorded as liabilities:
Investment-type contracts		825,552		699,721	2		304,434		294,710	2

Note 5: Income Tax

The Company is included in the consolidated federal income tax return filed by CMHC, the Company’s ultimate parent. The Company has entered into a tax sharing agreement with CMHC and its subsidiaries. The agreement provides for the allocation of tax expense based on each subsidiary’s contribution to the consolidated federal income tax liability. Pursuant to the agreement, subsidiaries that have incurred losses are reimbursed regardless of the utilization of the loss in the current year. Federal income taxes recoverable from affiliate reported on the balance sheet are due from CMFG Life.

Income Tax Expense

Income tax expense for the years ended December 31 is as follows:

	2015			2014			2013
Current tax expense (benefit)	$	1,451		$	(186	)	$	(426	)
Deferred tax expense (benefit)		(2	)		197			675
Total income tax expense	$	1,449		$	11		$	249

22

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Reconciliation to U.S. Tax Rate

Income tax expense differs from the amount computed by applying the U.S. federal corporate income tax rate of 35% to income before income taxes due to the items listed in the following reconciliation:

		2015					2014					2013
	Amount			Rate		Amount			Rate		Amount		Rate
Tax expense computed at
federal corporate tax rate	$	1,480		35.0	%	$	60		35.0	%	$	133	35.0	%
Income tax expense (benefit)
related to prior years		(31	)	(0.7	)		(41	)	(23.9	)		116	30.5
Other		-		-			(8	)	(4.7	)		-
Total income tax expense	$	1,449		34.3	%	$	11		6.4	%	$	249	65.5	%

Deferred Income Taxes

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial statement purposes and the amounts for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows:

	2015		2014
Deferred tax assets
Policy liabilities and reserves	$	36	$	81
Unrealized investment losses		122		-
Investments		168		276
Accrued expenses		94		26
Deferred policy acquisition costs		309		230
Other		1		3
Gross deferred tax assets		730		616
Deferred tax liabilities
Unrealized investment gains		-		118
Deferred reinsurance expense		47		56
Other		1		2
Gross deferred tax liabilities		48		176
Net deferred tax asset	$	682	$	440

23

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Valuation Allowance

The Company considered the need for a valuation allowance with respect to its gross deferred tax assets as of December 31, 2015 and 2014, and based on that evaluation, the Company has determined it is more likely than not all deferred tax assets as of December 31, 2015 and 2014 will be realized. Therefore, a valuation allowance was not established.

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2015		2014
Balance at January 1	$	1	$	7
Reductions for prior years’ tax positions		-		(6	)
Balance at December 31	$	1	$	1

There were no unrecognized tax benefits as of December 31, 2015 and 2014 that, if recognized, would affect the effective tax rate in future periods. Management does not anticipate a material change to the Company’s uncertain tax positions during 2016.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense in the statements of comprehensive income (loss). The Company did not recognize any additions or reductions in interest and penalties for the year ended December 31, 2015 or 2014. During the year ended December 31, 2013 the Company recognized additions of $1 in interest and penalties. The Company had accrued $7 and $7 for the payment of interest and penalties at December 31, 2015 and 2014, respectively.

The Company is included in a consolidated U.S. federal income tax return filed by CMHC. The Company is also included in income tax returns filed in various states. For the major jurisdictions where it operates, the Company is generally no longer subject to income tax examinations by tax authorities for years ended before 2008.

Other Tax Items

As of December 31, 2015 and 2014, the Company did not have any capital loss, operating loss or credit carryforwards.

24

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Note 6: Related Party Transactions

In the normal course of business, there are various transactions between the Company and other related entities. In certain circumstances, expenses such as those related to sales and marketing, administrative, operations, other support and infrastructure costs are shared between the companies. Expenses incurred that are specifically identifiable with a particular company are borne by that company; other expenses are allocated among the companies on the basis of time and usage studies. Amounts due from transactions with affiliates are generally settled monthly. The Company reimbursed CMFG Life $8,447, $5,641 and $2,492 for these expenses in 2015, 2014 and 2013, respectively; which are included in operating and other expenses.

Amounts receivable/payable from/to affiliates are shown in the following table:

	2015		2014
Receivable from:
CMFG Life	$	4,518	$	2,765
Total	$	4,518	$	2,765
Payable to:
CUNA Brokerage Services, Inc.	$	2,478	$	1,290
MEMBERS Capital Advisors, Inc.		2		2
Total	$	2,480	$	1,292

Amounts receivable from CMFG Life at December 31, 2015 and 2014 are primarily for a policyholder’s purchase of an annuity when a CMFG Life policyholder has surrendered their policy for the purchase of a single premium deferred annuity and for the cession of death claims related to the Company’s single premium deferred annuity.

The Company hires MEMBERS Capital Advisors, Inc. (“MCA”) for investment advisory services. MCA, which is 100% owned by CMIC, manages substantially all of the Company’s invested assets in accordance with policies, directives and guidelines established by the Company. The Company recorded MCA investment management fees totaling $28, $34 and $113 for the years ended December 31, 2015, 2014 and 2013, respectively, which are included as a reduction to net investment income.

The Company utilizes CUNA Brokerage Services, Inc. (“CBSI”), which is 100% owned by CMIC, to distribute its single premium deferred annuity and recorded commission expense for this service of $23,072, $10,853 and $4,256 in 2015, 2014 and 2013, respectively, which is included in operating and other expenses. This expense is entirely offset by commission income the Company receives from CMFG Life as part of the 2013 reinsurance agreement.

See Note 7 regarding reinsurance and other agreements entered into by the Company and CMFG Life.

25

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Note 7: Reinsurance

The Company entered into a reinsurance agreement with its affiliate, CMFG Life, on a coinsurance and modified coinsurance basis. The agreement was effective November 1, 2015 to cede 100% of the business related to a new product currently in development, which includes any related development expenses. The Company receives a commission equal to 100% of its actual expenses incurred for this business, which was $1,027 for the year ended December 31, 2015.

The Company entered into an agreement with its affiliate, CMFG Life, effective January 1, 2013 to cede 100% of its investment-type contracts for its single premium deferred annuity, which are accounted for using the deposit method of accounting. The Company had $947,595 and $349,937 of assets on deposit for these contracts as of December 31, 2015 and 2014, respectively. The Company had related liabilities of $947,595 and $349,937, respectively which are included in policyholder account balances in the balance sheets. The Company receives a commission equal to 100% of its actual expenses incurred for this business, which was $34,236, $14,861 and $6,425 for the year ended December 31, 2015, 2014 and 2013, respectively.

On October 31, 2012, the Company ceded 95% of its insurance policies in force pursuant to a reinsurance agreement with CMFG Life and the Company was reimbursed for 95% of expenses incurred in the provision of policyholder and benefit payment services, and insurance taxes and charges on a go forward basis under this contract. On September 30, 2015, the Company amended its reinsurance agreement with CMFG Life and now cedes 100% of its insurance policies in force to CMFG Life and is reimbursed 100% for expenses incurred in the provision of policyholder and benefit payments services, and insurance taxes and charges going forward. As a result of the amendment to this agreement the Company ceded $1,297 of earned premiums and $1,244 of benefits as of September 30, 2015.

MLIC did not have any other reinsurance agreements at December 31, 2015 or 2014 and the entire reinsurance recoverable balance of $24,628 and $25,199, respectively, was due from CMFG Life. The recoverable balances are not collateralized and the Company retains the risk of loss in the event CMFG Life is unable to meet its obligations assumed under the reinsurance agreements. CMFG Life is rated A (excellent) by A.M. Best Company and MLIC believes the risk of non-collection is remote.

26

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

The effects of reinsurance on contract charges, interest credited to policyholder accounts, premiums and on claims, benefits, and losses incurred for the years ended December 31 are as follows:

	2015			2014			2013
Face amount of policies in force	$	110,827		$	123,223		$	147,371
Premiums:
Direct - written	$	2,384		$	2,613		$	2,811
Direct - change in unearned		-			-			-
Direct - earned		2,384			2,613			2,811
Ceded to affiliate - written		(3,559	)		(2,482	)		(2,671	)
Ceded to affiliate - change in unearned		-			(4	)		(1	)
Ceded to affiliate - earned		(3,559	)		(2,486	)		(2,672	)
Premiums - written, net		(1,175	)		131			140
Premiums - change in unearned, net		-			(4	)		(1	)
Premiums, net	$	(1,175	)	$	127		$	139
Contract charges:
Direct	$	742		$	472		$	461
Ceded to affiliate		(724	)		(448	)		(415	)
Contract charges, net	$	18		$	24		$	46
Claims, benefits and losses incurred:
Direct	$	1,784		$	1,883		$	2,953
Ceded to affiliate		(2,988	)		(1,771	)		(2,774	)
Claims, benefits and losses, net	$	(1,204	)	$	112		$	179
Interest credited to policyholder account balances:
Direct	$	9,833		$	2,457		$	320
Ceded to affiliate		(9,829	)		(2,449	)		(311	)
Interest credited to policyholder account balances, net	$	4		$	8		$	9

27

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Note 8: Statutory Financial Data and Dividend Restrictions

The Company is a life and health insurer and is domiciled in Iowa. The Company files statutory-basis financial statements with insurance regulatory authorities. The Company did not use any permitted practices in 2015, 2014 or 2013. Certain statutory basis financial information for MLIC is presented in the table below as of and for the years ended December 31.

	Statutory Basis				Statutory Basis
	Capital and Surplus				Net Income (Loss)
	2015		2014		2015		2014			2013
MLIC	$	21,111	$	18,366	$	1,112	$	(1,792	)	$	(1,562	)

The Company is subject to statutory regulations as to maintenance of equity and the payment of dividends. Generally, ordinary dividends from an insurance subsidiary to its parent company must meet notice requirements promulgated by the regulator of the subsidiary’s state of domicile (“Insurance Department”). Extraordinary dividends, as defined by state statutes, must be approved by the Insurance Department. Based on Iowa statutory regulations, the Company could pay dividends up to $2,111 during 2016, without prior approval of the Insurance Department.

Risk-based capital (“RBC”) requirements promulgated by the National Association of Insurance Commissioners require U.S. insurers to maintain minimum capitalization levels that are determined based on formulas incorporating credit risk, insurance risk, interest rate risk, and general business risk. The adequacy of the Company’s actual capital is evaluated by a comparison to the RBC results, as determined by the formula. At December 31, 2015 and 2014, the Company’s adjusted capital exceeded the minimum requirements.

28

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Note 9:   Accumulated Other Comprehensive Income (Loss)

The components of accumulated comprehensive income (loss), net of tax, are as follows:

				Accumulated
	Unrealized			Other
	Investment			Comprehensive
	Gains (Loss)			Income (Loss)
Balance, January 1, 2013	$	423		$	423
Change in unrealized holding gains (losses),
net of tax - ($105)		(154	)		(154	)
Balance, December 31, 2013		269			269
Change in unrealized holding gains (losses),
net of tax - ($25)		(47	)		(47	)
Balance, December 31, 2014		222			222
Change in unrealized holding gains (losses),
net of tax - ($240)		(447	)		(447	)
Balance, December 31, 2015	$	(225	)	$	(225	)

Reclassification Adjustments

Accumulated other comprehensive income (losses) includes amounts related to unrealized investment gains (losses) which were reclassified to net income. Reclassifications from accumulated other comprehensive income (losses) for the years ended December 31 are included in the following table:

	2015		2014		2013
Reclassifications from accumulated other comprehensive income (losses)
Unrealized gains on available-for-sale
securities included in net realized investment losses	$	15	$	-	$	-
Total reclassifications from accumulated
other comprehensive income (losses)		15		-		-
Tax expense		5		-		-
Net reclassification from accumulated
other comprehensive income (losses)	$	10	$	-	$	-

29

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Note 10:   Business Segment Information

The following table sets forth financial information regarding the Company’s two reportable business segments for the year ended December 31, 2015.

	Life and
Year ended or as of December 31, 2015	Health			Annuities		Total
Revenues
Life and health premiums, net	$	(1,175	)	$	-	$	(1,175	)
Contract charges		18			-		18
Net investment income		366			-		366
Net realized investment gains		117			-		117
Other income		5,336			-		5,336
Total revenues		4,662			-		4,662
Benefits and expenses
Life and health insurance claims and benefits, net		(1,204	)		-		(1,204	)
Interest credited to policyholder account balances		4			-		4
Operating and other expenses		1,633			-		1,633
Total benefits and expenses		433			-		433
Income before income taxes		4,229			-		4,229
Income tax expense		1,449			-		1,449
Net income		2,780			-		2,780
Change in unrealized (losses), net of tax (benefit)		(447	)		-		(447	)
Other comprehensive (loss)		(447	)		-		(447	)
Total comprehensive income	$	2,333		$	-	$	2,333
Reinsurance recoverable from affiliate	$	24,628		$	-	$	24,628
Assets on deposit		-			947,595		947,595
Claim and policy benefit reserves - life and health		21,077			460		21,537
Policyholder account balances		3,473			947,595		951,068

30

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

The following table sets forth financial information regarding the Company’s two reportable business segments for the year ended December 31, 2014.

	Life and
Year ended or as of December 31, 2014	Health			Annuities		Total
Revenues
Life and health premiums, net	$	127				$	127
Contract charges		24			-		24
Net investment income		278			-		278
Net realized investment gains		-			-		-
Other income		-			-		-
Total revenues		429			-		429
Benefits and expenses
Life and health insurance claims and benefits, net		112			-		112
Interest credited to policyholder account balances		8			-		8
Operating and other expenses		137			-		137
Total benefits and expenses		257			-		257
Income before income taxes		172			-		172
Income tax expense		11			-		11
Net income		161			-		161
Change in unrealized (losses), net of tax (benefit)		(47	)		-		(47	)
Other comprehensive (loss)		(47	)		-		(47	)
Total comprehensive (loss)	$	114		$	-	$	114
Reinsurance recoverable from affiliate	$	25,199		$	-	$	25,199
Assets on deposit		-			349,937		349,937
Claim and policy benefit reserves - life and health		22,035			333		22,368
Policyholder account balances		3,612			349,937		353,549

31

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

The following table sets forth financial information regarding the Company’s two reportable business segments for the year ended December 31, 2013.

	Life and
Year ended or as of December 31, 2013	Health			Annuities		Total
Revenues
Life and health premiums, net	$	139		$	-	$	139
Contract charges		46			-		46
Net investment income		176			-		176
Net realized investment gains		-			-		-
Other income		293			-		293
Total revenues		654			-		654
Benefits and expenses
Life and health insurance claims and benefits, net		179			-		179
Interest credited to policyholder account balances		9			-		9
Operating and other expenses		86			-		86
Total benefits and expenses		274			-		274
Income before income taxes		380			-		380
Income tax expense		249			-		249
Net income		131			-		131
Change in unrealized (losses), net of tax (benefit)		(154	)		-		(154	)
Other comprehensive (loss)		(154	)		-		(154	)
Total comprehensive (loss)	$	(23	)	$	-	$	(23	)
Reinsurance recoverable from affiliate	$	25,525		$	-	$	25,525
Assets on deposit		-			89,313		89,313
Claim and policy benefit reserves - life and health		23,196			-		23,196
Policyholder account balances		3,734			89,313		93,047

32

  MEMBERS Life Insurance Company

  Notes to Financial Statements

  ($ in 000s)

Note 11:   Commitments and Contingencies

Insurance Guaranty Funds

The Company is liable for guaranty fund assessments related to certain unaffiliated insurance companies that have become insolvent during 2015 and prior years. The Company includes a provision for all known assessments that will be levied as well as an estimate of amounts that it believes will be assessed in the future relating to past insolvencies. The Company has established a liability of $270 and $75 at December 31, 2015 and 2014, respectively, for guaranty fund assessments. The Company also estimates the amount recoverable from future premium tax payments related to these assessments and has not established an asset as of December 31, 2015 and 2014 since it does not believe any amount will be recoverable. Recoveries of assessments from premium taxes are generally made over a five-year period.

Legal Matters

Like other members of the insurance industry, the Company is occasionally a party to a number of lawsuits and other types of proceedings, some of which may involve claims for substantial or indeterminate amounts. These actions are based on a variety of issues and involve a range of the Company’s practices. The Company has established procedures and policies to facilitate compliance with laws and regulations and to support financial reporting.

In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution and changes in business practices. The Company may not be advised of the nature and extent of relief sought until the final stages of the examination or proceeding. In the opinion of management, the ultimate liability, if any, resulting from all such pending actions will not materially affect the financial statements of the Company.

Note 12:   Subsequent Events

The Company evaluated subsequent events through the date the financial statements were issued. During this period, there were no significant subsequent events that required adjustment to or disclosure in the accompanying financial statements.

33

PART II
INFORMATION NOT REQUIRED IN PROSPECTUS

Item 13. Other Expenses of Issuance and Distribution.*

The expenses for the issuance and distribution of the securities offered by this Registration Statement, other than any underwriting discounts and commissions, are as follows:

Securities and Exchange Commission Registration Fees	$	290,500
Printing and engraving	$	70,000
Accounting fees and expenses	$	53,202
Legal fees and expenses	$	200,000
Miscellaneous	$	7,000
TOTAL EXPENSES	$	620,702

* Estimated.

Item 14.  Indemnification of Directors and Officers.

Section 490.202 of the Iowa Business Corporation Act (the “IBCA”), provides that a corporation’s articles of incorporation may contain a provision eliminating or limiting the personal liability of a director to the corporation or its shareholders for monetary damages for any action taken, or failure to take action, as a director, except liability for (1) the amount of a financial benefit received by a director to which the director is not entitled, (2) an intentional infliction of harm on MEMBERS Life Insurance Company (the “Registrant,” “we,” “our,” or “us”) or the shareholders, (3) a violation of Section 490.833 of the IBCA or (4) an intentional violation of criminal law.

Further, Section 490.851 of the IBCA provides that a corporation may indemnify its directors who may be party to a proceeding against liability incurred in the proceeding by reason of such person serving in the capacity of director, if such person has acted in good faith and in a manner reasonably believed by the individual to be in the best interests of the corporation, if the director was acting in an official capacity, and in all other cases that the individual’s conduct was at least not opposed to the best interests of the corporation, and in any criminal proceeding if such person had no reasonable cause to believe the individual’s conduct was unlawful or the director engaged in conduct for which broader indemnification has been made permissible or obligatory under a provision of the articles of incorporation. The indemnity provisions under Section 490.851 do not apply (i) in the case of actions brought by or in the right of the corporation except for reasonable expenses incurred in connection with the proceeding if it is determined that the director has met the relevant standard of conduct set forth above or (ii) in connection with any proceedings with respect to conduct for which the director was adjudged liable on the basis that the director received a financial benefit to which the director was not entitled, whether or not involving action in the director’s official capacity.

In addition, Section 490.852 of the IBCA provides mandatory indemnification of reasonable expenses incurred by a director who is wholly successful in defending any action in which the director was a party because the director is or was a director of the corporation. A director who is a party to a proceeding because the person is a director may also apply for court-ordered indemnification and advance of expenses under Section 490.854 of the IBCA.

Section 490.853 of the IBCA provides that a corporation may, before final disposition of a proceeding, advance funds to pay for or reimburse the reasonable expenses incurred by a director who is a party to a proceeding because such person is a director if the director delivers the following to the corporation: (1) a written affirmation that the director has met the standard of conduct described above or that the proceeding involved conduct for which liability has been eliminated under the corporation’s articles of incorporation and (2) the director’s written undertaking to repay any funds advanced if the director is not entitled to mandatory indemnification under Section 490.852 of the IBCA and it is ultimately determined that the director has not met the standard of conduct described above.

II-1

Under Section 490.856 of the IBCA, a corporation may indemnify and advance expenses to an officer of the corporation who is a party to a proceeding because such person is an officer, to the same extent as a director. In addition, if the person is an officer but not a director, further indemnification may be provided by the corporation’s articles of incorporation or bylaws, a resolution of the board of directors or by contract, except liability for (1) a proceeding by or in the right of the corporation other than for reasonable expenses incurred in connection with the proceeding and (2) conduct that constitutes receipt by the officer of a financial benefit to which the officer is not entitled, an intentional infliction of harm on the corporation or the shareholders or an intentional violation of criminal law. Such indemnification is also available to an officer who is also a director if the basis on which the officer is made a party to a proceeding is an act taken or a failure to take action solely as an officer.

Our Amended and Restated Articles of Incorporation provide that our directors will not be liable to us or our shareholders for money damages for any action taken, or any failure to take any action, as a director, except liability for (1) the amount of a financial benefit received by a director to which the director is not entitled, (2) an intentional infliction of harm on the Registrant or the shareholders, (3) a violation of Section 490.833 of the IBCA or (4) an intentional violation of criminal law.

Our Amended and Restated Articles of Incorporation also provide that we indemnify each of our directors or officers for any action taken, or any failure to take any action, as a director or officer except liability for (1) the amount of a financial benefit received by a director to which the director is not entitled, (2) an intentional infliction of harm on the Registrant or the shareholders, (3) a violation of Section 490.833 of the IBCA or (4) an intentional violation of criminal law. Additionally, the Registrant is required to exercise all of its permissive powers as often as necessary to indemnify and advance expenses to its directors and officers to the fullest extent permitted by law.

Our Bylaws also provide indemnification to our directors on the same terms as the indemnification provided in our Amended and Restated Articles of Incorporation. Our Bylaws also provide for advances of expenses to our directors and officers. The indemnification provisions of our Bylaws are not exclusive of any other right which any person seeking indemnification may have or acquire under any statute, our Amended and Restated of Incorporation or any agreement, vote of stockholders or disinterested directors or otherwise.

Section 490.857 of the IBCA provides that a corporation may purchase and maintain insurance on behalf of a person who is a director or officer of a corporation, or who, while a director or officer of a corporation, serves at the corporation’s request as a director, officer, partner, trustee, employee or agent of another domestic or foreign corporation, partnership, joint venture, trust, employee benefit plan or other entity, against liability asserted against or incurred by that person in that capacity or arising from that person’s status as a director or officer, whether or not the corporation would have the power to indemnify or advance expenses to that person against the same liability under the IBCA. As permitted by and in accordance with Section 490.857 of the IBCA, we maintain insurance coverage for our officers and directors as well as insurance coverage to reimburse us for potential costs for indemnification of directors and officers.

Item 15. Recent Sales of Unregistered Securities

None.

Item 16. Exhibits.

