Reserves For Claims

3 Months Ended

Mar. 31, 2014

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Reserves For Claims

Reserves for Claims

Transactions in the reserves for claims for the three months ended March 31, 2014 and the year ended December 31, 2013 are summarized as follows:

	March 31, 2014			December 31, 2013
Balance, beginning of period	$	35,360,000		$	39,078,000
Provision (benefit), charged to operations	2,375,383			(571,596		)
Payments of claims, net of recoveries	(1,270,383		)	(3,146,404		)
Ending balance	$	36,465,000		$	35,360,000

The total reserve for all reported and unreported losses the Company incurred through March 31, 2014 is represented by the reserves for claims. The Company's reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy claims that have been incurred but not yet reported ("IBNR"). Despite the variability of such estimates, management believes that the reserves are adequate to cover claim losses which might result from pending and future claims under policies issued through March 31, 2014.  Management continually reviews and adjusts its reserve estimates to reflect its loss experience and any new information that becomes available.  Adjustments resulting from such reviews may be significant.

A summary of the Company’s loss reserves, broken down into its components of known title claims and IBNR, follows:

	March 31, 2014		%	December 31, 2013		%
Known title claims	$	5,259,119	14.4	$	4,670,809	13.2
IBNR	31,205,881		85.6	30,689,191		86.8
Total loss reserves	$	36,465,000	100.0	$	35,360,000	100.0

Claims and losses paid are charged to the reserves for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the Company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property.