Independence Holding (IHC) 10-K 6 Jun 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	May. 31, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	Independence Holding Company
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Entity Central Index Key	701,869
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		17,223,233
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Public Float			$ 98,596
Trading Symbol	ihc

INDEPENDENCE HOLDING COMPANY CO

INDEPENDENCE HOLDING COMPANY CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Dec. 31, 2015		Dec. 31, 2014
Investments:
Short-term investments		$ 50		$ 50
Securities purchased under agreements to resell		28,285		16,790
Trading securities		1,259		11,095
Fixed maturities, available-for-sale		428,601		583,880
Equity securities, available-for-sale		8,426		13,895
Other investments		21,538		25,251
Total investments		488,159		650,961
Cash and cash equivalents		19,171		25,083
Deferred acquisition costs		499		30,806
Due and unpaid premiums		69,075		62,628
Due from reinsurers		480,859		278,242
Premium and claim funds		22,755		32,553
Goodwill		52,940		50,318
Other assets		64,505		65,636
TOTAL ASSETS		1,197,963		1,196,227
LIABILITIES:
Policy benefits and claims		245,443		236,803
Future policy benefits		270,624		277,041
Funds on deposit		173,350		186,782
Unearned premiums		10,236		9,455
Other policyholders' funds		11,822		18,802
Due to reinsurers		44,141		47,945
Accounts payable, accruals and other liabilities		66,308		67,641
Debt		5,189		4,000
Junior subordinated debt securities		38,146		38,146
TOTAL LIABILITIES		$ 865,259		$ 886,615
Commitments and contingent liabilities	[1]
IHC STOCKHOLDERS' EQUITY:
Preferred stock	[2]
Common Stock		$ 18,569	[3]	$ 18,531	[4]
Paid-in capital		127,733		127,098
Accumulated other comprehensive income (loss)		(3,440)		22
Treasury stock, at cost		(13,961)	[5]	(12,141)	[6]
Retained earnings		194,450		166,177
TOTAL IHC STOCKHOLDERS' EQUITY		323,351		299,687
NONCONTROLLING INTERESTS IN SUBSIDIARIES		9,353		9,925
TOTAL EQUITY		332,704		309,612
TOTAL LIABILITIES AND EQUITY		$ 1,197,963		$ 1,196,227
[1]	Note 14
[2]	None issued.
[3]	$1 par value; 23,000,000 shares authorized, 18,569,183 shares issued and 17,265,758 shares outstanding.
[4]	$1 par value; 23,000,000 shares authorized, 18,531,158 shares issued and 17,371,040 shares outstanding.
[5]	1,303,425 treasury shares
[6]	1,160,118 treasury shares

INDEPENDENCE HOLDING COMPANY C3

INDEPENDENCE HOLDING COMPANY CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
STATEMENT OF FINANCIAL POSITION
Preferred Stock, shares issued	0	0
Common Stock, par value	$ 1	$ 1
Common Stock, shares authorized	23,000,000	23,000,000
Common Stock, shares issued	18,569,183	18,531,158
Common Stock, shares outstanding	17,265,758	17,371,040
Treasury Stock, shares	1,303,425	1,160,118

INDEPENDENCE HOLDING COMPANY C4

INDEPENDENCE HOLDING COMPANY CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
REVENUES:
Premiums earned	$ 479,534	$ 479,048	$ 495,991
Net investment income	17,298	21,692	27,471
Fee income	12,954	20,646	26,954
Other income	10,276	4,859	4,878
Gain on sale of subsidiary to joint venture	9,940
Net realized investment gains	3,094	7,688	19,750
Net impairment losses recognized in earnings	(228)
TOTAL REVENUES	532,868	533,933	575,044
EXPENSES:
Insurance benefits, claims and reserves	307,178	326,035	354,790
Selling, general and administrative expenses	172,180	177,848	179,553
Amortization of deferred acquisition costs	3,524	4,941	15,132
Interest expense on debt	1,798	1,797	1,915
TOTAL EXPENSES	484,680	510,621	551,390
Income (loss) before income taxes	48,188	23,312	23,654
Income taxes (benefits)	17,666	6,391	8,398
Net income (loss)	30,522	16,921	15,256
(Income) loss from noncontrolling interests in subsidiaries	(578)	(628)	(1,477)
NET INCOME (LOSS) ATTRIBUTABLE TO IHC	$ 29,944	$ 16,293	$ 13,779
Basic income (loss) per common share	$ 1.73	$ 0.93	$ 0.78
WEIGHTED AVERAGE SHARES OUTSTANDING	17,314	17,471	17,758
Diluted income (loss) per common share	$ 1.71	$ 0.92	$ 0.77
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING	17,484	17,636	17,871

INDEPENDENCE HOLDING COMPANY C5

INDEPENDENCE HOLDING COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
STATEMENT OF COMPREHENSIVE INCOME
Net income (loss)	$ 30,522	$ 16,921	$ 15,256
Available-for-sale securities:
Unrealized gains (losses) on available-for-sale securities	(5,546)	15,389	(38,439)
Tax (benefit) on unrealized gains (losses) on available-for-sale securities	(2,041)	4,768	(12,252)
Unrealized gains (losses) on available-for-sale securities, net of tax	(3,505)	10,621	(26,187)
Cash flow hedge:
Unrealized gains (losses) on cash flow hedge, pre-tax	71	120	159
Tax (benefit) on unrealized gains (losses) on cash flow hedge	28	48	63
Unrealized gains (losses) on cash flow hedge, net of taxes	43	72	96
Other comprehensive income (loss), net of tax	(3,462)	10,693	(26,091)
Comprehensive income (loss), net of tax	27,060	27,614	(10,835)
Comprehensive (income) loss, net of tax, attributable to noncontrolling interests:
(Income) loss from noncontrolling interests in subsidiaries	(578)	(628)	(1,477)
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests:
Net unrealized (gains) losses on available-for-sale securities, net of tax, attributable to noncontrolling interests	(5)	(199)	665
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	(5)	(199)	665
Comprehensive (income) loss, net of tax, attributable to noncontrolling interests	(583)	(827)	(812)
Comprehensive income (loss), net of tax, attributable to IHC	$ 26,477	$ 26,787	$ (11,647)

INDEPENDENCE HOLDING COMPANY C6

INDEPENDENCE HOLDING COMPANY CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	COMMON STOCK	PAID-IN CAPITAL	ACCUMULATED OTHER COMPREHENSIVE INCOME(LOSS)	TREASURY STOCK, AT COST	RETAINED EARNINGS	TOTAL IHC STOCKHOLDERS' EQUITY		NON-CONTROLLING INTERESTS	Total
Stockholders Equity, Value at Dec. 31, 2012	$ 18,462	$ 126,589	$ 15,013	$ (4,533)	$ 138,663	$ 294,194		$ 17,163	$ 311,357
Stockholders Equity, Shares at Dec. 31, 2012	18,461,992			(529,038)
Net income (loss)					13,779	13,779		1,477	15,256
Other comprehensive income (loss), net of tax			(25,426)			(25,426)		(665)	(26,091)
Repurchases of common stock, Value				$ (3,636)		(3,636)			(3,636)
Repurchases of common stock, Shares				(334,305)
Purchases of noncontrolling interests		(1,168)	(59)			(1,227)		(7,598)	(8,825)
Common stock dividend					(1,241)	(1,241)	[1]		(1,241)	[1]
Share-based compensation and related tax effects, Value	$ 62	792				854			854
Share-based compensation and related tax effects, Shares	61,741
Distributions to noncontrolling interests								(888)	(888)
Other capital transactions		26			(22)	4		26	30
Stockholders Equity, Value at Dec. 31, 2013	$ 18,524	126,239	(10,472)	$ (8,169)	151,179	277,301		9,515	286,816
Stockholders Equity, Shares at Dec. 31, 2013	18,523,733			(863,343)
Net income (loss)					16,293	16,293		628	16,921
Other comprehensive income (loss), net of tax			10,494			10,494		199	10,693
Repurchases of common stock, Value				$ (3,972)		(3,972)			(3,972)
Repurchases of common stock, Shares				(296,775)
Common stock dividend					(1,223)	(1,223)	[1]		(1,223)	[1]
Share-based compensation and related tax effects, Value	$ 7	756				763			763
Share-based compensation and related tax effects, Shares	7,425
Distributions to noncontrolling interests								(472)	(472)
Other capital transactions		103			(72)	31		55	86
Stockholders Equity, Value at Dec. 31, 2014	$ 18,531	127,098	22	$ (12,141)	166,177	299,687		9,925	309,612
Stockholders Equity, Shares at Dec. 31, 2014	18,531,158			(1,160,118)
Net income (loss)					29,944	29,944		578	30,522
Other comprehensive income (loss), net of tax			(3,467)			(3,467)		5	(3,462)
Repurchases of common stock, Value				$ (1,820)		(1,820)			(1,820)
Repurchases of common stock, Shares				(143,307)
Acquisition of subsidiary								608	608
Purchases of noncontrolling interests		112	5			117		(1,851)	(1,734)
Common stock dividend					(1,562)	(1,562)	[2]		(1,562)	[2]
Share-based compensation and related tax effects, Value	$ 38	408				446			446
Share-based compensation and related tax effects, Shares	38,025
Other capital transactions		115			(109)	6		88	94
Stockholders Equity, Value at Dec. 31, 2015	$ 18,569	$ 127,733	$ (3,440)	$ (13,961)	$ 194,450	$ 323,351		$ 9,353	$ 332,704
Stockholders Equity, Shares at Dec. 31, 2015	18,569,183			(1,303,425)
[1]	$0.07 per share
[2]	$0.09 per share

INDEPENDENCE HOLDING COMPANY C7

INDEPENDENCE HOLDING COMPANY CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Common stock dividends declared, per share	$ 0.09	$ 0.07	$ 0.07

INDEPENDENCE HOLDING COMPANY C8

INDEPENDENCE HOLDING COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS PROVIDED BY (USED BY) OPERATING ACTIVITIES:
Net income (loss)	$ 30,522	$ 16,921	$ 15,256
Adjustments to reconcile net income to net change in cash from operating activities:
Gain on sale of subsidiary to joint venture	(9,940)
Gain on disposition of assets	(5,053)
Amortization of deferred acquisition costs	3,524	4,941	15,132
Net realized investment gains	(3,094)	(7,688)	(19,750)
Net impairment losses recognized in earnings	228
Equity income from equity method investments	(405)	(1,106)	(2,506)
Depreciation and amortization	3,063	3,932	4,577
Deferred tax expense (benefits)	2,239	5,628	8,692
Other adjustments to reconcile net income	4,349	9,449	5,574
Changes in assets and liabilities:
Net sales (purchases) of trading securities	5,356	(4,719)	1,603
Change in insurance liabilities	(18,907)	(94,876)	36,136
(Additions) reductions to deferred acquisition costs, net	26,774	(6,223)	(5,827)
Change in amount due from reinsurers	(202,617)	101,987	(213,349)
Change in premium and claim funds	(1,891)	4,800	3,243
Change in current income tax liability	3,386	2,241	(951)
Change in due and unpaid premiums	(6,447)	(3,193)	(10,005)
Change in other assets	(5,139)	2,580	(219)
Change in other liabilities	9,328	(7,343)	78
Net change in cash from operating activities	(164,724)	27,331	(162,316)
CASH FLOWS PROVIDED BY (USED BY) INVESTING ACTIVITIES:
Net sales (purchases) of securities under resale and repurchase agreements	(11,495)	5,804	11,362
Sales of equity securities	11,986	288	11,529
Purchases of equity securities	(6,601)	(1,228)	(7,517)
Sales of fixed maturities	629,376	353,143	551,756
Maturities and other repayments of fixed maturities	42,630	45,091	57,090
Purchases of fixed maturities	(521,417)	(421,285)	(462,823)
Acquisition of subsidiary, net of cash acquired	511
Proceeds from deconsoidation of subsidiary, net of cash divested	4,518
Proceeds from sale of assets	8,000
Change in policy loans	10,629	660	10,837
Other investing activites	191	1,674	9,455
Net change in cash from investing activities	168,328	(15,853)	181,689
CASH FLOWS PROVIDED BY (USED BY) FINANCING ACTIVITIES:
Payments for repurchases of common stock	(1,820)	(3,972)	(3,636)
Cash paid in acquisitions of noncontrolling interests	(1,734)		(8,825)
Proceeds (withdrawals) of investment-type insurance contracts	(2,306)	(2,988)	(3,262)
Repayment of long-term debt	(2,617)	(2,000)	(2,000)
Dividends paid	(1,392)	(1,233)	(620)
Other financing activities	353	(431)	(746)
Net change in cash from financing activities	(9,516)	(10,624)	(19,089)
Net change in cash and cash equivalents	(5,912)	854	284
Cash and cash equivalents, beginning of period	25,083	24,229	23,945
Cash and cash equivalents, end of period	$ 19,171	$ 25,083	$ 24,229

Note 1. Organization, Consolida

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies	12 Months Ended
	Dec. 31, 2015
Notes
Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies	Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies (A) Business and Organization Independence Holding Company, a Delaware corporation (“IHC”), is a holding company principally engaged in the life and health insurance business through: (i) its insurance companies, Standard Security Life Insurance Company of New York ("Standard Security Life"), Madison National Life Insurance Company, Inc. ("Madison National Life"), Independence American Insurance Company (“Independence American”); and (ii) its marketing and administrative companies, including IHC Risk Solutions, LLC, IHC Specialty Benefits Inc. and IHC Carrier Solutions, Inc. IHC also owns a significant equity interest in: (i) Ebix Health Exchange Holdings, LLC (“Ebix Health Exchange”), a newly formed administration exchange for health and pet insurance; and (ii) a managing general underwriter (“MGU”) that writes medical stop-loss. Standard Security Life, Madison National Life and Independence American are sometimes collectively referred to as the “Insurance Group”. IHC and its subsidiaries (including the Insurance Group) are sometimes collectively referred to as the "Company", or “IHC”, or are implicit in the terms “we”, “us” and “our”. Geneve Corporation, a diversified financial holding company, and its affiliated entities, held approximately 53% of IHC's outstanding common stock at December 31, 2015. (B) Consolidation American Independence Corp At December 31, 2015 and 2014, the Company owned approximately 92% and 90%, respectively, of the outstanding common stock of American Independence Corp. ("AMIC"). In January 2016, IHC’s Board of Directors has preliminarily determined to take the steps necessary to take AMIC private. AMIC is an insurance holding company engaged in the insurance and reinsurance business. The Company has increased its ownership in AMIC through various transactions described below. Because IHC had a controlling interest in AMIC prior to these transactions, these purchases and acquisitions were accounted for as equity transactions. Accordingly, any differences between the fair value of the consideration paid and the carrying value of the noncontrolling interests acquired were recognized as changes in IHC’s equity. In 2015, AMIC acquired Global Accident Facilities, LLC (“GAF”). See Note 6 for more information regarding the acquisition of GAF. In 2015, IHC purchased shares of AMIC common stock increasing its ownership interest in AMIC to approximately 92%. In 2013, IHC’s ownership in AMIC increased from 79% to 90% as a result of: (i) share repurchases by AMIC; and (ii) a tender offer whereby IHC purchased tendered shares of AMIC common stock for cash. Effects of Ownership Changes in Subsidiaries The following table summarizes the effects of any changes in the Company’s ownership interests in its less than wholly owned subsidiaries on IHC’s equity for the years indicated (in thousands). 2015 2014 2013 Changes in IHC’s paid-in capital: Purchases of AMIC shares $ (199) $ - $ (1,571) Repurchases of shares by AMIC - - 403 Purchase remaining IPA Family, LLC interests 311 Net transfers from (to) noncontrolling interests $ 112 $ - $ (1,168) (C) Basis of Presentation The Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of IHC and its consolidated subsidiaries. Effective September 1, 2015 (“Deconsolidation Date”), pursuant to the terms of a contribution agreement, IHC contributed all of its shares in its subsidiary, IHC Health Solutions, Inc. (“IHC Health Solutions”) to Ebix Health Exchange, a newly formed joint venture with Ebix, Inc. (“Ebix”), and, as a result, IHC deconsolidated IHC Health Solutions (see Note 6). In accordance with U.S. GAAP, the accompanying Consolidated Financial Statements include the operating results of IHC Health Solutions prior to the Deconsolidation Date. Subsequent to the Deconsolidation Date, the Company’s equity interest in the newly formed joint venture is accounted for under the equity method of accounting. All significant intercompany transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect: (i) the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements; and (ii) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (D) Immaterial Error Correction During the fourth quarter of 2015, the Company identified an error in the recording of deferred tax assets and liabilities made in connection with the acquisition of AMIC in 2010. An immaterial error correction was made in the Consolidated Balance Sheet at December 31, 2014 and in the Consolidated Statements of Changes in Stockholders’ Equity for the two-year period ended December 31, 2014. Other assets in the Consolidated Balance Sheet at December 31, 2014 was increased by $8,510,000, representing the correction of net deferred tax asset balances, with a corresponding increase made to retained earnings, representing an adjustment to the 2010 gain on bargain purchase of AMIC, the effect of which is reflected in the Consolidated Balance Sheet at December 31, 2014 and in the Statements of Changes in Stockholders’ Equity as of December 31, 2012, 2013 and 2014. This immaterial error correction had no impact on the Consolidated Statements of Income, the computations of basic and diluted earnings per share, the Consolidated Statements of Comprehensive Income, or the Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2014 or 2015. (E) Reclassifications Certain amounts in prior year’s Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2015 presentation. (F) Cash Equivalents and Short-Term Investments Cash equivalents are carried at cost which approximates fair value and include principally interest-bearing deposits at brokers, money market instruments and U.S. Treasury securities with original maturities of less than 91 days. Investments with original maturities of 91 days to one year are considered short-term investments and are carried at cost which approximates fair value. (G) Securities Purchased Under Agreements to Resell Securities purchased under agreements to resell ("resale agreements") are carried at the amounts at which the securities will be subsequently resold as specified in the agreements. Resale agreements are utilized to invest excess funds on a short-term basis. At December 31, 2015, the Company had $28,285,000 invested in resale agreements, all of which settled on January 2 , (H) Investment Securities (i) (a) (b) (ii) (iii) The Company periodically reviews and assesses the vendor’s qualifications and the design and appropriateness of its pricing methodologies. Management will on occasion challenge pricing information on certain individual securities and, through communications with the vendor, obtain information about the assumptions, inputs and methodologies used in pricing those securities, and corroborate it against documented pricing methodologies. Validation procedures are in place to determine completeness and accuracy of pricing information, including, but not limited to: (i) review of exception reports that (a) identify any zero or un-priced securities; (b) identify securities with no price change; and (c) identify securities with significant price changes; (ii) performance of trend analyses; (iii) periodic comparison of pricing to alternative pricing sources; and (iv) comparison of pricing changes to expectations based on rating changes, benchmarks or control groups. In certain circumstances, pricing is unavailable from the vendor and broker pricing information is used to determine fair value. In these instances, management will assess the quality of the data sources, the underlying assumptions and the reasonableness of the broker quotes based on the current market information available. To determine if an exception represents an error, management will often have to exercise judgment. Procedures to resolve an exception vary depending on the significance of the security and its related class, the frequency of the exception, the risk of material misstatement, and the availability of information for the security. These procedures include, but are not limited to; (i) a price challenge process with the vendor; (ii) pricing from a different vendor; (iii) a reasonableness review; and (iv) a change in price based on better information, such as an actual market trade, among other things. Management considers all facts and relevant information obtained during the above procedures to determine the proper classification of each security in the Fair Value Hierarchy. (iv) In assessing corporate debt securities for other-than-temporary impairment, the Company evaluates the ability of the issuer to meet its debt obligations and the value of the company or specific collateral securing the debt position. For mortgage-backed securities where loan level data is not available, the Company uses a cash flow model based on the collateral characteristics. Assumptions about loss severity and defaults used in the model are primarily based on actual losses experienced and defaults in the collateral pool. Prepayment speeds, both actual and estimated, are also considered. The cash flows generated by the collateral securing these securities are then determined with these default, loss severity and prepayment assumptions. These collateral cash flows are then utilized, along with consideration for the issue’s position in the overall structure, to determine the cash flows associated with the mortgage-backed security held by the Company. In addition, the Company evaluates other asset-backed securities for other-than-temporary impairment by examining similar characteristics referenced above for mortgage-backed securities. The Company evaluates U.S. Treasury securities and obligations of U.S. Government corporations, U.S. Government agencies, and obligations of states and political subdivisions for other-than-temporary impairment by examining the terms and collateral of the security. Equity securities may experience other-than-temporary impairment in the future based on the prospects for full recovery in value in a reasonable period of time and the Company’s ability and intent to hold the security to recovery. If a decline in fair value is judged by management to be other-than-temporary or management does not have the intent or ability to hold a security, a loss is recognized by a charge to total other-than-temporary impairment losses in the Consolidated Statement of Income. For the purpose of other-than-temporary impairment evaluations, redeemable preferred stocks are evaluated in a manner similar to debt securities. Declines in the creditworthiness of the issuer of debt securities with both debt and equity-like features are evaluated using the equity model in consideration of other-than-temporary impairment. Subsequent increases and decreases, if not an other-than-temporary impairment, in the fair value of available-for-sale securities that were previously impaired, are recorded in other comprehensive income (loss). (I) Other Investments Investment partnership interests relate to limited investment partnerships that are relatively insensitive to interest rates. All securities held by these partnerships are carried at fair value with changes in fair value credited or charged, as appropriate, to the Consolidated Statements of Income. The Company's investment partnership interests are carried at a value which approximates the Company's equity in the underlying net assets of the partnerships or the equivalent of the net asset value per share. Operating partnership interests relate to insurance related limited operating partnerships. The Company's operating partnership interests are carried on the equity method which approximates the Company's equity in the underlying net assets of the partnership. Equity income or loss on partnership interests are credited or charged, as appropriate, to the Consolidated Statements of Income. Policy loans are stated at their aggregate unpaid balances. (J) Deferred Acquisition Costs ("DAC") Costs that vary with and are primarily related to the successful acquisition of insurance policies and investment type contracts are deferred and recorded as deferred policy acquisition costs ("DAC"). These costs are principally broker fees, agent commissions, and the purchase prices of the acquired blocks of insurance policies and investment type policies. DAC is amortized to expense and reported separately in the Consolidated Statements of Income. All DAC within a particular product type is amortized on the same basis using the following methods: For traditional life insurance and other premium paying policies, amortization of DAC is charged to expense over the related premium revenue recognition period. Assumptions used in the amortization of DAC are determined based upon the conditions as of the date of policy issue or assumption and are not generally revised during the life of the policy. For long duration type contracts, such as annuities and universal life business, amortization of DAC is charged to expense over the life of the underlying contracts based on the present value of the estimated gross profits ("EGPs") expected to be realized over the life of the book of contracts. EGPs consist of margins based on expected mortality rates, persistency rates, interest rate spreads, and other revenues and expenses. The Company regularly evaluates its EGPs to determine if actual experience or other evidence suggests that earlier estimates should be revised. If the Company determines that the current assumptions underlying the EGPs are no longer the best estimate for the future due to changes in actual versus expected mortality rates, persistency rates, interest rate spreads, or other revenues and expenses, the future EGPs are updated using the new assumptions and prospective unlocking occurs. These updated EGPs are utilized for future amortization calculations. The total amortization recorded to date is adjusted through a current charge or credit to the Consolidated Statements of Income. Internal replacements of insurance and investment contracts determined to result in a replacement contract that is substantially changed from the original contract will be accounted for as an extinguishment of the original contract, resulting in a release of the unamortized deferred acquisition costs, unearned revenue, and deferral of sales inducements associated with the replaced contract. Deferred acquisition costs have been increased (decreased) by $(10,000), $(323,000) and $5,681,000 in 2015, 2014 and 2013 respectively, due to unrealized investment gains and losses. A corresponding increase or decrease was recorded in other comprehensive income or loss. The balance of deferred acquisition costs decreased significantly in 2015 as a result of a coinsurance and sale agreement whereby Madison National Life and Standard Security Life together entered into an agreement to cede substantially all of their individual life and annuity policy blocks in run-off. See Note 8 for more information regarding the reinsurance transaction. (K) Property and Equipment Property and equipment of $1,977,000 and $3,086,000 are included in other assets at December 31, 2015 and 2014, respectively, net of accumulated depreciation and amortization of $6,650,000 and $14,030,000, respectively. Improvements are capitalized while repair and maintenance costs are charged to operations as incurred. Depreciation of property and equipment has been provided on the straight-line method over the estimated useful lives of the respective assets. Amortization of leasehold improvements has been provided on the straight-line method over the shorter of the lease term or the estimated useful life of the asset. (L) Goodwill and Other Intangible Assets Goodwill carrying amounts are evaluated for impairment at the reporting unit level, which is equivalent to an operating segment, at least annually. If the fair value of a reporting unit is less than its carrying amount, further evaluation is required to determine if a write-down of goodwill is required. In determining the fair value of each reporting unit, we used an income approach, applying a discounted cash flow method which included a residual value. Based on historical experience, we make assumptions as to: (i) expected future performance and future economic conditions, (ii) projected operating earnings, (iii) projected new and renewal business as well as profit margins on such business, and (iv) a discount rate that incorporated an appropriate risk level for the reporting unit. Any impairment of goodwill would be charged to expense. Other intangible assets are amortized to expense over their estimated useful lives and are subject to impairment testing. Any impairment of other intangible assets would be charged to expense. (M) Insurance Liabilities The Company maintains loss reserves to cover its estimated liability for unpaid losses and loss adjustment expenses, where material, including legal, other fees, and costs not associated with specific claims but related to the claims payment function), for reported and unreported claims incurred as of the end of each accounting period. These loss reserves are based on actuarial assumptions and are maintained at levels that are in accordance with U.S. GAAP. Many factors could affect these reserves, including economic and social conditions, frequency and severity of claims, medical trend resulting from the influences of underlying cost inflation, changes in utilization and demand for medical services, and changes in doctrines of legal liability and damage awards in litigation. Therefore, the Company’s reserves are necessarily based on estimates, assumptions and analysis of historical experience. The Company’s results depend upon the variation between actual claims experience and the assumptions used in determining reserves and pricing products. Reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that will be paid for actual claims or the timing of those payments. The Company's estimate of loss represents management's best estimate of the Company's liability at the balance sheet date. Loss reserves differ for short-duration and long-duration insurance policies, including annuities. Reserves are based on approved actuarial methods, but necessarily include assumptions about expenses, mortality, morbidity, lapse rates and future yield on related investments. Policy Benefits and Claims All of the Company’s short-duration contracts are generated from its accident, health, disability and pet insurance business, and are accounted for based on actuarial estimates of the amount of loss inherent in that period’s claims, including losses incurred for which claims have not been reported. Short-duration contract loss estimates rely on actuarial observations of ultimate loss experience for similar historical events. Medical Stop-Loss Liabilities for policy benefits and claims on medical stop-loss coverage are computed using completion factors and expected Net Loss Ratios derived from actual historical premium and claim data. Policy benefits and claims for medical stop-loss insurance are more volatile in nature than those for fully insured medical insurance. This is primarily due to the excess nature of medical stop-loss, with very high deductibles applying to specific claims on any individual claimant and in the aggregate for a given group. The level of these deductibles makes it more difficult to predict the amount and payment pattern of such claims. Furthermore, these excess claims are highly sensitive to changes in factors such as medical trend, provider contracts and medical treatment protocols, adding to the difficulty in predicting claim values and estimating reserves. Also, because medical stop-loss is in excess of an underlying benefit plan, there is an additional layer of claim reporting and processing that can affect claim payment patterns. Finally, changes in the distribution of business by effective month can affect reserve estimates due to the timing of claim occurrences and the time required to accumulate claims against the stop-loss deductible. The two “primary” or “key” assumptions underlying the calculation of policy benefits and claims for Medical Stop-Loss business are (i) projected Net Loss Ratio, and (ii) claim development patterns. The projected Net Loss Ratio is set at expected levels consistent with the underlying assumptions (“Projected Net Loss Ratio”). Claim development patterns are set quarterly as reserve estimates are developed and are based on recent claim development history (“Claim Development Patterns”). The Company uses the Projected Net Loss Ratio to establish reserves until developing losses provide a better indication of ultimate results and it is feasible to set reserves based on Claim Development Patterns. The Company has concluded that a reasonably likely change in the Projected Net Loss Ratio assumption could have a material effect on the Company’s financial condition, results of operations, or liquidity (“Material Effect”) but a reasonably likely change in the Claim Development Pattern would not have a Material Effect. Projected Net Loss Ratio Generally, during the first twelve months of an underwriting year, policy benefits for Medical Stop-Loss are first set at the Projected Net Loss Ratio, which is set using assumptions developed using completed prior experience trended forward. The Projected Net Loss Ratio is the Company’s best estimate of future performance until such time as developing losses provide a better indication of ultimate results. Major factors that affect the Projected Net Loss Ratio assumption in reserving for Medical Stop-Loss relate to: (i) frequency and severity of claims; (ii) changes in medical trend resulting from the influences of underlying cost inflation, changes in utilization and demand for medical services, the impact of new medical technology and changes in medical treatment protocols; and (iii) the adherence to the Company’s underwriting guidelines. Claim Development Patterns Subsequent to the first twelve months of an underwriting year, the Company’s developing losses provide a better indication of ultimate losses. At this point, claims have developed to a level where Claim Development Patterns can be applied to generate reasonably reliable estimates of ultimate claim levels. Development factors based on historical patterns are applied to paid and reported claims to estimate fully developed claims. Claim Development Patterns are reviewed quarterly as reserve estimates are developed and are based on recent claim development history. The Company must determine whether changes in development represent true indications of emerging experience or are simply due to random claim fluctuations. The Company also establishes its best estimates of claim development factors to be applied to more developed treaty year experience. While these factors are based on historical Claim Development Patterns, actual claim development may vary from these estimates. Predicting ultimate claims and estimating reserves in Medical Stop-Loss is more complex than fully insured medical and disability business due to the “excess of loss” nature of these products with very high deductibles applying to specific claims on any individual claimant and in the aggregate for a given group. The level of these deductibles makes it more difficult to predict the amount and payment pattern of such claims. Fluctuations in results for specific coverage are primarily due to the severity and frequency of individual claims, whereas fluctuations in aggregate coverage are largely attributable to frequency of underlying claims rather than severity. Liabilities for first dollar medical reserves and disability coverages are computed using completion factors and expected Net Loss Ratios derived from actual historical premium and claim data. Due to the short-term nature of Medical Stop-Loss, redundancies or deficiencies will typically emerge during the course of the following year rather than over a number of years. For Employer Stop-Loss, as noted above, the Company maintains its reserves based on underlying assumptions until it determines that an adjustment is appropriate based on emerging experience from all of its MGUs for prior underwriting years. Fully Insured Health Policy benefits and claims for Fully Insured Health business are established to provide for the liability for incurred but not paid claims. Policy benefits and claims are calculated using standard actuarial methods and practices. The “primary” assumption in the determination of Fully Insured Health reserves is that historical Claim Development Patterns are representative of future Claim Development Patterns. Factors which may affect this assumption include changes in claim payment processing times and procedures, changes in time delay in submission of claims, and the incidence of unusually large claims. Liabilities for policy benefits and claims for fully insured medical and disability coverage are computed using completion factors and expected Net Loss Ratios derived from actual historical premium and claim data. The reserving analysis includes a review of claim processing statistical measures and large claim early notifications; the potential impacts of any changes in these factors are not material. The delay in submission of claims tends to be stable over time and not subject to significant volatility. While these calculations are based on standard methodologies, they are estimates based on historical patterns. To the extent that actual claim payment patterns differ from historical patterns, such estimated reserves may be redundant or inadequate. The effects of such deviations are evaluated by considering claim backlog statistics and reviewing the reasonableness of projected claim ratios. Other factors which may affect the accuracy of policy benefits and claim estimates include the proportion of large claims which may take longer to adjudicate, changes in billing patterns by providers and changes in claim management practices such as hospital bill audits. Long Term Disability Policy benefits and claims for the Company’s long term disability products are developed using actuarial principles and assumptions that consider, among other things, future offsets and recoveries, elimination periods, interest rates, probability of rehabilitation or mortality, incidence and termination rates based on the Company’s experience. The liability for policy benefits and claims is made up of case reserves, incurred but not reported reserves, reopen reserves, and loss adjustment expense. Incurred but not reported and reopen reserves are calculated by a hind-sight study, which takes historical experience and develops the reserve as a percentage of premiums from prior years. The two “primary” assumptions on which long term disability reserves are based are: (i) morbidity levels; and (ii) recovery rates. If morbidity levels increase, for example due to an epidemic or a recessionary environment, the Company would increase reserves because there would be more new claims than expected. In regard to the assumed recovery rate, if disabled lives recover more quickly than anticipated then the existing claims reserves would be reduced; if less quickly, the existing claims reserves would be increased. Management believes that the Company's methods of estimating the liabilities for policy benefits and claims provided appropriate levels of reserves at December 31, 2015 and 2014. Changes in the Company's policy benefits and claims estimates are generally recorded through a charge or credit to its earnings. Future Policy Benefits The liability for future policy benefits consists of the liabilities associated with the Company’s long-duration contracts, primarily its life and annuity products. For traditional life insurance products, the Company computes the liability for future policy benefits primarily using the net premium method based on anticipated investment yield, mortality, and withdrawals. These methods are widely used in the life insurance industry to estimate the liabilities for future policy benefits. Inherent in these calculations are management and actuarial judgments and estimates that could significantly impact the ending reserve liabilities and, consequently, operating results. Actual results may differ, and these estimates are subject to interpretation and change. Management believes that the Company's methods of estimating the liabilities for future policy benefits provided appropriate levels of reserves at December 31, 2015 and 2014. Changes in the Company's future policy benefits estimates are recorded through a charge or credit to its earnings. Funds on Deposit Funds received (net of mortality and expense charges) for certain long-duration contracts (principally deferred annuities and universal life policies) are credited directly to a policyholder liability account, funds on deposit. Withdrawals are recorded directly as a reduction of respective policyholders' funds on deposit. Amounts on deposit were credited at annual rates ranging from 3.0% to 7.0% in 2015, 3.0% to 8.0% in 2014, and 2.5% to 8.0% in 2013. Other Policyholders’ Funds Other policyholders’ funds represent interest-bearing liabilities arising from the sale of products, such as universal life, interest-sensitive life and annuities. Policyholder funds are primarily comprised of deposits received and interest credited to the benefit of the policyholder less surrenders and withdrawals, mortality charges and administrative expenses. Interest credited to policyholder funds represents interest accrued or paid on interest-sensitive life policies and investment policies. These amounts are reported in insurance benefits, claims and reserves on the Consolidated Statements of Income. Credit rates for certain annuities and interest-sensitive life policies are adjusted periodically by the Company to reflect current market conditions, subject to contractually guaranteed minimum rates. (N) Derivative Instruments All derivatives, whether designated in hedging relationships or not, are required to be recorded in the balance sheet as assets or liabilities at fair value. Hedge accounting is permitted only if certain criteria are met, including a requirement that a highly effective relationship exist between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. Results of effective hedges are recognized in other comprehensive income or loss for cash flow hedges. The ineffective portions of hedge results are recognized in current earnings. At December 31, 2015, the Company had an interest rate swap agreement that converts an outstanding term loan from a variable rate to a fixed rate. This agreement was designated and effective as a cash flow hedge. The objective of the swap is to reduce the variability in cash flows associated with the re-pricing of interest rates on certain variable rate debt. Changes in fair value of the swap were recorded through other comprehensive income or loss. (O) Deferred Income Taxes The provision for deferred income taxes is based on the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized by applying enacted statutory tax rates to temporary differences between amounts reported in the Consolidated Financial Statements and the tax bases of existing assets and liabilities in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recognized for the portion of deferred tax assets that, in management's judgment, is not likely to be realized. A liability for uncertain tax positions is recorded when it is more likely than not that a tax position will not be sustained upon examination by taxing authorities. The effect on deferred income taxes of a change in tax rates or laws is recognized in income tax expense in the period that includes the enactment date. Interest and penalties are classified as other interest expense and are included in selling, general and administrative expense