Exhibit Item Number	Description	Incorporated by Reference to	Filed Herewith
1(i)	Amended and Restated Distribution Agreement dated as of January 7, 2016 between MEMBERS Life Insurance Company (“MLIC”) and CUNA Brokerage Services, Inc. (“CBSI”)	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
1(ii)	Form of Selling and Services Agreement		X
3(i)	Articles of Incorporation of MLIC	Incorporated herein by reference to the initial filing of the MLIC Registration Statement on Form S-1, filed February 6, 2013 (File No. 333-186477)
3(ii)	Bylaws of MLIC	Incorporated herein by reference to the initial filing of the MLIC Registration Statement on Form S-1, filed February 6, 2013 (File No. 333-186477)

II-2

Exhibit Item Number	Description	Incorporated by Reference to	Filed Herewith
3(iii)	Amended and Restated Bylaws of MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
4(i)	Form of MEMBERS® Horizons Flexible Premium Deferred Variable Annuity Contract (Form No. 2015-VA-B)	Incorporated herein by reference to the initial filing of the MLIC Registration Statement on Form N-4, filed October 5, 2015 (File Nos.333-207276)
4(ii)	Form of MEMBERS® Horizons Flexible Premium Deferred Variable Annuity Contract (Form No. 2015-VA-C)	Incorporated herein by reference to the initial filing of the MLIC Registration Statement on Form N-4, filed October 5, 2015 (File Nos.333-207276)
4(iii)	Form of MEMBERS® Horizons Flexible Premium Deferred Variable Annuity Data Page (Form No. 2015-VADP-B)	Incorporated herein by reference to the initial filing of the MLIC Registration Statement on Form N-4, filed October 5, 2015 (File Nos.333-207276)
4(iv)	Form of MEMBERS® Horizons Flexible Premium Deferred Variable Annuity Data Page (Form No. 2015-VADP-C)	Incorporated herein by reference to the initial filing of the MLIC Registration Statement on Form N-4, filed October 5, 2015 (File Nos.333-207276)
4(v)(a)	Form of Individual Retirement Annuity Endorsement	Incorporated herein by reference to the initial filing of the MLIC Registration Statement on Form N-4, filed October 5, 2015 (File Nos.333-207276)
4(v)(b)	Form of Roth Individual Retirement Annuity Endorsement	Incorporated herein by reference to the initial filing of the MLIC Registration Statement on Form N-4, filed October 5, 2015 (File Nos.333-207276)
4(vi)	Form of MEMBERS® Horizons Flexible Premium Deferred Variable Annuity Application	Incorporated herein by reference to the initial filing of the MLIC Registration Statement on Form N-4, filed October 5, 2015 (File Nos.333-207276)
5	Legal Opinion		X
10(i)(a)	Coinsurance Agreement dated as of October 31, 2012	Incorporated herein by reference to the filing of Pre-Effective Amendment No. 1 to the MLIC Registration Statement on Form S-1, filed June 12, 2013 (File No. 333-186477)
10(i)(b)	Coinsurance Agreement dated as of January 1, 2013	Incorporated herein by reference to the filing of Pre-Effective Amendment No. 1 to the MLIC Registration Statement on Form S-1, filed June 12, 2013 (File No. 333-186477)
10(i)(c)	First Amendment to Coinsurance Agreement dated as of January 1, 2014	Incorporated herein by reference to the filing of Post-Effective Amendment No. 1 to the MLIC Registration Statement on Form S-1, filed April 4, 2014 (File No. 333-186477)
10(i)(d)	MEMBERS Horizon Coinsurance and Modified Coinsurance Agreement dated November 1, 2015 between MLIC and CMFG Life	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)

II-3

Exhibit Item Number	Description	Incorporated by Reference to	Filed Herewith
10(ii)(a)	Cost Sharing Agreement	Incorporated herein by reference to the filing of Pre-Effective Amendment No. 1 to the MLIC Registration Statement on Form S-1, filed June 12, 2013 (File No. 333-186477)
10(ii)(b)	Expense Sharing Agreement dated as of December 31, 2013	Incorporated herein by reference to the filing of Post-Effective Amendment No. 1 to the MLIC Registration Statement on Form S-1, filed April 4, 2014 (File No. 333-186477)
10(ii)(c)	Amended and Restated Expense Sharing Agreement dated as of January 1, 2015	Incorporated herein by reference to the filing of the MLIC Registration Statement on Form S-1, filed March 25, 2015 (File No. 333-202984)
10(iii)(a)	Investment Advisory Agreement	Incorporated herein by reference to the filing of Pre-Effective Amendment No. 1 to the MLIC Registration Statement on Form S-1, filed June 12, 2013 (File No. 333-186477)
10(iii)(b)	Amendment to Investment Advisory Agreement dated January 15, 2014	Incorporated herein by reference to the filing of Post-Effective Amendment No. 1 to the MLIC Registration Statement on Form S-1, filed April 4, 2014 (File No. 333-186477)
10(iii)(c)	Amended and Restated Investment Advisory Agreement dated January 1, 2015	Incorporated herein by reference to the filing of the MLIC Registration Statement on Form S-1, filed March 25, 2015 (File No. 333-202984)
10(iv)(a)	Procurement and Disbursement and Billing and Collection Services Agreement	Incorporated herein by reference to the filing of Pre-Effective Amendment No. 1 to the MLIC Registration Statement on Form S-1, filed June 12, 2013 (File No. 333-186477)
10(iv)(b)	Amendment to Procurement and Disbursement and Billing and Collection Services Agreement	Incorporated herein by reference to the filing of Post-Effective Amendment No. 1 to the MLIC Registration Statement on Form S-1, filed April 4, 2014 (File No. 333-186477)
10(iv)(c)	CUNA Mutual Group Cost Sharing, Procurement, Disbursement, Billing and Collection Agreement dated as of January 1, 2015	Incorporated herein by reference to the filing of the MLIC Registration Statement on Form S-1, filed March 25, 2015 (File No. 333-202984)
10(v)(a)	Fund Participation and Service Agreement between American Funds Insurance Series and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(a)i	Business Agreement between American Funds Distributors, Inc., CBSI and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(a)ii	American Funds Rule 22c-2 Agreement between American Funds Service Company and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)

II-4

Exhibit Item Number	Description	Incorporated by Reference to	Filed Herewith
10(v)(b)	Fund Participation Agreement between BlackRock Variable Series Funds, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(b)i	Administrative Services Agreement between BlackRock Advisors, LLC and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(b)ii	Form of Distribution Sub-Agreement between BlackRock Variable Series Funds, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(c)	Fund Participation Agreement between Columbia Funds Variable Insurance Trust I, Columbia Management Investment Advisors, LLC, Columbia Management Investment Distributors, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(c)i	Fund Participation Agreement between Columbia Funds Variable Insurance Trust II, Columbia Management Investment Advisors, LLC, Columbia Management Investment Distributors, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(c)ii	Fund Participation Agreement between Columbia Funds Variable Insurance Trust, Columbia Management Investment Advisors, LLC, Columbia Management Investment Distributors, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(c)iii	Revenue Sharing Agreement between Columbia Management Investment Distributors, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(d)	Participation Agreement between DFA Investment Dimensions Group Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(e)	Fund Participation Agreement between The Dreyfus Variable Investment Fund and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(f)	Fund Participation Agreement between The Dreyfus Corporation and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(f)i	Administrative Services Agreement between The Dreyfus Corporation and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)

II-5

Exhibit Item Number	Description	Incorporated by Reference to	Filed Herewith
10(v)(f)ii	Distribution Letter Agreement between MBSC Securities Corporation (The Dreyfus Corporation) and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(g)	Participation Agreement between Franklin Templeton Variable Insurance Products Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(g)i	Administrative Services Agreement between Franklin Templeton Variable Insurance Products Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(g)ii	Shareholder Information Agreement between Franklin Templeton Variable Insurance Products Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(h)	Participation Agreement between Goldman Sachs Variable Insurance Trust, Goldman Sachs & Co. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(h)i	Amendment #1 to Participation Agreement between Goldman Sachs Variable Insurance Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(h)ii	Service Class Services Agreement between Goldman Sachs Variable Insurance Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(h)iii	Administrative Services Agreement between Goldman Sachs Asset Management, L.P. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(h)iv	Shareholder Information Agreement between Goldman Sachs & Co and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(i)	Participation Agreement between AIM Variable Insurance Funds(Invesco Variable Insurance Funds), Invesco Distributors, Inc., CBSI and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(i)i	Distribution Services Agreement between AIM Variable Insurance Funds(Invesco Variable Insurance Funds) and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)

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Exhibit Item Number	Description	Incorporated by Reference to	Filed Herewith
10(v)(j)	Fund Participation Agreement between Lazard Retirement Series, Inc., Lazard Asset Management Securities LLC and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(j)i	Servicing Agreement between Lazard Retirement Series, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(k)	Participation Agreement between MFS Variable Insurance Trust, MFS Variable Insurance Trust II, MFS Variable Insurance Trust III, MFS Fund Distributors, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(k)i	Fund/Serv and Networking Supplement to Participation Agreement between MFS Variable Insurance Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(k)ii	Fee Letter Agreement between MFS Variable Insurance Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(l)	Participation Agreement between Morgan Stanley and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(l)i	Servicing Agreement between Morgan Stanley and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(l)ii	Letter Agreement between Morgan Stanley and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(l)iv	Administrative Service Agreement between Morgan Stanley and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(m)	Participation Agreement between Oppenheimer Variable Account Funds and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(m)i	Shareholder Information Agreement between OppenheimerFunds Distributor, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)

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Exhibit Item Number	Description	Incorporated by Reference to	Filed Herewith
10(v)(n)	Participation Agreement between PIMCO Variable Insurance Trust, PIMCO Equity Series, VIT, PIMCO Investments LLC and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(o)	Fund Participation Agreement between Northern Lights Variable Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(o)i	Fund/Serv Agreement between Northern Lights Distributors, LLC and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(o)ii	Distribution and Shareholder Services Agreement between Northern Lights Variable Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(p)	Participation Agreement between T Rowe Price Equity Series, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(p)i	Rule 22c-2 Agreement between T Rowe Price Equity Series, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(p)ii	12b-1 Agreement between T. Rowe Price Investment Services, Inc. and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(q)	Participation Agreement between Vanguard Variable Insurance Fund, The Vanguard Group, Inc., Vanguard Marketing Corporation and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(q)i	Defined Contribution Clearance & Settlement Agreement between The Vanguard Group and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed April 6, 2016 (File No. 333-207276)
10(v)(r)	Participation Agreement between Putnam Variable Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)

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Exhibit Item Number	Description	Incorporated by Reference to	Filed Herewith
10(v)(r)i	Rule 22c-2 Agreement between Putnam Variable Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(r)ii	Marketing and Administrative Services Agreement between Putnam Variable Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
10(v)(r)iii	Letter Agreement between Putnam Variable Trust and MLIC	Incorporated herein by reference to the initial filing of the Registrant on Form N-4, filed January 29, 2016 (File No. 333-207276)
23(i)	Consent of Legal Counsel	See Exhibit 5	X
23(ii)	Consent of Independent Registered Public Accounting Firm		X
24	Powers of Attorney		X
101	Interactive Date Files		X

*To be filed by Amendment.

Item 17. Undertakings.

(A) The undersigned Registrant hereby undertakes:

(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

(i)	To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
(ii)	To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective Registration Statement;
(iii)	To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement.

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a Registration Statement relating to an offering, other than Registration Statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the Registration Statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a Registration Statement or prospectus that is part of the Registration Statement or made in a document incorporated or deemed incorporated by reference into the Registration Statement or prospectus that is part of the Registration Statement will, as to a purchaser with a time of contract of sale prior to

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such first use, supersede or modify any statement that was made in the Registration Statement or prospectus that was part of the Registration Statement or made in any such document immediately prior to such date of first use.

(5) That, for the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant to this Registration Statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

(i)	Any preliminary prospectus or prospectus of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424;
(ii)	Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned Registrant;
(iii)	The portion of any other free writing prospectus relating to the offering containing material information about the undersigned Registrant or its securities provided by or on behalf of the undersigned Registrant; and
(iv)	Any other communication that is an offer in the offering made by the undersigned Registrant to the purchaser.

(B) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in that Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, MEMBERS Life Insurance Company has duly caused this Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Madison, and State of Wisconsin as of this 6 day of April, 2016.

MEMBERS Life Insurance Company
By:	/s/M. Jeffrey Bosco
	M. Jeffrey Bosco, President

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and as of the dates indicated:

Name	Title	Date
/s/ M. Jeffrey Bosco*	President and Director	April 6, 2016
M. Jeffrey Bosco	(Principal Executive
	Officer)
/s/ Brian J. Borakove*	Treasurer (Principal	April 6, 2016
Brian J. Borakove	Financial & Accounting
	Officer)
/s/ Michael F. Anderson*	Director	April 6, 2016
Michael F. Anderson
/s/ Michael T. Defnet*	Director	April 6, 2016
Michael T. Defnet
/s/ Jason A. Pisarik*	Director	April 6, 2016
Jason A. Pisarik
/s/ Steven R. Suleski*	Director	April 6, 2016
Steven R. Suleski
*By:/s/Ross D. Hansen
Ross D. Hansen

*Pursuant to Power of Attorney (see Exhibit

24 to this Registration Statement)

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EX-1

Exhibit 99(1)(ii)

SELLING AND SERVICES AGREEMENT
FOR
INSURANCE AND ANNUITY (FIXED AND VARIABLE) PRODUCTS

THIS SELLING AND SERVICES AGREEMENT (this “Agreement”) is entered into as of __________, 20___ (the “Effective Date”) by and between CMFG Life Insurance Company, an Iowa insurance company, MEMBERS Life Insurance Company, an Iowa insurance company (together, “CUNA Mutual”), CUNA Brokerage Services, Inc., a Wisconsin corporation (“CUNA Brokerage”) and [____________________], a [___________] corporation, (“General Agent” and “Broker Dealer”) with an address of [__________________________________].

WHEREAS, CUNA Mutual has the requisite authority to provide certain fixed insurance policies and annuity contracts and variable life insurance policies and annuity contracts, some of which are securities under the Securities Act of 1933, as amended;

WHEREAS, CUNA Mutual has appointed CUNA Brokerage, a registered broker-dealer with the Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934, as amended (the “1934 Act”), and a member of the Financial Industry Regulatory Authority (“FINRA”), as the principal underwriter and distributor of its variable life insurance policies and annuity contracts;

WHEREAS, General Agent or Broker-Dealer, as the case may be, has the requisite authority to solicit, sell and service fixed insurance policies and annuity contracts and variable life insurance policies and annuity contracts contemplated under this Agreement and Broker-Dealer is a registered broker-dealer with the SEC under the 1934 Act and a member of FINRA; and

WHEREAS, CUNA Mutual and CUNA Brokerage desire to appoint and authorize, on a non-exclusive basis, General Agent and Broker-Dealer to solicit, sell and service certain fixed insurance policies and annuity contracts and variable life insurance policies and annuity contracts (hereinafter collectively referred to as the “Products”), which are more fully described in the Products and Compensation Schedule (the “Schedule”) attached hereto and incorporated herein, and to have General Agent and Broker-Dealer provide certain administrative services as described in this Agreement for purposes of soliciting, selling and servicing the Products; and General Agent and Broker-Dealer desire to accept such appointment and authorization pursuant to this Agreement. In the event General Agent and Broker-Dealer are the same entity, the term “General Agent” in this Agreement shall refer to Broker-Dealer, which shall undertake all the obligations and privileges of General Agent pursuant to this Agreement.

NOW, THEREFORE, in consideration of the mutual promises made herein, the parties hereto agree as follows:

1.          Purpose of Agreement. The principal purpose of this Agreement is to set forth a selling and service arrangement whereby CUNA Mutual and CUNA Brokerage will provide the Products and appoint and authorize, on a non-exclusive basis, General Agent and Broker-Dealer,

and through General Agent’s and Broker-Dealer’s registered representatives (“Representatives”) who are also licensed to sell insurance in appropriate jurisdictions and who are appointed by CUNA Mutual to sell the Products, accept such appointment and authorization and will solicit, sell and service the Products hereunder. Further, General Agent and Broker-Dealer will provide certain administrative services pursuant to this Agreement for the purposes of soliciting, selling and servicing the Products.

2.           Roles and Responsibilities of CUNA Mutual and CUNA Brokerage.

2.1          The Products. The Products issued by CUNA Mutual are described on the Schedule. The attached Schedule may be amended from time-to-time by CUNA Mutual. Prior versions of Products are included for servicing under this Agreement for prior customers by Representatives who are now appointed as agents of CUNA Mutual through General Agent under this Agreement. Any customer records and files relating to prior versions of the Products shall be retained by the appropriate Representatives or by General Agent or Broker-Dealer and shall be subject to the confidentiality provisions of Section 5 and record maintenance provisions of Subsection 3.15 of this Agreement. Upon issuance of the Products pursuant to this Agreement, CUNA Mutual will transmit Products to General Agent or Broker-Dealer for delivery to policyholders according to procedures set up by CUNA Mutual, unless CUNA Mutual has provided otherwise. CUNA Mutual, in its sole discretion and without notice to Broker-Dealer, may suspend sales of any of the Products or may amend the Products if, in CUNA Mutual’s opinion, such suspension or amendment is: (a) necessary for compliance with federal, state, or local laws, regulations, or administrative orders; or (b) necessary to prevent administrative or financial hardship to CUNA Mutual. In all other situations, CUNA Mutual shall provide reasonable notice, as practicable, to Broker-Dealer prior to suspending sales of any of the Products or amending the Products.

2.2.          Appointment of General Agent and Authorization of Broker-Dealer. CUNA Mutual hereby appoints and CUNA Brokerage hereby authorizes General Agent and Broker-Dealer to solicit, sell and service the Products through its Representatives. General Agent and Broker-Dealer shall be responsible for any appointment or renewal fees.

2.3          Prospectuses. CUNA Mutual and CUNA Brokerage, at their own expense, will provide Broker-Dealer with prospectuses and supplements thereto relating to the Products, and such other materials as CUNA Mutual or CUNA Brokerage, in its sole discretion, deems necessary or appropriate for use in connection with the issuance and sale of the Products. Upon termination of this Agreement or upon request by CUNA Mutual or CUNA Brokerage, Broker-Dealer shall promptly return all such prospectuses, supplements and other materials to CUNA Mutual or CUNA Brokerage free from any claim or retention rights by Broker-Dealer.

2.4          Sales and Promotion Material. CUNA Mutual and CUNA Brokerage, at their expense and as deemed necessary at their discretion, may provide sales and promotion materials relating to the Products for use by General Agent and Broker-Dealer. Upon termination of this Agreement, General Agent and Broker-Dealer shall promptly return or destroy all such sales and promotion materials and advertising relating to the Products to CUNA Mutual or CUNA Brokerage pursuant to Subsection 7.3 hereof.

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2.5           Compensation.

(a)          CUNA Mutual or CUNA Brokerage shall pay “Compensation,” as more fully described in the Schedule, semi-monthly to General Agent and/or Broker-Dealer based upon the Products sold by General Agent and/or Broker-Dealer during the term of this Agreement. CUNA Mutual and CUNA Brokerage reserve the right, upon at least thirty (30) days prior written notice to General Agent and Broker-Dealer, to change the Compensation on the Schedule. Any such change shall constitute an amendment to the Schedule and shall apply to Compensation due on applications of the Products received by CUNA Mutual after the effective date of such amendment. Notwithstanding the foregoing, in the event General Agent or Broker-Dealer or any Representative of General Agent or Broker-Dealer shall at any time induce or endeavor to induce any policyholders to relinquish the Products, except under circumstances where there is reasonable grounds for believing that a particular policy or contract is not suitable for a customer, any and all Compensation due General Agent and Broker-Dealer hereunder shall cease and terminate. Except as expressly set forth herein and the Schedule, no compensation other than that shown on the Schedule shall be paid or payable by CUNA Mutual or CUNA Brokerage to General Agent or Broker-Dealer in connection with the offer and sale of the Products.

(b)          General Agent, CUNA Mutual and CUNA Brokerage acknowledge and agree that certain Representatives, acting as agents of General Agent under this Agreement, may elect to be paid by CUNA Mutual directly for fixed annuity products described on the Schedule attached hereto. Such agents will be acting as independent agents under a separate independent agent agreement executed between CUNA Mutual and said agents.

2.6          Legal Compliance. CUNA Mutual and CUNA Brokerage will comply in all material respects with all applicable insurance and securities laws and rules and regulations thereunder, including the rules and regulations of federal and state authorities and self-regulatory organizations that have jurisdiction over their activities described in this Agreement.

3.           Roles and Responsibilities of General Agent and Broker-Dealer.

3.1          Insurance Licensing. At all times while performing obligations under this Agreement and at its own expense, General Agent, and General Agent’s Representatives, shall be validly licensed, including fees related to license issue, transfer and termination, as an insurance agency in the states and other local jurisdictions that require such licensing or registration in connection with General Agent’s fixed and variable insurance sales activities, or shall maintain a validly licensed insurance agency subsidiary in those states, if any, in which General Agent cannot obtain a corporate agent’s license.

3.2          Securities Registration. At all times while Broker-Dealer is performing its obligations under this Agreement, Broker-Dealer, at its own expense, shall be responsible for all fees, including registration and examination fees, necessary in order to be registered as a securities broker with the SEC and FINRA and shall generally maintain all licenses, registrations and such other qualifications as may be necessary or required by applicable federal and state

3

laws, regulations or requirements of any self-regulating organization with respect to its activities hereunder.

3.3          Representatives. General Agent shall have sole responsibility for the training, supervision and compliance with applicable insurance laws and regulations relating to Representatives who are engaged directly or indirectly in soliciting, selling and servicing of the Products. All such persons shall be subject to the control of Broker-Dealer with respect to such persons’ securities regulated activities in connection with the Products, including, but not limited to, training and compliance with applicable federal and state laws and regulations and compliance with any supervisory responsibilities pursuant to applicable FINRA rules. General Agent and Broker-Dealer shall be responsible for the selection of Representatives with the requisite insurance licenses and securities registration under applicable federal, state, and local laws, rules or regulations in order to engage in soliciting, selling and servicing the Products. General Agent and Broker-Dealer will cause such Representatives to be trained in the selling of the Products to ensure Representatives have thorough knowledge of the Products and the ability to make appropriate product presentations and suitability determinations in compliance with applicable law. Furthermore, General Agent and Broker-Dealer will ensure Representatives are licensed and registered representatives of General Agent or Broker-Dealer, as the case may be, and meet any other requirements or conditions of this Agreement before such Representatives engage in the solicitation of applications for the Products, and General Agent and Broker-Dealer will ensure that such Representatives maintain such licenses and registrations in accordance with applicable laws and regulations. General Agent and Broker Dealer will be responsible for all insurance and licensing fees for Representatives. Further, General Agent and Broker-Dealer will cause such Representatives to limit solicitation of applications for the Products to jurisdictions where CUNA Mutual or CUNA Brokerage has approved or authorized such solicitation. General Agent and Broker-Dealer will cause such Representatives to comply with all applicable administrative procedures of CUNA Mutual, including without limitation, any Code of Conduct and/or Compliance Manual published by CUNA Mutual and provided to General Agent and Broker-Dealer. Representatives’ qualifications shall be certified to the satisfaction of CUNA Mutual and CUNA Brokerage, and General Agent or Broker-Dealer, as the case may be, shall notify CUNA Mutual and CUNA Brokerage if any Representative ceases to be a registered representative of Broker-Dealer or ceases to maintain the proper licensing required for selling the Products and will act to terminate the sales activities of such Representative relating to the Products.

3.4          Appointment of Representatives. General Agent shall assist CUNA Mutual in the appointment of Representatives under the applicable insurance laws to sell the Products. General Agent agrees to fulfill all requirements set forth in the General Letter of Recommendation, attached hereto as Exhibit A and fully incorporated herein, in conjunction with the submission of licensing/appointment papers for all applicants as insurance agents of CUNA Mutual. All such licensing/appointment papers should be submitted to CUNA Mutual or its duly appointed agent by General Agent. Notwithstanding such submission, CUNA Mutual shall have sole discretion to appoint, refuse to appoint, discontinue, or terminate the appointment of any Representative as an insurance agent of CUNA Mutual.

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3.5          Representatives’ Insurance Compliance. Prior to allowing Representatives to solicit, sell or service the Products, General Agent shall require Representatives to be validly insurance licensed, registered and appointed by CUNA Mutual as an agent in accordance with the jurisdictional requirements of the place where the solicitations, sales or service take place as well as the solicited person’s or entity’s place of residence.

3.6           Compliance with FINRA Rules of Conduct and Federal and State Securities and Insurance Laws.

(a)          Broker-Dealer shall fully comply and shall cause Representatives to fully comply with the requirements of FINRA and of the 1934 Act and all other applicable securities and insurance federal, state or local laws, rules and regulations. Further, General Agent and Broker-Dealer will establish rules and procedures as may be necessary consistent with applicable laws and regulations to provide diligent supervision of the securities and insurance sales activities of Representatives. Upon request by CUNA Mutual or CUNA Brokerage, General Agent and Broker-Dealer shall promptly furnish any records deemed necessary to establish such diligent supervision.

(b)          Broker-Dealer represents and warrants that during the term of this Agreement, it will maintain and implement: i) policies and procedures designed to comply with all applicable rules of FINRA, including but not limited to rules relating to suitability of variable annuity and variable universal life recommendations; ii) a training program for Representatives designed to ensure that Representatives gather information concerning a customer’s financial status, tax status, investment objective and other relevant information prior to recommending the purchase or exchange of a variable annuity or variable universal life contract; and iii) a reasonable system of sales supervision designed to achieve compliance with FINRA rules. Upon request by CUNA Mutual, Broker-Dealer agrees to complete an annual suitability review certification and to provide a report to CUNA Mutual certifying that Broker-Dealer is in compliance with the said activities listed above. Such reports shall be certified by a senior manager of Broker-Dealer who has responsibility for such activities. Broker-Dealer acknowledges and agrees that CUNA Mutual and/or CUNA Brokerage may conduct an inspection and/or audit of Broker-Dealer on a periodic basis to ensure compliance with the stated activities above, and Broker-Dealer agrees to make reasonable accommodation to CUNA Mutual to enable CUNA Mutual to inspect documents and records Broker-Dealer is responsible to maintain that are directly related to the sale and suitability of any CUNA Mutual variable annuity and variable universal life products.

3.7          Compliance with Administrative Procedures. General Agent and Broker-Dealer shall fully comply and shall cause Representatives to fully comply with the administrative procedures of CUNA Mutual relating to the Products and the policies and procedures adopted by CUNA Mutual relating to privacy, agent conduct and similar matters to the extent such policies and procedures are applicable to the soliciting, sale and servicing of the Products, as those administrative procedures and other policies and procedures are now in effect or may be amended or established in the future by CUNA Mutual in its sole discretion and communicated to General Agent and Broker-Dealer, as appropriate.

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3.8          Compliance With Prospectuses. General Agent and Broker-Dealer shall comply with the terms of any prospectus (and supplements thereto) for a Product. Without limiting the generality of the foregoing, General Agent and Broker-Dealer shall offer the Products only at the public offering price disclosed in the prospectus. In this regard, General Agent and Broker-Dealer agree that Broker-Dealer shall be responsible for determining if, and calculating the amount of, any waiver or reduction in sales charges is applicable to any prospective purchaser of a Product and indicating such information on the application for the Product. In addition, without limiting the generality of the foregoing, General Agent and Broker-Dealer understand and acknowledge that the Products are not suitable for offer or sale in connection with any so-called “market-timing” program, plan, arrangement or service of General Agent or Broker-Dealer or any Representative. General Agent and Broker-Dealer shall not knowingly solicit, offer, or sell Products for use in connection with any so-called “market-timing” program, plan, arrangement or service and shall provide reasonable assistance to CUNA Mutual and CUNA Brokerage in preventing the Products from being used for “market-timing” activity.

3.9          Delivery of Prospectuses and Use of Sales Materials. Broker-Dealer agrees to deliver prospectuses, prospectus supplements, and other sales and promotion materials for the Products to purchasers and prospective purchasers of the Products in a timely manner and in accordance with all applicable laws and regulations. General Agent, Broker-Dealer and their agents shall not use any sales and promotion materials or any advertisements that they may create relating to the Products, CUNA Mutual or CUNA Brokerage, unless CUNA Mutual or CUNA Brokerage approve such materials and advertisements in writing prior to use. However, this limitation shall not prevent General Agent and Broker-Dealer from advertising insurance products in general, provided such advertising does not reference the Products, CUNA Mutual, CUNA Brokerage, or any affiliated person of CUNA Mutual or CUNA Brokerage.

3.10          Notice of Representative’s Noncompliance. In the event a Representative fails or refuses to submit to supervision of General Agent and Broker-Dealer, ceases to be a registered representative of Broker-Dealer or otherwise fails to meet the rules and standards imposed by General Agent and Broker-Dealer on Representatives, General Agent and Broker-Dealer, as the case may be, shall immediately advise CUNA Mutual and CUNA Brokerage of this fact and shall immediately notify such Representative that s/he is no longer authorized to sell the Products. General Agent or Broker-Dealer shall take whatever additional action may be necessary to terminate the selling and service activities of such Representative relating to the Products, which shall include, but not be limited to, acquiring all the customer records and files of the Representative relating to the Products. General Agent and Broker-Dealer agree to retain such customer records as required by applicable federal or state laws and regulations and to provide access to such records as CUNA Mutual or CUNA Brokerage may reasonably request.

3.11          Compensation to Representatives. CUNA Mutual or CUNA Brokerage shall pay Compensation to General Agent and Broker-Dealer pursuant to the Schedule. General Agent and Broker-Dealer will be solely responsible for any compensation payable to Representatives or any other persons associated with General Agent and Broker-Dealer relating to the Products hereunder in accordance with applicable laws and regulations. Except as necessary to meet legal requirements or subject to the provisions as set forth in Subsection 2.5(b)

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of this Agreement, CUNA Mutual or CUNA Brokerage will not be responsible for any compensation payable to Representatives or agents of General Agent and Broker-Dealer.

