For the Company’s investments in U.S. government securities that do not have prices in active markets, agency securities, state and municipal governments, and corporate bonds, the Company obtains the fair values from its third-party valuation service and we evaluate the relevant inputs, assumptions, methodologies and conclusions associated with such valuations. The valuation service calculates prices for the Company’s investments in the aforementioned security types on a month-end basis by using several matrix-pricing methodologies that incorporate inputs from various sources. The model the valuation service uses to price U.S. government securities and securities of states and municipalities incorporates inputs from active market makers and inter-dealer brokers. To price corporate bonds and agency securities, the valuation service calculates non-call yield spreads on all issuers, uses option-adjusted yield spreads to account for any early redemption features, then adds final spreads to the U.S. Treasury curve as of quarter end. The inputs the valuation service uses in their calculations are not quoted prices in active markets, but are observable inputs, and therefore represent Level 2 inputs.

The following table presents information about the Company’s assets measured at fair value on a recurring basis. The Company assesses the levels for the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with the Company’s accounting policy regarding the recognitions of transfers between levels of the fair value hierarchy. As of June 30, 2019 and December 31, 2018, there were no transfers in or out of Level 1, 2, and 3.

The Company also invests in private limited partnerships and limited liability companies. This investment class has the potential for higher returns but also the potential for higher degrees of risk, including less than stable rates of returns and may provide less liquidity.

Limited Partnerships and Limited Liability Companies. Fair value estimates of the LPs and LLCs are based on their net asset values, as reported by the manager of the LP or LLC. The fair value of these investments is measured at net asset value and is excluded from the fair value hierarchy. For the current LPs, the Company may, as of the last day of each calendar quarter, upon at least 65 days’ prior written notice, withdrawal all or any portion of the balance in its investment. There is a 3 percent withdrawal fee if made during the first year of investment.

June 30, 2019	Total		Level 1		Level 2		Level 3
Invested Assets:	(In thousands)
Fixed maturity securities, available-for-sale:
U.S. government and agency securities	$	56,587	$	365	$	56,222	$	—
States, municipalities and political subdivisions		73,657		—		73,657		—
Special revenue		252,815		—		252,815		—
Industrial and miscellaneous		170,560		—		170,560		—
Total fixed maturity securities		553,619		365		553,254		—
Equity securities
Common stock		1,618		1,618		—		—
Total investments		555,237		1,983		553,254		—
Investment reported at NAV		22,761		—		—		—
Total investments	$	577,998	$	1,983	$	553,254	$	—

December 31, 2018	Total		Level 1		Level 2		Level 3
Invested Assets:	(In thousands)
Fixed maturity securities, available-for-sale:
U.S. government and agency securities	$	48,041	$	354	$	47,687	$	—
States, municipalities and political subdivisions		59,289		—		59,289		—
Special revenue		245,355		—		245,355		—
Industrial and miscellaneous		152,457		—		152,457		—
Redeemable preferred stocks		4,507		4,507		—		—
Total fixed maturity securities		509,649		4,861		504,788		—
Equity securities
Common stock		3,686		3,686		—		—
Non-redeemable preferred stock		12,770		12,770		—		—
Total equity securities		16,456		16,456		—		—
Investment reported at NAV		2,488		—		—		—
Total investments	$	528,593	$	21,317	$	504,788	$	—

Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets and goodwill which are recognized at fair value during the period in which an acquisition is completed, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for intangible assets acquired, were based on Level 3 unobservable inputs. For the quarters ended June 30, 2019 and 2018, these non-recurring fair values inputs consisted of brand, agent relationships, renewal rights, customer relations, trade names, non-compete and goodwill. To evaluate such assets for a potential impairment, we determine the fair value of the goodwill and intangible assets using a combination of a discounted cash flow approach and market approaches, which contain significant unobservable inputs and therefore are considered a Level 3 fair value measurement. The unobservable inputs in the analysis generally include future cash flow projections and a discount rate.

There were no non-recurring fair value adjustments to intangible assets and goodwill during the second quarters of 2019 and 2018. We record any measurement period adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill.