Document And Entity Information
v0.0.0.0
Document And Entity Information (USD $)
12 Months Ended
Dec. 31, 2012
Feb. 18, 2013
Jun. 30, 2012
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2012    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2012    
Entity Registrant Name INVESTORS TITLE CO    
Entity Central Index Key 0000720858    
Current Fiscal Year End Date --12-31    
Entity Filer Category Smaller Reporting Company    
Entity Common Stock, Shares Outstanding   2,038,968  
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
Entity Public Float     $ 88,896,707

Consolidated Balance Sheets
v0.0.0.0
Consolidated Balance Sheets (USD $)
Dec. 31, 2012
Dec. 31, 2011
Investments in securities    
Fixed maturities, available-for-sale, at fair value (amortized cost: 2012: $75,573,673; 2011: $78,783,968) $ 81,936,978 $ 85,407,365
Equity securities, available-for-sale, at fair value (cost: 2012: $21,229,114; 2011: $17,652,745) 28,510,933 22,549,975
Short-term investments 13,567,648 14,112,262
Other investments 6,763,100 3,631,714
Total investments 130,778,659 125,701,316
Cash and cash equivalents 20,810,018 18,042,258
Premium and fees receivable (less allowance for doubtful accounts: 2012: $1,902,581; 2011: $1,218,000) 11,037,714 6,810,000
Accrued interest and dividends 1,037,447 1,108,156
Prepaid expenses and other assets 4,651,115 2,743,517
Property, net 3,603,323 3,553,216
Total Assets 171,918,276 157,958,463
Liabilities:    
Reserves for claims 39,078,000 37,996,000
Accounts payable and accrued liabilities 15,477,545 12,330,383
Current income taxes payable 1,336,824 640,533
Deferred income taxes, net 893,156 479,363
Total liabilities 56,785,525 51,446,279
Commitments and Contingencies 0 0
Redeemable Noncontrolling Interest 493,861 0
Stockholders' Equity:    
Preferred stock (1,000,000 authorized shares; no shares issued) 0 0
Common stock - no par value (10,000,000 authorized shares; 2,043,359 and 2,107,681 shares issued and outstanding 2012 and 2011, respectively, excluding 291,676 shares for 2012 and 2011 of common stock held by the Company's subsidiary) 1 1
Retained earnings 105,820,459 99,003,018
Accumulated other comprehensive income 8,818,430 7,509,165
Total stockholders' equity 114,638,890 106,512,184
Total Liabilities and Stockholders' Equity $ 171,918,276 $ 157,958,463

Consolidated Balance Sheets (Parenthetical)
v0.0.0.0
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Consolidated Balance Sheets [Abstract]    
Fixed maturities, available-for-sale, amortized cost $ 75,573,673 $ 78,783,968
Equity securities, available-for-sale, cost 21,229,114 17,652,745
Premiums and fees receivable, allowance for doubtful accounts $ 1,902,581 $ 1,218,000
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, shares issued 0 0
Common stock, no par value      
Common stock, shares authorized 10,000,000 10,000,000
Common stock, shares issued 2,043,359 2,107,681
Common stock, shares outstanding 2,043,359 2,107,681
Common stock, held by Company's subsidiary 291,676 291,676

Consolidated Statements Of Income
v0.0.0.0
Consolidated Statements Of Income (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Revenues:    
Net premiums written $ 102,331,102 $ 81,529,333
Investment income - interest and dividends 3,980,411 3,595,036
Net realized gain on investments 1,066,239 28,559
Other 7,701,340 5,532,228
Total Revenues 115,079,092 90,685,156
Operating Expenses:    
Commissions to agents 59,427,070 49,596,250
Provision for claims 6,072,115 3,342,427
Salaries, employee benefits and payroll taxes 21,877,186 18,552,504
Office occupancy and operations 3,936,653 3,722,803
Business development 1,887,398 1,706,834
Filing fees, franchise and local taxes 846,168 516,380
Premium and retaliatory taxes 1,885,760 1,729,830
Professional and contract labor fees 2,487,582 1,513,466
Other 579,253 505,726
Total Operating Expenses 98,999,185 81,186,220
Income before Income Taxes 16,079,907 9,498,936
Provision for Income Taxes 4,889,000 2,565,000
Net Income 11,190,907 6,933,936
Less: Net Income Attributable to Redeemable Noncontrolling Interests 88,411 0
Net Income Attributable to the Company $ 11,102,496 $ 6,933,936
Basic Earnings per Common Share $ 5.33 $ 3.22
Weighted Average Shares Outstanding - Basic 2,081,703 2,151,350
Diluted Earnings per Common Share $ 5.24 $ 3.20
Weighted Average Shares Outstanding - Diluted 2,116,793 2,169,636
Cash Dividends Paid per Common Share $ 0.29 $ 0.28

Consolidated Statements Of Comprehensive Income
v0.0.0.0
Consolidated Statements Of Comprehensive Income (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Consolidated Statements Of Comprehensive Income [Abstract]    
Net income $ 11,190,907 $ 6,933,936
Other comprehensive income, before tax:    
Amortization related to prior year service cost 9,396 13,038
Amortization of unrecognized gain (loss) 680 (318)
Accumulated postretirement benefit obligation adjustment (82,918) (115,089)
Unrealized gains on investments arising during the year 3,190,737 2,886,294
Reclassification adjustment for sale of securities included in net income (1,166,179) (353,950)
Reclassification adjustment for write-down of securities included in net income 99,940 325,391
Other (36,600) 0
Other comprehensive income, before tax 2,015,056 2,755,366
Income tax benefit related to postretirement health benefits (24,764) (34,804)
Income tax expense related to unrealized gains on investments arising during the year 1,122,003 976,277
Income tax benefit related to reclassification adjustment for sale of securities included in net income (426,017) (122,594)
Income tax expense related to reclassification adjustment for write-down of securities included in net income 34,569 116,027
Net income tax expense on other comprehensive income 705,791 934,906
Other comprehensive income 1,309,265 1,820,460
Comprehensive income 12,500,172 8,754,396
Less: Comprehensive income attributable to redeemable noncontrolling interest (88,411) 0
Comprehensive income $ 12,411,761 $ 8,754,396

Consolidated Statements Of Stockholders' Equity
v0.0.0.0
Consolidated Statements Of Stockholders' Equity (USD $)
Common Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income [Member]
Total
Balance at Dec. 31, 2010 $ 1 $ 98,240,109 $ 5,688,705 $ 103,928,815
Balance, shares at Dec. 31, 2010 2,282,596      
Net income attributable to the Company   6,933,936   6,933,936
Dividends   (599,241)   (599,241)
Shares of common stock repurchased and retired   (5,940,463)   (5,940,463)
Shares of common stock repurchased and retired, shares (182,615)      
Stock options exercised   155,163   155,163
Stock options exercised, shares 7,700     7,700
Share-based compensation expense   213,514   213,514
Amortization related to postretirement health benefits     8,394 8,394
Accumulated postretirement benefit obligation adjustment     (75,959) (75,959)
Net unrealized gain on investments     1,888,025 1,888,025
Balance at Dec. 31, 2011 1 99,003,018 7,509,165 106,512,184
Balance, shares at Dec. 31, 2011 2,107,681      
Net income attributable to the Company   11,102,496   11,102,496
Dividends   (603,334)   (603,334)
Shares of common stock repurchased and retired   (3,975,532)   (3,975,532)
Shares of common stock repurchased and retired, shares (70,702)      
Stock options exercised   160,557   160,557
Stock options exercised, shares 6,380     6,380
Share-based compensation expense   74,553   74,553
Amortization related to postretirement health benefits     6,648 6,648
Accumulated postretirement benefit obligation adjustment     (54,726) (54,726)
Net unrealized gain on investments     1,393,943 1,393,943
Other   58,701 (36,600) 22,101
Balance at Dec. 31, 2012 $ 1 $ 105,820,459 $ 8,818,430 $ 114,638,890
Balance, shares at Dec. 31, 2012 2,043,359      

Consolidated Statements Of Stockholders' Equity (Parenthetical)
v0.0.0.0
Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Consolidated Statements Of Stockholders' Equity [Abstract]    
Dividends, per share $ 0.29 $ 0.28

Consolidated Statements Of Cash Flows
v0.0.0.0
Consolidated Statements Of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Operating Activities    
Net income $ 11,190,907 $ 6,933,936
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 486,922 475,679
Amortization, net 468,006 338,967
Amortization related to postretirement benefits obligation 10,076 12,720
Share-based compensation expense related to stock options 74,553 213,514
Increase (decrease) in allowance for doubtful accounts on premiums receivable 684,581 (203,000)
Net (gain) loss on disposals of property (28,538) (26,528)
Net realized gain on investments (1,066,239) (28,559)
Net earnings from other investments (1,674,594) (749,688)
Provision for claims 6,072,115 3,342,427
(Benefit) provision for deferred income taxes (292,000) 21,000
Other 22,101 0
Changes in assets and liabilities:    
(Increase) decrease in receivables (4,912,295) 646,786
(Increase) decrease in other assets (407,252) 77,056
Increase in accounts payable and accrued liabilities 2,372,995 1,913,799
Increase (decrease) in current income taxes payable 696,291 (415,823)
Payments of claims, net of recoveries (4,990,115) (3,545,127)
Net cash provided by operating activities 8,707,514 9,007,159
Investing Activities    
Purchases of available-for-sale securities (15,899,439) (15,318,418)
Purchases of short-term securities (6,347,527) (1,883,562)
Purchases of other investments (3,441,412) (853,599)
Purchase of subsidiary (350,000) 0
Proceeds from maturities of available-for-sale securities 15,646,381 9,851,523
Proceeds from sales and maturities of short-term securities 6,892,141 14,974,850
Proceeds from sales and distributions of other investments 2,301,647 861,865
Proceeds from sale of other assets 220,455 0
Purchases of property (568,728) (361,207)
Proceeds from disposals of property 65,837 31,157
Net cash (used in) provided by investing activities (1,480,645) 7,302,609
Financing Activities    
Repurchases of common stock (3,975,532) (5,940,463)
Exercise of options 160,557 155,163
Distributions to noncontrolling interests (40,800) 0
Dividends paid (603,334) (599,241)
Net cash used in financing activities (4,459,109) (6,384,541)
Net Increase in Cash and Cash Equivalents 2,767,760 9,925,227
Cash and Cash Equivalents, Beginning of Period 18,042,258 8,117,031
Cash and Cash Equivalents, End of Period 20,810,018 18,042,258
Cash Paid During the Year for    
Income taxes, payments, net 4,479,000 2,963,000
Non cash net unrealized gain on investments, net of deferred tax provision of $(730,555) and $(969,710) for 2012 and 2011, respectively (1,393,943) (1,888,025)
Adjustments to postretirement benefits obligation, net of deferred tax provision of $(28,192) and $(39,130) for 2012 and 2011, respectively 54,726 75,959
Non-cash intangible assets acquired from purchase of subsidiary (1,481,900) 0
Non-cash contingent liability from purchase of subsidiary $ 691,250 $ 0

Consolidated Statements Of Cash Flows (Parenthetical)
v0.0.0.0
Consolidated Statements Of Cash Flows (Parenthetical) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Consolidated Statements Of Cash Flows [Abstract]    
Non cash net unrealized gain on investments, deferred tax provision $ (730,555) $ (969,710)
Adjustments to postretirement benefits obligation, net of deferred tax (provision) benefit $ (28,192) $ (39,130)

Basis Of Presentation And Summary Of Significant Accounting Policies
v0.0.0.0
Basis Of Presentation And Summary Of Significant Accounting Policies
12 Months Ended
Dec. 31, 2012
Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract]  
Basis Of Presentation And Summary Of Significant Accounting Policies

1. Basis of Presentation and Summary of Significant Accounting Policies    

Description of Business—Investors Title Company's (the "Company") primary business, and only reportable segment, is title insurance. The title insurance segment, through its two subsidiaries, Investors Title Insurance Company ("ITIC") and National Investors Title Insurance Company ("NITIC"), is licensed to insure titles to residential, institutional, commercial and industrial properties. The Company issues title insurance policies primarily through approved attorneys from underwriting offices and through independent issuing agents in 22 states and the District of Columbia primarily in the eastern half of the United States. The majority of the Company's business is concentrated in Illinois, Kentucky, Michigan, Nebraska, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia.

Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") .   Earnings attributable to the redeemable noncontrolling interest are recorded on the Consolidated Statement of Income for majority-owned subsidiaries. The redeemable noncontrolling interest representing the portion of equity not related to the Company's ownership interest is recorded as redeemable equity in a separate section of the Consolidated Balance Sheets.  All intercompany balances and transactions have been eliminated in consolidation.

Cash and Cash Equivalents

For the purpose of presentation in the Company's Consolidated Statements of Cash Flows, cash equivalents are highly liquid instruments with remaining original maturities of three months or less. The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity at purchase of these instruments.

Investments in Securities

Securities for which the Company has the intent and ability to hold to maturity are classified as held-to-maturity and reported at cost, adjusted for amortization of premiums or accretion of discounts, and other-than-temporary declines in fair value. Securities held principally for resale in the near term are classified as trading securities and recorded at fair values. Realized and unrealized gains and losses on trading securities are included in other income. Securities not classified as either trading or held-to-maturity are classified as available-for-sale and reported at fair value with unrealized gains and losses, net of tax, adjusted for other-than-temporary declines in fair value, reported as accumulated other comprehensive income. Securities are regularly reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporary. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost and the Company's ability and intent to retain the investment for a period of time sufficient to allow for a recovery in value. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. Fair values of the majority of investments are based on quoted market prices. Realized gains and losses are determined on the specific identification method.  Refer to Note 3 for further information regarding investments in securities and fair value. 

Short-term Investments

Short-term investments comprise money market accounts which are invested in short-term funds, time deposits with banks and savings and loan associations, and other investments expected to have maturities or redemptions greater than three months and less than twelve months. The Company monitors any events or changes in circumstances that may have a significant adverse effect on the fair value of these investments.

Other Investments

Other investments consist primarily of investments in title insurance agencies structured as limited liability companies ("LLCs"), which are accounted for under the equity or cost methods of accounting. The aggregate cost of the Company's cost method investments totaled $1,778,115 and $1,210,687 at December 31, 2012 and December 31, 2011, respectively. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments.

Property Acquired in Settlement of Claims

Property acquired in settlement of claims is held for sale and valued at the lower of cost or market. Adjustments to reported estimated realizable values and realized gains or losses on dispositions are recorded as increases or decreases in claim costs.

Property and Equipment

Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives (three to twenty-five years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized.

Income Taxes

The Company makes certain estimates and judgments in determining income tax expense (benefit) for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. The Company provides for deferred income taxes (benefits) for the tax consequences in future years of temporary differences between the financial statements' carrying values and the tax bases of assets and liabilities using currently enacted tax rates.  The Company establishes valuation allowances if it believes that it is more likely than not that some or all of its deferred tax assets will not be realized.  Refer to Note 8 for further information regarding income taxes.

Premiums Written and Commissions to Agents

Generally, title insurance premiums are recognized at the time of closing of the related real estate transaction, as the earnings process is then considered complete. Policies or commitments are issued upon receipt of final certificates or preliminary reports with respect to titles. Title insurance commissions earned by the Company's agents, taxes and a provision for claims losses are recognized as expenses concurrent with recognition of related premium revenue.

The Company's premium revenues from certain agency operations include accruals based on estimates. These accruals estimate unreported agency premiums related to transactions which have settled as of the balance sheet date. Accruals for premiums from certain agencies are necessary because of the lag between policy effective dates and the reporting of these transactions to the Company by the agents. The lag time has historically been between 30 and 120 days, with the majority of agencies reporting within 60 to 90 days. The lag time is reviewed periodically to monitor accruals. The accrual of premium revenues is based on historical data that includes transactional volume, fluctuations in the real estate market and the mix between refinance and purchase transactions. There have been no material changes in historical estimates during the periods presented.

Quarterly, the Company evaluates the collectability of receivables. Premiums not collected within 6 months are fully reserved. Write-offs of receivables have not been material to the Company.

Allowance for Doubtful Accounts

Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of amounts receivable.  Changes to the allowance for doubtful accounts are reflected  within net premiums written in the Consolidated Statements of Income.  Amounts are charged off in the period they are deemed to be uncollectible.

Exchange Services Revenue

Fees are recognized at the signing of a binding agreement and investment earnings are recognized as they are earned.

Fair Values of Financial Instruments

The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, short-term investments, premium and fees receivable, accrued interest and dividends, accounts payable, commissions payable, reinsurance payable and current income taxes payable approximate fair value due to the short-term nature of these assets and liabilities.  Fair values for the majority of investment securities are based on quoted market prices.  Auction rate securities ("ARS") are valued using discounted cash flow models to determine the estimated fair value of these investments.  Some of the inputs to determining the fair value of ARS are unobservable in the securities markets and are significant. Refer to Note 3 for further information regarding investments in securities and fair value.

Comprehensive Income

The Company's accumulated other comprehensive income is comprised of unrealized holding gains/losses on available-for-sale securities, net of tax, and unrecognized prior service cost and unrealized gains/losses associated with postretirement benefit liabilities, net of tax.  Accumulated other comprehensive income as of December 31, 2012 consists of $8,920,883 of unrealized holding gains on available-for-sale securities and $102,453 of unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities.  Accumulated other comprehensive income as of December 31, 2011 consists of $7,563,541 of unrealized holding gains on available-for-sale securities and $54,376 of unrecognized prior service cost and unrealized losses associated with postretirement benefit liabilities.

Share-Based Compensation

The Company accounts for share-based compensation in accordance with the fair value based principles required by the Financial Accounting Standards Board ("FASB").  Estimated compensation expense for awards outstanding at the effective date is recognized over their remaining service period using the compensation cost.  Share-based compensation cost is generally measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee's requisite service period.

As the share-based compensation expense recognized in the Consolidated Statements of Income is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures.  Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Subsequent Events

The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements.

Recently Issued Accounting Standards

In June 2011, the FASB updated requirements relating to the presentation of comprehensive income.  The objectives of this accounting update are to facilitate convergence of GAAP and International Financial Reporting Standards ("IFRS"), to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income.  The main provisions of the guidance require that all nonowner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  For public entities, this update became effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.  The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.

In May 2011, the FASB updated requirements for measuring and disclosing fair value information, resulting in common principles and requirements in accordance with GAAP and IFRS.  For public entities, this guidance became effective during interim and annual periods beginning after December 15, 2011.  The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.

Pending Accounting Standards

In June 2011, the FASB updated requirements relating to the presentation of comprehensive income.  In December 2011, the FASB issued a subsequent update to defer those changes in the June 2011 update that relate to the presentation of reclassification adjustments.  All other requirements of the June 2011 update are not affected by the December 2011 update.  The amendments were being made to allow the FASB time to re-deliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. On February 5, 2013, the FASB did add new disclosure requirements for items reclassified out of accumulated other comprehensive income. This update will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The guidance is not expected to have an impact on the Company's financial condition or results of operations.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ materially from those estimates and assumptions used.  The more significant of these estimates and assumptions include the following:

ClaimsThe Company's reserves for claims are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future (incurred but not reported,  or "IBNR").  A provision for estimated future claims payments is recorded at the time policy revenue is recorded as a percentage of premium income. By their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. In addition, some claims may require a number of years to settle and determine the final liability for indemnity and loss adjustment expense. The payment experience may extend for more than 20 years after the issuance of a policy. Events such as fraud, defalcation and multiple property defects can substantially and unexpectedly cause increases in estimates of losses. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability.