3.12          Handling of Applications. CUNA Mutual shall supply Product application forms for General Agent’s and Broker-Dealer’s use. All payments collected by General Agent or Broker-Dealer or Representatives of General Agent and Broker-Dealer will be promptly remitted in full, along with such application forms and any other required documentation, directly to CUNA Mutual at the address indicated on such application or to such other address as CUNA Mutual designates in writing. General Agent and Broker-Dealer are responsible for reviewing all such applications for completeness and correctness, as well as compliance with suitability standards of all applicable federal and state laws, rules and regulations and SEC and FINRA requirements. Payments for the Products shall be made by check, bank wire transfer or other forms of payment deemed acceptable by CUNA Mutual and allowable under applicable laws or regulations and shall be drawn to the order of “MEMBERS Life Insurance Company” or “CMFG Life Insurance Company.” General Agent and Broker-Dealer do not have any authority to deposit or endorse checks payable to CUNA Mutual without the prior written approval of CUNA Mutual. All applications are subject to acceptance or rejection by CUNA Mutual in its sole discretion. CUNA Mutual may require that any medical examination made in conjunction with an application for a Product be made by a medical examiner approved by CUNA Mutual and CUNA Mutual shall pay only those fees in connection with medical examinations that have been expressly authorized by it. All records or information obtained hereunder by General Agent or Broker-Dealer shall not be disclosed or used except as expressly authorized herein and pursuant to Section 5 hereof, and General Agent and Broker-Dealer will keep confidential such records and information, which will only be disclosed as authorized or if expressly required by federal or state regulatory authorities. General Agent and Broker-Dealer, in submitting applications for the Products, will be deemed to have warranted to CUNA Mutual and CUNA Brokerage that General Agent or Broker-Dealer, as the case may be, has made a determination of suitability based on information concerning the prospective purchaser’s insurance and investment objectives, risk tolerance, need for liquidity, and financial and insurance situation and needs, or on such other factors that General Agent or Broker-Dealer deems to be appropriate under the circumstances and in compliance with applicable laws and regulations. General Agent and Broker-Dealer will not, directly or indirectly, expend or contract for the expenditure of any funds of CUNA Mutual or CUNA Brokerage and CUNA Mutual and CUNA Brokerage will not be obligated to pay any expense incurred by General Agent or Broker-Dealer in the performance of this Agreement, unless otherwise provided for in this Agreement or agreed to in advance in writing by CUNA Mutual or CUNA Brokerage.

3.13          Transmission and Ownership of Money for Products. All money received by General Agent and Broker-Dealer or Representatives or agents of General Agent and Broker-Dealer in connection with the Products, whether as premium or otherwise, and whether paid by or on behalf of any policyholder, contract owner or anyone else having an interest in the Products, is the property of CUNA Mutual, shall be held in a separate account and shall be transmitted promptly in accordance with the administrative procedures of CUNA Mutual without any deduction or offset for any reason, including but not limited to, any deduction or offset for Compensation claimed by General Agent or Broker-Dealer.

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3.14          Delivery of Products. Upon issuance of the Products by CUNA Mutual pursuant to this Agreement, CUNA Mutual will transmit Products to purchasers, as long as the representative or agent of General Agent and/or Broker Dealer indicates on each application that CUNA Mutual is requested to deliver said transmission to the purchaser, all in accordance with procedures established by CUNA Mutual, unless CUNA Mutual has provided otherwise. CUNA Mutual will transmit a copy of the data page to Representatives of General Agent or Broker-Dealer upon issuance of the Products.

3.15          Books, Accounts and Records. General Agent and Broker-Dealer will maintain all books, accounts, and records as required by applicable laws and regulations. The books, accounts and records of General Agent and Broker-Dealer shall be kept in good order and clearly and accurately disclose the nature and details of transactions relating to the Products and General Agent’s and Broker-Dealer’s activities related thereto. General Agent and Broker-Dealer shall keep confidential all information obtained pursuant to this Agreement, including, but not limited to, names of policyholders, and shall disclose such information only if CUNA Mutual or CUNA Brokerage has authorized such disclosure in writing, or if such disclosure is expressly required by applicable federal or state authorities. CUNA Mutual and CUNA Brokerage shall have prompt and full access to all books, accounts and records of General Agent and Broker-Dealer pertaining to the Products. General Agent and Broker-Dealer agrees to permit CUNA Mutual and CUNA Brokerage representatives to enter into all areas of the General Agent’s and Broker-Dealer’s business related hereto for the purpose of conducting inspections and General Agent and Broker-Dealer shall fully cooperate with such representatives during such inspections by rendering assistance as CUNA Mutual and CUNA Brokerage may reasonably request. Upon notice from CUNA Mutual or CUNA Brokerage, and without limiting other rights of CUNA Mutual and CUNA Brokerage under this Agreement, General Agent and Broker-Dealer shall take certain steps as may be necessary to correct any deficiencies detected during such inspections. Each party hereto agrees to promptly furnish any reports and information which a party hereto may request in order to meet its reporting and record keeping obligations under the state insurance laws and the federal and state securities laws or rules of FINRA and to provide such books and records to the regulatory and administrative agencies which have jurisdiction over CUNA Mutual or CUNA Brokerage.

3.16          Customer File and Record Retention. For a period of six (6) years from the termination date of this Agreement, General Agent and Broker-Dealer agree (a) to permit CUNA Brokerage or CUNA Mutual access to inspect and copy, during normal business hours, books and records, including but not limited to customer files relating to the Products under this Agreement that are specifically required to be maintained by the rules and regulations promulgated by the SEC, FINRA, or any other federal or state regulatory agency with jurisdiction over CUNA Brokerage, CUNA Mutual, Broker-Dealer or General Agent in connection with an audit or investigation, including any such files as may have been requested by such regulatory agencies (“Required Files) and (b) to maintain such Required Files in the form originally received. In addition, this information will be made available to CUNA Brokerage or CUNA Mutual in the event an individual customer complaint or class action is submitted relating to activity between customer and CUNA Brokerage or CUNA Mutual so that CUNA Brokerage or CUNA Mutual, as the case may be, may respond to such complaint. This information will be provided immediately to CUNA Brokerage or CUNA Mutual for such

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inspections and proof of the regulatory request and/or customer complaint. Within ninety (90) days following termination, General Agent and Broker-Dealer shall deliver to CUNA Brokerage or CUNA Mutual the following materials maintained by General Agent and Broker-Dealer or Representatives: sales and promotion material, correspondence, customer communications, including all communications relating to customer complaints, and records relating to inspections conducted by any regulatory agency or by personnel of CUNA Brokerage or CUNA Mutual. This Subsection 3.16 shall survive termination of this Agreement.

3.17          Notification of Disciplinary Proceedings and Customer Complaints. General Agent and Broker-Dealer shall promptly notify CUNA Mutual and CUNA Brokerage of any disciplinary proceedings or customer complaints against General Agent or Broker-Dealer, or any Representatives or agents of General Agent and Broker-Dealer relating to the Products or any threatened or filed arbitration action or civil litigation arising out of the solicitation, sale or service of the Products. General Agent and Broker-Dealer shall fully and promptly cooperate with CUNA Mutual and CUNA Brokerage in investigating and responding to any customer complaint, attorney demand, or inquiry received from state insurance departments or other regulatory agencies or legislative bodies, and in any settlement or trial of any actions arising out of the conduct of business under this Agreement. No response by General Agent or Broker-Dealer to an individual customer complaint involving a Product will be sent until it has been approved by CUNA Mutual or CUNA Brokerage. Any response by General Agent or Broker-Dealer to an individual customer complaint will be sent to CUNA Mutual and CUNA Brokerage for approval not less than five (5) business days prior to it being sent to the customer, except if a more prompt response is required, the proposed response may be communicated by telephone, electronically, via facsimile or in person.

3.18          Fidelity Bond and Errors and Omissions Insurance Coverages. General Agent/Broker-Dealer agrees that all directors, officers, employees and Representatives of General Agent/Broker-Dealer shall be covered by a blanket fidelity bond/crime insurance policy issued by a reputable bonding company with a limit of not less than five hundred thousand dollars ($500,000) each occurrence for loss of money, securities or property sustained by CUNA Mutual or CUNA Brokerage resulting from theft or forgery committed by General Agent/Broker-Dealer or Representatives. General Agent/Broker-Dealer further agrees to obtain and maintain errors and omissions insurance in an amount of at least two million dollars ($2,000,000) each claim with a two million dollar ($2,000,000) annual aggregate during the term of this Agreement for General Agent/Broker-Dealer and Representatives. All said coverages above shall be maintained by General Agent/Broker-Dealer at General Agent/Broker-Dealer’s expense. CUNA Mutual may require evidence that all such coverages above are in force and are satisfactory, and Broker Dealer shall give prompt written notice to CUNA Mutual of any notice of cancellation or change of the coverages. General Agent/Broker-Dealer shall be solely responsible for responding to customers and filing claims as may be necessary under this Agreement and General Agent/Broker-Dealer is responsible for any out-of-pocket expenses related to such claims. General Agent/Broker-Dealer hereby assigns to CUNA Mutual or CUNA Brokerage, as the case may be, any proceeds received from the insurance companies to the extent CUNA Mutual’s or CUNA Brokerage’s loss is due to activities covered by said policies. If there is any deficiency amount, whether due to a deductible or otherwise, General Agent/Broker-Dealer shall promptly pay CUNA Mutual or CUNA Brokerage such amount on demand,

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and General Agent/Broker-Dealer hereby indemnifies and holds CUNA Mutual and CUNA Broker harmless from any such deficiency and from the costs of collection thereof, including reasonable legal fees.

3.19          Prohibited Acts. Nothing in this Agreement shall be construed as giving General Agent and Broker-Dealer the right to incur any indebtedness or make contracts on behalf of CUNA Mutual or CUNA Brokerage. General Agent and Broker-Dealer are not authorized to: discharge, waive any forfeitures under or extend the time for making payment for the Products; waive or modify any terms, conditions, or limitations of any policy or contract; pay any premium or other payment on behalf of an purchaser of the Products; or enter into any court or regulatory proceeding in the name of or on behalf of CUNA Mutual or CUNA Brokerage. General Agent and Broker-Dealer hereby authorize CUNA Mutual and CUNA Brokerage to set off liabilities of General Agent or Broker-Dealer, as the case may be, to CUNA Mutual and CUNA Brokerage against any and all amounts otherwise payable to General Agent or Broker-Dealer by CUNA Mutual or CUNA Brokerage.

4.          Right of Rejection. General Agent, Broker-Dealer, CUNA Brokerage and/or CUNA Mutual each in their sole discretion, may reject any applications or payments remitted by Representatives through the General Agent or Broker-Dealer and may refund an applicant’s payments to the applicant. Likewise, CUNA Mutual and CUNA Brokerage may, at any time for any reason, reject any order from Product owner (whether transmitted by or through General Agent or Broker-Dealer or otherwise) to transfer contract value from one investment option under a Product to another. In the event such refunds are made and if General Agent or Broker-Dealer has received Compensation based on an applicant’s payment that is refunded, General Agent or Broker-Dealer shall promptly repay such Compensation to CUNA Mutual. If repayment is not promptly made, CUNA Mutual may, at its sole option, deduct any amounts due to General Agent or Broker-Dealer from future Compensation otherwise payable to General Agent or Broker-Dealer. This Section 4 shall survive termination of this Agreement.

5.          Sharing of Customer Information. The parties acknowledge and agree that it may be necessary for the parties to share nonpublic personal information and other customer information (“Customer Information”) with each other in order for each party to meet their obligations under this Agreement. With respect to the sharing, use and protection of Customer Information, the parties agree to the following:

5.1          Confidentiality and Restrictions on Redisclosure of Customer Information. Each party agrees to hold in strict confidence Customer Information obtained from another party during the term of this Agreement and any existing Customer Information received or obtained prior to this Agreement. Each party agrees not to disclose Customer Information, in any form or medium, to any affiliated or nonaffiliated person, firm or corporation except as necessary to perform services under this Agreement or as may be required by law. The parties hereto acknowledge and agree that disclosing Customer Information to effectuate, service or administer a Customer transaction shall not be considered a breach of the confidentiality obligations created hereunder. To the extent that a party contracts with a third party that obtains Customer Information in order to provide services under this Agreement, that party agrees to obtain contractual confidentiality protections to require the third party to hold Customer Information in

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strict confidence and not disclose it to any person unless required by law. Upon termination of this Agreement, General Agent and Broker-Dealer agree to maintain all Customer Information relating to the Products pursuant to Subsection 3.14 hereof. Each party agrees to comply with applicable privacy laws and regulations including, but not limited to, the Gramm-Leach-Bliley Act, Public Law 106-102 (1999) as set forth in 15 U.S.C.A. §6801, as amended and to comply with applicable changes in such laws and regulations as these occur and become effective.

5.2          Use of Customer Information. Each party agrees to use Customer Information only to fulfill its obligations hereunder and not to use it for any other purpose.

5.3          Obligation to Maintain Security Over Customer Information. Each party agrees to implement and maintain reasonable and customary security measures to safeguard Customer Information. Such measures shall include, but not be limited to, requiring employees who will have access to such information to agree to the confidentiality requirements of this Subsection.

5.4          Confidentiality Obligations Survive Termination of the Agreement. The obligations of the parties set forth in this Section 5 shall survive the termination of this Agreement.

6.           Limitations. Only CUNA Mutual or CUNA Brokerage, and no other party, shall have the authority on behalf of CUNA Mutual or CUNA Brokerage: (a) to make, alter, or discharge any of the Policies issued by CUNA Mutual; (b) to waive any forfeiture; (c) to grant, permit or extend the time for making any payments; (d) to guarantee earnings or rates; (e) to alter the forms which CUNA Mutual or CUNA Brokerage may prescribe or substitute other forms in place of those prescribed by CUNA Mutual or CUNA Brokerage; or (f) to enter into any proceeding in a court of law or before a regulatory agency in the name of or on behalf of CUNA Mutual or CUNA Brokerage.

7.           Term and Termination.

7.1          Term. This Agreement will commence on the Effective Date, and unless terminated as provided herein, will continue in force indefinitely.

7.2          Termination. Each party will have the right to terminate this Agreement: (a) without cause, effective upon delivery of thirty (30) days’ written notice thereof to the other party; (b) effective immediately upon delivery of written notice thereof to the other party, in the event that the other party is in breach of any material obligation herein; (c) effective immediately in the event that either CUNA Brokerage or Broker-Dealer shall cease to be registered broker-dealers under the 1934 Act and members of the FINRA; (d) effective immediately, if General Agent or Broker-Dealer or any Representative of General Agent or Broker-Dealer shall rebate or offer to rebate all or any part of a premium on any Products issued by CUNA Mutual in violation of applicable federal, state or local securities and insurance laws, rules or regulations; and (e) effective immediately if General Agent or Broker-Dealer or any Representative of General Agent or Broker-Dealer shall withhold any premium on any policy issued by CUNA Mutual.

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7.3          Effect of Termination. Upon termination of this Agreement, all Compensation to the General Agent and Broker-Dealer hereunder shall cease; however, General Agent and Broker-Dealer shall continue to be liable for any chargebacks or for any other amounts advanced by or otherwise due CUNA Mutual or CUNA Brokerage hereunder. General Agent and Broker-Dealer will immediately return or destroy, as instructed by CUNA Mutual and CUNA Brokerage, all of CUNA Mutual’s and CUNA Brokerage’s proprietary materials, and any copies thereof, including but not limited to, information and data relating to the Products, procedures and practices, sales and promotion materials, advertising, information and materials relating to “Systems,” as described hereinafter, and any sales and promotion materials created by General Agent or Broker-Dealer related to the Products, and any copies thereof; and General Agent and Broker-Dealer shall not use the same thereafter. General Agent and Broker-Dealer agree to retain all customer files and records pursuant to Subsection 3.15 hereof.

8.          Use of Technology.

8.1          Generally. CUNA Mutual agrees to provide General Agent and Broker-Dealer access to and the right to use those technology-based systems and materials (collectively, the “Systems”) that CUNA Mutual determines to be reasonably required for General Agent’s or Broker-Dealer’s performance of its obligations under this Agreement. Said access may be provided through software provided by CUNA Mutual directly to General Agent or Broker-Dealer and/or via the Internet. Upon delivery of any such software, CUNA Mutual shall be deemed to grant to General Agent and Broker-Dealer a non-transferable, non-exclusive, license to use the software within the scope of their responsibilities under this Agreement and for no other purpose. The access and use rights to the Systems granted hereunder shall apply only to the version of the Systems CUNA Mutual makes available to General Agent or Broker-Dealer from time to time. General Agent and Broker-Dealer shall not reproduce, display, modify or distribute the Systems or any part thereof, or use said Systems for any purpose outside the scope of General Agent’s and Broker-Dealer’s responsibilities under this Agreement. General Agent and Broker-Dealer shall not provide access to the Systems, nor to any software provided to General Agent and Broker-Dealer by CUNA Mutual, in whole or in part, to any third party including any consultant or contractor, without the express written permission of CUNA Mutual, obtained in each instance in advance. General Agent and Broker-Dealer shall hold in strict confidence, use only within the scope of their responsibilities under this Agreement, not provide access to any third parties, any passwords or other authentication or security procedures or devices provided to General Agent or Broker-Dealer to access and/or use the Systems. Upon termination of this Agreement, General Agent and Broker-Dealer shall return all copies of the software or other indicia of the Systems in its possession and retain nothing. Furthermore, General Agent and Broker-Dealer will ensure that Representatives under this Agreement will abide by the provisions of this Section 8.

8.2          Disclaimer. CUNA MUTUAL PROVIDES THE SYSTEMS, SOFTWARE AND ANY INFORMATION STORED OR PROCESSED ON SAID SYSTEMS AND SOFTWARE “AS IS,” AND EXPRESSLY DISCLAIMS ALL WARRANTIES EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. General Agent and Broker-Dealer understand and agree that the Systems and software contain trade secrets and proprietary data of CUNA

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Mutual and that the Systems and software are and shall at all times remain the sole and exclusive property of CUNA Mutual. This provision shall survive termination of this Agreement.

8.3          Limited Liability.  In no event to the maximum extent permitted by law shall CUNA Mutual be liable for any special, indirect, incidental, or consequential damage (including, without limitation, damages for loss of business, profits or income) arising out access, lack of access, use or lack of use of the Systems or software, even if CUNA Mutual has been advised of the possibility of such damages. Further, in no event to the maximum extent permitted by law shall CUNA Mutual be liable to General Agent or Broker-Dealer for damages of any kind or nature arising from the access, lack of access, use, or lack of use of the Systems or software to the extent said damages exceed the Compensation that CUNA Mutual has paid to General Agent and Broker-Dealer under this Agreement during the three (3) month period immediately preceding the occurrence of the claim.

9.           Confidentiality and Trade Secrets.  All information or materials relating to or prepared by a party to this Agreement which are obtained or reviewed in any inspection or through the course of business during the term of this Agreement, including but not limited to, CUNA Mutual’s insurance policy information, coverage plan and rates and CUNA Mutual’s or CUNA Brokerage’s policies and procedures, practices, billing information, claims information, business relationship information, statistical data, and any other know-how and information, shall be held in strict confidence by the parties hereto. No party shall permit any third party to copy, review or use the other party’s confidential or proprietary materials at any time. CUNA Mutual and CUNA Brokerage shall have sole and exclusive ownership of all right, title and interest in “Trade Secrets” and Broker-Dealer shall obtain no such rights hereunder. “Trade Secrets” shall be defined as a whole or any portion thereof of any business, sales or legal information, process, procedure, know-how that provides a party with a significant competitive advantage in the development, construction, conduct, operation, control, marketing, sale, management, administration, maintenance or servicing of insurance, or financial products. This provision shall survive the termination of this Agreement.

10.           Representations and Warranties

10.1 General Representations and Warranties. Each party represents and warrants to the others that:

(a) It is duly organized, validly existing and in good standing under the laws of the state of its organization and has all the requisite power, corporate or otherwise, to carry on its business as now being conducted and to perform its obligations as contemplated by this Agreement;

(b) It has all licenses, approvals, permits and authorizations of, and registrations with, all authorities and agencies, including non-government self-regulatory bodies, required under federal, state and local laws and regulations to enabled it to perform its obligations under this Agreement; and

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(c) The execution, delivery and performance of this Agreement have been duly and validly authorized by all necessary “corporate” action, and this Agreement constitutes the legal, valid and binding agreement of such party, enforceable against it according to its terms, except as the same may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws relating to creditors’ rights generally and general principles of equity.

10.2          Broker-Dealer Representations and Warranties. CUNA Brokerage and Broker-Dealer each represent and warrant to the other that it is registered as a broker-dealer with SEC under the 1934 Act and is a member in good standing of FINRA.

11.           Mutual Indemnification.

11.1       General Agent and Broker-Dealer Indemnification. General Agent and Broker-Dealer, jointly and severally, will indemnify, defend and hold harmless CUNA Mutual and CUNA Brokerage and their respective affiliates, officers, directors, employees and agents from and against any claim, loss, damage, expense or liability, judgment, settlements or regulatory actions, including defense costs, reasonable attorneys’ fees, penalties and fines, arising from, or in any manner relating to: (a) any breach of any covenant or obligation pursuant to this Agreement, including, but not limited to, any applicable law or regulation, or any applicable rule of any self-regulatory organization by General Agent and Broker-Dealer or their Representatives and agents; (b) any criminal, fraudulent or intentionally wrongful act or omission committed by General Agent or Broker-Dealer or their Representatives and agents in connection with the performance of General Agent’s or Broker-Dealer’s obligations hereunder; or (c) the infringement, violation or misappropriation by General Agent or Broker-Dealer or their Representatives and agents of any party’s rights with respect to any Trade Secrets, copyright, trademark, service mark, tradename or similar proprietary rights conferred by common law, state law or by any law of the United States arising out of or resulting from the performance of General Agent’s or Broker-Dealer’s obligations under this Agreement.

11.2        CUNA Mutual and CUNA Brokerage Indemnification. CUNA Mutual and CUNA Brokerage, jointly and severally, will indemnify, defend and hold harmless General Agent and Broker-Dealer and their respective affiliates, officers, directors, employees and agents from and against any claim, loss, damage, expense or liability, judgment, settlements or regulatory actions, including defense costs, reasonable attorneys’ fees, penalties and fines, arising from, or in any manner relating to: (a) any breach of any covenant or obligation pursuant to this Agreement, including, but not limited to, any applicable law or regulation, or any applicable rule of any self-regulatory organization by CUNA Mutual or CUNA Brokerage; or (b) any criminal, fraudulent or intentionally wrongful act or omission committed by CUNA Mutual or CUNA Brokerage in connection with the performance of CUNA Mutual’s or CUNA Brokerage’s obligations hereunder.

11.3        Survival. This Section 11 shall survive termination of this Agreement.

12.       General Compliance. The parties hereto agree to comply with the existing laws and rules or regulations of applicable local, state or federal regulatory authorities, including, but not limited to, FINRA, SEC, Financial Crimes Enforcement Network and the New York Stock

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Exchange, and with those which may be enacted or adopted during the term of this Agreement regulating the business conducted under this Agreement and in any jurisdiction in which the business described herein is to be transacted, and to provide information or reports relating to the respective duties and obligations hereunder pursuant to requests by any regulatory authority having jurisdiction with respect thereto.

13.       Anti-Money Laundering Compliance Program. The parties hereto acknowledge and agree that insurance agencies and securities broker-dealers are subject to certain regulations set forth under the Bank Secrecy Act (the “BSA”) and §352 of the USA PATRIOT Act (the “PATRIOT Act”) related to adopting and implementing an anti-money laundering compliance program (“AML Program”). Each party hereto represents and warrants that it has effectively implemented a written AML Program. General Agent and Broker-Dealer each hereby represents and warrants that its AML program includes, at a minimum: a) incorporating policies, procedures and internal controls reasonably designed to assure compliance with BSA and the PATRIOT Act; b) designating a compliance officer responsible for day-to-day compliance with the BSA and the AML Program; c) providing education and/or training of Representatives and other appropriate personnel concerning their responsibilities under the AML Program, including training in the detection of suspicious transactions; and d) providing for independent review to monitor and maintain an adequate AML Program. The parties agree that CUNA Mutual and CUNA Brokerage have the right, upon reasonable request, to examine the description of the training provided to Representatives to ensure that the AML Program of General Agent and/or Broker-Dealer provides adequate training for Representatives. In the event General Agent and/or Broker-Dealer or Representatives become aware of circumstances related to a customer that may be suspicious, General Agent, Broker-Dealer or Representative, as the case may be, agrees to promptly notify the Anti-Money Laundering Officer at CUNA Mutual regarding such suspicious activity. Furthermore, the parties represent and warrant that each has adopted and will continue to execute a customer identification program (the “CIP”) meeting the requirements under the PATRIOT Act. The parties agree that CUNA Mutual and CUNA Brokerage have the right, upon reasonable request, to examine the description of the CIP that General Agent and/or Broker-Dealer has adopted and implemented. The parties agree that CUNA Mutual and CUNA Brokerage may require an annual certification relating to General Agent and/or Broker-Dealer’s AML and CIP programs.

14.       Notices. All notices, requests, demands and other communications required or permitted under this Agreement shall be given in writing and shall be deemed to be given upon receipt of any of the following delivery methods: (a) personally delivered; or (b) sent by telecopier, facsimile transmission or other electronic transmission; or (c) sent by United States certified or registered mail, postage prepaid, return receipt requested; or (d) sent by private overnight courier service. The respective addresses to be used for all notices, requests, demands or communications are as follows:

CMFG Life Insurance Company

Attn: Annuity Product Management

2000 Heritage Way

Waverly, IA 50677

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CUNA Brokerage Services, Inc.

Attn: Annuity Product Management

2000 Heritage Way

Waverly, IA 50677

Broker-Dealer:

General Agent:

15.       Independent Contractors. The relationship between the parties hereto is an independent relationship and each party has sole responsibility and authority for the conduct of its own business. General Agent and Broker-Dealer and their Representatives and their agents are independent contractors with respect to CUNA Mutual and CUNA Brokerage. No party hereto has the right to bind the other party in any way.

16.       Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Wisconsin.

