Independence Holding (IHC) 10-Q 9 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Nov. 07, 2016	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	Independence Holding Company
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Entity Central Index Key	701,869
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		17,067,875
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Public Float			$ 131,292
Trading Symbol	ihc

INDEPENDENCE HOLDING COMPANY CO

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (September 30, 2016 Unaudited) - USD ($) $ in Thousands		Sep. 30, 2016		Dec. 31, 2015
Investments:
Short-term investments		$ 8,151		$ 50
Securities purchased under agreements to resell		11,282		28,285
Trading securities		1,135		1,259
Fixed maturities, available-for-sale		472,348		428,601
Equity securities, available-for-sale		6,685		8,426
Other investments		21,178		21,538
Total investments		520,779		488,159
Cash and cash equivalents		79,208		17,500
Due and unpaid premiums		57,454		69,075
Due from reinsurers		478,845		483,073
Premium and claim funds		25,881		22,015
Goodwill		41,573		47,276
Other assets		47,065		57,934
Assets attributable to discontinued operations				12,931
TOTAL ASSETS		1,250,805		1,197,963
LIABILITIES:
Policy benefits and claims		242,819		245,443
Future policy benefits		233,261		270,624
Funds on deposit		150,651		173,350
Unearned premiums		11,567		10,236
Other policyholders' funds		9,797		11,822
Due to reinsurers		66,577		46,355
Accounts payable, accruals and other liabilities		55,930		64,109
Liabilities attributable to discontinued operations		408		(15)
Debt				5,189
Junior subordinated debt securities		38,146		38,146
TOTAL LIABILITIES		809,156		865,259
IHC STOCKHOLDERS' EQUITY:
Preferred stock	[1]
Common Stock		18,586	[2]	18,569	[3]
Paid-in capital		126,001		127,733
Accumulated other comprehensive income (loss)		3,448		(3,440)
Treasury stock, at cost		(17,483)	[4]	(13,961)	[5]
Retained earnings		308,415		194,450
TOTAL IHC STOCKHOLDERS' EQUITY		438,967		323,351
NONCONTROLLING INTERESTS IN SUBSIDIARIES		2,682		9,353
TOTAL EQUITY		441,649		332,704
TOTAL LIABILITIES AND EQUITY		$ 1,250,805		$ 1,197,963
[1]	$1 par value; 100,000 shares authorized, none issued or outstanding.
[2]	$1 par value; 23,000,000 shares authorized, 18,585,858 shares issued and 17,067,875 shares outstanding.
[3]	$1 par value; 23,000,000 shares authorized, 18,569,183 shares issued and 17,265,758 shares outstanding.
[4]	1,517,983 treasury shares
[5]	1,303,425 treasury shares

INDEPENDENCE HOLDING COMPANY C3

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (September 30, 2016 Unaudited) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
STATEMENT OF FINANCIAL POSITION
Preferred Stock, par value	$ 1	$ 1
Preferred Stock, shares authorized	100,000	100,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 1	$ 1
Common Stock, shares authorized	23,000,000	23,000,000
Common Stock, shares issued	18,585,858	18,569,183
Common Stock, shares outstanding	17,067,875	17,265,758
Treasury Stock, shares	1,517,983	1,303,425