Management considers factors such as the Company's historical claims experience, case reserve estimates on reported claims, large claims, actuarial projections and other relevant factors in determining loss provision rates and the aggregate recorded expected liability for claims. In establishing reserves, actuarial projections are compared with recorded reserves to evaluate the adequacy of such recorded claims reserves and any necessary adjustments are then recorded in current operations. As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data. The Company reflects any adjustments to reserves in the results of operations in the period in which new information (principally claims experience) becomes available.

ImpairmentsSecurities are regularly evaluated and reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporaryWhen, in the opinion of management, a decline in the fair value of an investment is considered to be other-than-temporary, such investment is written down to its fair value. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost, the probability that the Company will be unable to collect all amounts due under the contractual terms of the security; with respect to equity securities, whether the Company's ability and intent to retain the investment for a period of time is sufficient to allow for a recovery in value; with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before recovery in value; and the financial condition and prospects of the issuer (including credit ratings).  These factors are reviewed quarterly and any material degradation in the prospect for recovery will be considered in the other-than-temporary impairment analysis.  Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss.  The fair values of the majority of the Company's investments are based on quoted market prices from independent pricing services.

 


Basis Of Presentation And Summary Of Significant Accounting Policies (Policy)
v0.0.0.0
Basis Of Presentation And Summary Of Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2012
Basis Of Presentation And Summary Of Significant Accounting Policies [Abstract]  
Principles Of Consolidation And Basis Of Presentation

Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") .   Earnings attributable to the redeemable noncontrolling interest are recorded on the Consolidated Statement of Income for majority-owned subsidiaries. The redeemable noncontrolling interest representing the portion of equity not related to the Company's ownership interest is recorded as redeemable equity in a separate section of the Consolidated Balance Sheets.  All intercompany balances and transactions have been eliminated in consolidation.

Cash And Cash Equivalents

Cash and Cash Equivalents

For the purpose of presentation in the Company's Consolidated Statements of Cash Flows, cash equivalents are highly liquid instruments with remaining original maturities of three months or less. The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity at purchase of these instruments.

Investments In Securities

Investments in Securities

Securities for which the Company has the intent and ability to hold to maturity are classified as held-to-maturity and reported at cost, adjusted for amortization of premiums or accretion of discounts, and other-than-temporary declines in fair value. Securities held principally for resale in the near term are classified as trading securities and recorded at fair values. Realized and unrealized gains and losses on trading securities are included in other income. Securities not classified as either trading or held-to-maturity are classified as available-for-sale and reported at fair value with unrealized gains and losses, net of tax, adjusted for other-than-temporary declines in fair value, reported as accumulated other comprehensive income. Securities are regularly reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporary. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost and the Company's ability and intent to retain the investment for a period of time sufficient to allow for a recovery in value. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. Fair values of the majority of investments are based on quoted market prices. Realized gains and losses are determined on the specific identification method.  Refer to Note 3 for further information regarding investments in securities and fair value. 

Short-Term Investments

Short-term Investments

Short-term investments comprise money market accounts which are invested in short-term funds, time deposits with banks and savings and loan associations, and other investments expected to have maturities or redemptions greater than three months and less than twelve months. The Company monitors any events or changes in circumstances that may have a significant adverse effect on the fair value of these investments.

Other Investments

Other Investments

Other investments consist primarily of investments in title insurance agencies structured as limited liability companies ("LLCs"), which are accounted for under the equity or cost methods of accounting. The aggregate cost of the Company's cost method investments totaled $1,778,115 and $1,210,687 at December 31, 2012 and December 31, 2011, respectively. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments.

Property Acquired Settlement Of Claims

Property Acquired in Settlement of Claims

Property acquired in settlement of claims is held for sale and valued at the lower of cost or market. Adjustments to reported estimated realizable values and realized gains or losses on dispositions are recorded as increases or decreases in claim costs.

Property And Equipment

Property and Equipment

Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives (three to twenty-five years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized.

Reserves For Claims
Income Taxes

Income Taxes

The Company makes certain estimates and judgments in determining income tax expense (benefit) for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. The Company provides for deferred income taxes (benefits) for the tax consequences in future years of temporary differences between the financial statements' carrying values and the tax bases of assets and liabilities using currently enacted tax rates.  The Company establishes valuation allowances if it believes that it is more likely than not that some or all of its deferred tax assets will not be realized.  Refer to Note 8 for further information regarding income taxes.

Premiums Written And Commissions To Agents

Premiums Written and Commissions to Agents

Generally, title insurance premiums are recognized at the time of closing of the related real estate transaction, as the earnings process is then considered complete. Policies or commitments are issued upon receipt of final certificates or preliminary reports with respect to titles. Title insurance commissions earned by the Company's agents, taxes and a provision for claims losses are recognized as expenses concurrent with recognition of related premium revenue.

The Company's premium revenues from certain agency operations include accruals based on estimates. These accruals estimate unreported agency premiums related to transactions which have settled as of the balance sheet date. Accruals for premiums from certain agencies are necessary because of the lag between policy effective dates and the reporting of these transactions to the Company by the agents. The lag time has historically been between 30 and 120 days, with the majority of agencies reporting within 60 to 90 days. The lag time is reviewed periodically to monitor accruals. The accrual of premium revenues is based on historical data that includes transactional volume, fluctuations in the real estate market and the mix between refinance and purchase transactions. There have been no material changes in historical estimates during the periods presented.

Quarterly, the Company evaluates the collectability of receivables. Premiums not collected within 6 months are fully reserved. Write-offs of receivables have not been material to the Company.

Allowance For Doubtful Accounts

Allowance for Doubtful Accounts

Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of amounts receivable.  Changes to the allowance for doubtful accounts are reflected  within net premiums written in the Consolidated Statements of Income.  Amounts are charged off in the period they are deemed to be uncollectible.

Exchange Services Revenue

Exchange Services Revenue

Fees are recognized at the signing of a binding agreement and investment earnings are recognized as they are earned.

Fair Values Of Financial Instruments

Fair Values of Financial Instruments

The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, short-term investments, premium and fees receivable, accrued interest and dividends, accounts payable, commissions payable, reinsurance payable and current income taxes payable approximate fair value due to the short-term nature of these assets and liabilities.  Fair values for the majority of investment securities are based on quoted market prices.  Auction rate securities ("ARS") are valued using discounted cash flow models to determine the estimated fair value of these investments.  Some of the inputs to determining the fair value of ARS are unobservable in the securities markets and are significant. Refer to Note 3 for further information regarding investments in securities and fair value.

Comprehensive Income

Comprehensive Income

The Company's accumulated other comprehensive income is comprised of unrealized holding gains/losses on available-for-sale securities, net of tax, and unrecognized prior service cost and unrealized gains/losses associated with postretirement benefit liabilities, net of tax.  Accumulated other comprehensive income as of December 31, 2012 consists of $8,920,883 of unrealized holding gains on available-for-sale securities and $102,453 of unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities.  Accumulated other comprehensive income as of December 31, 2011 consists of $7,563,541 of unrealized holding gains on available-for-sale securities and $54,376 of unrecognized prior service cost and unrealized losses associated with postretirement benefit liabilities.

Share-Based Compensation

Share-Based Compensation

The Company accounts for share-based compensation in accordance with the fair value based principles required by the Financial Accounting Standards Board ("FASB").  Estimated compensation expense for awards outstanding at the effective date is recognized over their remaining service period using the compensation cost.  Share-based compensation cost is generally measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee's requisite service period.

As the share-based compensation expense recognized in the Consolidated Statements of Income is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures.  Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Other Intangible Assets
Subsequent Events

Subsequent Events

The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In June 2011, the FASB updated requirements relating to the presentation of comprehensive income.  The objectives of this accounting update are to facilitate convergence of GAAP and International Financial Reporting Standards ("IFRS"), to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income.  The main provisions of the guidance require that all nonowner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  For public entities, this update became effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.  The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.

In May 2011, the FASB updated requirements for measuring and disclosing fair value information, resulting in common principles and requirements in accordance with GAAP and IFRS.  For public entities, this guidance became effective during interim and annual periods beginning after December 15, 2011.  The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.

Pending Accounting Standards

Pending Accounting Standards

In June 2011, the FASB updated requirements relating to the presentation of comprehensive income.  In December 2011, the FASB issued a subsequent update to defer those changes in the June 2011 update that relate to the presentation of reclassification adjustments.  All other requirements of the June 2011 update are not affected by the December 2011 update.  The amendments were being made to allow the FASB time to re-deliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. On February 5, 2013, the FASB did add new disclosure requirements for items reclassified out of accumulated other comprehensive income. This update will become effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The guidance is not expected to have an impact on the Company's financial condition or results of operations.

Use Of Estimates And Assumptions

Use of Estimates and Assumptions

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ materially from those estimates and assumptions used.  The more significant of these estimates and assumptions include the following:

ClaimsThe Company's reserves for claims are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future (incurred but not reported,  or "IBNR").  A provision for estimated future claims payments is recorded at the time policy revenue is recorded as a percentage of premium income. By their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. In addition, some claims may require a number of years to settle and determine the final liability for indemnity and loss adjustment expense. The payment experience may extend for more than 20 years after the issuance of a policy. Events such as fraud, defalcation and multiple property defects can substantially and unexpectedly cause increases in estimates of losses. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability.

Management considers factors such as the Company's historical claims experience, case reserve estimates on reported claims, large claims, actuarial projections and other relevant factors in determining loss provision rates and the aggregate recorded expected liability for claims. In establishing reserves, actuarial projections are compared with recorded reserves to evaluate the adequacy of such recorded claims reserves and any necessary adjustments are then recorded in current operations. As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data. The Company reflects any adjustments to reserves in the results of operations in the period in which new information (principally claims experience) becomes available.

ImpairmentsSecurities are regularly evaluated and reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporaryWhen, in the opinion of management, a decline in the fair value of an investment is considered to be other-than-temporary, such investment is written down to its fair value. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost, the probability that the Company will be unable to collect all amounts due under the contractual terms of the security; with respect to equity securities, whether the Company's ability and intent to retain the investment for a period of time is sufficient to allow for a recovery in value; with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before recovery in value; and the financial condition and prospects of the issuer (including credit ratings).  These factors are reviewed quarterly and any material degradation in the prospect for recovery will be considered in the other-than-temporary impairment analysis.  Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss.  The fair values of the majority of the Company's investments are based on quoted market prices from independent pricing services.


Basis Of Presentation And Significant Accounting Policies (Details)
v0.0.0.0
Basis Of Presentation And Significant Accounting Policies (Details) (USD $)
12 Months Ended
Dec. 31, 2012
item
state
Dec. 31, 2011
Number of title insurance subsidiaries 2  
Number of states in which entity issues insurance 22  
Aggregated cost of investment under cost method $ 1,778,115 $ 1,210,687
Premium collection period before reserved 6 months  
Unrealized holding gains on available-for-sale securities 8,920,883 7,563,541
Amount recognized in accumulated other comprehensive income, net of tax $ 102,453 $ 54,376
Potential claim payment period after policy issuance 20 years  
Minimum [Member]
   
Remaining original maturities of short-term investments 3 months  
Property and equipment useful lives 3 years  
Lag time period 30 days  
Transaction reporting period 60 days  
Maximum [Member]
   
Remaining original maturities of cash equivalents 3 months  
Remaining original maturities of short-term investments 12 months  
Property and equipment useful lives 25 years  
Lag time period 120 days  
Transaction reporting period 90 days  

Statutory Restrictions On Consolidated Stockholders' Equity And Investments
v0.0.0.0
Statutory Restrictions On Consolidated Stockholders' Equity And Investments
12 Months Ended
Dec. 31, 2012
Statutory Restrictions On Consolidated Stockholders' Equity And Investments [Abstract]  
Statutory Restrictions On Consolidated Stockholders' Equity And Investments

2. Statutory Restrictions on Consolidated Stockholders' Equity and Investments

     The Company has designated approximately $44,829,000 and $42,288,000 of retained earnings as of December 31, 2012 and 2011, respectively, as appropriated to reflect the required statutory premium and supplemental reserves. See Note 8 for the tax treatment of the statutory premium reserve.

     As of December 31, 2012 and 2011 approximately $76,167,000 and $73,216,000, respectively, of consolidated stockholders' equity represents net assets of the Company's subsidiaries that cannot be transferred in the form of dividends, loans or advances to the parent company under statutory regulations without prior insurance department approval.

     Bonds totaling approximately $6,700,000 and $6,704,000 at December 31, 2012 and 2011 respectively, are deposited with the insurance departments of the states in which business is conducted.


Statutory Restrictions On Consolidated Stockholders' Equity And Investments (Details)
v0.0.0.0
Statutory Restrictions On Consolidated Stockholders' Equity And Investments (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Statutory Restrictions On Consolidated Stockholders' Equity And Investments [Abstract]    
Statutory accounting statutory premium and supplemental reserves $ 44,829,000 $ 42,288,000
Amount available for dividend distributions with approval from regulatory agencies 76,167,000 73,216,000
Investments on deposit with state insurance departments $ 6,700,000 $ 6,704,000

Investments In Securities And Fair Value
v0.0.0.0
Investments In Securities And Fair Value
12 Months Ended
Dec. 31, 2012
Investments In Securities And Fair Value [Abstract]  
Investments In Securities And Fair Value

3. Investments in Securities and Fair Value

     The aggregate fair value, gross unrealized holding gains, gross unrealized holding losses, and amortized cost for securities by major security type at December 31 were as follows:

        Gross   Gross   Estimated
    Amortized   Unrealized   Unrealized   Fair
December 31, 2012   Cost   Gains   Losses   Value
Fixed maturities, available-for-sale, at fair value-                
General obligations of U.S. States, territories                
and political subdivisions $ 38,658,463 $ 3,211,445 $ 0 $ 41,869,908
Issuer obligations of U.S. States, territories and                
political subdivisions special revenue   18,933,299   1,909,106   10,455   20,831,950
Corporate debt securities   17,064,697   1,252,973   14,750   18,302,920
Auction rate securities   917,214   14,986   0   932,200
Total $ 75,573,673 $ 6,388,510 $ 25,205 $ 81,936,978
Equity securities, available-for-sale at fair value-                
Common stocks and nonredeemable preferred stocks $ 21,229,114 $ 7,373,056 $ 91,237 $ 28,510,933
Total $ 21,229,114 $ 7,373,056 $ 91,237 $ 28,510,933
Short-term investments-                
Certificates of deposit and other $ 13,567,648 $ 0 $ 0 $ 13,567,648
Total $ 13,567,648 $ 0 $ 0 $ 13,567,648

 

        Gross   Gross   Estimated
    Amortized   Unrealized   Unrealized   Fair
December 31, 2011   Cost   Gains   Losses   Value
Fixed maturities, available-for-sale, at fair value-                
General obligations of U.S. States, territories                
and political subdivisions $ 41,469,367 $ 3,595,144 $ 64 $ 45,064,447
Issuer obligations of U.S. States, territories and                
political subdivisions special revenue   20,573,562   1,988,589   13,805   22,548,346
Corporate debt securities   12,188,639   1,202,149   148,616   13,242,172
Auction rate securities   4,552,400   0   0   4,552,400
Total $ 78,783,968 $ 6,785,882 $ 162,485 $ 85,407,365
Equity securities, available-for sale at fair value-                
Common stocks and nonredeemable preferred stocks $ 17,652,745 $ 4,939,053 $ 41,823 $ 22,549,975
Total $ 17,652,745 $ 4,939,053 $ 41,823 $ 22,549,975
Short-term investments-                
Certificates of deposit and other $ 14,112,262 $ 0 $ 0 $ 14,112,262
Total $ 14,112,262 $ 0 $ 0 $ 14,112,262

 

The scheduled maturities of fixed maturity securities at December 31, 2012 were as follows:

    Available-for-Sale
    Amortized   Fair
    Cost   Value
Due in one year or less $ 8,717,614 $ 8,851,190
Due after one year through five years   49,575,672   53,834,059
Due five years through ten years   14,328,875   15,800,393
Due after ten years   2,951,512   3,451,336
Total $ 75,573,673 $ 81,936,978

 

 

Earnings on investments for the years ended December 31 were as follows:

    2012   2011
 
Fixed maturities $ 3,154,131 $ 3,233,988
Equity securities   815,674   347,843
Invested cash and other short-term investments   10,576   12,725
Miscellaneous interest   30   480
Investment income $ 3,980,411 $ 3,595,036

 

Gross realized gains and losses on sales of available-for-sale securities for the years ended December 31 are summarized as follows:

    2012     2011  
Gross realized gains:            
General obligations of U.S. States, territories and political subdivisions $ 250   $ 386  
Corporate   52,396     20,459  
Common stocks and nonredeemable preferred stocks   450,461     529,811  
Auction rate securities   211,061     43,199  
Total   714,168     593,855  
Gross realized losses:            
Common stocks and nonredeemable preferred stocks   (91,975 )   (247,117 )
Other than temporary impairment of securities   (93,436 )   (280,987 )
Total   (185,411 )   (528,104 )
Net realized gain $ 528,757   $ 65,751  

 

     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 net gains and impairments of other investments and net gains (losses) on sales and impairments of property acquired in the settlement of claims totaling $537,482 and $(37,192) for the twelve months ended December 31, 2012 and 2011, 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 December 31, 2012 and 2011.

    Less than 12 Months     12 Months or Longer     Total  
December 31, 2012   Fair Value Unrealized Loss     Fair Value Unrealized Loss     Fair Value Unrealized Loss  
Issuer obligations of U.S.                              
States, territories and                              
political subdivisions                              
special revenue $ 1,236,906 $ (10,455 ) $ 0 $ 0   $ 1,236,906 $ (10,455 )
Corporate debt securities   985,250   (14,750 )   0   0     985,250   (14,750 )
Total fixed maturity                              
securities $ 2,222,156 $ (25,205 ) $ 0 $ 0   $ 2,222,156 $ (25,205 )
Equity securities   2,551,215   (91,237 )   0   0     2,551,215   (91,237 )
Total temporarily                              
impaired securities $ 4,773,371 $ (116,442 ) $ 0 $ 0   $ 4,773,371 $ (116,442 )
 
December 31, 2011                              
General obligations of                              
U.S. States, territories                              
and political                              
subdivisions $ 663,666 $ (64 ) $ 0 $ 0   $ 663,666 $ (64 )
Issuer obligations of U.S.                              
States, territories and                              
political subdivisions                              
special revenue   0   0     1,023,180   (13,805 )   1,023,180   (13,805 )
Corporate debt securities   3,015,769   (148,616 )   0   0     3,015,769   (148,616 )
Total fixed maturity                              
securities $ 3,679,435 $ (148,680 ) $ 1,023,180 $ (13,805 ) $ 4,702,615 $ (162,485 )
Equity securities   957,072   (40,893 )   104,130   (930 )   1,061,202   (41,823 )
Total temporarily                              
impaired securities $ 4,636,507 $ (189,573 ) $ 1,127,310 $ (14,735 ) $ 5,763,817 $ (204,308 )

 

 

     As of December 31, 2012, the Company held $2,222,156 in fixed maturity securities with unrealized losses of $25,205. As of December 31, 2011, the Company held $4,702,615 in fixed maturity securities with unrealized losses of $162,485. 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 likely will 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 December 31, 2012, the Company held $2,551,215 in equity securities with unrealized losses of $91,237. As of December 31, 2011, the Company held $1,061,202 in equity securities with unrealized losses of $41,823. 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 7 and 13 securities had unrealized losses at December 31, 2012 and December 31, 2011, 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 2012, the Company recorded an other-than-temporary impairment charge in the amount of $93,436 related to securities. During 2011, the Company recorded an other-than-temporary impairment charge in the amount of $280,987 related to securities, of which, $101,861 was related to Level 3 ARS that have had a history of being below cost and a change in intent not to sell. Other-than-temporary impairment charges are included in net realized gain on investments in the Consolidated Statements of Income.