17.       Waiver. A waiver by any party of any terms and conditions of this Agreement in any one instance shall not be deemed or construed to be a waiver of any such term or condition for the future, or of any subsequent breach thereof, nor shall it be deemed a waiver of performance of any obligation hereunder.

18.       Severability. If any portion or provision of this Agreement is held to be invalid or unenforceable, the remainder of this Agreement shall continue in full force and effect.

19.       Assignment. This Agreement shall be binding on and shall inure to the benefit of the parties hereto and their respective successors and assigns; and no party may assign rights or obligations under this Agreement without the prior written consent of the other party.

20.       Headings. The headings in this Agreement are solely for convenience of reference and shall not be given any effect in the construction or interpretation of this Agreement.

21.       Amendment. CUNA Mutual and CUNA Brokerage reserve the right to amend this Agreement at any time, and the submission of an application by General Agent or Broker-Dealer after notice of any such amendment has been sent to General Agent and Broker-Dealer shall constitute that General Agent and Broker-Dealer are in agreement to any such amendment.

22.       Entire Agreement. This Agreement and any attachments hereto constitute the entire understanding of the parties hereto relating to the subject matter hereof and supersedes in its entirety all prior agreements between CUNA Mutual and CUNA Brokerage and General Agent

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or Broker-Dealer, if any, all prior and collateral agreements, understandings, statements and negotiations of the parties relating to such subject matter.

23.       Counterparts. This Agreement may be executed in counterparts and all documents so executed shall constitute one agreement binding on the parties hereto.

[The remainder of this page is intentionally left blank.
Signatures appear on the following page.]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first set forth above.

CMFG Life Insurance Company

Name:

Title:

By:

MEMBERS Life Insurance Company

Name:

Title:

By:

CUNA Brokerage Services, Inc.

Name:

Title:

By:

Broker-Dealer

Name:

Title:

By:

General Agent

Name:

Title:

By:

NOTE: Please return two signed copies of this Agreement to:

CMFG Life Insurance Company
Attn: Julie Miller, HW PROD
2000 Heritage Way
Waverly, IA 50677

Upon acceptance, one countersigned copy will be returned to General Agent/Broker-Dealer for its files.

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Exhibit A

SELLING AND SERVICES AGREEMENT
FOR
INSURANCE AND ANNUITY (FIXED AND VARIABLE) PRODUCTS

GENERAL LETTER OF RECOMMENDATION

General Agent and Broker-Dealer hereby certify to CUNA Mutual that all the following requirements will be fulfilled in conjunction with the submission by General Agent or Broker-Dealer of licensing/appointment papers for all applicants as agents of CUNA Mutual. General Agent or Broker-Dealer will, upon request, forward proof of compliance with same to CUNA Mutual in a timely manner.

1.	We have made a thorough and diligent inquiry and investigation relative to each applicant’s identity, residence, business reputation, and experience and declare that each applicant is personally known to us, has been examined by us, is known to be of good moral character, has a good business reputation, is reliable, is financially responsible and is worthy of a license and appointment as an agent of CUNA Mutual. This inquiry and background investigation has included a credit and criminal check on each applicant, which will be made available to CUNA Mutual within twenty-four (24) hours, upon written request. Based upon our investigation, we vouch and certify that each individual is not a “prohibited person” per 18 U.S.C. 1033 and is trustworthy, competent and qualified to act as an agent for CUNA Mutual to hold himself/herself out in good faith to the general public.
2.	We have on file appropriate state insurance department licensing forms or a Form U-4 which was completed by each applicant. We have fulfilled all the necessary investigative requirements for the registration of each applicant as a registered representative through our FINRA member firm, and each applicant is presently registered as a FINRA registered representative. The above information in our files indicates no fact or condition which would disqualify the applicant from receiving a license or appointment and all the findings of all investigative information is favorable.
3.	We certify that all educational requirements have been met for the specific state each applicant is licensed in, and that all such persons have fulfilled the appropriate examination, education and training requirements as of the date the appointment takes effect.
4.	We certify that each applicant will receive close and adequate supervision, and that we will make inspection when needed of any or all risks written by these applicants, to the end that the insurance interest of the public will be properly protected.
5.	We will not permit any applicant to transact insurance as an agent until duly licensed therefor and appointed by CUNA Mutual. No applicants have been given a contract or furnished supplies, nor have any applicants been permitted to write, solicit business, or act as an agent in any capacity, and they will not be so permitted until the certificate of authority or license applied for is received.

19

PRODUCTS AND COMPENSATION SCHEDULE

This Products and Compensation Schedule (this “Schedule”) is incorporated into the Selling and Services Agreement (the “Agreement”) as of the Effective Date of the Agreement. CUNA Mutual agrees to compensate General Agent and Broker-Dealer, as appropriate, under the Agreement as set forth below. Notwithstanding any provisions in the Agreement to the contrary, CUNA Mutual reserves the right to discontinue the availability of any of the Products or modify the Compensation at any time, subject to thirty (30) days written notice. Subject to the provisions of the Agreement, General Agent and Broker-Dealer shall be entitled to receive the Compensation for the Products listed in this Schedule. Capitalized terms in this Schedule and not otherwise defined herein will have the meanings set forth in the Agreement.

For each product sale or transaction the following rules apply:

• For proprietary insurance products, First Year and Renewal Commission are expressed as a percentage of premiums by year. Note that for proprietary life insurance products, First Year Commission is calculated based on net annualized first year premium, and Renewal Commission is calculated as a percentage of renewal premium paid by the purchaser. For annuity products, First Year Commission is calculated as a percentage of earned premiums, and Renewal Commission is calculated as a percentage of trailers. A trailer is defined as the annuity contract account value at the end of the annuity contract anniversary.

• For the Single Premium Immediate Annuity, commission charge backs will be made when death of the client occurs prior to the income payment start date. The charge back will be 100% of the commission if death of the client occurred in the first six months after issue, or 50% of the commission if death of the client occurred in months seven through twelve after issue.

• For proprietary single life and joint life income options, First Year Commission is expressed as a percentage of the amount applied to the income option on the contract. First Year Commission is calculated for the service representative at the time proceeds are applied to:

a)	All variable single life and joint life income options
b)	All fixed non-dividend based single life and joint life income options

• Income option trailers are expressed as a percent of the reserve held by CUNA Mutual on the contract and are paid once per year in January to the representative assigned for service as of the prior year-end calculation date on contracts in force for all fixed period income options.

• In addition, several special Compensation rules apply to the Products sold as part of this Agreement:

1.	CUNA Mutual has the right to define and determine compensation on transfers, exchanges, or replacements.
2.	CUNA Mutual reserves the right to refund premium paid or principal invested on a policy if such refund is justified by reason of rescission or cancellation for justifiable reason. In this situation, compensation will be adjusted for any refunded premium or investment.
3.	For proprietary insurance products, First Year Commission is credited when the policy is issued and the premium is fully processed by CUNA Mutual, and Renewal Commission is credited when the premium is received and fully processed by CUNA Mutual.
4.	Increases to premium level and specified amount may result in compensation being credited to another representative. In addition, changes in service assignments or in a sales and service agreement may result in compensation being credited to another representative.
5.	The minimum disbursed commissions check amount will be $50. Any payable amounts below the minimum in a given period will be held over and disbursed in a subsequent period.
6.	With respect to annuity products, CUNA Mutual reserves the right to reverse compensation upon the death of the owner or annuitant within the first year after issuance of the policy.

20

SELLING AND SERVICES AGREEMENT
PRODUCTS AND COMPENSATION SCHEDULE

	COMMISSION RATE
PRODUCT	YEAR	FIRST YEAR	RENEWAL
LIFE INSURANCE
MEMBERS® Whole Life Primary Protection Plan:
% of premium	1	96.00%
% of premium	2-3		10.00%
% of premium	4-10		5.00%
TERM INSURANCE
MEMBERS® Elite Protection Term Series:
Level 10, 15
% of premium	1	80.00%
% of premium	2-10		2.00%
Level 20
% of premium	1	92.00%
% of premium	2-10		2.00%
Level 30
% of premium	1	98.00%
% of premium	2-10		2.00%
FIXED ANNUITY
MEMBERS® Select Fixed Annuity II:
Under $250,000
% of premium; issue ages 0-75	1	4.00%
% of premium; issue ages 76-80	1	3.10%
% of premium; issue ages 81-90	1	2.20%
$250,000 and above
% of premium; issue ages 0-75	1	3.35%
% of premium; issue ages 76-80	1	2.65%
% of premium; issue ages 81-90	1	1.85%

21

SELLING AND SERVICES AGREEMENT
PRODUCTS AND COMPENSATION SCHEDULE

	COMMISSION RATE
PRODUCT	YEAR	FIRST YEAR	RENEWAL
MEMBERS® Focus Fixed Annuity:
Option 1 - Under $500,000
4 Yr Rate Guarantee - % of premium; issue ages 0-75	1	2.00%
4 Yr Rate Guarantee - % of premium; issue ages 76-90	1	1.40%
5 Yr Rate Guarantee - % of premium; issue ages 0-75	1	2.50%
5 Yr Rate Guarantee - % of premium; issue ages 76-90	1	1.75%
6 Yr Rate Guarantee - % of premium; issue ages 0-75	1	3.00%
6 Yr Rate Guarantee - % of premium; issue ages 76-90	1	2.10%
Option 1 - $500,000 - $999,999
4 Yr Rate Guarantee - % of premium; issue ages 0-75	1	1.30%
4 Yr Rate Guarantee - % of premium; issue ages 76-90	1	0.90%
5 Yr Rate Guarantee - % of premium; issue ages 0-75	1	1.90%
5 Yr Rate Guarantee - % of premium; issue ages 76-90	1	1.35%
6 Yr Rate Guarantee - % of premium; issue ages 0-75	1	2.30%
6 Yr Rate Guarantee - % of premium; issue ages 76-90	1	1.60%
Option 1 - $1,000,000 +
4 Yr Rate Guarantee - % of premium; issue ages 0-75	1	1.05%
4 Yr Rate Guarantee - % of premium; issue ages 76-90	1	0.70%
5 Yr Rate Guarantee - % of premium; issue ages 0-75	1	1.50%
5 Yr Rate Guarantee - % of premium; issue ages 76-90	1	1.10%
6 Yr Rate Guarantee - % of premium; issue ages 0-75	1	1.85%
6 Yr Rate Guarantee - % of premium; issue ages 76-90	1	1.30%
Option 2 - Under $500,000
4 Yr Rate Guarantee - % of premium; issue ages 0-75	1	0.75%
4 Yr Rate Guarantee - % of premium; issue ages 76-90	1	0.55%
Trailer; paid qtrly, starts at the end of the 5th qtr			0.063%
5 Yr Rate Guarantee - % of premium; issue ages 0-75	1	1.25%
5 Yr Rate Guarantee - % of premium; issue ages 76-90	1	0.90%
Trailer; paid qtrly, starts at the end of the 5th qtr			0.063%
6 Yr Rate Guarantee - % of premium; issue ages 0-75	1	1.75%
6 Yr Rate Guarantee - % of premium; issue ages 76-90	1	1.25%
Trailer; paid qtrly, starts at the end of the 5th qtr			0.063%
Option 2 - $500,000-$999,999
4 Yr Rate Guarantee - % of premium; issue ages 0-75	1	0.25%
4 Yr Rate Guarantee - % of premium; issue ages 76-90	1	0.25%
Trailer; paid qtrly, starts at the end of the 5th qtr			0.063%
5 Yr Rate Guarantee - % of premium; issue ages 0-75	1	0.65%
5 Yr Rate Guarantee - % of premium; issue ages 76-90	1	0.50%
Trailer; paid qtrly, starts at the end of the 5th qtr			0.063%
6 Yr Rate Guarantee - % of premium; issue ages 0-75	1	1.00%
6 Yr Rate Guarantee - % of premium; issue ages 76-90	1	0.75%
Trailer; paid qtrly, starts at the end of the 5th qtr			0.063%
Option 2 - $1,000,000 +
4 Yr Rate Guarantee - % of premium; issue ages 0-75	1	0.20%
4 Yr Rate Guarantee - % of premium; issue ages 76-90	1	0.20%
Trailer; paid qtrly, starts at the end of the 5th qtr			0.063%
5 Yr Rate Guarantee - % of premium; issue ages 0-75	1	0.50%
5 Yr Rate Guarantee - % of premium; issue ages 76-90	1	0.40%
Trailer; paid qtrly, starts at the end of the 5th qtr			0.063%
6 Yr Rate Guarantee - % of premium; issue ages 0-75	1	0.80%
6 Yr Rate Guarantee - % of premium; issue ages 76-90	1	0.60%
Trailer; paid qtrly, starts at the end of the 5th qtr			0.063%

22

SELLING AND SERVICES AGREEMENT
PRODUCTS AND COMPENSATION SCHEDULE

	COMMISSION RATE
PRODUCT	YEAR	FIRST YEAR	RENEWAL
SINGLE PREMIUM IMMEDIATE ANNUITY
MEMBERS® SPIA:
Life Income Option
% of premium; issue ages 0-70	1	4.25%
% of premium; issue ages 71-80	1	3.40%
% of premium; issue ages 81 +	1	1.75%
Installment Option
% of premium; all ages	1	3.00%
SINGLE PREMIUM DEFERRED INDEXED ANNUITY
MEMBERS® Index Annuity – 5 Year:
Option 1 - Under $350,000
% of premium; issue ages 0-75	1	4.00%
% of premium; issue ages 76-85	1	2.60%
Option 1 - $350,000 and above
% of premium; issue ages 0-75	1	3.40%
% of premium; issue ages 76-85	1	2.20%
Option 2 - Under $350,000
% of premium; issue ages 0-75	1	3.00%
% of premium; issue ages 76-85	1	2.00%
Trailer			0.25%
Option 2 - $350,000 and above
% of premium; issue ages 0-75	1	2.40%
% of premium; issue ages 76-85	1	1.60%
Trailer			0.25%
MEMBERS® Index Annuity – 7 & 10 Year:
Option 1 - Under $350,000
% of premium; issue ages 0-75	1	5.00%
% of premium; issue ages 76-85	1	3.25%
Option 1 - $350,000 and above
% of premium; issue ages 0-75	1	4.25%
% of premium; issue ages 76-85	1	2.75%
Option 2 - Under $350,000
% of premium; issue ages 0-75	1	4.00%
% of premium; issue ages 76-85	1	2.60%
Trailer			0.25%
Option 2 - $350,000 and above
% of premium; issue ages 0-75	1	3.25%
% of premium; issue ages 76-85	1	2.10%
Trailer			0.25%
MEMBERS® Index Annuity – Re-Up Issue 5, 7 & 10 Year:
Under $350,000
% of premium; attained ages 0-75	1	0.90%
% of premium; attained ages 76-85	1	0.60%
$350,000 and above
% of premium; attained ages 0-75	1	0.75%
% of premium; attained ages 76-85	1	0.50%

23

SELLING AND SERVICES AGREEMENT
PRODUCTS AND COMPENSATION SCHEDULE

	COMMISSION RATE
PRODUCT	YEAR	FIRST YEAR	RENEWAL
MODIFIED GUARANTEED ANNUITY
MEMBERS® Zone Annuity*
5-Year:
Option 1
% of premium; issue ages 0-75	1	4.00%
	2+		0.00%
% of premium; issue Ages 76-85	1	2.60%
	2+		0.00%
Option 2
% of premium; issue ages 0-75	1	0.65%
	2-5		0.163%/qtrly
% of premium; issue Ages 76-85	1	0.65%
	2-5		0.163%/qtrly
Option 3
% of premium; issue ages 0-75	1	3.00%
	2-5		0.063%/qtrly
% of premium; issue Ages 76-85	1	2.00%
	2-5		0.063%/qtrly
7-Year and 10-Year:
Option 1
% of premium; issue ages 0-75	1	5.00%
	2+		0.00%
% of premium; issue ages 76-85	1	3.25%
	2+		0.00%
Option 2
% of premium; issue ages 0-75	1	0.65%
	2-7 or 2-10		0.163%/qtrly
% of premium; issue Ages 76-85	1	0.65%
	2-7 or 2-10		0.163%/qtrly
Option 3
% of premium; issue ages 0-75	1	4.00%
	2-7 or 2-10		0.063%/qtrly
% of premium; issue Ages 76-85	1	2.60%
	2-7 or 2-10		0.063%/qtrly
DEFERRED INCOME ANNUITY
MEMBERS® Future Income Annuity*
% of premium; issue ages 40-83	1	4.25%
	2+		0.00%

*Compensation for this product subject to 100% reversal in case of insured’s death within 182 days from issuance of contract, and 50% reversal in case of insured’s death within 183 – 365 days from issuance of contract.

24

SELLING AND SERVICES AGREEMENT
PRODUCTS AND COMPENSATION SCHEDULE

	COMMISSION RATE
PRODUCT	YEAR	FIRST YEAR	RENEWAL
VARIABLE ANNUITY
MEMBERS® Horizon B-Share:
% of premium; issue ages 21-75	1 - 5	5.00%
	6+	4.60%
% of premium; issue ages 76-85	1 - 5	3.25%
	6+	2.85%
Trailer; paid qtrly, starts at the end of the 21st qtr			0.40%
MEMBERS® Horizon C-Share:
% of premium; issue ages 21-85	1	1.25%
	2+	0.25%
Trailer; paid qtrly, starts at the end of the 5th qtr			1.00%

25

SELLING AND SERVICES AGREEMENT
PRODUCTS AND COMPENSATION SCHEDULE

	COMMISSION RATE
PRODUCT	YEAR	FIRST YEAR	RENEWAL
INCOME OPTIONS
Lifetime Payouts (MEMBERS Select Fixed Annuity, MEMBERS Select Fixed Annuity II, MEMBERS Focus Fixed Annuity, MEMBERS Index Annuity, MEMBERS Zone Annuity, MEMBERS Choice Variable Annuity, MEMBERS Variable Annuity II, MEMBERS Variable Annuity III):
% of premium; issue ages 0-70	1	0.00%
% of premium; issue ages 0-70	2	0.00%
% of premium; issue ages 0-70	3	0.90%
% of premium; issue ages 0-70	4	1.80%
% of premium; issue ages 0-70	5	2.50%
% of premium; issue ages 0-70	6	3.10%
% of premium; issue ages 0-70	7	3.70%
% of premium; issue ages 0-70	8+	4.00%
% of premium; issue ages 71-80	1	0.00%
% of premium; issue ages 71-80	2	0.00%
% of premium; issue ages 71-80	3	0.00%
% of premium; issue ages 71-80	4	0.95%
% of premium; issue ages 71-80	5	1.65%
% of premium; issue ages 71-80	6	2.25%
% of premium; issue ages 71-80	7	2.85%
% of premium; issue ages 71-80	8+	3.15%
% of premium; issue ages 81+	1	0.00%
% of premium; issue ages 81+	2	0.00%
% of premium; issue ages 81+	3	0.00%
% of premium; issue ages 81+	4	0.00%
% of premium; issue ages 81+	5	0.00%
% of premium; issue ages 81+	6	**
% of premium; issue ages 81+	7	**
% of premium; issue ages 81+	8+	**
Lifetime Payouts (all other products):
% of premium; issue ages 0-81+	1+	0.00%
Installment Payments
Fixed Period Income Options:
Trailer; paid on a calendar year basis, based on the year-end value.			0.225%

**Commission rates vary by Annuity Mortality Tables. Please call Supplemental Contracts at 1-800-356-2644 ext. 483-2334 to obtain the commission rate.

26

EX-5

Exhibit 99(5)

MEMBERS Life Insurance Company
2000 Heritage Way
Waverly, Iowa 50677

April 6, 2016

Board of Directors
MEMBERS Life Insurance Company
2000 Heritage Way
Waverly, Iowa 50677

Re: MEMBERS Life Insurance Company Offering of Flexible Premium Deferred Variable and Index Linked Annuity Contract Registration Statement on Form S-1

Dear Board of Directors:

In my capacity as the Associate General Counsel of MEMBERS Life Insurance Company, an Iowa corporation (the “Company”) and with reference to the Registration Statement on Form S-1 (File No. 333-207222) filed by the Company, as Registrant, with the Securities and Exchange Commission, on October 1, 2015, and amended by Pre-Effective Amendment on April 6, 2016 (together the “Registration Statement”), I am delivering this opinion in connection with the sale of the flexible premium deferred variable and index linked annuity contracts (the “Contracts”) issued by the Company having an aggregate offering price of up to $2,884,806,356 in accordance with the distribution agreement dated as of January 7, 2016 between the Company and CUNA Brokerage Services, Inc. (the “Distribution Agreement”). This opinion is being furnished in accordance with the requirements of Item 601(b)(5) of Regulation S-K promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

I have participated in the legal review in connection with the Registration Statement and examined such documents and such law as I have considered necessary and appropriate. I have also examined originals or copies, certified or otherwise identified to my satisfaction, of such records of the Company and such agreements, certificates and receipts of public officials, certificates of officers or other representatives of the Company and others, and such other documents as I have deemed necessary or appropriate as a basis for the opinions set forth below. In my examination, I have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all documents submitted to me as originals, the conformity to original documents of all documents submitted to me as facsimile, electronic, certified or photostatic copies, and the authenticity of the originals of such copies. In making my examination of executed documents, I have assumed that the parties thereto, other than the Company, had the power, corporate or other, to enter into and perform all obligations thereunder and have also assumed the due authorization by all requisite action, corporate or other, and the execution and delivery by such parties of such documents and the validity and binding effect thereof on such parties. As to any facts material to the opinions expressed herein that I did not independently establish or verify, I have relied upon statements and representations of officers and other representatives of the Company and others and of public officials.

My opinion set forth herein is limited to the laws of the State of Iowa and United States federal law, and I am expressing no opinion as to the effect of the laws of other jurisdictions. Insofar as the opinions expressed herein relate to matters governed by laws other than those set forth in the preceding sentence, I have assumed, without having made any independent investigation, that such laws do not affect any of the opinions set forth herein. The opinions expressed herein are based on laws in effect on the date hereof, which laws are subject to change with possible retroactive effect. This opinion is limited to the matters stated herein, and no opinion is implied or may be inferred beyond the matters expressly stated herein.

Based upon the foregoing and subject to the limitations, qualifications, exceptions and assumptions set forth herein, it is my opinion that:

1) The Company is duly organized and existing under the laws of the State of Iowa and has been duly authorized to issue the Contracts by the Commissioner of Insurance of the State of Iowa.

2) The Contracts registered by the above referenced Registration Statement have been duly authorized and, when issued pursuant to the Distribution Agreement, will be validly issued, fully paid and non-assessable and binding obligations of the Company.

I hereby consent to the filing of this opinion as an exhibit to the above referenced Registration Statement and to the use of my name under the caption “Legal Matters” in the prospectuses constituting part of the Registration Statement.

I do not admit by giving this consent that I am included in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission. This opinion is expressed as of the date hereof unless otherwise expressly stated and I disclaim any undertaking to advise you of any subsequent change in the facts stated or assumed herein or of any subsequent changes in applicable law.

Very truly yours,

/s/Ross D. Hansen

Ross D. Hansen

Associate General Counsel

EX-23

Exhibit 23(ii)

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the use in this Registration Statement on Form S-1 of our report dated March 8, 2016 relating to the financial statements of MEMBERS Life Insurance Company (which report expresses an unqualified opinion and includes an emphasis-of-matter paragraph relating to MEMBERS Life Insurance Company being a member of a controlled group of affiliated companies and as such its results may not be indicative of those of a stand-alone entity), appearing in the Prospectus, which is part of this Registration Statement.

