v2.4.1.9
Document And Entity Information (USD $)
12 Months Ended
Dec. 31, 2014
Feb. 13, 2015
Jun. 30, 2014
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2014    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2014    
Entity Registrant Name INVESTORS TITLE CO    
Entity Central Index Key 0000720858    
Current Fiscal Year End Date --12-31    
Entity Filer Category Accelerated Filer    
Entity Common Stock, Shares Outstanding   2,013,345dei_EntityCommonStockSharesOutstanding  
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
Entity Public Float     $ 103,384,436dei_EntityPublicFloat
v2.4.1.9
Consolidated Balance Sheets (USD $)
Dec. 31, 2014
Dec. 31, 2013
Investments in securities:    
Fixed maturities, available-for-sale, at fair value (amortized cost: 2014: $104,421,050; 2013: $87,980,160) $ 109,048,290us-gaap_AvailableForSaleSecuritiesDebtSecurities $ 91,445,413us-gaap_AvailableForSaleSecuritiesDebtSecurities
Equity securities, available-for-sale, at fair value (cost: 2014: $24,128,753; 2013: $22,200,369) 39,254,981us-gaap_AvailableForSaleSecuritiesEquitySecurities 36,144,065us-gaap_AvailableForSaleSecuritiesEquitySecurities
Short-term investments 2,576,993us-gaap_OtherShortTermInvestments 7,926,373us-gaap_OtherShortTermInvestments
Other investments 8,530,929us-gaap_OtherInvestments 7,247,831us-gaap_OtherInvestments
Total investments 159,411,193us-gaap_Investments 142,763,682us-gaap_Investments
Cash and cash equivalents 15,826,515us-gaap_CashAndCashEquivalentsAtCarryingValue 23,626,761us-gaap_CashAndCashEquivalentsAtCarryingValue
Premium and fees receivable 8,544,183us-gaap_PremiumsAndOtherReceivablesNet 8,750,224us-gaap_PremiumsAndOtherReceivablesNet
Accrued interest and dividends 1,063,837us-gaap_AccruedInvestmentIncomeReceivable 1,006,698us-gaap_AccruedInvestmentIncomeReceivable
Prepaid expenses and other assets 7,732,677us-gaap_PrepaidExpenseAndOtherAssets 7,466,141us-gaap_PrepaidExpenseAndOtherAssets
Property, net 5,460,805us-gaap_PropertyPlantAndEquipmentNet 4,325,538us-gaap_PropertyPlantAndEquipmentNet
Current income taxes recoverable 0us-gaap_IncomeTaxReceivable 366,772us-gaap_IncomeTaxReceivable
Total Assets 198,039,210us-gaap_Assets 188,305,816us-gaap_Assets
Liabilities:    
Reserves for claims 36,677,000us-gaap_LiabilityForTitleClaimsAndClaimsAdjustmentExpense 35,360,000us-gaap_LiabilityForTitleClaimsAndClaimsAdjustmentExpense
Accounts payable and accrued liabilities 18,290,819us-gaap_AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent 20,324,190us-gaap_AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent
Current income taxes payable 92,192us-gaap_AccruedIncomeTaxes 0us-gaap_AccruedIncomeTaxes
Deferred income taxes, net 5,415,493us-gaap_DeferredTaxLiabilities 4,013,983us-gaap_DeferredTaxLiabilities
Total liabilities 60,475,504us-gaap_Liabilities 59,698,173us-gaap_Liabilities
Commitments and Contingencies 0us-gaap_CommitmentsAndContingencies 0us-gaap_CommitmentsAndContingencies
Redeemable Noncontrolling Interest 0us-gaap_TemporaryEquityRedemptionValue 545,489us-gaap_TemporaryEquityRedemptionValue
Stockholders' Equity:    
Preferred stock (1,000,000 authorized shares; no shares issued) 0us-gaap_PreferredStockValue 0us-gaap_PreferredStockValue
Common stock - no par value (10,000,000 authorized shares; 2,023,270 and 2,037,135 shares issued and outstanding 2014 and 2013, respectively, excluding 291,676 shares for 2014 and 2013 of common stock held by the Company’s subsidiary) 1us-gaap_CommonStockValue 1us-gaap_CommonStockValue
Retained earnings 124,707,196us-gaap_RetainedEarningsAccumulatedDeficit 116,714,749us-gaap_RetainedEarningsAccumulatedDeficit
Accumulated other comprehensive income 12,856,509us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax 11,347,404us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax
Total stockholders’ equity 137,563,706us-gaap_StockholdersEquity 128,062,154us-gaap_StockholdersEquity
Total Liabilities and Stockholders’ Equity $ 198,039,210us-gaap_LiabilitiesAndStockholdersEquity $ 188,305,816us-gaap_LiabilitiesAndStockholdersEquity
v2.4.1.9
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2014
Dec. 31, 2013
Statement of Financial Position [Abstract]    
Fixed maturities, available-for-sale, amortized cost $ 104,421,050us-gaap_AvailableForSaleSecuritiesAmortizedCost $ 87,980,160us-gaap_AvailableForSaleSecuritiesAmortizedCost
Equity securities, available-for-sale, cost $ 24,128,753us-gaap_AvailableForSaleEquitySecuritiesAmortizedCostBasis $ 22,200,369us-gaap_AvailableForSaleEquitySecuritiesAmortizedCostBasis
Preferred stock, shares authorized 1,000,000us-gaap_PreferredStockSharesAuthorized 1,000,000us-gaap_PreferredStockSharesAuthorized
Preferred stock, shares issued 0us-gaap_PreferredStockSharesIssued 0us-gaap_PreferredStockSharesIssued
Common stock, no par value      
Common stock, shares authorized 10,000,000us-gaap_CommonStockSharesAuthorized 10,000,000us-gaap_CommonStockSharesAuthorized
Common stock, shares issued 2,023,270us-gaap_CommonStockSharesIssued 2,037,135us-gaap_CommonStockSharesIssued
Common stock, shares outstanding 2,023,270us-gaap_CommonStockSharesOutstanding 2,037,135us-gaap_CommonStockSharesOutstanding
Common stock, held by Company's subsidiary 291,676itic_CommonStockHeldByCompanysSubsidiary 291,676itic_CommonStockHeldByCompanysSubsidiary
v2.4.1.9
Consolidated Statements Of Income (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Revenues:      
Net premiums written $ 109,963,556us-gaap_PremiumsWrittenNet $ 113,886,266us-gaap_PremiumsWrittenNet $ 102,331,102us-gaap_PremiumsWrittenNet
Investment income – interest and dividends 4,259,501us-gaap_InvestmentIncomeInterestAndDividend 3,894,608us-gaap_InvestmentIncomeInterestAndDividend 3,980,411us-gaap_InvestmentIncomeInterestAndDividend
Net realized gain on investments 268,294us-gaap_GainLossOnInvestments 195,800us-gaap_GainLossOnInvestments 1,066,239us-gaap_GainLossOnInvestments
Other 8,627,935us-gaap_OtherIncome 8,274,823us-gaap_OtherIncome 7,701,340us-gaap_OtherIncome
Total Revenues 123,119,286us-gaap_Revenues 126,251,497us-gaap_Revenues 115,079,092us-gaap_Revenues
Operating Expenses:      
Commissions to agents 65,632,353us-gaap_InsuranceCommissions 67,150,810us-gaap_InsuranceCommissions 59,427,070us-gaap_InsuranceCommissions
Provision (benefit) for claims 5,229,716us-gaap_PolicyholderBenefitsAndClaimsIncurredNet (571,596)us-gaap_PolicyholderBenefitsAndClaimsIncurredNet 6,072,115us-gaap_PolicyholderBenefitsAndClaimsIncurredNet
Salaries, employee benefits and payroll taxes 25,218,225us-gaap_LaborAndRelatedExpense 25,386,511us-gaap_LaborAndRelatedExpense 21,881,540us-gaap_LaborAndRelatedExpense
Office occupancy and operations 5,049,962itic_OfficeOccupancyAndOperations 4,430,220itic_OfficeOccupancyAndOperations 3,994,244itic_OfficeOccupancyAndOperations
Business development 2,333,491us-gaap_BusinessDevelopment 2,145,639us-gaap_BusinessDevelopment 1,856,848us-gaap_BusinessDevelopment
Filing fees, franchise and local taxes 817,909itic_FilingFeesFranchiseAndLocalTaxes 681,935itic_FilingFeesFranchiseAndLocalTaxes 846,168itic_FilingFeesFranchiseAndLocalTaxes
Premium and retaliatory taxes 1,851,767itic_PremiumAndRetaliatoryTaxes 2,558,227itic_PremiumAndRetaliatoryTaxes 1,885,760itic_PremiumAndRetaliatoryTaxes
Professional and contract labor fees 2,676,483us-gaap_ProfessionalFees 2,171,606us-gaap_ProfessionalFees 2,420,387us-gaap_ProfessionalFees