INDEPENDENCE HOLDING COMPANY C4

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
REVENUES:
Premiums earned	$ 67,335	$ 119,038	$ 195,524	$ 361,595
Net investment income	4,004	3,920	12,700	13,830
Fee income	4,050	2,201	12,541	9,195
Other income	2,261	5,790	8,898	8,349
Gain on sale of subsidiary to joint venture		10,161		10,161
Net realized investment gains	2,367	(1,109)	3,945	2,991
Other-than-temporary impairment losses:
Total other-than-temporary impairment losses	(1,475)	(228)	(1,475)	(228)
Net impairment losses recognized in earnings	(1,475)	(228)	(1,475)	(228)
TOTAL REVENUES	78,542	139,773	232,133	405,893
EXPENSES:
Insurance benefits, claims and reserves	38,277	74,218	109,497	233,218
Selling, general and administrative expenses	32,823	43,202	97,947	133,640
Interest expense on debt	440	444	1,366	1,354
TOTAL EXPENSES	71,540	117,864	208,810	368,212
Income (loss) from continuing operations before income taxes	7,002	21,909	23,323	37,681
Income taxes (benefits)	2,636	7,750	8,566	13,599
Income from continuing operations	4,366	14,159	14,757	24,082
Discontinued operations: (Note 3)
Income (loss) from discontinued operations, before income taxes		1,305	117,636	2,254
Income taxes (benefits) on discontinued operations		576	7,724	961
Income (loss) from discontinued operations	0	729	109,912	1,293
Net income (loss)	4,366	14,888	124,669	25,375
(Income) loss from noncontrolling interests in subsidiaries	(43)	(128)	(9,900)	(364)
NET INCOME (LOSS) ATTRIBUTABLE TO IHC	$ 4,323	$ 14,760	$ 114,769	$ 25,011
Basic income per common share: (Note 2)
Basic income (loss) per common share from continuing operations	$ 0.25	$ 0.81	$ 0.84	$ 1.37
Basic income (loss) per common share from discontinued operations	0	0.04	5.84	0.07
Basic income (loss) per common share	$ 0.25	$ 0.85	$ 6.68	$ 1.44
WEIGHTED AVERAGE SHARES OUTSTANDING	17,120	17,292	17,189	17,331
Diluted income per common share: (Note 2)
Diluted income (loss) per common share from continuing operations	$ 0.25	$ 0.81	$ 0.83	$ 1.36
Diluted income (loss) per common share from discontinued operations	0	0.04	5.77	0.07
Diluted income (loss) per common share	$ 0.25	$ 0.85	$ 6.60	$ 1.43
WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING	17,340	17,457	17,402	17,496

INDEPENDENCE HOLDING COMPANY C5

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
STATEMENT OF COMPREHENSIVE INCOME
Net income (loss)	$ 4,366	$ 14,888	$ 124,669	$ 25,375
Available-for-sale securities:
Unrealized gains (losses) on available-for-sale securities	(1,173)	2,982	10,734	(2,130)
Tax (benefit) on unrealized gains (losses) on available-for-sale securities	(418)	1,060	3,830	(818)
Unrealized gains (losses) on available-for-sale securities, net of tax	(755)	1,922	6,904	(1,312)
Other comprehensive income (loss), net of tax	(755)	1,922	6,904	(1,312)
Comprehensive income (loss), net of tax	3,611	16,810	131,573	24,063
Comprehensive (income) loss, net of tax, attributable to noncontrolling interests:
(Income) loss from noncontrolling interests in subsidiaries	(43)	(128)	(9,900)	(364)
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	47	(51)	(118)	(61)
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	47	(51)	(118)	(61)
Comprehensive (income) loss, net of tax, attributable to noncontrolling interests	4	(179)	(10,018)	(425)
Comprehensive income (loss), net of tax, attributable to IHC	$ 3,615	$ 16,631	$ 121,555	$ 23,638

INDEPENDENCE HOLDING COMPANY C6

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands	COMMON STOCK, AMOUNT	PAID-IN CAPITAL	ACCUMULATED OTHER COMPREHENSIVE INCOME(LOSS)	TREASURY STOCK, AT COST, AMOUNT	RETAINED EARNINGS	TOTAL IHC STOCKHOLDERS' EQUITY		NON-CONTROLLING INTERESTS	Total
Stockholders Equity at Dec. 31, 2015	$ 18,569	$ 127,733	$ (3,440)	$ (13,961)	$ 194,450	$ 323,351		$ 9,353	$ 332,704
Net income (loss)					114,769	114,769		9,900	124,669
Other comprehensive income (loss), net of tax			6,786			6,786		118	6,904
Repurchases of common stock				(3,522)		(3,522)			(3,522)
Purchases of noncontrolling interests		(2,332)	102			(2,230)		(15,911)	(18,141)
Common stock dividend					(773)	(773)	[1]		(773)	[1]
Share-based compensation and related tax effects	17	322				339			339
Distributions to noncontrolling interests								(847)	(847)
Other capital transactions		278			(31)	247		69	316
Stockholders Equity at Sep. 30, 2016	$ 18,586	$ 126,001	$ 3,448	$ (17,483)	$ 308,415	$ 438,967		$ 2,682	$ 441,649
[1]	$.045 per share.

