COST OF INSURANCE ACQUIRED (Tables)

12 Months Ended

Dec. 31, 2014

Cost of Insurance Acquired [Abstract]

Cost of insurance acquired

Note 5 – Cost of Insurance Acquired

When an insurance company is acquired, the Company assigns a portion of its cost to the right to receive future cash flows from insurance contracts existing at the date of the acquisition.  The cost of policies purchased represents the actuarially determined present value of the projected future profits from the acquired policies.  Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits.  The interest rates utilized may vary due to differences in the blocks of business.  The interest rate utilized in the amortization calculation of the remaining cost of insurance acquired is  12%. The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.

	2014		2013
Cost of insurance acquired, beginning of year	$	10,636,412	$	11,700,765
Sale of block of business		(602,778)		0
Interest accretion		1,298,980		1,426,703
Amortization		(2,284,630)		(2,491,056)
Net amortization		(985,650)		(1,064,353)
Cost of insurance acquired, end of year	$	9,047,984	$	10,636,412

	2014		2013
Cost of insurance acquired, beginning of year	$	10,636,412	$	11,700,765
Sale of block of business		(602,778)		0
Interest accretion		1,298,980		1,426,703
Amortization		(2,284,630)		(2,491,056)
Net amortization		(985,650)		(1,064,353)
Cost of insurance acquired, end of year	$	9,047,984	$	10,636,412

Estimated net amortization expense of cost of insurance acquired for the next five years is as follows:

	Interest Accretion	Amortization	Net Amortization
2015	1,181,000	2,088,000	907,000
2016	1,072,000	1,945,000	873,000
2017	967,000	1,806,000	839,000
2018	866,000	1,672,000	806,000
2019	770,000	1,546,000	776,000

Estimated net amortization expense of cost of insurance acquired for the next five years is as follows:

	Interest Accretion	Amortization	Net Amortization
2015	1,181,000	2,088,000	907,000
2016	1,072,000	1,945,000	873,000
2017	967,000	1,806,000	839,000
2018	866,000	1,672,000	806,000
2019	770,000	1,546,000	776,000