Investments In Securities

6 Months Ended

Jun. 30, 2011

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
June 30, 2011	Cost		Gains		Losses		Value
Fixed Maturities-
Available-for-sale, at fair value:
Obligations of states and political subdivisions	$	61,721,601	$	4,201,974	$	34,938	$	65,888,637
Corporate debt securities		12,143,901		1,100,513		84,529		13,159,885
Auction rate securities		5,327,107		68,088		1,199		5,393,996
Total	$	79,192,609	$	5,370,575	$	120,666	$	84,442,518
Equity Securities, available-for-sale at fair value-
Common stocks and nonredeemable preferred stocks	$	10,214,982	$	5,157,846	$	104,790	$	15,268,038
Total	$	10,214,982	$	5,157,846	$	104,790	$	15,268,038
Short-term investments-
Certificates of deposit and other	$	22,212,440	$	-	$	-	$	22,212,440
Total	$	22,212,440	$	-	$	-	$	22,212,440

December 31, 2010
Fixed Maturities-
Available-for-sale, at fair value:
Obligations of states and political subdivisions	$	64,120,509	$	3,248,821	$	166,690	$	67,202,640
Corporate debt securities		12,258,359		1,123,051		22,737		13,358,673
Auction rate securities		5,405,394		66,850		-		5,472,244
Total	$	81,784,262	$	4,438,722	$	189,427	$	86,033,557
Equity Securities, available-for-sale at fair value-
Common stocks and nonredeemable preferred stocks	$	9,458,773	$	4,430,175	$	16,578	$	13,872,370
Total	$	9,458,773	$	4,430,175	$	16,578	$	13,872,370
Short-term investments-
Certificates of deposit and other	$	27,203,550	$	-	$	-	$	27,203,550
Total	$	27,203,550	$	-	$	-	$	27,203,550

The scheduled maturities of fixed maturity securities at June 30, 2011 were as follows:

	Available-for-Sale
	Amortized		Fair
	Cost		Value
Due in one year or less	$	3,129,360	$	3,168,037
Due after one year through five years		30,959,343		32,806,623
Due five years through ten years		35,902,456		38,760,593
Due after ten years		9,201,450		9,707,265
Total	$	79,192,609	$	84,442,518

Gross realized gains and losses on securities for the six months ended June 30 are summarized as follows:

	2011			2010
Gross realized gains:
Obligations of states and political subdivisions	$	36,274		$	98,197
Common stocks and nonredeemable preferred stocks		262,952			356,373
Total		299,226			454,570
Gross realized losses:
Obligations of states and political subdivisions	$	-		$	-
Common stocks and nonredeemable preferred stocks		(46,413	)		(14,346	)
Other than temporary impairment of securities		(64,468	)		(8,055	)
Total		(110,881	)		(22,401	)
Net realized gain	$	188,345		$	432,169

Realized gains and losses are determined on the specific identification method. Also included in net realized gain on sales in the Consolidated Statements of Income are impairments of other investments and loss on sales of property acquired in the settlement of claims totaling $(67,430) and $(81,239) for the six months ended June 30, 2011 and 2010, respectively.

The following table presents the gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at June 30, 2011 and December 31, 2010.

	Less than 12 Months					12 Months or Longer				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
June 30, 2011
Auction rate securities	$	1,858,766	$	(1,199	)	$	-	$	-	$	1,858,766	$	(1,199	)
Obligations of states and political subdivisions		1,548,620		(34,938	)		-		-		1,548,620		(34,938	)
Corporate debt securities		939,790		(84,529	)		-		-		939,790		(84,529	)
Total Fixed Income Securities	$	4,347,176	$	(120,666	)	$	-	$	-	$	4,347,176	$	(120,666	)
Equity Securities		1,017,901		(104,790	)		-		-		1,017,901		(104,790	)
Total temporarily impaired securities	$	5,365,077	$	(225,456	)	$	-	$	-	$	5,365,077	$	(225,456	)

	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
December 31, 2010
Obligations of states and political subdivisions	$	7,008,818	$	(166,690	)	$	-	$	-		$	7,008,818	$	(166,690	)
Corporate debt securities		1,077,263		(22,737	)		-		-			1,077,263		(22,737	)
Total Fixed Income Securities	$	8,086,081	$	(189,427	)	$	-	$	-		$	8,086,081	$	(189,427	)
Equity Securities		746,388		(7,710	)		220,635		(8,868	)		967,023		(16,578	)
Total temporarily impaired securities	$	8,832,469	$	(197,137	)	$	220,635	$	(8,868	)	$	9,053,104	$	(206,005	)

As of June 30, 2011, the Company held $4,347,176 in fixed maturity securities with unrealized losses of $120,666. As of December 31, 2010, the Company held $8,086,081 in fixed maturity securities with unrealized losses of $189,427. 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 June 30, 2011, the Company held $1,017,901 in equity securities with unrealized losses of $104,790. As of December 31, 2010, the Company held $967,023 in equity securities with unrealized losses of $16,578. 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 income 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 14 and 26 securities had unrealized losses at June 30, 2011 and December 31, 2010, 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 2011, the Company recorded an other-than-temporary impairment charge in the amount of $64,468 related to stocks. During 2010, the Company recorded an other-than-temporary impairment charge in the amount of $382,692 related to securities, of which, $281,156 was related to Level 3 auction rate securities that have had a history of being below cost and a change in the Company's intent not to sell these securities. Other-than-temporary impairment charges are included in net realized gain on investments in the Consolidated Statements of Income.