/s/ DELOITTE & TOUCHE LLP

Chicago, Illinois
April 6, 2016

EX-24

Exhibit 99(24)

MLIC Form S-1

MEMBERS LIFE INSURANCE COMPANY

Power of Attorney

Michael F. Anderson
Director

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Brian Kaas or Ross D. Hansen, each of them (with full power to each of them to act alone), his true and lawful attorneys-in-fact and agents, with full power of substitution and re-substitution, for him and on his behalf and in his name, place and stead, in any and all capacities, to sign, execute and file this registration statement under the Securities Act of 1933, as amended, and any or all amendments (including, without limitation, post-effective amendments) to this registration statement, with all exhibits and any and all documents required to be filed with respect thereto, with the Securities and Exchange Commission or any other regulatory authority, granting unto such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing appropriate or necessary to be done in order to effectuate the same, as fully to all intents and purposes as he himself might or could do in person, hereby ratifying and confirming all that such attorneys-in-fact and agents, or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Product Name	1933 Act File Number
MEMBERS Flexible Premium Deferred Variable Annuity	333-207222

IN WITNESS WHEREOF, this 29 day of January, 2016

/s/Michael F. Anderson
	Michael F. Anderson

MLIC Form S-1

MEMBERS LIFE INSURANCE COMPANY

Power of Attorney

Michael T. Defnet
Director

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Brian Kaas or Ross D. Hansen, each of them (with full power to each of them to act alone), his true and lawful attorneys-in-fact and agents, with full power of substitution and re-substitution, for him and on his behalf and in his name, place and stead, in any and all capacities, to sign, execute and file this registration statement under the Securities Act of 1933, as amended, and any or all amendments (including, without limitation, post-effective amendments) to this registration statement, with all exhibits and any and all documents required to be filed with respect thereto, with the Securities and Exchange Commission or any other regulatory authority, granting unto such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing appropriate or necessary to be done in order to effectuate the same, as fully to all intents and purposes as he himself might or could do in person, hereby ratifying and confirming all that such attorneys-in-fact and agents, or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Product Name	1933 Act File Number
MEMBERS Flexible Premium Deferred Variable Annuity	333-207222

IN WITNESS WHEREOF, this 29 day of January, 2016

/s/Michael T. Defnet
	Michael T. Defnet

MLIC Form S-1

MEMBERS LIFE INSURANCE COMPANY

Power of Attorney

Jason A. Pisarik
Director

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Brian Kaas or Ross D. Hansen, each of them (with full power to each of them to act alone), his true and lawful attorneys-in-fact and agents, with full power of substitution and re-substitution, for him and on his behalf and in his name, place and stead, in any and all capacities, to sign, execute and file this registration statement under the Securities Act of 1933, as amended, and any or all amendments (including, without limitation, post-effective amendments) to this registration statement, with all exhibits and any and all documents required to be filed with respect thereto, with the Securities and Exchange Commission or any other regulatory authority, granting unto such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing appropriate or necessary to be done in order to effectuate the same, as fully to all intents and purposes as he himself might or could do in person, hereby ratifying and confirming all that such attorneys-in-fact and agents, or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Product Name	1933 Act File Number
MEMBERS Flexible Premium Deferred Variable Annuity	333-207222

IN WITNESS WHEREOF, this 29 day of January, 2016

/s/Jason A. Pisarik
	Jason A. Pisarik

MLIC Form S-1

MEMBERS LIFE INSURANCE COMPANY

Power of Attorney

M. Jeffrey Bosco
President/Director

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Brian Kaas or Ross D. Hansen, each of them (with full power to each of them to act alone), his true and lawful attorneys-in-fact and agents, with full power of substitution and re-substitution, for him and on his behalf and in his name, place and stead, in any and all capacities, to sign, execute and file this registration statement under the Securities Act of 1933, as amended, and any or all amendments (including, without limitation, post-effective amendments) to this registration statement, with all exhibits and any and all documents required to be filed with respect thereto, with the Securities and Exchange Commission or any other regulatory authority, granting unto such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing appropriate or necessary to be done in order to effectuate the same, as fully to all intents and purposes as he himself might or could do in person, hereby ratifying and confirming all that such attorneys-in-fact and agents, or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Product Name	1933 Act File Number
MEMBERS Flexible Premium Deferred Variable Annuity	333-207222

IN WITNESS WHEREOF, this 29 day of January, 2016

/s/M. Jeffrey Bosco
	M. Jeffrey Bosco

MLIC Form S-1

MEMBERS LIFE INSURANCE COMPANY

Power of Attorney

Brian J. Borakove
Treasurer

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Brian Kaas or Ross D. Hansen, each of them (with full power to each of them to act alone), his true and lawful attorneys-in-fact and agents, with full power of substitution and re-substitution, for him and on his behalf and in his name, place and stead, in any and all capacities, to sign, execute and file this registration statement under the Securities Act of 1933, as amended, and any or all amendments (including, without limitation, post-effective amendments) to this registration statement, with all exhibits and any and all documents required to be filed with respect thereto, with the Securities and Exchange Commission or any other regulatory authority, granting unto such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing appropriate or necessary to be done in order to effectuate the same, as fully to all intents and purposes as he himself might or could do in person, hereby ratifying and confirming all that such attorneys-in-fact and agents, or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Product Name	1933 Act File Number
MEMBERS Flexible Premium Deferred Variable Annuity	333-207222

IN WITNESS WHEREOF, this 29 day of January, 2016

/s/Brian J. Borakove
	Brian J. Borakove

MLIC Form S-1

MEMBERS LIFE INSURANCE COMPANY

Power of Attorney

Steven R. Suleski
Director

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Brian Kaas or Ross D. Hansen, each of them (with full power to each of them to act alone), his true and lawful attorneys-in-fact and agents, with full power of substitution and re-substitution, for him and on his behalf and in his name, place and stead, in any and all capacities, to sign, execute and file this registration statement under the Securities Act of 1933, as amended, and any or all amendments (including, without limitation, post-effective amendments) to this registration statement, with all exhibits and any and all documents required to be filed with respect thereto, with the Securities and Exchange Commission or any other regulatory authority, granting unto such attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing appropriate or necessary to be done in order to effectuate the same, as fully to all intents and purposes as he himself might or could do in person, hereby ratifying and confirming all that such attorneys-in-fact and agents, or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Product Name	1933 Act File Number
MEMBERS Flexible Premium Deferred Variable Annuity	333-207222

IN WITNESS WHEREOF, this 29 day of January, 2016

/s/Steven R. Suleski
	Steven R. Suleski

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2015
Document and Entity Information:
Entity Registrant Name	MEMBERS Life Insurance Co
Document Type	S-1
Document Period End Date	Dec. 31, 2015
Trading Symbol	mlic
Amendment Flag	false
Entity Central Index Key	0001562577
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	No
Entity Voluntary Filers	Yes
Entity Well-known Seasoned Issuer	Yes
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

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Balance Sheets - USD ($) $ in Thousands		Dec. 31, 2015		Dec. 31, 2014
Investments
Debt securities, available for sale, at fair value		$ 12,351	[1]	$ 13,194	[2]
Policy loans				104
Receivable for securities sold				15
Total investments		12,351		13,313
Cash and cash equivalents		17,093		5,602
Accrued investment income		134		80
Reinsurance recoverable from affiliate		24,628		25,199
Assets on deposit		947,595		349,937
Premiums receivable, net		26		28
Net deferred tax asset		682		440
Receivable from affiliate		4,518		2,765
Other assets and receivables		268		220
Federal income taxes recoverable from affiliate		516		1,797
Total assets		1,007,811		399,381
Liabilities
Claim and policy benefit reserves - life and health		21,537		22,368
Policyholder account balances		951,068		353,549
Unearned premiums		1		3
Payables to affiliates		2,480		1,292
Accounts payable and other liabilities		11,177		2,954
Total liabilities		$ 986,263		$ 380,166
Commitments and contingencies	[3]
Stockholder's equity
Common stock	[4]	$ 5,000		$ 5,000
Additional paid in capital		10,500		10,500
Accumulated Other Comprehensive Income, net of tax		(225)	[5]	222	[6]
Retained earnings (deficit)		6,273		3,493
Total stockholder's equity		21,548		19,215
Total liabilities and stockholder's equity		$ 1,007,811		$ 399,381

[1] Amortized cost - $12,698

[2] Amortized cost - $12,854

[3] Note 11.

[4] Common stock, $5 par value, authorized 1,000 shares; issued and outstanding 1,000 shares

[5] Accumulated other comprehensive income, net of tax benefit - $(122)

[6] Accumulated other comprehensive income, net of tax expense - $118

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Balance Sheets - Parenthetical - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Balance Sheets
Common Stock, Par Value	$ 5	$ 5
Common Stock, Shares Authorized	1,000	1,000
Common Stock, Shares Issued	1,000	1,000
Common Stock, Shares Outstanding	1,000	1,000
Amortized cost of debt securities available for sale	$ 12,698	$ 12,854
Tax expense (benefit) in Accumulated Other Comprehensive Income	$ (122)	$ 118

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Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Revenues
Life and health premiums, net		$ (1,175)		$ 127		$ 139
Contract charges		18		24		46
Net investment income		366		278		176
Net realized investment gains		117
Other income		5,336				293
Total revenues		4,662		429		654
Benefits and expenses
Life and health insurance claims and benefits, net		(1,204)		112		179
Interest credited to policyholder account balances		4		8		9
Operating and other expenses	[1]	1,633		137		86
Total benefits and expenses		433		257		274
Income (loss) before income taxes		4,229		172		380
Income tax expense (benefit)		1,449		11		249
Net Income (Loss)		2,780		161		131
Change in unrealized gains (losses), net of tax expense (benefit)		(437)	[2]	(47)	[3]	(154)	[4]
Reclassification adjustment for (gains) included in net income, net of tax expense (benefit)	[5]	(10)
Other Comprehensive Income (Loss)		(447)		(47)		(154)
Total Comprehensive Income (Loss)		$ 2,333		$ 114		$ (23)

[1] Note 6.

[2] Net of tax expense (benefit) - ($235)

[3] Net of tax expense (benefit) - ($25).

[4] Net of tax expense (benefit) - ($105).

[5] Net of tax (benefit) - ($5).

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Statements of Operations and Comprehensive Income (Loss) - Parenthetical - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statements of Operations and Comprehensive Income (Loss)
Tax expense (benefit) portion of change in unrealized gains (losses)	$ (235)	$ (25)	$ (105)
Tax expense (benefit) portion of Reclassification Adjustment for losses (gains) included in net income	$ (5)

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Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Retained Earnings (Deficit)	Total
Balance at Dec. 31, 2012	$ 5,000	$ 10,500	$ 423	$ 3,201	$ 19,124
Net Income (Loss)				131	131
Other Comprehensive Income (Loss)			(154)		(154)
Balance at Dec. 31, 2013	5,000	10,500	269	3,332	19,101
Net Income (Loss)				161	161
Other Comprehensive Income (Loss)			(47)		(47)
Balance at Dec. 31, 2014	5,000	10,500	222	3,493	19,215
Net Income (Loss)				2,780	2,780
Other Comprehensive Income (Loss)			(447)		(447)
Balance at Dec. 31, 2015	$ 5,000	$ 10,500	$ (225)	$ 6,273	$ 21,548

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Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net Income (Loss)	$ 2,780	$ 161	$ 131
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Policyholder charges on investment type contracts	(18)	(24)	(46)
Net realized investment gains	(117)
Interest credited to policyholder account balances	4	8	9
Deferred income charges	(2)	197	675
Amortization of bond premium and discount	61	75	86
Amortization and write off of deferred charges	26	26	21
Increase (Decrease) in Accrued investment income	(54)	(16)	9
Increase (Decrease) in Reinsurance recoverable	273	326	611
Increase (Decrease) in Premiums receivable	2	4	2
Increase (Decrease) in Other assets and receivables	(1,828)	356	(1,079)
Increase (Decrease) in Federal income taxes recoverable from affiliate	1,281	87	1,892
Increase (Decrease) in Insurance reserves	(831)	(828)	(916)
Increase (Decrease) in Unearned premiums	(2)		(1)
Increase (Decrease) in other liabilities	9,412	955	2,892
Net cash provided by operating activities	10,987	1,327	4,286
Cash flows from investing activities:
Purchases of Debt Securities	(8,760)	(7,535)
Proceeds from sale or maturity of Debt Securities	8,987	750	1,665
Net payments received on policy loans	104	6
Net cash provided by (used in) investing activities	331	(6,779)	1,665
Cash flows from financing activities:
Policyholder account deposits	596,817	252,273	89,726
Policyholder account withdrawals	(12,250)	(3,581)	(930)
Assets on deposit - deposits	(596,492)	(252,273)	(89,382)
Assets on deposit - withdrawals	12,098	3,531	813
Change in bank overdrafts			1
Net cash provided by (used in) financing activities	173	(51)	228
Change in cash and cash equivalents	11,491	(5,503)	6,179
Cash and cash equivalents at beginning of period	5,602	11,105	4,926
Cash and cash equivalents at end of period	17,093	5,602	11,105
Supplemental disclosure of cash information:
Cash received during the period for income taxes	$ (170)	$ 273	$ 2,318

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Nature of Business

12 Months Ended

Dec. 31, 2015

Notes

Nature of Business

Note 1:  Nature of Business

MEMBERS Life Insurance Company (“MLIC” or the “Company”) is a life and health insurance stock company organized under the laws of Iowa and a wholly-owned subsidiary of CUNA Mutual Investment Corporation (“CMIC”). CMIC is organized under the laws of Wisconsin and is a wholly-owned subsidiary of CMFG Life Insurance Company (“CMFG Life”), an Iowa life insurance company. CMFG Life and its affiliated companies primarily sell insurance and other products to credit unions and their members.  The Company’s ultimate parent is CUNA Mutual Holding Company (“CMHC”), a mutual insurance holding company organized under the laws of Iowa.  In 2013, MLIC began selling single premium deferred annuity contracts to credit union members through face-to-face and direct response distribution channels.  Prior to 2013, MLIC did not actively market new business; it primarily serviced existing blocks of individual and group life policies.  See Note 7, Reinsurance, for information on the Company’s reinsurance and ceding agreements.

MLIC is authorized to sell life, health and annuity policies in all states in the U.S. and the District of Columbia, except New York.  The following table identifies states with premiums greater than 5% of total direct premium and states with deposits on annuity contracts greater than 5% of total deposits:

				Deposits on
	Direct Life and Health Premium			Annuity Contracts
	2015	2014	2013	2015	2014	2013
Michigan	63%	63%	64%	8%	12%	11%
Texas	23%	22%	22%	7%	8%	--
California	5%	5%	5%	8%	--	--
Indiana	--	--	--	6%	6%	6%
Iowa	--	--	--	5%	8%	17%
Wisconsin	--	--	--	5%	7%	7%
Pennsylvania	--	--	--	5%	6%	5%
Florida	--	--	--	5%	5%	--
Washington	--	--	--	5%	--	--
Rhode Island	--	--	--	--	8%	6%
Utah	--	--	--	--	--	5%

*Less than 5%.

No other state represents more than 5% of the Company’s premiums or deposits for any year in the three years ended December 31, 2015.

CMFG Life provides significant services required in the conduct of the Company’s operations. Management believes allocations of expenses are reasonable, but the results of the Company’s operations may have materially differed from the results reflected in the accompanying financial statements if the Company did not have this relationship.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Notes

Summary of Significant Accounting Policies

Note 2:  Summary of Significant Accounting Policies

Basis of Presentation

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates and in some cases the difference could be material.  Investment valuations, embedded derivatives, deferred tax asset valuation reserves, and claim and policyholder benefit reserves are most affected by the use of estimates and assumptions.

Segment Reporting

The Company is currently managed as two reportable business segments, (1) life and health and (2) annuities.  See Note 7, Reinsurance, for information on the Company’s reinsurance and ceding agreements, which impact the financial statement presentation of these segments.  

Investments

Debt securities: Investments in debt securities are classified as available for sale and are carried at fair value.  A debt security is considered other-than-temporarily impaired when the fair value is less than the amortized cost basis and its value is not expected to recover through the Company's anticipated holding period of the security.  If a credit loss exists, but the Company does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, it is required to bifurcate the impairment into the loss that is attributable to credit and non-credit related components.  The credit portion of the other-than-temporary impairment (“OTTI”) is the difference between the present value of the expected future cash flows and amortized cost.  Only the estimated credit loss amount is recognized in net realized investment gains, with the remainder of the loss amount recognized in other comprehensive loss.  If the Company intends to sell or it is more likely than not that the Company will be required to sell before anticipated recovery in value, the Company records a realized loss equal to the difference between the amortized cost and fair value. The fair value of the other-than-temporarily impaired security becomes its new cost basis.  In determining whether an unrealized loss is expected to be other than temporary, the Company considers, among other factors, any plans to sell the security, the severity of impairment, financial position of the issuer, recent events affecting the issuer’s business and industry sector, credit ratings, and the intent and ability of the Company to hold the investment until the fair value has recovered at least its cost basis. 

Unrealized gains and losses on investments in debt securities, net of deferred federal income taxes, are included in accumulated other comprehensive income as a separate component of stockholder’s equity.

Policy loans:  Policy loans are reported at their unpaid principal balance.  Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrender value of the underlying insurance policies.  Any unpaid principal or interest on the loan is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy.  Policy loans allocated to CMFG Life as payment related to the 2012 reinsurance agreement and the 2015 amendment (See Note 7) are $1,882 and $1,975 at December 31, 2015 and 2014, respectively. As a result of the amendment, all policy loans are allocated to CMFG Life as of December 31, 2015.

Net investment income:  Interest income related to mortgage-backed and other structured securities is recognized on an accrual basis using a constant effective yield method, based on anticipated prepayments and the estimated economic life of the securities.  When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments and such adjustments are reflected in net investment income.  Prepayment assumptions for loan backed bonds and structured securities are based on industry averages or internal estimates.  Interest income related to non-structured securities is recognized on an accrual basis using a constant effective yield method. Discounts and premiums on debt securities are amortized over the estimated lives of the respective securities on an effective yield basis. 

Net realized gains and losses:  Realized gains and losses on the sale of investments are determined on a specific identification basis and are recorded on the trade date. 

Derivative Financial Instruments

The Company issues single premium deferred annuity contracts that contain embedded derivatives.  Derivatives embedded within non-derivative host contracts are separated from the host instrument when the embedded derivative is not clearly and closely related to the host instrument.  Such embedded derivatives are recorded at fair value, and they are reported as part of assets on deposit and policyholder account balances in the balance sheets, with the change in the value being recorded in net realized investment gains.  See Note 3, Investments-Embedded Derivatives for additional information.

Changes in the fair value of the embedded derivative in assets on deposit offset changes in the fair value of the embedded derivative in policyholder account balances; both of these changes are included in net realized investment gains. Accretion of the interest on assets on deposit offsets accretion of the interest on the host contract; both of these amounts are included in interest credited on policyholder account balances.

Cash and Cash Equivalents

Cash and cash equivalents include unrestricted deposits in financial institutions with maturities of 90 days or less.  The Company recognizes a liability in accounts payable and other liabilities for the amount of checks issued in excess of its current cash balance. The change in this overdraft amount is recognized as a financing activity in the Company’s statement of cash flows.

Recognition of Insurance Revenue and Related Benefits

Term-life and whole-life insurance premiums are recognized as premium income when due. Policy benefits for these products are recognized in relation to the premiums so as to result in the recognition of profits over the expected lives of the policies and contracts. 

Amounts collected on policies not subject to significant mortality or longevity risk, such as the Company’s single premium deferred annuity contracts, are considered investment contracts and are recorded as increases in policyholder account balances.  Revenues from investment contracts principally consist of net investment income and contract charges such as expense and surrender charges.  Expenses for investment contracts consist of interest credited to contracts, benefits incurred in excess of related policyholder account balances and policy maintenance costs.  Because the Company has entered into an agreement with CMFG Life to cede 100% of this business, these revenues and expenses are ceded and do not impact the statement of operations and comprehensive income (loss). See Note 7, Reinsurance for additional information on this agreement.

Other Income / Operating and Other Expenses

Other income in 2015 and 2013 relates to legal settlements received on structured security investments that had previously been sold. Operating and other expenses in 2015 include legal expenses related to the settlement received.

Deferred Policy Acquisition Costs

The costs of acquiring insurance business that are directly related to the successful acquisition of new and renewal business are deferred to the extent that such costs are expected to be recoverable from future profits.  Such costs principally include commissions and sales costs, direct response advertising costs, premium taxes, and certain policy issuance and underwriting costs. Costs deferred on term-life and whole-life insurance products, deferred policy acquisition costs (“DAC”), are amortized in proportion to the ratio of the annual premium to the total anticipated premiums generated.  Due to the age of the existing block of policies, all DAC has been fully amortized as of December 31, 2015 and 2014 and there was no amortization expense in 2015, 2014 or 2013.  Acquisition costs on the Company’s single premium deferred annuity contracts are reimbursed through a ceding commission by CMFG Life, which assumes all deferrable costs as part of its agreement to assume 100% of this business from the Company. See Note 7, Reinsurance for additional information on this agreement.

Insurance Reserves

Life and health claim and policy benefit reserves consist principally of future policy benefit reserves and reserves for estimates of future payments on incurred claims reported but not yet paid and unreported incurred claims.  Estimates for future payments on incurred claims are developed using actuarial principles and assumptions based on past experience adjusted for current trends.  Any change in the probable ultimate liabilities is reflected in net income in the period in which the change is determined.

When actual experience indicates that existing contract liabilities, together with the present value of future gross premiums will not be sufficient to recover the present value of future benefits or recover unamortized deferred acquisition costs, a premium deficiency will be recognized by either a reduction in unamortized acquisition costs or an increase in the liability for future benefits.  There was no premium deficiency in 2015, 2014 or 2013.

Policyholder Account Balances

The Company recognizes a liability at the stated account value for policyholder deposits that are not subject to significant policyholder mortality or longevity risk and for universal life-type policies.  The account value equals the sum of the original deposit and accumulated interest, less any withdrawals and expense charges.  The average credited rate was 4.5% in 2015, 2014 and 2013.  The future minimum guaranteed interest rate during the life of the contracts is 4.5%.

The single premium deferred annuities, which are included in policyholder account balances, have two risk control accounts, referred to as the Secure and Growth Accounts; the Secure Account has a yearly credited interest rate floor of 0% and the yearly Growth Account floor is -10%.  The Secure and Growth Accounts both have credited interest rate caps that vary with issuance.  Interest is credited at the end of each contract year during the selected index term based on the allocation between risk control accounts and the performance of an external index during that contract year. Both the Growth Account and Secure Account are based on the S&P 500 Index.  At the end of the initial index term, only the Secure Account will be available as an option to the policyholder.  The average annualized credited rate was 1.65%, 1.10% and .72% in 2015, 2014 and 2013, respectively.

Accounts Payable and Other Liabilities

The Company issues annuity contracts on the 10^th and 25^th of each month.   The Company recognizes a liability on contracts for which it has received cash, but has not issued a contract.

Reinsurance

Reinsurance premiums, claims and benefits, commission expense reimbursements, and reserves related to reinsured business ceded are accounted for on a basis consistent with the accounting for the underlying direct policies that have been ceded and the terms of the reinsurance contracts.  Premiums and insurance claims and benefits in the statements of operations and comprehensive income (loss) are reported net of the amounts ceded to other companies under such reinsurance contracts.  Ceded insurance reserves and ceded benefits paid are included in reinsurance recoverables along with certain ceded policyholder account balances, which include mortality risk.  A prepaid reinsurance asset is also recorded for the portion of unearned premiums related to ceded policies. 

Assets on Deposit

Assets on deposit represent the amount of policyholder account balances related to the single premium deferred annuity contracts (investment-type contracts) that are ceded to CMFG Life.  These investment-type contracts are accounted for on a basis consistent with the accounting for the underlying contracts.  Since the related product is an investment-type contract, the Company accounts for the reinsurance of these contracts using the deposit method of accounting consistent with the terms of the ceding agreement.  The related contract charges and interest credited to policyholder account balances in the statements of operations and comprehensive income (loss) are reported net of the amounts ceded under the agreement. See Note 7 for a further discussion of the ceding agreement.

Income Taxes

The Company recognizes taxes payable or refundable and deferred taxes for the tax consequences of differences between the financial reporting and tax basis of assets and liabilities.  Deferred tax assets and liabilities are measured by applying the enacted tax rates to the difference between the financial statement and tax basis of assets and liabilities.  The Company records current tax benefits and deferred tax assets utilizing a benefits-for-loss approach.  Under this approach, current benefits are realized and deferred tax assets are considered realizable by the Company when realized or realizable by the consolidated group of which the Company is a member even if the benefits would not be realized on a stand-alone basis.  The Company records a valuation allowance for deferred tax assets if it determines it is more likely than not that the asset will not be realized by the consolidated group.  Deferred income tax assets can be realized through future earnings, including, but not limited to, the generation of future income, reversal of existing temporary differences and available tax planning strategies.

The Company is subject to tax-related audits.  These audits may result in additional tax assets or liabilities.  In establishing tax liabilities, the Company determines whether a tax position is more likely than not to be sustained under examination by the appropriate taxing authority. Tax positions that do not meet the more likely than not standard are not recognized. Tax positions that meet this standard are recognized in the financial statements within net deferred tax assets or liabilities or federal income taxes recoverable or payable.

Accounting Standards Updates Pending Adoption

In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard, Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The new standard will supersede nearly all existing revenue recognition guidance by establishing a five step, principles-based process; however, it will not impact the accounting for insurance contracts, leases, financial instruments, and guarantees. For those contracts that are impacted by the new guidance, ASU 2014-09 will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In July 2015, the FASB approved the deferral of ASU 2014-09 for one year and it is effective for annual and interim reporting periods beginning in 2018 for public business entities and 2019 for others. Early adoption in 2017 will be permitted. The Company is currently evaluating the impact of ASU 2014-09 on its financial statements.

In January 2016, the FASB issued Accounting Standard Update (ASU) No. 2016-01, Recognition and Measurement of Financial Assets and Liabilities (“ASU 2016-01”), effective in 2018. The new standard will require equity investments to be measured at fair value with changes in fair value recognized in net income. Other provisions in ASU 2016-01 do not appear to be materially applicable to the Company. The Company is currently evaluating the potential impact of ASU 2016-01 on its financial statements.

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Investments

12 Months Ended

Dec. 31, 2015

Notes

Investments

Note 3:  Investments

Debt Securities

The amortized cost, gross unrealized gains and losses, and estimated fair values, as reported on the balance sheet, of debt securities at December 31, 2015 are as follows:

	Amortized	Gross Unrealized		Estimated
	Cost	Gains	Losses	Fair Value
U.S. government and agencies	$10,333	$26	$(546)	$9,813
Mortgage-backed securities:
Residential mortgage-backed	2,365	173	-	2,538
Total debt securities	$12,698	$199	$(546)	$12,351

The amortized cost, gross unrealized gains and losses, and estimated fair values, as reported on the balance sheet, of debt securities at December 31, 2014 are as follows:

	Amortized	Gross Unrealized		Estimated
	Cost	Gains	Losses	Fair Value
U.S. government and agencies	$9,888	$103	$(4)	$9,987
Mortgage-backed securities:
Residential mortgage-backed	2,966	241	-	3,207
Total debt securities	$12,854	$344	$(4)	$13,194

No investments were non-income producing in 2015 or 2014.

The amortized cost and estimated fair values of investments in debt securities at December 31, 2015, by contractual maturity, are shown below.  Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.   Because of the potential for prepayment on mortgage-backed securities, such securities have not been displayed in the table below by contractual maturity.

	Amortized	Estimated
	Cost	Fair Value
Due in one year or less	$ 1,261	$ 1,280
Due after one year through five years	315	322
Due after ten years	8,757	8,211
Mortgage-backed securities:
Residential mortgage-backed	2,365	2,538
Total debt securities	$ 12,698	$ 12,351

Net Investment Income

Sources of investment income for the years ended December 31 are summarized as follows:

	2015	2014	2013
Gross investment income:
Debt securities	$389	$304	$275
Policy loans	5	8	8
Other investments	-	-	6
Total gross investment income	394	312	289
Investment expenses	(28)	(34)	(113)
Net investment income	$366	$278	$176

Net Realized Investment Gains

Net realized investment gains for the years ended December 31 are summarized as follows:

	2015	2014	2013
Debt securities
Gross gains on sales	$117	$-	$-
Net realized investment gains	$117	$-	$-

Proceeds from the sale of debt securities was $8,389 in 2015, there were no sales or transfers of debt securities in 2014 or 2013 that resulted in a realized investment gain or loss.

Other-Than-Temporary Investment Impairments

Investment securities are reviewed for OTTI on an ongoing basis.  The Company creates a watchlist of securities based largely on the fair value of an investment security relative to its cost basis.  When the fair value drops below the Company’s cost, the Company monitors the security for OTTI.  The determination of OTTI requires significant judgment on the part of the Company and depends on several factors, including, but not limited to:

·         The existence of any plans to sell the investment security.

