Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income Tax Expense

The components of income tax expense for the years ended December 31 are summarized as follows:



For the Years Ended December 31,	2013			2012			2011
Current:
Federal	$	4,873,000		$	5,018,000		$	2,515,000
State	69,000			163,000			29,000
Total current	4,942,000			5,181,000			2,544,000
Deferred:
Federal	1,805,215			(305,525		)	28,131
State	(1,215		)	13,525			(7,131		)
Total deferred	1,804,000			(292,000		)	21,000
Total	$	6,746,000		$	4,889,000		$	2,565,000

Schedule of Deferred Tax Assets and Liabilities

At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows:



For the Years Ended December 31,	2013			2012
Deferred income tax assets:
Accrued benefits and retirement services	$	3,074,164		$	2,889,350
Allowance for doubtful accounts	883,426			641,920
Other-than-temporary impairment of assets	319,962			344,701
Excess of book over tax depreciation	171,504			143,184
Postretirement benefit obligation	24,914			52,791
Reinsurance and commission payable	21,953			19,087
Net operating loss carryforward	5,000			12,000
Other	256,309			410,052
Total	4,757,232			4,513,085
Deferred income tax liabilities:
Net unrealized gain on investments	5,976,215			4,687,264
Recorded reserves for claims, net of statutory premium reserves	2,467,798			399,217
Other	327,202			319,760
Total	8,771,215			5,406,241
Net deferred income tax liabilities	$	(4,013,983	)	$	(893,156	)

Schedule of Reconciliation of Income Tax

A reconciliation of income tax as computed for the years ended December 31 at the U.S. federal statutory income tax rate of 34.1% for 2013 and 34% for 2012 and 2011, respectively, to income tax expense follows:



For the Years Ended December 31,	2013			2012			2011
Anticipated income tax expense	$	7,346,074		$	5,467,168		$	3,229,638
Increase (decrease) related to:
State income taxes, net of federal income tax benefit	45,471			107,580			19,140
Tax-exempt interest income (net of amortization)	(772,545		)	(757,005		)	(700,300		)
Other, net	127,000			71,257			16,522
Provision for income taxes	$	6,746,000		$	4,889,000		$	2,565,000