Note 2. Investment Securities

Note 2. Investment Securities	12 Months Ended
	Dec. 31, 2015
Notes
Note 2. Investment Securities	Note 2. Investment Securities The cost (amortized cost with respect to certain fixed maturities), gross unrealized gains, gross unrealized losses and fair value of investment securities are as follows for the periods indicated (in thousands): December 31, 2015 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 172,621 $ 93 $ (5,868) $ 166,846 CMOs - residential (1) 3,068 2 (14) 3,056 CMOs - commercial 899 296 - 1,195 U.S. Government obligations 44,738 120 (64) 44,794 Agency MBS - residential (2) 34 1 - 35 GSEs (3) 11,814 2 (254) 11,562 States and political subdivisions 194,364 2,159 (1,857) 194,666 Foreign government obligations 2,318 12 (6) 2,324 Redeemable preferred stocks 4,036 101 (14) 4,123 Total fixed maturities $ 433,892 $ 2,786 $ (8,077) $ 428,601 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 4,926 $ - $ (142) $ 4,784 Nonredeemable preferred stocks 3,588 56 (2) 3,642 Total equity securities $ 8,514 $ 56 $ (144) $ 8,426 December 31, 2014 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 264,162 $ 1,076 $ (3,314) $ 261,924 CMOs - residential (1) 5,073 55 (22) 5,106 CMOs - commercial 975 - (22) 953 U.S. Government obligations 22,766 126 - 22,892 Agency MBS - residential (2) 65 4 - 69 GSEs (3) 14,706 36 (86) 14,656 States and political subdivisions 238,514 3,253 (2,386) 239,381 Foreign governments 34,863 136 (299) 34,700 Redeemable preferred stocks 4,036 163 - 4,199 Total fixed maturities $ 585,160 $ 4,849 $ (6,129) $ 583,880 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 8,452 $ 1,452 $ (147) $ 9,757 Nonredeemable preferred stocks 4,004 134 - 4,138 Total equity securities $ 12,456 $ 1,586 $ (147) $ 13,895 (1) Collateralized mortgage obligations (“CMOs”). (2) Mortgage-backed securities (“MBS”). (3) Government-sponsored enterprises (“GSEs’) are private enterprises established and chartered by the Federal Government or its various insurance and lease programs which carry the full faith and credit obligation of the U.S. Government. The amortized cost and fair value of fixed maturities available-for-sale at December 31, 2015, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. CMOs and MBSs are shown separately, as they are not due at a single maturity. AMORTIZED FAIR COST VALUE Due in one year or less $ 3,726 $ 3,726 Due after one year through five years 99,796 99,036 Due after five years through ten years 118,608 117,379 Due after ten years 196,922 193,584 CMOs and MBSs 14,840 14,876 $ 433,892 $ 428,601 The following tables summarize, for all available-for-sale securities in an unrealized loss position, the aggregate fair value and gross unrealized loss by length of time those securities that have continuously been in an unrealized loss position for the periods indicated (in thousands): December 31, 2015 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 101,903 $ 2,559 $ 55,217 $ 3,309 $ 157,120 $ 5,868 CMO’s - residential 2,867 14 - - 2,867 14 U.S. Government obligations 19,809 64 - - 19,809 64 GSEs 6,539 128 4,997 126 11,536 254 States and political subdivisions 68,898 780 31,351 1,077 100,249 1,857 Foreign government obligations 484 6 - - 484 6 Redeemable preferred stocks 3,749 14 - - 3,749 14 Total fixed maturities 204,249 3,565 91,565 4,512 295,814 8,077 Common stocks 4,784 142 - - 4,784 142 Nonredeemable preferred stocks 1,324 2 - - 1,324 2 Total equity securities 6,108 144 - - 6,108 144 Total temporarily impaired securities $ 210,357 $ 3,709 $ 91,565 $ 4,512 $ 301,922 $ 8,221 Number of securities in an unrealized loss position 99 31 130 December 31, 2014 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 77,868 $ 1,473 $ 69,498 $ 1,841 $ 147,366 $ 3,314 CMO’s - residential 2,062 16 1,562 6 3,624 22 CMOs - commercial - - 953 22 953 22 GSEs - - 9,581 86 9,581 86 States and political subdivisions 58,819 744 67,318 1,642 126,137 2,386 Foreign governments 21,148 171 12,229 128 33,377 299 Total fixed maturities 159,897 2,404 161,141 3,725 321,038 6,129 Common stocks 2,007 136 348 11 2,355 147 Total equity securities 2,007 136 348 11 2,355 147 Total temporarily impaired securities $ 161,904 $ 2,540 $ 161,489 $ 3,736 $ 323,393 $ 6,276 Number of securities in an unrealized loss position 70 46 116 Substantially all of the unrealized losses on fixed maturities available-for-sale at December 31, 2015 and December 31, 2014 relate to investment grade securities and are attributable to changes in market interest rates. Because the Company does not intend to sell, nor is it more likely than not that the Company will have to sell such investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2015 . The following table summarizes the Company’s net investment income for the years indicated (in thousands): 2015 2014 2013 Fixed maturities $ 15,364 $ 18,504 $ 22,667 Equity securities 845 943 1,065 Short-term investments 66 74 118 Policy loans 427 813 1,020 Partnership interests 405 1,101 2,506 Other 295 336 291 Investment income, gross 17,402 21,771 27,667 Investment expenses (104) (79) (196) Net investment income $ 17,298 $ 21,692 $ 27,471 The following table summarizes the Company’s net realized investment gains (losses) for the years indicated (in thousands): 2015 2014 2013 Available-for-sale securities: Fixed maturities $ 3,533 $ 7,642 $ 17,664 Common stocks 1,519 (5) - Preferred stocks 151 - 177 Total available-for-sale securities 5,203 7,637 17,841 Trading securities (1,653) 506 1,619 Total realized gains 3,550 8,143 19,460 Unrealized gains (losses) on trading securities: Change in unrealized gains (losses) on trading securities (452) (451) 94 Total unrealized gains (losses) on trading securities (452) (451) 94 Gains (losses) on other investments (4) (4) 196 Net realized investment gains $ 3,094 $ 7,688 $ 19,750 For the years ended December 31, 2015, 2014 and 2013, proceeds from sales of available-for-sale securities were $640,902,000, $355,740,000 and $563,285,000, respectively, and the company realized gross gains of $6,412,000, $9,289,000 and $21,889,000, respectively, and gross losses of $805,000, $741,000 and $2,902,000, respectively, on those sales. We recognize other-than-temporary impairment losses in earnings in the period that we determine: 1) we intend to sell the security; 2) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or 3) the security has a credit loss. Any non-credit portion of the other-than-temporary impairment loss is recognized in other comprehensive income (loss). The Company recognized $228,000 of other-than-temporary impairment losses in earnings on equity securities available-for-sale during the year ended December 31, 2015 due to the length of time and extent an equity security was below cost. The Company did not recognize any other-than-temporary impairments on available-for-sale securities in 2014 or 2013. Credit losses were recognized on certain fixed maturities for which each security also had an impairment loss recognized in other comprehensive income (loss). The rollforward of these credit losses were as follows for the years indicated 2015 2014 2013 Balance at beginning of year $ 473 $ 473 $ 1,976 Securities sold - - (1,503) Balance at end of period $ 473 $ 473 $ 473 The after-tax portion of other-than-temporary impairments included in accumulated other comprehensive income (loss) at December 31, 2015 and 2014 consists of $276,000 and $335,000 , respectively, related to CMO securities.

Note 3. Cash Flow Hedge

Note 3. Cash Flow Hedge	12 Months Ended
	Dec. 31, 2015
Notes
Note 3. Cash Flow Hedge	Note 3. Cash Flow Hedge In connection with its outstanding amortizing term loan, a subsidiary of IHC entered into an interest rate swap on July 1, 2011 with the commercial bank lender, for a notional amount equal to the debt principal amount ($2,000,000 and $4,000,000 December 31, 2015 and December 31, 2014, respectively), under which the Company receives a variable rate equal to the rate on the debt and pays a fixed rate (1.60%) in order to manage the risk in overall changes in cash flows attributable to forecasted interest payments. As a result of the interest rate swap, interest payments on this debt are fixed at 4.95%. There was no hedge ineffectiveness on this interest rate swap which was accounted for as a cash flow hedge. At December 31, 2015 and 2014, the fair value of interest rate swap was $11,000 and $83,000, respectively, which is included in other liabilities on the accompanying Consolidated Balance Sheets. See Note 4 for further discussion on the valuation techniques utilized to determine the fair value of the interest rate swap.

Note 4. Fair Value Disclosures

Note 4. Fair Value Disclosures	12 Months Ended
	Dec. 31, 2015
Notes
Note 4. Fair Value Disclosures	Note 4. Fair Value Disclosures For all financial and non-financial assets and liabilities accounted for at fair value on a recurring basis, the Company utilizes valuation techniques based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market expectations. These two types of inputs create the following fair value hierarchy: Level 1 Level 2 Level 3 The following section describes the valuation methodologies we use to measure different assets and liabilities at fair value. Investments in fixed maturities and equity securities: Available-for-sale securities included in Level 1 are equities with quoted market prices. Level 2 is primarily comprised of our portfolio of government securities, agency mortgage-backed securities, corporate fixed income securities, foreign government obligations, collateralized mortgage obligations, municipals and GSEs that were priced with observable market inputs. Level 3 securities consist primarily of CMO securities backed by commercial mortgages and municipal tax credit strips. For these securities, we use industry-standard pricing methodologies, including discounted cash flow models, whose inputs are based on management’s assumptions and available market information. Significant unobservable inputs used in the fair value measurement of CMO’s are prepayment rates, probability of default, and loss severity in the event of default. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for loss severity and a directionally opposite change in the assumption used for prepayment rates. Further we retain independent pricing vendors to assist in valuing certain instruments. Trading securities: Trading securities included in Level 1 are equity securities with quoted market prices. Interest rate swap: The financial liability included in Level 2 consists of an interest rate swap on IHC debt. It is valued using market observable inputs including market price, interest rate, and volatility within a Black-Scholes model. Contingent liabilities: Contingent liabilities classified in Level 3 include; (i) a contingent liability assumed in connection with an acquisition (see Note 6) related to an earn-out agreement whereby significant unobservable inputs are based on projected income; and (ii) a contingent liability recognized in connection with the deconsolidation of a former subsidiary and a newly formed joint venture transaction (see Note 6) whereby significant unobservable inputs are based on projected cash flows. The following tables present our financial assets and liabilities measured at fair value on a recurring basis for the periods indicated (in thousands): December 31, 2015 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 166,846 $ - $ 166,846 CMOs - residential - 3,056 - 3,056 CMOs - commercial - - 1,195 1,195 US Government obligations - 44,794 - 44,794 Agency MBS - residential - 35 - 35 GSEs - 11,562 - 11,562 States and political subdivisions - 192,487 2,179 194,666 Foreign government obligations - 2,324 - 2,324 Redeemable preferred stocks 4,123 - - 4,123 Total fixed maturities 4,123 421,104 3,374 428,601 Equity securities available-for-sale: Common stocks 4,784 - - 4,784 Nonredeemable preferred stocks 3,642 - - 3,642 Total equity securities 8,426 - - 8,426 Trading securities - equities 1,259 - - 1,259 Total trading securities 1,259 - - 1,259 Total Financial Assets $ 13,808 $ 421,104 $ 3,374 $ 438,286 FINANCIAL LIABILITIES: Interest rate swap $ - $ 11 $ - $ 11 Contingent liabilities - - 1,650 1,650 Total Financial Liabilities $ - $ 11 $ 1,650 $ 1,661 December 31, 2014 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 261,924 $ - $ 261,924 CMOs – residential - 5,106 - 5,106 CMOs – commercial - - 953 953 US Government obligations - 22,892 - 22,892 Agency MBS - residential - 69 - 69 GSEs - 14,656 - 14,656 States and political subdivisions - 237,067 2,314 239,381 Foreign government - 34,700 - 34,700 Redeemable preferred stocks 4,199 - - 4,199 Total fixed maturities 4,199 576,414 3,267 583,880 Equity securities available-for-sale: Common stocks 9,757 - - 9,757 Nonredeemable preferred stocks 4,138 - - 4,138 Total equity securities 13,895 - - 13,895 Trading securities - equities 11,095 - - 11,095 Total trading securities 11,095 - - 11,095 Total Financial Assets $ 29,189 $ 576,414 $ 3,267 $ 608,870 FINANCIAL LIABILITIES: Interest rate swap $ - $ 83 $ - $ 83 Total Financial Liabilities $ - $ 83 $ - $ 83 It is the Company’s policy to recognize transfers of assets and liabilities between levels of the fair value hierarchy at the end of a reporting period. The Company does not transfer out of Level 3 and into Level 2 until such time as observable inputs become available and reliable or the range of available independent prices narrow. The Company did not transfer any securities between Level 1, Level 2 or Level 3 in 2015 or 2014. The following table presents the changes in fair value of our Level 3 financial instruments for the periods indicated (in thousands): Financial Assets: Financial Liabilities States and Total Total CMOs Political Level 3 Contingent Level 3 Commercial Subdivisions Assets Liabilities Liabilities Balance at December 31, 2013 $ 593 $ 2,441 $ 3,034 $ - $ - Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 360 (58) 302 - - Repayments and amortization of fixed maturities - (69) (69) - - Balance at December 31, 2014 953 2,314 3,267 - - Assumed in acquisition - - - 1,000 1,000 Gains (losses) included in earnings: Gain on sale of subsidiary to joint venture - - - 1,501 1,501 Net investment income - - - (736) (736) Other income - - - (115) (115) Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 318 (47) 271 - - Repayments and amortization of fixed maturities (76) (88) (164) - - Balance at December 31, 2015 $ 1,195 $ 2,179 $ 3,374 $ 1,650 $ 1,650 The following table provides carrying values, fair values and classification in the fair value hierarchy of the Company’s financial instruments, that are not carried at fair value but are subject to fair value disclosure requirements, (in thousands): December 31, 2015 December 31, 2014 Level 2 Level 2 Fair Carrying Fair Carrying Value Value Value Value FINANCIAL ASSETS: Policy loans $ 38 $ 38 $ 13,356 $ 10,667 FINANCIAL LIABILITIES: Funds on deposit $ 173,625 $ 173,350 $ 187,213 $ 186,782 Debt and junior subordinated debt securities $ 43,283 $ 43,335 $ 42,146 $ 42,146 The following methods and assumptions were used to estimate the fair value of the financial instruments that are not carried at fair value in the Consolidated Financial Statements: (A) Policy Loans The fair value of policy loans included in Level 2 of the fair value hierarchy is estimated by projecting aggregate loan cash flows to the end of the expected lifetime period of the life insurance business at the average policy loan rates, and discounting them at a current market interest rate. (B) Funds on Deposit The Company has two types of funds on deposit. The first type is credited with a current market interest rate, resulting in a fair value which approximates the carrying amount. The second type carries fixed interest rates which are higher than current market interest rates. The fair value of these deposits was estimated by discounting the payments using current market interest rates. The Company's universal life policies are also credited with current market interest rates, resulting in a fair value which approximates the carrying amount. Both types of funds on deposit are included in Level 2 of the fair value hierarchy. (C) Debt The fair value of debt with fixed and variable interest rates approximates its carrying amount and is included in Level 2 of the fair value hierarchy.

Note 5. Other Investments

Note 5. Other Investments	12 Months Ended
	Dec. 31, 2015
Notes
Note 5. Other Investments	Note 5. Other Investments Other investments consist of the following for the periods indicated (in thousands): December 31, 2015 2014 Policy loans $ 38 $ 10,667 Partnership interests 18,944 12,033 Investment in trust subsidiaries 1,146 1,146 Other 1,410 1,405 $ 21,538 $ 25,251

Note 6. Acquisition and Deconso

Note 6. Acquisition and Deconsolidation of Subsidiaries	12 Months Ended
	Dec. 31, 2015
Notes
Note 6. Acquisition and Deconsolidation of Subsidiaries	Note 6. Acquisition and Deconsolidation of Subsidiaries Acquisition On April 30, 2015 (the "Acquisition Date"), through a settlement with a former owner, AMIC increased its ownership in Global Accident Facilities, LLC (“GAF) from 40% to 80% , in order to obtain control of the business it produces for Independence American. GAF and its subsidiaries are principally engaged in the marketing, underwriting and administration of specialty risk insurance, referred to as Occupational Accident and Injury on Duty for Independence American, which are offered exclusively in Texas and Massachusetts, respectively. The consideration transferred in exchange for the additional 40% voting interest consisted of: (i) $325,000 in cash; and (ii) non-monetary consideration, primarily consisting of the settlement of a pre-existing relationship with a former owner, with a fair value of $1,195,000 at the Acquisition Date. The fair value of the settlement of the pre-exiting relationship was based on projected future underwriting results discounted for collectability. The acquisition resulted in AMIC obtaining control of GAF. Immediately preceding the transaction, AMIC’s carrying value of its investment in GAF was $1,908,000 . As a result of AMIC obtaining control, the Company has included GAF’s consolidated assets and liabilities and results of operations, subsequent to the Acquisition Date, in its consolidated financial results as of and for the periods ended December 31, 2015. Accordingly, the individual line items on the Consolidated Statements of Income for 2015 reflect approximately eight months of the operations of GAF with no corresponding amounts for 2014. On the Acquisition Date, the Company recognized a net pre-tax gain of $503,000 as follows: (i) a loss of $692,000 was recognized by AMIC as a result of re-measuring its equity interest in GAF to its fair value of $1,216,000 immediately before the acquisition; and (ii) a gain of $1,195,000 was recognized by AMIC as a result of settling the pre-existing relationship with the former owner. The net pre-tax gain of $503,000 is included in the “Other income” line in the Consolidated Statements of Income. Upon the acquisition of a controlling interest, the Company consolidated the assets and liabilities of GAF. Accordingly, the Company determined the fair value of the identifiable assets acquired and liabilities assumed from GAF on the Acquisition Date. The following table presents the identifiable assets acquired and liabilities assumed in the acquisition of GAF on the Acquisition Date based on their respective fair values (in thousands): Cash $ 836 Intangible assets 5,500 Other assets 1,405 Total identifiable assets 7,741 Other liabilities 4,369 Deferred tax liability 1,925 Debt 3,806 Total liabilities 10,100 Net identifiable liabilities assumed $ 2,359 Other liabilities assumed includes a $1,000,000 contingent liability recorded in connection with an earn-out agreement with a former owner of a subsidiary of GAF. In accordance with this agreement, payments are required in 2016 and 2019 based on certain earnings targets. The fair value of the contingent liability was estimated based on projected income. See Note 4 for further information regarding fair value measurements. In connection with the acquisition, the Company recorded $5,703,000 of goodwill and $5,500,000 of intangible assets (see Note 7). None of the goodwill is deductible for income tax purposes. Goodwill reflects the synergies between GAF and Independence American as GAF is the primary writer of Occupational Accident and Injury on Duty business for Independence American. Goodwill was calculated as the excess of the sum of: (i) the acquisition date fair value of total consideration transferred of $1,520,000 ; (ii) the acquisition date fair value of the equity interest in GAF immediately preceding the acquisition of $1,216,000 ; and (iii) the fair value of the noncontrolling interest in GAF of $608,000 on the acquisition date; over (iv) the net liabilities of $2,359,000 that were assumed. The enterprise value of GAF was determined by an independent appraisal using a discounted cash flow model based upon the projected future earnings of GAF including a control premium. The fair value of the non-controlling interest was determined based upon their percentage of the GAF enterprise value discounted for a lack of control. For the period from the Acquisition Date to December 31, 2015, the Company’s Consolidated Statement of Income includes revenues and net income of $6,954,000 and $607,000 , respectively, from GAF. Deconsolidation A) IHC Health Solutions Effective September 1, 2015, IHC and Ebix, a non-related party and international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, finalized a joint venture in which IHC sold its wholly owned administrative subsidiary, IHC Health Solutions (now known as Ebix Health Administration Exchange, Inc.), in exchange for a 60% ownership interest in Ebix Health Exchange and $6,000,000 in cash proceeds. Ebix contributed $6,000,000 of cash and a pet insurance software license, valued by Ebix Health Exchange at $2,000,000 , for its 40% . IHC is obligated to fund any negative cash flow through December 31, 2016 in the form of a loan to the joint venture. Any remaining balance of the loan at December 31, 2016 will be converted to capital. Ebix has the option to increase its ownership position to 50% over the next three years. IHC and Ebix have equal voting interest on the Board of Managers of Ebix Health Exchange. The transaction resulted in a loss of control over the subsidiary (due to a lack of the majority of the voting interest on the Board of Managers) and therefore the subsidiary was deconsolidated from the Company’s financial statements. The Company recognized a gain of $9,940,000 , pre-tax, on the transaction consisting of: (i) a pre-tax gain on the deconsolidation of $11,441,000 , measured as the fair value of the consideration received and the fair value of the retained investment in Ebix Health Exchange less the carrying amount of the former subsidiary’s net assets; partially offset by (ii) a contingent liability of $1,501,000 representing the Company’s estimated obligation to fund future cash operating losses through December 31, 2016 per the terms of the joint venture agreement. The fair value of the contingent liability was estimated based on expected future operating cash shortfalls. Approximately $5,441,000 of the pre-tax gain is attributable to the re-measurement of the retained investment in the former subsidiary to its current value. The fair value of the retained investment was determined by an independent appraisal using a discounted cash flow model based upon the projected future earnings. Ebix Health Exchange will administer various lines of health insurance for IHC’s insurance subsidiaries. The carrying value of the Company’s equity investment in Ebix Health Exchange amounted to $9,838,000 at December 31, 2015. Ebix Health Exchange reported a net loss of $1,007,000 for the period ended December 31, 2015. The Company recorded $271,000 of the loss in earnings and reduced the contingent liability, previously recognized on the acquisition date, by $736,000 of cash operating losses for the period. At December 31, 2015, the Company’s Consolidated Balance Sheet includes $1,397,000 of notes and other amounts receivable from, and $405,000 of administrative fees and other expenses payable to, Ebix Health Exchange which are included in other assets and accounts payable, accruals and other liabilities, respectively. The Company’s Consolidated Statements of Income include $80,000 in fee income from, and $1,477,000 of administrative fee expenses to, Ebix Health Exchange which are included in fee income and selling, general and administrative expenses, respectively, for the year ended December 31, 2015. B) Innovative Medical Risk Management, Inc. On December 31, 2015, the Company sold all of the stock of its wholly owned subsidiary, Innovative Medical Risk Management, Inc. (“IMRM”), to an unrelated party for $1,084,000 cash consideration. Upon the sale, IMRM was deconsolidated from the Company’s financial statements. The Company recognized a gain of $679,000 on the transaction, pre-tax, which is included in Other Income on the Consolidated Statement of Income. The gain was measured as the difference between the fair value of the consideration received and the carrying amount of the former subsidiary’s assets and liabilities. The sale transaction also included an earn-out agreement with the new owners of IMRM. In accordance with this agreement, the Company could receive additional consideration in the future based on certain earnings thresholds in 2016 and 2017. Other than the settlement of the aforementioned earn-out agreement, there will be no further involvement with IMRM.