Other 820,882us-gaap_OtherCostAndExpenseOperating 755,407us-gaap_OtherCostAndExpenseOperating 615,053us-gaap_OtherCostAndExpenseOperating
Total Operating Expenses 109,630,788us-gaap_BenefitsLossesAndExpenses 104,708,759us-gaap_BenefitsLossesAndExpenses 98,999,185us-gaap_BenefitsLossesAndExpenses
Income before Income Taxes 13,488,498us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest 21,542,738us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest 16,079,907us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
Provision for Income Taxes 3,816,000us-gaap_IncomeTaxExpenseBenefit 6,746,000us-gaap_IncomeTaxExpenseBenefit 4,889,000us-gaap_IncomeTaxExpenseBenefit
Net Income 9,672,498us-gaap_ProfitLoss 14,796,738us-gaap_ProfitLoss 11,190,907us-gaap_ProfitLoss
Net Income Attributable to Redeemable Noncontrolling Interest (23,523)us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest (88,528)us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest (88,411)us-gaap_NetIncomeLossAttributableToRedeemableNoncontrollingInterest
Net Income Attributable to the Company $ 9,648,975us-gaap_NetIncomeLoss $ 14,708,210us-gaap_NetIncomeLoss $ 11,102,496us-gaap_NetIncomeLoss
Basic Earnings per Common Share $ 4.75us-gaap_EarningsPerShareBasic $ 7.15us-gaap_EarningsPerShareBasic $ 5.33us-gaap_EarningsPerShareBasic
Weighted Average Shares Outstanding – Basic 2,031,760us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 2,056,169us-gaap_WeightedAverageNumberOfSharesOutstandingBasic 2,081,703us-gaap_WeightedAverageNumberOfSharesOutstandingBasic
Diluted Earnings per Common Share $ 4.74us-gaap_EarningsPerShareDiluted $ 7.08us-gaap_EarningsPerShareDiluted $ 5.24us-gaap_EarningsPerShareDiluted
Weighted Average Shares Outstanding – Diluted 2,037,534us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 2,076,628us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding 2,116,793us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding
Dividend declared per share $ 0.32us-gaap_CommonStockDividendsPerShareDeclared $ 0.32us-gaap_CommonStockDividendsPerShareDeclared $ 0.29us-gaap_CommonStockDividendsPerShareDeclared
v2.4.1.9
Consolidated Statements Of Comprehensive Income (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Comprehensive Income [Abstract]      
Net income $ 9,672,498us-gaap_ProfitLoss $ 14,796,738us-gaap_ProfitLoss $ 11,190,907us-gaap_ProfitLoss
Other comprehensive income, before tax:      
Amortization (accretion) related to prior year service cost 2,217us-gaap_OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditBeforeTax (1,518)us-gaap_OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditBeforeTax 9,396us-gaap_OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditBeforeTax
Amortization of unrecognized loss 0us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossBeforeTax 6,293us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossBeforeTax 680us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossBeforeTax
Accumulated postretirement (benefit) provision obligation adjustment (47,121)us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentBeforeTax 77,213us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentBeforeTax (82,918)us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansAdjustmentBeforeTax
Unrealized gains on investments arising during the period 2,848,256us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax 3,959,623us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax 3,190,737us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax
Reclassification adjustment for sale of securities included in net income (518,279)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax (229,869)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax (1,166,179)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
Reclassification adjustment for write-down of securities included in net income 14,542us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForWritedownOfSecuritiesBeforeTax 34,070us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForWritedownOfSecuritiesBeforeTax 99,940us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForWritedownOfSecuritiesBeforeTax
Other 0itic_ComprehensiveIncomeOther 0itic_ComprehensiveIncomeOther (36,600)itic_ComprehensiveIncomeOther
Other comprehensive income, before tax 2,299,615us-gaap_OtherComprehensiveIncomeLossBeforeTax 3,845,812us-gaap_OtherComprehensiveIncomeLossBeforeTax 2,015,056us-gaap_OtherComprehensiveIncomeLossBeforeTax
Income tax (benefit) expense related to postretirement health benefits (15,269)us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansTax 27,887us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansTax (24,764)us-gaap_OtherComprehensiveIncomeLossPensionAndOtherPostretirementBenefitPlansTax
Income tax expense related to unrealized gains on investments arising during the year 974,145us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax 1,354,439us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax 1,122,003us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax
Income tax benefit related to reclassification adjustment for sale of securities included in net income (173,403)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax (78,622)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax (426,017)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax
Income tax expense related to reclassification adjustment for write-down of securities included in net income 5,037us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForWritedownOfSecuritiesTax 13,134us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForWritedownOfSecuritiesTax 34,569us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForWritedownOfSecuritiesTax
Net income tax expense on other comprehensive income 790,510us-gaap_OtherComprehensiveIncomeLossTax 1,316,838us-gaap_OtherComprehensiveIncomeLossTax 705,791us-gaap_OtherComprehensiveIncomeLossTax
Other comprehensive income 1,509,105us-gaap_OtherComprehensiveIncomeLossNetOfTax 2,528,974us-gaap_OtherComprehensiveIncomeLossNetOfTax 1,309,265us-gaap_OtherComprehensiveIncomeLossNetOfTax
Comprehensive Income 11,181,603us-gaap_ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest 17,325,712us-gaap_ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest 12,500,172us-gaap_ComprehensiveIncomeNetOfTaxIncludingPortionAttributableToNoncontrollingInterest
Less: Comprehensive income attributable to redeemable noncontrolling interest (23,523)us-gaap_ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest (88,528)us-gaap_ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest (88,411)us-gaap_ComprehensiveIncomeNetOfTaxAttributableToNoncontrollingInterest
Comprehensive Income Attributable to the Company $ 11,158,080us-gaap_ComprehensiveIncomeNetOfTax $ 17,237,184us-gaap_ComprehensiveIncomeNetOfTax $ 12,411,761us-gaap_ComprehensiveIncomeNetOfTax
v2.4.1.9
Consolidated Statements Of Stockholders' Equity (USD $)
Total
Common Stock
Retained Earnings
Accumulated Other Comprehensive Income
Balance, beginning of year at Dec. 31, 2011 $ 106,512,184us-gaap_StockholdersEquity $ 1us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
$ 99,003,018us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
$ 7,509,165us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Balance, beginning of year, shares at Dec. 31, 2011   2,107,681us-gaap_SharesIssued