·         The extent to which fair value is less than book value.

·         The underlying reason for the decline in fair value (credit concerns, interest rates, etc.).

·         The financial condition and near term prospects of the issuer/borrower, including the ability to meet contractual obligations, relevant industry trends and conditions.

·         The Company’s intent and ability to retain the investment for a period of time sufficient to allow for an anticipated recovery in fair value.

·         The Company’s ability to recover all amounts due according to the contractual terms of the agreements. 

·         The Company’s collateral position in the case of bankruptcy or restructuring.

A debt security is considered other-than-temporarily impaired when the fair value is less than the amortized cost basis and its value is not expected to recover through the Company's anticipated holding period of the security.  If a credit loss exists, but the Company does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, it is required to bifurcate the impairment into the loss that is attributable to credit and non-credit related risk.  The credit portion of the OTTI is the difference between the present value of the expected future cash flows and amortized cost.  Only the estimated credit loss amount is recognized in earnings, with the remainder of the loss amount recognized in other comprehensive loss.  If the Company intends to sell, at the time this determination is made, the Company records a realized loss equal to the difference between the amortized cost and fair value. The fair value of the other-than-temporarily impaired security becomes its new cost basis.  In determining whether an unrealized loss is expected to be other than temporary, the Company considers, among other factors, any plans to sell the security, the severity of impairment, financial position of the issuer, recent events affecting the issuer’s business and industry sector, credit ratings, and the ability of the Company to hold the investment until the fair value has recovered at least its cost basis. 

For securitized debt securities, the Company considers factors including, commercial and residential property changes in value that vary by property type and location and average cumulative collateral loss rates that vary by vintage year. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer and/or underlying collateral.

For certain securitized financial assets with contractual cash flows, the Company is required to periodically update its best estimate of cash flows over the life of the security.  If the fair value of a securitized financial asset is less than its cost or amortized cost and there has been a decrease in the present value of the estimated cash flows since the last revised estimate, considering both timing and amount, an OTTI charge is recognized.  The Company also considers its intent to retain a temporarily impaired security until recovery.  Estimating future cash flows involves judgment and includes both quantitative and qualitative factors.  Such determinations incorporate various information and assessments regarding the future performance of the underlying collateral.  In addition, projections of expected future cash flows may change based upon new information regarding the performance of the underlying collateral. 

Management has completed a review for other-than-temporarily impaired securities at December 31, 2015, 2014 and 2013 and recorded no OTTI.  As a result of the subjective nature of these estimates, however, provisions may subsequently be determined to be necessary as new facts emerge and a greater understanding of economic trends develops.  Consistent with the Company’s practices, OTTI will be recorded as appropriate and as determined by the Company’s regular monitoring procedures of additional facts. 

Net Unrealized Investment Gains (Losses)

The components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) at December 31 were as follows:

	2015	2014	2013
Debt securities	$(347)	$340	$412
Deferred income taxes	122	(118)	(143)
Net unrealized investment gains (losses)	$(225)	$222	$269

At December 31, 2015, the Company owned one debt security with a fair value of $8,210 in an unrealized loss position of $546 for less than twelve months.  At December 31, 2014 the Company owned one debt security with a fair value of $7,526 in an unrealized loss position of $4 for less than twelve months.  The Company did not have any gross unrealized losses at December 31, 2013.

Embedded Derivatives

The Company issues single premium deferred annuity contracts that contain embedded derivatives.  Such embedded derivatives are separated from their host contracts and recorded at fair value.  The fair value of the embedded derivatives, which are reported as part of assets on deposit and policyholder account balances in the balance sheets, were an asset of $122,043 and a liability of $122,043, respectively, as of December 31, 2015 and an asset of $45,503 and a liability of $45,503, respectively, as of December 31, 2014.  The increase in fair value related to embedded derivatives from the date of deposit was $3,591, $9,581 and $592 for the years ended December 31, 2015, 2014 and 2013, respectively.  Because the Company has entered into an agreement with CMFG Life to cede 100% of this business, this expense is ceded and does not impact the statement of operations and comprehensive income (loss).

Assets Designated/Securities on Deposit

Iowa law requires that assets equal to a life insurer’s “legal reserve” must be designated for the Iowa Department of Commerce, Insurance Division.  The legal reserve is equal to the net present value of all outstanding policies and contracts involving life contingencies. At December 31, 2015 and 2014, debt securities, policy loans and cash with a carrying value of $10,618 and $11,512, respectively, were accordingly designated for Iowa.  Other regulatory jurisdictions require cash and securities to be deposited for the benefit of policyholders.  Pursuant to these requirements, securities with a fair value of $1,732 and $1,854 were on deposit with other regulatory jurisdictions as of December 31, 2015 and 2014, respectively.

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Fair Value

12 Months Ended

Dec. 31, 2015

Notes

Fair Value

Note 4:  Fair Value

The Company uses fair value measurements to record fair value of certain assets and liabilities and to estimate fair value of financial instruments not recorded at fair value but required to be disclosed at fair value.  Certain financial instruments, such as insurance policy liabilities (other than investment-type contracts), are excluded from the fair value disclosure requirements.

Valuation Hierarchy

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value of assets and liabilities into three broad levels.  The Company has categorized its financial instruments, based on the degree of subjectivity inherent in the valuation technique, as follows:

·         Level 1: Inputs are directly observable and represent quoted prices for identical assets or liabilities in active markets the Company has the ability to access at the measurement date.

·         Level 2: All significant inputs are observable, either directly or indirectly, other than quoted prices included in Level 1, for the asset or liability.  This includes:  (i) quoted prices for similar instruments in active markets, (ii) quoted prices for identical or similar instruments in markets that are not active, (iii) inputs other than quoted prices that are observable for the instruments and (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

·         Level 3: One or more significant inputs are unobservable and reflect the Company’s estimates of the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk.

For purposes of determining the fair value of the Company’s assets and liabilities, observable inputs are those inputs used by market participants in valuing financial instruments, which are developed based on market data obtained from independent sources.  In the absence of sufficient observable inputs, unobservable inputs, reflecting the Company’s estimates of the assumptions market participants would use in valuing financial assets and liabilities, are developed based on the best information available in the circumstances.  The Company uses prices and inputs that are current as of the measurement date.  In some instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy.  The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The hierarchy requires the use of market observable information when available for assessing fair value.  The availability of observable inputs varies by investment.  In situations where the fair value is based on inputs that are unobservable in the market or on inputs from inactive markets, the determination of fair value requires more judgment and is subject to the risk of variability.  The degree of judgment exercised by the Company in determining fair value is typically greatest for investments categorized in Level 3. Transfers in and out of level categorizations are reported as having occurred at the end of the quarter in which the transfer occurred.  Therefore, for all transfers into Level 3, all realized gains and losses and all changes in unrealized gains and losses in the fourth quarter are not reflected in the Level 3 rollforward table.

Valuation Process

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies.  The Company gains assurance on the overall reasonableness and consistent application of valuation methodologies and inputs and compliance with accounting standards through the execution of various processes and controls designed to provide assurance that the Company’s assets and liabilities are appropriately valued. 

The Company has policies and guidelines that require the establishment of valuation methodologies and consistent application of such methodologies.  These policies and guidelines govern the use of inputs and price source hierarchies and provide controls around the valuation processes.  These controls include appropriate review and analysis of prices against market activity or indicators of reasonableness, approval of price source changes, price overrides, methodology changes and classification of fair value hierarchy levels.  The valuation policies and guidelines are reviewed and updated as appropriate.

For fair values received from third parties or internally estimated, the Company’s processes are designed to provide assurance that the valuation methodologies and inputs are appropriate and consistently applied, the assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are appropriately recorded.  The Company performs procedures to understand and assess the methodologies, process and controls of valuation service providers.  In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third party valuation sources for selected securities.  When using internal valuation models, these models are developed by the Company’s investment group using established methodologies.  The models including key assumptions are reviewed with various investment sector professionals, accounting, operations, compliance and risk management.  In addition, when fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions.

Transfers Between Levels

There were no transfers between levels during the year ended December 31, 2015. There were two U.S. government and agency securities totaling $2,556 transferred from Level 1 to Level 2 during the year ended December 31, 2014.  The transfer occurred due to a change in the availability of the observable inputs.  There were no other transfers in 2014.

Fair Value Measurement – Recurring Basis

The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2015.

Assets, at Fair Value	Level 1	Level 2	Level 3	Total
Cash equivalents1	$ 16,080	$ -	$ -	$ 16,080
Debt securities:
U.S. government and agencies	-	9,813	-	9,813
Mortgage-backed securities:
Residential mortgage-backed	-	2,538	-	2,538
Total debt securities	-	12,351	-	12,351
Derivatives embedded in assets on deposit	-	-	122,043	122,043
Total assets	$ 16,080	$ 12,351	$ 122,043	$ 150,474

Liabilities, at Fair Value	Level 1	Level 2	Level 3	Total
Derivatives embedded in annuity contracts	$ -	$ -	$ 122,043	$ 122,043
Total liabilities	$ -	$ -	$ 122,043	$ 122,043

¹Excludes cash of $1,013 that is not subject to fair value accounting.

The following table summarizes the Company’s assets that are measured at fair value on a recurring basis as of December 31, 2014.

Assets, at Fair Value	Level 1	Level 2	Level 3	Total
Cash equivalents1	$3,681	$-	$-	$3,681
Debt securities:
U.S. government and agencies	-	9,987	-	9,987
Mortgage-backed securities:
Residential mortgage-backed	-	3,207	-	3,207
Total debt securities	-	13,194	-	13,194
Derivatives embedded in assets on deposit	-	-	45,503	45,503
Total assets	$3,681	$13,194	$45,503	$62,378

Liabilities, at Fair Value	Level 1	Level 2	Level 3	Total
Derivatives embedded in annuity contracts	$ -	$ -	$ 45,503	$ 45,503
Total liabilities	$ -	$ -	$ 45,503	$ 45,503

¹Excludes cash of $1,921 that is not subject to fair value accounting.

The Company had no assets or liabilities that required a fair value adjustment on a non-recurring basis as of December 31, 2015 or 2014.

Changes in Fair Value Measurement

The following table sets forth the values of assets and liabilities classified as Level 3 within the fair value hierarchy at December 31, 2015.

		Total Realized/Unrealized Gain (Loss) Included in:
	Balance				Balance
	January 1,				December 31,
	2015	Purchases	Maturities	Earnings1	2015
Derivatives embedded in assets on deposit	$45,503	$73,631	$(682)	$3,591	$122,043
Total assets	$45,503	$73,631	$(682)	$3,591	$122,043
Derivatives embedded in annuity contracts	$45,503	$73,631	$(682)	$3,591	$122,043
Total liabilities	$45,503	$73,631	$(682)	$3,591	$122,043

¹ Included in net income is realized gains and losses associated with embedded derivatives.

The following table sets forth the values of assets and liabilities classified as Level 3 within the fair value hierarchy at December 31, 2014.

		Total Realized/Unrealized Gain (Loss) Included in:
	Balance				Balance
	January 1,				December 31,
	2014	Purchases	Maturities	Earnings1	2014
Derivatives embedded in assets on deposit	$ 8,652	$ 27,522	$ (252)	$ 9,581	$ 45,503
Total assets	$ 8,652	$ 27,522	$ (252)	$ 9,581	$ 45,503
Derivatives embedded in annuity contracts	$ 8,652	$ 27,522	$ (252)	$ 9,581	$ 45,503
Total liabilities	$8,652	$ 27,522	$ (252)	$ 9,581	$ 45,503

¹ Included in net income is realized gains and losses associated with embedded derivatives.

Determination of Fair Values

The Company determines the estimated fair value of its investments using primarily the market approach and the income approach.  The use of quoted prices and matrix pricing or similar techniques are examples of market approaches, while the use of discounted cash flow methodologies is an example of the income approach. 

A summary of valuation techniques for classes of financial assets and liabilities by fair value hierarchy level are as follows: 

Level 1 Measurements

Cash equivalents:  Consists of money market funds; valuation is based on the closing price as of the balance sheet date.

Level 2 Measurements

U.S. government and agencies: Certain U.S. Treasury securities and debentures issued by agencies of the U.S. government are valued based on observable inputs such as the U.S. Treasury yield curve, market indicated spreads and quoted prices for identical assets in markets that are not active and/or similar assets in markets that are active.

Residential mortgage-backed securities:  Valuation is principally based on observable inputs including quoted prices for similar assets in markets that are active and observable market data. 

For the majority of assets classified as Level 2 investments, the Company values the assets using third-party pricing sources, which generally rely on quoted prices for similar assets in markets that are active and observable market data. 

Level 3 Measurements

Derivatives embedded in assets on deposit and annuity contracts:  The Company offers single premium deferred annuity contracts with certain caps and floors which represent a minimum and maximum amount that could be credited to a contract during that contract year based on the performance of an external index.  These embedded derivatives are measured at fair value separately from the host deposit asset and annuity contract.

In estimating the fair value of the embedded derivative, the Company attributes a present value to the embedded derivative equal to the discounted sum of the excess cash flows of the index related fund value over the minimum fund value.  The current year portion of the embedded derivative is adjusted for known market conditions.  The discount factor at which the embedded derivative is valued contains an adjustment for the Company’s own credit and risk margins for unobservable non-capital market inputs.  The Company’s own credit adjustment is determined taking into account its A.M. Best rating as well as its claims paying ability.

These derivatives may be more costly than expected in volatile or declining equity markets. Changes in market conditions include, but are not limited to, changes in interest rates, equity indices, default rates and market volatility.  Changes in fair value may be impacted by changes in the Company’s own credit standing.  Lastly, changes in actuarial assumptions regarding policyholder behavior (such as full or partial withdrawals varying from expectations) and risk margins related to non-capital market inputs may result in significant fluctuations in the fair value of the derivatives.  See Embedded Derivatives within Note 3, Investments for the impact to net income. 

The following table presents information about significant unobservable inputs used in Level 3 embedded derivative assets and liabilities measured at fair value developed by internal models as of December 31, 2015 and 2014:

Predominant Valuation	Significant	Range of Values - Unobservable Input
Method	Unobservable Input	2015	2014
Derivatives embedded in single premium deferred annuities and related assets on deposit
Discounted cash flow	Lapse rates	2% to 4% with an excess lapse rate at the end of the index period of 95%.	2% to 4% with an excess lapse rate at the end of the index period of 95%.
	Company's own credit and risk margin	82 - 137 basis points added on to discount rate	60 - 90 basis points added on to discount rate

Fair Value Measurements for Financial Instruments Not Reported at Fair Value

Accounting standards require disclosure of fair value information about certain on- and off balance sheet financial instruments which are not recorded at fair value on a recurring basis for which it is practicable to estimate that value. 

The following methods and assumptions were used by the Company in estimating the fair value disclosures for significant financial instruments:

Level 1 Measurements

Cash: The carrying amount for this instrument approximates its fair value due to its short term nature and is based on observable inputs.

Level 2 Measurements

Assets on deposit and Investment-type contracts:  Assets on deposit and investment-type contracts include single premium deferred annuity contracts, excluding the related embedded derivative.  In most cases, the fair values are determined by discounting expected liability cash flows and required profit margins using the year-end swap curve plus a spread equivalent to a cost of funds for insurance companies based on observable inputs.

Not Practicable to Estimate Fair Value

Policy loans: The Company believes it is not practicable to determine the fair value of its policy loans since there is no stated maturity and policy loans are often repaid by reductions to policy benefits.

The carrying amounts and estimated fair values of the Company’s financial instruments which are not measured at fair value on a recurring basis at December 31 are as follows:

	2015			2014
	Carrying	Estimated		Carrying	Estimated
	Amount	Fair Value	Level	Amount	Fair Value	Level
Financial instruments recorded as assets:
Cash	$ 1,013	$ 1,013	1	$ 1,921	$ 1,921	1
Policy loans	-	n/a	n/a	104	n/a	n/a
Assets on deposit	825,552	699,721	2	304,434	294,710	2
Financial instruments recorded as liabilities:
Investment-type contracts	825,552	699,721	2	304,434	294,710	2

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Income Tax

12 Months Ended

Dec. 31, 2015

Notes

Income Tax

Note 5:  Income Tax

The Company is included in the consolidated federal income tax return filed by CMHC, the Company’s ultimate parent.  The Company has entered into a tax sharing agreement with CMHC and its subsidiaries.  The agreement provides for the allocation of tax expense based on each subsidiary’s contribution to the consolidated federal income tax liability.  Pursuant to the agreement, subsidiaries that have incurred losses are reimbursed regardless of the utilization of the loss in the current year. Federal income taxes recoverable from affiliate reported on the balance sheet are due from CMFG Life.

Income Tax Expense

Income tax expense for the years ended December 31 is as follows:

	2015	2014	2013
Current tax expense (benefit)	$ 1,451	$ (186)	$ (426)
Deferred tax expense (benefit)	(2)	197	675
Total income tax expense	$ 1,449	$ 11	$ 249

Reconciliation to U.S. Tax Rate

Income tax expense differs from the amount computed by applying the U.S. federal corporate income tax rate of 35% to income before income taxes due to the items listed in the following reconciliation:

	2015		2014		2013
	Amount	Rate	Amount	Rate	Amount	Rate
Tax expense computed at federal corporate tax rate	$1,480	35.0%	$60	35.0%	$133	35.0%
Income tax expense (benefit) related to prior years	(31)	(0.7)	(41)	(23.9)	116	30.5
Other	-	-	(8)	(4.7)	-	-
Total income tax expense	$1,449	34.3%	$11	6.4%	$249	65.5%

Deferred Income Taxes

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial statement purposes and the amounts for income tax purposes.  Significant components of the Company’s deferred tax assets and liabilities at December 31, 2015 and 2014 are as follows:

	2015	2014
Deferred tax assets
Policy liabilities and reserves	$36	$81
Unrealized investment losses	122	-
Investments	168	276
Accrued expenses	94	26
Deferred policy acquisition costs	309	230
Other	1	3
Gross deferred tax assets	730	616
Deferred tax liabilities
Unrealized investment gains	-	118
Deferred reinsurance expense	47	56
Other	1	2
Gross deferred tax liabilities	48	176
Net deferred tax asset	$682	$440

Valuation Allowance

The Company considered the need for a valuation allowance with respect to its gross deferred tax assets as of December 31, 2015 and 2014, and based on that evaluation, the Company has determined it is more likely than not all deferred tax assets as of December 31, 2015 and 2014 will be realized.  Therefore, a valuation allowance was not established.  

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2015	2014
Balance at January 1	$ 1	$ 7
Reductions for prior years' tax positions	0	(6)
Balance at December 31	$ 1	$ 1

There were no unrecognized tax benefits as of December 31, 2015 and 2014 that, if recognized, would affect the effective tax rate in future periods. Management does not anticipate a material change to the Company’s uncertain tax positions during 2016.

The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense in the statements of comprehensive income (loss). The Company did not recognize any additions or reductions in interest and penalties for the year ended December 31, 2015 or 2014. During the year ended December 31, 2013 the Company recognized additions  of $1 in interest and penalties. The Company had accrued $7 and $7 for the payment of interest and penalties at December 31, 2015 and 2014, respectively.

The Company is included in a consolidated U.S. federal income tax return filed by CMHC.  The Company is also included in income tax returns filed in various states.  For the major jurisdictions where it operates, the Company is generally no longer subject to income tax examinations by tax authorities for years ended before 2008. 

Other Tax Items

As of December 31, 2015 and 2014, the Company did not have any capital loss, operating loss or credit carryforwards.

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Related Party Transactions

12 Months Ended

Dec. 31, 2015

Notes

Related Party Transactions

Note 6:  Related Party Transactions

In the normal course of business, there are various transactions between the Company and other related entities.  In certain circumstances, expenses such as those related to sales and marketing, administrative, operations, other support and infrastructure costs are shared between the companies.  Expenses incurred that are specifically identifiable with a particular company are borne by that company; other expenses are allocated among the companies on the basis of time and usage studies.  Amounts due from transactions with affiliates are generally settled monthly.  The Company reimbursed CMFG Life $8,447, $5,641 and $2,492 for these expenses in 2015, 2014 and 2013, respectively; which are included in operating and other expenses.

Amounts receivable/payable from/to affiliates are shown in the following table:

	2015	2014
Receivable from:
CMFG Life	$ 4,518	$ 2,765
Total	$ 4,518	$ 2,765
Payable to:
CUNA Brokerage Services, Inc.	$ 2,478	$ 1,290
MEMBERS Capital Advisors, Inc.	2	2
Total	$ 2,480	$ 1,292

Amounts receivable from CMFG Life at December 31, 2015 and 2014 are primarily for a policyholder’s purchase of an annuity when a CMFG Life policyholder has surrendered their policy for the purchase of a single premium deferred annuity and for the cession of death claims related to the Company’s single premium deferred annuity. 

The Company hires MEMBERS Capital Advisors, Inc. (“MCA”) for investment advisory services.  MCA, which is 100% owned by CMIC, manages substantially all of the Company’s invested assets in accordance with policies, directives and guidelines established by the Company.  The Company recorded MCA investment management fees totaling $28, $34 and $113 for the years ended December 31, 2015, 2014 and 2013, respectively, which are included as a reduction to net investment income. 

The Company utilizes CUNA Brokerage Services, Inc. (“CBSI”), which is 100% owned by CMIC, to distribute its single premium deferred annuity and recorded commission expense for this service of $23,072, $10,853 and $4,256 in 2015, 2014 and 2013, respectively, which is included in operating and other expenses. This expense is entirely offset by commission income the Company receives from CMFG Life as part of the 2013 reinsurance agreement.   

See Note 7 regarding reinsurance and other agreements entered into by the Company and CMFG Life.

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Reinsurance

12 Months Ended

Dec. 31, 2015

Notes

Reinsurance

Note 7:  Reinsurance

The Company entered into a reinsurance agreement with its affiliate, CMFG Life, on a coinsurance and modified coinsurance basis. The agreement was effective November 1, 2015 to cede 100% of the business related to a new product currently in development, which includes any related development expenses.  The Company receives a commission equal to 100% of its actual expenses incurred for this business, which was $1,027 for the year ended December 31, 2015.

The Company entered into an agreement with its affiliate, CMFG Life, effective January 1, 2013 to cede 100% of its investment-type contracts for its single premium deferred annuity, which are accounted for using the deposit method of accounting.  The Company had $947,595 and $349,937 of assets on deposit for these contracts as of December 31, 2015 and 2014, respectively. The Company had related liabilities of $947,595 and $349,937, respectively which are included in policyholder account balances in the balance sheets.  The Company receives a commission equal to 100% of its actual expenses incurred for this business, which was $34,236, $14,861 and $6,425 for the year ended December 31, 2015, 2014 and 2013, respectively.

On October 31, 2012, the Company ceded 95% of its insurance policies in force pursuant to a reinsurance agreement with CMFG Life and the Company was reimbursed for 95% of expenses incurred in the provision of policyholder and benefit payment services, and insurance taxes and charges on a go forward basis under this contract.  On September 30, 2015, the Company amended its reinsurance agreement with CMFG Life and now cedes 100% of its insurance policies in force to CMFG Life and is reimbursed 100% for expenses incurred in the provision of policyholder and benefit payments services, and insurance taxes and charges going forward.  As a result of the amendment to this agreement the Company ceded $1,297 of earned premiums and $1,244 of benefits as of September 30, 2015.

MLIC did not have any other reinsurance agreements at December 31, 2015 or 2014 and the entire reinsurance recoverable balance of $24,628 and $25,199, respectively, was due from CMFG Life.  The recoverable balances are not collateralized and the Company retains the risk of loss in the event CMFG Life is unable to meet its obligations assumed under the reinsurance agreements.  CMFG Life is rated A (excellent) by A.M. Best Company and MLIC believes the risk of non-collection is remote.

The effects of reinsurance on contract charges, interest credited to policyholder accounts, premiums and on claims, benefits, and losses incurred for the years ended December 31 are as follows:

	2015	2014	2013
Face amount of policies in force	$110,827	$123,223	$147,371
Premiums:
Direct - written	$2,384	$2,613	$2,811
Direct - change in unearned	-	-	-
Direct - earned	2,384	2,613	2,811
Ceded to affiliate - written	(3,559)	(2,482)	(2,671)
Ceded to affiliate - change in unearned	-	(4)	(1)
Ceded to affiliate - earned	(3,559)	(2,486)	(2,672)
Premiums - written, net	(1,175)	131	140
Premiums - change in unearned, net	-	(4)	(1)
Premiums, net	$(1,175)	$127	$139
Contract charges:
Direct	$742	$472	$461
Ceded to affiliate	(724)	(448)	(415)
Contract charges, net	$18	$24	$46
Claims, benefits and losses incurred:
Direct	$1,784	$1,883	$2,953
Ceded to affiliate	(2,988)	(1,771)	(2,774)
Claims, benefits and losses, net	$(1,204)	$112	$179
Interest credited to policyholder account balances:
Direct	$9,833	$2,457	$320
Ceded to affiliate	(9,829)	(2,449)	(311)
Interest credited to policyholder account balances, net	$4	$8	$9

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Statutory Financial Data and Dividend Restrictions

12 Months Ended

Dec. 31, 2015

Notes

Statutory Financial Data and Dividend Restrictions

Note 8:  Statutory Financial Data and Dividend Restrictions

The Company is a life and health insurer and is domiciled in Iowa.  The Company files statutory-basis financial statements with insurance regulatory authorities.  The Company did not use any permitted practices in 2015, 2014 or 2013.  Certain statutory basis financial information for MLIC is presented in the table below as of and for the years ended December 31.

	Statutory Basis		Statutory Basis
	Capital and Surplus		Net Income (Loss)
	2015	2014	2015	2014	2013
MLIC	$ 21,111	$ 18,366	$ 1,112	$ (1,792)	$ (1,562)

The Company is subject to statutory regulations as to maintenance of equity and the payment of dividends.  Generally, ordinary dividends from an insurance subsidiary to its parent company must meet notice requirements promulgated by the regulator of the subsidiary’s state of domicile (“Insurance Department”).  Extraordinary dividends, as defined by state statutes, must be approved by the Insurance Department.  Based on Iowa statutory regulations, the Company could pay dividends up to $2,111 during 2016, without prior approval of the Insurance Department.

