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
March 31, 2013		Cost		Gains		Losses		Value
Fixed maturities, available-for-sale, at fair value-
General obligations of U.S. states, territories
and political subdivisions	$	37,864,558	$	3,028,449	$	11,011	$	40,881,996
Special revenue obligations of U.S. states, territories and
political subdivisions		17,612,648		1,851,821		6,726		19,457,743
Corporate debt securities		15,042,627		1,185,407		0		16,228,034
Auction rate securities		917,820		12,980		0		930,800
Total	$	71,437,653	$	6,078,657	$	17,737	$	77,498,573
Equity securities, available-for-sale at fair value-
Common stocks and nonredeemable preferred stocks	$	20,842,586	$	10,047,906	$	81,056	$	30,809,436
Total	$	20,842,586	$	10,047,906	$	81,056	$	30,809,436
Short-term investments-
Certificates of deposit and other	$	19,839,497	$	0	$	0	$	19,839,497
Total	$	19,839,497	$	0	$	0	$	19,839,497


				Gross		Gross		Estimated
		Amortized		Unrealized		Unrealized		Fair
December 31, 2012		Cost		Gains		Losses		Value
Fixed maturities, available-for-sale, at fair value-
General obligations of U.S. states, territories
and political subdivisions	$	38,658,463	$	3,211,445	$	0	$	41,869,908
Special revenue obligations of U.S. states, territories and
political subdivisions		18,933,299		1,909,106		10,455		20,831,950
Corporate debt securities		17,064,697		1,252,973		14,750		18,302,920
Auction rate securities		917,214		14,986		0		932,200
Total	$	75,573,673	$	6,388,510	$	25,205	$	81,936,978
Equity securities, available-for-sale at fair value-
Common stocks and nonredeemable preferred stocks	$	21,229,114	$	7,373,056	$	91,237	$	28,510,933
Total	$	21,229,114	$	7,373,056	$	91,237	$	28,510,933
Short-term investments-
Certificates of deposit and other	$	13,567,648	$	0	$	0	$	13,567,648
Total	$	13,567,648	$	0	$	0	$	13,567,648

The scheduled maturities of fixed maturity securities at March 31, 2013 were as follows:


		Available-for-Sale
		Amortized		Fair
		Cost		Value
Due in one year or less	$	5,920,278	$	6,038,894
Due after one year through five years		48,713,658		52,822,544
Due five years through ten years		13,853,203		15,268,415
Due after ten years		2,950,514		3,368,720
Total	$	71,437,653	$	77,498,573

Gross realized gains and losses on securities for the three months ended March 31 are summarized as follows:


		2013			2012
Gross realized gains:
General obligations of U.S. states, territories and political
subdivisions	$	0		$	250
Common stocks and nonredeemable preferred stocks		67,876			152,574
Auction rate securities		0			40,057
Total	$	67,876		$	192,881
Gross realized losses:
Common stocks and nonredeemable preferred stocks	$	(37,879	)	$	0
Total	$	(37,879	)	$	0
Net realized gain	$	29,997		$	192,881

Realized gains and losses are determined on the specific identification method. Also included in net realized gain on investments in the Consolidated Statements of Income are impairments of other investments of $(18,485) offset by gains on other investments of $4,832 for a net totaling $(13,653) and $0 for the three months ended March 31, 2013 and 2012, respectively.

The following table presents the gross unrealized losses on investment securities and the fair value of the securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at March 31, 2013 and December 31, 2012.


		Less than 12 Months					12 Months or Longer					Total
		Fair		Unrealized			Fair	Unrealized				Fair		Unrealized
March 31, 2013		Value		Losses			Value		Losses			Value		Losses
General obligations of
U.S. states,
territories and
political sub-
divisions	$	1,118,337	$	(11,011	)	$	0	$	0		$	1,118,337	$	(11,011	)
Special revenue
obligations of
U.S. states
territories and
political sub-
divisions		1,238,380		(6,726	)		0		0			1,238,380		(6,726	)
Total fixed income
securities	$	2,356,717	$	(17,737	)	$	0	$	0		$	2,356,717	$	(17,737	)
Equity securities	$	379,334	$	(23,269	)	$	181,326	$	(57,787	)	$	560,660	$	(81,056	)
Total temporarily
impaired securities	$	2,736,051	$	(41,006	)	$	181,326	$	(57,787	)	$	2,917,377	$	(98,793	)


		Less than 12 Months					12 Months or Longer				Total
		Fair		Unrealized			Fair	Unrealized			Fair		Unrealized
December 31, 2012		Value		Losses			Value	Losses			Value		Losses
General obligations of
U.S. states,
territories and
political sub-
divisions	$	1,236,906	$	(10,455	)	$	0	$	0	$	1,236,906	$	(10,455	)
Corporate debt
securities		985,250		(14,750	)		0		0		985,250		(14,750	)
Total fixed income
securities	$	2,222,156	$	(25,205	)	$	0	$	0	$	2,222,156	$	(25,205	)
Equity securities	$	2,551,215	$	(91,237	)	$	0	$	0	$	2,551,215	$	(91,237	)
Total temporarily
impaired securities	$	4,773,371	$	(116,442	)	$	0	$	0	$	4,773,371	$	(116,442	)

As of March 31, 2013, the Company held $2,356,717 in fixed maturity securities with unrealized losses of $17,737. As of December 31, 2012, the Company held $2,222,156 in fixed maturity securities with unrealized losses of $25,205. 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 March 31, 2013, the Company held $560,660 in equity securities with unrealized losses of $81,056. As of December 31, 2012, the Company held $2,551,215 in equity securities with unrealized losses of $91,237. 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 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 5 and 7 securities had unrealized losses at March 31, 2013 and December 31, 2012, respectively. 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 the first quarter of 2013 and 2012, the Company did not have other-than-temporary impairment charges for securities. For the 2012 fiscal year, the Company recorded other-than-temporary impairment charges in the amount of $93,436 related to securities. Other-than-temporary impairment charges are included in net realized gain on investments in the Consolidated Statements of Income.