Reserves For Claims

3 Months Ended

Mar. 31, 2013

Reserves For Claims [Abstract]

Reserves For Claims

Note 2 - Reserves for Claims

     Transactions in the reserves for claims for the three months ended March 31, 2013 and the year ended December 31, 2012 are summarized as follows:

		March 31, 2013			December 31, 2012
Balance, beginning of period	$	39,078,000		$	37,996,000
Provision, charged to operations		(389,058	)		6,072,115
Payments of claims, net of recoveries		(380,942	)		(4,990,115	)
Ending balance	$	38,308,000		$	39,078,000

     The total reserve for all reported and unreported losses the Company incurred through March 31, 2013 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 incurred claims of policyholders which may be reported in the future. 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, 2013. The Company 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.

     Positive legal developments in several claim matters, coupled with a significant current quarter recovery of a claim payment made in a prior period, contributed to a benefit in the claims provision during the quarter. In addition, claims experience for several recent policy years continued to emerge favorably in comparison with prior expectations.

     A summary of the Company's loss reserves, broken down into its components of known title claims and incurred but not reported claims ("IBNR"), follows:

		March 31, 2013	%		December 31, 2012	%
Known title claims	$	4,288,643	11.2	$	5,166,370	13.2
IBNR		34,019,357	88.8		33,911,630	86.8
Total loss reserves	$	38,308,000	100.0	$	39,078,000	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.