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income attributable to the Company 11,102,496us-gaap_NetIncomeLoss   11,102,496us-gaap_NetIncomeLoss
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Dividends (603,334)us-gaap_DividendsCommonStockCash   (603,334)us-gaap_DividendsCommonStockCash
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Shares of common stock repurchased and retired (in shares)   (70,702)us-gaap_TreasuryStockSharesAcquired
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Shares of common stock repurchased and retired (3,975,532)us-gaap_TreasuryStockValueAcquiredCostMethod   (3,975,532)us-gaap_TreasuryStockValueAcquiredCostMethod
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Stock options and stock appreciation rights exercised (in shares)   6,380us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Stock options and stock appreciation rights exercised 160,557us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationGross   160,557us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Share-based compensation expense 74,553us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue   74,553us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Amortization related to postretirement health benefits 6,648itic_AmortizationRelatedToPostretirementHealthBenefits     6,648itic_AmortizationRelatedToPostretirementHealthBenefits
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Accumulated postretirement benefit obligation adjustment (54,726)itic_AccumulatedPostretirementBenefitObligationAdjustment     (54,726)itic_AccumulatedPostretirementBenefitObligationAdjustment
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Net unrealized gain on investments 1,393,943us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax     1,393,943us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Temporary Equity, Interest Resulting From Subsidiary Purchase 0itic_TemporaryEquityInterestResultingFromSubsidiaryPurchase      
Other 22,101us-gaap_StockholdersEquityOther   58,701us-gaap_StockholdersEquityOther
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
(36,600)us-gaap_StockholdersEquityOther
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Balance, end of year at Dec. 31, 2012 114,638,890us-gaap_StockholdersEquity 1us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
105,820,459us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
8,818,430us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Balance, end of year, shares at Dec. 31, 2012   2,043,359us-gaap_SharesIssued
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income attributable to the Company 14,708,210us-gaap_NetIncomeLoss   14,708,210us-gaap_NetIncomeLoss
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Dividends (657,914)us-gaap_DividendsCommonStockCash   (657,914)us-gaap_DividendsCommonStockCash
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Shares of common stock repurchased and retired (in shares)   (56,223)us-gaap_TreasuryStockSharesAcquired
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Shares of common stock repurchased and retired (4,262,260)us-gaap_TreasuryStockValueAcquiredCostMethod   (4,262,260)us-gaap_TreasuryStockValueAcquiredCostMethod
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Stock options and stock appreciation rights exercised (in shares)   49,999us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Stock options and stock appreciation rights exercised 75,797us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationGross   75,797us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Share-based compensation expense 83,852us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue   83,852us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Amortization related to postretirement health benefits 3,140itic_AmortizationRelatedToPostretirementHealthBenefits     3,140itic_AmortizationRelatedToPostretirementHealthBenefits
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Accumulated postretirement benefit obligation adjustment 50,961itic_AccumulatedPostretirementBenefitObligationAdjustment     50,961itic_AccumulatedPostretirementBenefitObligationAdjustment
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Net unrealized gain on investments 2,474,873us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax     2,474,873us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Temporary Equity, Interest Resulting From Subsidiary Purchase 0itic_TemporaryEquityInterestResultingFromSubsidiaryPurchase      
Income tax benefit from share-based compensation 946,605us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation   946,605us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Balance, end of year at Dec. 31, 2013 128,062,154us-gaap_StockholdersEquity 1us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
116,714,749us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
11,347,404us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Balance, end of year, shares at Dec. 31, 2013   2,037,135us-gaap_SharesIssued
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net income attributable to the Company 9,648,975us-gaap_NetIncomeLoss   9,648,975us-gaap_NetIncomeLoss
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Dividends (650,433)us-gaap_DividendsCommonStockCash   (650,433)us-gaap_DividendsCommonStockCash
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Shares of common stock repurchased and retired (in shares)   (15,372)us-gaap_TreasuryStockSharesAcquired
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Shares of common stock repurchased and retired (1,055,765)us-gaap_TreasuryStockValueAcquiredCostMethod   (1,055,765)us-gaap_TreasuryStockValueAcquiredCostMethod
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Stock options and stock appreciation rights exercised (in shares)   1,507us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensationGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
Stock options and stock appreciation rights exercised 27,100us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationGross   27,100us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Share-based compensation expense 120,891us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue   120,891us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Amortization related to postretirement health benefits 1,465itic_AmortizationRelatedToPostretirementHealthBenefits     1,465itic_AmortizationRelatedToPostretirementHealthBenefits
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Accumulated postretirement benefit obligation adjustment (31,100)itic_AccumulatedPostretirementBenefitObligationAdjustment     (31,100)itic_AccumulatedPostretirementBenefitObligationAdjustment
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Net unrealized gain on investments 1,538,740us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax     1,538,740us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Temporary Equity, Interest Resulting From Subsidiary Purchase (114,320)itic_TemporaryEquityInterestResultingFromSubsidiaryPurchase   (114,320)itic_TemporaryEquityInterestResultingFromSubsidiaryPurchase
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Income tax benefit from share-based compensation 15,999us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation   15,999us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
 
