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Income Taxes | 12 Months Ended
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Dec. 31, 2011
Income Taxes |
Income Tax Disclosure [Text Block] | 8) Income Taxes The Company’s income tax liability (benefit) at December 31 is summarized as follows:
|  | December 31, |
|  | 2011 |  |  | 2010 |
Current |  | $ | (977,420 | ) |  | $ | 21,224 |
Deferred |  |  | 15,987,699 |  |  |  | 15,334,961 |
Total |  | $ | 15,010,279 |  |  | $ | 15,356,185 |
Significant components of the Company’s deferred tax (assets) and liabilities at December 31 are approximately as follows:
|  | December 31, |
|  | 2011 |  |  | 2010 |
Assets |  |  |  |  |  |
Future policy benefits |  | $ | (4,597,137 | ) |  | $ | (6,195,069 | )
Loan loss reserve |  |  | (1,210,791 | ) |  |  | (2,005,669 | )
Unearned premium |  |  | (1,861,264 | ) |  |  | (1,929,161 | )
Available for sale securities |  |  | (116,501 | ) |  |  | -- |
Other |  |  | (2,605,315 | ) |  |  | (1,064,441 | )
Less: Valuation allowance |  |  | 3,640,327 |  |  |  | 6,105,175 |
Total deferred tax assets |  |  | (6,750,681 | ) |  |  | (5,089,165 | )
Liabilities |  |  |  |  |  |  |  |
Deferred policy acquisition costs |  |  | 9,526,785 |  |  |  | 9,503,086 |
Basis difference in property and equipment |  |  | 3,917,124 |  |  |  | 2,873,142 |
Value of business acquired |  |  | 4,077,709 |  |  |  | 3,336,548 |
Installment sales |  |  | 1,996,967 |  |  |  | 2,172,164 |
Trusts |  |  | 2,385,770 |  |  |  | 2,014,812 |
Available for sale securities |  |  | -- |  |  |  | 24,632 |
Tax on unrealized appreciation |  |  | 834,025 |  |  |  | 499,742 |
Total deferred tax liabilities |  |  | 22,738,380 |  |  |  | 20,424,126 |
Net deferred tax liability |  | $ | 15,987,699 |  |  | $ | 15,334,961 |
Insurance companies with total assets less than $500 million receive a special deduction that lowers their effective tax rate. The Company’s valuation allowance relates to differences created by the small life insurance company deduction. If the Company exceeds $500 million in consolidated tax assets, for tax purposes, this valuation allowance would diminish. The decrease in the valuation allowance was $2,464,848 and $622,085 during 2011 and 2010, respectively. The Company paid $174,811, $108,522, and $750,844 in income taxes for 2011, 2010 and 2009, respectively. The Company’s income tax expense (benefit) is summarized as follows for the years ended December 31:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Current |  | $ | 130,526 |  |  | $ | 171,133 |  |  | $ | 1,002,789 |
Deferred |  |  | (192,731 | ) |  |  | (829,929 | ) |  |  | 1,366,336 |
Other |  |  | - |  |  |  | - |  |  |  | 204,653 |
Total |  | $ | (62,205 | ) |  | $ | (658,796 | ) |  | $ | 2,573,778 |
The reconciliation of income tax expense at the U.S. federal statutory rates is as follows:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Computed expense at statutory rate |  | $ | 410,225 |  |  | $ | (370,403 | ) |  | $ | 2,158,204 |
Special deductions allowed |  |  |  |  |  |  |  |  |  |  |  |
small life insurance companies |  |  | (503,672 | ) |  |  | (351,847 | ) |  |  | (50,983 | )
Other, net |  |  | 31,242 |  |  |  | 63,454 |  |  |  | 466,557 |
Tax expense (benefit) |  | $ | (62,205 | ) |  | $ | (658,796 | ) |  | $ | 2,573,778 |
At December 31, 2011, the Company had $534,403 of unrecognized tax benefits principally relating to tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. At December 31, 2011, the Company had $37,426 in interest and penalties related to unrecognized tax benefits. The Company accounts for interest expense and penalties for unrecognized tax benefits as part of its income tax provision. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. As of December 31, 2011, the Company does not expect any material changes to the estimated amount of unrecognized tax benefits in the next twelve months. Federal and state income tax returns for 2008 through 2011 are open tax years.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 + Details
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