Risk-based capital (“RBC”) requirements promulgated by the National Association of Insurance Commissioners require U.S. insurers to maintain minimum capitalization levels that are determined based on formulas incorporating credit risk, insurance risk, interest rate risk, and general business risk.  The adequacy of the Company’s actual capital is evaluated by a comparison to the RBC results, as determined by the formula.  At December 31, 2015 and 2014, the Company’s adjusted capital exceeded the minimum requirements.

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Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2015

Notes

Accumulated Other Comprehensive Income

Note 9:  Accumulated Other Comprehensive Income (Loss)

The components of accumulated comprehensive income (loss), net of tax, are as follows:

		Accumulated
	Unrealized	Other
	Investment	Comprehensive
	Gains (Loss)	Income (Loss)
Balance, January 1, 2013	$ 423	$ 423
Change in unrealized holding gains (losses),net of tax - ($105)	(154)	(154)
Balance, December 31, 2013	269	269
Change in unrealized holding gains (losses), net of tax - ($25)	(47)	(47)
Balance, December 31, 2014	222	222
Change in unrealized holding gains (losses), net of tax - ($240)	(447)	(447)
Balance, December 31, 2015	$ (225)	$ (225)

Reclassification Adjustments

Accumulated other comprehensive income (losses) includes amounts related to unrealized investment gains (losses) which were reclassified to net income.  Reclassifications from accumulated other comprehensive income (losses) for the years ended December 31 are included in the following table:

	2015	2014	2013
Reclassifications from accumulated other comprehensive income (losses)
Unrealized gains on available-for-sale securities included in net realized investment losses	$ 15	$ -	$ -
Total reclassifications from accumulated other comprehensive income (losses)	15	-	-
Tax expense	5	-	-
Net reclassification from accumulated other comprehensive income (losses)	$ 10	$ -	$ -

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Business Segment Information

12 Months Ended

Dec. 31, 2015

Notes

Business Segment Information

Note 10:  Business Segment Information

The following table sets forth financial information regarding the Company’s two reportable business segments for the year ended December 31, 2015. 

Year ended or as of December 31, 2015	Life and Health	Annuities	Total
Revenues
Life and health premiums, net	$ (1,175)	$ -	$ (1,175)
Contract charges	18	-	18
Net investment income	366	-	366
Net realized investment gains	117	-	117
Other income	5,336	-	5,336
Total revenues	4,662	-	4,662
Benefits and expenses
Life and health insurance claims and benefits, net	(1,204)	-	(1,204)
Interest credited to policyholder account balances	4	-	4
Operating and other expenses	1,633	-	1,633
Total benefits and expenses	433	-	433
Income before income taxes	4,229	-	4,229
Income tax expense	1,449	-	1,449
Net income	2,780	-	2,780
Change in unrealized (losses), net of tax (benefit)	(447)	-	(447)
Other comprehensive (loss)	(447)	-	(447)
Total comprehensive income	$ 2,333	$ -	$ 2,333
Reinsurance recoverable from affiliate	$ 24,628	$ -	$ 24,628
Assets on deposit	-	947,595	947,595
Claim and policy benefit reserves - life and health	21,077	460	21,537
Policyholder account balances	3,473	947,595	951,068

The following table sets forth financial information regarding the Company’s two reportable business segments for the year ended December 31, 2014. 

Year ended or as of December 31, 2014	Life and Health	Annuities	Total
Revenues
Life and health premiums, net	$ 127		$ 127
Contract charges	24	-	24
Net investment income	278	-	278
Net realized investment gains	-	-	-
Other income	-	-	-
Total revenues	429	-	429
Benefits and expenses
Life and health insurance claims and benefits, net	112	-	112
Interest credited to policyholder account balances	8	-	8
Operating and other expenses	137	-	137
Total benefits and expenses	257	-	257
Income before income taxes	172	-	172
Income tax expense	11	-	11
Net income	161	-	161
Change in unrealized (losses), net of tax (benefit)	(47)	-	(47)
Other comprehensive (loss)	(47)	-	(47)
Total comprehensive (loss)	$ 114	$ -	$ 114
Reinsurance recoverable from affiliate	$ 25,199	$ -	$ 25,199
Assets on deposit	-	349,937	349,937
Claim and policy benefit reserves - life and health	22,035	333	22,368
Policyholder account balances	3,612	349,937	353,549

The following table sets forth financial information regarding the Company’s two reportable business segments for the year ended December 31, 2013.

Year ended or as of December 31, 2013	Life and Health	Annuities	Total
Revenues
Life and health premiums, net	$ 139	$ -	$ 139
Contract charges	46	-	46
Net investment income	176	-	176
Net realized investment gains	-	-	-
Other income	293	-	293
Total revenues	654	-	654
Benefits and expenses
Life and health insurance claims and benefits, net	179	-	179
Interest credited to policyholder account balances	9	-	9
Operating and other expenses	86	-	86
Total benefits and expenses	274	-	274
Income before income taxes	380	-	380
Income tax expense	249	-	249
Net income	131	-	131
Change in unrealized (losses), net of tax (benefit)	(154)	-	(154)
Other comprehensive (loss)	(154)	-	(154)
Total comprehensive (loss)	$ (23)	$ -	$ (23)
Reinsurance recoverable from affiliate	$ 25,525	$ -	$ 25,525
Assets on deposit	-	89,313	89,313
Claim and policy benefit reserves - life and health	23,196	-	23,196
Policyholder account balances	3,734	89,313	93,047

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Notes

Commitments and Contingencies

Note 11:  Commitments and Contingencies

Insurance Guaranty Funds

The Company is liable for guaranty fund assessments related to certain unaffiliated insurance companies that have become insolvent during 2015 and prior years. The Company includes a provision for all known assessments that will be levied as well as an estimate of amounts that it believes will be assessed in the future relating to past insolvencies. The Company has established a liability of $270 and $75 at December 31, 2015 and 2014, respectively, for guaranty fund assessments. The Company also estimates the amount recoverable from future premium tax payments related to these assessments and has not established an asset as of December 31, 2015 and 2014 since it does not believe any amount will be recoverable. Recoveries of assessments from premium taxes are generally made over a five-year period.

Legal Matters

Like other members of the insurance industry, the Company is occasionally a party to a number of lawsuits and other types of proceedings, some of which may involve claims for substantial or indeterminate amounts. These actions are based on a variety of issues and involve a range of the Company's practices.  The Company has established procedures and policies to facilitate compliance with laws and regulations and to support financial reporting.

In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution and changes in business practices. The Company may not be advised of the nature and extent of relief sought until the final stages of the examination or proceeding.  In the opinion of management, the ultimate liability, if any, resulting from all such pending actions will not materially affect the financial statements of the Company.

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Subsequent Events

12 Months Ended

Dec. 31, 2015

Notes

Subsequent Events

Note 12:  Subsequent Events

The Company evaluated subsequent events through the date the financial statements were issued.  During this period, there were no significant subsequent events that required adjustment to or disclosure in the accompanying financial statements.

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Summary of Significant Accounting Policies: Basis of Presentation (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Basis of Presentation

Basis of Presentation

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

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Summary of Significant Accounting Policies: Use of Estimates (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates and in some cases the difference could be material.  Investment valuations, embedded derivatives, deferred tax asset valuation reserves, and claim and policyholder benefit reserves are most affected by the use of estimates and assumptions.

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Summary of Significant Accounting Policies: Segment Reporting (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Segment Reporting

Segment Reporting

The Company is currently managed as two reportable business segments, (1) life and health and (2) annuities.  See Note 7, Reinsurance, for information on the Company’s reinsurance and ceding agreements, which impact the financial statement presentation of these segments.  

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Summary of Significant Accounting Policies: Investments (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Investments

Investments

Debt securities: Investments in debt securities are classified as available for sale and are carried at fair value.  A debt security is considered other-than-temporarily impaired when the fair value is less than the amortized cost basis and its value is not expected to recover through the Company's anticipated holding period of the security.  If a credit loss exists, but the Company does not intend to sell the impaired debt security and is not more likely than not to be required to sell before recovery, it is required to bifurcate the impairment into the loss that is attributable to credit and non-credit related components.  The credit portion of the other-than-temporary impairment (“OTTI”) is the difference between the present value of the expected future cash flows and amortized cost.  Only the estimated credit loss amount is recognized in net realized investment gains, with the remainder of the loss amount recognized in other comprehensive loss.  If the Company intends to sell or it is more likely than not that the Company will be required to sell before anticipated recovery in value, the Company records a realized loss equal to the difference between the amortized cost and fair value. The fair value of the other-than-temporarily impaired security becomes its new cost basis.  In determining whether an unrealized loss is expected to be other than temporary, the Company considers, among other factors, any plans to sell the security, the severity of impairment, financial position of the issuer, recent events affecting the issuer’s business and industry sector, credit ratings, and the intent and ability of the Company to hold the investment until the fair value has recovered at least its cost basis. 

Unrealized gains and losses on investments in debt securities, net of deferred federal income taxes, are included in accumulated other comprehensive income as a separate component of stockholder’s equity.

Policy loans:  Policy loans are reported at their unpaid principal balance.  Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrender value of the underlying insurance policies.  Any unpaid principal or interest on the loan is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy.  Policy loans allocated to CMFG Life as payment related to the 2012 reinsurance agreement and the 2015 amendment (See Note 7) are $1,882 and $1,975 at December 31, 2015 and 2014, respectively. As a result of the amendment, all policy loans are allocated to CMFG Life as of December 31, 2015.

Net investment income:  Interest income related to mortgage-backed and other structured securities is recognized on an accrual basis using a constant effective yield method, based on anticipated prepayments and the estimated economic life of the securities.  When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments and such adjustments are reflected in net investment income.  Prepayment assumptions for loan backed bonds and structured securities are based on industry averages or internal estimates.  Interest income related to non-structured securities is recognized on an accrual basis using a constant effective yield method. Discounts and premiums on debt securities are amortized over the estimated lives of the respective securities on an effective yield basis. 

Net realized gains and losses:  Realized gains and losses on the sale of investments are determined on a specific identification basis and are recorded on the trade date. 

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Summary of Significant Accounting Policies: Derivative Financial Instruments (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Derivative Financial Instruments

Derivative Financial Instruments

The Company issues single premium deferred annuity contracts that contain embedded derivatives.  Derivatives embedded within non-derivative host contracts are separated from the host instrument when the embedded derivative is not clearly and closely related to the host instrument.  Such embedded derivatives are recorded at fair value, and they are reported as part of assets on deposit and policyholder account balances in the balance sheets, with the change in the value being recorded in net realized investment gains.  See Note 3, Investments-Embedded Derivatives for additional information.

Changes in the fair value of the embedded derivative in assets on deposit offset changes in the fair value of the embedded derivative in policyholder account balances; both of these changes are included in net realized investment gains. Accretion of the interest on assets on deposit offsets accretion of the interest on the host contract; both of these amounts are included in interest credited on policyholder account balances.

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Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include unrestricted deposits in financial institutions with maturities of 90 days or less.  The Company recognizes a liability in accounts payable and other liabilities for the amount of checks issued in excess of its current cash balance. The change in this overdraft amount is recognized as a financing activity in the Company’s statement of cash flows.

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Summary of Significant Accounting Policies: Recognition of Insurance Revenue and Related Benefits (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Recognition of Insurance Revenue and Related Benefits

Recognition of Insurance Revenue and Related Benefits

Term-life and whole-life insurance premiums are recognized as premium income when due. Policy benefits for these products are recognized in relation to the premiums so as to result in the recognition of profits over the expected lives of the policies and contracts. 

Amounts collected on policies not subject to significant mortality or longevity risk, such as the Company’s single premium deferred annuity contracts, are considered investment contracts and are recorded as increases in policyholder account balances.  Revenues from investment contracts principally consist of net investment income and contract charges such as expense and surrender charges.  Expenses for investment contracts consist of interest credited to contracts, benefits incurred in excess of related policyholder account balances and policy maintenance costs.  Because the Company has entered into an agreement with CMFG Life to cede 100% of this business, these revenues and expenses are ceded and do not impact the statement of operations and comprehensive income (loss). See Note 7, Reinsurance for additional information on this agreement.

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Summary of Significant Accounting Policies: Other Income (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Other Income

Other Income / Operating and Other Expenses

Other income in 2015 and 2013 relates to legal settlements received on structured security investments that had previously been sold. Operating and other expenses in 2015 include legal expenses related to the settlement received.

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Summary of Significant Accounting Policies: Deferred Policy Acquisition Costs (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Deferred Policy Acquisition Costs

Deferred Policy Acquisition Costs

The costs of acquiring insurance business that are directly related to the successful acquisition of new and renewal business are deferred to the extent that such costs are expected to be recoverable from future profits.  Such costs principally include commissions and sales costs, direct response advertising costs, premium taxes, and certain policy issuance and underwriting costs. Costs deferred on term-life and whole-life insurance products, deferred policy acquisition costs (“DAC”), are amortized in proportion to the ratio of the annual premium to the total anticipated premiums generated.  Due to the age of the existing block of policies, all DAC has been fully amortized as of December 31, 2015 and 2014 and there was no amortization expense in 2015, 2014 or 2013.  Acquisition costs on the Company’s single premium deferred annuity contracts are reimbursed through a ceding commission by CMFG Life, which assumes all deferrable costs as part of its agreement to assume 100% of this business from the Company. See Note 7, Reinsurance for additional information on this agreement.

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Summary of Significant Accounting Policies: Insurance Reserves (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Insurance Reserves

Insurance Reserves

Life and health claim and policy benefit reserves consist principally of future policy benefit reserves and reserves for estimates of future payments on incurred claims reported but not yet paid and unreported incurred claims.  Estimates for future payments on incurred claims are developed using actuarial principles and assumptions based on past experience adjusted for current trends.  Any change in the probable ultimate liabilities is reflected in net income in the period in which the change is determined.

When actual experience indicates that existing contract liabilities, together with the present value of future gross premiums will not be sufficient to recover the present value of future benefits or recover unamortized deferred acquisition costs, a premium deficiency will be recognized by either a reduction in unamortized acquisition costs or an increase in the liability for future benefits.  There was no premium deficiency in 2015, 2014 or 2013.

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Summary of Significant Accounting Policies: Policyholder Account Balances (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Policyholder Account Balances

Policyholder Account Balances

The Company recognizes a liability at the stated account value for policyholder deposits that are not subject to significant policyholder mortality or longevity risk and for universal life-type policies.  The account value equals the sum of the original deposit and accumulated interest, less any withdrawals and expense charges.  The average credited rate was 4.5% in 2015, 2014 and 2013.  The future minimum guaranteed interest rate during the life of the contracts is 4.5%.

The single premium deferred annuities, which are included in policyholder account balances, have two risk control accounts, referred to as the Secure and Growth Accounts; the Secure Account has a yearly credited interest rate floor of 0% and the yearly Growth Account floor is -10%.  The Secure and Growth Accounts both have credited interest rate caps that vary with issuance.  Interest is credited at the end of each contract year during the selected index term based on the allocation between risk control accounts and the performance of an external index during that contract year. Both the Growth Account and Secure Account are based on the S&P 500 Index.  At the end of the initial index term, only the Secure Account will be available as an option to the policyholder.  The average annualized credited rate was 1.65%, 1.10% and .72% in 2015, 2014 and 2013, respectively.

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Summary of Significant Accounting Policies: Accounts Payable and Other Liabilities (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Accounts Payable and Other Liabilities

Accounts Payable and Other Liabilities

The Company issues annuity contracts on the 10^th and 25^th of each month.   The Company recognizes a liability on contracts for which it has received cash, but has not issued a contract.

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Summary of Significant Accounting Policies: Reinsurance (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Reinsurance

Reinsurance

Reinsurance premiums, claims and benefits, commission expense reimbursements, and reserves related to reinsured business ceded are accounted for on a basis consistent with the accounting for the underlying direct policies that have been ceded and the terms of the reinsurance contracts.  Premiums and insurance claims and benefits in the statements of operations and comprehensive income (loss) are reported net of the amounts ceded to other companies under such reinsurance contracts.  Ceded insurance reserves and ceded benefits paid are included in reinsurance recoverables along with certain ceded policyholder account balances, which include mortality risk.  A prepaid reinsurance asset is also recorded for the portion of unearned premiums related to ceded policies. 

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Summary of Significant Accounting Policies: Assets On Deposit (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Assets On Deposit

Assets on Deposit

Assets on deposit represent the amount of policyholder account balances related to the single premium deferred annuity contracts (investment-type contracts) that are ceded to CMFG Life.  These investment-type contracts are accounted for on a basis consistent with the accounting for the underlying contracts.  Since the related product is an investment-type contract, the Company accounts for the reinsurance of these contracts using the deposit method of accounting consistent with the terms of the ceding agreement.  The related contract charges and interest credited to policyholder account balances in the statements of operations and comprehensive income (loss) are reported net of the amounts ceded under the agreement. See Note 7 for a further discussion of the ceding agreement.

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Summary of Significant Accounting Policies: Income Taxes (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Income Taxes

Income Taxes

The Company recognizes taxes payable or refundable and deferred taxes for the tax consequences of differences between the financial reporting and tax basis of assets and liabilities.  Deferred tax assets and liabilities are measured by applying the enacted tax rates to the difference between the financial statement and tax basis of assets and liabilities.  The Company records current tax benefits and deferred tax assets utilizing a benefits-for-loss approach.  Under this approach, current benefits are realized and deferred tax assets are considered realizable by the Company when realized or realizable by the consolidated group of which the Company is a member even if the benefits would not be realized on a stand-alone basis.  The Company records a valuation allowance for deferred tax assets if it determines it is more likely than not that the asset will not be realized by the consolidated group.  Deferred income tax assets can be realized through future earnings, including, but not limited to, the generation of future income, reversal of existing temporary differences and available tax planning strategies.

The Company is subject to tax-related audits.  These audits may result in additional tax assets or liabilities.  In establishing tax liabilities, the Company determines whether a tax position is more likely than not to be sustained under examination by the appropriate taxing authority. Tax positions that do not meet the more likely than not standard are not recognized. Tax positions that meet this standard are recognized in the financial statements within net deferred tax assets or liabilities or federal income taxes recoverable or payable.

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Summary of Significant Accounting Policies: Accounting Standards Updates Pending Adoption (Policies)

12 Months Ended

Dec. 31, 2015

Policies

Accounting Standards Updates Pending Adoption

Accounting Standards Updates Pending Adoption

In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard, Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The new standard will supersede nearly all existing revenue recognition guidance by establishing a five step, principles-based process; however, it will not impact the accounting for insurance contracts, leases, financial instruments, and guarantees. For those contracts that are impacted by the new guidance, ASU 2014-09 will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In July 2015, the FASB approved the deferral of ASU 2014-09 for one year and it is effective for annual and interim reporting periods beginning in 2018 for public business entities and 2019 for others. Early adoption in 2017 will be permitted. The Company is currently evaluating the impact of ASU 2014-09 on its financial statements.

In January 2016, the FASB issued Accounting Standard Update (ASU) No. 2016-01, Recognition and Measurement of Financial Assets and Liabilities (“ASU 2016-01”), effective in 2018. The new standard will require equity investments to be measured at fair value with changes in fair value recognized in net income. Other provisions in ASU 2016-01 do not appear to be materially applicable to the Company. The Company is currently evaluating the potential impact of ASU 2016-01 on its financial statements.

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Nature of Business: Schedule of states with premiums greater than 5% of total direct premium and with deposits on annuity contracts greater than 5% of total deposits (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of states with premiums greater than 5% of total direct premium and with deposits on annuity contracts greater than 5% of total deposits

				Deposits on
	Direct Life and Health Premium			Annuity Contracts
	2015	2014	2013	2015	2014	2013
Michigan	63%	63%	64%	8%	12%	11%
Texas	23%	22%	22%	7%	8%	--
California	5%	5%	5%	8%	--	--
Indiana	--	--	--	6%	6%	6%
Iowa	--	--	--	5%	8%	17%
Wisconsin	--	--	--	5%	7%	7%
Pennsylvania	--	--	--	5%	6%	5%
Florida	--	--	--	5%	5%	--
Washington	--	--	--	5%	--	--
Rhode Island	--	--	--	--	8%	6%
Utah	--	--	--	--	--	5%

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Investments: Investments in Debt Securities (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Investments in Debt Securities

	Amortized	Gross Unrealized		Estimated
	Cost	Gains	Losses	Fair Value
U.S. government and agencies	$10,333	$26	$(546)	$9,813
Mortgage-backed securities:
Residential mortgage-backed	2,365	173	-	2,538
Total debt securities	$12,698	$199	$(546)	$12,351

The amortized cost, gross unrealized gains and losses, and estimated fair values, as reported on the balance sheet, of debt securities at December 31, 2014 are as follows:

	Amortized	Gross Unrealized		Estimated
	Cost	Gains	Losses	Fair Value
U.S. government and agencies	$9,888	$103	$(4)	$9,987
Mortgage-backed securities:
Residential mortgage-backed	2,966	241	-	3,207
Total debt securities	$12,854	$344	$(4)	$13,194

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Investments: Investments Classified by Contractual Maturity Date (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Investments Classified by Contractual Maturity Date

	Amortized	Estimated
	Cost	Fair Value
Due in one year or less	$ 1,261	$ 1,280
Due after one year through five years	315	322
Due after ten years	8,757	8,211
Mortgage-backed securities:
Residential mortgage-backed	2,365	2,538
Total debt securities	$ 12,698	$ 12,351

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Investments: Investment Income (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Investment Income

	2015	2014	2013
Gross investment income:
Debt securities	$389	$304	$275
Policy loans	5	8	8
Other investments	-	-	6
Total gross investment income	394	312	289
Investment expenses	(28)	(34)	(113)
Net investment income	$366	$278	$176

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Investments: Realized Gain (Loss) on Investments (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Realized Gain (Loss) on Investments

	2015	2014	2013
Debt securities
Gross gains on sales	$117	$-	$-
Net realized investment gains	$117	$-	$-

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Investments: Unrealized Gain (Loss) on Investments (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Unrealized Gain (Loss) on Investments

	2015	2014	2013
Debt securities	$(347)	$340	$412
Deferred income taxes	122	(118)	(143)
Net unrealized investment gains (losses)	$(225)	$222	$269

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Fair Value: Fair Value Assets measured on a Recurring Basis (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Fair Value Assets measured on a Recurring Basis

Assets, at Fair Value	Level 1	Level 2	Level 3	Total
Cash equivalents1	$ 16,080	$ -	$ -	$ 16,080
Debt securities:
U.S. government and agencies	-	9,813	-	9,813
Mortgage-backed securities:
Residential mortgage-backed	-	2,538	-	2,538
Total debt securities	-	12,351	-	12,351
Derivatives embedded in assets on deposit	-	-	122,043	122,043
Total assets	$ 16,080	$ 12,351	$ 122,043	$ 150,474

Liabilities, at Fair Value	Level 1	Level 2	Level 3	Total
Derivatives embedded in annuity contracts	$ -	$ -	$ 122,043	$ 122,043
Total liabilities	$ -	$ -	$ 122,043	$ 122,043

¹Excludes cash of $1,013 that is not subject to fair value accounting.

The following table summarizes the Company’s assets that are measured at fair value on a recurring basis as of December 31, 2014.

Assets, at Fair Value	Level 1	Level 2	Level 3	Total
Cash equivalents1	$3,681	$-	$-	$3,681
Debt securities:
U.S. government and agencies	-	9,987	-	9,987
Mortgage-backed securities:
Residential mortgage-backed	-	3,207	-	3,207
Total debt securities	-	13,194	-	13,194
Derivatives embedded in assets on deposit	-	-	45,503	45,503
Total assets	$3,681	$13,194	$45,503	$62,378

Liabilities, at Fair Value	Level 1	Level 2	Level 3	Total
Derivatives embedded in annuity contracts	$ -	$ -	$ 45,503	$ 45,503
Total liabilities	$ -	$ -	$ 45,503	$ 45,503

¹Excludes cash of $1,921 that is not subject to fair value accounting.

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Fair Value: Schedule of changes in assets and liabilities classified as Level 3 (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of changes in assets and liabilities classified as Level 3

		Total Realized/Unrealized Gain (Loss) Included in:
	Balance				Balance
	January 1,				December 31,
	2015	Purchases	Maturities	Earnings1	2015
Derivatives embedded in assets on deposit	$45,503	$73,631	$(682)	$3,591	$122,043
Total assets	$45,503	$73,631	$(682)	$3,591	$122,043
Derivatives embedded in annuity contracts	$45,503	$73,631	$(682)	$3,591	$122,043
Total liabilities	$45,503	$73,631	$(682)	$3,591	$122,043

¹ Included in net income is realized gains and losses associated with embedded derivatives.

The following table sets forth the values of assets and liabilities classified as Level 3 within the fair value hierarchy at December 31, 2014.

		Total Realized/Unrealized Gain (Loss) Included in:
	Balance				Balance
	January 1,				December 31,
	2014	Purchases	Maturities	Earnings1	2014
Derivatives embedded in assets on deposit	$ 8,652	$ 27,522	$ (252)	$ 9,581	$ 45,503
Total assets	$ 8,652	$ 27,522	$ (252)	$ 9,581	$ 45,503
Derivatives embedded in annuity contracts	$ 8,652	$ 27,522	$ (252)	$ 9,581	$ 45,503
Total liabilities	$8,652	$ 27,522	$ (252)	$ 9,581	$ 45,503

¹ Included in net income is realized gains and losses associated with embedded derivatives.