Balance, end of year at Dec. 31, 2014 $ 137,563,706us-gaap_StockholdersEquity $ 1us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
$ 124,707,196us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
$ 12,856,509us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
Balance, end of year, shares at Dec. 31, 2014   2,023,270us-gaap_SharesIssued
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
   
v2.4.1.9
Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Stockholders' Equity [Abstract]      
Dividend declared per share $ 0.32us-gaap_CommonStockDividendsPerShareDeclared $ 0.32us-gaap_CommonStockDividendsPerShareDeclared $ 0.29us-gaap_CommonStockDividendsPerShareDeclared
v2.4.1.9
Consolidated Statements Of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Operating Activities      
Net income $ 9,672,498us-gaap_ProfitLoss $ 14,796,738us-gaap_ProfitLoss $ 11,190,907us-gaap_ProfitLoss
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation 833,104us-gaap_Depreciation 669,727us-gaap_Depreciation 486,922us-gaap_Depreciation
Amortization, net 630,782us-gaap_AdjustmentForAmortization 507,111us-gaap_AdjustmentForAmortization 468,006us-gaap_AdjustmentForAmortization
Amortization related to postretirement benefits obligation 2,217itic_CashFlowAmortizationRelatedToPostretirementHealthBenefits 4,765itic_CashFlowAmortizationRelatedToPostretirementHealthBenefits 10,076itic_CashFlowAmortizationRelatedToPostretirementHealthBenefits
Share-based compensation expense related to stock options 120,891us-gaap_ShareBasedCompensation 83,852us-gaap_ShareBasedCompensation 74,553us-gaap_ShareBasedCompensation
Net loss (gain) on disposals of property 24,608us-gaap_GainLossOnSaleOfPropertyPlantEquipment 7,831us-gaap_GainLossOnSaleOfPropertyPlantEquipment (28,538)us-gaap_GainLossOnSaleOfPropertyPlantEquipment
Net realized gain on investments (268,294)us-gaap_GainLossOnInvestments (195,800)us-gaap_GainLossOnInvestments (1,066,239)us-gaap_GainLossOnInvestments
Net earnings from other investments (1,450,980)us-gaap_GainLossOnSaleOfOtherInvestments (1,257,266)us-gaap_GainLossOnSaleOfOtherInvestments (1,674,594)us-gaap_GainLossOnSaleOfOtherInvestments
Provision (benefit) for claims 5,229,716us-gaap_PolicyholderBenefitsAndClaimsIncurredNet (571,596)us-gaap_PolicyholderBenefitsAndClaimsIncurredNet 6,072,115us-gaap_PolicyholderBenefitsAndClaimsIncurredNet
Provision (benefit) for deferred income taxes 611,000us-gaap_DeferredIncomeTaxExpenseBenefit 1,804,000us-gaap_DeferredIncomeTaxExpenseBenefit (292,000)us-gaap_DeferredIncomeTaxExpenseBenefit
Payments of claims, net of recoveries (3,912,716)itic_PaymentsOfClaimsNetRecoveries (3,146,404)itic_PaymentsOfClaimsNetRecoveries (4,990,115)itic_PaymentsOfClaimsNetRecoveries
Changes in assets and liabilities:      
Decrease (increase) in receivables 206,041us-gaap_IncreaseDecreaseInReceivables 2,287,489us-gaap_IncreaseDecreaseInReceivables (4,227,714)us-gaap_IncreaseDecreaseInReceivables
Increase in other assets (393,359)us-gaap_IncreaseDecreaseInOtherOperatingAssets (2,906,224)us-gaap_IncreaseDecreaseInOtherOperatingAssets (407,252)us-gaap_IncreaseDecreaseInOtherOperatingAssets
Decrease (increase) in income taxes recoverable 366,772us-gaap_IncreaseDecreaseInIncomeTaxesReceivable (366,772)us-gaap_IncreaseDecreaseInIncomeTaxesReceivable 0us-gaap_IncreaseDecreaseInIncomeTaxesReceivable
(Decrease) increase in accounts payable and accrued liabilities (2,080,492)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities 4,923,858us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities 2,372,995us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
Increase (decrease) in current income taxes payable 92,192us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable (1,336,824)us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable 696,291us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable
Net cash provided by (used in) operating activities 9,683,980us-gaap_NetCashProvidedByUsedInOperatingActivities 15,304,485us-gaap_NetCashProvidedByUsedInOperatingActivities 8,685,413us-gaap_NetCashProvidedByUsedInOperatingActivities
Investing Activities      
Purchases of available-for-sale securities (30,899,452)us-gaap_PaymentsToAcquireAvailableForSaleSecurities (23,466,037)us-gaap_PaymentsToAcquireAvailableForSaleSecurities (15,899,439)us-gaap_PaymentsToAcquireAvailableForSaleSecurities
Purchases of short-term securities (911,188)us-gaap_PaymentsToAcquireShortTermInvestments (2,638,908)us-gaap_PaymentsToAcquireShortTermInvestments (6,347,527)us-gaap_PaymentsToAcquireShortTermInvestments
Purchases of other investments (1,689,950)us-gaap_PaymentsToAcquireOtherInvestments (1,369,210)us-gaap_PaymentsToAcquireOtherInvestments (3,441,412)us-gaap_PaymentsToAcquireOtherInvestments
Capital contribution to subsidiaries 0us-gaap_PaymentsToAcquireBusinessesGross 0us-gaap_PaymentsToAcquireBusinessesGross (350,000)us-gaap_PaymentsToAcquireBusinessesGross
Proceeds from sales and maturities of available-for-sale securities 12,472,817us-gaap_ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities 9,892,634us-gaap_ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities 15,646,381us-gaap_ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities
Proceeds from sales and maturities of short-term securities 6,260,568us-gaap_ProceedsFromSaleMaturityAndCollectionOfShorttermInvestments 8,280,183us-gaap_ProceedsFromSaleMaturityAndCollectionOfShorttermInvestments 6,892,141us-gaap_ProceedsFromSaleMaturityAndCollectionOfShorttermInvestments
Proceeds from sales and distributions of other investments 1,584,337us-gaap_ProceedsFromSaleOfOtherInvestments 2,107,675us-gaap_ProceedsFromSaleOfOtherInvestments 2,301,647us-gaap_ProceedsFromSaleOfOtherInvestments
Proceeds from sales of other assets 38,052us-gaap_ProceedsFromSaleOfOtherProductiveAssets 40,366us-gaap_ProceedsFromSaleOfOtherProductiveAssets 220,455us-gaap_ProceedsFromSaleOfOtherProductiveAssets
Payments to Acquire Additional Interest in Subsidiaries (515,275)us-gaap_PaymentsToAcquireAdditionalInterestInSubsidiaries 0us-gaap_PaymentsToAcquireAdditionalInterestInSubsidiaries 0us-gaap_PaymentsToAcquireAdditionalInterestInSubsidiaries
Purchases of property, equipment and software (2,017,379)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment (1,424,108)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment (568,728)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment
Proceeds from disposals of property 24,400us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment 24,335us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment 65,837us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment
Net cash provided by investing activities (15,653,070)us-gaap_NetCashProvidedByUsedInInvestingActivities (8,553,070)us-gaap_NetCashProvidedByUsedInInvestingActivities (1,480,645)us-gaap_NetCashProvidedByUsedInInvestingActivities
Financing Activities      
Repurchases of common stock (1,055,765)us-gaap_PaymentsForRepurchaseOfCommonStock (4,262,260)us-gaap_PaymentsForRepurchaseOfCommonStock (3,975,532)us-gaap_PaymentsForRepurchaseOfCommonStock
Exercise of options 27,100us-gaap_ProceedsFromStockOptionsExercised 75,797us-gaap_ProceedsFromStockOptionsExercised 160,557us-gaap_ProceedsFromStockOptionsExercised
Distribution to noncontrolling interest (168,057)us-gaap_PaymentsOfDividendsMinorityInterest (36,900)us-gaap_PaymentsOfDividendsMinorityInterest (40,800)us-gaap_PaymentsOfDividendsMinorityInterest
Excess Tax Benefit from Share-based Compensation, Financing Activities 15,999us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities 946,605us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities 22,101us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities
Dividends paid (650,433)us-gaap_PaymentsOfDividends (657,914)us-gaap_PaymentsOfDividends (603,334)us-gaap_PaymentsOfDividends
Net cash used in financing activities (1,831,156)us-gaap_NetCashProvidedByUsedInFinancingActivities (3,934,672)us-gaap_NetCashProvidedByUsedInFinancingActivities (4,437,008)us-gaap_NetCashProvidedByUsedInFinancingActivities
Net (Decrease) Increase in Cash and Cash Equivalents (7,800,246)us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease 2,816,743us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease 2,767,760us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease
Cash and Cash Equivalents, Beginning of Period 23,626,761us-gaap_CashAndCashEquivalentsAtCarryingValue 20,810,018us-gaap_CashAndCashEquivalentsAtCarryingValue 18,042,258us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash and Cash Equivalents, End of Period 15,826,515us-gaap_CashAndCashEquivalentsAtCarryingValue 23,626,761us-gaap_CashAndCashEquivalentsAtCarryingValue 20,810,018us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash Paid During the Year for:      
Income tax payments, net 2,744,100us-gaap_IncomeTaxesPaidNet 5,724,000us-gaap_IncomeTaxesPaidNet 4,479,000us-gaap_IncomeTaxesPaidNet
Non cash net unrealized gain on investments, net of deferred tax provision of $(805,779), $(1,288,951) and $(730,555) for 2014, 2013 and 2012, respectively (1,538,740)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax (2,474,873)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax (1,393,943)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
Adjustments to postretirement benefits obligation, net of deferred tax provision of $16,021, $(26,252) and $28,192 for 2014, 2013 and 2012, respectively 31,100itic_AccumulatedPostretirementBenefitObligationAdjustment (50,961)itic_AccumulatedPostretirementBenefitObligationAdjustment 54,726itic_AccumulatedPostretirementBenefitObligationAdjustment
Non cash intangible assets acquired from purchase of subsidiary 0us-gaap_NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1 0us-gaap_NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1 (1,481,900)us-gaap_NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1
Non cash contingent liability from purchase of subsidiary $ 0us-gaap_NoncashOrPartNoncashAcquisitionValueOfLiabilitiesAssumed1 $ 0us-gaap_NoncashOrPartNoncashAcquisitionValueOfLiabilitiesAssumed1 $ 691,250us-gaap_NoncashOrPartNoncashAcquisitionValueOfLiabilitiesAssumed1
v2.4.1.9
Consolidated Statements Of Cash Flows (Parenthetical) (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Cash Flows [Abstract]      
Non cash net unrealized gain on investments, deferred tax provision $ (805,779)itic_DeferredTaxProvisionRelatedToUnrealizedGainLossOnInvestments $ (1,288,951)itic_DeferredTaxProvisionRelatedToUnrealizedGainLossOnInvestments $ (730,555)itic_DeferredTaxProvisionRelatedToUnrealizedGainLossOnInvestments
Adjustments to postretirement benefits obligation, net of deferred tax benefit (provision) $ 16,021itic_AdjustmentsToPostretirementBenefitsObligationNetOfDeferredTaxBenefitProvision $ (26,252)itic_AdjustmentsToPostretirementBenefitsObligationNetOfDeferredTaxBenefitProvision $ 28,192itic_AdjustmentsToPostretirementBenefitsObligationNetOfDeferredTaxBenefitProvision
v2.4.1.9
Basis Of Presentation and Significant Accounting Policies
12 Months Ended
Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis Of Presentation and Significant Accounting Policies
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 Georgia, Michigan, North Carolina, South Carolina, 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 Statements 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.
Immaterial Classification Correction During the years ended December 31, 2013 and 2012, the Company realized $946,605 and $22,101, respectively, in excess tax benefits associated with the exercise of stock options and stock appreciation rights (“SARs”). Such amounts were mistakenly classified as part of operating activities rather than financing activities. Accordingly, the Consolidated Statements of Cash Flows have been corrected. The correction resulted in a decrease to previously reported operating cash flows and an increase to financing cash flows in the amount of $946,605 and $22,101 for the years ended December 31, 2013 and 2012, respectively. There was no impact to the Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Stockholders’ Equity or to the Company’s cash position.
Significant Accounting Policies – The significant accounting policies of the Company are summarized below.
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 and adjusted for other-than-temporary declines in fair value, reported as accumulated other comprehensive income. As of December 31, 2014 and 2013, all investments in securities are classified as available-for-sale. 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 are comprised of 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 $2,423,408 and $1,834,229 at December 31, 2014 and 2013, 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. Properties acquired in settlement of claims are included in prepaid expenses and other assets in the Consolidated Balance Sheets.
Property and Equipment
Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives (3 to 25 years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized.
Reserves for Claims
