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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Taxes [Abstract] |
Income Taxes | Note 5. Income Taxes Total income taxes were allocated as follows:
| 2016 | 2015
Total tax expense on income | $ | 888 |  | $ | 1,320 |
Tax expense (benefit) on components of shareholders’ equity: |  |  |  |  |  |
Net unrealized gains (losses) on investment securities |  | 671 |  |  | (2,528 | )
Total tax expense (benefit) | $ | 1,559 |  | $ | (1,208 | )
A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax expense is as follows:
| 2016 | 2015
Federal income tax provision at statutory rate of 35% | $ | 1,233 |  | $ | 1,998 |
Dividends-received deduction |  | (95 | ) |  | (99 | )
Small life insurance company deduction |  | (376 | ) |  | (582 | )
Other |  | 55 |  |  | 42 |
Adjustment for prior years’ estimates to actual |  | 71 |  |  | (39 | )
Income tax expense | $ | 888 |  | $ | 1,320 |
Effective tax rate |  | 25.2 | % |  | 23.1 | %
The primary differences between the effective tax rate and the federal statutory income tax rate for 2016 and 2015 resulted from the dividends-received deduction (“DRD”) and the small life insurance company deduction (“SLD”). The current estimated DRD is adjusted as underlying factors change and can vary from estimates based on, but not limited to, actual distributions from investments as well as the amount of the Company’s taxable income. The SLD varies in amount and is determined at a rate of 60 percent of the tentative life insurance company taxable income (“LICTI”). The SLD for any taxable year is reduced (but not below zero) by 15 percent of the tentative LICTI for such taxable year as it exceeds $3,000 and is ultimately phased out at $15,000. Deferred tax liabilities and assets at December 31, 2016 and 2015 were comprised of the following:
| 2016 | 2015
Deferred tax liabilities: |  |  |  |  |  |
Deferred acquisition costs | $ | (2,345 | ) | $ | (2,623 | )
Deferred and uncollected premiums |  | (654 | ) |  | (677 | )
Net unrealized investment gains |  | (3,140 | ) |  | (2,469 | )
Other |  | (666 | ) |  | (642 | )
Total deferred tax liabilities |  | (6,805 | ) |  | (6,411 | )
Deferred tax assets: |  |  |  |  |  |
Insurance reserves |  | 4,589 |  |  | 4,522 |
Impaired assets |  | 1,454 |  |  | 1,474 |
Alternative minimum tax credit |  | 282 |  |  | 504 |
Bad debts and other |  | 640 |  |  | 740 |
Total deferred tax assets |  | 6,965 |  |  | 7,240 |
Net deferred tax asset | $ | 160 |  | $ | 829 |
The components of income tax expense were:
| 2016 | 2015
Current - Federal | $ | 890 |  | $ | 1,016 |
Deferred - Federal |  | (2 | ) |  | 304 |
Total | $ | 888 |  | $ | 1,320 |
The Company has formal tax-sharing agreements, and files a consolidated income tax return, with its subsidiaries. Tax years prior to 2012 have been audited by the Internal Revenue Service and are closed.

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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 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 Reference 4: 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=65882285&loc=d3e32639-109319 Reference 5: 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=65882285&loc=d3e32537-109319 + Details
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