     Valuation Hierarchy. The FASB has established a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs to the valuation methodology are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs to the valuation methodology are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company's own assumptions used to measure assets and liabilities at fair value.

     Valuation Techniques. A financial instrument's classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement—consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument's hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls.

The Level 1 category includes equity securities that are measured at fair value using quoted active market prices.

     The Level 2 category includes fixed maturity investments such as corporate bonds, U.S. government and agency bonds and municipal bonds. Their fair value is principally based on market values obtained from a third party pricing service. Factors that are used in determining their fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from the pricing service, although as discussed below, the Company does consult other price resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with ASC 820, Fair Value Measurements and Disclosures. Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of December 31, 2012 and 2011, the Company did not adjust any Level 2 fair values.

     A number of the Company's investment grade corporate bonds are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities were classified as Level 2 because the third party pricing service from which the Company has obtained fair values for these instruments uses valuation models which use observable market inputs in addition to traded prices. Substantially all of the input assumptions used in the service's model are observable in the marketplace or can be derived or supported by observable market data.

     The Level 3 category only includes the Company's investments in student loan ARS because quoted prices were unavailable due to the failure of auctions. Some of the inputs to this model are unobservable in the market and are significant—therefore, the Company utilizes another third party pricing service to assist in the determination of fair market value of these securities. That service uses a proprietary valuation model that considers factors such as the following: the financial standing of the issuer; reported prices and the extent of public trading in similar financial instruments of the issuer or comparable companies; the ability of the issuer to obtain required financing; changes in the economic conditions affecting the issuer; pricing by other dealers in similar securities; time to maturity; and interest rates. The following table summarizes some key assumptions the service used to determine fair value as of December 31, 2012 and 2011:

  2012   2011  
Cumulative probability of earning maximum rate until maturity % 0.0-0.1 %
Cumulative probability of principle returned prior to maturity
96.1
% 95.4-98.7%  
Cumulative probability of default at some future point
3.9
% 1.3-4.6 %

 

     Based upon these inputs and assumptions, the pricing service provides a range of values to the Company for its ARS. The Company records the fair value based on the midpoint of the range and believes that this valuation is the most reasonable estimate of fair value. In 2012 and 2011, the difference in the low and high values of the ranges was approximately zero and three percent of the carrying value of the Company's ARS.

     The Company's ARS portfolio is comprised entirely of investment grade student loan ARS. The par value of the ARS bonds was $1,000,000 and $5,000,000 as of December 31, 2012 and 2011, respectively, with approximately 97.0% and 79.6% as of December 31, 2012 and 2011, respectively, guaranteed by the U.S. Department of Education.

 

     The following table presents, by level, the financial assets carried at fair value measured on a recurring basis as of December 31, 2012 and 2011. The table does not include cash on hand and also does not include assets which are measured at historical cost or any basis other than fair value. Level 3assets are comprised solely of ARS.

As of December 31, 2012   Level 1   Level 2   Level 3   Total
Short Term $ 13,567,648 $ 0 $ 0 $ 13,567,648
Equity Securities                
Common stock and nonredeemable preferred stock   28,510,933   0   0   28,510,933
Fixed Maturities                
Obligations of U.S. States, territories and political subdivisions*   0   62,701,858   0   62,701,858
Corporate debt securities*   0   18,302,920   932,200   19,235,120
Total $ 42,078,581 $ 81,004,778 $ 932,200 $ 124,015,559

 

As of December 31, 2011   Level 1   Level 2   Level 3   Total
Short Term $ 14,112,262 $ 0 $ 0 $ 14,112,262
Equity Securities                
Common stock and nonredeemable preferred stock   22,549,975   0   0   22,549,975
Fixed Maturities                
Obligations of U.S. States, territories and political subdivisions*   0   67,612,793   1,834,700   69,447,493
Corporate debt securities*   0   13,242,172   2,717,700   15,959,872
Total $ 36,662,237 $ 80,854,965 $ 4,552,400 $ 122,069,602

 

*Denotes fair market value obtained from pricing services.

There were no transfers into or out of Levels 1 and 2 during the period.

     To help ensure that fair value determinations are consistent with ASC 820 fair value measurements, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks and default rates. The Company reviews the procedures and inputs used by its pricing services and verifies a sample of the services' quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data. The Company believes that these processes and inputs result in appropriate classifications and fair values consistent with ASC 820.

Other Financial Instruments

     The Company uses various financial instruments in the normal course of its business. In the measurement of the fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, ASC 820 excludes from its scope certain financial instruments including those related to insurance contracts, pension and other postretirement benefits, and equity method investments.

In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions:

Cash and cash equivalents

The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments.

Cost-basis investments

The estimated fair value of cost basis investments is calculated from the book value of the underlying entities, which is not materially different from the fair market value of the underlying entity.

Accrued dividends and interest

The carrying amount for accrued dividends and interest is a reasonable estimate of fair value due to the short-term maturity of these assets.

Contingent consideration

     The fair value of the contingent consideration was estimated based on the discounted value of the future cash flows. Contingent consideration consists of additional monies the Company may become obligated to pay based on the future performance of a business the Company acquired, as discussed in Note 18.

 

     The carrying amounts and fair values of these financial instruments (please note investments are disclosed in a previous table) as of December 31, 2012 and 2011 are presented in the following table:

As of December 31, 2012:

        Estimated Fair            
Financial Assets   Carrying Value   Value   Level 1 Level 2   Level 3
Cash $ 20,810,018 $ 20,810,018 $ 20,810,018 $ 0 $ 0
Cost-basis investments   1,871,315   1,952,323   0   0   1,952,323
Accrued dividends and interest   1,037,447   1,037,447   1,037,447   0   0
Total $ 23,718,780 $ 23,799,788 $ 21,847,465 $ 0 $ 1,952,323
 
Financial Liabilities                    
Contingent consideration $ 691,250 $ 691,250 $ 0 $ 0 $ 691,250
Total $ 691,250 $ 691,250 $ 0 $ 0 $ 691,250

 

As of December 31, 2011:

        Estimated Fair              
Financial Assets   Carrying Value   Value   Level 1 Level 2   Level 3  
Cash $ 18,042,258 $ 18,042,258 $ 18,042,258 $ 0 $ 0  
Cost-basis investments   1,303,887   1,688,262   0   0   1,688,262  
Accrued dividends and interest   1,108,156   1,108,156   1,108,156   0   0  
Total $ 20,454,301 $ 20,838,676 $ 19,150,414 $ 0   1,688,262 

 

     The following table presents a reconciliation of the Company's assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which are all ARS securities, for the twelve months ended December 31, 2012 and 2011:

Changes in fair value during the year ended December 31:   2012     2011  
Beginning balance at January 1 $ 4,552,400   $ 5,472,244  
Redemptions and sales   (3,900,000 )   (900,000 )
Realized gain – included in net realized gain on investments   211,061     43,199  
Realized loss – included in net realized gain on investments   0     (101,861 )
Unrealized gain - included in other comprehensive income   68,739     38,818  
Ending balance at December 31 $ 932,200   $ 4,552,400  

 

     The following table presents a reconciliation of the Company's liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), consisting solely of contingent consideration, for the twelve months ended December 31, 2012 and 2011:

Changes in fair value during the period ended:   2012   2011
Beginning balance at January 1 $ - $ -
Addition of contingent consideration   691,250   -
Ending balance, net $ 691,250 $ -

 

     Certain cost method investments are measured at estimated fair value on a non-recurring basis, such as investments that are determined to be other-than temporarily impaired during the period and recorded at estimated fair value in the Consolidated Financial Statements as of December 31, 2012 and 2011. The following table summarizes the corresponding estimated fair value hierarchy of such investments at December 31, 2012 and 2011 and the related impairments recognized:

 

                    Total at      
                    Estimated      
  Valuation                 Fair   Impairment  
December 31, 2012 Method Impaired Level 1   Level 2   Level 3   Value   Losses  
Cost method                          
investments Fair Value Yes $ 0 $ 0 $ 36,406 $ 36,406 $ (6,504 )
Other assets Fair Value Yes   0   0   0   0   0  
Total cost method                          
investments and                          
other assets     $ 0 $ 0 $ 36,406 $ 36,406 $ (6,504 )
 
                    Total at      
  Valuation                 Estimated   Impairment  
December 31, 2011 Method Impaired Level 1   Level 2   Level 3   Fair Value   Losses  
Cost method                          
investments Fair Value Yes $ 0 $ 0 $ 58,281 $ 58,281 $ (28,904 )
Other assets Fair Value Yes   0   0   17,000   17,000   (15,500 )
Total cost method                          
investments and other                          
assets     $ 0 $ 0 $ 75,281 $ 75,281 $ (44,404 )

 


Investments In Securities And Fair Value (Tables)
v0.0.0.0
Investments In Securities And Fair Value (Tables)
12 Months Ended
Dec. 31, 2012
Investments In Securities And Fair Value [Abstract]  
Schedule Of Gross Unrealized Gains And Losses And Amortized Cost For Securities
        Gross   Gross   Estimated
    Amortized   Unrealized   Unrealized   Fair
December 31, 2012   Cost   Gains   Losses   Value
Fixed maturities, available-for-sale, at fair value-                
General obligations of U.S. States, territories                
and political subdivisions $ 38,658,463 $ 3,211,445 $ 0 $ 41,869,908
Issuer obligations of U.S. States, territories and                
political subdivisions special revenue   18,933,299   1,909,106   10,455   20,831,950
Corporate debt securities   17,064,697   1,252,973   14,750   18,302,920
Auction rate securities   917,214   14,986   0   932,200
Total $ 75,573,673 $ 6,388,510 $ 25,205 $ 81,936,978
Equity securities, available-for-sale at fair value-                
Common stocks and nonredeemable preferred stocks $ 21,229,114 $ 7,373,056 $ 91,237 $ 28,510,933
Total $ 21,229,114 $ 7,373,056 $ 91,237 $ 28,510,933
Short-term investments-                
Certificates of deposit and other $ 13,567,648 $ 0 $ 0 $ 13,567,648
Total $ 13,567,648 $ 0 $ 0 $ 13,567,648

 

        Gross   Gross   Estimated
    Amortized   Unrealized   Unrealized   Fair
December 31, 2011   Cost   Gains   Losses   Value
Fixed maturities, available-for-sale, at fair value-                
General obligations of U.S. States, territories                
and political subdivisions $ 41,469,367 $ 3,595,144 $ 64 $ 45,064,447
Issuer obligations of U.S. States, territories and                
political subdivisions special revenue   20,573,562   1,988,589   13,805   22,548,346
Corporate debt securities   12,188,639   1,202,149   148,616   13,242,172
Auction rate securities   4,552,400   0   0   4,552,400
Total $ 78,783,968 $ 6,785,882 $ 162,485 $ 85,407,365
Equity securities, available-for sale at fair value-                
Common stocks and nonredeemable preferred stocks $ 17,652,745 $ 4,939,053 $ 41,823 $ 22,549,975
Total $ 17,652,745 $ 4,939,053 $ 41,823 $ 22,549,975
Short-term investments-                
Certificates of deposit and other $ 14,112,262 $ 0 $ 0 $ 14,112,262
Total $ 14,112,262 $ 0 $ 0 $ 14,112,262
Schedule Of Fixed Maturity Securities
    Available-for-Sale
    Amortized   Fair
    Cost   Value
Due in one year or less $ 8,717,614 $ 8,851,190
Due after one year through five years   49,575,672   53,834,059
Due five years through ten years   14,328,875   15,800,393
Due after ten years   2,951,512   3,451,336
Total $ 75,573,673 $ 81,936,978
Schedule Of Earnings On Investments
    2012   2011
 
Fixed maturities $ 3,154,131 $ 3,233,988
Equity securities   815,674   347,843
Invested cash and other short-term investments   10,576   12,725
Miscellaneous interest   30   480
Investment income $ 3,980,411 $ 3,595,036
Schedule Of Gross Realized Gains And Losses On Securities
    2012     2011  
Gross realized gains:            
General obligations of U.S. States, territories and political subdivisions $ 250   $ 386  
Corporate   52,396     20,459  
Common stocks and nonredeemable preferred stocks   450,461     529,811  
Auction rate securities   211,061     43,199  
Total   714,168     593,855  
Gross realized losses:            
Common stocks and nonredeemable preferred stocks   (91,975 )   (247,117 )
Other than temporary impairment of securities   (93,436 )   (280,987 )
Total   (185,411 )   (528,104 )
Net realized gain $ 528,757   $ 65,751  
Schedule Of Unrealized Losses On Investments
    Less than 12 Months     12 Months or Longer     Total  
December 31, 2012   Fair Value Unrealized Loss     Fair Value Unrealized Loss     Fair Value Unrealized Loss  
Issuer obligations of U.S.                              
States, territories and                              
political subdivisions                              
special revenue $ 1,236,906 $ (10,455 ) $ 0 $ 0   $ 1,236,906 $ (10,455 )
Corporate debt securities   985,250   (14,750 )   0   0     985,250   (14,750 )
Total fixed maturity                              
securities $ 2,222,156 $ (25,205 ) $ 0 $ 0   $ 2,222,156 $ (25,205 )
Equity securities   2,551,215   (91,237 )   0   0     2,551,215   (91,237 )
Total temporarily                              
impaired securities $ 4,773,371 $ (116,442 ) $ 0 $ 0   $ 4,773,371 $ (116,442 )
 
December 31, 2011                              
General obligations of                              
U.S. States, territories                              
and political                              
subdivisions $ 663,666 $ (64 ) $ 0 $ 0   $ 663,666 $ (64 )
Issuer obligations of U.S.                              
States, territories and                              
political subdivisions                              
special revenue   0   0     1,023,180   (13,805 )   1,023,180   (13,805 )
Corporate debt securities   3,015,769   (148,616 )   0   0     3,015,769   (148,616 )
Total fixed maturity                              
securities $ 3,679,435 $ (148,680 ) $ 1,023,180 $ (13,805 ) $ 4,702,615 $ (162,485 )
Equity securities   957,072   (40,893 )   104,130   (930 )   1,061,202   (41,823 )
Total temporarily                              
impaired securities $ 4,636,507 $ (189,573 ) $ 1,127,310 $ (14,735 ) $ 5,763,817 $ (204,308 )
Schedule Of Assumptions Used To Determine Fair Value
  2012   2011  
Cumulative probability of earning maximum rate until maturity % 0.0-0.1 %
Cumulative probability of principle returned prior to maturity
96.1
% 95.4-98.7%  
Cumulative probability of default at some future point
3.9
% 1.3-4.6 %
Schedule Of Fair Value Assets Measured On Recurring Basis
As of December 31, 2012   Level 1   Level 2   Level 3   Total
Short Term $ 13,567,648 $ 0 $ 0 $ 13,567,648
Equity Securities                
Common stock and nonredeemable preferred stock   28,510,933   0   0   28,510,933
Fixed Maturities                
Obligations of U.S. States, territories and political subdivisions*   0   62,701,858   0   62,701,858
Corporate debt securities*   0   18,302,920   932,200   19,235,120
Total $ 42,078,581 $ 81,004,778 $ 932,200 $ 124,015,559

 

As of December 31, 2011   Level 1   Level 2   Level 3   Total
Short Term $ 14,112,262 $ 0 $ 0 $ 14,112,262
Equity Securities                
Common stock and nonredeemable preferred stock   22,549,975   0   0   22,549,975
Fixed Maturities                
Obligations of U.S. States, territories and political subdivisions*   0   67,612,793   1,834,700   69,447,493
Corporate debt securities*   0   13,242,172   2,717,700   15,959,872
Total $ 36,662,237 $ 80,854,965 $ 4,552,400 $ 122,069,602

 

*Denotes fair market value obtained from pricing services.

Schedule Of Carrying Value And Fair Value Of Financial Assets Disclosed

As of December 31, 2012:

        Estimated Fair            
Financial Assets   Carrying Value   Value   Level 1 Level 2   Level 3
Cash $ 20,810,018 $ 20,810,018 $ 20,810,018 $ 0 $ 0
Cost-basis investments   1,871,315   1,952,323   0   0   1,952,323
Accrued dividends and interest   1,037,447   1,037,447   1,037,447   0   0
Total $ 23,718,780 $ 23,799,788 $ 21,847,465 $ 0 $ 1,952,323
 
Financial Liabilities                    
Contingent consideration $ 691,250 $ 691,250 $ 0 $ 0 $ 691,250
Total $ 691,250 $ 691,250 $ 0 $ 0 $ 691,250

 

As of December 31, 2011:

        Estimated Fair              
Financial Assets   Carrying Value   Value   Level 1 Level 2   Level 3  
Cash $ 18,042,258 $ 18,042,258 $ 18,042,258 $ 0 $ 0  
Cost-basis investments   1,303,887   1,688,262   0   0   1,688,262  
Accrued dividends and interest   1,108,156   1,108,156   1,108,156   0   0  
Total $ 20,454,301 $ 20,838,676 $ 19,150,414 $ 0   1,688,262 
Schedule Of Fair Value Assets Measured At Unobservable Inputs Reconciliation
Changes in fair value during the year ended December 31:   2012     2011  
Beginning balance at January 1 $ 4,552,400   $ 5,472,244  
Redemptions and sales   (3,900,000 )   (900,000 )
Realized gain – included in net realized gain on investments   211,061     43,199  
Realized loss – included in net realized gain on investments   0     (101,861 )
Unrealized gain - included in other comprehensive income   68,739     38,818  
Ending balance at December 31 $ 932,200   $ 4,552,400  
Schedule Of Changing In Fair Value Of Liabilities On Recurring Basis Using Significant Unobservable Inputs
Changes in fair value during the period ended:   2012   2011
Beginning balance at January 1 $ - $ -
Addition of contingent consideration   691,250   -
Ending balance, net $ 691,250 $ -
Schedule Of Estimated Fair Value Hierarchy Of Investments And Related Impairments Recognized
                    Total at      
                    Estimated      
  Valuation                 Fair   Impairment  
December 31, 2012 Method Impaired Level 1   Level 2   Level 3   Value   Losses  
Cost method                          
investments Fair Value Yes $ 0 $ 0 $ 36,406 $ 36,406 $ (6,504 )
Other assets Fair Value Yes   0   0   0   0   0  
Total cost method                          
investments and                          
other assets     $ 0 $ 0 $ 36,406 $ 36,406 $ (6,504 )
 
                    Total at      
  Valuation                 Estimated   Impairment  
December 31, 2011 Method Impaired Level 1   Level 2   Level 3   Fair Value   Losses  
Cost method                          
investments Fair Value Yes $ 0 $ 0 $ 58,281 $ 58,281 $ (28,904 )
Other assets Fair Value Yes   0   0   17,000   17,000   (15,500 )
Total cost method                          
investments and other                          
assets     $ 0 $ 0 $ 75,281 $ 75,281 $ (44,404 )