Total reserves for all reported and unreported losses the Company incurred through December 31, 2014 is represented by the reserves for claims. The Company’s reserves for unpaid losses and loss adjustment expenses 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. Despite the variability of such estimates, management believes that the reserves are adequate to cover claim losses resulting from pending and future claims for policies issued through December 31, 2014.  The Company continually reviews and adjusts its reserve estimates as necessary to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant.
Claims and losses paid are charged to the reserves for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the acquiring company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property.
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 a valuation allowance 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.
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 premiums and fees receivable.  During the second quarter of 2014, the Company changed its presentation of gross premiums and fees receivable and related allowance for doubtful accounts and now reports them net of certain commitments not expected to result in issued title insurance policies.  The change had no impact to net premium and fees receivable, net premiums written, operating expenses or net income. 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.
Quarterly, the Company evaluates the collectability of receivables. Premiums not collected within 7 months are fully reserved. Write-offs of receivables have not been material to the Company.
Exchange Services Revenue
Fees are recognized at the signing of a binding agreement and investment earnings are recognized as they are earned. Exchange services revenues are included in other revenues in the Consolidated Statements of Income.
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 recoverable/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 for 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, 2014 consists of $12,934,497 of unrealized holding gains on available-for-sale securities and $77,988 of unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities.  Accumulated other comprehensive income as of December 31, 2013 consists of $11,395,757 of unrealized holding gains on available-for-sale securities and $48,353 of unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2012 consists of $8,920,884 of unrealized holding gains on available-for-sale securities and $102,454 of unrecognized prior service cost and unrecognized actuarial 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”).  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
The Company’s other intangible assets consist of a non-compete agreement and referral relationships resulting from an agency acquisition and are recorded at the acquisition date fair value.  The referral relationships are amortized on a straight-line basis over the useful life and amortization of the non-compete contract will start at a future date when the related employment agreement is terminated.  Intangible assets are reviewed for impairment at least quarterly.
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 May 2014, the FASB updated guidance to improve the comparability of revenue recognition practices for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards such as insurance contracts or lease standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this update becomes effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but, does not expect it to have a material impact.
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:
Claims – The 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.
The 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 have been incurred but not reported (“IBNR”).  During the third quarter of 2013 certain actuarial inputs were changed  to reflect recent trends. See Note 6 in the accompanying Consolidated Financial Statements for further information regarding this change in accounting estimate.
Premiums written – 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 current lag time used in the Company’s estimates typically ranges between 0 and 180 days after the policy effective date, with the majority of agencies reporting within 60 to 90 days. The lag time is reviewed periodically to monitor accruals.  To determine the estimated premiums, the Company uses historical experience, as well as other factors, to make certain assumptions about the average elapsed time between the policy effective date and the date the policies are reported.  From time to time, the Company adjusts the inputs to the calculation of these estimates as agents report transactions and information on more current trends becomes available.  The Company reflects any adjustments to the accruals in the results of operations in the period in which new information becomes available.
Impairments – Securities 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-temporary.  When, 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.
v2.4.1.9
Statutory Restrictions on Consolidated Stockholders' Equity and Investments
12 Months Ended
Dec. 31, 2014
Statutory Restrictions on Consolidated Stockholders' Equity and Investments [Abstract]  
Statutory Restrictions on Consolidated Stockholders' Equity and Investments
Statutory Accounting and Restrictions on Consolidated Stockholders’ Equity and Investments
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 $127,314,429 and $119,897,974 as of December 31, 2014 and 2013, respectively. Net income on a statutory basis was $9,737,634, $11,858,699 and $11,035,792 for the twelve months ended December 31, 2014, 2013 and 2012, respectively.
The Company has designated approximately $48,423,000 and $47,405,000 of retained earnings as of December 31, 2014 and 2013, 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, 2014 and 2013, approximately $90,384,000 and $83,311,000, 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. During 2015, the maximum distributions the insurance subsidiaries can make to the Company without prior approval from applicable regulators is approximately $9,937,000.
Bonds totaling approximately $7,060,000 and $7,022,000 at December 31, 2014 and 2013, respectively, are deposited with the insurance departments of the states in which business is conducted.
v2.4.1.9
Investments in Securities and Fair Value
12 Months Ended
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Investments In Securities and Fair Value
Investments in Securities and Fair Value
The aggregate estimated 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:
December 31, 2014
Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Estimated
Fair
Value
Fixed maturities, available-for-sale, at fair value:







