Policy Liabilities

12 Months Ended

Dec. 31, 2014

Statement of Financial Position [Abstract]

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

Policy Liabilities

Various assumptions used to determine the future policy benefit reserves of life insurance include the following:  a) valuation interest rates from 4% to 9% per year; b) mortality assumptions are from the 1955 to 1960, 1965 to 1970, 1975 to 1980 and 2001 Select and Ultimate mortality tables; and c) withdrawals are based primarily on actual historical termination rates.

The following table presents information on changes in the liability for life, accident and health and property policy and contract claims for the years ended December 31, 2014, 2013 and 2012.

	For the Years Ended December 31,
	2014			2013		2012
	(In thousands)
Policy claims payable at January 1	$	9,488		11,015		10,020
Less:  reinsurance recoverable	686			1,188		1,171
Net balance at January 1	8,802			9,827		8,849
Acquisition of MGLIC	40			—		—
Add claims incurred, related to:
Current year	24,541			24,575		26,094
Prior years	(33		)	(417	)	(687	)
	24,508			24,158		25,407
Deduct claims paid, related to:
Current year	17,691			17,443		18,302
Prior years	7,049			7,740		6,127
	24,740			25,183		24,429
Net balance December 31	8,610			8,802		9,827
Plus:  reinsurance recoverable	950			686		1,188
Policy claims payable, December 31	$	9,560		9,488		11,015

The Company experienced favorable development in 2014 of which $0.6 million was primarily related to SPLIC. IRC Section 7702 remediation claims costs have added $591,000 to the prior years claims incurred making it look less favorable than actual experience.

The favorable developments in 2013 of $417,000 primarily related to CICA and the favorable development in 2012 of $687,000 was primarily related to the release of higher claim reserves in SPLIC due to longer claim reporting lags following Hurricane’s and the relocation of insured lives.  The claims related to these events have stabilized and the higher claim reserves are no longer deemed necessary.