Investments In Securities And Fair Value (Narrative) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
security
Dec. 31, 2011
security
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]    
Impairments of other investments and loss on sale of property acquired in the settlement of claims $ 537,482 $ (37,192)
Available for sale securities, fixed maturity 81,936,978 85,407,365
Available for sale securities, unrealized losses 25,205 162,485
Available for sale securities, equity securities 28,510,933 22,549,975
Number of securities with unrealized losses 7 13
Other-than-temporary impairment charges related to securities and other assets 93,436 280,987
Fixed Maturities [Member]
   
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]    
Available for sale securities, fixed maturity 2,222,156 4,702,615
Available for sale securities, unrealized losses 25,205 162,485
Equity Securities [Member]
   
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]    
Available for sale securities, unrealized losses 91,237 41,823
Available for sale securities, equity securities 2,551,215 1,061,202
Auction Rate Securities [Member]
   
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]    
Difference in low to high range values as percent of carrying value 0.00% 3.00%
ARS par value 1,000,000 5,000,000
Percent of par value guaranteed by U.S. Department Of Education 97.00% 79.60%
Level 3 [Member] | Auction Rate Securities [Member]
   
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]    
Other-than-temporary impairment charges related to securities and other assets   $ 101,861

Investments In Securities And Fair Value (Schedule Of Gross Unrealized Gains And Losses And Amortized Cost For Securities) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Gross Unrealized Gains And Losses And Amortized Cost For Securities) (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Available-for-sale, at fair value, Amortized Cost $ 75,573,673 $ 78,783,968
Available-for-sale, at fair value, Gross Unrealized Gains 6,388,510 6,785,882
Available-for-sale, at fair value, Gross Unrealized Losses 25,205 162,485
Available-for-sale, at fair value, Estimated Fair Value 81,936,978 85,407,365
Equity Securities, available-for-sale at fair value, Amortized Cost 21,229,114 17,652,745
Equity Securities, available-for-sale at fair value, Gross Unrealized Gains 7,373,056 4,939,053
Equity Securities, available-for-sale at fair value, Gross Unrealized Losses 91,237 41,823
Equity Securities, available-for-sale at fair value, Estimated Fair Value 28,510,933 22,549,975
Short-term investments, Amortized Cost 13,567,648 14,112,262
Short-term investments, Gross Unrealized Gains 0 0
Short-term investments, Gross Unrealized Losses 0 0
Short-term investments, Estimated Fair Value 13,567,648 14,112,262
General Obligations Of U.S. States, Territories And Political Subdivisions [Member]
   
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Available-for-sale, at fair value, Amortized Cost 38,658,463 41,469,367
Available-for-sale, at fair value, Gross Unrealized Gains 3,211,445 3,595,144
Available-for-sale, at fair value, Gross Unrealized Losses 0 64
Available-for-sale, at fair value, Estimated Fair Value 41,869,908 45,064,447
Issuer Obligations Of U.S. States, Territories And Political Subdivisions Special Revenue [Member]
   
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Available-for-sale, at fair value, Amortized Cost 18,933,299 20,573,562
Available-for-sale, at fair value, Gross Unrealized Gains 1,909,106 1,988,589
Available-for-sale, at fair value, Gross Unrealized Losses 10,455 13,805
Available-for-sale, at fair value, Estimated Fair Value 20,831,950 22,548,346
Corporate Debt Securities [Member]
   
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Available-for-sale, at fair value, Amortized Cost 17,064,697 12,188,639
Available-for-sale, at fair value, Gross Unrealized Gains 1,252,973 1,202,149
Available-for-sale, at fair value, Gross Unrealized Losses 14,750 148,616
Available-for-sale, at fair value, Estimated Fair Value 18,302,920 13,242,172
Auction Rate Securities [Member]
   
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Available-for-sale, at fair value, Amortized Cost 917,214 4,552,400
Available-for-sale, at fair value, Gross Unrealized Gains 14,986 0
Available-for-sale, at fair value, Gross Unrealized Losses 0 0
Available-for-sale, at fair value, Estimated Fair Value 932,200 4,552,400
Common Stocks And Nonredeemable Preferred Stocks [Member]
   
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Equity Securities, available-for-sale at fair value, Amortized Cost 21,229,114 17,652,745
Equity Securities, available-for-sale at fair value, Gross Unrealized Gains 7,373,056 4,939,053
Equity Securities, available-for-sale at fair value, Gross Unrealized Losses 91,237 41,823
Equity Securities, available-for-sale at fair value, Estimated Fair Value 28,510,933 22,549,975
Certificates Of Deposit And Other [Member]
   
Schedule of Trading Securities and Other Trading Assets [Line Items]    
Short-term investments, Amortized Cost 13,567,648 14,112,262
Short-term investments, Gross Unrealized Gains 0 0
Short-term investments, Gross Unrealized Losses 0 0
Short-term investments, Estimated Fair Value $ 13,567,648 $ 14,112,262

Investments In Securities And Fair Value (Schedule Of Fixed Maturity Securities) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Fixed Maturity Securities) (Details) (USD $)
Dec. 31, 2012
Investments In Securities And Fair Value [Abstract]  
Due in one year or less, Amortized Cost $ 8,717,614
Due after one year through five years, Amortized Cost 49,575,672
Due five years through ten years, Amortized Cost 14,328,875
Due after ten years, Amortized Cost 2,951,512
Total, Amortized Cost 75,573,673
Due in one year or less, Fair Value 8,851,190
Due after one year through five years, Fair Value 53,834,059
Due five years through ten years, Fair Value 15,800,393
Due after ten years, Fair Value 3,451,336
Total, Fair Value $ 81,936,978

Investments In Securities And Fair Value (Schedule Of Earnings On Investments) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Earnings On Investments) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Schedule of Investment Income, Reported Amounts, by Category [Line Items]    
Investment income $ 3,980,411 $ 3,595,036
Fixed Maturities [Member]
   
Schedule of Investment Income, Reported Amounts, by Category [Line Items]    
Investment income 3,154,131 3,233,988
Equity Securities [Member]
   
Schedule of Investment Income, Reported Amounts, by Category [Line Items]    
Investment income 815,674 347,843
Cash and Cash Equivalents [Member]
   
Schedule of Investment Income, Reported Amounts, by Category [Line Items]    
Investment income 10,576 12,725
Miscellaneous Interest [Member]
   
Schedule of Investment Income, Reported Amounts, by Category [Line Items]    
Investment income $ 30 $ 480

Investments In Securities And Fair Value (Schedule Of Gross Realized Gains And Losses On Securities) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Gross Realized Gains And Losses On Securities) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]    
Total, Gross realized gains $ 714,168 $ 593,855
Total, Gross realized losses (185,411) (528,104)
Net realized gain 528,757 65,751
General Obligations Of U.S. States, Territories And Political Subdivisions [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Total, Gross realized gains 250 386
Corporate Debt Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Total, Gross realized gains 52,396 20,459
Common Stocks And Nonredeemable Preferred Stocks [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Total, Gross realized gains 450,461 529,811
Total, Gross realized losses (91,975) (247,117)
Auction Rate Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Total, Gross realized gains 211,061 43,199
Other Than Temporary Impairment Of Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Total, Gross realized losses $ (93,436) $ (280,987)

Investments In Securities And Fair Value (Schedule Of Unrealized Losses On Investments) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Unrealized Losses On Investments) (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]    
Total temporarily impaired securities, Less than 12 Months, Fair Value $ 4,773,371 $ 4,636,507
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses (116,442) (189,573)
Total temporarily impaired securities, 12 Months or Longer, Fair Value 0 1,127,310
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses 0 (14,735)
Total temporarily impaired securities, Total Fair Value 4,773,371 5,763,817
Total temporarily impaired securities, Total Unrealized Losses (116,442) (204,308)
Issuer Obligations Of U.S. States, Territories And Political Subdivisions Special Revenue [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Total temporarily impaired securities, Less than 12 Months, Fair Value 1,236,906  
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses (10,455)  
Total temporarily impaired securities, 12 Months or Longer, Fair Value 0  
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses 0  
Total temporarily impaired securities, Total Fair Value 1,236,906  
Total temporarily impaired securities, Total Unrealized Losses (10,455)  
General Obligations Of U.S. States, Territories And Political Subdivisions [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Total temporarily impaired securities, Less than 12 Months, Fair Value   663,666
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses   (64)
Total temporarily impaired securities, 12 Months or Longer, Fair Value   0
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses   0
Total temporarily impaired securities, Total Fair Value   663,666
Total temporarily impaired securities, Total Unrealized Losses   (64)
Corporate Debt Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Total temporarily impaired securities, Less than 12 Months, Fair Value 985,250 3,015,769
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses (14,750) (148,616)
Total temporarily impaired securities, 12 Months or Longer, Fair Value 0 0
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses 0 0
Total temporarily impaired securities, Total Fair Value 985,250 3,015,769
Total temporarily impaired securities, Total Unrealized Losses (14,750) (148,616)
Total Fixed Income Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Total temporarily impaired securities, Less than 12 Months, Fair Value 2,222,156 3,679,435
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses (25,205) (148,680)
Total temporarily impaired securities, 12 Months or Longer, Fair Value 0 1,023,180
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses 0 (13,805)
Total temporarily impaired securities, Total Fair Value 2,222,156 4,702,615
Total temporarily impaired securities, Total Unrealized Losses (25,205) (162,485)
Equity Securities [Member]
   
Schedule of Available-for-sale Securities [Line Items]    
Total temporarily impaired securities, Less than 12 Months, Fair Value 2,551,215 957,072
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses (91,237) (40,893)
Total temporarily impaired securities, 12 Months or Longer, Fair Value 0 104,130
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses 0 (930)
Total temporarily impaired securities, Total Fair Value 2,551,215 1,061,202
Total temporarily impaired securities, Total Unrealized Losses $ (91,237) $ (41,823)

Investments In Securities And Fair Value (Schedule Of Assumptions Used To Determine Fair Value) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Assumptions Used To Determine Fair Value) (Details)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Minimum [Member]
Dec. 31, 2011
Maximum [Member]
Fair Value Measurement [Line Items]      
Cumulative probability of earning maximum rate until maturity 0.00% 0.00% 0.10%
Cumulative probability of principle returned prior to maturity 96.10% 95.40% 98.70%
Cumulative probability of default at some future point 3.90% 1.30% 4.60%

Investments In Securities And Fair Value (Schedule Of Fair Value Assets Measured On Recurring Basis) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Fair Value Assets Measured On Recurring Basis) (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short Term $ 13,567,648 $ 14,112,262
Equity securities 28,510,933 22,549,975
Fixed maturities 81,936,978 85,407,365
Total 124,015,559 122,069,602
Level 1 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short Term 13,567,648 14,112,262
Total 42,078,581 36,662,237
Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short Term 0 0
Total 81,004,778 80,854,965
Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short Term 0 0
Total 932,200 4,552,400
Common Stock And Nonredeemable Preferred Stock [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 28,510,933 22,549,975
Common Stock And Nonredeemable Preferred Stock [Member] | Level 1 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 28,510,933 22,549,975
Common Stock And Nonredeemable Preferred Stock [Member] | Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 0 0
Common Stock And Nonredeemable Preferred Stock [Member] | Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Equity securities 0 0
Obligations Of States And Political Subdivisions [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fixed maturities 62,701,858 [1] 69,447,493 [1]
Obligations Of States And Political Subdivisions [Member] | Level 1 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fixed maturities 0 [1] 0 [1]
Obligations Of States And Political Subdivisions [Member] | Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fixed maturities 62,701,858 [1] 67,612,793 [1]
Obligations Of States And Political Subdivisions [Member] | Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fixed maturities 0 [1] 1,834,700 [1]
Corporate Debt Securities [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fixed maturities 19,235,120 [1] 15,959,872 [1]
Corporate Debt Securities [Member] | Level 1 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fixed maturities 0 [1] 0 [1]
Corporate Debt Securities [Member] | Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fixed maturities 18,302,920 [1] 13,242,172 [1]
Corporate Debt Securities [Member] | Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fixed maturities $ 932,200 [1] $ 2,717,700 [1]
[1] Denotes fair market value obtained from pricing services.

Investments In Securities And Fair Value (Schedule Of Carrying Value And Fair Value Of Financial Assets Disclosed) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Carrying Value And Fair Value Of Financial Assets Disclosed) (Details) (USD $)
Dec. 31, 2012
Apr. 02, 2012
Dec. 31, 2011
Cash, Carrying Value $ 20,810,018   $ 18,042,258
Cash, Estimated Fair Value 20,810,018   18,042,258
Cost-basis investment, Carrying Value 1,871,315   1,303,887
Cost-basis investment, Estimated Fair Value 1,952,323   1,688,262
Accrued dividends and interest, Carrying Value 1,037,447   1,108,156
Accrued dividends and interest, Estimated Fair Value 1,037,447   1,108,156
Total Financial Assets, Carrying Value 23,718,780   20,454,301
Total Financial Assets, Estimated Fair Value 23,799,788   20,838,676
Contingent liability, Carrying Value 691,250    
Contingent liability, Estimated Fair Value 691,250 691,250  
Total Financial Liabilities, Carrying Value 691,250    
Total Financial Liabilities, Estimated Fair Value 691,250    
Level 1 [Member]
     
Cash, Estimated Fair Value 20,810,018   18,042,258
Cost-basis investment, Estimated Fair Value 0   0
Accrued dividends and interest, Estimated Fair Value 1,037,447   1,108,156
Total Financial Assets, Estimated Fair Value 21,847,465   19,150,414
Contingent liability, Estimated Fair Value 0    
Total Financial Liabilities, Estimated Fair Value 0    
Level 2 [Member]
     
Cash, Estimated Fair Value 0   0
Cost-basis investment, Estimated Fair Value 0   0
Accrued dividends and interest, Estimated Fair Value 0   0
Total Financial Assets, Estimated Fair Value 0   0
Contingent liability, Estimated Fair Value 0    
Total Financial Liabilities, Estimated Fair Value 0    
Level 3 [Member]
     
Cash, Estimated Fair Value 0   0
Cost-basis investment, Estimated Fair Value 1,952,323   1,688,262
Accrued dividends and interest, Estimated Fair Value 0   0
Total Financial Assets, Estimated Fair Value 1,952,323   1,688,262
Contingent liability, Estimated Fair Value 691,250    
Total Financial Liabilities, Estimated Fair Value $ 691,250    

Investments In Securities And Fair Value (Schedule Of Fair Value Assets Measured At Unobservable Inputs Reconciliation) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Fair Value Assets Measured At Unobservable Inputs Reconciliation) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Fair Value Measurement [Abstract]    
Beginning balance at January 1 $ 4,552,400 $ 5,472,244
Redemptions and sales (3,900,000) (900,000)
Realized gain - included in realized gain on investments 211,061 43,199
Realized loss - included in realized gain on investments 0 (101,861)
Unrealized gain - included in other comprehensive income 68,739 38,818
Ending balance at December 31 $ 932,200 $ 4,552,400

Investments In Securities And Fair Value (Schedule Of Changing In Fair Value Of Liabilities On Recurring Basis Using Significant Unobservable Inputs) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Changing In Fair Value Of Liabilities On Recurring Basis Using Significant Unobservable Inputs) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Investments In Securities And Fair Value [Abstract]    
Beginning balance at January 1      
Addition of contingent liability 691,250   
Ending balance, net $ 691,250   

Investments In Securities And Fair Value (Schedule Of Estimated Fair Value Hierarchy Of Investments And Related Impairments Recognized) (Details)
v0.0.0.0
Investments In Securities And Fair Value (Schedule Of Estimated Fair Value Hierarchy Of Investments And Related Impairments Recognized) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total cost method investments and other assets, Total at Estimated Fair Value $ 36,406 $ 75,281
Total cost method investments and other assets, Impairment Losses (6,504) (44,404)
Level 1 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total cost method investments and other assets, Total at Estimated Fair Value 0 0
Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total cost method investments and other assets, Total at Estimated Fair Value 0 0
Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total cost method investments and other assets, Total at Estimated Fair Value 36,406 75,281
Cost Method Investment [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Valuation Method Fair Value Fair Value
Impaired Yes Yes
Total cost method investments and other assets, Total at Estimated Fair Value 36,406 58,281
Total cost method investments and other assets, Impairment Losses (6,504) (28,904)
Cost Method Investment [Member] | Level 1 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total cost method investments and other assets, Total at Estimated Fair Value 0 0
Cost Method Investment [Member] | Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total cost method investments and other assets, Total at Estimated Fair Value 0 0
Cost Method Investment [Member] | Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total cost method investments and other assets, Total at Estimated Fair Value 36,406 58,281
Other Assets [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Valuation Method Fair Value Fair Value
Impaired Yes Yes
Total cost method investments and other assets, Total at Estimated Fair Value 0 17,000
Total cost method investments and other assets, Impairment Losses 0 (15,500)
Other Assets [Member] | Level 1 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total cost method investments and other assets, Total at Estimated Fair Value 0 0
Other Assets [Member] | Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total cost method investments and other assets, Total at Estimated Fair Value 0 0
Other Assets [Member] | Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total cost method investments and other assets, Total at Estimated Fair Value $ 0 $ 17,000

Property And Equipment
v0.0.0.0
Property And Equipment
12 Months Ended
Dec. 31, 2012
Property And Equipment [Abstract]  
Property And Equipment

4. Property and Equipment

 

Property and equipment and estimated useful lives at December 31 are summarized as follows:

                        

 

2012

2011

Land

$
1,107,582 
$
1,107,582 

Office buildings and improvements (25 years)

3,345,762 
3,259,383 

Furniture, fixtures and equipment (3 to 10 years)

5,209,505 
5,114,112 

Automobiles (3 years)

787,180 
792,592 

    Total

10,450,029 
10,273,669 

Less accumulated depreciation

(6,846,706)
(6,720,453)

Property and equipment, net

$
3,603,323 
$
3,553,216 


Property And Equipment (Tables)
v0.0.0.0
Property And Equipment (Tables)
12 Months Ended
Dec. 31, 2012
Property And Equipment [Abstract]  
Schedule Of Property And Equipment

 

2012

2011

Land

$
1,107,582 
$
1,107,582 

Office buildings and improvements (25 years)

3,345,762 
3,259,383 

Furniture, fixtures and equipment (3 to 10 years)

5,209,505 
5,114,112 

Automobiles (3 years)

787,180 
792,592 

    Total

10,450,029 
10,273,669 

Less accumulated depreciation

(6,846,706)
(6,720,453)

Property and equipment, net

$
3,603,323 
$
3,553,216 

Property And Equipment (Schedule Of Property And Equipment) (Details)
v0.0.0.0
Property And Equipment (Schedule Of Property And Equipment) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Property, Plant and Equipment [Line Items]    
Total Property and equipment gross $ 10,450,029 $ 10,273,669
Less accumulated depreciation (6,846,706) (6,720,453)
Property and equipment, net 3,603,323 3,553,216
Minimum [Member]
   
Property, Plant and Equipment [Line Items]    
Property and equipment useful life 3 years  
Maximum [Member]
   
Property, Plant and Equipment [Line Items]    
Property and equipment useful life 25 years  
Land [Member]
   
Property, Plant and Equipment [Line Items]    
Total Property and equipment gross 1,107,582 1,107,582
Office Buildings And Improvements [Member]
   
Property, Plant and Equipment [Line Items]    
Total Property and equipment gross 3,345,762 3,259,383
Property and equipment useful life 25 years  
Furniture, Fixtures And Equipment [Member]
   
Property, Plant and Equipment [Line Items]    
Total Property and equipment gross 5,209,505 5,114,112
Furniture, Fixtures And Equipment [Member] | Minimum [Member]
   
Property, Plant and Equipment [Line Items]    
Property and equipment useful life 3 years  
Furniture, Fixtures And Equipment [Member] | Maximum [Member]
   
Property, Plant and Equipment [Line Items]    
Property and equipment useful life 10 years  
Automobiles [Member]
   
Property, Plant and Equipment [Line Items]    
Total Property and equipment gross $ 787,180 $ 792,592
Property and equipment useful life 3 years  

Reinsurance
v0.0.0.0
Reinsurance
12 Months Ended
Dec. 31, 2012
Reinsurance [Abstract]  
Reinsurance

5. Reinsurance

 

The Company assumes and cedes reinsurance with other insurance companies in the normal course of business.  Premiums assumed and ceded were approximately $16,000 and $233,000, respectively, for 2012 and $17,000 and $177,000, respectively, for 2011. Ceded reinsurance is comprised of excess of loss treaties, which protects against losses over certain amounts. The Company remains liable to the insured for claims under ceded insurance policies in the event that the assuming insurance companies are unable to meet their obligations under these contracts.  The Company has not paid or recovered any reinsured losses during the years ended December 31, 2012 and 2011.