General obligations of U.S. states, territories and political subdivisions
$
35,215,247


$
1,527,794


$
19,542


$
36,723,499

Issuer obligations of U.S. states, territories and political subdivisions special revenue
46,707,033


2,405,725


55,502


49,057,256

Corporate debt securities
21,576,641


823,133


71,339


22,328,435

Auction rate securities
922,129


16,971




939,100

Total
$
104,421,050


$
4,773,623


$
146,383


$
109,048,290

Equity securities, available-for-sale, at fair value:











Common stocks and nonredeemable preferred stocks
$
24,128,753


$
15,225,459


$
99,231


$
39,254,981

Total
$
24,128,753


$
15,225,459


$
99,231


$
39,254,981

Short-term investments:











Money market funds and certificates of deposit
$
2,576,993


$


$


$
2,576,993

Total
$
2,576,993


$


$


$
2,576,993

December 31, 2013
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Fixed maturities, available-for-sale, at fair value:
 
 
 
 
 
 
 
General obligations of U.S. states, territories and political subdivisions
$
38,449,309

 
$
1,922,862

 
$
184,351

 
$
40,187,820

Issuer obligations of U.S. states, territories and political subdivisions special revenue
30,874,571

 
1,234,130

 
204,800

 
31,903,901

Corporate debt securities
17,736,608

 
789,840

 
108,456

 
18,417,992

Auction rate securities
919,672

 
16,028

 

 
935,700

Total
$
87,980,160

 
$
3,962,860

 
$
497,607

 
$
91,445,413

Equity securities, available-for sale, at fair value:
 
 
 
 
 
 
 
Common stocks and nonredeemable preferred stocks
$
22,200,369

 
$
14,052,780

 
$
109,084

 
$
36,144,065

Total
$
22,200,369

 
$
14,052,780

 
$
109,084

 
$
36,144,065

Short-term investments:
 

 
 

 
 

 
 

Money market funds and certificates of deposit
$
7,926,373

 
$

 
$

 
$
7,926,373

Total
$
7,926,373

 
$

 
$

 
$
7,926,373


The special revenue category for both periods presented includes over 30 individual bonds with revenue sources from a variety of industry sectors.
The scheduled maturities of fixed maturity securities at December 31, 2014 were as follows:
 
Available-for-Sale
 
Amortized
Cost
 
Fair
Value
Due in one year or less
$
13,682,264

 
$
13,844,384

Due after one year through five years
52,358,705

 
54,918,427

Due five years through ten years
36,385,776

 
37,703,640

Due after ten years
1,994,305

 
2,581,839

Total
$
104,421,050

 
$
109,048,290


Earnings on investments for the years ended December 31 were as follows:
 
2014
 
2013
 
2012
Fixed maturities
$
3,282,810

 
$
2,997,901

 
$
3,154,131

Equity securities
973,419

 
890,917

 
815,674

Invested cash and other short-term investments
3,202

 
5,754

 
10,576

Miscellaneous interest
70

 
36

 
30

Investment income
$
4,259,501

 
$
3,894,608

 
$
3,980,411


Gross realized gains and losses on sales of investments for the years ended December 31 are summarized as follows:
 
2014
 
2013
 
2012
Gross realized gains:
 
 
 
 
 
General obligations of U.S. states, territories and political subdivisions
$

 
$

 
$
250

Corporate debt securities
6,670

 

 
52,396

Common stocks and nonredeemable preferred stocks
1,021,463

 
369,673

 
450,461

Auction rate securities

 

 
211,061

Total
1,028,133

 
369,673

 
714,168

Gross realized losses:
 
 
 
 
 
Common stocks and nonredeemable preferred stocks
(509,854
)
 
(180,169
)
 
(91,975
)
Other than temporary impairment of securities
(14,542
)
 

 
(93,436
)
Total
(524,396
)
 
(180,169
)
 
(185,411
)
Net realized gain
$
503,737

 
$
189,504

 
$
528,757

Net realized (loss) gain on other investments:
 
 
 
 
 
Impairments of other assets and investments
$
(10,062
)
 
$
(34,070
)
 
$
(6,504
)
Net gain on other assets and investments
45,288

 
48,946

 
543,986

Net loss on other assets and investments
(270,669
)
 
(8,580
)
 

Total
$
(235,443
)
 
$
6,296

 
$
537,482

Net realized gain on investments
$
268,294

 
$
195,800

 
$
1,066,239


Realized gains and losses are determined on the specific identification method. 
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, 2014 and 2013:
 
Less than 12 Months
 
12 Months or Longer
 
Total
December 31, 2014
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
 
Fair Value
 
Unrealized Loss
General obligations of U.S. states, territories and political subdivisions
$
2,113,194

 
$
(19,542
)
 
$

 
$

 
$
2,113,194

 
$
(19,542
)
Issuer obligations of U.S. states, territories and political subdivisions special revenue
3,946,977

 
(13,453
)
 
1,182,390

 
(42,049
)
 