Note 7. Goodwill and Other Inta

Note 7. Goodwill and Other Intangible Assets	12 Months Ended
	Dec. 31, 2015
Notes
Note 7. Goodwill and Other Intangible Assets	Note 7. Goodwill and Other Intangible Assets Changes in goodwill and goodwill balances by reportable segment are as follows for the periods indicated (in thousands): Medical Fully-Insured Stop-Loss Health Total Balance at December 31, 2013 $ 5,664 $ 44,654 $ 50,318 Acquisition - - - Balance at December 31, 2014 5,664 44,654 50,318 Acquisition (see Note 6) - 5,703 5,703 Sale of subsidiary/business (see Note 6) - (3,081) (3,081) Balance at December 31, 2015 $ 5,664 $ 47,276 $ 52,940 At December 31, 2015, the Company’s market capitalization was less than its book value indicating a potential impairment of goodwill. As a result, the Company assessed the factors contributing to the performance of IHC stock in 2015, and concluded that the market capitalization does not represent the fair value of the Company. The Company noted several factors that have led to a difference between the market capitalization and the fair value of the Company, including (i) the Company’s stock is thinly traded and a sale of even a small number of shares can have a large percentage impact on the price of the stock, (ii) Geneve Corporation and insiders own approximately 57% of the outstanding shares, which has had a significant adverse impact on the number of shares available for sale and therefore the trading potential of IHC stock, and (iii) lack of analyst coverage of the Company. If we experience a sustained decline in our results of operations and cash flows, or other indicators of impairment exist, we may incur a material non-cash charge to earnings relating to impairment of our goodwill, which could have a material adverse effect on our results. The Company has net other intangible assets of $15,517,000 and $12,135,000 at December 31, 2015 and 2014, respectively, which are included in other assets in the Consolidated Balance Sheets. These intangible assets consist of: (i) finite-lived intangible assets, principally the fair value of acquired agent and broker relationships, which are subject to amortization; and (ii) indefinite-lived intangible assets which consist of the estimated fair value of insurance licenses that are not subject to amortization. The gross carrying amounts of these other intangible assets are as follows for the periods indicated (in thousands): December 31, 2015 December 31, 2014 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Finite-lived Intangible Assets: Agent and broker relationships $ 23,529 $ 16,906 $ 22,725 $ 18,567 Trademarks 1,000 83 - - Total finite-lived $ 24,529 $ 16,989 $ 22,725 $ 18,567 December 31, 2015 2014 Indefinite-lived Intangible Assets: Insurance licenses $ 7,977 $ 7,977 Total indefinite-lived $ 7,977 $ 7,977 Changes in net other intangible assets are as follows for the periods indicated (in thousands): 2015 2014 2013 Balance at beginning of year $ 12,135 $ 14,767 $ 18,271 Acquisitions 5,500 - (183) Sale of subsidiaries/businesses (122) - (101) Amortization expense (1,996) (2,632) (3,220) Balance at end of year $ 15,517 $ 12,135 $ 14,767 As discussed in Note 6, the Company recorded $5,500,000 of intangible assets in connection with the acquisition of a controlling interest in GAF during 2015 and, of that amount, $1,000,000 represents the fair value of trademarks, which is being amortized over a period of 8 years, and $4,500,000 represents the fair value of customer relationships being amortized over a period of 9 years. As a result of the deconsolidation of certain subsidiaries discussed in Note 6, net intangible assets associated with the Fully Insured Health segment decreased by $122,000. Estimated amortization expense for each of the next five years is as follows (in thousands): Amortization Year Expense 2016 $ 1,925 2017 1,551 2018 1,210 2019 849 2020 622

Note 8. Reinsurance

Note 8. Reinsurance	12 Months Ended
	Dec. 31, 2015
Notes
Note 8. Reinsurance	Note 8. Reinsurance The Insurance Group reinsures portions of certain business in order to limit the assumption of disproportionate risks. Amounts not retained are ceded to other companies on an automatic or facultative basis. In addition, the Insurance Group participates in various coinsurance treaties on a quota share or excess basis. The Company is contingently liable with respect to reinsurance in the unlikely event that the assuming reinsurers are unable to meet their obligations. The ceding of reinsurance does not discharge the primary liability of the original insurer to the insured. The effects of reinsurance on premiums earned and insurance benefits, claims and reserves are shown below for the periods indicated (in thousands). Accident and health products and property and liability products (primarily the pet insurance line) consist of short-duration contracts. Life and annuity products consist of long-duration contracts. ASSUMED CEDED GROSS FROM OTHER TO OTHER NET AMOUNT COMPANIES COMPANIES AMOUNT Premiums Earned December 31, 2015 Accident and health $ 513,814 $ 28,822 $ 126,613 $ 416,023 Life and annuity 46,699 4,330 23,078 27,951 Property and liability 35,812 - 252 35,560 $ 596,325 $ 33,152 $ 149,943 $ 479,534 December 31, 2014 Accident and health $ 482,511 $ 52,063 $ 116,163 $ 418,411 Life and annuity 44,407 6,128 20,214 30,321 Property and liability 30,477 - 161 30,316 $ 557,395 $ 58,191 $ 136,538 $ 479,048 December 31, 2013 Accident and health $ 461,336 $ 85,627 $ 102,053 $ 444,910 Life and annuity 46,416 6,654 20,820 32,250 Property and liability 18,845 - 14 18,831 $ 526,597 $ 92,281 $ 122,887 $ 495,991 Insurance benefits, claims and reserves December 31, 2015 $ 365,634 $ 24,956 $ 83,412 $ 307,178 December 31, 2014 $ 276,634 $ 50,441 $ 1,040 $ 326,035 December 31, 2013 $ 374,865 $ 82,337 $ 102,412 $ 354,790 On July 31, 2015, Madison National Life and Standard Security Life together entered into a coinsurance and sale agreement with an unaffiliated reinsurer, National Guardian Life Insurance Company (“NGL”), to: (i) cede substantially all of their individual life and annuity policy blocks currently in run-off; and (ii) sell the related infrastructure associated with the administration of such policies. The Company transferred $207,964,000 of cash to NGL, net of the aggregate consideration of $42,000,000 for the coinsurance and sale transaction. As a result of this transaction, the Company: (i) recorded $234,740,000 of estimated amounts due from reinsurers; (ii) recorded a $31,192,000 decrease in deferred acquisition costs associated with the ceded policies; (iii) recorded a $9,866,000 decrease in policy loans; (iv) recorded $7,686,000 of estimated costs of reinsurance (included in other assets) which will be amortized over the life of the underlying reinsured contracts; and (v) recognized a $5,053,000 pre-tax gain (included in other income) on the sale of the assets associated with the administration of the ceded policies, net of disposal costs. Effective May 31, 2013, Madison National Life entered into a coinsurance agreement with an unaffiliated reinsurer, Guggenheim Life and Annuity Company, to cede approximately $218,633,000 of life and annuity reserves and, in accordance with its terms, transferred net cash and other assets, with an aggregate value of $215,137,000 , to the reinsurer during the second quarter of 2013. As a result of this transaction, the Company: (i) recorded estimated amounts due from reinsurers of $218,296,000 ; (ii) recorded $6,643,000 of estimated deferred expenses (included in other assets) which will be amortized over the life of the underlying reinsured contracts; and (iii) wrote-off $9,307,000 of deferred acquisition costs associated with this block of policies. The write-off was more than offset by gains realized by the Company in the transaction, most of which resulted from the required sale and transfer of invested assets. During 2014, a large portion of the reserves were transferred to the reinsurer in accordance with the terms of an assumption agreement.

Note 9. Policy Benefits and Cla

Note 9. Policy Benefits and Claims	12 Months Ended
	Dec. 31, 2015
Notes
Note 9. Policy Benefits and Claims	Note 9. Policy Benefits and Claims Summarized below are the changes in the liability for policy benefits and claims for the periods indicated (in thousands). 2015 2014 2013 Balance at beginning of year $ 236,803 $ 237,754 $ 194,480 Less: reinsurance recoverable 78,531 72,772 78,629 Net balance at beginning of year 158,272 164,982 115,851 Amount assumed 10,343 - 15,384 Amount incurred, related to: Current year 294,390 303,973 324,040 Prior years (8,488) (4,552) (3,230) Total incurred 285,902 299,421 320,810 Amount paid, related to: Current year 169,488 192,001 207,315 Prior years 104,948 114,130 79,748 Total paid 274,436 306,131 287,063 Net balance at end of year 180,081 158,272 164,982 Plus: reinsurance recoverable 65,362 78,531 72,772 Balance at end of year $ 245,443 $ 236,803 $ 237,754 The preceding schedule reflects: (i) the due and unpaid; (ii) claims in the course of settlement; (iii) estimated incurred but not reported reserves; and (iv) the present value of amounts not yet due on claims. The incurred and paid data above reflects all activity for the year. The overall net favorable development of $8,488,000 in 2015 related to prior years consists of favorable developments of $7,977,000 in the Fully Insured Health reserves and $4,464,000 in the group disability reserves, partially offset by an unfavorable development of $3,628,000 in Medical Stop-Loss reserves and $325,000 in other individual accident and health reserves. The overall net favorable development of $4,552,000 in 2014 related to prior years consists of favorable developments of $3,830,000 in the group disability reserves, $448,000 in other individual accident and health reserves and $378,000 in the Fully Insured Health reserves partially offset by an unfavorable development of $104,000 in Medical Stop-Loss reserves. The overall net favorable development of $3,230,000 in 2013 related to prior years consists of favorable developments of $4,269,000 in the group disability reserves and $1,069,000 in other individual accident and health reserves partially offset by an unfavorable developments of $2,000,000 in Medical Stop-Loss reserves and $108,000 in the Fully Insured Health reserves. These changes in reserve estimates are generally the result of on-going analysis of recent loss development trends. Medical stop-loss business is excess coverage with a short duration. Predicting ultimate claims and estimating reserves in medical stop-loss is especially complicated due to the “excess of loss” nature of these products with very high deductibles applying to specific claims on any individual claimant and in the aggregate for a given group. Fluctuations in results for specific coverage are primarily due to the severity and frequency of individual claims. Due to the short-term nature of medical stop-loss, redundancies and deficiencies will typically emerge during the following year rather than over a number of years.

Note 10. Debt and Junior Subord

Note 10. Debt and Junior Subordinated Debt Securities	12 Months Ended
	Dec. 31, 2015
Notes
Note 10. Debt and Junior Subordinated Debt Securities	Note 10. Debt and Junior Subordinated Debt Securities (A) Debt Outstanding debt, for the periods indicated, consists of the following (in thousands): December 31, 2015 2014 Term loan payable to bank $ 2,000 $ 4,000 Other term loans 2,964 - Line of credit 225 - $ 5,189 $ 4,000 In July 2011, a subsidiary of IHC amended its amortizing term loan with a commercial bank. The amortizing term loan, as amended: (i) matures on July 1, 2016; (ii) bears a variable interest rate of Libor plus 3.35%; and (iii) requires annual principal payments of $2,000,000. The Company simultaneously entered into an interest rate swap with the commercial bank lender effectively fixing the rate at 4.95%. See Note 3 for further discussion pertaining to the interest rate swap. As to such subsidiary, the line of credit (i) contains restrictions with respect to, among other things, the creation of additional indebtedness, the consolidation or merger with or into certain corporations, the payment of dividends and the retirement of capital stock; (ii) requires the maintenance of minimum amounts of net worth, as defined, certain financial ratios, and certain investment restrictions; and (iii) is secured by the stock of Madison National Life, Standard Security Life and the assets of such subsidiary of IHC. In connection with the acquisition of a controlling interest in GAF, as discussed in Note 6, the Company assumed $3,806,000 of GAF’s debt in April, 2015. This debt was comprised of: (i) various term loans with former owners of a subsidiary of GAF, aggregating $3,506,000 , with various maturities through and bearing a fixed interest rate of 2.5% ; and (ii) a $300,000 line of credit with a commercial bank bearing interest at 4% . The Company made aggregate cash payments of $2,617,000 and $2,000,000 for the repayment of debt during the years ended December 31, 2015 and 2014, respectively. (B) Junior Subordinated Debt Issued to Trust Preferred Subsidiaries Junior subordinated debt consisted of the following at both December 31, 2015 and 2014 (in thousands): Independence Preferred Trust I - Trust Preferred $ 10,000 Independence Preferred Trust I - Common Stock 310 Junior subordinated debt security -Trust I 10,310 Independence Preferred Trust II -Trust Preferred 12,000 Independence Preferred Trust II - Common Stock 372 Junior subordinated debt security - Trust II 12,372 Independence Preferred Trust III – Trust Preferred 15,000 Independence Preferred Trust III – Common Stock 464 Junior subordinated debt security – Trust III 15,464 Total junior subordinated debt securities $ 38,146 The Company has three statutory business trusts that were formed for the purpose of issuing trust preferred securities, totaling $37,000,000, to institutional investors in pooled issuances. Although the Company owns all of the trusts' common securities, it is not the primary beneficiary and, therefore, the trusts are unconsolidated subsidiaries for financial reporting purposes. As a result, the Company recorded liabilities of $38,146,000 for junior subordinated debt and assets of $1,146,000 for the investments in trust subsidiaries (included in other investments on the accompanying Consolidated Balance Sheets) at both December 31, 2015 and 2014. The Company's subordinated debt securities, which are the sole assets of the subsidiary trusts, are unsecured obligations of the Company and are subordinate and junior in right of payment to all present and future senior indebtedness of the Company. The Company has provided a full and unconditional guarantee of amounts due on the trust preferred securities. The terms of the junior subordinated debt securities, including interest rates and maturities, are the same as the related trust preferred securities. The distributions payable on the capital securities are cumulative and payable quarterly in arrears. The Company has the right, subject to events of default, to defer payments of interest for a period not to exceed 20 consecutive quarters, provided that no extension period may extend beyond the maturity dates which range from April 2033 to December 2034. The Company has no current intention to exercise its right to defer interest payments. The rates on the capital securities are as follows: Independence Preferred Trust I, 400 basis points over the three-month LIBOR, (4.32% at December 31, 2015); Independence Preferred Trust II, 390 basis points over the three-month LIBOR, (4.22% at December 31, 2015); and Independence Preferred Trust III, 350 basis points over the three-month LIBOR (4.01% at December 31, 2015). The capital securities are mandatorily redeemable upon maturity. The Company has the right to redeem the capital securities, in whole or in part without penalties with respect to Independence Preferred Trust I, Independence Preferred Trust II and Independence Preferred Trust III. The redemption price would be 100% (without penalty) of the principal amount plus accrued and unpaid interest. Cash payments for interest on debt and junior subordinated debt securities were $1,738,000, $1,804,000 and $1,923,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

Note 11. Income Taxes

Note 11. Income Taxes	12 Months Ended
	Dec. 31, 2015
Notes
Note 11. Income Taxes	Note 11. Income Taxes IHC and its subsidiaries file a consolidated Federal income tax return on a June 30 fiscal year. Prior to January 15, 2013, AMIC and its subsidiaries filed a separate consolidated Federal income tax return on a September 30 fiscal year. The provision for income tax expense (benefit) attributable to income from operations, as shown in the Consolidated Statements of Income, is as follows for the years indicated (in thousands): 2015 2014 2013 CURRENT: U.S. Federal $ 14,415 $ 20 $ (1,500) State and Local 1,012 743 1,206 15,427 763 (294) DEFERRED: U.S. Federal 2,119 5,317 8,805 State and Local 120 311 (113) 2,239 5,628 8,692 $ 17,666 $ 6,391 $ 8,398 Taxes computed at the Federal statutory rate of 35% in 2015, 2014 and 2013, attributable to pretax income, are reconciled to the Company's actual income tax expense as follows for the years indicated (in thousands): 2015 2014 2013 Tax computed at the statutory rate $ 16,866 $ 8,159 $ 8,279 Dividends received deduction and tax exempt interest (796) (1,384) (849) State and local income taxes, net of Federal effect 735 685 710 Health insurance excise tax 526 696 - Health insurer compensation limit 516 661 - AMIC valuation allowance adjustment - (2,500) - Other, net (181) 74 258 Income tax expense $ 17,666 $ 6,391 $ 8,398 Temporary differences between the Consolidated Financial Statement carrying amounts and tax bases of assets and liabilities that give rise to the deferred tax assets and liabilities at December 31, 2015 and 2014 are summarized below (in thousands). The net deferred tax asset or liability is included in Other Assets or Other Liabilities, as appropriate, in the Consolidated Balance Sheets. IHC and its subsidiaries, excluding AMIC, have certain tax-planning strategies that were used in determining that a valuation allowance was not necessary on its deferred tax assets at December 31, 2015 or 2014. The net deferred tax asset relative to AMIC included in other assets on IHC’s Consolidated Balance Sheets at December 31, 2015 and 2014 was $16,215,000 and $20,027,000, respectively. 2015 2014 DEFERRED TAX ASSETS: Deferred insurance policy acquisition costs $ - $ 754 Unrealized losses on investment securities 1,935 - Investment write-downs 205 165 Loss carryforwards 91,558 102,478 Insurance reserves 461 366 Other 5,614 7,126 Total gross deferred tax assets 99,773 110,889 Less AMIC valuation allowance (74,087) (74,087) Net deferred tax assets 25,686 36,802 DEFERRED TAX LIABILITIES: Deferred insurance policy acquisition costs (111) (10,712) Insurance reserves (4,180) (6,856) Unrealized gains on investment securities - (78) Goodwill and intangible assets (6,175) (2,315) Other (3,968) (2,864) Total gross deferred tax liabilities (14,434) (22,825) Net deferred tax asset $ 11,252 $ 13,977 As of December 31, 2015, IHC and its non-life subsidiaries, excluding AMIC, had NOL carryforwards arising from limitations on offsetting non-life insurance company losses against life insurance company income. The non-life insurance company Federal NOL carryforwards amount to approximately $3,533,000 at December 31, 2015, which expire in 2032. At December 31, 2015, AMIC had Federal NOL carryforwards of approximately $258,061,000, which expire in varying amounts through the year 2028, with a significant portion expiring in 2020. AMIC’s valuation allowance at December 31, 2015 and 2014 was primarily related to net operating loss carryforwards that, in the judgment of management, were not considered realizable prior to the effects of the subsequent sale and coinsurance transaction more fully described in Note 19 for subsequent events. During the year ended December 31, 2014, AMIC decreased its valuation allowance by $3,062,000. The valuation allowance decrease in the year ended December 31, 2014 included $2,500,000 for the projected utilization of Federal net operating losses allocated to operations. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Management believes that it is more likely than not that IHC and its subsidiaries, and AMIC, will realize the benefits of these net deferred tax assets recorded at December 31, 2015. As of December 31, 2015, IHC and its subsidiaries, and AMIC, believe there were no material uncertain tax positions that would require disclosure under U.S. GAAP. It is anticipated that there will be a significant utilization of AMIC’s Federal NOL carryforwards in 2016, and a corresponding adjustment to AMIC’s valuation allowance, in connection with a sale and coinsurance transaction more fully described in Note 19 for subsequent events. Interest expense and penalties for the years ended December 31, 2015, 2014 and 2013 are insignificant. Tax years ending June 30, 2012 and forward are subject to examination by the Internal Revenue Service. Net cash payments (receipts) for income taxes were $10,974,000, $(2,448,000) and $(387,000) in 2015, 2014 and 2013, respectively.

Note 12. Stockholders' Equity

Note 12. Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Notes
Note 12. Stockholders' Equity	Note 12. Stockholders’ Equity Preferred Stock IHC has 100,000 authorized shares of preferred stock, par value $1.00 per share, none of which was issued as of December 31, 2015 and 2014. Treasury Stock In 1991, IHC initiated a program of repurchasing shares of its common stock. In August 2014, the Board of Directors authorized the repurchase of up to 500,000 shares of IHC’s common stock, in addition to prior authorizations, under the 1991 plan. The Company has repurchased 143,307, 296,775 and 334,305 shares in 2015, 2014 and 2013, respectively. All of the shares repurchased have been either retired, reissued, or have become treasury shares. At December 31, 2015, there were 324,911 shares still authorized to be repurchased under the plan authorized by the Board of Directors. Accumulated Other Comprehensive Income (Loss) The components of other comprehensive income (loss) include (i) the after-tax net unrealized gains and losses on investment securities available-for-sale, including the subsequent increases and decreases in fair value of available-for-sale securities previously impaired and the non-credit related component of other-than-temporary impairments of fixed maturities and (ii) the after-tax unrealized gains and losses on a cash flow hedge. Changes in the balances for each component of accumulated other comprehensive income (loss), shown net of taxes, for the years indicated were as follows (in thousands): Unrealized Gains (Losses) on Available-for Sale Cash Flow Securities Hedge Total Balance at December 31, 2012 $ 15,231 $ (218) $ 15,013 Other comprehensive income (loss) before reclassifications (14,361) 96 (14,265) Amounts reclassified from accumulated OCI (11,826) - (11,826) Net other comprehensive income (loss) (26,187) 96 (26,091) Less: Other comprehensive income attributable to noncontrolling interests 665 - 665 Acquired from noncontrolling interests (59) - (59) Balance at December 31, 2013 (10,350) (122) (10,472) Other comprehensive income (loss) before reclassifications 15,872 72 15,944 Amounts reclassified from accumulated OCI (5,251) - (5,251) Net other comprehensive income (loss) 10,621 72 10,693 Less: Other comprehensive loss attributable to noncontrolling interests (199) - (199) Balance at December 31, 2014 72 (50) 22 Other comprehensive income (loss) before reclassifications (299) 43 (256) Amounts reclassified from accumulated OCI (3,206) - (3,206) Net other comprehensive income (loss) (3,505) 43 (3,462) Less: Other comprehensive loss attributable to noncontrolling interests (5) - (5) Acquired from noncontrolling interests 5 5 Balance at December 31, 2015 $ (3,433) $ (7) $ (3,440) Presented below are the amounts reclassified out of accumulated other comprehensive income (loss) and recognized in earnings for each of the years indicated (in thousands): 2015 2014 2013 Unrealized gains (losses) on available-for-sale securities reclassified during the period to the following income statement line items: Net realized investment gains $ 5,202 $ 7,637 $ 17,841 Net impairment losses recognized in earnings (228) - - Income before income tax 4,974 7,637 17,841 Tax effect 1,768 2,386 6,015 Net income $ 3,206 $ 5,251 $ 11,826

Note 13. Share-based Compensati

Note 13. Share-based Compensation	12 Months Ended
	Dec. 31, 2015
Notes
Note 13. Share-based Compensation	Note 13. Share-Based Compensation IHC and AMIC each have a share-based compensation plan. The following is a summary of the activity pertaining to each of these plans. C) IHC Share-Based Compensation Plan In June 2006, the stockholders approved the Independence Holding Company 2006 Stock Incentive Plan (the “2006 Plan"). Under the terms of the 2006 Plan, option exercise prices are more than or equal to the quoted market price of the shares at the date of grant; option terms are generally five years; and vesting periods are generally three years. The fair value of an option award is estimated on the date of grant using the Black-Scholes option valuation model. In addition to stock options, the Company has also granted restricted stock units, share appreciation rights (“SARs”) and share-based performance awards under the 2006 Plan. Restricted share units are valued at the quoted market price of the shares at the date of grant and have a three year vesting period. Compensation costs for options and restricted share units are recognized over the stated vesting periods on a straight-line basis. Exercise prices of SARs are more than or equal to the quoted market price of IHC shares at the date of the grant and have three year vesting periods. The fair value of SARs is calculated using the Black-Scholes valuation model at the grant date and each subsequent reporting period until settlement. Compensation cost is based on the proportionate amount of the requisite service that has been rendered to date. Once fully vested, changes in fair value of the SARs continue to be recognized as compensation expense in the period of the change until settlement. Compensation costs for share-based performance awards are recognized and accrued as performance conditions are met, based on the current share price. IHC discontinued these award programs in 2013. At December 31, 2015 2015 2014 2013 IHC’s Share-based Compensation Plan: Stock options $ 55 $ 669 $ 210 Restricted stock units 89 85 66 SARs 13 14 698 Performance awards - - (15) Share-based compensation expense, pre-tax 157 768 959 Tax benefits 63 306 382 Share-based compensation expense, net $ 94 $ 462 $ 577 Stock Options The Company’s stock option activity during 2015 was as follows: Shares Weighted- Average Under Option Exercise Price December 31, 2014 614,680 $ 9.33 Exercised (30,600) 9.09 December 31, 2015 584,080 $ 9.35 No options were granted in 2015, 2014 or 2013. In 2015, IHC received $278,000 in cash from the exercise of stock options with an aggregate intrinsic value of $132,000 and realized $22,000 of tax benefits. In May 2014, option agreements affecting 15 employees were modified to extend the expirations of their terms from 2015 to 2017 and as a result, the Company recorded incremental compensation costs of $405,000. In 2013, the Company received $430,000 in cash from the exercise of stock options with an aggregate intrinsic value of $243,000 and realized $85,000 of tax benefits. In March 2013, option agreements affecting 5 employees were modified to extend the expiration term 5 years. The incremental cost of the modified awards was $618,000, which was recognized over the new 2-year vesting period starting from the date of the modification. The following table summarizes information regarding outstanding and exercisable options: December 31, 2015 Outstanding Exercisable Number of options 584,080 584,080 Weighted average exercise price per share $ 9.35 $ 9.35 Aggregate intrinsic value for all options (in thousands) $ 2,631 $ 2,631 Weighted average contractual term remaining 1.3 years 1.3 years At December 31, 2015, all of IHC’s outstanding stock options are fully vested and all of the related compensation costs have been recognized. Restricted Stock The following table summarizes IHC’s restricted stock activity for the year ended December 31, 2015: No. of Weighted-Average Non-vested Grant-Date Shares Fair Value December 31, 2014 14,850 $ 12.09 Granted 7,425 11.78 Vested (7,425) 11.44 December 31, 2015 14,850 $ 12.26 IHC granted 7,425 restricted stock units during each of the years ended December 31, 2015, 2014 and 2013, with weighted-average grant-date fair values of $11.78, $13.27 and $11.66 per share, respectively. The total fair value of restricted stock that vested in 2015, 2014 and 2013 was $89,000, $103,000 and $69,000, respectively. At December 31, 2015, the total unrecognized compensation cost related to non-vested restricted stock awards was $129,000 which is expected to be recognized as compensation expense over a weighted average period of 1.7 years. SARs and Share-Based Performance Awards IHC had 125,850 and 136,850 SAR awards outstanding at December 31, 2015 and 2014, respectively. During 2015, 11,000 SARs were exercised with an aggregate intrinsic value of $61,000 . During 2014, 112,200 SARs were exercised with an aggregate intrinsic value of $529,000 ; and 2,750 SARs were forfeited. During 2013, 14,850 SARs were exercised with an aggregate intrinsic value of $74,000 ; and 3,300 SARs were forfeited. Included in Other Liabilities in the Company’s Consolidated Balance Sheets at December 31, 2015 and December 31, 2014 are liabilities of $743,000 and $791,000 , respectively, pertaining to SARs. In the past, other share-based compensation awards have included performance awards. These programs were discontinued in 2013. The intrinsic value of share-based performance awards paid during the year ended December 31, 2013 was $83,000 . B) AMIC Share-Based Compensation Plans Effective July 1, 2009, AMIC implemented the 2009 Stock Incentive Plan (“AMIC 2009 Plan”), which the AMIC stockholders approved on June 19, 2009. The AMIC 2009 Plan was preceded by the 1998 Stock Incentive Plan which expired by its terms in 2008. The AMIC 2009 Plan provided for the grants of non-statutory and incentive stock options, stock appreciation rights, restricted stock awards, performance shares, and other awards to officers, employee and other individuals. Under the terms of the AMIC 2009 Plan, stock options have a maximum term of ten years from the date of grant, and have various vesting criteria depending on the grant with most grants vesting ratably over four years. At December 31, 2015, stock options for 71,558 common stock shares were outstanding, stock options for 62,669 common stock shares were vested, and 6,490,553 common stock shares that had not been issued remained available for future stock options grants and other awards. Awards made under AMIC’s 1998 Plan prior to its expiration are still in effect. The following table summarizes share-based compensation expense, which is included in selling, general and administrative expenses on the Consolidated Statements of Income, applicable to the AMIC share-based compensation plans, by award type for each of the years indicated (in thousands): 2015 2014 2013 AMIC’s Share-based Compensation Plans: Stock options $ 43 $ 52 $ 42 Share-based compensation expense, pre-tax 43 52 42 Tax benefits 15 18 15 Share-based compensation expense, net $ 28 $ 34 $ 27 Stock Options AMIC’s stock option activity during 2015 was as follows: Shares Weighted- Average Under Option Exercise Price December 31, 2014 166,616 $ 10.50 Exercised (8,890) 5.81 Forfeited (26,001) 8.90 Expired (60,167) 13.82 December 31, 2015 71,558 $ 8.88 The following table summarizes information regarding AMIC’s outstanding and exercisable options: December 31, 2015 Outstanding Exercisable Number of options 71,558 62,669 Weighted average exercise price per share $ 8.88 $ 8.74 Aggregate intrinsic value for all options (in thousands) $ 73 $ 70 Weighted average contractual term remaining 4.19 years 3.63 years The fair value of an option award is estimated on the date of grant using the Black-Scholes option valuation model. No options were granted in 2015. The weighted average grant-date fair-value of options granted during the years ended December 31, 2014 and 2013 was $5.70 and $4.04. The assumptions set forth in the table below were used to value the stock options granted during the periods: 2014 2013 Weighted-average risk-free interest rate 2.72% 2.30% Annual dividend rate per share - - Weighted-average volatility factor of the Company's common stock 38.27% 45.00% Weighted-average expected term of options 5 years 5 years During 2015 and 2014, AMIC received $52,000 and $33,000 in cash from the exercise of stock options with aggregate intrinsic values of $37,000 and $38,000. No options were exercised during the year ended December 31, 2013. As of December 31, 2015, the total unrecognized compensation expense related to AMIC’s non-vested options was $40,000 which will be recognized over the remaining requisite service periods.

Note 14. Commitments and Contin

Note 14. Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Notes
Note 14. Commitments and Contingencies	Note 14. Commitments and Contingencies Certain subsidiaries of the Company are obligated under non-cancelable operating lease agreements for office space. Total rental expense for the years 2015, 2014 and 2013 for operating leases was $3,377,000, $3,403,000 and $3,470,000, respectively. The approximate minimum annual rental payments under operating leases that have remaining non-cancelable lease terms in excess of one year at December 31, 2015 are as follows (in thousands): 2016 $ 2,865 2017 2,149 2018 2,048 2019 661 2020 385 2021 and thereafter - Total $ 8,108 We are involved in legal proceedings and claims that arise in the ordinary course of our businesses. We have established reserves that we believe are sufficient given information presently available relating to our outstanding legal proceedings and claims. We do not anticipate that the result of any pending legal proceeding or claim will have a material adverse effect on our financial condition or cash flows, although there could be such an effect on our results of operations for any particular period.

Note 15. Concentration of Credi

Note 15. Concentration of Credit Risk	12 Months Ended
	Dec. 31, 2015
Notes
Note 15. Concentration of Credit Risk	Note 15. Concentration of Credit Risk At December 31, 2015, the Company had no investment securities of any one issuer or in any one industry which exceeded 10% of stockholders' equity, except for investments in obligations of the U.S. Government and its agencies and mortgage-backed securities issued by GSEs, as summarized in Note 2. Fixed maturities with a carrying value of $12,552,000 and $12,523,000 were on deposit with various state insurance departments at December 31, 2015 and 2014, respectively. At December 31, 2015, the Company had reinsurance recoverables from the following reinsurers that individually exceed 10% of stockholders’ equity (in thousands): AM Best Due from Reinsurer Rating Reinsurer National Guardian Life Insurance Company A $ 236,577 Guggenheim Life and Annuity Company B++ 106,547 RGA Reinsurance Company A+ 40,224 Markel Bermuda, Ltd. A 41,172 The Company believes that these receivables are fully collectible.

