Contingencies and Commitments

12 Months Ended

Dec. 31, 2013

Contingencies and Commitments [Abstract]

Contingencies and Commitments

NOTE 11 - Contingencies and Commitments

Lawsuits and Legal Proceedings

Companies in the insurance industry have been subject to substantial litigation resulting from claims, disputes and other matters. Most recently, they have faced expensive claims, including class action lawsuits, alleging, among other things, improper sales practices and improper claims settlement procedures. Negotiated settlements of certain such actions have had a material adverse effect on many insurance companies.

At the time of this Annual Report on Form 10-K, the Company does not have pending litigation from which there is a reasonable possibility of material loss.

Assessments for Insolvencies of Unaffiliated Insurance Companies

The Company is contingently liable for possible assessments under regulatory requirements pertaining to potential insolvencies of unaffiliated insurance companies. Liabilities, which are established based upon regulatory guidance, have generally been insignificant.

Leases

The Company has entered into various operating lease agreements, primarily for real estate (claims and marketing offices in a few states, as well as portions of the home office complex) and also for computer equipment and copy machines. Rental expenses were $2,838, $2,882 and $2,883 for the years ended December 31, 2013, 2012 and 2011, respectively. Future minimum lease payments under leases expiring subsequent to December 31, 2013 are as follows:

		As of December 31, 2013
												2019-	2024 and
		2014		2015		2016		2017		2018		2023	beyond
Minimum operating lease payments	$	2,473	$	2,413	$	2,219	$	2,195	$	2,242	$	6,575	-