5,129,367

 
(55,502
)
Corporate debt securities
6,924,430

 
(71,339
)
 

 

 
6,924,430

 
(71,339
)
Total fixed maturity securities
$
12,984,601

 
$
(104,334
)
 
$
1,182,390

 
$
(42,049
)
 
$
14,166,991

 
$
(146,383
)
Equity securities
930,208

 
(71,669
)
 
141,280

 
(27,562
)
 
1,071,488

 
(99,231
)
Total temporarily impaired securities
$
13,914,809

 
$
(176,003
)
 
$
1,323,670

 
$
(69,611
)
 
$
15,238,479

 
$
(245,614
)
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
General obligations of U.S. states, territories and political subdivisions
$
4,198,012

 
$
(184,351
)
 
$

 
$

 
$
4,198,012

 
$
(184,351
)
Issuer obligations of U.S. states, territories and political subdivisions special revenue
11,010,093

 
(204,800
)
 

 

 
11,010,093

 
(204,800
)
Corporate debt securities
5,942,570

 
(108,456
)
 

 

 
5,942,570

 
(108,456
)
Total fixed maturity securities
$
21,150,675

 
$
(497,607
)
 
$

 
$

 
$
21,150,675

 
$
(497,607
)
Equity securities
2,035,971

 
(72,998
)
 
244,929

 
(36,086
)
 
2,280,900

 
(109,084
)
Total temporarily impaired securities
$
23,186,646

 
$
(570,605
)
 
$
244,929

 
$
(36,086
)
 
$
23,431,575

 
$
(606,691
)

As of December 31, 2014, the Company held $14,166,991 in fixed maturity securities with unrealized losses of $146,383.  As of December 31, 2013, the Company held $21,150,675 in fixed maturity securities with unrealized losses of $497,607.  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, 2014, the Company held $1,071,488 in equity securities with unrealized losses of $99,231.  As of December 31, 2013, the Company held $2,280,900 in equity securities with unrealized losses of $109,084.  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 25 and 26 securities had unrealized losses at December 31, 2014 and December 31, 2013, 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 2014, the Company recorded other-than-temporary impairment charges in the amount of $14,542 related to securities. During 2013, the Company did not record any other-than-temporary impairment charges related to securities.  During 2012, the Company recorded other-than-temporary impairment charges in the amount of $93,436 related to securities. Other-than-temporary impairment charges are included in net realized gain on investments in the Consolidated Statements of Income.
Valuation of Financial Assets and Liabilities  
The FASB has established a valuation hierarchy for disclosure of the inputs 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 are quoted prices (unadjusted) in active markets for identical assets or liabilities.  Level 2 inputs 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.
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.
Debt and Equity Securities
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.  Fair value is principally based on market values obtained from a third party pricing service.  Factors that are used in determining 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 a third party pricing service, although as discussed below, the Company does consult other pricing resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with Accounting Standards Codification (“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, 2014 and December 31, 2013, 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 are classified as Level 2 because the pricing service from which the Company has obtained fair values for these instruments uses valuation models which use observable market inputs in addition to trading 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 auction rate securities (“ARS”) because quoted prices are unavailable due to the failure of auctions.  The Company’s ARS portfolio is comprised entirely of investment grade student loan ARS. The par value of these securities was $1,000,000 as of December 31, 2014 and December 31, 2013,  with approximately 97.0% as of December 31, 2014 and December 31, 2013, guaranteed by the U.S. Department of Education.

Some of the inputs to ARS valuation are unobservable in the market and are significant; therefore, the Company utilizes another third party pricing service to assist in the determination of the fair market value of these securities.  This 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 key assumptions the service used to determine fair value as of December 31, 2014 and 2013:
 
2014
 
2013
Cumulative probability of earning maximum rate until maturity
—%
 
—%
Cumulative probability of principle returned prior to maturity
95.2%
 
95.6%
Cumulative probability of default at some future point
4.8%
 
4.4%

Significant increases or decreases in any of the inputs in isolation could result in significant changes to the fair value measurement. Generally, increases in default probabilities and liquidity risk premiums lower the fair market value while increases in principal being returned and earning maximum rates increase fair market values.
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 2014 and 2013, the difference in the low and high values of the ranges was approximately one and four percent of the carrying value of the Company’s ARS.
The following table presents, by level, the financial assets carried at fair value measured on a recurring basis as of December 31, 2014 and 2013.  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 3 assets are comprised solely of ARS.
As of December 31, 2014
Level 1
 
Level 2
 
Level 3
 
Total
Short-term investments
$
2,576,993

 
$

 
$

 
$
2,576,993

Equity securities:
 
 
 
 
 
 
 
Common stocks and nonredeemable preferred stock
39,254,981

 

 

 
39,254,981

Fixed maturities:
 
 
 
 
 
 
 
Obligations of U.S. states, territories and political subdivisions*

 
85,780,755

 

 
85,780,755

Corporate debt securities*

 
22,328,435

 
939,100

 
23,267,535

Total
$
41,831,974

 
$
108,109,190

 
$
939,100

 
$
150,880,264

As of December 31, 2013
Level 1
 
Level 2
 
Level 3
 
Total
Short-term investments
$
7,926,373

 
$

 
$

 
$
7,926,373

Equity securities:
 
 
 
 
 
 
 
Common stocks and nonredeemable preferred stock
36,144,065

 

 

 
36,144,065

Fixed maturities:
 
 
 
 
 
 
 
Obligations of U.S. states, territories and political subdivisions*

 
72,091,721

 

 
72,091,721

Corporate debt securities*

 
18,417,992

 
935,700

 
19,353,692

Total
$
44,070,438

 
$
90,509,713

 
$
935,700

 
$
135,515,851

*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 FASB ASC 820, 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 respective values obtained from other pricing resources.  In the event the Company disagrees with a price provided by its pricing services, the respective 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 value of the underlying entity. These items are included in other investments in the Consolidated Balance Sheets.
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 17. This item is included in accounts payable and accrued liabilities in the Consolidated Balance Sheets.
The carrying amounts and fair values of these financial instruments (please note investments are disclosed in a previous table) as of December 31, 2014 and 2013 are presented in the following table:
As of December 31, 2014