Note 16. Dividend Payment Restr

Note 16. Dividend Payment Restrictions and Statutory Information	12 Months Ended
	Dec. 31, 2015
Notes
Note 16. Dividend Payment Restrictions and Statutory Information	Note 16. Dividend Payment Restrictions and Statutory Information Our insurance subsidiaries are restricted by state laws and regulations as to the amount of dividends they may pay to their parent without regulatory approval in any year. Any dividends in excess of limits are deemed “extraordinary” and require approval. Based on statutory results as of December 31, 2015, in accordance with applicable dividend restrictions, our insurance subsidiaries could pay dividends of approximately $30,513,000 in 2016 without obtaining regulatory approval. There are no regulatory restrictions on the ability of our holding company, IHC, to pay dividends. Under Delaware law, IHC is permitted to pay dividends from surplus or net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. Dividends to shareholders are paid from funds available at the corporate holding company level. Non-“extraordinary” dividend payments were as follows: (i) Madison National Life declared and paid cash dividends of $4,600,000, $4,000,000 and $3,950,000 to its parent in 2015, 2014 and 2013, respectively; (ii) Standard Security Life declared and paid dividends of $6,000,000, $6,000,000 and $8,000,000 to its parent in 2015, 2014 and 2013, respectively; and (iii) Independence American did not declare or pay dividends to its parent in 2015, 2014 or 2013. IHC declared cash dividends of $1,562,000 in 2015, $1,223,000 in 2014 and $1,241,000 in 2013. The Company’s insurance subsidiaries are required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of their state of domicile. Statutory accounting practices differ from U.S. GAAP in several respects causing differences in reported net income and stockholder’s equity. The Company’s insurance subsidiaries have no permitted accounting practices, which encompass all accounting practices not so prescribed that have been specifically allowed by the state insurance authorities. The statutory net income and statutory capital and surplus for each of the Company’s insurance subsidiaries are as follows for the periods indicated (in thousands): Years Ended December 31, 2015 2014 2013 Statutory net income: Madison National Life $ 20,326 $ 9,876 $ 11,704 Standard Security Life 13,198 12,074 9,180 Independence American 2,960 3,127 3,176 December 31, 2015 2014 Statutory capital and surplus: Madison National Life $ 116,652 $ 81,534 Standard Security Life 125,070 116,525 Independence American 63,412 60,168 The insurance subsidiaries are also required to maintain certain minimum amounts of statutory surplus to satisfy their various state insurance departments of domicile. Risk-based capital (“RBC”) requirements are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policyholders. At December 31, 2015 and 2014, the statutory capital of our insurance subsidiaries is significantly in excess of their regulatory RBC requirements.

Note 17. Segment Reporting

Note 17. Segment Reporting	12 Months Ended
	Dec. 31, 2015
Notes
Note 17. Segment Reporting	Note 17. Segment Reporting The Insurance Group principally engages in the life and health insurance business. Interest expense, taxes, and general expenses associated with parent company activities are included in Corporate. Identifiable assets by segment are those assets that are utilized in each segment and are allocated based upon the mean reserves and liabilities of each such segment. Corporate assets are composed principally of cash equivalents, resale agreements, fixed maturities, equity securities, partnership interests and certain other investments. Information by business segment is presented below for the years indicated (in thousands). 2015 2014 2013 Revenues: Medical Stop-Loss $ 216,512 $ 184,775 $ 171,963 Fully Insured Health 185,912 239,101 278,105 Group disability; life and DBL 90,314 67,641 63,155 Individual life, annuities and other 27,119 34,551 41,966 Corporate 205 177 105 520,062 526,245 555,294 Gain on sale of subsidiary to joint venture 9,940 - - Net realized investment gains 3,094 7,688 19,750 Net impairment losses recognized in earnings (228) - - Total revenues $ 532,868 $ 533,933 $ 575,044 Income before income taxes: Medical Stop-Loss $ 23,138 $ 21,933 $ 12,677 Fully Insured Health (A) 6,490 (1,987) 832 Group disability; life and DBL 15,811 12,168 8,647 Individual life, annuities and other (B) (122) (6,618) (10,396) Corporate (8,137) (8,075) (5,941) 37,180 17,421 5,819 Gain on sale of subsidiary to joint venture 9,940 - - Net realized investment gains 3,094 7,688 19,750 Net impairment losses recognized in earnings (228) - - Interest expense (1,798) (1,797) (1,915) Income before income taxes $ 48,188 $ 23,312 $ 23,654 (A) The Fully Insured Health segment includes amortization of intangible assets recorded as a result of purchase accounting for previous acquisitions. Total amortization expense was $1,488,000, $1,948,000 and $2,393,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Amortization expense for the other segments is not material. (B) The Individual life, annuities and other segment includes amortization of deferred charges in connection with the assumptions of certain ceded life and annuity policies amounting to $1,323,000 and $3,540,000 for the years ended December 31, 2015 and 2014, respectively. December 31, 2015 2014 IDENTIFIABLE ASSETS AT YEAR END Medical Stop-Loss $ 291,330 $ 235,429 Fully Insured Health 159,826 170,522 Group disability; life and DBL 268,606 231,109 Individual life, annuities and other 436,941 525,519 Corporate 41,260 33,648 $ 1,197,963 $ 1,196,227

Note 18. Quarterly Data (unaudi

Note 18. Quarterly Data (unaudited)	12 Months Ended
	Dec. 31, 2015
Notes
Note 18. Quarterly Data (unaudited)	Note 18. Quarterly Data (Unaudited) The quarterly results of operations for the years indicated are summarized below (in thousands, except per share data): FIRST SECOND THIRD FOURTH QUARTER QUARTER QUARTER QUARTER 2015 Total revenues $ 134,265 $ 133,105 $ 140,418 $ 125,080 Net income $ 5,331 $ 5,156 $ 14,888 $ 5,147 Less income from noncontrolling interests in subsidiaries (112) (124) (128) (214) Net income attributable to IHC $ 5,219 $ 5,032 $ 14,760 $ 4,933 Basic income per common share $ .30 $ .29 $ .85 $ .29 Diluted income per share $ .30 $ .29 $ .85 $ .28 FIRST SECOND THIRD FOURTH QUARTER QUARTER QUARTER QUARTER 2014 Total revenues $ 141,072 $ 136,019 $ 129,752 $ 127,090 Net income $ 4,005 $ 3,880 $ 4,824 $ 4,212 Less income from noncontrolling interests in subsidiaries (304) (32) (114) (178) Net income attributable to IHC $ 3,701 $ 3,848 $ 4,710 $ 4,034 Basic income per common share $ .21 $ .22 $ .27 $ .23 Diluted income per share $ .21 $ .22 $ .27 $ .23

Note 19. Subsequent Events

Note 19. Subsequent Events	12 Months Ended
	Dec. 31, 2015
Notes
Note 19. Subsequent Events	Note 19. Subsequent Events On March 31, 2016, IHC and its subsidiary Independence American sold the stock of Risk Solutions to Swiss Re Corporate Solutions, a division of Swiss Re (“Swiss Re”). In addition, under the purchase and sale agreement, all of the in-force stop-loss business of Standard Security Life and Independence American produced by Risk Solutions will be co-insured by Westport Insurance Corporation (“Westport”), Swiss Re’s largest US carrier, as of January 1, 2016. The aggregate purchase price was $152,500,000 in cash, subject to adjustments and settlements. Approximately 89% of the purchase price was allocated to AMIC, with the balance being paid to Standard Security Life and other IHC subsidiaries. The aforementioned transaction, which includes the sale of Risk Solutions and the corresponding coinsurance agreement, is collectively referred to as the “Risk Solutions Sale and Coinsurance Transaction”. IHC’s block of Medical Stop-Loss business is in run-off. The sale of Risk Solutions and exit from the medical stop-loss business represents a strategic shift that will have a major effect on the Company’s operations and financial results. The disposal transaction qualifies for reporting as discontinued operations in the first quarter of 2016 as a result of the Board of Directors commitment to a plan for its disposal in January 2016. In January 2016, IHC’s Board of Directors has preliminarily determined to take the steps necessary to take AMIC private.

Summary of Investments, Other t

Summary of Investments, Other than Investments in Related Parties	12 Months Ended
	Dec. 31, 2015
Notes
Summary of Investments, Other than Investments in Related Parties	SCHEDULE I INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2015 (In thousands) AMOUNT SHOWN IN BALANCE TYPE OF INVESTMENT COST VALUE SHEET FIXED MATURITIES - AVAILABLE-FOR-SALE: Bonds: United States Government and Government agencies and authorities $ 56,586 $ 56,391 $ 56,391 States, municipalities and political subdivisions 194,364 194,666 194,666 Foreign governments 2,318 2,324 2,324 Public utilities 23,113 25,606 25,606 All other corporate bonds 153,475 145,491 145,491 Redeemable preferred stock 4,036 4,123 4,123 TOTAL FIXED MATURITIES 433,892 428,601 428,601 EQUITY SECURITIES - AVAILABLE-FOR-SALE AND TRADING: Common stocks: Industrial, miscellaneous and all other 6,883 6,043 6,043 Non-redeemable preferred stocks 3,588 3,642 3,642 TOTAL EQUITY SECURITIES 10,471 9,685 9,685 Policy loans 38 38 38 Short-term investments and resale agreements 28,335 28,335 28,335 Other long-term investments 21,500 21,500 21,500 TOTAL INVESTMENTS $ 494,236 $ 488,159 $ 488,159

Condensed Financial Information

Condensed Financial Information of Parent Company Only Disclosure	12 Months Ended
	Dec. 31, 2015
Notes
Condensed Financial Information of Parent Company Only Disclosure	SCHEDULE II INDEPENDENCE HOLDING COMPANY CONDENSED BALANCE SHEETS (In thousands, except share data) (PARENT COMPANY ONLY) DECEMBER 31, 2015 2014 ASSETS: Cash and cash equivalents $ 512 $ 389 Fixed maturities, available-for-sale 24,549 9,647 Trading securities 620 1,916 Other investments 1,146 1,146 Investments in consolidated subsidiaries 368,836 395,780 Deferred tax assets, net 3,730 11,414 Goodwill 228 228 Other assets 131 97 TOTAL ASSETS $ 399,752 $ 420,617 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES: Accounts payable and other liabilities $ 8,182 $ 7,140 Amounts due to consolidated subsidiaries, net 12,417 57,220 Income taxes payable 7,494 7,871 Junior subordinated debt securities 38,146 38,146 Dividends payable 809 628 TOTAL LIABILITIES 67,048 111,005 STOCKHOLDERS' EQUITY: Preferred stock (none issued) - - Common stock (A) 18,569 18,531 Paid-in capital 127,733 127,098 Accumulated other comprehensive income (loss) (3,440) 22 Treasury stock, at cost (B) (13,961) (12,141) Retained earnings 194,450 166,177 TOTAL IHC’S STOCKHOLDERS' EQUITY 323,351 299,687 NONCONTROLLING INTERESTS IN SUBSIDIARIES 9,353 9,925 TOTAL EQUITY 332,704 309,612 TOTAL LIABILITIES AND EQUITY $ 399,752 $ 420,617 (A) Common stock $1.00 par value, 23,000,000 shares authorized; 18,569,183 and 18,531,158 shares issued, respectively, 17,265,758 and 17,371,040 shares outstanding, respectively. (B) Treasury stock, at cost; 1,303,425 and 1,160,118 shares, respectively, outstanding. (C) Investments in consolidated subsidiaries and retained earnings balances at December 31, 2014 have been revised to reflect an immaterial error correction related to deferred tax assets and liabilities. For further discussion of this error refer to Note 1 of the Notes to Consolidated Financial Statements. The financial information of Independence Holding Company (Parent Company Only) should be read in conjunction with the Consolidated Financial Statements and Notes. SCHEDULE II (Continued) INDEPENDENCE HOLDING COMPANY CONDENSED STATEMENTS OF INCOME (In thousands) (PARENT COMPANY ONLY) 2015 2014 2013 REVENUES: Net investment income $ 112 $ 112 $ 61 Net realized investment gains (losses) (506) (78) 349 Other income 1,800 2,129 2,327 1,406 2,163 2,737 EXPENSES: Interest expense on debt 1,567 1,546 1,563 General and administrative expenses 5,506 5,606 4,301 7,073 7,152 5,864 Loss before tax benefit and equity in net income of subsidiaries (5,667) (4,989) (3,127) Income taxes (benefits) (1,491) (2,389) (1,228) Equity in net income of subsidiaries 34,698 19,521 17,155 Net income 30,522 16,921 15,256 Less income from noncontrolling interests in subsidiaries (578) (628) (1,477) Net income attributable to IHC $ 29,944 $ 16,293 $ 13,779 The financial information of Independence Holding Company (Parent Company Only) should be read in conjunction with the Consolidated Financial Statements and Notes thereto. SCHEDULE II (Continued) INDEPENDENCE HOLDING COMPANY CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (PARENT COMPANY ONLY) 2015 2014 2013 CASH FLOWS PROVIDED BY (USED BY) OPERATING ACTIVITIES: Net income $ 30,522 $ 16,921 $ 15,256 Adjustments to net income: Equity in net income of subsidiaries (34,698) (19,521) (17,155) Other 9,204 3,748 4,398 Changes in other assets and liabilities 550 440 (1,609) Net change in cash from operating activities 5,578 1,588 890 CASH FLOWS PROVIDED BY (USED BY) INVESTING ACTIVITIES: Change in investments in and advances to subsidiaries 12,398 11,138 6,708 Purchases of fixed maturities (20,857) (9,953) - Sales of fixed maturities 5,915 2,751 3,260 Net change in cash from investing activities (2,544) 3,936 9,968 CASH FLOWS PROVIDED BY (USED BY) FINANCING ACTIVITIES: Repurchases of common stock (1,820) (3,972) (3,636) Cash paid in acquisitions of noncontrolling interests - - (7,626) Dividends paid (1,392) (1,233) (620) Other financing activities 301 9 496 Net change in cash from financing activities (2,911) (5,196) (11,386) Net change in cash and cash equivalents 123 328 (528) Cash and cash equivalents, beginning of year 389 61 589 Cash and cash equivalents, end of year $ 512 $ 389 $ 61 The financial information of Independence Holding Company (Parent Company Only) should be read in conjunction with the Consolidated Financial Statements and Notes thereto.

Supplementary Insurance Informa

Supplementary Insurance Information, for Insurance Companies Disclosure	12 Months Ended
	Dec. 31, 2015
Notes
Supplementary Insurance Information, for Insurance Companies Disclosure	SCHEDULE III INDEPENDENCE HOLDING COMPANY SUPPLEMENTARY INSURANCE INFORMATION (in thousands) FUTURE POLICY INSURANCE AMORTIZATION SELLING DEFERRED BENEFITS, NET NET BENEFITS, OF DEFERRED GENERAL & NET ACQUISITION LOSSES & UNEARNED PREMIUMS INVESTMENT CLAIMS & ACQUISTION ADMINISTRATIVE PREMIUMS COSTS CLAIMS PREMIUMS EARNED INCOME (1) RESERVES COSTS EXPENSES (2) WRITTEN December 31, 2015 Medical Stop-Loss $ - 100,088 - 209,765 4,435 153,919 - 39,455 $ 209,765 Fully Insured Health 499 42,165 7,005 171,912 1,813 93,916 386 85,120 171,731 Group disability; life and DBL - 141,837 3,060 85,953 3,699 47,646 - 26,857 86,304 Individual life, annuities and other - 405,327 171 11,904 7,146 11,697 3,138 12,406 11,901 Corporate - - - - 205 - - 8,342 - $ 499 689,417 10,236 479,534 17,298 307,178 3,524 172,180 $ 479,701 December 31, 2014 Medical Stop-Loss $ - 80,128 - 176,941 4,327 122,469 - 40,373 $ 176,941 Fully Insured Health 624 50,767 6,568 218,949 2,202 146,431 482 94,175 215,844 Group disability; life and DBL - 147,823 2,700 64,260 3,156 37,537 - 17,936 64,632 Individual life, annuities and other 30,182 421,908 187 18,898 11,830 19,598 4,459 17,112 18,894 Corporate - - - - 177 - - 8,252 - $ 30,806 700,626 9,455 479,048 21,692 326,035 4,941 177,848 $ 476,311 December 31, 2013 Medical Stop-Loss $ - 72,307 - 166,302 5,055 115,599 - 43,687 $ 166,302 Fully Insured Health 361 57,323 9,828 248,870 2,711 177,290 22 99,961 253,569 Group disability; life and DBL - 147,426 2,398 60,004 2,763 37,463 - 17,045 60,227 Individual life, annuities and other 29,416 522,973 197 20,815 16,837 24,438 15,110 12,814 20,810 Corporate - - - - 105 - - 6,046 - $ 29,777 800,029 12,423 495,991 27,471 354,790 15,132 179,553 $ 500,908 (1) Net investment income is allocated between product lines based on the mean reserve method. (2) Where possible, direct operating expenses are specifically identified and charged to product lines. Indirect expenses are allocated based on time studies; however, other acceptable methods of allocation might produce different results.

Supplemental Schedule of Reinsu

Supplemental Schedule of Reinsurance Premiums for Insurance Companies	12 Months Ended
	Dec. 31, 2015
Notes
Supplemental Schedule of Reinsurance Premiums for Insurance Companies	SCHEDULE IV INDEPENDENCE HOLDING COMPANY REINSURANCE (In thousands) PERCENTAGE ASSUMED CEDED OF AMOUNT GROSS FROM OTHER TO OTHER NET ASSUMED AMOUNT COMPANIES COMPANIES AMOUNT TO NET Life Insurance In-Force December 31, 2015 $ 12,063,911 $ 129,231 $ 6,365,993 $ 5,827,149 2.2% December 31, 2014 $ 11,054,484 $ 418,775 $ 6,128,608 $ 5,344,651 7.8% December 31, 2013 $ 11,415,328 $ 333,200 $ 6,493,122 $ 5,255,406 6.3% Premiums Earned December 31, 2015 Accident and health $ 513,814 $ 28,822 $ 126,613 $ 416,023 6.9% Life and annuity 46,699 4,330 23,078 27,951 15.5% Property and liability (1) 35,812 - 252 35,560 0.0% $ 596,325 $ 33,152 $ 149,943 $ 479,534 6.9% December 31, 2014 Accident and health $ 482,511 $ 52,063 $ 116,163 $ 418,411 12.4% Life and annuity 44,407 6,128 20,214 30,321 20.2% Property and liability (1) 30,477 - 161 30,316 0.0% $ 557,395 $ 58,191 $ 136,538 $ 479,048 12.1% December 31, 2013 Accident and health $ 461,336 $ 85,627 $ 102,053 $ 444,910 19.2% Life and annuity 46,416 6,654 20,820 32,250 20.6% Property and liability (1) 18,845 - 14 18,831 0.0% $ 526,597 $ 92,281 $ 122,887 $ 495,991 18.6% (1) Property and liability products consist primarily of our pet insurance line.

Note 1. Organization, Consoli32

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Basis of Accounting, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Basis of Accounting, Policy	The Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of IHC and its consolidated subsidiaries. Effective September 1, 2015 (“Deconsolidation Date”), pursuant to the terms of a contribution agreement, IHC contributed all of its shares in its subsidiary, IHC Health Solutions, Inc. (“IHC Health Solutions”) to Ebix Health Exchange, a newly formed joint venture with Ebix, Inc. (“Ebix”), and, as a result, IHC deconsolidated IHC Health Solutions (see Note 6). In accordance with U.S. GAAP, the accompanying Consolidated Financial Statements include the operating results of IHC Health Solutions prior to the Deconsolidation Date. Subsequent to the Deconsolidation Date, the Company’s equity interest in the newly formed joint venture is accounted for under the equity method of accounting. All significant intercompany transactions have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect: (i) the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements; and (ii) the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Note 1. Organization, Consoli33

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Reclassification Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Reclassification Policy	Certain amounts in prior year’s Consolidated Financial Statements and Notes thereto have been reclassified to conform to the 2015 presentation.

Note 1. Organization, Consoli34

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Cash and Cash Equivalents, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Cash and Cash Equivalents, Policy	Cash equivalents are carried at cost which approximates fair value and include principally interest-bearing deposits at brokers, money market instruments and U.S. Treasury securities with original maturities of less than 91 days. Investments with original maturities of 91 days to one year are considered short-term investments and are carried at cost which approximates fair value.

Note 1. Organization, Consoli35

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Repurchase and Resale Agreements Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Repurchase and Resale Agreements Policy	Securities purchased under agreements to resell ("resale agreements") are carried at the amounts at which the securities will be subsequently resold as specified in the agreements. Resale agreements are utilized to invest excess funds on a short-term basis. At December 31, 2015, the Company had $28,285,000 invested in resale agreements, all of which settled on January 2 ,

Note 1. Organization, Consoli36

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Investment, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Investment, Policy	(H) Investment Securities (i) (a) (b) (ii) (iii) The Company periodically reviews and assesses the vendor’s qualifications and the design and appropriateness of its pricing methodologies. Management will on occasion challenge pricing information on certain individual securities and, through communications with the vendor, obtain information about the assumptions, inputs and methodologies used in pricing those securities, and corroborate it against documented pricing methodologies. Validation procedures are in place to determine completeness and accuracy of pricing information, including, but not limited to: (i) review of exception reports that (a) identify any zero or un-priced securities; (b) identify securities with no price change; and (c) identify securities with significant price changes; (ii) performance of trend analyses; (iii) periodic comparison of pricing to alternative pricing sources; and (iv) comparison of pricing changes to expectations based on rating changes, benchmarks or control groups. In certain circumstances, pricing is unavailable from the vendor and broker pricing information is used to determine fair value. In these instances, management will assess the quality of the data sources, the underlying assumptions and the reasonableness of the broker quotes based on the current market information available. To determine if an exception represents an error, management will often have to exercise judgment. Procedures to resolve an exception vary depending on the significance of the security and its related class, the frequency of the exception, the risk of material misstatement, and the availability of information for the security. These procedures include, but are not limited to; (i) a price challenge process with the vendor; (ii) pricing from a different vendor; (iii) a reasonableness review; and (iv) a change in price based on better information, such as an actual market trade, among other things. Management considers all facts and relevant information obtained during the above procedures to determine the proper classification of each security in the Fair Value Hierarchy. (iv) In assessing corporate debt securities for other-than-temporary impairment, the Company evaluates the ability of the issuer to meet its debt obligations and the value of the company or specific collateral securing the debt position. For mortgage-backed securities where loan level data is not available, the Company uses a cash flow model based on the collateral characteristics. Assumptions about loss severity and defaults used in the model are primarily based on actual losses experienced and defaults in the collateral pool. Prepayment speeds, both actual and estimated, are also considered. The cash flows generated by the collateral securing these securities are then determined with these default, loss severity and prepayment assumptions. These collateral cash flows are then utilized, along with consideration for the issue’s position in the overall structure, to determine the cash flows associated with the mortgage-backed security held by the Company. In addition, the Company evaluates other asset-backed securities for other-than-temporary impairment by examining similar characteristics referenced above for mortgage-backed securities. The Company evaluates U.S. Treasury securities and obligations of U.S. Government corporations, U.S. Government agencies, and obligations of states and political subdivisions for other-than-temporary impairment by examining the terms and collateral of the security. Equity securities may experience other-than-temporary impairment in the future based on the prospects for full recovery in value in a reasonable period of time and the Company’s ability and intent to hold the security to recovery. If a decline in fair value is judged by management to be other-than-temporary or management does not have the intent or ability to hold a security, a loss is recognized by a charge to total other-than-temporary impairment losses in the Consolidated Statement of Income. For the purpose of other-than-temporary impairment evaluations, redeemable preferred stocks are evaluated in a manner similar to debt securities. Declines in the creditworthiness of the issuer of debt securities with both debt and equity-like features are evaluated using the equity model in consideration of other-than-temporary impairment. Subsequent increases and decreases, if not an other-than-temporary impairment, in the fair value of available-for-sale securities that were previously impaired, are recorded in other comprehensive income (loss). (I) Other Investments Investment partnership interests relate to limited investment partnerships that are relatively insensitive to interest rates. All securities held by these partnerships are carried at fair value with changes in fair value credited or charged, as appropriate, to the Consolidated Statements of Income. The Company's investment partnership interests are carried at a value which approximates the Company's equity in the underlying net assets of the partnerships or the equivalent of the net asset value per share. Operating partnership interests relate to insurance related limited operating partnerships. The Company's operating partnership interests are carried on the equity method which approximates the Company's equity in the underlying net assets of the partnership. Equity income or loss on partnership interests are credited or charged, as appropriate, to the Consolidated Statements of Income. Policy loans are stated at their aggregate unpaid balances.

Note 1. Organization, Consoli37

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Deferred Policy Acquisition Costs, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Deferred Policy Acquisition Costs, Policy	Costs that vary with and are primarily related to the successful acquisition of insurance policies and investment type contracts are deferred and recorded as deferred policy acquisition costs ("DAC"). These costs are principally broker fees, agent commissions, and the purchase prices of the acquired blocks of insurance policies and investment type policies. DAC is amortized to expense and reported separately in the Consolidated Statements of Income. All DAC within a particular product type is amortized on the same basis using the following methods: For traditional life insurance and other premium paying policies, amortization of DAC is charged to expense over the related premium revenue recognition period. Assumptions used in the amortization of DAC are determined based upon the conditions as of the date of policy issue or assumption and are not generally revised during the life of the policy. For long duration type contracts, such as annuities and universal life business, amortization of DAC is charged to expense over the life of the underlying contracts based on the present value of the estimated gross profits ("EGPs") expected to be realized over the life of the book of contracts. EGPs consist of margins based on expected mortality rates, persistency rates, interest rate spreads, and other revenues and expenses. The Company regularly evaluates its EGPs to determine if actual experience or other evidence suggests that earlier estimates should be revised. If the Company determines that the current assumptions underlying the EGPs are no longer the best estimate for the future due to changes in actual versus expected mortality rates, persistency rates, interest rate spreads, or other revenues and expenses, the future EGPs are updated using the new assumptions and prospective unlocking occurs. These updated EGPs are utilized for future amortization calculations. The total amortization recorded to date is adjusted through a current charge or credit to the Consolidated Statements of Income. Internal replacements of insurance and investment contracts determined to result in a replacement contract that is substantially changed from the original contract will be accounted for as an extinguishment of the original contract, resulting in a release of the unamortized deferred acquisition costs, unearned revenue, and deferral of sales inducements associated with the replaced contract. Deferred acquisition costs have been increased (decreased) by $(10,000), $(323,000) and $5,681,000 in 2015, 2014 and 2013 respectively, due to unrealized investment gains and losses. A corresponding increase or decrease was recorded in other comprehensive income or loss. The balance of deferred acquisition costs decreased significantly in 2015 as a result of a coinsurance and sale agreement whereby Madison National Life and Standard Security Life together entered into an agreement to cede substantially all of their individual life and annuity policy blocks in run-off. See Note 8 for more information regarding the reinsurance transaction.

Note 1. Organization, Consoli38

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Property, Plant and Equipment, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Property, Plant and Equipment, Policy	Improvements are capitalized while repair and maintenance costs are charged to operations as incurred. Depreciation of property and equipment has been provided on the straight-line method over the estimated useful lives of the respective assets. Amortization of leasehold improvements has been provided on the straight-line method over the shorter of the lease term or the estimated useful life of the asset.

Note 1. Organization, Consoli39

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Goodwill and Intangible Assets, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Goodwill and Intangible Assets, Policy	Goodwill carrying amounts are evaluated for impairment at the reporting unit level, which is equivalent to an operating segment, at least annually. If the fair value of a reporting unit is less than its carrying amount, further evaluation is required to determine if a write-down of goodwill is required. In determining the fair value of each reporting unit, we used an income approach, applying a discounted cash flow method which included a residual value. Based on historical experience, we make assumptions as to: (i) expected future performance and future economic conditions, (ii) projected operating earnings, (iii) projected new and renewal business as well as profit margins on such business, and (iv) a discount rate that incorporated an appropriate risk level for the reporting unit. Any impairment of goodwill would be charged to expense. Other intangible assets are amortized to expense over their estimated useful lives and are subject to impairment testing. Any impairment of other intangible assets would be charged to expense.

Note 1. Organization, Consoli40

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Liability Reserve Estimate, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Liability Reserve Estimate, Policy	The Company maintains loss reserves to cover its estimated liability for unpaid losses and loss adjustment expenses, where material, including legal, other fees, and costs not associated with specific claims but related to the claims payment function), for reported and unreported claims incurred as of the end of each accounting period. These loss reserves are based on actuarial assumptions and are maintained at levels that are in accordance with U.S. GAAP. Many factors could affect these reserves, including economic and social conditions, frequency and severity of claims, medical trend resulting from the influences of underlying cost inflation, changes in utilization and demand for medical services, and changes in doctrines of legal liability and damage awards in litigation. Therefore, the Company’s reserves are necessarily based on estimates, assumptions and analysis of historical experience. The Company’s results depend upon the variation between actual claims experience and the assumptions used in determining reserves and pricing products. Reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that will be paid for actual claims or the timing of those payments. The Company's estimate of loss represents management's best estimate of the Company's liability at the balance sheet date. Loss reserves differ for short-duration and long-duration insurance policies, including annuities. Reserves are based on approved actuarial methods, but necessarily include assumptions about expenses, mortality, morbidity, lapse rates and future yield on related investments.