Reinsurance (Details)
v0.0.0.0
Reinsurance (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Reinsurance [Abstract]    
Assumed premiums written $ 16,000 $ 17,000
Ceded premiums written $ 233,000 $ 177,000

Reserves For Claims
v0.0.0.0
Reserves For Claims
12 Months Ended
Dec. 31, 2012
Reserves For Claims [Abstract]  
Reserves For Claims

6. Reserves for Claims

Changes in the reserves for claims for the years ended December 31 are summarized as follows based on the year in which the policies were written:

    2012     2011  
Balance, beginning of year $ 37,996,000   $ 38,198,700  
Provisions related to:            
Current year   7,650,959     6,845,338  
Prior years   (1,578,844 )   (3,502,911 )
Total provision charged to operations   6,072,115     3,342,427  
Claims paid, net of recoveries, related to:            
Current year   (76,288 )   (305,079 )
Prior years   (4,913,827 )   (3,240,048 )
Total claims paid, net of recoveries   (4,990,115 )   (3,545,127 )
Balance, end of year $ 39,078,000   $ 37,996,000  

 

     The Company continually refines its reserve estimates as current loss experience develops and credible data emerges. Movements in the reserves related to prior periods were primarily the result of changes to estimates to better reflect the latest reported loss data. The 2012 calendar year change in the provision relating to prior years resulted mostly from favorable development in 2012 versus prior year related primarily to policy years 2010 and 2011. Due to variances between actual and expected loss payments, loss development is subject to significant variability.

 

     The Company does not recognize claim recoveries until an actual payment has been received by the Company. During 2012, the Company realized claim recoveries of approximately $1,324,000. During 2011, the Company realized claim recoveries of approximately $1,488,000.

The provision for claims as a percentage of net premiums written was 5.9% and 4.1% in 2012 and 2011, respectively.

     A large claim is defined as a claim with incurred losses exceeding $250,000. Due to the small volume of large claims, the long-tail nature of title insurance claims and the inherent uncertainty in loss emergence patterns, large claim activity can vary significantly between policy years. The estimated development of large claims by policy year is therefore subject to significant changes as experience develops.

A summary of the Company's loss reserves, broken down into its components of known title claims and IBNR claims follows:

    2012 %     2011 %  
Known title claims $ 5,166,370 13.2 % $ 6,233,501 16.4 %
IBNR   33,911,630 86.8 %   31,762,499 83.6 %
Total loss reserves $ 39,078,000 100.0 % $ 37,996,000 100.0 %

 

In management's opinion, the reserves are adequate to cover claim losses which might result from pending and future claims.


Reserves For Claims (Tables)
v0.0.0.0
Reserves For Claims (Tables)
12 Months Ended
Dec. 31, 2012
Reserves For Claims [Abstract]  
Summary Of Transactions In Reserves For Claims
    2012     2011  
Balance, beginning of year $ 37,996,000   $ 38,198,700  
Provisions related to:            
Current year   7,650,959     6,845,338  
Prior years   (1,578,844 )   (3,502,911 )
Total provision charged to operations   6,072,115     3,342,427  
Claims paid, net of recoveries, related to:            
Current year   (76,288 )   (305,079 )
Prior years   (4,913,827 )   (3,240,048 )
Total claims paid, net of recoveries   (4,990,115 )   (3,545,127 )
Balance, end of year $ 39,078,000   $ 37,996,000  
Summary Of The Company's Loss Reserves
    2012 %     2011 %  
Known title claims $ 5,166,370 13.2 % $ 6,233,501 16.4 %
IBNR   33,911,630 86.8 %   31,762,499 83.6 %
Total loss reserves $ 39,078,000 100.0 % $ 37,996,000 100.0 %

Reserves For Claims (Narrative) (Details)
v0.0.0.0
Reserves For Claims (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Realized claim recoveries $ 1,324,000 $ 1,488,000
Provision rate for title insurance claims 5.90% 4.10%
Minimum [Member]
   
Large claim threshold $ 250,000  

Reserves For Claims (Summary Of Transactions In Reserves For Claims) (Details)
v0.0.0.0
Reserves For Claims (Summary Of Transactions In Reserves For Claims) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Reserves For Claims [Abstract]    
Balance, beginning of period $ 37,996,000 $ 38,198,700
Provisions related to: Current year 7,650,959 6,845,338
Provisions related to: Prior years (1,578,844) (3,502,911)
Total provision charged to operations 6,072,115 3,342,427
Claims paid, net of recoveries, related to: Current year (76,288) (305,079)
Claims paid, net of recoveries, related to: Prior years (4,913,827) (3,240,048)
Total claims paid, net of recoveries (4,990,115) (3,545,127)
Ending balance $ 39,078,000 $ 37,996,000

Reserves For Claims (Summary Of The Company's Loss Reserves) (Details)
v0.0.0.0
Reserves For Claims (Summary Of The Company's Loss Reserves) (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Reserves For Claims [Abstract]      
Known title claims $ 5,166,370 $ 6,233,501  
IBNR 33,911,630 31,762,499  
Total loss reserves $ 39,078,000 $ 37,996,000 $ 38,198,700
Percentage of Known title claims 13.20% 16.40%  
% of IBNR 86.80% 83.60%  
% of Total loss reserves 100.00% 100.00%  

Earnings Per Common Share And Stock Options
v0.0.0.0
Earnings Per Common Share And Stock Options
12 Months Ended
Dec. 31, 2012
Earnings Per Common Share And Stock Options [Abstract]  
Earnings Per Common Share And Stock Options

7. Earnings Per Share and Stock Options

     Basic earnings per common share is computed by dividing net income attributable to the Company by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income attributable to the Company by the combination of dilutive potential common stock, comprised of shares issuable under the Company's share-based compensation plans and the weighted-average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, when share-based awards are exercised, (a) the exercise price of a share-based award; (b) the amount of compensation cost, if any, for future service that the Company has not yet recognized; and (c) the amount of estimated tax benefits that would be recorded in additional paid-in capital, if any, are assumed to be used to repurchase shares in the current period. The incremental dilutive potential common shares, calculated using the treasury stock method were 35,090 and 18,286 for 2012 and 2011, respectively. The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31:

For the Years Ended December 31,   2012   2011
Net income attributable to the Company $ 11,102,496 $ 6,933,936
Weighted average common shares outstanding - Basic   2,081,703   2,151,350
Incremental shares outstanding assuming        
the exercise of dilutive stock options and SARs (share-settled)   35,090   18,286
Weighted average common shares outstanding - Diluted   2,116,793   2,169,636
Basic earnings per common share $ 5.33 $ 3.22
Diluted earnings per common share $ 5.24 $ 3.20

 

     In 2011, 11,500 awards were excluded from the computation of diluted earnings per share because their exercise price was greater than the stock price and therefore considered anti-dilutive. There were no potential shares excluded from the computation of diluted earnings per share in 2012.

     The Company has adopted employee stock award plans (the "Plans") under which restricted stock, and options or stock appreciation rights ("SARs") to purchase shares (not to exceed 500,000 shares) of the Company's stock, may be granted to key employees or directors of the Company at a price not less than the market value on the date of grant. SARs and options (which have predominantly been incentive stock options) awarded under the Plans thus far are exercisable and vest immediately or within one year or at 10% to 20% per year beginning on the date of grant and generally expire in five to ten years. All SARs issued to date have been share-settled only. No SARs were exercised in 2012 or 2011.

 

A summary of share-based award transactions for all share-based award plans follows:

        Weighted Average    
        Average Remaining   Aggregate
  Number     Exercise Contractual   Intrinsic
  of Shares     Price Term (years)   Value
Outstanding as of January 1, 2011 110,800   $ 28.77 4.51 $ 353,955
SARs granted 3,000     41.50      
Options exercised (7,700 )   20.15      
Options/SARs cancelled/forfeited/expired (4,500 )   28.61      
Outstanding as of December 31, 2011 101,600   $ 29.81 3.91 $ 697,780
SARs granted 3,000     50.50      
Options exercised (6,380 )   25.17      
Options/SARs cancelled/forfeited/expired (70 )   31.00      
Outstanding as of December 31, 2012 98,150   $ 30.74 3.17 $ 2,871,710
 
Exercisable as of December 31, 2012 97,150   $ 30.59 3.15 $ 2,857,350
 
Unvested as of December 31, 2012 1,000   $ 45.64 5.20 $ 14,360

 

     The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's common stock at December 31, 2012. The intrinsic values of options exercised during 2012 and 2011 were approximately $153,000 and $118,000, respectively.

The following tables summarize information about fixed stock options outstanding at December 31, 2012:

          Options Outstanding at Year-End   Options Exercisable at Year-End
            Weighted Weighted     Weighted
            Average Average     Average
          Number Remaining Exercise Number   Exercise
  Range of Exercise Prices Outstanding Contractual Life Price Exercisable   Price
$ 20.00 - $ 27.96 2,400 0.76 $ 25.54 2,400 $ 25.54
  27.98 -   31.99 750 1.07   31.20 500   31.27
  33.32 -   36.79 2,000 2.38   36.79 2,000   36.79
$ 10.00 - $ 36.79 5,150 1.43 $ 30.73 4,900 $ 30.72

 

          SARs Outstanding at Year-End   SARs Exercisable at Year-End
            Weighted Weighted     Weighted
            Average Average     Average
          Number Remaining Exercise Number   Exercise
  Range of Exercise Prices Outstanding Contractual Life Price Exercisable   Price
$ 27.97 - $ 27.97 75,000 3.17 $ 27.97 75,000 $ 27.97
  32.00 -   32.00 2,500 3.39   32.00 2,500   32.00
  33.31 -   33.31 3,000 4.38   33.31 3,000   33.31
  36.80 -   58.59 12,500 3.58   46.51 11,750   46.25
$ 27.97 - $ 49.04 93,000 3.27 $ 30.74 92,250 $ 30.58

 

In 2012, 3,900 options and SARs vested with a fair value of $64,700.

     During both the second quarters of 2012 and 2011, the Company issued 3,000 share-settled SARs to the directors of the Company. SARs give the holder the right to receive stock equal to the appreciation in the value of shares of stock from the grant date for a specified period of time, and as a result, are accounted for as equity instruments. As such, the SARs were valued using the Black-Scholes option valuation model. The fair value of each award is estimated on the date of grant using the Black-Scholes option valuation model with the weighted-average assumptions noted in the following table. Expected volatilities are based on both the implied and historical volatility of the Company's stock. The Company uses historical data to project SAR exercises and pre-exercise forfeitures within the valuation model. The expected term of awards represents the period of time that SARs granted are expected to be outstanding. The interest rate for periods during the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of the grant. The weighted-average fair values per share-settled SAR issued during 2012 and 2011 were $18.84 and $15.55, respectively, and were estimated using the following weighted-average assumptions:

 

  2012   2011  
Expected Life in Years 5.0   5.0  
Volatility 44.6 % 43.6 %
Interest Rate 0.8 % 1.9 %
Yield Rate 0.6 % 0.8 %

 

     There was approximately $75,000 and $214,000 of compensation expense relating to shares vesting on or before December 31, 2012 and December 31, 2011, respectively, included in salaries, employee benefits and payroll taxes in the Consolidated Statements of Income. As of December 31, 2012, there was approximately $24,000 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company's stock awards plans. That cost is expected to be recognized over a weighted-average period of approximately 4 months.

The estimated weighted-average grant-date fair value of SARs granted for the years ended December 31 was as follows:

For the Years Ended December 31,   2012   2011
Exercise price equal to market price on date of grant:        
Weighted-average market price $ 50.50 $ 41.50
Weighted-average grant-date fair value $ 18.84 $ 15.55

 

There are no stock options or SARs granted where the exercise price is less than the market price on the date of grant.


Earnings Per Common Share And Stock Options (Tables)
v0.0.0.0
Earnings Per Common Share And Stock Options (Tables)
12 Months Ended
Dec. 31, 2012
Earnings Per Common Share And Stock Options [Abstract]  
Computation Of Basic And Diluted Earnings Per Share
For the Years Ended December 31,   2012   2011
Net income attributable to the Company $ 11,102,496 $ 6,933,936
Weighted average common shares outstanding - Basic   2,081,703   2,151,350
Incremental shares outstanding assuming        
the exercise of dilutive stock options and SARs (share-settled)   35,090   18,286
Weighted average common shares outstanding - Diluted   2,116,793   2,169,636
Basic earnings per common share $ 5.33 $ 3.22
Diluted earnings per common share $ 5.24 $ 3.20
Summary Of Share-Based Award Transactions
        Weighted Average    
        Average Remaining   Aggregate
  Number     Exercise Contractual   Intrinsic
  of Shares     Price Term (years)   Value
Outstanding as of January 1, 2011 110,800   $ 28.77 4.51 $ 353,955
SARs granted 3,000     41.50      
Options exercised (7,700 )   20.15      
Options/SARs cancelled/forfeited/expired (4,500 )   28.61      
Outstanding as of December 31, 2011 101,600   $ 29.81 3.91 $ 697,780
SARs granted 3,000     50.50      
Options exercised (6,380 )   25.17      
Options/SARs cancelled/forfeited/expired (70 )   31.00      
Outstanding as of December 31, 2012 98,150   $ 30.74 3.17 $ 2,871,710
 
Exercisable as of December 31, 2012 97,150   $ 30.59 3.15 $ 2,857,350
 
Unvested as of December 31, 2012 1,000   $ 45.64 5.20 $ 14,360
Summary Of Information Of Fixed Stock Options
          Options Outstanding at Year-End   Options Exercisable at Year-End
            Weighted Weighted     Weighted
            Average Average     Average
          Number Remaining Exercise Number   Exercise
  Range of Exercise Prices Outstanding Contractual Life Price Exercisable   Price
$ 20.00 - $ 27.96 2,400 0.76 $ 25.54 2,400 $ 25.54
  27.98 -   31.99 750 1.07   31.20 500   31.27
  33.32 -   36.79 2,000 2.38   36.79 2,000   36.79
$ 10.00 - $ 36.79 5,150 1.43 $ 30.73 4,900 $ 30.72

 

          SARs Outstanding at Year-End   SARs Exercisable at Year-End
            Weighted Weighted     Weighted
            Average Average     Average
          Number Remaining Exercise Number   Exercise
  Range of Exercise Prices Outstanding Contractual Life Price Exercisable   Price
$ 27.97 - $ 27.97 75,000 3.17 $ 27.97 75,000 $ 27.97
  32.00 -   32.00 2,500 3.39   32.00 2,500   32.00
  33.31 -   33.31 3,000 4.38   33.31 3,000   33.31
  36.80 -   58.59 12,500 3.58   46.51 11,750   46.25
$ 27.97 - $ 49.04 93,000 3.27 $ 30.74 92,250 $ 30.58
Weighted-Average Assumptions Of Fair Values For Stock Appreciation Rights
  2012   2011  
Expected Life in Years 5.0   5.0  
Volatility 44.6 % 43.6 %
Interest Rate 0.8 % 1.9 %
Yield Rate 0.6 % 0.8 %
Schedule Of Weighted Average Grant Date Fair Value Of Stock Awards Plans
For the Years Ended December 31,   2012   2011
Exercise price equal to market price on date of grant:        
Weighted-average market price $ 50.50 $ 41.50
Weighted-average grant-date fair value $ 18.84 $ 15.55

Earnings Per Common Share And Stock Options (Narrative) (Details)
v0.0.0.0
Earnings Per Common Share And Stock Options (Narrative) (Details) (USD $)
3 Months Ended 12 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2012
Dec. 31, 2011
Earnings Per Common Share And Share Awards [Line Items]        
Incremental dilutive potential common shares, calculated using treasury stock method     35,090 18,286
Anti-dilutive shares excluded from computation of diluted earnings per share     0 11,500
SARs and options vesting period     1 year  
Intrinsic values of options exercised     $ 153,000 $ 118,000
Options and SARs vested     3,900  
Fair value of options and SARs vested     64,700  
Shares issued in period 3,000 3,000    
Weighted-average fair values of stock appreciation rights issued     $ 18.84 $ 15.55
Compensation expense relating to SARs or options vesting     75,000 214,000
Total unrecognized compensation cost related to unvested share-based compensation arrangements granted under stock award plans     $ 24,000  
Weighted-average period of unrecognized compensation cost recognition     4 months  
Minimum [Member]
       
Earnings Per Common Share And Share Awards [Line Items]        
Annual rate at which stock appreciation rights and options are exercisable and vest     10.00%  
SARs and options expiration period     5 years  
Maximum [Member]
       
Earnings Per Common Share And Share Awards [Line Items]        
Maximum shares of Company stock to be granted to key employees or directors     500,000  
Annual rate at which stock appreciation rights and options are exercisable and vest     20.00%  
SARs and options expiration period     10 years  

Earnings Per Common Share And Stock Options (Computation Of Basic And Diluted Earnings Per Share) (Details)
v0.0.0.0
Earnings Per Common Share And Stock Options (Computation Of Basic And Diluted Earnings Per Share) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Earnings Per Common Share And Stock Options [Abstract]    
Net income attributable to the Company $ 11,102,496 $ 6,933,936
Weighted average common shares outstanding - Basic 2,081,703 2,151,350
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share settled) 35,090 18,286
Weighted average common shares outstanding - Diluted 2,116,793 2,169,636
Basic earnings per common share $ 5.33 $ 3.22
Diluted earnings per common share $ 5.24 $ 3.20

