9. INVESTMENTS

Investments of the Company's insurance subsidiaries are subject to the insurance laws of the state of their incorporation. These laws prescribe the kind, quality and concentration of investments that may be made by insurance companies. In general, these laws permit investments, within specified limits and subject to certain qualifications, in federal, state and municipal obligations, corporate bonds, preferred and common stocks and real estate mortgages. The Company believes that it is in compliance with these laws.

The amortized cost and estimated fair value of securities available-for-sale as of March 31, 2013 and December 31, 2012 are as follows. All securities are classified as available-for-sale and are carried at fair value.

			Gross		Gross
	Amortized		unrealized		unrealized		Estimated
March 31, 2013	cost		gains		losses		fair value
Securities available-for-sale:
Fixed maturity securities:
U.S. treasury	$	4,701,810	$	268,989	$	-	$	4,970,799
U.S. government-sponsored agencies		159,310,701		3,043,847		582,239		161,772,309
Obligations of states and political subdivisions		329,329,828		33,894,967		67,715		363,157,080
Commercial mortgage-backed		63,490,507		9,200,136		16,903		72,673,740
Residential mortgage-backed		58,455,975		1,927,975		218,053		60,165,897
Other asset-backed		9,139,115		1,471,606		-		10,610,721
Corporate		295,766,297		25,417,827		420,311		320,763,813
Total fixed maturity securities		920,194,233		75,225,347		1,305,221		994,114,359

Equity securities:
Common stocks:
Financial services		17,836,200		5,873,482		5,051		23,704,631
Information technology		10,214,044		4,731,138		17,389		14,927,793
Healthcare		14,348,658		6,842,978		-		21,191,636
Consumer staples		12,518,195		3,641,083		-		16,159,278
Consumer discretionary		9,667,997		7,931,936		-		17,599,933
Energy		16,486,079		6,941,549		165,787		23,261,841
Industrials		7,993,453		1,932,862		-		9,926,315
Other		17,142,219		3,149,263		86,870		20,204,612
Non-redeemable preferred stocks		8,332,437		650,322		48,000		8,934,759
Total equity securities		114,539,282		41,694,613		323,097		155,910,798
Total securities available-for-sale	$	1,034,733,515	$	116,919,960	$	1,628,318	$	1,150,025,157

			Gross		Gross
	Amortized		unrealized		unrealized		Estimated
December 31, 2012	cost		gains		losses		fair value
Securities available-for-sale:
Fixed maturity securities:
U.S. treasury	$	4,697,762	$	287,140	$	-	$	4,984,902
U.S. government-sponsored agencies		159,548,303		3,228,302		333,975		162,442,630
Obligations of states and political subdivisions		335,188,220		35,776,373		2,479		370,962,114
Commercial mortgage-backed		69,952,036		10,412,989		15,843		80,349,182
Residential mortgage-backed		46,286,598		1,777,113		274,107		47,789,604
Other asset-backed		9,720,662		1,566,186		-		11,286,848
Corporate		295,450,358		26,774,604		245,385		321,979,577
Total fixed maturity securities		920,843,939		79,822,707		871,789		999,794,857

Equity securities:
Common stocks:
Financial services		14,496,766		3,630,544		33,922		18,093,388
Information technology		12,331,378		4,722,076		127,690		16,925,764
Healthcare		14,823,967		4,199,882		-		19,023,849
Consumer staples		12,019,892		1,593,039		3,404		13,609,527
Consumer discretionary		10,829,547		6,261,000		-		17,090,547
Energy		14,629,926		4,800,404		-		19,430,330
Industrials		7,638,633		936,183		-		8,574,816
Other		16,749,417		2,215,172		283,149		18,681,440
Non-redeemable preferred stocks		8,332,437		647,727		116,000		8,864,164
Total equity securities		111,851,963		29,006,027		564,165		140,293,825
Total securities available-for-sale	$	1,032,695,902	$	108,828,734	$	1,435,954	$	1,140,088,682

The following table sets forth the estimated fair value and gross unrealized losses associated with investment securities that were in an unrealized loss position as of March 31, 2013 and December 31, 2012, listed by length of time the securities were in an unrealized loss position.