Note 1. Organization, Consoli41

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Unpaid Policy Claims and Claims Adjustment Expense, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Unpaid Policy Claims and Claims Adjustment Expense, Policy	All of the Company’s short-duration contracts are generated from its accident, health, disability and pet insurance business, and are accounted for based on actuarial estimates of the amount of loss inherent in that period’s claims, including losses incurred for which claims have not been reported. Short-duration contract loss estimates rely on actuarial observations of ultimate loss experience for similar historical events. Medical Stop-Loss Liabilities for policy benefits and claims on medical stop-loss coverage are computed using completion factors and expected Net Loss Ratios derived from actual historical premium and claim data. Policy benefits and claims for medical stop-loss insurance are more volatile in nature than those for fully insured medical insurance. This is primarily due to the excess nature of medical stop-loss, with very high deductibles applying to specific claims on any individual claimant and in the aggregate for a given group. The level of these deductibles makes it more difficult to predict the amount and payment pattern of such claims. Furthermore, these excess claims are highly sensitive to changes in factors such as medical trend, provider contracts and medical treatment protocols, adding to the difficulty in predicting claim values and estimating reserves. Also, because medical stop-loss is in excess of an underlying benefit plan, there is an additional layer of claim reporting and processing that can affect claim payment patterns. Finally, changes in the distribution of business by effective month can affect reserve estimates due to the timing of claim occurrences and the time required to accumulate claims against the stop-loss deductible. The two “primary” or “key” assumptions underlying the calculation of policy benefits and claims for Medical Stop-Loss business are (i) projected Net Loss Ratio, and (ii) claim development patterns. The projected Net Loss Ratio is set at expected levels consistent with the underlying assumptions (“Projected Net Loss Ratio”). Claim development patterns are set quarterly as reserve estimates are developed and are based on recent claim development history (“Claim Development Patterns”). The Company uses the Projected Net Loss Ratio to establish reserves until developing losses provide a better indication of ultimate results and it is feasible to set reserves based on Claim Development Patterns. The Company has concluded that a reasonably likely change in the Projected Net Loss Ratio assumption could have a material effect on the Company’s financial condition, results of operations, or liquidity (“Material Effect”) but a reasonably likely change in the Claim Development Pattern would not have a Material Effect. Projected Net Loss Ratio Generally, during the first twelve months of an underwriting year, policy benefits for Medical Stop-Loss are first set at the Projected Net Loss Ratio, which is set using assumptions developed using completed prior experience trended forward. The Projected Net Loss Ratio is the Company’s best estimate of future performance until such time as developing losses provide a better indication of ultimate results. Major factors that affect the Projected Net Loss Ratio assumption in reserving for Medical Stop-Loss relate to: (i) frequency and severity of claims; (ii) changes in medical trend resulting from the influences of underlying cost inflation, changes in utilization and demand for medical services, the impact of new medical technology and changes in medical treatment protocols; and (iii) the adherence to the Company’s underwriting guidelines. Claim Development Patterns Subsequent to the first twelve months of an underwriting year, the Company’s developing losses provide a better indication of ultimate losses. At this point, claims have developed to a level where Claim Development Patterns can be applied to generate reasonably reliable estimates of ultimate claim levels. Development factors based on historical patterns are applied to paid and reported claims to estimate fully developed claims. Claim Development Patterns are reviewed quarterly as reserve estimates are developed and are based on recent claim development history. The Company must determine whether changes in development represent true indications of emerging experience or are simply due to random claim fluctuations. The Company also establishes its best estimates of claim development factors to be applied to more developed treaty year experience. While these factors are based on historical Claim Development Patterns, actual claim development may vary from these estimates. Predicting ultimate claims and estimating reserves in Medical Stop-Loss is more complex than fully insured medical and disability business due to the “excess of loss” nature of these products with very high deductibles applying to specific claims on any individual claimant and in the aggregate for a given group. The level of these deductibles makes it more difficult to predict the amount and payment pattern of such claims. Fluctuations in results for specific coverage are primarily due to the severity and frequency of individual claims, whereas fluctuations in aggregate coverage are largely attributable to frequency of underlying claims rather than severity. Liabilities for first dollar medical reserves and disability coverages are computed using completion factors and expected Net Loss Ratios derived from actual historical premium and claim data. Due to the short-term nature of Medical Stop-Loss, redundancies or deficiencies will typically emerge during the course of the following year rather than over a number of years. For Employer Stop-Loss, as noted above, the Company maintains its reserves based on underlying assumptions until it determines that an adjustment is appropriate based on emerging experience from all of its MGUs for prior underwriting years. Fully Insured Health Policy benefits and claims for Fully Insured Health business are established to provide for the liability for incurred but not paid claims. Policy benefits and claims are calculated using standard actuarial methods and practices. The “primary” assumption in the determination of Fully Insured Health reserves is that historical Claim Development Patterns are representative of future Claim Development Patterns. Factors which may affect this assumption include changes in claim payment processing times and procedures, changes in time delay in submission of claims, and the incidence of unusually large claims. Liabilities for policy benefits and claims for fully insured medical and disability coverage are computed using completion factors and expected Net Loss Ratios derived from actual historical premium and claim data. The reserving analysis includes a review of claim processing statistical measures and large claim early notifications; the potential impacts of any changes in these factors are not material. The delay in submission of claims tends to be stable over time and not subject to significant volatility. While these calculations are based on standard methodologies, they are estimates based on historical patterns. To the extent that actual claim payment patterns differ from historical patterns, such estimated reserves may be redundant or inadequate. The effects of such deviations are evaluated by considering claim backlog statistics and reviewing the reasonableness of projected claim ratios. Other factors which may affect the accuracy of policy benefits and claim estimates include the proportion of large claims which may take longer to adjudicate, changes in billing patterns by providers and changes in claim management practices such as hospital bill audits. Long Term Disability Policy benefits and claims for the Company’s long term disability products are developed using actuarial principles and assumptions that consider, among other things, future offsets and recoveries, elimination periods, interest rates, probability of rehabilitation or mortality, incidence and termination rates based on the Company’s experience. The liability for policy benefits and claims is made up of case reserves, incurred but not reported reserves, reopen reserves, and loss adjustment expense. Incurred but not reported and reopen reserves are calculated by a hind-sight study, which takes historical experience and develops the reserve as a percentage of premiums from prior years. The two “primary” assumptions on which long term disability reserves are based are: (i) morbidity levels; and (ii) recovery rates. If morbidity levels increase, for example due to an epidemic or a recessionary environment, the Company would increase reserves because there would be more new claims than expected. In regard to the assumed recovery rate, if disabled lives recover more quickly than anticipated then the existing claims reserves would be reduced; if less quickly, the existing claims reserves would be increased. Management believes that the Company's methods of estimating the liabilities for policy benefits and claims provided appropriate levels of reserves at December 31, 2015 and 2014. Changes in the Company's policy benefits and claims estimates are generally recorded through a charge or credit to its earnings.

Note 1. Organization, Consoli42

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Future Policy Benefits Liability, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Future Policy Benefits Liability, Policy	The liability for future policy benefits consists of the liabilities associated with the Company’s long-duration contracts, primarily its life and annuity products. For traditional life insurance products, the Company computes the liability for future policy benefits primarily using the net premium method based on anticipated investment yield, mortality, and withdrawals. These methods are widely used in the life insurance industry to estimate the liabilities for future policy benefits. Inherent in these calculations are management and actuarial judgments and estimates that could significantly impact the ending reserve liabilities and, consequently, operating results. Actual results may differ, and these estimates are subject to interpretation and change. Management believes that the Company's methods of estimating the liabilities for future policy benefits provided appropriate levels of reserves at December 31, 2015 and 2014. Changes in the Company's future policy benefits estimates are recorded through a charge or credit to its earnings.

Note 1. Organization, Consoli43

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Deposit Contracts, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Deposit Contracts, Policy	Funds received (net of mortality and expense charges) for certain long-duration contracts (principally deferred annuities and universal life policies) are credited directly to a policyholder liability account, funds on deposit. Withdrawals are recorded directly as a reduction of respective policyholders' funds on deposit. Amounts on deposit were credited at annual rates ranging from 3.0% to 7.0% in 2015, 3.0% to 8.0% in 2014, and 2.5% to 8.0% in 2013.

Note 1. Organization, Consoli44

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Other Policyholders' Funds Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Other Policyholders' Funds Policy	Other policyholders’ funds represent interest-bearing liabilities arising from the sale of products, such as universal life, interest-sensitive life and annuities. Policyholder funds are primarily comprised of deposits received and interest credited to the benefit of the policyholder less surrenders and withdrawals, mortality charges and administrative expenses. Interest credited to policyholder funds represents interest accrued or paid on interest-sensitive life policies and investment policies. These amounts are reported in insurance benefits, claims and reserves on the Consolidated Statements of Income. Credit rates for certain annuities and interest-sensitive life policies are adjusted periodically by the Company to reflect current market conditions, subject to contractually guaranteed minimum rates.

Note 1. Organization, Consoli45

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Derivatives, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Derivatives, Policy	All derivatives, whether designated in hedging relationships or not, are required to be recorded in the balance sheet as assets or liabilities at fair value. Hedge accounting is permitted only if certain criteria are met, including a requirement that a highly effective relationship exist between the derivative instrument and the hedged item, both at inception of the hedge and on an ongoing basis. Results of effective hedges are recognized in other comprehensive income or loss for cash flow hedges. The ineffective portions of hedge results are recognized in current earnings. At December 31, 2015, the Company had an interest rate swap agreement that converts an outstanding term loan from a variable rate to a fixed rate. This agreement was designated and effective as a cash flow hedge. The objective of the swap is to reduce the variability in cash flows associated with the re-pricing of interest rates on certain variable rate debt. Changes in fair value of the swap were recorded through other comprehensive income or loss.

Note 1. Organization, Consoli46

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Income Tax, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Income Tax, Policy	The provision for deferred income taxes is based on the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized by applying enacted statutory tax rates to temporary differences between amounts reported in the Consolidated Financial Statements and the tax bases of existing assets and liabilities in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recognized for the portion of deferred tax assets that, in management's judgment, is not likely to be realized. A liability for uncertain tax positions is recorded when it is more likely than not that a tax position will not be sustained upon examination by taxing authorities. The effect on deferred income taxes of a change in tax rates or laws is recognized in income tax expense in the period that includes the enactment date. Interest and penalties are classified as other interest expense and are included in selling, general and administrative expenses in the Consolidated Statements of Income.

Note 1. Organization, Consoli47

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Reinsurance Accounting Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Reinsurance Accounting Policy	Amounts paid for or recoverable under reinsurance contracts are included in total assets or total liabilities as due from reinsurers or due to reinsurers. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies.

Note 1. Organization, Consoli48

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Insurance Premiums Revenue Recognition, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Insurance Premiums Revenue Recognition, Policy	Premiums from short-duration medical insurance contracts are intended to cover expected claim costs resulting from insured events that occur during a fixed period of short duration. The Company has the ability to not renew the contract or to revise the premium rates at the end of each annual contract period to cover future insured events. Insurance premiums from annual health contracts are collected monthly and are recognized as revenue evenly as insurance protection is provided. Premiums related to long-term and short-term disability contracts are recognized on a pro rata basis over the applicable contract term. Traditional life insurance products consist principally of products with fixed and guaranteed premiums and benefits, primarily term and whole life insurance products. Revenue from these products are recognized as premium when due. Annuities and interest-sensitive life contracts, such as universal life and interest sensitive whole life, are contracts whose terms are not fixed and guaranteed. Premiums from these policies are reported as funds on deposit. Policy charges consist of fees assessed against the policyholder for cost of insurance (mortality risk), policy administration and early surrender. These revenues are recognized when assessed against the policyholder account balance. Policies that do not subject the Company to significant risk arising from mortality or morbidity are considered investment contracts. Deposits received for such contracts are reported as other policyholder funds. Policy charges for investment contracts consist of fees assessed against the policyholder account for maintenance, administration and surrender of the policy prior to contractually specified dates, and are recognized when assessed against the policyholder account balance.

Note 1. Organization, Consoli49

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Earnings Per Share, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Earnings Per Share, Policy	Included in the diluted earnings per share calculation for 2015, 2014 and 2013 are 170,000, 165,000 and 113,000 incremental common shares, respectively, primarily from the dilutive effect of share-based payment awards, computed using the treasury stock method.

Note 1. Organization, Consoli50

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Share-based Compensation, Option and Incentive Plans Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Share-based Compensation, Option and Incentive Plans Policy	Compensation costs for equity awards, such as stock options and non-vested restricted stock, are measured based on grant-date fair value and are recognized in the Consolidated Statements of Income over the requisite service period (which is usually the vesting period). For such awards with only service conditions, the Company recognizes the compensation cost on a straight-line basis over the requisite service period for the entire award. Compensation costs for liability-classified awards, such as share appreciation rights (“SARs”), are measured and accrued each reporting period in the Consolidated Statements of Income as the requisite service or performance conditions are met.

Note 1. Organization, Consoli51

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: New Accounting Pronouncements, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
New Accounting Pronouncements, Policy	Recently Adopted Accounting Standards In April 2014, the Financial Accounting Standards Board (“FASB”) issued guidance: (i) improving the definition of discontinued operations by limiting the reporting of discontinued operations to disposals of components that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results; and (ii) requiring expanded disclosures for discontinued operations. The adoption of this guidance on January 1, 2015 did not have any effect on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In March 2016, the FASB issued guidance that simplify several aspects of accounting for sharebased payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In March 2016, the FASB issued guidance that eliminates the requirement for retroactive adjustments on the date that a previously held investment qualifies for the equity method of accounting as a result of an increase in ownership interest or degree of influence. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 and should be applied prospectively upon their effective date. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In February 2016, the FASB issued guidance that requires lessees to recognize the assets and liabilities that arise from leases, including operating leases, on the statement of financial position. The amendments in this Update are effective for fiscal years beginning after December 31, 2018, including interim periods within those fiscal years, using a modified retrospective approach. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In January 2016, the FASB issued guidance that eliminates the requirement to classify equity securities with readily determinable fair values as trading or available-for-sale. The guidance requires equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income, simplifies the impairment assessment of equity securities without readily determinable fair values and requires changes in disclosure requirements. For public entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted in certain circumstances. The amendments in this Update should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the Update. The adoption of this guidance is not expected to have a material effect on the Company’s Consolidated Balance Sheet or IHC’s stockholders’ equity. In September 2015, the FASB issued guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination and eliminate the requirement to retrospectively account for those adjustments. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not been issued. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In May 2015, the FASB issued guidance requiring additional disclosures for short-duration contracts regarding the liability for unpaid claims and claim adjustment expenses. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The adoption of this guidance is not expected to have a significant effect on the Company’s consolidated financial statements. In February 2015, the FASB issued guidance that modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities for the purpose of consolidation. For public entities, this guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In June 2014, the FASB issued explicit guidance for entities that grant their employees share-based payments in which the terms of the award include a performance target that affects vesting and could be achieved after the requisite service period. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Earlier adoption is permitted. The guidance may be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued revenue recognition guidance 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 contracts. The amendment provides specific steps that an entity should apply in order to achieve its main objective which is recognizing 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. In 2016, additional guidance was issued to clarify certain aspects of the implementation guidance and to clarify the identification of performance obligations. In August 2015, the effective date of this guidance has been deferred. For public entities, this guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and requires one of two specified retrospective methods of application. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Management has not yet determined the impact that the adoption of this guidance will have on the Company’s consolidated financial statements.

Note 4. Fair Value Disclosures_

Note 4. Fair Value Disclosures: Fair Value of Financial Instruments, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Fair Value of Financial Instruments, Policy	For all financial and non-financial assets and liabilities accounted for at fair value on a recurring basis, the Company utilizes valuation techniques based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market expectations. These two types of inputs create the following fair value hierarchy: Level 1 Level 2 Level 3

Note 4. Fair Value Disclosure53

Note 4. Fair Value Disclosures: Fair Value Transfer, Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Fair Value Transfer, Policy	It is the Company’s policy to recognize transfers of assets and liabilities between levels of the fair value hierarchy at the end of a reporting period. The Company does not transfer out of Level 3 and into Level 2 until such time as observable inputs become available and reliable or the range of available independent prices narrow.

Note 13. Share-based Compensa54

Note 13. Share-based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Policies)	12 Months Ended
	Dec. 31, 2015
Share-based Compensation, Option and Incentive Plans Policy	Compensation costs for equity awards, such as stock options and non-vested restricted stock, are measured based on grant-date fair value and are recognized in the Consolidated Statements of Income over the requisite service period (which is usually the vesting period). For such awards with only service conditions, the Company recognizes the compensation cost on a straight-line basis over the requisite service period for the entire award. Compensation costs for liability-classified awards, such as share appreciation rights (“SARs”), are measured and accrued each reporting period in the Consolidated Statements of Income as the requisite service or performance conditions are met.
Independence Holding Company Share Based Plans Total Member
Share-based Compensation, Option and Incentive Plans Policy	In June 2006, the stockholders approved the Independence Holding Company 2006 Stock Incentive Plan (the “2006 Plan"). Under the terms of the 2006 Plan, option exercise prices are more than or equal to the quoted market price of the shares at the date of grant; option terms are generally five years; and vesting periods are generally three years. The fair value of an option award is estimated on the date of grant using the Black-Scholes option valuation model. In addition to stock options, the Company has also granted restricted stock units, share appreciation rights (“SARs”) and share-based performance awards under the 2006 Plan. Restricted share units are valued at the quoted market price of the shares at the date of grant and have a three year vesting period. Compensation costs for options and restricted share units are recognized over the stated vesting periods on a straight-line basis. Exercise prices of SARs are more than or equal to the quoted market price of IHC shares at the date of the grant and have three year vesting periods. The fair value of SARs is calculated using the Black-Scholes valuation model at the grant date and each subsequent reporting period until settlement. Compensation cost is based on the proportionate amount of the requisite service that has been rendered to date. Once fully vested, changes in fair value of the SARs continue to be recognized as compensation expense in the period of the change until settlement. Compensation costs for share-based performance awards are recognized and accrued as performance conditions are met, based on the current share price. IHC discontinued these award programs in 2013.
American Independence Corp Share Based Plans Total Member
Share-based Compensation, Option and Incentive Plans Policy	Effective July 1, 2009, AMIC implemented the 2009 Stock Incentive Plan (“AMIC 2009 Plan”), which the AMIC stockholders approved on June 19, 2009. The AMIC 2009 Plan was preceded by the 1998 Stock Incentive Plan which expired by its terms in 2008. The AMIC 2009 Plan provided for the grants of non-statutory and incentive stock options, stock appreciation rights, restricted stock awards, performance shares, and other awards to officers, employee and other individuals. Under the terms of the AMIC 2009 Plan, stock options have a maximum term of ten years from the date of grant, and have various vesting criteria depending on the grant with most grants vesting ratably over four years. At December 31, 2015, stock options for 71,558 common stock shares were outstanding, stock options for 62,669 common stock shares were vested, and 6,490,553 common stock shares that had not been issued remained available for future stock options grants and other awards. Awards made under AMIC’s 1998 Plan prior to its expiration are still in effect.

Note 1. Organization, Consoli55

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net	2015 2014 2013 Changes in IHC’s paid-in capital: Purchases of AMIC shares $ (199) $ - $ (1,571) Repurchases of shares by AMIC - - 403 Purchase remaining IPA Family, LLC interests 311 Net transfers from (to) noncontrolling interests $ 112 $ - $ (1,168)

Note 2. Investment Securities_

Note 2. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Available-for-sale Securities Reconciliation	December 31, 2015 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 172,621 $ 93 $ (5,868) $ 166,846 CMOs - residential (1) 3,068 2 (14) 3,056 CMOs - commercial 899 296 - 1,195 U.S. Government obligations 44,738 120 (64) 44,794 Agency MBS - residential (2) 34 1 - 35 GSEs (3) 11,814 2 (254) 11,562 States and political subdivisions 194,364 2,159 (1,857) 194,666 Foreign government obligations 2,318 12 (6) 2,324 Redeemable preferred stocks 4,036 101 (14) 4,123 Total fixed maturities $ 433,892 $ 2,786 $ (8,077) $ 428,601 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 4,926 $ - $ (142) $ 4,784 Nonredeemable preferred stocks 3,588 56 (2) 3,642 Total equity securities $ 8,514 $ 56 $ (144) $ 8,426 December 31, 2014 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 264,162 $ 1,076 $ (3,314) $ 261,924 CMOs - residential (1) 5,073 55 (22) 5,106 CMOs - commercial 975 - (22) 953 U.S. Government obligations 22,766 126 - 22,892 Agency MBS - residential (2) 65 4 - 69 GSEs (3) 14,706 36 (86) 14,656 States and political subdivisions 238,514 3,253 (2,386) 239,381 Foreign governments 34,863 136 (299) 34,700 Redeemable preferred stocks 4,036 163 - 4,199 Total fixed maturities $ 585,160 $ 4,849 $ (6,129) $ 583,880 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 8,452 $ 1,452 $ (147) $ 9,757 Nonredeemable preferred stocks 4,004 134 - 4,138 Total equity securities $ 12,456 $ 1,586 $ (147) $ 13,895 (1) Collateralized mortgage obligations (“CMOs”). (2) Mortgage-backed securities (“MBS”). (3) Government-sponsored enterprises (“GSEs’) are private enterprises established and chartered by the Federal Government or its various insurance and lease programs which carry the full faith and credit obligation of the U.S. Government.

Note 2. Investment Securities57

Note 2. Investment Securities: Investments Classified by Contractual Maturity Date (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Investments Classified by Contractual Maturity Date	AMORTIZED FAIR COST VALUE Due in one year or less $ 3,726 $ 3,726 Due after one year through five years 99,796 99,036 Due after five years through ten years 118,608 117,379 Due after ten years 196,922 193,584 CMOs and MBSs 14,840 14,876 $ 433,892 $ 428,601

Note 2. Investment Securities58

Note 2. Investment Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	December 31, 2015 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 101,903 $ 2,559 $ 55,217 $ 3,309 $ 157,120 $ 5,868 CMO’s - residential 2,867 14 - - 2,867 14 U.S. Government obligations 19,809 64 - - 19,809 64 GSEs 6,539 128 4,997 126 11,536 254 States and political subdivisions 68,898 780 31,351 1,077 100,249 1,857 Foreign government obligations 484 6 - - 484 6 Redeemable preferred stocks 3,749 14 - - 3,749 14 Total fixed maturities 204,249 3,565 91,565 4,512 295,814 8,077 Common stocks 4,784 142 - - 4,784 142 Nonredeemable preferred stocks 1,324 2 - - 1,324 2 Total equity securities 6,108 144 - - 6,108 144 Total temporarily impaired securities $ 210,357 $ 3,709 $ 91,565 $ 4,512 $ 301,922 $ 8,221 Number of securities in an unrealized loss position 99 31 130 December 31, 2014 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 77,868 $ 1,473 $ 69,498 $ 1,841 $ 147,366 $ 3,314 CMO’s - residential 2,062 16 1,562 6 3,624 22 CMOs - commercial - - 953 22 953 22 GSEs - - 9,581 86 9,581 86 States and political subdivisions 58,819 744 67,318 1,642 126,137 2,386 Foreign governments 21,148 171 12,229 128 33,377 299 Total fixed maturities 159,897 2,404 161,141 3,725 321,038 6,129 Common stocks 2,007 136 348 11 2,355 147 Total equity securities 2,007 136 348 11 2,355 147 Total temporarily impaired securities $ 161,904 $ 2,540 $ 161,489 $ 3,736 $ 323,393 $ 6,276 Number of securities in an unrealized loss position 70 46 116

Note 2. Investment Securities59

Note 2. Investment Securities: Investment Income (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Investment Income	2015 2014 2013 Fixed maturities $ 15,364 $ 18,504 $ 22,667 Equity securities 845 943 1,065 Short-term investments 66 74 118 Policy loans 427 813 1,020 Partnership interests 405 1,101 2,506 Other 295 336 291 Investment income, gross 17,402 21,771 27,667 Investment expenses (104) (79) (196) Net investment income $ 17,298 $ 21,692 $ 27,471

Note 2. Investment Securities60

Note 2. Investment Securities: Realized Gain (Loss) on Investments (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Realized Gain (Loss) on Investments	2015 2014 2013 Available-for-sale securities: Fixed maturities $ 3,533 $ 7,642 $ 17,664 Common stocks 1,519 (5) - Preferred stocks 151 - 177 Total available-for-sale securities 5,203 7,637 17,841 Trading securities (1,653) 506 1,619 Total realized gains 3,550 8,143 19,460 Unrealized gains (losses) on trading securities: Change in unrealized gains (losses) on trading securities (452) (451) 94 Total unrealized gains (losses) on trading securities (452) (451) 94 Gains (losses) on other investments (4) (4) 196 Net realized investment gains $ 3,094 $ 7,688 $ 19,750

Note 2. Investment Securities61

Note 2. Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Other than Temporary Impairment, Credit Losses Recognized in Earnings	2015 2014 2013 Balance at beginning of year $ 473 $ 473 $ 1,976 Securities sold - - (1,503) Balance at end of period $ 473 $ 473 $ 473

Note 4. Fair Value Disclosure62

Note 4. Fair Value Disclosures: Fair Value Measurements, Recurring and Nonrecurring (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Fair Value Measurements, Recurring and Nonrecurring	December 31, 2015 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 166,846 $ - $ 166,846 CMOs - residential - 3,056 - 3,056 CMOs - commercial - - 1,195 1,195 US Government obligations - 44,794 - 44,794 Agency MBS - residential - 35 - 35 GSEs - 11,562 - 11,562 States and political subdivisions - 192,487 2,179 194,666 Foreign government obligations - 2,324 - 2,324 Redeemable preferred stocks 4,123 - - 4,123 Total fixed maturities 4,123 421,104 3,374 428,601 Equity securities available-for-sale: Common stocks 4,784 - - 4,784 Nonredeemable preferred stocks 3,642 - - 3,642 Total equity securities 8,426 - - 8,426 Trading securities - equities 1,259 - - 1,259 Total trading securities 1,259 - - 1,259 Total Financial Assets $ 13,808 $ 421,104 $ 3,374 $ 438,286 FINANCIAL LIABILITIES: Interest rate swap $ - $ 11 $ - $ 11 Contingent liabilities - - 1,650 1,650 Total Financial Liabilities $ - $ 11 $ 1,650 $ 1,661 December 31, 2014 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 261,924 $ - $ 261,924 CMOs – residential - 5,106 - 5,106 CMOs – commercial - - 953 953 US Government obligations - 22,892 - 22,892 Agency MBS - residential - 69 - 69 GSEs - 14,656 - 14,656 States and political subdivisions - 237,067 2,314 239,381 Foreign government - 34,700 - 34,700 Redeemable preferred stocks 4,199 - - 4,199 Total fixed maturities 4,199 576,414 3,267 583,880 Equity securities available-for-sale: Common stocks 9,757 - - 9,757 Nonredeemable preferred stocks 4,138 - - 4,138 Total equity securities 13,895 - - 13,895 Trading securities - equities 11,095 - - 11,095 Total trading securities 11,095 - - 11,095 Total Financial Assets $ 29,189 $ 576,414 $ 3,267 $ 608,870 FINANCIAL LIABILITIES: Interest rate swap $ - $ 83 $ - $ 83 Total Financial Liabilities $ - $ 83 $ - $ 83

Note 4. Fair Value Disclosure63

Note 4. Fair Value Disclosures: Fair Value Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Fair Value Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation	Financial Assets: Financial Liabilities States and Total Total CMOs Political Level 3 Contingent Level 3 Commercial Subdivisions Assets Liabilities Liabilities Balance at December 31, 2013 $ 593 $ 2,441 $ 3,034 $ - $ - Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 360 (58) 302 - - Repayments and amortization of fixed maturities - (69) (69) - - Balance at December 31, 2014 953 2,314 3,267 - - Assumed in acquisition - - - 1,000 1,000 Gains (losses) included in earnings: Gain on sale of subsidiary to joint venture - - - 1,501 1,501 Net investment income - - - (736) (736) Other income - - - (115) (115) Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 318 (47) 271 - - Repayments and amortization of fixed maturities (76) (88) (164) - - Balance at December 31, 2015 $ 1,195 $ 2,179 $ 3,374 $ 1,650 $ 1,650

Note 4. Fair Value Disclosure64

Note 4. Fair Value Disclosures: Fair Value, by Balance Sheet Grouping (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Fair Value, by Balance Sheet Grouping	December 31, 2015 December 31, 2014 Level 2 Level 2 Fair Carrying Fair Carrying Value Value Value Value FINANCIAL ASSETS: Policy loans $ 38 $ 38 $ 13,356 $ 10,667 FINANCIAL LIABILITIES: Funds on deposit $ 173,625 $ 173,350 $ 187,213 $ 186,782 Debt and junior subordinated debt securities $ 43,283 $ 43,335 $ 42,146 $ 42,146

Note 5. Other Investments_ Othe

Note 5. Other Investments: Other Investments Table Text Block (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Other Investments Table Text Block	December 31, 2015 2014 Policy loans $ 38 $ 10,667 Partnership interests 18,944 12,033 Investment in trust subsidiaries 1,146 1,146 Other 1,410 1,405 $ 21,538 $ 25,251

Note 6. Acquisition and Decon66

Note 6. Acquisition and Deconsolidation of Subsidiaries: Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	Cash $ 836 Intangible assets 5,500 Other assets 1,405 Total identifiable assets 7,741 Other liabilities 4,369 Deferred tax liability 1,925 Debt 3,806 Total liabilities 10,100 Net identifiable liabilities assumed $ 2,359

Note 7. Goodwill and Other In67

Note 7. Goodwill and Other Intangible Assets: Schedule of Goodwill (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Goodwill	Medical Fully-Insured Stop-Loss Health Total Balance at December 31, 2013 $ 5,664 $ 44,654 $ 50,318 Acquisition - - - Balance at December 31, 2014 5,664 44,654 50,318 Acquisition (see Note 6) - 5,703 5,703 Sale of subsidiary/business (see Note 6) - (3,081) (3,081) Balance at December 31, 2015 $ 5,664 $ 47,276 $ 52,940

Note 7. Goodwill and Other In68

Note 7. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Finite-Lived Intangible Assets	December 31, 2015 December 31, 2014 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Finite-lived Intangible Assets: Agent and broker relationships $ 23,529 $ 16,906 $ 22,725 $ 18,567 Trademarks 1,000 83 - - Total finite-lived $ 24,529 $ 16,989 $ 22,725 $ 18,567

Note 7. Goodwill and Other In69

Note 7. Goodwill and Other Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Indefinite-Lived Intangible Assets	December 31, 2015 2014 Indefinite-lived Intangible Assets: Insurance licenses $ 7,977 $ 7,977 Total indefinite-lived $ 7,977 $ 7,977

Note 7. Goodwill and Other In70

Note 7. Goodwill and Other Intangible Assets: Schedule of Intangible Assets, Net, Table Text Block (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Intangible Assets, Net, Table Text Block	2015 2014 2013 Balance at beginning of year $ 12,135 $ 14,767 $ 18,271 Acquisitions 5,500 - (183) Sale of subsidiaries/businesses (122) - (101) Amortization expense (1,996) (2,632) (3,220) Balance at end of year $ 15,517 $ 12,135 $ 14,767

Note 7. Goodwill and Other In71

Note 7. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Amortization Year Expense 2016 $ 1,925 2017 1,551 2018 1,210 2019 849 2020 622

Note 8. Reinsurance_ Effects of

Note 8. Reinsurance: Effects of Reinsurance (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Effects of Reinsurance	ASSUMED CEDED GROSS FROM OTHER TO OTHER NET AMOUNT COMPANIES COMPANIES AMOUNT Premiums Earned December 31, 2015 Accident and health $ 513,814 $ 28,822 $ 126,613 $ 416,023 Life and annuity 46,699 4,330 23,078 27,951 Property and liability 35,812 - 252 35,560 $ 596,325 $ 33,152 $ 149,943 $ 479,534 December 31, 2014 Accident and health $ 482,511 $ 52,063 $ 116,163 $ 418,411 Life and annuity 44,407 6,128 20,214 30,321 Property and liability 30,477 - 161 30,316 $ 557,395 $ 58,191 $ 136,538 $ 479,048 December 31, 2013 Accident and health $ 461,336 $ 85,627 $ 102,053 $ 444,910 Life and annuity 46,416 6,654 20,820 32,250 Property and liability 18,845 - 14 18,831 $ 526,597 $ 92,281 $ 122,887 $ 495,991 Insurance benefits, claims and reserves December 31, 2015 $ 365,634 $ 24,956 $ 83,412 $ 307,178 December 31, 2014 $ 276,634 $ 50,441 $ 1,040 $ 326,035 December 31, 2013 $ 374,865 $ 82,337 $ 102,412 $ 354,790