Earnings Per Common Share And Stock Options (Summary Of Share-Based Award Transactions) (Details)
v0.0.0.0
Earnings Per Common Share And Stock Options (Summary Of Share-Based Award Transactions) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Earnings Per Common Share And Stock Options [Abstract]      
Number Of Shares, Outstanding Beginning Balance 101,600 110,800  
Number Of Shares, SARs granted 3,000 3,000  
Number Of Shares, Options exercised (6,380) (7,700)  
Number Of Shares, Options/SARs cancelled/forfeited/expired (70) (4,500)  
Number Of Shares, Outstanding Ending Balance 98,150 101,600 110,800
Number Of Shares, Exercisable as of December 31, 2012 97,150    
Number Of Shares, Unvested as of December 31, 2012 1,000    
Weighted Average Exercise Price, Outstanding Beginning Balance $ 29.81 $ 28.77  
Weighted Average Exercise Price, SARs granted $ 50.50 $ 41.50  
Weighted Average Exercise Price, Options exercised $ 25.17 $ 20.15  
Weighted Average Exercise Price, Options/SARs cancelled/forfeited/expired $ 31.00 $ 28.61  
Weighted Average Exercise Price, Outstanding Ending Balance $ 30.74 $ 29.81 $ 28.77
Weighted Average Exercise Price, Exercisable as of December 31, 2012 $ 30.59    
Weighted Average Exercise Price, Unvested as of December 31, 2012 $ 45.64    
Average Remaining Contractual Term, Outstanding Beginning Balance 3 years 2 months 1 day 3 years 10 months 28 days 4 years 6 months 4 days
Average Remaining Contractual Term, Outstanding Ending Balance 3 years 2 months 1 day 3 years 10 months 28 days 4 years 6 months 4 days
Average Remaining Contractual Term, Exercisable as of December 31, 2012 3 years 1 month 24 days    
Average Remaining Contractual Term, Unvested as of December 31, 2012 5 years 2 months 12 days    
Aggregate Intrinsic Value, Outstanding Beginning Balance $ 697,780 $ 353,955  
Aggregate Intrinsic Value, Outstanding Ending Balance 2,871,710 697,780 353,955
Aggregate Intrinsic Value, Exercisable as of December 31, 2012 2,857,350    
Aggregate Intrinsic Value, Unvested as of December 31, 2012 $ 14,360    

Earnings Per Common Share And Share Awards (Summary Of Information Of Fixed Stock Options) (Details)
v0.0.0.0
Earnings Per Common Share And Share Awards (Summary Of Information Of Fixed Stock Options) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
$20.00 - $27.96 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options exercise price, lower limit $ 20.00
Options exercise price, upper limit $ 27.96
Options Outstanding - Number Outstanding 2,400
Options Outstanding - Weighted Average Remaining Contractual Life 9 months 4 days
Options Outstanding - Weighted Average Exercise Price $ 25.54
Options Exercisable - Number Exercisable 2,400
Options Exercisable - Weighted Average Exercise Price $ 25.54
$27.98 - $31.99 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options exercise price, lower limit $ 27.98
Options exercise price, upper limit $ 31.99
Options Outstanding - Number Outstanding 750
Options Outstanding - Weighted Average Remaining Contractual Life 1 year 26 days
Options Outstanding - Weighted Average Exercise Price $ 31.20
Options Exercisable - Number Exercisable 500
Options Exercisable - Weighted Average Exercise Price $ 31.27
$33.32 - $36.79 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options exercise price, lower limit $ 33.32
Options exercise price, upper limit $ 36.79
Options Outstanding - Number Outstanding 2,000
Options Outstanding - Weighted Average Remaining Contractual Life 2 years 4 months 17 days
Options Outstanding - Weighted Average Exercise Price $ 36.79
Options Exercisable - Number Exercisable 2,000
Options Exercisable - Weighted Average Exercise Price $ 36.79
$10.00 - $36.79 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
Options exercise price, lower limit $ 10.00
Options exercise price, upper limit $ 36.79
Options Outstanding - Number Outstanding 5,150
Options Outstanding - Weighted Average Remaining Contractual Life 1 year 5 months 5 days
Options Outstanding - Weighted Average Exercise Price $ 30.73
Options Exercisable - Number Exercisable 4,900
Options Exercisable - Weighted Average Exercise Price $ 30.72
$27.97 - $27.97 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
SAR exercise price, lower limit $ 27.97
SAR exercise price, upper limit $ 27.97
SARs Outstanding - Number Outstanding 75,000
SARs Outstanding - Weighted Average Remaining Contractual Life 3 years 2 months 1 day
SARs Outstanding - Weighted Average Exercise Price $ 27.97
SARs Exercisable - Number Exercisable 75,000
SARs Exercisable - Weighted Average Exercise Price $ 27.97
$32.00 - $32.00 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
SAR exercise price, lower limit $ 32.00
SAR exercise price, upper limit $ 32.00
SARs Outstanding - Number Outstanding 2,500
SARs Outstanding - Weighted Average Remaining Contractual Life 3 years 4 months 21 days
SARs Outstanding - Weighted Average Exercise Price $ 32.00
SARs Exercisable - Number Exercisable 2,500
SARs Exercisable - Weighted Average Exercise Price $ 32.00
$33.31 - $33.31 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
SAR exercise price, lower limit $ 33.31
SAR exercise price, upper limit $ 33.31
SARs Outstanding - Number Outstanding 3,000
SARs Outstanding - Weighted Average Remaining Contractual Life 4 years 4 months 17 days
SARs Outstanding - Weighted Average Exercise Price $ 33.31
SARs Exercisable - Number Exercisable 3,000
SARs Exercisable - Weighted Average Exercise Price $ 33.31
$36.80 - $58.59 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
SAR exercise price, lower limit $ 36.80
SAR exercise price, upper limit $ 58.59
SARs Outstanding - Number Outstanding 12,500
SARs Outstanding - Weighted Average Remaining Contractual Life 3 years 6 months 29 days
SARs Outstanding - Weighted Average Exercise Price $ 46.51
SARs Exercisable - Number Exercisable 11,750
SARs Exercisable - Weighted Average Exercise Price $ 46.25
$27.97 - $49.04 [Member]
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]  
SAR exercise price, lower limit $ 27.97
SAR exercise price, upper limit $ 49.04
SARs Outstanding - Number Outstanding 93,000
SARs Outstanding - Weighted Average Remaining Contractual Life 3 years 3 months 7 days
SARs Outstanding - Weighted Average Exercise Price $ 30.74
SARs Exercisable - Number Exercisable 92,250
SARs Exercisable - Weighted Average Exercise Price $ 30.58

Earnings Per Common Share And Stock Options (Weighted-Average Assumptions Of Fair Values For Stock Appreciation Rights) (Details)
v0.0.0.0
Earnings Per Common Share And Stock Options (Weighted-Average Assumptions Of Fair Values For Stock Appreciation Rights) (Details)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Earnings Per Common Share And Stock Options [Abstract]    
Expected Life in Years 5 years 5 years
Volatility 44.60% 43.60%
Interest Rate 0.80% 1.90%
Yield Rate 0.60% 0.80%

Earnings Per Common Share And Share Awards (Schedule Of Weighted Average Grant Date Fair Value Of Stock Awards Plans) (Details)
v0.0.0.0
Earnings Per Common Share And Share Awards (Schedule Of Weighted Average Grant Date Fair Value Of Stock Awards Plans) (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Earnings Per Common Share And Stock Options [Abstract]    
Weighted-average market price $ 50.50 $ 41.50
Weighted-average grant-date fair value $ 18.84 $ 15.55

Income Taxes
v0.0.0.0
Income Taxes
12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Income Taxes

8. Income Taxes

 

The components of income tax expense for the years ended December 31 are summarized as follows:

 

For the Years Ended December 31,

2012

2011

Current:

 

 

 Federal

$
5,018,000 
$
2,515,000 

 State

163,000 
29,000 

Total current

5,181,000 
2,544,000 

Deferred:

 

 

  Federal

(305,525)
28,131 

  State

13,525 
(7,131)

Total deferred

(292,000)
21,000 

Total

$
4,889,000 
$
2,565,000 

For state income tax purposes, ITIC and NITIC generally pay only a gross premium tax found in premium and retaliatory taxes in the Consolidated Statements of Income.

At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows:

 

For the Years Ended December 31,

2012

2011

Deferred income tax assets:

 

 

 Accrued benefits and retirement services

$
2,889,350 
$
2,491,168 

 Postretirement benefit obligation

52,791 
28,026 

 Other-than-temporary impairment of assets

344,701 
434,929 

 Reinsurance and commissions payable

19,087 
38,969 

 Allowance for doubtful accounts

641,920 
414,120 

 Net operating loss carryforward

12,000 
30,000 

 Capital loss carryforward

5,194 

 Excess of book over tax depreciation

143,184 
113,648 

 Other

410,052 
491,479 

    Total

4,513,085 
4,047,533 

Deferred income tax liabilities:

 

 

 Recorded reserves for claims, net of statutory premium reserves

399,217 
290,318 

 Net unrealized gain on investments

4,687,264 
3,956,708 

 Discount accretion on tax-exempt obligations

2,038 

 Other

317,722 
279,870 

    Total

5,406,241 
4,526,896 

Net deferred income tax liabilities

$
(893,156)
$
(479,363)

At December 31, 2012 and 2011, no valuation allowance was recorded. Based upon the Company's historical results of operations, the existing financial condition of the Company and management's assessment of all other available information, management believes that it is more likely than not that the benefit of these deferred income tax assets will be realized.

A reconciliation of income tax as computed for the years ended December 31 at the U.S. federal statutory income tax rate (34%) to income tax expense follows:

 

For the Years Ended December 31,

2012

2011

Anticipated income tax expense

$
5,467,168 
$
3,229,638 

Increase (decrease) related to:

 

 

 State income taxes, net of federal income tax benefit

107,580 
19,140 

 Tax-exempt interest income (net of amortization)

(757,005)
(700,300)

 Other, net

71,257 
16,522 

Provision for income taxes

$
4,889,000 
$
2,565,000 

In accounting for uncertainty in income taxes, the Company is required to recognize in its financial statements the impact of a tax position if that position is more likely than not of being sustained on an audit, based on the technical merits of the position.  In this regard, an uncertain tax position represents the Company's expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes.  There were no unrecognized tax benefits or liabilities as of December 31, 2012.

The amount of unrecognized tax benefit or liability may increase or decrease in the future for various reasons, including adding amounts for current tax year positions, expiration of open income tax returns due to the expiration of the applicable statute of limitations, changes in management's judgment about the level of uncertainty, status of examinations, litigation and legislative activity and the additions or eliminations of uncertain tax positions.

The Company's policy is to report interest and penalties related to income taxes in the Other line item in the Consolidated Statements of Income.

The Company, or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction and various states.  With few exceptions, the Company is no longer subject to U.S. federal or state and local examinations by taxing authorities for years before 2008.


Incomes Taxes (Tables)
v0.0.0.0
Incomes Taxes (Tables)
12 Months Ended
Dec. 31, 2012
Income Taxes [Abstract]  
Schedule Of Components Of Income Tax Expense

For the Years Ended December 31,

2012

2011

Current:

 

 

 Federal

$
5,018,000 
$
2,515,000 

 State

163,000 
29,000 

Total current

5,181,000 
2,544,000 

Deferred:

 

 

  Federal

(305,525)
28,131 

  State

13,525 
(7,131)

Total deferred

(292,000)
21,000 

Total

$
4,889,000 
$
2,565,000 
Schedule Of Deferred Tax Assets And Liabilities

For the Years Ended December 31,

2012

2011

Deferred income tax assets:

 

 

 Accrued benefits and retirement services

$
2,889,350 
$
2,491,168 

 Postretirement benefit obligation

52,791 
28,026 

 Other-than-temporary impairment of assets

344,701 
434,929 

 Reinsurance and commissions payable

19,087 
38,969 

 Allowance for doubtful accounts

641,920 
414,120 

 Net operating loss carryforward

12,000 
30,000 

 Capital loss carryforward

5,194 

 Excess of book over tax depreciation

143,184 
113,648 

 Other

410,052 
491,479 

    Total

4,513,085 
4,047,533 

Deferred income tax liabilities:

 

 

 Recorded reserves for claims, net of statutory premium reserves

399,217 
290,318 

 Net unrealized gain on investments

4,687,264 
3,956,708 

 Discount accretion on tax-exempt obligations

2,038 

 Other

317,722 
279,870 

    Total

5,406,241 
4,526,896 

Net deferred income tax liabilities

$
(893,156)
$
(479,363)
Schedule Of Reconciliation Of Income Tax

For the Years Ended December 31,

2012

2011

Anticipated income tax expense

$
5,467,168 
$
3,229,638 

Increase (decrease) related to:

 

 

 State income taxes, net of federal income tax benefit

107,580 
19,140 

 Tax-exempt interest income (net of amortization)

(757,005)
(700,300)

 Other, net

71,257 
16,522 

Provision for income taxes

$
4,889,000 
$
2,565,000 

Income Taxes (Schedule Of Components Of Income Taxes) (Details)
v0.0.0.0
Income Taxes (Schedule Of Components Of Income Taxes) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Income Taxes [Abstract]    
Current federal income tax expense $ 5,018,000 $ 2,515,000
Current state income tax expense 163,000 29,000
Total current income tax expense 5,181,000 2,544,000
Deferred federal income tax expense (305,525) 28,131
Deferred state income tax expense 13,525 (7,131)
Total deferred income tax expense (292,000) 21,000
Total income tax expense $ 4,889,000 $ 2,565,000

Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details)
v0.0.0.0
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Income Taxes [Abstract]    
Accrued benefits and retirement services $ 2,889,350 $ 2,491,168
Postretirement benefit obligation 52,791 28,026
Other-than-temporary impairment of assets 344,701 434,929
Reinsurance and commissions payable 19,087 38,969
Allowance for doubtful accounts 641,920 414,120
Net operating loss carryforward 12,000 30,000
Capital loss carryforward 0 5,194
Excess of book over tax depreciation 143,184 113,648
Other 410,052 491,479
Total deferred income tax assets 4,513,085 4,047,533
Recorded reserves for claims, net of statutory premium reserves 399,217 290,318
Net unrealized gain on investments 4,687,264 3,956,708
Discount accretion on tax-exempt obligations 2,038 0
Other 317,722 279,870
Total deferred income tax liabilities 5,406,241 4,526,896
Net deferred income tax liabilities $ (893,156) $ (479,363)

Income Taxes (Reconciliation Of Income Tax) (Details)
v0.0.0.0
Income Taxes (Reconciliation Of Income Tax) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Income Taxes [Abstract]    
Anticipated income tax expense $ 5,467,168 $ 3,229,638
State income taxes, net of federal income tax benefit 107,580 19,140
Tax-exempt interest income (net of amortization) (757,005) (700,300)
Other, net 71,257 16,522
Total income tax expense $ 4,889,000 $ 2,565,000
U.S. federal statutory income tax rate 34.00%  

Leases
v0.0.0.0
Leases
12 Months Ended
Dec. 31, 2012
Leases [Abstract]  
Leases

9. Leases

 

The Company leases certain office facilities and equipment under operating leases. Rental expense also includes occasional rental of automobiles. Rent expense totaled approximately $692,000 and $623,000 in 2012 and 2011, respectively. The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2012, are summarized as follows:

 

Year Ended:

 

2013

$
547,493 

2014

396,276 

2015

228,875 

2016

161,473 

2017

39,964 

Thereafter

Total

$
1,374,081 

Leases (Tables)
v0.0.0.0
Leases (Tables)
12 Months Ended
Dec. 31, 2012
Leases [Abstract]  
Schedule Of Future Minimum Rental Payments For Operating Leases

Year Ended:

 

2013

$
547,493 

2014

396,276 

2015

228,875 

2016

161,473 

2017

39,964 

Thereafter

Total

$
1,374,081 

Leases (Narrative) (Details)
v0.0.0.0
Leases (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Leases [Abstract]    
Rent expense $ 692,000 $ 623,000

Leases (Schedule Of Future Minimum Rental Payments For Operating Leases) (Details)
v0.0.0.0
Leases (Schedule Of Future Minimum Rental Payments For Operating Leases) (Details) (USD $)
Dec. 31, 2012
Leases [Abstract]  
2013 $ 547,493
2014 396,276
2015 228,875
2016 161,473
2017 39,964
Thereafter 0
Total $ 1,374,081

Retirement Agreements And Other Postretirement Benefit Plan
v0.0.0.0
Retirement Agreements And Other Postretirement Benefit Plan
12 Months Ended
Dec. 31, 2012
Retirement Agreements And Other Postretirement Benefit Plan [Abstract]  
Retirement Agreements And Other Postretirement Benefit Plan

10. Retirement Agreements and Other Postretirement Benefit Plan

     The Company has a 401(k) savings plan. In order to participate, individuals must be employed for one full year and work at least 1,000 hours annually. The Company makes a 3% Safe Harbor contribution and also has the option annually to make a discretionary profit share contribution. Individuals may elect to make contributions up to the maximum deductible amount as determined by the Internal Revenue Code. Expenses related to the 401(k) plan were approximately $518,000 and $479,000 for 2012 and 2011, respectively.

     In November 2003, ITIC, a wholly owned subsidiary of the Company, entered into employment agreements with the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of ITIC. These individuals also serve as the Chairman, President and Executive Vice President, respectively, of the Company. The agreements provide compensation and life, health, dental and vision benefits upon the occurrence of specific events, including death, disability, retirement, termination without cause or upon a change in control. The employment agreements also prohibit each of these executives from competing with ITIC and its parent, subsidiaries and affiliates in the State of North Carolina while employed by ITIC and for a period of two years following termination of their employment.

     In addition, during the second quarter of 2004, ITIC entered into nonqualified deferred compensation plan agreements with these executives. The amount accrued for all agreements at December 31, 2012 and 2011 was approximately $6,303,000 and $5,740,000, respectively, which includes postretirement compensation and health benefits, and was calculated based on the terms of the contract. Both the 2012 and 2011 accruals are included in the accounts payable and accrued liabilities line item of the Consolidated Balance Sheets. These executive contracts are accounted for on an individual contract basis. On December 24, 2008, the executive contracts were amended effective January 1, 2009 to bring them into compliance with Section 409A of the Internal Revenue Code, and were amended and restated to provide for an annual cash payment to the officers equal to the amounts the Company would have contributed to their accounts under its 401(k) plan if such contributions were not limited by the federal tax laws, less the amount of any contributions that the Company actually makes to their accounts under the Company's 401(k) plan.

     On November 17, 2003, ITIC entered into employment agreements with key executives that provide for the continuation of certain employee benefits upon retirement. The executive employee benefits include health insurance, dental insurance, vision insurance and life insurance. The benefits are unfunded. Estimated future benefit payouts expected to be paid for each of the next five years are $3,993 in 2013, $4,462 in 2014, $4,930 in 2015, $5,395 in 2016, $9,489 in 2017 and $100,231 in the next five years thereafter.

