Note 7 – Investments in Securities

The aggregate estimated fair value, gross unrealized holding gains, gross unrealized holding losses and cost or amortized cost for securities by major security type are as follows:

		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair
September 30, 2011	Cost	Gains	Losses	Value
Fixed Maturities-
Available-for-sale, at fair value:
Obligations of states and political subdivisions	$ 61,632,682	$ 5,219,246	$ 8,990	$ 66,842,938
Corporate debt securities	11,144,741	1,149,633	$ 153,752	12,140,622
Auction rate securities	4,616,864	3,536	-	4,620,400
Total	$ 77,394,287	$ 6,372,415	$ 162,742	$ 83,603,960
Equity Securities, available-for-sale at fair value-
Common stocks and nonredeemable preferred stocks	$ 14,693,945	$ 3,410,160	$ 334,086	$ 17,770,019
Total	$ 14,693,945	$ 3,410,160	$ 334,086	$ 17,770,019
Short-term investments-
Certificates of deposit and other	$ 21,723,492	$ -	$ -	$ 21,723,492
Total	$ 21,723,492	$ -	$ -	$ 21,723,492

December 31, 2010
Fixed Maturities-
Available-for-sale, at fair value:
Obligations of states and political subdivisions	$ 64,120,509	$ 3,248,821	$ 166,690	$ 67,202,640
Corporate debt securities	12,258,359	1,123,051	22,737	13,358,673
Auction rate securities	5,405,394	66,850	-	5,472,244
Total	$ 81,784,262	$ 4,438,722	$ 189,427	$ 86,033,557
Equity Securities, available-for-sale at fair value-
Common stocks and nonredeemable preferred stocks	$ 9,458,773	$ 4,430,175	$ 16,578	$ 13,872,370
Total	$ 9,458,773	$ 4,430,175	$ 16,578	$ 13,872,370
Short-term investments-
Certificates of deposit and other	$ 27,203,550	$ -	$ -	$ 27,203,550
Total	$ 27,203,550	$ -	$ -	$ 27,203,550

The scheduled maturities of fixed maturity securities at September 30, 2011 were as follows:
	Available-for-Sale
	Amortized	Fair
	Cost	Value
Due in one year or less	$ 6,219,802	$ 6,362,555
Due after one year through five years	29,804,598	31,883,803
Due five years through ten years	32,879,859	36,180,952
Due after ten years	8,490,028	9,176,650
Total	$77,394,287	$83,603,960

Gross realized gains and losses on securities for the nine months ended September 30 are summarized as follows:

	2011	2010
Gross realized gains:

Obligations of states and political subdivisions	$ 20,845	$ 19,927
Common stocks and nonredeemable preferred stocks	138,290	440,797
Auction rate securities	43,200	-
Total	$ 202,335	$ 460,724

Gross realized losses:
Obligations of states and political subdivisions	$ -	$ -

Common stocks and nonredeemable preferred stocks

(19,024)

Other than temporary impairment of securities	(214,077)	(54,395)
Total	(214,077)	(73,419)
Net realized (loss) gain	$ (11,742)	$ 387,305

Realized gains and losses are determined on the specific identification method. Also included in net realized gain on sales in the Consolidated Statements of Income are impairments of other investments and loss on sales of property acquired in the settlement of claims totaling $(67,430) and $(81,239) for the nine months ended September 30, 2011 and 2010, respectively.

The following table presents the gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at September 30, 2011 and December 31, 2010.

	Less than 12 Months		12 Months or Longer		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
	Value	Losses	Value	Losses	Value	Losses
September 30, 2011
Obligations of states and political subdivisions Corporate debt securities	$ 1,033,880 1,969,100	$ (8,990) (153,752)	$ - -	$ - -	$ 1,033,880 1,969,100	$ (8,990) (153,752)
Total Fixed Income Securities	$ 3,002,980	$ (162,742)	$ -	$ -	$ 3,002,980	$ (162,742)
Equity Securities	4,501,592	(334,086)	-	-	4,501,592	(334,086)
Total temporarily impaired securities	$ 7,504,572	$ (496,828)	$ -	$ -	$ 7,504,572	$ (496,828)

	Less than 12 Months		12 Months or Longer		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
	Value	Losses	Value	Losses	Value	Losses
December 31, 2010
Obligations of states and political subdivisions	$ 7,008,818	$ (166,690)	$ -	$ -	$7,008,818	$ (166,690)
Corporate debt securities	1,077,263	(22,737)	-	-	1,077,263	(22,737)
Total Fixed Income Securities	$ 8,086,081	$ (189,427)	$ -	$ -	$8,086,081	$ (189,427)
Equity Securities	746,388	(7,710)	220,635	(8,868)	967,023	(16,578)
Total temporarily impaired securities	$ 8,832,469	$ (197,137)	$ 220,635	$ (8,868)	$9,053,104	$ (206,005)

As of September 30, 2011, the Company held $3,002,980 in fixed maturity securities with unrealized losses of $162,742. As of December 31, 2010, the Company held $8,086,081 in fixed maturity securities with unrealized losses of $189,427. The decline in fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over treasury securities. Because the Company does not have the intent to sell these securities and will likely not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired.

As of September 30, 2011, the Company held $4,501,592 in equity securities with unrealized losses of $334,086. As of December 31, 2010, the Company held $967,023 in equity securities with unrealized losses of $16,578. The unrealized losses related to holdings of equity securities were caused by market changes that the Company considers to be temporary. Since the Company has the intent and ability to hold these equity income securities until a recovery of fair value, the Company does not consider these investments other-than-temporarily impaired.

Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 26 securities had unrealized losses at September 30, 2011 and December 31, 2010. Reviews of the values of securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods resulting in a realized loss. During 2011, the Company recorded other-than-temporary impairment charges in the amount of $242,981 related to securities and other assets, of which $34,952 was related to Level 3 auction rate securities that have had a history of being below cost and a change in the Company's intent not to sell these securities. During 2010, the Company recorded other-than-temporary impairment charges in the amount of $382,692 related to securities and other assets, of which, $281,156 was related to Level 3 auction rate securities. Other-than-temporary impairment charges are included in net realized gain on investments in the Consolidated Statements of Income.