Note 9. Policy Benefits and C73

Note 9. Policy Benefits and Claims: Schedule of Liability for Unpaid Claims and Claims Adjustment Expense (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense	2015 2014 2013 Balance at beginning of year $ 236,803 $ 237,754 $ 194,480 Less: reinsurance recoverable 78,531 72,772 78,629 Net balance at beginning of year 158,272 164,982 115,851 Amount assumed 10,343 - 15,384 Amount incurred, related to: Current year 294,390 303,973 324,040 Prior years (8,488) (4,552) (3,230) Total incurred 285,902 299,421 320,810 Amount paid, related to: Current year 169,488 192,001 207,315 Prior years 104,948 114,130 79,748 Total paid 274,436 306,131 287,063 Net balance at end of year 180,081 158,272 164,982 Plus: reinsurance recoverable 65,362 78,531 72,772 Balance at end of year $ 245,443 $ 236,803 $ 237,754

Note 10. Debt and Junior Subo74

Note 10. Debt and Junior Subordinated Debt Securities: Schedule of Long-term Debt Instruments (Tables)	12 Months Ended
	Dec. 31, 2015
Loans Payable
Schedule of Long-term Debt Instruments	December 31, 2015 2014 Term loan payable to bank $ 2,000 $ 4,000 Other term loans 2,964 - Line of credit 225 - $ 5,189 $ 4,000
Junior Subordinated Debt
Schedule of Long-term Debt Instruments	Independence Preferred Trust I - Trust Preferred $ 10,000 Independence Preferred Trust I - Common Stock 310 Junior subordinated debt security -Trust I 10,310 Independence Preferred Trust II -Trust Preferred 12,000 Independence Preferred Trust II - Common Stock 372 Junior subordinated debt security - Trust II 12,372 Independence Preferred Trust III – Trust Preferred 15,000 Independence Preferred Trust III – Common Stock 464 Junior subordinated debt security – Trust III 15,464 Total junior subordinated debt securities $ 38,146

Note 11. Income Taxes_ Schedule

Note 11. Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Components of Income Tax Expense (Benefit)	2015 2014 2013 CURRENT: U.S. Federal $ 14,415 $ 20 $ (1,500) State and Local 1,012 743 1,206 15,427 763 (294) DEFERRED: U.S. Federal 2,119 5,317 8,805 State and Local 120 311 (113) 2,239 5,628 8,692 $ 17,666 $ 6,391 $ 8,398

Note 11. Income Taxes_ Schedu76

Note 11. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation	2015 2014 2013 Tax computed at the statutory rate $ 16,866 $ 8,159 $ 8,279 Dividends received deduction and tax exempt interest (796) (1,384) (849) State and local income taxes, net of Federal effect 735 685 710 Health insurance excise tax 526 696 - Health insurer compensation limit 516 661 - AMIC valuation allowance adjustment - (2,500) - Other, net (181) 74 258 Income tax expense $ 17,666 $ 6,391 $ 8,398

Note 11. Income Taxes_ Schedu77

Note 11. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Deferred Tax Assets and Liabilities	2015 2014 DEFERRED TAX ASSETS: Deferred insurance policy acquisition costs $ - $ 754 Unrealized losses on investment securities 1,935 - Investment write-downs 205 165 Loss carryforwards 91,558 102,478 Insurance reserves 461 366 Other 5,614 7,126 Total gross deferred tax assets 99,773 110,889 Less AMIC valuation allowance (74,087) (74,087) Net deferred tax assets 25,686 36,802 DEFERRED TAX LIABILITIES: Deferred insurance policy acquisition costs (111) (10,712) Insurance reserves (4,180) (6,856) Unrealized gains on investment securities - (78) Goodwill and intangible assets (6,175) (2,315) Other (3,968) (2,864) Total gross deferred tax liabilities (14,434) (22,825) Net deferred tax asset $ 11,252 $ 13,977

Note 12. Stockholders' Equity_

Note 12. Stockholders' Equity: Schedule of Accumulated Other Comprehensive Income (Loss) (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Accumulated Other Comprehensive Income (Loss)	Unrealized Gains (Losses) on Available-for Sale Cash Flow Securities Hedge Total Balance at December 31, 2012 $ 15,231 $ (218) $ 15,013 Other comprehensive income (loss) before reclassifications (14,361) 96 (14,265) Amounts reclassified from accumulated OCI (11,826) - (11,826) Net other comprehensive income (loss) (26,187) 96 (26,091) Less: Other comprehensive income attributable to noncontrolling interests 665 - 665 Acquired from noncontrolling interests (59) - (59) Balance at December 31, 2013 (10,350) (122) (10,472) Other comprehensive income (loss) before reclassifications 15,872 72 15,944 Amounts reclassified from accumulated OCI (5,251) - (5,251) Net other comprehensive income (loss) 10,621 72 10,693 Less: Other comprehensive loss attributable to noncontrolling interests (199) - (199) Balance at December 31, 2014 72 (50) 22 Other comprehensive income (loss) before reclassifications (299) 43 (256) Amounts reclassified from accumulated OCI (3,206) - (3,206) Net other comprehensive income (loss) (3,505) 43 (3,462) Less: Other comprehensive loss attributable to noncontrolling interests (5) - (5) Acquired from noncontrolling interests 5 5 Balance at December 31, 2015 $ (3,433) $ (7) $ (3,440)

Note 12. Stockholders' Equity79

Note 12. Stockholders' Equity: Reclassification out of Accumulated Other Comprehensive Income (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Reclassification out of Accumulated Other Comprehensive Income	2015 2014 2013 Unrealized gains (losses) on available-for-sale securities reclassified during the period to the following income statement line items: Net realized investment gains $ 5,202 $ 7,637 $ 17,841 Net impairment losses recognized in earnings (228) - - Income before income tax 4,974 7,637 17,841 Tax effect 1,768 2,386 6,015 Net income $ 3,206 $ 5,251 $ 11,826

Note 13. Share-based Compensa80

Note 13. Share-based Compensation: Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan (Tables)	12 Months Ended
	Dec. 31, 2015
Independence Holding Company Share Based Plans Total Member
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan	2015 2014 2013 IHC’s Share-based Compensation Plan: Stock options $ 55 $ 669 $ 210 Restricted stock units 89 85 66 SARs 13 14 698 Performance awards - - (15) Share-based compensation expense, pre-tax 157 768 959 Tax benefits 63 306 382 Share-based compensation expense, net $ 94 $ 462 $ 577
American Independence Corp Share Based Plans Total Member
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan	2015 2014 2013 AMIC’s Share-based Compensation Plans: Stock options $ 43 $ 52 $ 42 Share-based compensation expense, pre-tax 43 52 42 Tax benefits 15 18 15 Share-based compensation expense, net $ 28 $ 34 $ 27

Note 13. Share-based Compensa81

Note 13. Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	12 Months Ended
	Dec. 31, 2015
Independence Holding Company Share Based Plans Total Member
Schedule of Share-based Compensation, Stock Options, Activity	Shares Weighted- Average Under Option Exercise Price December 31, 2014 614,680 $ 9.33 Exercised (30,600) 9.09 December 31, 2015 584,080 $ 9.35
American Independence Corp Share Based Plans Total Member
Schedule of Share-based Compensation, Stock Options, Activity	Shares Weighted- Average Under Option Exercise Price December 31, 2014 166,616 $ 10.50 Exercised (8,890) 5.81 Forfeited (26,001) 8.90 Expired (60,167) 13.82 December 31, 2015 71,558 $ 8.88

Note 13. Share-based Compensa82

Note 13. Share-based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding (Tables)	12 Months Ended
	Dec. 31, 2015
Independence Holding Company Share Based Plans Total Member
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding	December 31, 2015 Outstanding Exercisable Number of options 584,080 584,080 Weighted average exercise price per share $ 9.35 $ 9.35 Aggregate intrinsic value for all options (in thousands) $ 2,631 $ 2,631 Weighted average contractual term remaining 1.3 years 1.3 years
American Independence Corp Share Based Plans Total Member
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding	December 31, 2015 Outstanding Exercisable Number of options 71,558 62,669 Weighted average exercise price per share $ 8.88 $ 8.74 Aggregate intrinsic value for all options (in thousands) $ 73 $ 70 Weighted average contractual term remaining 4.19 years 3.63 years

Note 13. Share-based Compensa83

Note 13. Share-based Compensation: Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Tables)	12 Months Ended
	Dec. 31, 2015
Independence Holding Company Share Based Plans Total Member
Schedule of Share-based Compensation, Restricted Stock Units Award Activity	No. of Weighted-Average Non-vested Grant-Date Shares Fair Value December 31, 2014 14,850 $ 12.09 Granted 7,425 11.78 Vested (7,425) 11.44 December 31, 2015 14,850 $ 12.26

Note 13. Share-based Compensa84

Note 13. Share-based Compensation: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)	12 Months Ended
	Dec. 31, 2015
American Independence Corp Share Based Plans Total Member
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	2014 2013 Weighted-average risk-free interest rate 2.72% 2.30% Annual dividend rate per share - - Weighted-average volatility factor of the Company's common stock 38.27% 45.00% Weighted-average expected term of options 5 years 5 years

Note 14. Commitments and Cont85

Note 14. Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Future Minimum Rental Payments for Operating Leases	2016 $ 2,865 2017 2,149 2018 2,048 2019 661 2020 385 2021 and thereafter - Total $ 8,108

Note 15. Concentration of Cre86

Note 15. Concentration of Credit Risk: Ceded Credit Risk (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Ceded Credit Risk	AM Best Due from Reinsurer Rating Reinsurer National Guardian Life Insurance Company A $ 236,577 Guggenheim Life and Annuity Company B++ 106,547 RGA Reinsurance Company A+ 40,224 Markel Bermuda, Ltd. A 41,172

Note 16. Dividend Payment Res87

Note 16. Dividend Payment Restrictions and Statutory Information: Statutory Accounting Practices Disclosure (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Statutory Accounting Practices Disclosure	Years Ended December 31, 2015 2014 2013 Statutory net income: Madison National Life $ 20,326 $ 9,876 $ 11,704 Standard Security Life 13,198 12,074 9,180 Independence American 2,960 3,127 3,176 December 31, 2015 2014 Statutory capital and surplus: Madison National Life $ 116,652 $ 81,534 Standard Security Life 125,070 116,525 Independence American 63,412 60,168

Note 17. Segment Reporting_ Sch

Note 17. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Segment Reporting Information, by Segment	2015 2014 2013 Revenues: Medical Stop-Loss $ 216,512 $ 184,775 $ 171,963 Fully Insured Health 185,912 239,101 278,105 Group disability; life and DBL 90,314 67,641 63,155 Individual life, annuities and other 27,119 34,551 41,966 Corporate 205 177 105 520,062 526,245 555,294 Gain on sale of subsidiary to joint venture 9,940 - - Net realized investment gains 3,094 7,688 19,750 Net impairment losses recognized in earnings (228) - - Total revenues $ 532,868 $ 533,933 $ 575,044 Income before income taxes: Medical Stop-Loss $ 23,138 $ 21,933 $ 12,677 Fully Insured Health (A) 6,490 (1,987) 832 Group disability; life and DBL 15,811 12,168 8,647 Individual life, annuities and other (B) (122) (6,618) (10,396) Corporate (8,137) (8,075) (5,941) 37,180 17,421 5,819 Gain on sale of subsidiary to joint venture 9,940 - - Net realized investment gains 3,094 7,688 19,750 Net impairment losses recognized in earnings (228) - - Interest expense (1,798) (1,797) (1,915) Income before income taxes $ 48,188 $ 23,312 $ 23,654 (A) The Fully Insured Health segment includes amortization of intangible assets recorded as a result of purchase accounting for previous acquisitions. Total amortization expense was $1,488,000, $1,948,000 and $2,393,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Amortization expense for the other segments is not material. (B) The Individual life, annuities and other segment includes amortization of deferred charges in connection with the assumptions of certain ceded life and annuity policies amounting to $1,323,000 and $3,540,000 for the years ended December 31, 2015 and 2014, respectively. December 31, 2015 2014 IDENTIFIABLE ASSETS AT YEAR END Medical Stop-Loss $ 291,330 $ 235,429 Fully Insured Health 159,826 170,522 Group disability; life and DBL 268,606 231,109 Individual life, annuities and other 436,941 525,519 Corporate 41,260 33,648 $ 1,197,963 $ 1,196,227

Note 18. Quarterly Data (unau89

Note 18. Quarterly Data (unaudited): Schedule of Quarterly Financial Information (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Quarterly Financial Information	FIRST SECOND THIRD FOURTH QUARTER QUARTER QUARTER QUARTER 2015 Total revenues $ 134,265 $ 133,105 $ 140,418 $ 125,080 Net income $ 5,331 $ 5,156 $ 14,888 $ 5,147 Less income from noncontrolling interests in subsidiaries (112) (124) (128) (214) Net income attributable to IHC $ 5,219 $ 5,032 $ 14,760 $ 4,933 Basic income per common share $ .30 $ .29 $ .85 $ .29 Diluted income per share $ .30 $ .29 $ .85 $ .28 FIRST SECOND THIRD FOURTH QUARTER QUARTER QUARTER QUARTER 2014 Total revenues $ 141,072 $ 136,019 $ 129,752 $ 127,090 Net income $ 4,005 $ 3,880 $ 4,824 $ 4,212 Less income from noncontrolling interests in subsidiaries (304) (32) (114) (178) Net income attributable to IHC $ 3,701 $ 3,848 $ 4,710 $ 4,034 Basic income per common share $ .21 $ .22 $ .27 $ .23 Diluted income per share $ .21 $ .22 $ .27 $ .23

Summary of Investments, Other90

Summary of Investments, Other than Investments in Related Parties: SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesTableTextBlock (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesTableTextBlock	SCHEDULE I INDEPENDENCE HOLDING COMPANY AND SUBSIDIARIES SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2015 (In thousands) AMOUNT SHOWN IN BALANCE TYPE OF INVESTMENT COST VALUE SHEET FIXED MATURITIES - AVAILABLE-FOR-SALE: Bonds: United States Government and Government agencies and authorities $ 56,586 $ 56,391 $ 56,391 States, municipalities and political subdivisions 194,364 194,666 194,666 Foreign governments 2,318 2,324 2,324 Public utilities 23,113 25,606 25,606 All other corporate bonds 153,475 145,491 145,491 Redeemable preferred stock 4,036 4,123 4,123 TOTAL FIXED MATURITIES 433,892 428,601 428,601 EQUITY SECURITIES - AVAILABLE-FOR-SALE AND TRADING: Common stocks: Industrial, miscellaneous and all other 6,883 6,043 6,043 Non-redeemable preferred stocks 3,588 3,642 3,642 TOTAL EQUITY SECURITIES 10,471 9,685 9,685 Policy loans 38 38 38 Short-term investments and resale agreements 28,335 28,335 28,335 Other long-term investments 21,500 21,500 21,500 TOTAL INVESTMENTS $ 494,236 $ 488,159 $ 488,159

Condensed Financial Informati91

Condensed Financial Information of Parent Company Only Disclosure: Condensed Balance Sheet (Tables)	12 Months Ended
	Dec. 31, 2015
Parent Company
Condensed Balance Sheet	SCHEDULE II INDEPENDENCE HOLDING COMPANY CONDENSED BALANCE SHEETS (In thousands, except share data) (PARENT COMPANY ONLY) DECEMBER 31, 2015 2014 ASSETS: Cash and cash equivalents $ 512 $ 389 Fixed maturities, available-for-sale 24,549 9,647 Trading securities 620 1,916 Other investments 1,146 1,146 Investments in consolidated subsidiaries 368,836 395,780 Deferred tax assets, net 3,730 11,414 Goodwill 228 228 Other assets 131 97 TOTAL ASSETS $ 399,752 $ 420,617 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES: Accounts payable and other liabilities $ 8,182 $ 7,140 Amounts due to consolidated subsidiaries, net 12,417 57,220 Income taxes payable 7,494 7,871 Junior subordinated debt securities 38,146 38,146 Dividends payable 809 628 TOTAL LIABILITIES 67,048 111,005 STOCKHOLDERS' EQUITY: Preferred stock (none issued) - - Common stock (A) 18,569 18,531 Paid-in capital 127,733 127,098 Accumulated other comprehensive income (loss) (3,440) 22 Treasury stock, at cost (B) (13,961) (12,141) Retained earnings 194,450 166,177 TOTAL IHC’S STOCKHOLDERS' EQUITY 323,351 299,687 NONCONTROLLING INTERESTS IN SUBSIDIARIES 9,353 9,925 TOTAL EQUITY 332,704 309,612 TOTAL LIABILITIES AND EQUITY $ 399,752 $ 420,617

Condensed Financial Informati92

Condensed Financial Information of Parent Company Only Disclosure: Condensed Income Statement (Tables)	12 Months Ended
	Dec. 31, 2015
Parent Company
Condensed Income Statement	SCHEDULE II (Continued) INDEPENDENCE HOLDING COMPANY CONDENSED STATEMENTS OF INCOME (In thousands) (PARENT COMPANY ONLY) 2015 2014 2013 REVENUES: Net investment income $ 112 $ 112 $ 61 Net realized investment gains (losses) (506) (78) 349 Other income 1,800 2,129 2,327 1,406 2,163 2,737 EXPENSES: Interest expense on debt 1,567 1,546 1,563 General and administrative expenses 5,506 5,606 4,301 7,073 7,152 5,864 Loss before tax benefit and equity in net income of subsidiaries (5,667) (4,989) (3,127) Income taxes (benefits) (1,491) (2,389) (1,228) Equity in net income of subsidiaries 34,698 19,521 17,155 Net income 30,522 16,921 15,256 Less income from noncontrolling interests in subsidiaries (578) (628) (1,477) Net income attributable to IHC $ 29,944 $ 16,293 $ 13,779

Condensed Financial Informati93

Condensed Financial Information of Parent Company Only Disclosure: Condensed Cash Flow Statement (Tables)	12 Months Ended
	Dec. 31, 2015
Parent Company
Condensed Cash Flow Statement	SCHEDULE II (Continued) INDEPENDENCE HOLDING COMPANY CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (PARENT COMPANY ONLY) 2015 2014 2013 CASH FLOWS PROVIDED BY (USED BY) OPERATING ACTIVITIES: Net income $ 30,522 $ 16,921 $ 15,256 Adjustments to net income: Equity in net income of subsidiaries (34,698) (19,521) (17,155) Other 9,204 3,748 4,398 Changes in other assets and liabilities 550 440 (1,609) Net change in cash from operating activities 5,578 1,588 890 CASH FLOWS PROVIDED BY (USED BY) INVESTING ACTIVITIES: Change in investments in and advances to subsidiaries 12,398 11,138 6,708 Purchases of fixed maturities (20,857) (9,953) - Sales of fixed maturities 5,915 2,751 3,260 Net change in cash from investing activities (2,544) 3,936 9,968 CASH FLOWS PROVIDED BY (USED BY) FINANCING ACTIVITIES: Repurchases of common stock (1,820) (3,972) (3,636) Cash paid in acquisitions of noncontrolling interests - - (7,626) Dividends paid (1,392) (1,233) (620) Other financing activities 301 9 496 Net change in cash from financing activities (2,911) (5,196) (11,386) Net change in cash and cash equivalents 123 328 (528) Cash and cash equivalents, beginning of year 389 61 589 Cash and cash equivalents, end of year $ 512 $ 389 $ 61

Supplementary Insurance Infor94

Supplementary Insurance Information, for Insurance Companies Disclosure: Supplementary Insurance Information For Insurance Companies Disclosure Table Text Block (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Supplementary Insurance Information For Insurance Companies Disclosure Table Text Block	SCHEDULE III INDEPENDENCE HOLDING COMPANY SUPPLEMENTARY INSURANCE INFORMATION (in thousands) FUTURE POLICY INSURANCE AMORTIZATION SELLING DEFERRED BENEFITS, NET NET BENEFITS, OF DEFERRED GENERAL & NET ACQUISITION LOSSES & UNEARNED PREMIUMS INVESTMENT CLAIMS & ACQUISTION ADMINISTRATIVE PREMIUMS COSTS CLAIMS PREMIUMS EARNED INCOME (1) RESERVES COSTS EXPENSES (2) WRITTEN December 31, 2015 Medical Stop-Loss $ - 100,088 - 209,765 4,435 153,919 - 39,455 $ 209,765 Fully Insured Health 499 42,165 7,005 171,912 1,813 93,916 386 85,120 171,731 Group disability; life and DBL - 141,837 3,060 85,953 3,699 47,646 - 26,857 86,304 Individual life, annuities and other - 405,327 171 11,904 7,146 11,697 3,138 12,406 11,901 Corporate - - - - 205 - - 8,342 - $ 499 689,417 10,236 479,534 17,298 307,178 3,524 172,180 $ 479,701 December 31, 2014 Medical Stop-Loss $ - 80,128 - 176,941 4,327 122,469 - 40,373 $ 176,941 Fully Insured Health 624 50,767 6,568 218,949 2,202 146,431 482 94,175 215,844 Group disability; life and DBL - 147,823 2,700 64,260 3,156 37,537 - 17,936 64,632 Individual life, annuities and other 30,182 421,908 187 18,898 11,830 19,598 4,459 17,112 18,894 Corporate - - - - 177 - - 8,252 - $ 30,806 700,626 9,455 479,048 21,692 326,035 4,941 177,848 $ 476,311 December 31, 2013 Medical Stop-Loss $ - 72,307 - 166,302 5,055 115,599 - 43,687 $ 166,302 Fully Insured Health 361 57,323 9,828 248,870 2,711 177,290 22 99,961 253,569 Group disability; life and DBL - 147,426 2,398 60,004 2,763 37,463 - 17,045 60,227 Individual life, annuities and other 29,416 522,973 197 20,815 16,837 24,438 15,110 12,814 20,810 Corporate - - - - 105 - - 6,046 - $ 29,777 800,029 12,423 495,991 27,471 354,790 15,132 179,553 $ 500,908

Supplemental Schedule of Rein95

Supplemental Schedule of Reinsurance Premiums for Insurance Companies: Supplemental Schedule of Reinsurance Premiums For Insurance Companies Table Text Block (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Supplemental Schedule of Reinsurance Premiums For Insurance Companies Table Text Block	SCHEDULE IV INDEPENDENCE HOLDING COMPANY REINSURANCE (In thousands) PERCENTAGE ASSUMED CEDED OF AMOUNT GROSS FROM OTHER TO OTHER NET ASSUMED AMOUNT COMPANIES COMPANIES AMOUNT TO NET Life Insurance In-Force December 31, 2015 $ 12,063,911 $ 129,231 $ 6,365,993 $ 5,827,149 2.2% December 31, 2014 $ 11,054,484 $ 418,775 $ 6,128,608 $ 5,344,651 7.8% December 31, 2013 $ 11,415,328 $ 333,200 $ 6,493,122 $ 5,255,406 6.3% Premiums Earned December 31, 2015 Accident and health $ 513,814 $ 28,822 $ 126,613 $ 416,023 6.9% Life and annuity 46,699 4,330 23,078 27,951 15.5% Property and liability (1) 35,812 - 252 35,560 0.0% $ 596,325 $ 33,152 $ 149,943 $ 479,534 6.9% December 31, 2014 Accident and health $ 482,511 $ 52,063 $ 116,163 $ 418,411 12.4% Life and annuity 44,407 6,128 20,214 30,321 20.2% Property and liability (1) 30,477 - 161 30,316 0.0% $ 557,395 $ 58,191 $ 136,538 $ 479,048 12.1% December 31, 2013 Accident and health $ 461,336 $ 85,627 $ 102,053 $ 444,910 19.2% Life and annuity 46,416 6,654 20,820 32,250 20.6% Property and liability (1) 18,845 - 14 18,831 0.0% $ 526,597 $ 92,281 $ 122,887 $ 495,991 18.6%

Note 1. Organization, Consoli96

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Error Corrections and Prior Period Adjustments, Description	During the fourth quarter of 2015, the Company identified an error in the recording of deferred tax assets and liabilities made in connection with the acquisition of AMIC in 2010. An immaterial error correction was made in the Consolidated Balance Sheet at December 31, 2014 and in the Consolidated Statements of Changes in Stockholders’ Equity for the two-year period ended December 31, 2014. Other assets in the Consolidated Balance Sheet at December 31, 2014 was increased by $8,510,000, representing the correction of net deferred tax asset balances, with a corresponding increase made to retained earnings, representing an adjustment to the 2010 gain on bargain purchase of AMIC, the effect of which is reflected in the Consolidated Balance Sheet at December 31, 2014 and in the Statements of Changes in Stockholders’ Equity as of December 31, 2012, 2013 and 2014. This immaterial error correction had no impact on the Consolidated Statements of Income, the computations of basic and diluted earnings per share, the Consolidated Statements of Comprehensive Income, or the Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2014 or 2015.
Retained earnings	$ 194,450	$ 166,177
Deferred Tax Assets, Net	11,252	$ 13,977
Participating Policies as Percentage of Gross Insurance in Force		13.70%	11.70%
Other Assets
Property, Plant and Equipment, Net	1,977	$ 3,086
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 6,650	14,030
Restatement Adjustment
Retained earnings		8,510	$ 8,510	$ 8,510
Deferred Tax Assets, Net		$ 8,510
GeneveAffiliatedEntityMember
EntityCommonStockOutstandingOwnershipPercent	53.00%
AMICSubsidiariesMember
Noncontrolling Interest, Ownership Percentage by Parent	92.00%	90.00%	90.00%	79.00%

Note 1. Organization, Consoli97

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2013
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Net	$ 112	$ (1,168)
AMICSubsidiariesMember
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent	(199)	(1,571)
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Repurchase of Shares by Subsidiary		$ 403
IPASubsidiariesMember
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent	$ 311

Note 1. Organization, Consoli98

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Repurchase and Resale Agreements Policy (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Details
Securities purchased under agreements to resell	$ 28,285	$ 16,790

Note 1. Organization, Consoli99

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Deferred Policy Acquisition Costs, Policy (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Deferred Policy Acquisition Cost, Amortization Expense, Unrealized Investment Gains (Losses)	$ (10)	$ (323)	$ 5,681

Note 1. Organization, Consol100

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Deposit Contracts, Policy (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Liability for Policyholder Contract Deposits, Interest Rate, Deferred Annuity, Low End	3.00%	3.00%	2.50%
Liability for Policyholder Contract Deposits, Interest Rate, Deferred Annuity, High End	7.00%	8.00%	8.00%

Note 1. Organization, Consol101

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Earnings Per Share, Policy (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	170	165	113

Note 2. Investment Securitie102

Note 2. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Available For Sale Debt Securities Amortized Cost Basis	$ 433,892	$ 585,160
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2,786	4,849
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	8,077	6,129
Fixed maturities, available-for-sale	428,601	583,880
Available For Sale Equity Securities Amortized Cost Basis	8,514	12,456
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	56	1,586
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	144	147
Equity securities, available-for-sale	8,426	13,895
Corporate Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	172,621	264,162
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	93	1,076
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	5,868	3,314
Fixed maturities, available-for-sale	166,846	261,924
Residential Mortgage Backed Securities Member
Available For Sale Debt Securities Amortized Cost Basis	3,068	5,073
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2	55
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	14	22
Fixed maturities, available-for-sale	3,056	5,106
Commercial Mortgage Backed Securities
Available For Sale Debt Securities Amortized Cost Basis	899	975
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	296
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax		22
Fixed maturities, available-for-sale	1,195	953
US Treasury Securities
Available For Sale Debt Securities Amortized Cost Basis	44,738	22,766
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	120	126
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	64
Fixed maturities, available-for-sale	44,794	22,892
US Government Agencies Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	34	65
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	1	4
Fixed maturities, available-for-sale	35	69
US Government-sponsored Enterprises Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	11,814	14,706
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2	36
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	254	86
Fixed maturities, available-for-sale	11,562	14,656
US States and Political Subdivisions Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	194,364	238,514
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2,159	3,253
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	1,857	2,386
Fixed maturities, available-for-sale	194,666	239,381
Foreign Government Debt
Available For Sale Debt Securities Amortized Cost Basis	2,318	34,863
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	12	136
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	6	299
Fixed maturities, available-for-sale	2,324	34,700
Redeemable Preferred Stock
Available For Sale Debt Securities Amortized Cost Basis	4,036	4,036
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	101	163
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	14
Fixed maturities, available-for-sale	4,123	4,199
COMMON STOCK
Available For Sale Equity Securities Amortized Cost Basis	4,926	8,452
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax		1,452
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	142	147
Equity securities, available-for-sale	4,784	9,757
Nonredeemable Preferred Stock
Available For Sale Equity Securities Amortized Cost Basis	3,588	4,004
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	56	134
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	2
Equity securities, available-for-sale	$ 3,642	$ 4,138

Note 2. Investment Securitie103

Note 2. Investment Securities: Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Details
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis	$ 3,726
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	3,726
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis	99,796
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	99,036
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis	118,608
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	117,379
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis	196,922
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	193,584
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	14,840
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	14,876
Available For Sale Debt Securities Amortized Cost Basis	433,892	$ 585,160
Fixed maturities, available-for-sale	$ 428,601	$ 583,880

Note 2. Investment Securitie104

Note 2. Investment Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Details) $ in Thousands	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	$ 210,357	$ 161,904
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	3,709	2,540
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	91,565	161,489
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	4,512	3,736
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	301,922	323,393
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 8,221	$ 6,276
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year	99	70
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year	31	46
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	130	116
Corporate Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	$ 101,903	$ 77,868
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	2,559	1,473
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	55,217	69,498
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	3,309	1,841
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	157,120	147,366
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	5,868	3,314
Residential Mortgage Backed Securities Member
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	2,867	2,062
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	14	16
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		1,562
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		6
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	2,867	3,624
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	14	22
US Treasury Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	19,809
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	64
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	19,809
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	64
US Government-sponsored Enterprises Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	6,539
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	128
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	4,997	9,581
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	126	86
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	11,536	9,581
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	254	86
US States and Political Subdivisions Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	68,898	58,819
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	780	744
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	31,351	67,318
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	1,077	1,642
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	100,249	126,137
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	1,857	2,386
Foreign Government Debt
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	484	21,148
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	6	171
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		12,229
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		128
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	484	33,377
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	6	299
Redeemable Preferred Stock
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	3,749
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	14
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	3,749
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	14
Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	204,249	159,897
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	3,565	2,404
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	91,565	161,141
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	4,512	3,725
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	295,814	321,038
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	8,077	6,129
COMMON STOCK
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	4,784	2,007
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	142	136
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		348
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		11
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	4,784	2,355
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	142	147
Nonredeemable Preferred Stock
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	1,324
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	2
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,324
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	2
Equity Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	6,108	2,007
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	144	136
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		348
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		11
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	6,108	2,355
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 144	147
Commercial Mortgage Backed Securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		953
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		22
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value		953
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		$ 22