Cost of the Company's postretirement benefits included the following components:

    2012   2011  
Net periodic benefit cost          
Service cost – benefits earned during the year $ 12,617 $ 19,503  
Interest cost on projected benefit obligation   27,867   24,607  
Amortization of unrecognized prior service cost   9,396   13,038  
Amortization of unrecognized loss (gain)   680   (318 )
Net periodic benefit cost at end of year $ 50,560 $ 56,830  

 

     The Company is required to recognize the funded status (i.e., the difference between the fair value of the assets and the accumulated postretirement benefit obligations of its postretirement benefits) in its Consolidated Balance Sheet, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The net amount in accumulated other comprehensive income is $(155,234), $(102,453) net of tax, for December 31, 2012, and $(82,392), $(54,376) net of tax, for December 31, 2011, and represents the net unrecognized actuarial losses and unrecognized prior service costs. The effects of the funded status on the Company's Consolidated Balance Sheets at December 31, 2012 and 2011 are presented in the following table:

    2012     2011  
Funded status            
Actuarial present value of future benefits:            
Fully eligible active employee $ (401,553 ) $ (354,308 )
Non-eligible active employees   (310,743 )   (234,586 )
Plan assets   0     0  
Funded status of accumulated postretirement benefit obligation, recognized in            
other liabilities $ (712,296 ) $ (588,894 )

 

Development of the accumulated postretirement benefit obligation for the years ended December 31, 2012 and 2011 includes the following:

    2012     2011  
Accrued postretirement benefit obligation at beginning of year $ (588,894 ) $ (429,695 )
Service cost – benefits earned during the year   (12,617 )   (19,503 )
Interest cost on projected benefit obligation   (27,867 )   (24,607 )
Actuarial loss   (82,918 )   (115,089 )
Accrued postretirement benefit obligation at end of year $ (712,296 ) $ (588,894 )

 

The changes in amounts related to accumulated other comprehensive income, pre-tax, are as follows:

    2012     2011  
Balance at beginning of year $ 82,392   $ (19,977 )
Components of accumulated other comprehensive income:            
Unrecognized prior service cost   (9,396 )   (13,038 )
Amortization of (loss) gain, net   (680 )   318  
Actuarial loss   82,918     115,089  
Balance at end of year $ 155,234   $ 82,392  

 

     The amounts currently in accumulated other comprehensive income, pre-tax, that will be recognized as components of net periodic benefit costs in 2013 are:

    Projected  
    2013  
Amortization of unrecognized prior service cost $ (1,518 )
Amortization of unrecognized loss   6,293  
Net periodic benefit cost at end of year $ 4,775  

 

 

     Assumed health care cost trend rates do have an effect on the amounts reported for the postretirement benefit obligations. The following illustrates the effects on the net periodic postretirement benefit cost ("NPPBC") and the accumulated postretirement benefit obligation ("APBO") of a one percentage point increase and one percentage point decrease in the assumed health care cost trend rate as of December 31, 2012:

    One-   One-  
    Percentage   Percentage  
    Point   Point  
    Increase   Decrease  
Net periodic postretirement benefit cost          
Effect on the service cost component $ 4,369 $ (3,265 )
Effect on interest cost   6,591   (5,010 )
Total effect on the net periodic postretirement benefit cost $ 10,960 $ (8,275 )
Accumulated postretirement benefit obligation (including active          
employees who are not fully eligible)          
Effect on those currently receiving benefits (retirees and spouses) $ 0 $ 0  
Effect on active fully eligible   78,530   (60,962 )
Effect on actives not yet eligible   86,245   (64,280 )
Total effect on the accumulated postretirement benefit obligation $ 164,775 $ (125,242 )

 


Retirement Agreements And Other Postretirement Benefit Plan (Tables)
v0.0.0.0
Retirement Agreements And Other Postretirement Benefit Plan (Tables)
12 Months Ended
Dec. 31, 2012
Retirement Agreements And Other Postretirement Benefit Plan [Abstract]  
Components Of Net Periodic Benefits Cost
    2012   2011  
Net periodic benefit cost          
Service cost – benefits earned during the year $ 12,617 $ 19,503  
Interest cost on projected benefit obligation   27,867   24,607  
Amortization of unrecognized prior service cost   9,396   13,038  
Amortization of unrecognized loss (gain)   680   (318 )
Net periodic benefit cost at end of year $ 50,560 $ 56,830  
Effects Of The Funded Status On The Balance Sheet
    2012     2011  
Funded status            
Actuarial present value of future benefits:            
Fully eligible active employee $ (401,553 ) $ (354,308 )
Non-eligible active employees   (310,743 )   (234,586 )
Plan assets   0     0  
Funded status of accumulated postretirement benefit obligation, recognized in            
other liabilities $ (712,296 ) $ (588,894 )
Development Of The Accumulated Postretirement Benefit Obligation
    2012     2011  
Accrued postretirement benefit obligation at beginning of year $ (588,894 ) $ (429,695 )
Service cost – benefits earned during the year   (12,617 )   (19,503 )
Interest cost on projected benefit obligation   (27,867 )   (24,607 )
Actuarial loss   (82,918 )   (115,089 )
Accrued postretirement benefit obligation at end of year $ (712,296 ) $ (588,894 )
Changes In Amounts Related To Accumulated Other Comprehensive Income, Pre-Tax
    2012     2011  
Balance at beginning of year $ 82,392   $ (19,977 )
Components of accumulated other comprehensive income:            
Unrecognized prior service cost   (9,396 )   (13,038 )
Amortization of (loss) gain, net   (680 )   318  
Actuarial loss   82,918     115,089  
Balance at end of year $ 155,234   $ 82,392  
Amounts In Accumulated Other Comprehensive Income, Pre-Tax, To Be Recognized As Components Of Net Periodic Benefit Costs
    Projected  
    2013  
Amortization of unrecognized prior service cost $ (1,518 )
Amortization of unrecognized loss   6,293  
Net periodic benefit cost at end of year $ 4,775  
Effects On Net Periodic Postretirement Benefit Cost And Accumulated Postretirement Benefit Obligation
    One-   One-  
    Percentage   Percentage  
    Point   Point  
    Increase   Decrease  
Net periodic postretirement benefit cost          
Effect on the service cost component $ 4,369 $ (3,265 )
Effect on interest cost   6,591   (5,010 )
Total effect on the net periodic postretirement benefit cost $ 10,960 $ (8,275 )
Accumulated postretirement benefit obligation (including active          
employees who are not fully eligible)          
Effect on those currently receiving benefits (retirees and spouses) $ 0 $ 0  
Effect on active fully eligible   78,530   (60,962 )
Effect on actives not yet eligible   86,245   (64,280 )
Total effect on the accumulated postretirement benefit obligation $ 164,775 $ (125,242 )

Retirement Agreements And Other Postretirement Benefit Plan (Narrative) (Details)
v0.0.0.0
Retirement Agreements And Other Postretirement Benefit Plan (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
H
Dec. 31, 2011
Dec. 31, 2010
Minimum number of years employed in order to participate in the 401(k) plan 1 year    
Minimum number of hours worked annually in order to participate in the 401(k) plan 1,000    
Definded contribution plan contribution percent 3.00%    
Expenses related to the 401(k) plan $ 518,000 $ 479,000  
Amount accrued for all deferred compensation plan agreements 6,303,000 5,740,000  
Expected future benefit payouts expected to be paid for 2013 3,993    
Expected future benefit payouts expected to be paid for 2014 4,462    
Expected future benefit payouts expected to be paid for 2015 4,930    
Expected future benefit payouts expected to be paid for 2016 5,395    
Expected future benefit payouts expected to be paid for 2017 9,489    
Expected future benefit payouts expected to be paid for the next five years thereafter 100,231    
Amount recognized in accumulated other comprehensive income, before tax (155,234) (82,392) 19,977
Amount recognized in accumulated other comprehensive income, net of tax $ (102,453) $ (54,376)  
Minimum [Member]
     
Employee agreement 2 years    

Retirement Agreements And Other Postretirement Benefit Plan (Components Of Net Periodic Benefits Cost) (Details)
v0.0.0.0
Retirement Agreements And Other Postretirement Benefit Plan (Components Of Net Periodic Benefits Cost) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Retirement Agreements And Other Postretirement Benefit Plan [Abstract]    
Service cost - benefits earned during the year $ 12,617 $ 19,503
Interest cost on the projected benefit obligation 27,867 24,607
Amortization of unrecognized prior service cost 9,396 13,038
Amortization of unrecognized loss (gain) 680 (318)
Net periodic benefit cost at end of year $ 50,560 $ 56,830

Retirement Agreements And Other Postretirment Benefit Plan (Effects Of The Funded Status On The Balance Sheet) (Details)
v0.0.0.0
Retirement Agreements And Other Postretirment Benefit Plan (Effects Of The Funded Status On The Balance Sheet) (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Retirement Agreements And Other Postretirement Benefit Plan [Abstract]    
Fully eligible active employee $ (401,553) $ (354,308)
Non-eligible active employees (310,743) (234,586)
Plan assets 0 0
Funded status of accumulated postretirement benefit obligation, recognized in other liabilities $ (712,296) $ (588,894)

Retirement Agreements And Other Postretirment Benefit Plan (Development Of The Accumulated Postretirement Benefit Obligation) (Details)
v0.0.0.0
Retirement Agreements And Other Postretirment Benefit Plan (Development Of The Accumulated Postretirement Benefit Obligation) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Retirement Agreements And Other Postretirement Benefit Plan [Abstract]    
Accrued postretirement benefit obligation at beginning of year $ (588,894) $ (429,695)
Service cost - benefits earned during the year (12,617) (19,503)
Interest cost on projected benefit obligation (27,867) (24,607)
Actuarial loss (82,918) (115,089)
Accrued postretirement benefit obligation at end of year $ (712,296) $ (588,894)

Retirement Agreements And Other Postretirment Benefit Plan (Changes In Amounts Related To Accumulated Other Comprehensive Income, Pre-Tax) (Details)
v0.0.0.0
Retirement Agreements And Other Postretirment Benefit Plan (Changes In Amounts Related To Accumulated Other Comprehensive Income, Pre-Tax) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Retirement Agreements And Other Postretirement Benefit Plan [Abstract]    
Balance at beginning of year $ 82,392 $ (19,977)
Unrecognized prior service cost (9,396) (13,038)
Amortization of gain (loss), net (680) 318
Actuarial loss 82,918 115,089
Balance at end of year $ 155,234 $ 82,392

Retirement Agreements And Other Postretirment Benefit Plan (Amounts In Accumulated Other Comprehensive Income, Pre-Tax, To Be Recognized As Components Of Net Periodic Benefit Costs) (Details)
v0.0.0.0
Retirement Agreements And Other Postretirment Benefit Plan (Amounts In Accumulated Other Comprehensive Income, Pre-Tax, To Be Recognized As Components Of Net Periodic Benefit Costs) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Retirement Agreements And Other Postretirement Benefit Plan [Abstract]  
Amortization of unrecognized prior service cost $ (1,518)
Amortization of unrecognized loss 6,293
Net periodic benefit cost at end of year $ 4,775

Retirement Agreements And Other Postretirment Benefit Plan (Effects On Net Periodic Postretirement Benefit Cost And Accumulated Postretirement Benefit Obligation) (Details)
v0.0.0.0
Retirement Agreements And Other Postretirment Benefit Plan (Effects On Net Periodic Postretirement Benefit Cost And Accumulated Postretirement Benefit Obligation) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Retirement Agreements And Other Postretirement Benefit Plan [Abstract]  
One-Percentage Point Increase: Effect on the service cost component $ 4,369
One-Percentage Point Increase: Effect on interest cost 6,591
One-Percentage Point Increase: Total effect on the net periodic postretirement benefit cost 10,960
One-Percentage Point Decrease: Effect on the service cost component (3,265)
One-Percentage Point Decrease: Effect on interest cost (5,010)
One-Percentage Point Decrease: Total effect on the net periodic postretirement benefit cost (8,275)
One-Percentage Point Increase: Effect on those currently receiving benefits (retirees and spouses) 0
One-Percentage Point Increase: Effect on active fully eligible 78,530
One-Percentage Point Increase: Effect on actives not yet eligible 86,245
One-Percentage Point Increase: Total effect on the accumulated postretirement benefit obligation 164,775
One-Percentage Point Decrease: Effect on those currently receiving benefits (retirees and spouses) 0
One-Percentage Point Decrease: Effect on active fully eligible (60,962)
One-Percentage Point Decrease: Effect on actives not yet eligible (64,280)
One-Percentage Point Decrease: Total effect on the accumulated postretirement benefit obligation $ (125,242)

Commitments And Contingencies
v0.0.0.0
Commitments And Contingencies
12 Months Ended
Dec. 31, 2012
Commitments And Contingencies [Abstract]  
Commitments And Contingencies

11. Commitments and Contingencies

 

Legal Proceedings.    A class action lawsuit is pending in the United States District Court for the Southern District of West Virginia against several title insurance companies, including Investors Title Insurance Company, entitled Backel v. Fidelity National Title Insurance et al. (6:2008-CV-00181).  The plaintiff in this case contends a lack of meaningful oversight by agencies with which title insurance rates are filed and approved.  There are further allegations that the title insurance companies have conspired to fix title insurance rates.  The plaintiffs seek monetary damages, including treble damages, as well as injunctive relief.  Similar suits have been filed in other jurisdictions, several of which have already been dismissed. In West Virginia, the case has been placed on the inactive list pending the resolution of the bankruptcy of LandAmerica Financial Group, Inc.  The Company believes that this case is without merit, and intends to vigorously defend against the allegations. At this stage in the litigation, the Company does not have the ability to make a reasonable range of estimates in regards to potential loss amounts, if any.

 

The Company and its subsidiaries are also involved in other legal proceedings that are incidental to their business. In the Company's opinion, based on the present status of these proceedings, any potential liability of the Company or its subsidiaries with respect to these legal proceedings, will not, in the aggregate, be material to the Company's consolidated financial condition or operations.

 

Regulation.  The Company's title insurance and trust subsidiaries are regulated by various federal, state and local governmental agencies and are subject to various audits and inquiries.  It is the opinion of management that, based on its present expectations, these audits and inquiries will not have a material impact on the Company's consolidated financial condition or operations.

 

Escrow and Trust Deposits.  As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks.  Cash held by the Company for these purposes was approximately $11,689,000 and $15,562,000 as of December 31, 2012 and 2011, respectively.  These amounts are not considered assets of the Company and are excluded from the accompanying Consolidated Balance Sheets.  However, the Company remains contingently liable for the disposition of these deposits.

 

Like-Kind Exchange Proceeds.  In administering tax-deferred property exchanges, the Company's subsidiary, Investors Title Exchange Corporation ("ITEC"), serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property.  Another Company subsidiary, Investors Title Accommodation Corporation ("ITAC"), serves as exchange accommodation titleholder and, through limited liability companies ("LLCs") that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $55,580,000 and $35,359,000 as of December 31, 2012 and 2011, respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of the transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon rate. Exchange services revenues include earnings on these deposits; therefore, investment income is shown as exchange services revenue, rather than investment income. These like-kind exchange funds are primarily invested in money market and other short-term investments.


Commitments And Contingencies (Details)
v0.0.0.0
Commitments And Contingencies (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Commitments And Contingencies [Abstract]    
Contingently liable amount for Escrow and trust deposits $ 11,689,000 $ 15,562,000
Like-kind exchange deposits and reverse exchange property $ 55,580,000 $ 35,359,000

Statutory Accounting
v0.0.0.0
Statutory Accounting
12 Months Ended
Dec. 31, 2012
Statutory Accounting [Abstract]  
Statutory Accounting

12. Statutory Accounting

     The Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America which differ in some respects from statutory accounting practices prescribed or permitted in the preparation of financial statements for submission to insurance regulatory authorities.

     Combined capital and surplus on a statutory basis was $102,047,179 and $93,089,327 as of December 31, 2012 and 2011, respectively. Net income on a statutory basis was $11,035,792 and $6,416,684 for the twelve months ended December 31, 2012 and 2011, respectively.

 


Statutory Accounting (Details)
v0.0.0.0
Statutory Accounting (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Statutory Accounting [Abstract]    
Combined capital and surplus on statutory basis $ 102,047,179 $ 93,089,327
Net income statutory basis $ 11,035,792 $ 6,416,684

Segment Information
v0.0.0.0
Segment Information
12 Months Ended
Dec. 31, 2012
Segment Information [Abstract]  
Segment Information

13. Segment Information

 

Consistent with the requirements of reporting segment information, the Company has one reportable segment, title insurance services. The remaining immaterial segments have been combined into a group called "All Other."

The title insurance segment primarily issues title insurance policies through approved attorneys from underwriting offices and through independent issuing agents. Title insurance policies insure titles to residential, institutional, commercial and industrial properties.

Provided below is selected financial information about the Company's operations by segment for the two years ended December 31, 2012 and 2011:

 

 

Title

All

Intersegment

 

2012

Insurance

Other

Elimination

Total

Operating revenues

$
106,496,802 
$
4,931,574 
$
(1,395,934)
$
110,032,442 

Investment income

3,492,998 
571,999 
(84,586)
3,980,411 

Net realized gain on investments

430,495 
635,744 
1,066,239 

    Total revenues

$
110,420,295 
$
6,139,317 
$
(1,480,520)
$
115,079,092 

Operating expenses

94,909,649 
5,433,207 
(1,343,671)
98,999,185 

   Income before taxes

$
15,510,646 
$
706,110 
$
(136,849)
$
16,079,907 

Assets

$
136,042,848 
$
35,875,428 
$
$
171,918,276 

 

Title

All

Intersegment

 

2011

Insurance

Other

Elimination

Total

Operating revenues

$
83,420,562 
$
4,455,631 
$
(814,632)
$
87,061,561 

Investment income

3,174,148 
502,557 
(81,669)
3,595,036 

Net realized gain (loss) on investments

97,640 
(69,081)
28,559 

    Total revenues

$
86,692,350 
$
4,889,107 
$
(896,301)
$
90,685,156 

Operating expenses

77,294,353 
4,706,499 
(814,632)
81,186,220 

   Income before taxes

$
9,397,997 
$
182,608 
$
(81,669)
$
9,498,936 

Assets

$
123,712,762 
$
34,245,701 

$                     0

$
157,958,463 

 


Segment Information (Tables)
v0.0.0.0
Segment Information (Tables)
12 Months Ended
Dec. 31, 2012
Segment Information [Abstract]  
Selected Financial Information About The Company's Operations By Segment

 

Title

All

Intersegment

 

2012

Insurance

Other

Elimination

Total

Operating revenues

$
106,496,802 
$
4,931,574 
$
(1,395,934)
$
110,032,442 

Investment income

3,492,998 
571,999 
(84,586)
3,980,411 

Net realized gain on investments

430,495 
635,744 
1,066,239 

    Total revenues

$
110,420,295 
$
6,139,317 
$
(1,480,520)
$
115,079,092 

Operating expenses

94,909,649 
5,433,207 
(1,343,671)
98,999,185 

   Income before taxes

$
15,510,646 
$
706,110 
$
(136,849)
$
16,079,907 

Assets

$
136,042,848 
$
35,875,428 
$
$
171,918,276 

 

Title

All

Intersegment

 

2011

Insurance

Other

Elimination

Total

Operating revenues

$
83,420,562 
$
4,455,631 
$
(814,632)
$
87,061,561 

Investment income

3,174,148 
502,557 
(81,669)
3,595,036 

Net realized gain (loss) on investments

97,640 
(69,081)
28,559 

    Total revenues

$
86,692,350 
$
4,889,107 
$
(896,301)
$
90,685,156 

Operating expenses

77,294,353 
4,706,499 
(814,632)
81,186,220 

   Income before taxes

$
9,397,997 
$
182,608 
$
(81,669)
$
9,498,936 

Assets

$
123,712,762 
$
34,245,701 

$                     0

$
157,958,463 

Segment Information (Narrative) (Details)
v0.0.0.0
Segment Information (Narrative) (Details)
12 Months Ended
Dec. 31, 2012
segment
Segment Information [Abstract]  
Number of reportable segments 1

Segment Information (Selected Financial Information About The Company's Operations By Segment) (Details)
v0.0.0.0
Segment Information (Selected Financial Information About The Company's Operations By Segment) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]    
Operating revenues $ 110,032,442 $ 87,061,561
Investment income 3,980,411 3,595,036
Net realized gain (loss) on investments 1,066,239 28,559
Total revenues 115,079,092 90,685,156
Operating expenses 98,999,185 81,186,220
Income before taxes 16,079,907 9,498,936
Assets 171,918,276 157,958,463
Title Insurance [Member]
   
Segment Reporting Information [Line Items]    
Operating revenues 106,496,802 83,420,562
Investment income 3,492,998 3,174,148
Net realized gain (loss) on investments 430,495 97,640
Total revenues 110,420,295 86,692,350
Operating expenses 94,909,649 77,294,353
Income before taxes 15,510,646 9,397,997
Assets 136,042,848 123,712,762
All Other [Member]
   
Segment Reporting Information [Line Items]    
Operating revenues 4,931,574 4,455,631
Investment income 571,999 502,557
Net realized gain (loss) on investments 635,744 (69,081)
Total revenues 6,139,317 4,889,107
Operating expenses 5,433,207 4,706,499
Income before taxes 706,110 182,608
Assets 35,875,428 34,245,701
Intersegment Eliminations [Member]
   
Segment Reporting Information [Line Items]    
Operating revenues (1,395,934) (814,632)
Investment income (84,586) (81,669)
Net realized gain (loss) on investments 0 0
Total revenues (1,480,520) (896,301)
Operating expenses (1,343,671) (814,632)
Income before taxes (136,849) (81,669)
Assets $ 0 $ 0

Stockholders' Equity
v0.0.0.0
Stockholders' Equity
12 Months Ended
Dec. 31, 2012
Stockholders' Equity [Abstract]  
Stockholders' Equity

14. Stockholders' Equity

 

On November 12, 2002, the Company's Board of Directors amended the Company's Articles of Incorporation, creating a series of Class A Junior Participating Preferred Stock (the "Class A Preferred Stock"). The Class A Preferred Stock is senior to common stock in dividends or distributions of assets upon liquidations, dissolutions or winding up of the Company. Dividends on the Class A Preferred Stock are cumulative and accrue from the quarterly dividend payment date. Each share of Class A Preferred Stock entitles the holder thereof to 100 votes on all matters submitted to a vote of shareholders of the Company. These shares were reserved for issuance under the Shareholder Rights Plan (the "Plan"), which was adopted on November 21, 2002, by the Company's Board of Directors. Under the terms of the Plan, the Company's common stock acquired by a person or a group buying 15% or more of the Company's common stock would be diluted, except in transactions approved by the Board of Directors.