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Fair Value: Schedule of Significant unobservable inputs used in Level 3 embedded derivative assets and liabilities measured at fair value (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of Significant unobservable inputs used in Level 3 embedded derivative assets and liabilities measured at fair value

Predominant Valuation	Significant	Range of Values - Unobservable Input
Method	Unobservable Input	2015	2014
Derivatives embedded in single premium deferred annuities and related assets on deposit
Discounted cash flow	Lapse rates	2% to 4% with an excess lapse rate at the end of the index period of 95%.	2% to 4% with an excess lapse rate at the end of the index period of 95%.
	Company's own credit and risk margin	82 - 137 basis points added on to discount rate	60 - 90 basis points added on to discount rate

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Fair Value: Carrying amounts and estimated fair values of the Company's financial instruments which are not measured at fair value on a recurring basis (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Carrying amounts and estimated fair values of the Company's financial instruments which are not measured at fair value on a recurring basis

	2015			2014
	Carrying	Estimated		Carrying	Estimated
	Amount	Fair Value	Level	Amount	Fair Value	Level
Financial instruments recorded as assets:
Cash	$ 1,013	$ 1,013	1	$ 1,921	$ 1,921	1
Policy loans	-	n/a	n/a	104	n/a	n/a
Assets on deposit	825,552	699,721	2	304,434	294,710	2
Financial instruments recorded as liabilities:
Investment-type contracts	825,552	699,721	2	304,434	294,710	2

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Income Tax: Schedule of Components of Income Tax Expense (Benefit) (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of Components of Income Tax Expense (Benefit)

	2015	2014	2013
Current tax expense (benefit)	$ 1,451	$ (186)	$ (426)
Deferred tax expense (benefit)	(2)	197	675
Total income tax expense	$ 1,449	$ 11	$ 249

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Income Tax: Schedule of Effective Income Tax Rate Reconciliation (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of Effective Income Tax Rate Reconciliation

	2015		2014		2013
	Amount	Rate	Amount	Rate	Amount	Rate
Tax expense computed at federal corporate tax rate	$1,480	35.0%	$60	35.0%	$133	35.0%
Income tax expense (benefit) related to prior years	(31)	(0.7)	(41)	(23.9)	116	30.5
Other	-	-	(8)	(4.7)	-	-
Total income tax expense	$1,449	34.3%	$11	6.4%	$249	65.5%

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Income Tax: Schedule of Deferred Tax Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of Deferred Tax Assets and Liabilities

	2015	2014
Deferred tax assets
Policy liabilities and reserves	$36	$81
Unrealized investment losses	122	-
Investments	168	276
Accrued expenses	94	26
Deferred policy acquisition costs	309	230
Other	1	3
Gross deferred tax assets	730	616
Deferred tax liabilities
Unrealized investment gains	-	118
Deferred reinsurance expense	47	56
Other	1	2
Gross deferred tax liabilities	48	176
Net deferred tax asset	$682	$440

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Income Tax: Schedule of Unrecognized Tax Benefits Roll Forward (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of Unrecognized Tax Benefits Roll Forward

	2015	2014
Balance at January 1	$ 1	$ 7
Reductions for prior years' tax positions	0	(6)
Balance at December 31	$ 1	$ 1

XML

Related Party Transactions: Schedule of Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of Related Party Transactions

	2015	2014
Receivable from:
CMFG Life	$ 4,518	$ 2,765
Total	$ 4,518	$ 2,765
Payable to:
CUNA Brokerage Services, Inc.	$ 2,478	$ 1,290
MEMBERS Capital Advisors, Inc.	2	2
Total	$ 2,480	$ 1,292

XML

Reinsurance: Effects of Reinsurance (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Effects of Reinsurance

	2015	2014	2013
Face amount of policies in force	$110,827	$123,223	$147,371
Premiums:
Direct - written	$2,384	$2,613	$2,811
Direct - change in unearned	-	-	-
Direct - earned	2,384	2,613	2,811
Ceded to affiliate - written	(3,559)	(2,482)	(2,671)
Ceded to affiliate - change in unearned	-	(4)	(1)
Ceded to affiliate - earned	(3,559)	(2,486)	(2,672)
Premiums - written, net	(1,175)	131	140
Premiums - change in unearned, net	-	(4)	(1)
Premiums, net	$(1,175)	$127	$139
Contract charges:
Direct	$742	$472	$461
Ceded to affiliate	(724)	(448)	(415)
Contract charges, net	$18	$24	$46
Claims, benefits and losses incurred:
Direct	$1,784	$1,883	$2,953
Ceded to affiliate	(2,988)	(1,771)	(2,774)
Claims, benefits and losses, net	$(1,204)	$112	$179
Interest credited to policyholder account balances:
Direct	$9,833	$2,457	$320
Ceded to affiliate	(9,829)	(2,449)	(311)
Interest credited to policyholder account balances, net	$4	$8	$9

XML

Statutory Financial Data and Dividend Restrictions: Schedule of certain statutory basis financial information (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of certain statutory basis financial information

	Statutory Basis		Statutory Basis
	Capital and Surplus		Net Income (Loss)
	2015	2014	2015	2014	2013
MLIC	$ 21,111	$ 18,366	$ 1,112	$ (1,792)	$ (1,562)

XML

Accumulated Other Comprehensive Income: Schedule of Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of Accumulated Other Comprehensive Income (Loss)

		Accumulated
	Unrealized	Other
	Investment	Comprehensive
	Gains (Loss)	Income (Loss)
Balance, January 1, 2013	$ 423	$ 423
Change in unrealized holding gains (losses),net of tax - ($105)	(154)	(154)
Balance, December 31, 2013	269	269
Change in unrealized holding gains (losses), net of tax - ($25)	(47)	(47)
Balance, December 31, 2014	222	222
Change in unrealized holding gains (losses), net of tax - ($240)	(447)	(447)
Balance, December 31, 2015	$ (225)	$ (225)

XML

Accumulated Other Comprehensive Income: Reclassification out of Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Reclassification out of Accumulated Other Comprehensive Income

	2015	2014	2013
Reclassifications from accumulated other comprehensive income (losses)
Unrealized gains on available-for-sale securities included in net realized investment losses	$ 15	$ -	$ -
Total reclassifications from accumulated other comprehensive income (losses)	15	-	-
Tax expense	5	-	-
Net reclassification from accumulated other comprehensive income (losses)	$ 10	$ -	$ -

XML

Business Segment Information: Schedule of Segment Reporting Information, by Segment (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of Segment Reporting Information, by Segment

Year ended or as of December 31, 2015	Life and Health	Annuities	Total
Revenues
Life and health premiums, net	$ (1,175)	$ -	$ (1,175)
Contract charges	18	-	18
Net investment income	366	-	366
Net realized investment gains	117	-	117
Other income	5,336	-	5,336
Total revenues	4,662	-	4,662
Benefits and expenses
Life and health insurance claims and benefits, net	(1,204)	-	(1,204)
Interest credited to policyholder account balances	4	-	4
Operating and other expenses	1,633	-	1,633
Total benefits and expenses	433	-	433
Income before income taxes	4,229	-	4,229
Income tax expense	1,449	-	1,449
Net income	2,780	-	2,780
Change in unrealized (losses), net of tax (benefit)	(447)	-	(447)
Other comprehensive (loss)	(447)	-	(447)
Total comprehensive income	$ 2,333	$ -	$ 2,333
Reinsurance recoverable from affiliate	$ 24,628	$ -	$ 24,628
Assets on deposit	-	947,595	947,595
Claim and policy benefit reserves - life and health	21,077	460	21,537
Policyholder account balances	3,473	947,595	951,068

The following table sets forth financial information regarding the Company’s two reportable business segments for the year ended December 31, 2014. 

Year ended or as of December 31, 2014	Life and Health	Annuities	Total
Revenues
Life and health premiums, net	$ 127		$ 127
Contract charges	24	-	24
Net investment income	278	-	278
Net realized investment gains	-	-	-
Other income	-	-	-
Total revenues	429	-	429
Benefits and expenses
Life and health insurance claims and benefits, net	112	-	112
Interest credited to policyholder account balances	8	-	8
Operating and other expenses	137	-	137
Total benefits and expenses	257	-	257
Income before income taxes	172	-	172
Income tax expense	11	-	11
Net income	161	-	161
Change in unrealized (losses), net of tax (benefit)	(47)	-	(47)
Other comprehensive (loss)	(47)	-	(47)
Total comprehensive (loss)	$ 114	$ -	$ 114
Reinsurance recoverable from affiliate	$ 25,199	$ -	$ 25,199
Assets on deposit	-	349,937	349,937
Claim and policy benefit reserves - life and health	22,035	333	22,368
Policyholder account balances	3,612	349,937	353,549

The following table sets forth financial information regarding the Company’s two reportable business segments for the year ended December 31, 2013.

Year ended or as of December 31, 2013	Life and Health	Annuities	Total
Revenues
Life and health premiums, net	$ 139	$ -	$ 139
Contract charges	46	-	46
Net investment income	176	-	176
Net realized investment gains	-	-	-
Other income	293	-	293
Total revenues	654	-	654
Benefits and expenses
Life and health insurance claims and benefits, net	179	-	179
Interest credited to policyholder account balances	9	-	9
Operating and other expenses	86	-	86
Total benefits and expenses	274	-	274
Income before income taxes	380	-	380
Income tax expense	249	-	249
Net income	131	-	131
Change in unrealized (losses), net of tax (benefit)	(154)	-	(154)
Other comprehensive (loss)	(154)	-	(154)
Total comprehensive (loss)	$ (23)	$ -	$ (23)
Reinsurance recoverable from affiliate	$ 25,525	$ -	$ 25,525
Assets on deposit	-	89,313	89,313
Claim and policy benefit reserves - life and health	23,196	-	23,196
Policyholder account balances	3,734	89,313	93,047

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Nature of Business: Schedule of states with premiums greater than 5% of total direct premium and with deposits on annuity contracts greater than 5% of total deposits (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Direct Life and Health Premiums greater than 5% of total direct premiums	2015.00%	2014.00%	2013.00%
Deposits on Annuity Contracts greater than 5% of total deposits	2015.00%	2014.00%	2013.00%
MICHIGAN
Direct Life and Health Premiums greater than 5% of total direct premiums	63.00%	63.00%	64.00%
Deposits on Annuity Contracts greater than 5% of total deposits	8.00%	12.00%	11.00%
TEXAS
Direct Life and Health Premiums greater than 5% of total direct premiums	23.00%	22.00%	22.00%
Deposits on Annuity Contracts greater than 5% of total deposits	7.00%	8.00%
CALIFORNIA
Direct Life and Health Premiums greater than 5% of total direct premiums	5.00%	5.00%	5.00%
Deposits on Annuity Contracts greater than 5% of total deposits	8.00%
INDIANA
Deposits on Annuity Contracts greater than 5% of total deposits	6.00%	6.00%	6.00%
IOWA
Deposits on Annuity Contracts greater than 5% of total deposits	5.00%	8.00%	17.00%
WISCONSIN
Deposits on Annuity Contracts greater than 5% of total deposits	5.00%	7.00%	7.00%
PENNSYLVANIA
Deposits on Annuity Contracts greater than 5% of total deposits	5.00%	6.00%	5.00%
FLORIDA
Deposits on Annuity Contracts greater than 5% of total deposits	5.00%	5.00%
WASHINGTON
Deposits on Annuity Contracts greater than 5% of total deposits	5.00%
RHODE ISLAND
Deposits on Annuity Contracts greater than 5% of total deposits		8.00%	6.00%
UTAH
Deposits on Annuity Contracts greater than 5% of total deposits			5.00%

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Summary of Significant Accounting Policies: Policyholder Account Balances (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Average credited interest rate	4.50%	4.50%	4.50%
Future minimum guaranteed interest rate	4.50%

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Investments: Investments in Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2015		Dec. 31, 2014
Amortized cost of debt securities available for sale	$ 12,698		$ 12,854
Debt securities, available for sale, at fair value	12,351	[1]	13,194	[2]
US Government Agencies Debt Securities
Amortized cost of debt securities available for sale	10,333		9,888
Available-for-sale Debt Securities Gross Unrealized Gain	26		103
Available-for-sale Debt Securities, Gross Unrealized Loss	(546)		(4)
Debt securities, available for sale, at fair value	9,813		9,987
Residential Mortgage Backed Securities
Amortized cost of debt securities available for sale	2,365		2,966
Available-for-sale Debt Securities Gross Unrealized Gain	173		241
Debt securities, available for sale, at fair value	2,538		3,207
Debt Securities
Amortized cost of debt securities available for sale	12,698		12,854
Available-for-sale Debt Securities Gross Unrealized Gain	199		344
Available-for-sale Debt Securities, Gross Unrealized Loss	(546)		(4)
Debt securities, available for sale, at fair value	$ 12,351		$ 13,194

[1] Amortized cost - $12,698

[2] Amortized cost - $12,854

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Investments: Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Dec. 31, 2015		Dec. 31, 2014
Amortized cost of debt securities available for sale	$ 12,698		$ 12,854
Debt securities, available for sale, at fair value	12,351	[1]	13,194	[2]
Residential Mortgage Backed Securities
Amortized cost of debt securities available for sale	2,365		2,966
Debt securities, available for sale, at fair value	2,538		3,207
Debt Securities
Amortized cost of debt securities available for sale	12,698		12,854
Debt securities, available for sale, at fair value	12,351		$ 13,194
Due in one year or less
Amortized cost of debt securities available for sale	1,261
Debt securities, available for sale, at fair value	1,280
Due after one year through five years
Amortized cost of debt securities available for sale	315
Debt securities, available for sale, at fair value	322
Due after ten years
Amortized cost of debt securities available for sale	8,757
Debt securities, available for sale, at fair value	$ 8,211

[1] Amortized cost - $12,698

[2] Amortized cost - $12,854

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Investments: Investment Income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Gross Investment Income, Operating	$ 394	$ 312	$ 289
Investment Income, Investment Expense	(28)	(34)	(113)
Net Investment Income	366	278	176
Debt Securities
Gross Investment Income, Operating	389	304	275
Policy loans
Gross Investment Income, Operating	$ 5	$ 8	8
Other investments
Gross Investment Income, Operating			$ 6

XML

Investments: Realized Gain (Loss) on Investments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)
Details
Debt Securities, Gross gains on sales	$ 117
Debt Securities, Net realized investment gains	$ 117

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Investments (Details) - USD ($)				12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Proceeds from sale of debt securities				$ 8,389	$ 0	$ 0
Fair value of debt security in unrealized loss position	$ 8,210			8,210
Gross unrealized losses	546	$ 4	$ 0
Embedded Derivatives, Assets	122,043	45,503		122,043	45,503
Embedded Derivatives, Liabilities	122,043	45,503		122,043	45,503
Embedded Derivatives, Increase (Decrease) in fair value				3,591	9,581	$ 592
Securities on deposit with regulatory jurisdictions	$ 1,732	$ 1,854		$ 1,732	$ 1,854

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Investments: Unrealized Gain (Loss) on Investments (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net unrealized investment gains included in AOCI	$ (225)	$ 222	$ 269
Debt Securities
Net unrealized investment gains included in AOCI	(347)	340	412
DeferredIncomeTaxesMember
Net unrealized investment gains included in AOCI	$ 122	$ (118)	$ (143)

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Fair Value: Fair Value Assets measured on a Recurring Basis (Details) - USD ($)	Dec. 31, 2015		Dec. 31, 2014
Assets, Fair Value Disclosure	$ 150,474		$ 62,378
Cash and Cash Equivalents
Assets, Fair Value Disclosure	16,080	[1]	3,681	[2]
US Government Agencies Debt Securities
Assets, Fair Value Disclosure	9,813		9,987
Residential Mortgage Backed Securities
Assets, Fair Value Disclosure	2,538		3,207
Debt Securities
Assets, Fair Value Disclosure	12,351		13,194
Derivative
Assets, Fair Value Disclosure	122,043		45,503
Fair Value, Inputs, Level 1
Assets, Fair Value Disclosure	16,080		3,681
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents
Assets, Fair Value Disclosure	16,080	[1]	3,681	[2]
Fair Value, Inputs, Level 2
Assets, Fair Value Disclosure	12,351		13,194
Fair Value, Inputs, Level 2 | US Government Agencies Debt Securities
Assets, Fair Value Disclosure	9,813		9,987
Fair Value, Inputs, Level 2 | Residential Mortgage Backed Securities
Assets, Fair Value Disclosure	2,538		3,207
Fair Value, Inputs, Level 2 | Debt Securities
Assets, Fair Value Disclosure	12,351		13,194
Fair Value, Inputs, Level 3
Assets, Fair Value Disclosure	122,043		45,503
Fair Value, Inputs, Level 3 | Derivative
Assets, Fair Value Disclosure	$ 122,043		$ 45,503

[1] Excludes cash of $1,013 that is not subject to fair value accounting.

[2] Excludes cash of $769 that is not subject to fair value accounting.

XML

Fair Value: Schedule of changes in assets and liabilities classified as Level 3 (Details) - USD ($)		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Assets classified as level 3		$ 45,503	$ 8,652
Assets classified as level 3, Purchases		73,631	27,522
Assets classified as level 3, Maturities		(682)	(252)
Assets classified as level 3, Earnings	[1]	3,591	9,581
Assets classified as level 3		122,043	45,503
Liabilities classified as level 3		45,503	8,652
Liabilities classified as level 3, Purchases		73,631	27,522
Liabilities classified as level 3, Earnings	[1]	3,591	9,581
Liabilities classified as level 3		122,043	45,503
Derivative
Assets classified as level 3		45,503	8,652
Assets classified as level 3, Purchases		73,631	27,522
Assets classified as level 3, Maturities		(682)	(252)
Assets classified as level 3, Earnings	[1]	3,591	9,581
Assets classified as level 3			45,503
Liabilities classified as level 3		45,503	8,652
Liabilities classified as level 3, Purchases		73,631	27,522
Liabilities classified as level 3, Earnings	[1]	3,591	9,581
Liabilities classified as level 3		$ 122,043	$ 45,503

[1] Included in earnings is realized gains and losses on embedded derivatives.

XML

Fair Value: Carrying amounts and estimated fair values of the Company's financial instruments which are not measured at fair value on a recurring basis (Details)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Investment Contracts
Financial instruments recorded as assets, Carrying Amount	$ 825,552	$ 304,434
Financial instruments recorded as assets, Estimated Fair Value	$ 699,721	$ 294,710
Financial instruments recorded as assets, Level	2	2
Cash
Financial instruments recorded as assets, Carrying Amount	$ 1,013	$ 1,921
Financial instruments recorded as assets, Estimated Fair Value	$ 1,013	$ 1,921
Financial instruments recorded as assets, Level	1	1
Policy loans
Financial instruments recorded as assets, Carrying Amount		$ 104
Financial instruments recorded as assets, Estimated Fair Value
Financial instruments recorded as assets, Level
Assets on deposit
Financial instruments recorded as assets, Carrying Amount	$ 825,552	$ 304,434
Financial instruments recorded as assets, Estimated Fair Value	$ 699,721	$ 294,710
Financial instruments recorded as assets, Level	2	2

XML

Income Tax: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Current Income Tax Expense (Benefit)	$ 1,451	$ (186)	$ (426)
Deferred Income Tax Expense (Benefit)	(2)	197	675
Income tax expense (benefit)	$ 1,449	$ 11	$ 249

XML

Income Tax: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	$ 1,480	$ 60	$ 133
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%	35.00%	35.00%
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount	$ (31)	$ (41)	$ 116
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent	(0.70%)	(23.90%)	30.50%
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount		$ (8)
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent		(4.70%)
Total Income Tax Expense (Benefit)	$ 1,449	$ 11	$ 249
Effective Income Tax Rate Reconciliation, Percent	34.30%	6.40%	65.50%

XML

Income Tax: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets, Gross
Deferred Tax Assets, Policy Liabilities and Reserves	$ 36	$ 81
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross	122
Deferred Tax Assets, Investments	168	276
Deferred Tax Assets, Tax Deferred Expense	94	26
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities	309	230
Deferred Tax Assets, Other	1	3
Deferred Tax Assets, Gross	730	616
Deferred Tax Liabilities, Gross
Deferred Tax Liabilities, Unrealized Gains on Trading Securities		118
Deferred Tax Liabilities, Deferred Insurance Expense	47	56
Deferred Tax Liabilities, Other	1	2
Deferred Tax Liabilities, Gross	48	176
Net deferred tax asset	$ 682	$ 440

XML

Income Tax: Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Details
Unrecognized Tax Benefits, Beginning Balance	$ 1	$ 7
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	0	(6)
Unrecognized Tax Benefits, Ending Balance	$ 1	$ 1

XML

Income Tax (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Details
Accruals for payment of interest and penalties	$ 7	$ 7
Deferred Tax Assets, Capital Loss Carryforwards	0	0
Operating Loss Carryforwards	0	0
Tax Credit Carryforward, Amount	$ 0	$ 0

XML

Related Party Transactions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Shared Expenses remibursed	$ 8,447	$ 5,641	$ 2,492

XML

Related Party Transactions: Schedule of Related Party Transactions (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Due from Related Parties, Current	$ 4,518	$ 2,765
Due to Related Parties, Current	2,480	1,292
CMFG Life Insurance Company
Due from Related Parties, Current	4,518	2,765
CUNA Brokerage Services, Inc
Due to Related Parties, Current	2,478	1,290
MEMBERS Capital Advisors, Inc.
Due to Related Parties, Current	$ 2	$ 2

XML

Reinsurance (Details) - USD ($) $ in Thousands		12 Months Ended
	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Ceded Premiums Earned	$ 1,297	$ (3,559)	$ (2,486)	$ (2,672)
Policyholder Benefits and Claims Incurred, Ceded	$ 1,244	$ (2,988)	$ (1,771)	$ (2,774)

XML

Reinsurance: Effects of Reinsurance (Details) - USD ($) $ in Thousands		12 Months Ended
	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Face amount of policies in force		$ 110,827	$ 123,223	$ 147,371
Premiums Written and Earned
Direct Premiums Written		2,384	2,613	2,811
Direct Premiums Earned		2,384	2,613	2,811
Ceded Premiums Written		(3,559)	(2,482)	(2,671)
Ceded Premiums Unearned			(4)	(1)
Ceded Premiums Earned	$ 1,297	(3,559)	(2,486)	(2,672)
Premiums written, net		(1,175)	131	140
Change in unearned premiums, net			(4)	(1)
Premiums, Net		(1,175)	127	139
Contract revenue direct		742	472	461
Contract revenue ceded to affiliate		(724)	(448)	(415)
Contract charges		18	24	46
Policyholder Benefits and Claims Incurred, Net
Policyholder Benefits and Claims Incurred, Direct		1,784	1,883	2,953
Policyholder Benefits and Claims Incurred, Ceded	$ 1,244	(2,988)	(1,771)	(2,774)
Policyholder Benefits and Claims Incurred, Net		(1,204)	112	179
Interest credited to policyholder account balances ceded to affiliate		9,833	2,457	320
Interest credited to policyholder account balances, ceded to affiliate		(9,829)	(2,449)	(311)
Interest credited to policyholder account balances		$ 4	$ 8	$ 9

XML

Statutory Financial Data and Dividend Restrictions: Schedule of certain statutory basis financial information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Statutory Accounting Practices, Statutory Capital and Surplus, Balance	$ 21,111	$ 18,366
Statutory Accounting Practices, Statutory Net Income Amount	$ 1,112	$ (1,792)	$ (1,562)

XML

Accumulated Other Comprehensive Income: Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Details
Unrealized Investment Gain (Loss), Balance	$ 222		$ 269		$ 423
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	222	[1]	269		423
Unrealized Gain (Loss) on Investments	(447)	[2]	(47)	[3]	(154)	[4]
Change in unrealized holding gains	(447)	[2]	(47)	[3]	(154)	[4]
Unrealized Investment Gain (Loss), Balance	(225)		222		269
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	$ (225)	[5]	$ 222	[1]	$ 269

[1] Accumulated other comprehensive income, net of tax expense - $118

[2] Change in unrealized holding gains, net of tax - ($240)

[3] Change in unrealized holding gains, net of tax - ($25)

[4] Change in unrealized holding gains, net of tax - ($105)

[5] Accumulated other comprehensive income, net of tax benefit - $(122)

XML

Accumulated Other Comprehensive Income: Reclassification out of Accumulated Other Comprehensive Income (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)
Details
Accumulated Other Comprehensive Income Reclassification for unrealized net gains on available-for-sale securities	$ 15
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	15
Reclassifications from accumulated other comprehensive income, tax expense (benefit)	5
Reclassification adjustment for (gains) included in net income, net of tax expense (benefit)	$ 10	[1]

[1] Net of tax (benefit) - ($5).

XML

Business Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues
Life and health premiums, net		$ (1,175)	$ 127	$ 139
Contract charges		18	24	46
Net investment income		366	278	176
Debt Securities, Net realized investment gains		117
Other Income		5,336		293
Total revenues		4,662	429	654
Benefits and expenses
Life and health insurance claims and benefits, net		(1,204)	112	179
Interest credited to policyholder account balances		4	8	9
Operating and other expenses	[1]	1,633	137	86
Total benefits and expenses		433	257	274
Income (loss) before income taxes		4,229	172	380
Income tax expense (benefit)		1,449	11	249
Net Income (Loss)		2,780	161	131
Change in unrealized gains (losses), net of tax (benefit)		(447)	(47)	(154)
Other Comprehensive Income (Loss)		(447)	(47)	(154)
Total Comprehensive Income (Loss)		2,333	114	(23)
Reinsurance recoverable from affiliate		24,628	25,199	25,525
Assets on deposit		947,595	349,937	89,313
Claim and policy benefit reserves - life and health		21,537	22,368	23,196
Policyholder account balances		951,068	353,549	93,047
Life and Health
Revenues
Life and health premiums, net		(1,175)	127	139
Contract charges		18	24	46
Net investment income		366	278	176
Debt Securities, Net realized investment gains		117
Other Income		5,336		293
Total revenues		4,662	429	654
Benefits and expenses
Life and health insurance claims and benefits, net		(1,204)	112	179
Interest credited to policyholder account balances		4	8	9
Operating and other expenses		1,633	137	86
Total benefits and expenses		433	257	274
Income (loss) before income taxes		4,229	172	380
Income tax expense (benefit)		1,449	11	249
Net Income (Loss)		2,780	161	131
Change in unrealized gains (losses), net of tax (benefit)		(447)	(47)	(154)
Other Comprehensive Income (Loss)		(447)	(47)	(154)
Total Comprehensive Income (Loss)		2,333	114	(23)
Reinsurance recoverable from affiliate		24,628	25,199	25,525
Claim and policy benefit reserves - life and health		21,077	22,035	23,196
Policyholder account balances		3,473	3,612	3,734
Annuities
Benefits and expenses
Assets on deposit		947,595	349,937	89,313
Claim and policy benefit reserves - life and health		460	333
Policyholder account balances		$ 947,595	$ 349,937	$ 89,313

[1] Note 6.