OTHER CASH FLOW DISCLOSURES

9 Months Ended

Sep. 30, 2012

OTHER CASH FLOW DISCLOSURES [Abstract]

8.	OTHER CASH FLOW DISCLOSURES

On a cash basis, the Company paid the following expenses:

		Three Months Ended
		September 30,
		2012		2011

Interest expense	$	19,896	$	146,437
Federal income tax		65,689		394,459

		Nine Months Ended
		September 30,
		2012		2011

Interest expense	$	169,509	$	230,840
Federal income tax		1,408,770		2,299,459

At the end of August, the financial reinsurance agreement with Canada Life Assurance Company was fully repaid. At that time, the reserves were recaptured through elimination of reinsurance recoverable in exchange for assets received equal to the recaptured reserves. The following table reflects the breakdown of the assets received.

		Assets Received

Bonds	$	27,651,746
Common Stock		1,023,394
Cash		2,480,706
Total	$	31,155,846

The non-cash acquisitions of bonds and common stock resulting from recapture of reinsurance have been excluded from the accompanying statements of cash flows.

- Definition

The entire disclosure for supplemental cash flow activities, including cash, noncash, and part noncash transactions, for the period. Noncash is defined as information about all investing and financing activities of an enterprise during a period that affect recognized assets or liabilities but that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period.

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