Note 2. Investment Securitie105

Note 2. Investment Securities: Investment Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Gross Investment Income, Operating	$ 17,402	$ 21,771	$ 27,667
Investment Income, Investment Expense	104	79	196
Net investment income	17,298	21,692	27,471
Fixed Maturities
Gross Investment Income, Operating	15,364	18,504	22,667
Equity Securities
Gross Investment Income, Operating	845	943	1,065
Short-term Investments
Gross Investment Income, Operating	66	74	118
Policy Loans
Gross Investment Income, Operating	427	813	1,020
Partnership Interest
Gross Investment Income, Operating	405	1,101	2,506
Other Long-term Investments
Gross Investment Income, Operating	$ 295	$ 336	$ 291

Note 2. Investment Securitie106

Note 2. Investment Securities: Realized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	$ 5,203	$ 7,637	$ 17,841
Trading Securities, Realized Gain (Loss)	(1,653)	506	1,619
Marketable Securities, Realized Gain (Loss), Excluding Other than Temporary Impairments	3,550	8,143	19,460
Trading Securities, Change in Unrealized Holding Gain (Loss)	(452)	(451)	94
Marketable Securities, Unrealized Gain (Loss), Excluding Other than Temporary Impairments	(452)	(451)	94
Gain (Loss) on Sale of Other Investments	(4)	(4)	196
Net realized investment gains	3,094	7,688	19,750
Debt Securities
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	3,533	7,642	17,664
COMMON STOCK
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	1,519	$ (5)
Nonredeemable Preferred Stock
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	$ 151		$ 177

Note 2. Investment Securities (

Note 2. Investment Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds	$ 640,902	$ 355,740	$ 563,285
Available-for-sale Securities, Gross Realized Gains	6,412	9,289	21,889
Available-for-sale Securities, Gross Realized Losses	805	741	$ 2,902
Net impairment losses recognized in earnings	228
Equity Securities
Net impairment losses recognized in earnings	228
Collateralized Mortgage Backed Securities
Accumulated Other Comprehensive Income (Loss), Other than Temporary Impairment, Not Credit Loss, Net of Tax, Available-for-sale, Debt Securities	$ 276	$ 335

Note 2. Investment Securitie108

Note 2. Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - Available-for-sale Securities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2012
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held	$ 473	$ 473	$ 473	$ 1,976
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold	$ 1,503

Note 3. Cash Flow Hedge (Detail

Note 3. Cash Flow Hedge (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Notes Payable to Banks
Long Term Debt Percentage Bearing Fixed Interest Rate	4.95%	4.95%
Interest Rate Swap | Designated as Hedging Instrument
Derivative Liability Notional Amount	$ 2,000	$ 4,000
Derivative Fixed Interest Rate	1.60%	1.60%
Interest Rate Swap | Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities
Derivative Liability, Fair Value, Gross Liability	$ 11	$ 83

Note 4. Fair Value Disclosur110

Note 4. Fair Value Disclosures: Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fixed maturities, available-for-sale	$ 428,601	$ 583,880
Equity securities, available-for-sale	8,426	13,895
Trading securities	1,259	11,095
Corporate Debt Securities
Fixed maturities, available-for-sale	166,846	261,924
Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	3,056	5,106
Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale	1,195	953
US Treasury Securities
Fixed maturities, available-for-sale	44,794	22,892
US Government Agencies Debt Securities
Fixed maturities, available-for-sale	35	69
US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	11,562	14,656
US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	194,666	239,381
Foreign Government Debt
Fixed maturities, available-for-sale	2,324	34,700
Redeemable Preferred Stock
Fixed maturities, available-for-sale	4,123	4,199
COMMON STOCK
Equity securities, available-for-sale	4,784	9,757
Nonredeemable Preferred Stock
Equity securities, available-for-sale	3,642	4,138
Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	428,601	583,880
Equity securities, available-for-sale	8,426	13,895
Trading securities	1,259	11,095
Assets, Fair Value Disclosure, Recurring	438,286	608,870
Contingent Liabilities	1,650
Liabilities, Fair Value Disclosure, Recurring	1,661	83
Fair Value, Measurements, Recurring | Interest Rate Swap
Derivative Liability, Fair Value, Gross Liability	11	83
Fair Value, Measurements, Recurring | Corporate Debt Securities
Fixed maturities, available-for-sale	166,846	261,924
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	3,056	5,106
Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale	1,195	953
Fair Value, Measurements, Recurring | US Treasury Securities
Fixed maturities, available-for-sale	44,794	22,892
Fair Value, Measurements, Recurring | US Government Agencies Debt Securities
Fixed maturities, available-for-sale	35	69
Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	11,562	14,656
Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	194,666	239,381
Fair Value, Measurements, Recurring | Foreign Government Debt
Fixed maturities, available-for-sale	2,324	34,700
Fair Value, Measurements, Recurring | Redeemable Preferred Stock
Fixed maturities, available-for-sale	4,123	4,199
Fair Value, Measurements, Recurring | COMMON STOCK
Equity securities, available-for-sale	4,784	9,757
Fair Value, Measurements, Recurring | Nonredeemable Preferred Stock
Equity securities, available-for-sale	3,642	4,138
Fair Value, Measurements, Recurring | Equity Securities
Trading securities	1,259	11,095
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	4,123	4,199
Equity securities, available-for-sale	8,426	13,895
Trading securities	1,259	11,095
Assets, Fair Value Disclosure, Recurring	13,808	29,189
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Redeemable Preferred Stock
Fixed maturities, available-for-sale	4,123	4,199
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | COMMON STOCK
Equity securities, available-for-sale	4,784	9,757
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Nonredeemable Preferred Stock
Equity securities, available-for-sale	3,642	4,138
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Equity Securities
Trading securities	1,259	11,095
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	421,104	576,414
Assets, Fair Value Disclosure, Recurring	421,104	576,414
Liabilities, Fair Value Disclosure, Recurring	11	83
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Interest Rate Swap
Derivative Liability, Fair Value, Gross Liability	11	83
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Corporate Debt Securities
Fixed maturities, available-for-sale	166,846	261,924
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	3,056	5,106
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US Treasury Securities
Fixed maturities, available-for-sale	44,794	22,892
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US Government Agencies Debt Securities
Fixed maturities, available-for-sale	35	69
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	11,562	14,656
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	192,487	237,067
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign Government Debt
Fixed maturities, available-for-sale	2,324	34,700
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	3,374	3,267
Assets, Fair Value Disclosure, Recurring	3,374	3,267
Contingent Liabilities	1,650
Liabilities, Fair Value Disclosure, Recurring	1,650
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale	1,195	953
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	$ 2,179	$ 2,314

Note 4. Fair Value Disclosur111

Note 4. Fair Value Disclosures: Fair Value Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 3,374	$ 3,267	$ 3,034
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	271	302
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(164)	(69)
Fair Value, Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Liability, Assumed	1,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	1,650
Gain On Sale Of Subsidiary To Joint Venture
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	1,501
Investment Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(736)
Other Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(115)
Contingent Liability Member
Fair Value, Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Liability, Assumed	1,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	1,650
Contingent Liability Member | Gain On Sale Of Subsidiary To Joint Venture
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	1,501
Contingent Liability Member | Investment Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(736)
Contingent Liability Member | Other Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(115)
Commercial Mortgage Backed Securities
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	1,195	953	593
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	318	360
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(76)
US States and Political Subdivisions Debt Securities
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	2,179	2,314	$ 2,441
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	(47)	(58)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	$ (88)	$ (69)

Note 4. Fair Value Disclosur112

Note 4. Fair Value Disclosures: Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Funds on deposit	$ 173,350	$ 186,782
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2
Policy Loans Receivable	38	13,356
Funds on deposit	173,625	187,213
Long-term Debt	43,283	42,146
Carrying (Reported) Amount, Fair Value Disclosure
Policy Loans Receivable	38	10,667
Funds on deposit	173,350	186,782
Long-term Debt	$ 43,335	$ 42,146

Note 5. Other Investments_ O113

Note 5. Other Investments: Other Investments Table Text Block (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Other investments	$ 21,538	$ 25,251
Policy Loans
Other investments	38	10,667
Partnership Interest
Other investments	18,944	12,033
Variable Interest Entity, Not Primary Beneficiary
Other investments	1,146	1,146
Other Long-term Investments
Other investments	$ 1,410	$ 1,405

Note 6. Acquisition and Deco114

Note 6. Acquisition and Deconsolidation of Subsidiaries (Details) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended								8 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Apr. 30, 2015	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill	$ 52,940			$ 52,940				$ 50,318				$ 52,940	$ 52,940	$ 50,318	$ 50,318
TOTAL REVENUES				125,080	$ 140,418	$ 133,105	$ 134,265	127,090	$ 129,752	$ 136,019	$ 141,072		532,868	533,933	575,044
Net income (loss)				5,147	$ 14,888	$ 5,156	$ 5,331	$ 4,212	$ 4,824	$ 3,880	$ 4,005		30,522	16,921	15,256
Gain on sale of subsidiary to joint venture													9,940
Equity income from equity method investments													405	$ 1,106	$ 2,506
IHC Health Solutions Sale Transaction Member
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions		60.00%
Proceeds from Divestiture of Interest in Consolidated Subsidiaries		$ 6,000
Gain on sale of subsidiary to joint venture		9,940
Deconsolidation, Gain (Loss), Amount		11,441
Loss Contingency, Loss in Period		1,501
Deconsolidation, Revaluation of Retained Investment, Gain (Loss), Amount		$ 5,441
Loss Contingency Accrual, Period Increase (Decrease)													(736)
Innovative Medical Risk Management Inc Sale Transaction Member
Proceeds from Divestiture of Interest in Consolidated Subsidiaries	1,084
Ebix Health Exchange Holdings Member
Equity Method Investments	$ 9,838			$ 9,838								$ 9,838	$ 9,838
Equity Method Investment, Ownership Percentage	60.00%			60.00%								60.00%	60.00%
Equity Method Investment, Summarized Financial Information, Net Income (Loss)													$ (1,007)
Equity income from equity method investments													(271)
Ebix Health Exchange Holdings Member | Legal Entity, Ebix Inc Member
Equity Method Investment, Ownership Percentage		40.00%			40.00%
Third Party Option To Increase Ownership In Joint Venture, Percentage		50.00%
Third Party Option To Increase Ownership In Joint Venture, Period		3
Ebix Health Exchange Holdings Member | Legal Entity, Ebix Inc Member | Cash
Other Ownership Interests, Contributed Capital		$ 6,000			$ 6,000
Ebix Health Exchange Holdings Member | Legal Entity, Ebix Inc Member | Software License Member
Other Ownership Interests, Contributed Capital		$ 2,000			$ 2,000
Accounts Payable and Accrued Liabilities | Ebix Health Exchange Member
Due to Related Parties	$ 405			$ 405								$ 405	405
Other Assets | Ebix Health Exchange Member
Due from Related Parties	1,397			$ 1,397								1,397	1,397
Other Income | Innovative Medical Risk Management Inc Sale Transaction Member
Deconsolidation, Gain (Loss), Amount	$ 679
Fee Income Member | Ebix Health Exchange Member
Revenue from Related Parties													80
Selling, General and Administrative Expenses | Ebix Health Exchange Member
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party													$ 1,477
GAF Acquiree Member
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage			40.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage			80.00%
Business Combination, Step Acquisition, Percentage of Interest Acquired			40.00%
Payments to Acquire Businesses, Gross			$ 325
Business Combination, Consideration Transferred, Other			1,195
Equity Method Investments			1,908
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss			692
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value			1,216
Nonmonetary Transaction, Gain (Loss) Recognized on Transfer			1,195
Goodwill			5,703
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill			5,500
Business Combination, Consideration Transferred			1,520
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value			608
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net			(2,359)
TOTAL REVENUES												6,954
Net income (loss)												$ 607
GAF Acquiree Member | Accounts Payable and Accrued Liabilities
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contingent Liability			1,000
GAF Acquiree Member | Other Income
Business Combination, Step Acquisition, Total Gain (Loss)			$ 503

Note 6. Acquisition and Deco115

Note 6. Acquisition and Deconsolidation of Subsidiaries: Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - GAF Acquiree Member $ in Thousands	Apr. 30, 2015USD ($)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	$ 836
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	5,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	1,405
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	7,741
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	4,369
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent	1,925
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	3,806
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	10,100
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	$ (2,359)

Note 7. Goodwill and Other I116

Note 7. Goodwill and Other Intangible Assets: Schedule of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill	$ 52,940	$ 50,318	$ 50,318
Goodwill, Acquired During Period	5,703
Goodwill, Written off Related to Sale of Business Unit	3,081
Medical Stop-Loss Segment Member
Goodwill	5,664	5,664	5,664
Fully Insured Segment Member
Goodwill	47,276	$ 44,654	$ 44,654
Goodwill, Acquired During Period	5,703
Goodwill, Written off Related to Sale of Business Unit	$ 3,081

Note 7. Goodwill and Other I117

Note 7. Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Apr. 30, 2015	Dec. 31, 2015	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2012
Intangible Assets, Net (Excluding Goodwill)		$ 15,517	$ 14,767	$ 12,135	$ 18,271
Net Intangible Assets Written off Related to Sale Of Business Unit		122	$ 101
Fully Insured Segment Member
Net Intangible Assets Written off Related to Sale Of Business Unit		$ 122
GAF Acquiree Member
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 5,500
GAF Acquiree Member | Fully Insured Segment Member
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	5,500
GAF Acquiree Member | Fully Insured Segment Member | Trademarks
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 1,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	8 years
GAF Acquiree Member | Fully Insured Segment Member | Customer Relationships
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 4,500
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	9 years
GeneveAndAffiliatedInsidersMember
EntityCommonStockOutstandingOwnershipPercent		57.00%

Note 7. Goodwill and Other I118

Note 7. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets, Gross	$ 24,529	$ 22,725
Finite-Lived Intangible Assets, Accumulated Amortization	16,989	18,567
Customer Relationships
Finite-Lived Intangible Assets, Gross	23,529	22,725
Finite-Lived Intangible Assets, Accumulated Amortization	16,906	$ 18,567
Trademarks
Finite-Lived Intangible Assets, Gross	1,000
Finite-Lived Intangible Assets, Accumulated Amortization	$ 83

Note 7. Goodwill and Other I119

Note 7. Goodwill and Other Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 7,977	$ 7,977
Licensing Agreements
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 7,977	$ 7,977

Note 7. Goodwill and Other I120

Note 7. Goodwill and Other Intangible Assets: Schedule of Intangible Assets, Net, Table Text Block (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Intangible Assets, Net (Excluding Goodwill)	$ 12,135	$ 14,767	$ 18,271
Finite-lived Intangible Assets Acquired	5,500		(183)
Net Intangible Assets Written off Related to Sale Of Business Unit	122		101
Amortization of Intangible Assets	1,996	2,632	3,220
Intangible Assets, Net (Excluding Goodwill)	$ 15,517	$ 12,135	$ 14,767

Note 7. Goodwill and Other I121

Note 7. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2015USD ($)
Details
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 1,925
Finite-Lived Intangible Assets, Amortization Expense, Year Two	1,551
Finite-Lived Intangible Assets, Amortization Expense, Year Three	1,210
Finite-Lived Intangible Assets, Amortization Expense, Year Four	849
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 622

Note 8. Reinsurance_ Effects122

Note 8. Reinsurance: Effects of Reinsurance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Direct Premiums Earned	$ 596,325	$ 557,395	$ 526,597
Assumed Premiums Earned	33,152	58,191	92,281
Ceded Premiums Earned	149,943	136,538	122,887
Premiums earned	479,534	479,048	495,991
Policyholder Benefits and Claims Incurred, Direct	365,634	276,634	374,865
Policyholder Benefits and Claims Incurred, Assumed	24,956	50,441	82,337
Policyholder Benefits and Claims Incurred, Ceded	83,412	1,040	102,412
Insurance benefits, claims and reserves	307,178	326,035	354,790
Accident and Health Insurance Product Line
Direct Premiums Earned	513,814	482,511	461,336
Assumed Premiums Earned	28,822	52,063	85,627
Ceded Premiums Earned	126,613	116,163	102,053
Premiums earned	416,023	418,411	444,910
Life and Annuity Insurance Product Line
Direct Premiums Earned	46,699	44,407	46,416
Assumed Premiums Earned	4,330	6,128	6,654
Ceded Premiums Earned	23,078	20,214	20,820
Premiums earned	27,951	30,321	32,250
Property, Liability and Casualty Insurance Product Line
Direct Premiums Earned	35,812	30,477	18,845
Ceded Premiums Earned	252	161	14
Premiums earned	$ 35,560	$ 30,316	$ 18,831

Note 8. Reinsurance (Details)

Note 8. Reinsurance (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Jul. 31, 2015	May. 31, 2013	Jun. 30, 2013	Dec. 31, 2015	Dec. 31, 2014
Due from reinsurers				$ 480,859	$ 278,242
Other assets				$ 64,505	$ 65,636
Coinsurance And Sale Transaction With National Guardian Life Insurance Company Member
Material Nonrecurring Reinsurance Transactions	On July 31, 2015, Madison National Life and Standard Security Life together entered into a coinsurance and sale agreement with an unaffiliated reinsurer, National Guardian Life Insurance Company (“NGL”), to: (i) cede substantially all of their individual life and annuity policy blocks currently in run-off; and (ii) sell the related infrastructure associated with the administration of such policies. The Company transferred $207,964,000 of cash to NGL, net of the aggregate consideration of $42,000,000 for the coinsurance and sale transaction. As a result of this transaction, the Company: (i) recorded $234,740,000 of estimated amounts due from reinsurers; (ii) recorded a $31,192,000 decrease in deferred acquisition costs associated with the ceded policies; (iii) recorded a $9,866,000 decrease in policy loans; (iv) recorded $7,686,000 of estimated costs of reinsurance (included in other assets) which will be amortized over the life of the underlying reinsured contracts; and (v) recognized a $5,053,000 pre-tax gain (included in other income) on the sale of the assets associated with the administration of the ceded policies, net of disposal costs.
Payment To Reinsurer For Coinsurance And Sale Transaction	$ 207,964
Purchase Price Received	42,000
Due from reinsurers	234,740
Deferred Policy Acquisition Costs, Period Increase (Decrease)	(31,192)
Increase (Decrease) in Policy Loans Receivable	(9,866)
Other assets	7,686
Coinsurance And Sale Transaction With National Guardian Life Insurance Company Member | Other Income
Gain (Loss) on Disposition of Other Assets	$ 5,053
Madison National Life Coinsurance Transaction With Guggenheim Life And Annuity Member
Material Nonrecurring Reinsurance Transactions		Effective May 31, 2013, Madison National Life entered into a coinsurance agreement with an unaffiliated reinsurer, Guggenheim Life and Annuity Company, to cede approximately $218,633,000 of life and annuity reserves and, in accordance with its terms, transferred net cash and other assets, with an aggregate value of $215,137,000, to the reinsurer during the second quarter of 2013. As a result of this transaction, the Company: (i) recorded estimated amounts due from reinsurers of $218,296,000; (ii) recorded $6,643,000 of estimated deferred expenses (included in other assets) which will be amortized over the life of the underlying reinsured contracts; and (iii) wrote-off $9,307,000 of deferred acquisition costs associated with this block of policies. The write-off was more than offset by gains realized by the Company in the transaction, most of which resulted from the required sale and transfer of invested assets. During 2014, a large portion of the reserves were transferred to the reinsurer in accordance with the terms of an assumption agreement.
Madison National Life Coinsurance Transaction With Guggenheim Life And Annuity Member | Life and Annuity Insurance Product Line
Due from reinsurers		$ 218,296
Other assets		6,643
Liability for Future Policy Benefits, Portion Ceded		218,633
Payments For Reinsurance Under Coinsurance Agreement			$ 215,137
Deferred Policy Acquisition Cost, Amortization Expense, Effect of Adjustments to Estimated Gross Profit		$ 9,307

Note 9. Policy Benefits and 124

Note 9. Policy Benefits and Claims: Schedule of Liability for Unpaid Claims and Claims Adjustment Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Liability for Claims and Claims Adjustment Expense, Beginning Balance	$ 236,803	$ 237,754	$ 194,480
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments, Beginning Balance	78,531	72,772	78,629
Liability for Unpaid Claims and Claims Adjustment Expense, Net, Beginning Balance	158,272	164,982	115,851
Claims and Claims Adjustment Expenses Assumed	10,343		15,384
Current Year Claims and Claims Adjustment Expense	294,390	303,973	324,040
Prior Year Claims and Claims Adjustment Expense	(8,488)	(4,552)	(3,230)
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims	285,902	299,421	320,810
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Current Year	169,488	192,001	207,315
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years	104,948	114,130	79,748
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid	274,436	306,131	287,063
Liability for Unpaid Claims and Claims Adjustment Expense, Net, Ending Balance	180,081	158,272	164,982
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments, Ending Balance	65,362	78,531	72,772
Liability for Claims and Claims Adjustment Expense, Ending Balance	$ 245,443	$ 236,803	$ 237,754

Note 9. Policy Benefits and 125

Note 9. Policy Benefits and Claims (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Prior Year Claims and Claims Adjustment Expense	$ (8,488)	$ (4,552)	$ (3,230)
Fully Insured Segment Member
Prior Year Claims and Claims Adjustment Expense	(7,977)	(378)	108
Group disability, life and DBL Segment Member
Prior Year Claims and Claims Adjustment Expense	(4,464)	(3,830)	(4,269)
Medical Stop-Loss Segment Member
Prior Year Claims and Claims Adjustment Expense	3,628	104	2,000
Individual life annuities and other Segment Member
Prior Year Claims and Claims Adjustment Expense	$ 325	$ (448)	$ (1,069)

Note 10. Debt and Junior Sub126

Note 10. Debt and Junior Subordinated Debt Securities: Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt	$ 5,189	$ 4,000
Junior subordinated debt securities	38,146	38,146
Independence Preferred Trust I Member
Trust Preferred Securities Issued Aggregate	10,000	10,000
Common Securities Issued By Unconsolidated Subsidiary Trusts	310	310
Independence Preferred Trust II Member
Trust Preferred Securities Issued Aggregate	12,000	12,000
Common Securities Issued By Unconsolidated Subsidiary Trusts	372	372
Independence Preferred Trust III Member
Trust Preferred Securities Issued Aggregate	15,000	15,000
Common Securities Issued By Unconsolidated Subsidiary Trusts	464	464
Notes Payable to Banks
Debt	2,000	4,000
Notes Payable, Other Payables
Debt	2,964
Line of Credit
Debt	225
Junior Subordinated Debt
Junior subordinated debt securities	38,146	38,146
Junior Subordinated Debt | Junior Subordinated Debt - Trust I
Junior subordinated debt securities	10,310	10,310
Junior Subordinated Debt | Junior Subordinated Debt - Trust II
Junior subordinated debt securities	12,372	12,372
Junior Subordinated Debt | Junior Subordinated Debt - Trust III
Junior subordinated debt securities	$ 15,464	$ 15,464

Note 10. Debt and Junior Sub127

Note 10. Debt and Junior Subordinated Debt Securities (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
		Apr. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Repayment of long-term debt			$ 2,617	$ 2,000	$ 2,000
Interest Paid			$ 1,738	$ 1,804	$ 1,923
GAF Acquiree Member
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		$ 3,806
Notes Payable to Banks
Long Term Debt Percentage Bearing Fixed Interest Rate			4.95%	4.95%
Notes Payable, Other Payables | GAF Acquiree Member
Long Term Debt Percentage Bearing Fixed Interest Rate		2.50%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		$ 3,506
Debt Instrument, Maturity Date Range, End		Jan. 2, 2019
Line of Credit | GAF Acquiree Member
Long Term Debt Percentage Bearing Fixed Interest Rate		4.00%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		$ 300
Junior Subordinated Debt
Debt Instrument, Maturity Date Range, End			Dec. 31, 2034
Debt Instrument, Maturity Date Range, Start			Apr. 30, 2033
Debt Instrument, Redemption Price, Percentage			100.00%
Junior Subordinated Debt | Junior Subordinated Debt - Trust I
Debt Instrument, Basis Spread on Variable Rate			4.00%
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate			4.32%
Junior Subordinated Debt | Junior Subordinated Debt - Trust II
Debt Instrument, Basis Spread on Variable Rate			3.90%
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate			4.22%
Junior Subordinated Debt | Junior Subordinated Debt - Trust III
Debt Instrument, Basis Spread on Variable Rate			3.50%
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate			4.01%
Consolidated Entity Excluding Variable Interest Entities (VIE) | Notes Payable to Banks
Debt Instrument, Maturity Date			Jul. 1, 2016
Debt Instrument, Basis Spread on Variable Rate			3.35%
Debt Instrument, Periodic Payment, Principal	[1]		$ 2,000
Long Term Debt Percentage Bearing Fixed Interest Rate			4.95%	4.95%
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure
Trust Preferred Securities Issued Aggregate			$ 37,000	$ 37,000
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Other Investments
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets			1,146	1,146
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Junior Subordinated Debt
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities			$ 38,146	$ 38,146
[1]	Annually from July 1, 2012 through maturity.

Note 11. Income Taxes_ Sched128

Note 11. Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Current Federal Tax Expense (Benefit)	$ 14,415	$ 20	$ (1,500)
Current State and Local Tax Expense (Benefit)	1,012	743	1,206
Current Income Tax Expense (Benefit)	15,427	763	(294)
Deferred Federal Income Tax Expense (Benefit)	2,119	5,317	8,805
Deferred State and Local Income Tax Expense (Benefit)	120	311	(113)
Deferred tax expense (benefits)	2,239	5,628	8,692
Income taxes (benefits)	$ 17,666	$ 6,391	$ 8,398

Note 11. Income Taxes (Details)

Note 11. Income Taxes (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		35.00%	35.00%	35.00%
Deferred Tax Assets, Net		$ 11,252	$ 13,977
Income Taxes Paid (Refunds), Net		10,974	(2,448)	$ (387)
AMIC
Deferred Tax Assets, Net		16,215	20,027
Valuation Allowance, Deferred Tax Asset, Change in Amount			(3,062)
AMIC | Valuation Allowance, Operating Loss Carryforwards
Valuation Allowance, Deferred Tax Asset, Change in Amount			$ (2,500)
AMIC | Domestic Tax Authority
Operating Loss Carryforwards	[1]	258,061
IHC And NonLife Subsidiaries Excluding AMIC Member | Domestic Tax Authority
Operating Loss Carryforwards	[2]	$ 3,533
[1]	Which expire in varying amounts through 2028, a significant portion expires in 2020.
[2]	Which expire in 2032.

