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Income Taxes | 12 Months Ended
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Dec. 31, 2018
Income Taxes [Abstract] |
Income Taxes | Note 7. Income Taxes Total income taxes were allocated as follows:
|  | 2018 |  |  | 2017 |
Total tax expense (benefit) on income |  | $ | (267 | ) |  | $ | 828 |
Tax expense (benefit) on components of shareholders’ equity: |  |  |  |  |  |  |  |
Net unrealized gains on investment securities |  |  | (2,541 | ) |  |  | 2,111 |
Total tax expense (benefit) |  | $ | (2,808 | ) |  | $ | 2,939 |
A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and the income tax expense (benefit) is as follows:
|  | 2018 |  |  | 2017 |
Federal income tax provision |  | $ | (204 | ) |  | $ | 1,875 |
Statutory rate |  |  | 21 | % |  |  | 35 | %
Dividends-received deduction |  |  | (39 | ) |  |  | (92 | )
Small life insurance company deduction |  |  | - |  |  |  | (613 | )
Other |  |  | 75 |  |  |  | 72 |
Remeasurement of deferred taxes due to tax reform enactment |  |  | - |  |  |  | (395 | )
Adjustment for prior years’ estimates to actual |  |  | (99 | ) |  |  | (19 | )
Income tax expense (benefit) |  | $ | (267 | ) |  | $ | 828 |
Effective tax rate |  |  | 27.5 | % |  |  | 15.5 | %
The primary differences between the effective tax rate and the federal statutory income tax rate for 2018 resulted from provision-to-filed return adjustments that are generally updated at the completion of the third quarter of each fiscal year and were $99 in the year ended December 31, 2018. The primary differences between the effective tax rate and the federal statutory income tax rate for 2017 resulted from the DRD, the SLD, which was subsequently repealed by tax reform enacted on December 22, 2017, and the remeasurement of deferred taxes. 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. Under the then-applicable tax rules, the SLD varied in amount and was determined at a rate of 60% of the tentative LICTI. The SLD for any taxable year was reduced (but not below zero) by 15% of the tentative LICTI for such taxable year as it exceeded $3,000 and was ultimately phased out at $15,000. The remeasurement of deferred taxes resulted from legislated tax reform enacted on December 22, 2017. The tax reform reduced the federal tax rate applied to the Company’s deferred tax balances from 35% to 21% on enactment. Deferred tax liabilities and assets at December 31, 2018 and 2017 were comprised of the following:
|  | 2018 |  |  | 2017 |
Deferred tax assets: |  |  |  |  |  |
Deferred acquisition costs |  | $ | 175 |  |  | $ | - |
Insurance reserves |  |  | 3,410 |  |  |  | 3,216 |
Impaired assets |  |  | 1,142 |  |  |  | 869 |
Bad debts and other |  |  | 332 |  |  |  | 380 |
Total deferred tax assets |  |  | 5,059 |  |  |  | 4,465 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Deferred acquisition costs |  | $ | - |  |  | $ | (1,200 | )
Deferred and uncollected premiums |  |  | (360 | ) |  |  | (377 | )
Net unrealized investment gains |  |  | (148 | ) |  |  | (3,150 | )
Other |  |  | (367 | ) |  |  | (331 | )
Total deferred tax liabilities |  |  | (875 | ) |  |  | (5,058 | )
Net deferred tax asset (liability) |  | $ | 4,184 |  |  | $ | (593 | )
The components of income tax expense (benefit) were:
|  | 2018 |  |  | 2017 |
Current - Federal |  | $ | 1,969 |  |  | $ | 2,186 |
Deferred - Federal |  |  | (2,236 | ) |  |  | (1,358 | )
Total |  | $ | (267 | ) |  | $ | 828 |
The Company has formal tax-sharing agreements, and files a consolidated income tax return, with its subsidiaries. Tax years prior to 2015 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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