 

In connection with the Plan, the Company's Board of Directors declared a dividend distribution of one right (a "Right") for each outstanding share of the Company's common stock paid on December 16, 2002, to shareholders of record at the close of business on December 2, 2002. Each Right entitles the registered holder to purchase from the Company a unit (a "Unit") consisting of one one-hundredth of a share of Class A Preferred Stock. Under the Plan, the Rights detach and become exercisable upon the earlier of (a) ten (10) days following public announcement that a person or group of affiliated or associated persons has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding shares of the Company's common stock, or (b) ten (10) business days following the commencement of, or first public announcement of the intent of a person or group to commence, a tender offer or exchange offer that would result in a person or group beneficially owning 15% or more of such outstanding shares of the Company's common stock. The exercise price, the kind and the number of shares covered by each right are subject to adjustment upon the occurrence of certain events described in the Plan.

 

If any person or group of affiliated or associated persons acquires beneficial ownership of 15% or more of the outstanding common stock, each holder of a Right (other than the acquiring person or group) will have the right to buy, at the exercise price, common stock of the Company having a market value of twice the exercise price.  If the Company is acquired in a merger or consolidation in which the Company is not the surviving corporation, or the Company engages in a merger or consolidation in which the Company is the surviving corporation and the Company's common stock is changed or exchanged, or more than 50% of the Company's assets or earning power is sold or transferred, the Rights entitle a holder (other than the acquiring person or group) to buy, at the exercise price, stock of the acquiring company having a market value equal to twice the exercise price.  At any time after a person or group of affiliated or associated persons has acquired beneficial ownership of 15% or more of the outstanding common stock and prior to the acquisition by such person or group of 50% or more of the outstanding common stock, the Company's Board of Directors may exchange the Rights (other than the Rights owned by such person or group), in whole or in part, at an exchange ratio of one share of the Company's common stock, or one one-hundredth of a share of Preferred Stock, per Right.

 

The Rights are redeemable upon action by the Board of Directors at a price of $0.01 per right at any time before they become exercisable. Until the Rights become exercisable, they are evidenced only by the common stock certificates and are transferred with and only with such certificates.

 

On October 31, 2012, the Plan was amended to, among other things, extend the expiration date of the plan from November 11, 2012 to October 31, 2022 and increase the exercise price of the stock purchase rights from $80 per unit to $220 per unit.  In connection with the amendments to the shareholders' rights plan, the Board of Directors of the Company also amended the Company's Articles of Incorporation to increase the number of shares designated under the rights plan as Series A Participating Preferred Stock from 100,000 shares to 200,000 shares.  There were 1,000,000 shares of Preferred Stock authorized as of December 31, 2012 and 2011, with 200,000 and 100,000 of these shares, respectively, being designated Class A Junior Participating Preferred Stock.


Stockholders' Equity (Details)
v0.0.0.0
Stockholders' Equity (Details) (USD $)
12 Months Ended
Dec. 31, 2012
item
Nov. 11, 2012
Oct. 31, 2012
Dec. 31, 2011
Number of votes 100      
Percentage of one preferred share in one Right 1.00%      
Threshold of days following requirements for exercise Rights 10 days      
Redemption price per right   0.01    
Purchase price of preferred stock per Unit     $ 220  
Preferred stock, shares authorized 1,000,000     1,000,000
Plan Amendment [Member]
       
Purchase price of preferred stock per Unit     $ 80  
Class A Junior Participating Preferred Stock [Member]
       
Preferred stock, shares authorized 200,000   200,000 100,000
Class A Junior Participating Preferred Stock [Member] | Plan Amendment [Member]
       
Preferred stock, shares authorized     100,000  
Minimum [Member]
       
Threshold of common stock percentage for common stock diluted 15.00%      
Ownership percentage of common stock 15.00%      
Threshold of percentage of assets or earning power sold or transferred for merger 50.00%      
Threshold of beneficial ownership of outstanding common stock for the Rights exchanging 15.00%      
Threshold of prior acquisition common stock percentage for the Right exchanging 50.00%      

Concentration Of Credit Risk
v0.0.0.0
Concentration Of Credit Risk
12 Months Ended
Dec. 31, 2012
Concentration Of Credit Risk [Abstract]  
Concentration Of Credit Risk

15. Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents.  The Company invests its cash and cash equivalents into high credit quality security instruments.  On November 9, 2010, the Federal Deposit Insurance Corporation, ("FDIC") issued a Final Rule implementing section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that provides for unlimited insurance coverage of noninterest-bearing transaction accounts.  Beginning December 31, 2010, through December 31, 2012, all noninterest bearing transaction accounts are fully insured, regardless of the balance of the account, at all FDIC insured institutions.  All other deposits which exceed $250,000, including noninterest bearing transaction accounts prior to December 31, 2010, at each institution are not insured by the FDIC.  Of the $20.8 million in cash and cash equivalents on the Consolidated Balance Sheets at December 31, 2012, $3.2 million was not insured by the FDIC.  Of the $18.0 million in cash and cash equivalents at December 31, 2011, $1.2 million was not insured by the FDIC.

As scheduled, the unlimited insurance coverage for noninterest-bearing transaction accounts provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act expired on December 31, 2012.  Deposits held in noninterest-bearing transaction accounts are now aggregated with any interest-bearing deposits the owner may hold in the same ownership category, and the combined total insured up to at least $250,000. Of the $20.8 million in cash and cash equivalents on the Consolidated Balance Sheets at December 31, 2012, $20.3 million was not insured by the FDIC after the expiration of unlimited coverage for noninterest-bearing transaction accounts.


Concentration Of Credit Risk (Details)
v0.0.0.0
Concentration Of Credit Risk (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Concentration Of Credit Risk [Abstract]      
Threshold of not insured deposits by FDIC $ 250,000    
Cash and cash equivalents 20,810,018 18,042,258 8,117,031
Cash and cash equivalents, amount uninsured by FDIC 3,200,000 1,200,000  
Cash and cash equivalents uninsured amount after expiration of unlimited coverage for noninterest-bearing transaction accounts $ 20,300,000    

Business Concentration
v0.0.0.0
Business Concentration
12 Months Ended
Dec. 31, 2012
Business Concentration [Abstract]  
Business Concentration

16. Business Concentration

 

The Company generates a significant amount of title insurance premiums in Texas and North Carolina. In 2012 and 2011, Texas accounted for 24.8% and 32.2% of total title premiums, respectively. In 2012 and 2011, North Carolina accounted for 30.5% and 26.6% of total title premiums, respectively.

In 2012 and 2011, the Company had one agent that accounted for 14.0% and 22.6% of net premiums written, respectively.


Business Concentration (Details)
v0.0.0.0
Business Concentration (Details)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Net Premiums Written [Member]
   
Concentration Risk [Line Items]    
Concentration percentage 14.00% 22.60%
Texas [Member] | Geographic Concentration Risk [Member]
   
Concentration Risk [Line Items]    
Concentration percentage 24.80% 32.20%
North Carolina [Member] | Geographic Concentration Risk [Member]
   
Concentration Risk [Line Items]    
Concentration percentage 30.50% 26.60%

Related Party Transactions
v0.0.0.0
Related Party Transactions
12 Months Ended
Dec. 31, 2012
Related Party Transactions [Abstract]  
Related Party Transactions
 

17. Related Party Transactions

 

The Company does business with, and has investments in, unconsolidated limited liability companies that are primarily title insurance agencies.  The Company utilizes the equity method to account for its investments in these limited liability companies.  The following table sets forth the approximate values by year found within each financial statement classification:

 

Financial Statement Classification,

Consolidated Balance Sheets

 

 

2012

 

 

2011

Other investments

 

$
4,892,000 

 

$
2,328,000 

Premium and fees receivable

 

$
1,011,000 

 

$
681,000 

 

 

 

 

 

Financial Statement Classification,

Consolidated Statements of Income

 

 

2012

 

 

2011

Net premiums written

 

$
15,558,000 

 

$
11,004,000 

Other income

 

$
2,238,000 

 

$
1,336,000 

Related Party Transactions (Tables)
v0.0.0.0
Related Party Transactions (Tables)
12 Months Ended
Dec. 31, 2012
Related Party Transactions [Abstract]  
Schedule Of Related Party Transactions

Financial Statement Classification,

Consolidated Balance Sheets

 

 

2012

 

 

2011

Other investments

 

$
4,892,000 

 

$
2,328,000 

Premium and fees receivable

 

$
1,011,000 

 

$
681,000 

 

 

 

 

 

Financial Statement Classification,

Consolidated Statements of Income

 

 

2012

 

 

2011

Net premiums written

 

$
15,558,000 

 

$
11,004,000 

Other income

 

$
2,238,000 

 

$
1,336,000 

Related Party Transactions (Schedule Of Related Party Transactions) (Details)
v0.0.0.0
Related Party Transactions (Schedule Of Related Party Transactions) (Details) (Title Insurance Agencies [Member], USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Title Insurance Agencies [Member]
   
Related Party Transaction [Line Items]    
Other investments $ 4,892,000 $ 2,328,000
Premium and fees receivable 1,011,000 681,000
Net premiums written 15,558,000 11,004,000
Other income $ 2,238,000 $ 1,336,000

Agency Acquisition
v0.0.0.0
Agency Acquisition
12 Months Ended
Dec. 31, 2012
Agency Acquisition [Abstract]  
Agency Acquisition

18. Agency Acquisition

 

In January 2012, a subsidiary of the Company, ITIC, entered into a membership interest purchase and sale agreement under which it agreed to acquire a majority ownership interest of United Title Agency Co., LLC ("United").  United, a Michigan limited liability company, is an insurance agency doing business in the State of Michigan.  On April 2, 2012, ITIC purchased a 70% ownership interest in United, with both ITIC and the seller having the option to require ITIC to purchase the remaining 30% interest not less than 27 months from the closing. 

The acquisition date fair value of the total consideration to be transferred is $1,041,250.  This fair value total is equal to $350,000 ITIC has already paid toward the purchase price, as well as $691,250 in estimated contingent payments.  The amount previously paid will be used to offset contingent payment amounts calculated for final consideration, and is eligible for refunding in part or in its entirety if greater than the final settlement amount.

The contingent payment arrangement requires that the purchase price for the 70% majority interest be paid over the next two years and determined by multiplying United's actual GAAP net income for the first full 24 calendar months subsequent to closing by an agreed upon factor.  In no event will the purchase price for the majority interest exceed $1,041,250.  The fair value of the contingent payment was derived using the Company's best estimate (Level 3 inputs) of net income of approximately $859,000 during the 24-month period, discounted at a 15% rate, and limited to the contractual maximum. The resulting $691,250 contingent payment is categorized in the Consolidated Balance Sheets as accounts payable and accrued liabilities.  As of December 31, 2012, management's calculation of the fair value of the contingent consideration was materially unchanged from its acquisition date amount.

In the event that ITIC purchases the remaining 30% interest, the purchase price of the redeemable noncontrolling interest will be calculated by multiplying United's GAAP net income for the full 24 calendar months immediately preceding the written notice of the option exercise by an agreed upon factor.  The agreement stipulates a minimum purchase price of $1,000,000 for the entire agency should this option be exercised.

As certain provisions of the membership interest purchase and sale agreement place the acquisition of the remaining 30% by ITIC out of ITIC's control, the noncontrolling interest in United is deemed redeemable.  The redeemable noncontrolling interest is presented outside of permanent equity, as redeemable equity in the Consolidated Balance Sheets.  On the acquisition date, the fair value of the redeemable noncontrolling interest was $446,250. The fair value of the redeemable noncontrolling interest was based on the noncontrolling interest's share of the value of net assets.

The following table provides a reconciliation of total redeemable equity for the periods ended December 31, 2012 and 2011:      

    

Changes in fair value during the period ended:

2012

2011

Beginning balance at January 1

$
$

Redeemable noncontrolling interest resulting from subsidiary purchase

446,250 

Net income attributable to redeemable noncontrolling interest

88,411 

Distributions to noncontrolling interest

(40,800)

Balance, net

$
493,861 
$

Fair valuation methods used for the identifiable tangible net assets acquired in that acquisition make use of discounted cash flows using current interest rates.  The fair value of identifiable net tangible assets at the acquisition date was $5,600.  Identifiable assets acquired include cash and fixed assets.  Liabilities assumed consisted of notes payable.

The transaction was accounted for using the acquisition method required by ASC 805, Business Combinations.  Accordingly, the Company recognized the required identifiable intangible assets of United.  There was no goodwill recorded as a result of the acquisition. The fair values of intangible assets, all Level 3 inputs, are principally based on values obtained from a third party valuation service.  At acquisition, intangible assets included $645,685 relating to a non-compete contract resulting from the acquisition and $836,215 from referral relationships.  The non-compete contract is being amortized over a 10-year period using the straight-line method, starting at a future date when the related employment agreement is terminated.  The referral relationships are being amortized over a 12-year period using the straight-line method.  At December 31, 2012, accumulated amortization of intangible assets is $52,263.    Net intangible assets of $1,429,637 are categorized as prepaid expenses and other assets in the Consolidated Balance Sheets as of December 31, 2012.  In accordance with ASC 350, Intangibles––Goodwill and Other, the Company completed interim impairment testing and determined that the intangible assets assigned to United were not impaired at December 31, 2012.

The amortization of the non-compete contract will start at a future date when the related employment agreement is terminated. Assuming that the amortization of the non-complete agreement begins on the first day subsequent to the employment period stated in the current employment agreement, estimated aggregate amortization expense for each of the five succeeding fiscal years are as follows:

 

Year Ended:

 

2013

$
69,685 

2014

134,253 

2015

134,253 

2016

134,253 

2017

134,253 

Thereafter

822,940 

Total

$
1,429,637 

In the Consolidated Statement of Income, revenues and expenses include the operations of United since April 2, 2012, which is the acquisition date.  United was formed as a result of the Company's acquisition, and had no net income prior to the acquisition date.

The Company has not provided historical or pro forma financial information related to the United acquisition because none of the purchase price paid, assets acquired or income of United were significant to the Company under Rules 8-04 or 8-05 of the SEC's Regulation S-X.


Agency Acquisition (Tables)
v0.0.0.0
Agency Acquisition (Tables)
12 Months Ended
Dec. 31, 2012
Agency Acquisition [Abstract]  
Reconciliation Of Total Redeemable Equity

Changes in fair value during the period ended:

2012

2011

Beginning balance at January 1

$
$

Redeemable noncontrolling interest resulting from subsidiary purchase

446,250 

Net income attributable to redeemable noncontrolling interest

88,411 

Distributions to noncontrolling interest

(40,800)

Balance, net

$
493,861 
$
Schedule Of Aggregate Amortization Expense For Intangible Assets

Year Ended:

 

2013

$
69,685 

2014

134,253 

2015

134,253 

2016

134,253 

2017

134,253 

Thereafter

822,940 

Total

$
1,429,637 

Agency Acquisition (Narrative) (Details)
v0.0.0.0
Agency Acquisition (Narrative) (Details) (USD $)
12 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2012
Apr. 02, 2012
Apr. 02, 2012
Minimum [Member]
Apr. 02, 2012
70% [Member]
Apr. 02, 2012
30% [Member]
Apr. 02, 2012
30% [Member]
Minimum [Member]
Apr. 02, 2012
Non-Compete Contract [Member]
Apr. 02, 2012
Referral Relationships [Member]
Business Acquisition [Line Items]                
Membership interest purchase agreement date Jan. 01, 2012              
Business acquisition effective date Apr. 02, 2012              
Ownership percentage acquired   70.00%            
Business acquisition, remaining ownership interest   30.00%            
Business acquisition, remaining purchase period     27 months          
Fair value of total consideration to be transferred   $ 1,041,250            
Fair value of consideration paid   350,000            
Estimated contingent payments 691,250 691,250   691,250        
Payment period of purchase price       2 years        
Business acquisition, purchase price payment calculation period       24 months 24 months      
Purchase price of acquisition       1,041,250   1,000,000    
Net income required to estimate fair value of purchase price       859,000        
Fair value input discount rate       15.00%        
Fair value of identifiable net assets   5,600            
Fair value of the noncontrolling interest amount   446,250            
Intangible assets acquired             645,685 836,215
Intangible assets amortized period             10 years 12 years
Net intangible assets 1,429,637              
Accumulated amortization of intangible assets $ 52,263              

Agency Acquisition (Reconciliation Of Total Redeemable Equity) (Details)
v0.0.0.0
Agency Acquisition (Reconciliation Of Total Redeemable Equity) (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Agency Acquisition [Abstract]    
Beginning balance at January 1 $ 0 $ 0
Redeemable noncontrolling interest resulting from subsidiary purchase 446,250 0
Net Income Attributable to Redeemable Noncontrolling Interests 88,411 0
Distributions to noncontrolling interests (40,800) 0
Balance, net $ 493,861 $ 0

Agency Acquisition (Schedule Of Aggregate Amortization Expense For Intangible Assets) (Details)
v0.0.0.0
Agency Acquisition (Schedule Of Aggregate Amortization Expense For Intangible Assets) (Details) (USD $)
Dec. 31, 2012
Agency Acquisition [Abstract]  
2013 $ 69,685
2014 134,253
2015 134,253
2016 134,253
2017 134,253
Thereafter 822,940
Total $ 1,429,637