Note 11. Income Taxes_ Sched130

Note 11. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	$ 16,866	$ 8,159	$ 8,279
Income Tax Reconciliation, Tax Exempt Income and Dividends Received Deduction	796	1,384	849
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount	735	685	710
Effective Income Tax Rate Reconciliation, Health Insurance Excise Tax	526	696
Effective Income Tax Rate Reconciliation, Health Insurer Compensation Limit	516	661
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount		(2,500)
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount	(181)	74	258
Income taxes (benefits)	$ 17,666	$ 6,391	$ 8,398

Note 11. Income Taxes_ Sched131

Note 11. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets, Deferred Expense, Deferred Policy Acquisition Cost		$ 754
Deferred Tax Assets, Investments	$ 1,935
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Impairment Losses	205	165
Deferred Tax Assets, Operating Loss Carryforwards, Domestic	91,558	102,478
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities	461	366
Deferred Tax Assets, Other	5,614	7,126
Deferred Tax Assets, Gross	99,773	110,889
Deferred Tax Assets, Net of Valuation Allowance	25,686	36,802
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost	111	10,712
Deferred Tax Liabilities, Tax Deferred Expense, Reserves and Accruals, Policyholder Liabilities	4,180	6,856
Deferred Tax Liabilities, Investments		78
Deferred Tax Liabilities, Goodwill and Intangible Assets	6,175	2,315
Deferred Tax Liabilities, Other	3,968	2,864
Deferred Tax Liabilities, Gross	14,434	22,825
Deferred Tax Assets, Net	11,252	13,977
AMICSubsidiariesMember
Deferred Tax Assets, Valuation Allowance	$ 74,087	$ 74,087

Note 12. Stockholders' Equity (

Note 12. Stockholders' Equity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Aug. 31, 2014
Preferred Stock, Shares Authorized	100,000	100,000
Preferred Stock, Par or Stated Value Per Share	$ 1	$ 1
IhcShareRepurchaseProgramMember
Stock Repurchase Program, Number of Shares Authorized to be Repurchased				500,000
Treasury Stock, Shares, Acquired	143,307	296,775	334,305
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	324,911

Note 12. Stockholders' Equit133

Note 12. Stockholders' Equity: Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accumulated other comprehensive income (loss)	$ (3,440)	$ 22	$ (10,472)	$ 15,013
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(256)	15,944	(14,265)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	3,206	5,251	11,826
Other comprehensive income (loss), net of tax	(3,462)	10,693	(26,091)
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	(5)	(199)	665
Unrealized Gains/Losses Purchased from Noncontrolling Interests	5		(59)
Accumulated Net Unrealized Investment Gain (Loss)
Accumulated other comprehensive income (loss)	(3,433)	72	(10,350)	15,231
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(299)	15,872	(14,361)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	3,206	5,251	11,826
Other comprehensive income (loss), net of tax	(3,505)	10,621	(26,187)
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	(5)	(199)	665
Unrealized Gains/Losses Purchased from Noncontrolling Interests	5		(59)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges
Accumulated other comprehensive income (loss)	(7)	(50)	(122)	$ (218)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	43	72	96
Other comprehensive income (loss), net of tax	$ 43	$ 72	$ 96

Note 12. Stockholders' Equit134

Note 12. Stockholders' Equity: Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net realized investment gains									$ 3,094	$ 7,688	$ 19,750
Net impairment losses recognized in earnings									228
Income (loss) before income taxes									48,188	23,312	23,654
Income taxes (benefits)									17,666	6,391	8,398
Net income (loss)	$ 5,147	$ 14,888	$ 5,156	$ 5,331	$ 4,212	$ 4,824	$ 3,880	$ 4,005	30,522	16,921	15,256
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss)
Net realized investment gains									5,202	7,637	17,841
Net impairment losses recognized in earnings									228
Income (loss) before income taxes									4,974	7,637	17,841
Income taxes (benefits)									1,768	2,386	6,015
Net income (loss)									$ 3,206	$ 5,251	$ 11,826

Note 13. Share-based Compens135

Note 13. Share-based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Independence Holding Company Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	369,861
Independence Holding Company Share Based Plans Total Member | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number	584,080	614,680
Independence Holding Company Share Based Plans Total Member | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Independence Holding Company Share Based Plans Total Member | Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
American Independence Corp Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	6,490,553
American Independence Corp Share Based Plans Total Member | Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number	71,558	166,616
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	62,669
American Independence Corp Share Based Plans Total Member | Employee Stock Option | Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years

Note 13. Share-based Compens136

Note 13. Share-based Compensation (Details) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	May. 31, 2014USD ($)	Mar. 31, 2013USD ($)	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)$ / sharesshares
Independence Holding Company Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares			369,861
Independence Holding Company Share Based Plans Total Member | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares			0	0	0
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options			$ 278		$ 430
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value			132		243
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options			$ 22		$ 85
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares			30,600
Independence Holding Company Share Based Plans Total Member | Modified Stock Option Awards Member
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected	15	5
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost	$ 405	$ 618
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		5 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		2 years
Independence Holding Company Share Based Plans Total Member | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares			7,425	7,425	7,425
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares			$ 11.78	$ 13.27	$ 11.66
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value			$ 89	$ 103	$ 69
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options			$ 129
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Period For Recognition 1			1 year 8 months 12 days
Independence Holding Company Share Based Plans Total Member | Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares			125,850	136,850
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | shares			11,000	112,200	14,850
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid			$ 61	$ 529	$ 74
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | shares					3,300
Independence Holding Company Share Based Plans Total Member | Stock Appreciation Rights (SARs) | Accounts Payable and Accrued Liabilities
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent			$ 743	791
Independence Holding Company Share Based Plans Total Member | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid					$ 83
American Independence Corp Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares			6,490,553
American Independence Corp Share Based Plans Total Member | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares			0
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options			$ 52	33
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value			$ 37	$ 38
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares				$ 5.70	$ 4.04
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares			8,890		0
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options			$ 40

Note 13. Share-based Compens137

Note 13. Share-based Compensation: Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Independence Holding Company Share Based Plans Total Member
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ 63	$ 306	$ 382
Allocated Share-based Compensation Expense, Net of Tax	94	462	577
Independence Holding Company Share Based Plans Total Member | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	157	768	959
Independence Holding Company Share Based Plans Total Member | Employee Stock Option | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	55	669	210
Independence Holding Company Share Based Plans Total Member | Restricted Stock Units (RSUs) | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	89	85	66
Independence Holding Company Share Based Plans Total Member | Stock Appreciation Rights (SARs) | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	13	14	698
Independence Holding Company Share Based Plans Total Member | Performance Shares | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense			(15)
American Independence Corp Share Based Plans Total Member
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	15	18	15
Allocated Share-based Compensation Expense, Net of Tax	28	34	27
American Independence Corp Share Based Plans Total Member | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	43	52	42
American Independence Corp Share Based Plans Total Member | Employee Stock Option | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	$ 43	$ 52	$ 42

Note 13. Share-based Compens138

Note 13. Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Details) - Employee Stock Option - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2013
Independence Holding Company Share Based Plans Total Member
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number	614,680
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 9.33
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	30,600
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 9.09
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number	584,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 9.35
American Independence Corp Share Based Plans Total Member
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number	166,616
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 10.50
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	8,890	0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$ 5.81
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number	71,558
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 8.88
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	26,001
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 8.90
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	60,167
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$ 13.82

Note 13. Share-based Compens139

Note 13. Share-based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding (Details) - Employee Stock Option $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Independence Holding Company Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares	584,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares	584,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares	$ 9.35
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ / shares	$ 9.35
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $	$ 2,631
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $	$ 2,631
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	1 year 3 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term	1 year 3 months 18 days
American Independence Corp Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares	71,558
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares	62,669
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares	$ 8.88
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ / shares	$ 8.74
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $	$ 73
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $	$ 70
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	4 years 2 months 8 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term	3 years 7 months 17 days

Note 13. Share-based Compens140

Note 13. Share-based Compensation: Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Details) - Independence Holding Company Share Based Plans Total Member - Restricted Stock Units (RSUs) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	14,850
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 12.09
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	7,425	7,425	7,425
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 11.78	$ 13.27	$ 11.66
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	7,425
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 11.44
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	14,850	14,850
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 12.26	$ 12.09

Note 13. Share-based Compens141

Note 13. Share-based Compensation: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - American Independence Corp Share Based Plans Total Member - Employee Stock Option	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.72%	2.30%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate	38.27%	45.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years	5 years

Note 14. Commitments and Con142

Note 14. Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
Operating Leases, Rent Expense, Net	$ 3,377	$ 3,403	$ 3,470

Note 14. Commitments and Con143

Note 14. Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands	Dec. 31, 2015USD ($)
Details
Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 2,865
Operating Leases, Future Minimum Payments, Due in Two Years	2,149
Operating Leases, Future Minimum Payments, Due in Three Years	2,048
Operating Leases, Future Minimum Payments, Due in Four Years	661
Operating Leases, Future Minimum Payments, Due in Five Years	385
Operating Leases, Future Minimum Payments Due	$ 8,108

Note 15. Concentration of Cr144

Note 15. Concentration of Credit Risk (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Assets Held by Insurance Regulators		$ 12,552	$ 12,523
Credit Concentration Risk
Fair Value, Concentration of Risk, Investments	[1]	$ 0
Credit Concentration Risk | Stockholders' Equity, Total
Concentration Risk, Percentage		10.00%
Reinsurer Concentration Risk | Stockholders' Equity, Total
Concentration Risk, Percentage		10.00%
[1]	Except for investments in obligations of the U.S. Government and its agencies and mortgage-backed securities issued by GSEs.

Note 15. Concentration of Cr145

Note 15. Concentration of Credit Risk: Ceded Credit Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Due from reinsurers	$ 480,859	$ 278,242
Ceded Credit Risk, Reinsurer, National Guardian Life Insurance Company | AM Best, A Rating
Due from reinsurers	236,577
Ceded Credit Risk, Reinsurer, Guggenheim Life And Annuity Company | AM Best, B++ Rating
Due from reinsurers	106,547
Ceded Credit Risk, Reinsurer, RGA Reinsurance Company | AM Best, A+ Rating
Due from reinsurers	40,224
Ceded Credit Risk, Reinsurer, Markel Bermuda Ltd | AM Best, A Rating
Due from reinsurers	$ 41,172

Note 16. Dividend Payment Re146

Note 16. Dividend Payment Restrictions and Statutory Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval	$ 30,513
Common stock dividend	1,562	[1]	$ 1,223	[2]	$ 1,241	[2]
MadisonNationalLifeSubsidiariesMember
Payments of Dividends	4,600		4,000		3,950
StandardSecurityLifeSubsidiariesMember
Payments of Dividends	6,000		6,000		8,000
IndependenceAmericanSubsidiariesMember
Payments of Dividends	$ 0		$ 0		$ 0
[1]	$0.09 per share
[2]	$0.07 per share

Note 16. Dividend Payment Re147

Note 16. Dividend Payment Restrictions and Statutory Information: Statutory Accounting Practices Disclosure (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
MadisonNationalLifeSubsidiariesMember
Statutory Accounting Practices, Statutory Net Income Amount	$ 20,326	$ 9,876	$ 11,704
Statutory Accounting Practices, Statutory Capital and Surplus, Balance	116,652	81,534
StandardSecurityLifeSubsidiariesMember
Statutory Accounting Practices, Statutory Net Income Amount	13,198	12,074	9,180
Statutory Accounting Practices, Statutory Capital and Surplus, Balance	125,070	116,525
IndependenceAmericanSubsidiariesMember
Statutory Accounting Practices, Statutory Net Income Amount	2,960	3,127	$ 3,176
Statutory Accounting Practices, Statutory Capital and Surplus, Balance	$ 63,412	$ 60,168

Note 17. Segment Reporting_ 148

Note 17. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
TOTAL REVENUES	$ 125,080	$ 140,418	$ 133,105	$ 134,265	$ 127,090	$ 129,752	$ 136,019	$ 141,072	$ 532,868	$ 533,933	$ 575,044
Income (loss) before income taxes									48,188	23,312	23,654
Amortization of Intangible Assets									1,996	2,632	3,220
TOTAL ASSETS	1,197,963				1,196,227				1,197,963	1,196,227
Operating Segments
TOTAL REVENUES									520,062	526,245	555,294
Income (loss) before income taxes									37,180	17,421	5,819
Segment Reconciling Items | Gain On Sale Of Subsidiary To Joint Venture
TOTAL REVENUES									9,940
Income (loss) before income taxes									9,940
Segment Reconciling Items | Net realized investment gains
TOTAL REVENUES									3,094	7,688	19,750
Income (loss) before income taxes									3,094	7,688	19,750
Segment Reconciling Items | Net Impairment Losses Recognized In Earnings
TOTAL REVENUES									(228)
Income (loss) before income taxes									(228)
Segment Reconciling Items | Interest Expense
Income (loss) before income taxes									(1,798)	(1,797)	(1,915)
Medical Stop-Loss Segment Member
TOTAL REVENUES									216,512	184,775	171,963
Income (loss) before income taxes									23,138	21,933	12,677
TOTAL ASSETS	291,330				235,429				291,330	235,429
Fully Insured Segment Member
TOTAL REVENUES									185,912	239,101	278,105
Income (loss) before income taxes									6,490	(1,987)	832
Amortization of Intangible Assets									1,488	1,948	2,393
TOTAL ASSETS	159,826				170,522				159,826	170,522
Group disability, life and DBL Segment Member
TOTAL REVENUES									90,314	67,641	63,155
Income (loss) before income taxes									15,811	12,168	8,647
TOTAL ASSETS	268,606				231,109				268,606	231,109
Individual life annuities and other Segment Member
TOTAL REVENUES									27,119	34,551	41,966
Income (loss) before income taxes									(122)	(6,618)	(10,396)
Amortization of Other Deferred Charges									1,323	3,540
TOTAL ASSETS	436,941				525,519				436,941	525,519
Corporate
TOTAL REVENUES									205	177	105
Income (loss) before income taxes									(8,137)	(8,075)	$ (5,941)
TOTAL ASSETS	$ 41,260				$ 33,648				$ 41,260	$ 33,648

Note 18. Quarterly Data (una149

Note 18. Quarterly Data (unaudited): Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Details
TOTAL REVENUES	$ 125,080	$ 140,418	$ 133,105	$ 134,265	$ 127,090	$ 129,752	$ 136,019	$ 141,072	$ 532,868	$ 533,933	$ 575,044
Net income (loss)	5,147	14,888	5,156	5,331	4,212	4,824	3,880	4,005	30,522	16,921	15,256
(Income) loss from noncontrolling interests in subsidiaries	(214)	(128)	(124)	(112)	(178)	(114)	(32)	(304)	(578)	(628)	(1,477)
NET INCOME (LOSS) ATTRIBUTABLE TO IHC	$ 4,933	$ 14,760	$ 5,032	$ 5,219	$ 4,034	$ 4,710	$ 3,848	$ 3,701	$ 29,944	$ 16,293	$ 13,779
Basic income (loss) per common share	$ 0.29	$ 0.85	$ 0.29	$ 0.30	$ 0.23	$ 0.27	$ 0.22	$ 0.21	$ 1.73	$ 0.93	$ 0.78
Diluted income (loss) per common share	$ 0.28	$ 0.85	$ 0.29	$ 0.30	$ 0.23	$ 0.27	$ 0.22	$ 0.21	$ 1.71	$ 0.92	$ 0.77

Note 19. Subsequent Events (Det

Note 19. Subsequent Events (Details) - Subsequent Event Risk Solutions Sale And Coinsurance Transaction Member $ in Thousands	1 Months Ended
	Mar. 31, 2016USD ($)
Subsequent Event, Description	On March 31, 2016, IHC and its subsidiary Independence American sold the stock of Risk Solutions to Swiss Re Corporate Solutions, a division of Swiss Re (“Swiss Re”). In addition, under the purchase and sale agreement, all of the in-force stop-loss business of Standard Security Life and Independence American produced by Risk Solutions will be co-insured by Westport Insurance Corporation (“Westport”), Swiss Re’s largest US carrier, as of January 1, 2016. The aggregate purchase price was $152,500,000 in cash, subject to adjustments and settlements. Approximately 89% of the purchase price was allocated to AMIC, with the balance being paid to Standard Security Life and other IHC subsidiaries. The aforementioned transaction, which includes the sale of Risk Solutions and the corresponding coinsurance agreement, is collectively referred to as the “Risk Solutions Sale and Coinsurance Transaction”. IHC’s block of Medical Stop-Loss business is in run-off. The sale of Risk Solutions and exit from the medical stop-loss business represents a strategic shift that will have a major effect on the Company’s operations and financial results. The disposal transaction qualifies for reporting as discontinued operations in the first quarter of 2016 as a result of the Board of Directors commitment to a plan for its disposal in January 2016.
Sale And Coinsurance Transaction, Aggregate Consideration	$ 152,500
AMICSubsidiariesMember
Aggregate Consideration Allocated To An Entity, Expressed As A Percent	89.00%

Summary of Investments, Othe151

Summary of Investments, Other than Investments in Related Parties: SummaryOfInvestmentsOtherThanInvestmentsInRelatedPartiesTableTextBlock (Details) $ in Thousands	Dec. 31, 2015USD ($)
Summary of Investments, Other than Investments in Related Parties, Cost	$ 494,236
Summary of Investments, Other than Investments in Related Parties, Fair Value	488,159
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	488,159
US Treasury and Government
Summary of Investments, Other than Investments in Related Parties, Cost	56,586
Summary of Investments, Other than Investments in Related Parties, Fair Value	56,391
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	56,391
US States and Political Subdivisions Debt Securities
Summary of Investments, Other than Investments in Related Parties, Cost	194,364
Summary of Investments, Other than Investments in Related Parties, Fair Value	194,666
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	194,666
Foreign Government Debt
Summary of Investments, Other than Investments in Related Parties, Cost	2,318
Summary of Investments, Other than Investments in Related Parties, Fair Value	2,324
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	2,324
Public Utility, Bonds
Summary of Investments, Other than Investments in Related Parties, Cost	23,113
Summary of Investments, Other than Investments in Related Parties, Fair Value	25,606
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	25,606
All Other Corporate Bonds
Summary of Investments, Other than Investments in Related Parties, Cost	153,475
Summary of Investments, Other than Investments in Related Parties, Fair Value	145,491
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	145,491
Mandatorily Redeemable Preferred Stock
Summary of Investments, Other than Investments in Related Parties, Cost	4,036
Summary of Investments, Other than Investments in Related Parties, Fair Value	4,123
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	4,123
Fixed Maturities
Summary of Investments, Other than Investments in Related Parties, Cost	433,892
Summary of Investments, Other than Investments in Related Parties, Fair Value	428,601
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	428,601
Industrial, Miscellaneous, and All Others
Summary of Investments, Other than Investments in Related Parties, Cost	6,883
Summary of Investments, Other than Investments in Related Parties, Fair Value	6,043
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	6,043
Nonredeemable Preferred Stock
Summary of Investments, Other than Investments in Related Parties, Cost	3,588
Summary of Investments, Other than Investments in Related Parties, Fair Value	3,642
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	3,642
Equity Securities, Investment Summary
Summary of Investments, Other than Investments in Related Parties, Cost	10,471
Summary of Investments, Other than Investments in Related Parties, Fair Value	9,685
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	9,685
Policy Loans
Summary of Investments, Other than Investments in Related Parties, Cost	38
Summary of Investments, Other than Investments in Related Parties, Fair Value	38
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	38
Short-term Investments
Summary of Investments, Other than Investments in Related Parties, Cost	28,335
Summary of Investments, Other than Investments in Related Parties, Fair Value	28,335
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	28,335
Other Long-term Investments
Summary of Investments, Other than Investments in Related Parties, Cost	21,500
Summary of Investments, Other than Investments in Related Parties, Fair Value	21,500
Summary of Investments, Other than Investments in Related Parties, Carrying Amount	$ 21,500

Condensed Financial Informat152

Condensed Financial Information of Parent Company Only Disclosure: Condensed Balance Sheet (Details) - USD ($) $ in Thousands		Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013	Dec. 31, 2012
Cash and cash equivalents		$ 19,171		$ 25,083		$ 24,229	$ 23,945
Fixed maturities, available-for-sale		428,601		583,880
Trading securities		1,259		11,095
Other investments		21,538		25,251
Deferred Tax Assets, Net		11,252		13,977
Goodwill		52,940		50,318		50,318
Other assets		64,505		65,636
TOTAL ASSETS		1,197,963		1,196,227
Accounts payable, accruals and other liabilities		66,308		67,641
Junior subordinated debt securities		38,146		38,146
TOTAL LIABILITIES		$ 865,259		$ 886,615
Preferred stock	[1]
Common Stock		$ 18,569	[2]	$ 18,531	[3]
Paid-in capital		127,733		127,098
Accumulated other comprehensive income (loss)		(3,440)		22		(10,472)	15,013
Treasury stock, at cost		(13,961)	[4]	(12,141)	[5]
Retained earnings		194,450		166,177
TOTAL IHC STOCKHOLDERS' EQUITY		323,351		299,687
NONCONTROLLING INTERESTS IN SUBSIDIARIES		9,353		9,925
TOTAL EQUITY		332,704		309,612		286,816	311,357
TOTAL LIABILITIES AND EQUITY		1,197,963		1,196,227
Parent Company
Cash and cash equivalents		512		389		$ 61	$ 589
Fixed maturities, available-for-sale		24,549		9,647
Trading securities		620		1,916
Other investments		1,146		1,146
Equity Method Investments		368,836		395,780
Deferred Tax Assets, Net		3,730		11,414
Goodwill		228		228
Other assets		131		97
TOTAL ASSETS		399,752		420,617
Accounts payable, accruals and other liabilities		8,182		7,140
Due to Affiliate		12,417		57,220
Accrued Income Taxes		7,494		7,871
Junior subordinated debt securities		38,146		38,146
Dividends Payable		809		628
TOTAL LIABILITIES		67,048		111,005
Common Stock		18,569		18,531
Paid-in capital		127,733		127,098
Accumulated other comprehensive income (loss)		(3,440)		22
Treasury stock, at cost		(13,961)		(12,141)
Retained earnings		194,450		166,177
TOTAL IHC STOCKHOLDERS' EQUITY		323,351		299,687
NONCONTROLLING INTERESTS IN SUBSIDIARIES		9,353		9,925
TOTAL EQUITY		332,704		309,612
TOTAL LIABILITIES AND EQUITY		$ 399,752		$ 420,617
[1]	None issued.
[2]	$1 par value; 23,000,000 shares authorized, 18,569,183 shares issued and 17,265,758 shares outstanding.
[3]	$1 par value; 23,000,000 shares authorized, 18,531,158 shares issued and 17,371,040 shares outstanding.
[4]	1,303,425 treasury shares
[5]	1,160,118 treasury shares

Condensed Financial Informat153

Condensed Financial Information of Parent Company Only Disclosure (Details) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Common Stock, par value	$ 1	$ 1
Common Stock, shares authorized	23,000,000	23,000,000
Common Stock, shares issued	18,569,183	18,531,158
Common Stock, shares outstanding	17,265,758	17,371,040
Treasury Stock, shares	1,303,425	1,160,118
Parent Company
Common Stock, par value	$ 1	$ 1
Common Stock, shares authorized	23,000,000	23,000,000
Common Stock, shares issued	18,569,183	18,531,158
Common Stock, shares outstanding	17,265,758	17,371,040
Treasury Stock, shares	1,303,425	1,160,118

Condensed Financial Informat154

Condensed Financial Information of Parent Company Only Disclosure: Condensed Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net investment income									$ 17,298	$ 21,692	$ 27,471
Net realized investment gains									3,094	7,688	19,750
Other income									10,276	4,859	4,878
TOTAL REVENUES	$ 125,080	$ 140,418	$ 133,105	$ 134,265	$ 127,090	$ 129,752	$ 136,019	$ 141,072	532,868	533,933	575,044
Interest expense on debt									1,798	1,797	1,915
TOTAL EXPENSES									484,680	510,621	551,390
Income taxes (benefits)									17,666	6,391	8,398
Equity income from equity method investments									405	1,106	2,506
Net income (loss)	5,147	14,888	5,156	5,331	4,212	4,824	3,880	4,005	30,522	16,921	15,256
(Income) loss from noncontrolling interests in subsidiaries	(214)	(128)	(124)	(112)	(178)	(114)	(32)	(304)	(578)	(628)	(1,477)
NET INCOME (LOSS) ATTRIBUTABLE TO IHC	$ 4,933	$ 14,760	$ 5,032	$ 5,219	$ 4,034	$ 4,710	$ 3,848	$ 3,701	29,944	16,293	13,779
Parent Company
Net investment income									112	112	61
Net realized investment gains									(506)	(78)	349
Other income									1,800	2,129	2,327
TOTAL REVENUES									1,406	2,163	2,737
Interest expense on debt									1,567	1,546	1,563
General and Administrative Expense									5,506	5,606	4,301
TOTAL EXPENSES									7,073	7,152	5,864
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest									(5,667)	(4,989)	(3,127)
Income taxes (benefits)									(1,491)	(2,389)	(1,228)
Equity income from equity method investments									34,698	19,521	17,155
Net income (loss)									30,522	16,921	15,256
(Income) loss from noncontrolling interests in subsidiaries									(578)	(628)	(1,477)
NET INCOME (LOSS) ATTRIBUTABLE TO IHC									$ 29,944	$ 16,293	$ 13,779

Condensed Financial Informat155

Condensed Financial Information of Parent Company Only Disclosure: Condensed Cash Flow Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income (loss)	$ 5,147	$ 14,888	$ 5,156	$ 5,331	$ 4,212	$ 4,824	$ 3,880	$ 4,005	$ 30,522	$ 16,921	$ 15,256
Equity income from equity method investments									(405)	(1,106)	(2,506)
Other adjustments to reconcile net income									4,349	9,449	5,574
Net change in cash from operating activities									(164,724)	27,331	(162,316)
Purchases of fixed maturities									(521,417)	(421,285)	(462,823)
Sales of fixed maturities									629,376	353,143	551,756
Net change in cash from investing activities									168,328	(15,853)	181,689
Payments for repurchases of common stock									(1,820)	(3,972)	(3,636)
Cash paid in acquisitions of noncontrolling interests									(1,734)		(8,825)
Dividends paid									(1,392)	(1,233)	(620)
Other financing activities									353	(431)	(746)
Net change in cash from financing activities									(9,516)	(10,624)	(19,089)
Net change in cash and cash equivalents									(5,912)	854	284
Cash and cash equivalents, beginning of period				25,083				24,229	25,083	24,229	23,945
Cash and cash equivalents, end of period	19,171				25,083				19,171	25,083	24,229
Parent Company
Net income (loss)									30,522	16,921	15,256
Equity income from equity method investments									(34,698)	(19,521)	(17,155)
Other adjustments to reconcile net income									9,204	3,748	4,398
Increase (Decrease) in Other Operating Assets and Liabilities, Net									550	440	(1,609)
Net change in cash from operating activities									5,578	1,588	890
Change In Investments In and Advances To Subsidiaries									12,398	11,138	6,708
Purchases of fixed maturities									(20,857)	(9,953)
Sales of fixed maturities									5,915	2,751	3,260
Net change in cash from investing activities									(2,544)	3,936	9,968
Payments for repurchases of common stock									(1,820)	(3,972)	(3,636)
Cash paid in acquisitions of noncontrolling interests											(7,626)
Dividends paid									(1,392)	(1,233)	(620)
Other financing activities									301	9	496
Net change in cash from financing activities									(2,911)	(5,196)	(11,386)
Net change in cash and cash equivalents									123	328	(528)
Cash and cash equivalents, beginning of period				$ 389				$ 61	389	61	589
Cash and cash equivalents, end of period	$ 512				$ 389				$ 512	$ 389	$ 61

Supplementary Insurance Info156

Supplementary Insurance Information, for Insurance Companies Disclosure: Supplementary Insurance Information For Insurance Companies Disclosure Table Text Block (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplementary Insurance Information, Deferred Policy Acquisition Costs	$ 499	$ 30,806	$ 29,777
Supplementary Insurance Information, Liability for Future Policy Benefits, Losses, Claims and Loss Expense Reserves	689,417	700,626	800,029
Supplementary Insurance Information, Unearned Premiums	10,236	9,455	12,423
Supplementary Insurance Information, Premium Revenue	479,534	479,048	495,991
Supplementary Insurance Information, Net Investment Income	17,298	21,692	27,471
Supplementary Insurance Information, Benefits, Claims, Losses and Settlement Expense	307,178	326,035	354,790
Supplementary Insurance Information, Amortization of Deferred Policy Acquisition Costs	3,524	4,941	15,132
Supplementary Insurance Information, Other Operating Expense	172,180	177,848	179,553
Supplementary Insurance Information, Premiums Written	479,701	476,311	500,908
Medical Stop-Loss Segment Member
Supplementary Insurance Information, Liability for Future Policy Benefits, Losses, Claims and Loss Expense Reserves	100,088	80,128	72,307
Supplementary Insurance Information, Premium Revenue	209,765	176,941	166,302
Supplementary Insurance Information, Net Investment Income	4,435	4,327	5,055
Supplementary Insurance Information, Benefits, Claims, Losses and Settlement Expense	153,919	122,469	115,599
Supplementary Insurance Information, Other Operating Expense	39,455	40,373	43,687
Supplementary Insurance Information, Premiums Written	209,765	176,941	166,302
Fully Insured Segment Member
Supplementary Insurance Information, Deferred Policy Acquisition Costs	499	624	361
Supplementary Insurance Information, Liability for Future Policy Benefits, Losses, Claims and Loss Expense Reserves	42,165	50,767	57,323
Supplementary Insurance Information, Unearned Premiums	7,005	6,568	9,828
Supplementary Insurance Information, Premium Revenue	171,912	218,949	248,870
Supplementary Insurance Information, Net Investment Income	1,813	2,202	2,711
Supplementary Insurance Information, Benefits, Claims, Losses and Settlement Expense	93,916	146,431	177,290
Supplementary Insurance Information, Amortization of Deferred Policy Acquisition Costs	386	482	22
Supplementary Insurance Information, Other Operating Expense	85,120	94,175	99,961
Supplementary Insurance Information, Premiums Written	171,731	215,844	253,569
Group disability, life and DBL Segment Member
Supplementary Insurance Information, Liability for Future Policy Benefits, Losses, Claims and Loss Expense Reserves	141,837	147,823	147,426
Supplementary Insurance Information, Unearned Premiums	3,060	2,700	2,398
Supplementary Insurance Information, Premium Revenue	85,953	64,260	60,004
Supplementary Insurance Information, Net Investment Income	3,699	3,156	2,763
Supplementary Insurance Information, Benefits, Claims, Losses and Settlement Expense	47,646	37,537	37,463
Supplementary Insurance Information, Other Operating Expense	26,857	17,936	17,045
Supplementary Insurance Information, Premiums Written	86,304	64,632	60,227
Individual life annuities and other Segment Member
Supplementary Insurance Information, Deferred Policy Acquisition Costs		30,182	29,416
Supplementary Insurance Information, Liability for Future Policy Benefits, Losses, Claims and Loss Expense Reserves	405,327	421,908	522,973
Supplementary Insurance Information, Unearned Premiums	171	187	197
Supplementary Insurance Information, Premium Revenue	11,904	18,898	20,815
Supplementary Insurance Information, Net Investment Income	7,146	11,830	16,837
Supplementary Insurance Information, Benefits, Claims, Losses and Settlement Expense	11,697	19,598	24,438
Supplementary Insurance Information, Amortization of Deferred Policy Acquisition Costs	3,138	4,459	15,110
Supplementary Insurance Information, Other Operating Expense	12,406	17,112	12,814
Supplementary Insurance Information, Premiums Written	11,901	18,894	20,810
Corporate
Supplementary Insurance Information, Net Investment Income	205	177	105
Supplementary Insurance Information, Other Operating Expense	$ 8,342	$ 8,252	$ 6,046

Supplemental Schedule of Rei157

Supplemental Schedule of Reinsurance Premiums for Insurance Companies: Supplemental Schedule of Reinsurance Premiums For Insurance Companies Table Text Block (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Life Insurance in Force, Gross	$ 12,063,911	$ 11,054,484	$ 11,415,328
Life Insurance in Force, Assumed	129,231	418,775	333,200
Life Insurance in Force, Ceded	6,365,993	6,128,608	6,493,122
Life Insurance in Force, Net	$ 5,827,149	$ 5,344,651	$ 5,255,406
Life Insurance in Force, Percentage Assumed to Net	2.20%	7.80%	6.30%
Direct Premiums Earned	$ 596,325	$ 557,395	$ 526,597
Assumed Premiums Earned	33,152	58,191	92,281
Ceded Premiums Earned	149,943	136,538	122,887
Premiums earned	$ 479,534	$ 479,048	$ 495,991
Premiums, Percentage Assumed to Net	6.90%	12.10%	18.60%
Accident and Health Insurance Product Line
Direct Premiums Earned	$ 513,814	$ 482,511	$ 461,336
Assumed Premiums Earned	28,822	52,063	85,627
Ceded Premiums Earned	126,613	116,163	102,053
Premiums earned	$ 416,023	$ 418,411	$ 444,910
Premiums, Percentage Assumed to Net	6.90%	12.40%	19.20%
Life and Annuity Insurance Product Line
Direct Premiums Earned	$ 46,699	$ 44,407	$ 46,416
Assumed Premiums Earned	4,330	6,128	6,654
Ceded Premiums Earned	23,078	20,214	20,820
Premiums earned	$ 27,951	$ 30,321	$ 32,250
Premiums, Percentage Assumed to Net	15.50%	20.20%	20.60%
Property, Liability and Casualty Insurance Product Line
Direct Premiums Earned	$ 35,812	$ 30,477	$ 18,845
Ceded Premiums Earned	252	161	14
Premiums earned	$ 35,560	$ 30,316	$ 18,831
Premiums, Percentage Assumed to Net	0.00%	0.00%	0.00%