March 31, 2013	Less than twelve months				Twelve months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		losses		value		losses		value		losses
Fixed maturity securities:
U.S. government-sponsored agencies	$	52,277,432	$	582,239	$	-	$	-	$	52,277,432	$	582,239
Obligations of states and political subdivisions		3,163,650		67,715		-		-		3,163,650		67,715
Commercial mortgage-backed		5,973,340		8,843		832,103		8,060		6,805,443		16,903
Residential mortgage-backed		6,709,177		218,053		-		-		6,709,177		218,053
Corporate		18,561,148		230,180		5,246,917		190,131		23,808,065		420,311
Total, fixed maturity securities		86,684,747		1,107,030		6,079,020		198,191		92,763,767		1,305,221

Equity securities:
Common stocks:
Financial services		793,858		5,051		-		-		793,858		5,051
Information technology		129,858		17,389		-		-		129,858		17,389
Energy		3,462,866		165,787		-		-		3,462,866		165,787
Other		2,221,249		86,870		-		-		2,221,249		86,870
Non-redeemable preferred stocks		-		-		1,952,000		48,000		1,952,000		48,000
Total, equity securities		6,607,831		275,097		1,952,000		48,000		8,559,831		323,097
Total temporarily impaired securities	$	93,292,578	$	1,382,127	$	8,031,020	$	246,191	$	101,323,598	$	1,628,318

December 31, 2012	Less than twelve months				Twelve months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		losses		value		losses		value		losses
Fixed maturity securities:
U.S. government-sponsored agencies	$	33,950,271	$	333,975	$	-	$	-	$	33,950,271	$	333,975
Obligations of states and political subdivisions		3,234,180		2,479		-		-		3,234,180		2,479
Commercial mortgage-backed		3,773,043		15,843		-		-		3,773,043		15,843
Residential mortgage-backed		5,303,741		274,107		-		-		5,303,741		274,107
Corporate		17,567,579		245,385		-		-		17,567,579		245,385
Total, fixed maturity securities		63,828,814		871,789		-		-		63,828,814		871,789

Equity securities:
Common stocks:
Financial services		881,580		33,922		-		-		881,580		33,922
Information technology		1,435,122		127,690		-		-		1,435,122		127,690
Consumer staples		90,080		3,404		-		-		90,080		3,404
Other		2,403,683		283,149		-		-		2,403,683		283,149
Non-redeemable preferred stocks		-		-		1,884,000		116,000		1,884,000		116,000
Total, equity securities		4,810,465		448,165		1,884,000		116,000		6,694,465		564,165
Total temporarily impaired securities	$	68,639,279	$	1,319,954	$	1,884,000	$	116,000	$	70,523,279	$	1,435,954

Unrealized losses on fixed maturity securities are not associated with any one asset class at March 31, 2013. Most of these securities are considered investment grade by credit rating agencies. Because management does not intend to sell these securities, does not believe it will be required to sell these securities before recovery, and believes it will collect the amounts due on these securities, it was determined that these securities were not "other-than-temporarily" impaired at March 31, 2013.

The unrealized losses on common stocks at March 31, 2013 are not concentrated in a particular sector or an individual security. The Company believes the unrealized losses on common stocks are primarily due to general fluctuations in the equity markets. Because the Company has the ability and intent to hold these securities for a reasonable amount of time to allow for recovery, it was determined that these securities were not "other-than-temporarily" impaired at March 31, 2013.

All of the Company's preferred stock holdings are perpetual preferred stocks. The Company evaluates perpetual preferred stocks with unrealized losses for "other-than-temporary" impairment similar to fixed maturity securities since they have debt-like characteristics such as periodic cash flows in the form of dividends and call features, are rated by rating agencies and are priced like other long-term callable fixed maturity securities. There was no evidence of any credit deterioration in the issuers of the preferred stocks and the Company does not intend to sell these securities before recovery, nor does it believe it will be required to sell these securities before recovery; therefore, it was determined that these securities were not "other-than-temporarily" impaired at March 31, 2013.

The amortized cost and estimated fair value of fixed maturity securities at March 31, 2013, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties.

	Amortized		Estimated
	cost		fair value
Securities available-for-sale:
Due in one year or less	$	18,153,853	$	18,431,127
Due after one year through five years		157,229,654		169,194,856
Due after five years through ten years		144,708,701		159,959,589
Due after ten years		478,155,543		513,689,150
Mortgage-backed securities		121,946,482		132,839,637
Totals	$	920,194,233	$	994,114,359

A summary of realized investment gains and (losses) is as follows:

	Three months ended
	March 31,
	2013			2012
Fixed maturity securities available-for-sale:
Gross realized investment gains	$	686,573		$	400,491

Equity securities available-for-sale:
Gross realized investment gains		2,090,607			8,605,675
Gross realized investment losses		(88,699	)		(87,837	)
"Other-than-temporary" impairments		(20,608	)		-
Totals	$	2,667,873		$	8,918,329

Gains and losses realized on the disposition of investments are included in net income. The cost of investments sold is determined on the specific identification method using the highest cost basis first. The amount reported as "other-than-temporary" impairments for the three months ended March 31, 2013 does not include any individually significant items.

The Company did not have any outstanding cumulative credit losses on fixed maturity securities that have been recognized in earnings from "other-than-temporary" impairments during the three months ended March 31, 2013 or 2012.