7. Long-Term Debt

Long-term debt consists of the following as of the dates presented (in thousands):

	September 30,		December 31,
	2018		2017
Surplus note	$	11,765	$	12,868

In 2006, UPCIC entered into a $25.0 million surplus note with the State Board of Administration of Florida (the “SBA”) under Florida’s Insurance Capital Build-Up Incentive Program (the “ICBUI”). The surplus note has a twenty-year term and accrues interest, adjusted quarterly based on the 10-year Constant Maturity Treasury Index.

UPCIC was in compliance with the terms of the surplus note as of September 30, 2018.