INDEPENDENCE HOLDING COMPANY C7

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (Unaudited)	9 Months Ended
	Sep. 30, 2016$ / shares
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Common stock dividends declared, per share	$ 0.045

INDEPENDENCE HOLDING COMPANY C8

INDEPENDENCE HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS PROVIDED BY (USED BY) OPERATING ACTIVITIES:
Net income (loss)	$ 124,669	$ 25,375
Adjustments to reconcile net income to net change in cash from operating activities:
Gain on disposal of discontinued operations	(109,447)
Gain on sale of subsidiary to joint venture		(10,161)
Gain on disposition of assets		(5,053)
Amortization of deferred acquisition costs	245	3,446
Net realized investment gains	(3,945)	(2,991)
Net impairment losses recognized in earnings	1,475	228
Equity income from equity method investments	7	(579)
Depreciation and amortization	1,482	1,740
Deferred tax expense (benefits)	2,565	(7,070)
Other adjustments to reconcile net income	6,683	4,988
Changes in assets and liabilities:
Net sales (purchases) of trading securities	3,180	160
Change in insurance liabilities	(41,713)	(17,627)
Change in deferred acquisisition costs	(217)	26,827
Change in amount due from reinsurers	4,227	(203,570)
Change in premium and claim funds	(4,835)	(3,556)
Change in current income tax liability	(6,550)	17,376
Change in due and unpaid premiums	11,621	(6,360)
Other operating activities	(6,200)	656
Net change in cash from operating activities	(16,753)	(176,171)
CASH FLOWS PROVIDED BY (USED BY) INVESTING ACTIVITIES:
Net sales (purchases) of short-term investments	(8,104)
Net sales (purchases) of securities under resale and repurchase agreements	17,003	5,708
Sales of equity securities	2,429	9,187
Purchases of equity securities		(4,423)
Sales of fixed maturities	335,562	601,187
Maturities and other repayments of fixed maturities	35,505	36,505
Purchases of fixed maturities	(406,348)	(491,069)
Acquisition of subsidiary, net of cash acquired		511
Proceeds from sales of subsidiaries, net of cash divested	137,115	3,524
Proceeds from sale of assets		8,000
Change in policy loans		10,629
Proceeds on sales of other investments	2,064
Purchases of other investments	(3,371)
Other investing activites	(3,433)	(1,035)
Net change in cash from investing activities	108,422	178,724
CASH FLOWS PROVIDED BY (USED BY) FINANCING ACTIVITIES:
Payments for repurchases of common stock	(3,522)	(1,722)
Cash paid in acquisitions of noncontrolling interests	(18,141)	(1,734)
Proceeds (withdrawals) of investment-type insurance contracts	(1,447)	(1,756)
Repayment of long-term debt	(4,789)	(2,137)
Dividends paid	(1,588)	(1,392)
Other financing activities	(474)	220
Net change in cash from financing activities	(29,961)	(8,521)
Net change in cash and cash equivalents	61,708	(5,968)
Cash and cash equivalents, beginning of period	17,500	23,408
Cash and cash equivalents, end of period	$ 79,208	$ 17,440

Note 1. Organization, Consolida

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies	9 Months Ended
	Sep. 30, 2016
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 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”), an administration exchange for health and pet insurance; and (ii) a managing general underwriter (“MGU”) that writes medical stop-loss. On March 31, 2016, the Company sold IHC Risk Solutions, LLC (“Risk Solutions”), its managing general underwriter of excess or stop-loss insurance. 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 54% of IHC's outstanding common stock at September 30, 2016. (B) Consolidation AMIC Holdings, Inc. AMIC Holdings, Inc., formerly known as American Independence Corp., (“AMIC”) is an insurance holding company engaged in the insurance and reinsurance business. At December 31, 2015, the Company owned approximately 92% of its outstanding common stock. On August 31, 2016, IHC took AMIC private Effects of Ownership Changes in Subsidiaries The following table summarizes the effects of changes in the Company’s ownership interests in its subsidiaries on IHC’s equity for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Changes in IHC’s paid-in capital: Purchase of AMIC shares $ (2,230) $ - $ (2,230) $ (199) Purchase remaining IPA Family, LLC interests - - - 311 Net transfers from noncontrolling interests $ (2,230) $ - $ (2,230) $ 112 (C) Basis of Presentation The unaudited Condensed Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited Condensed Consolidated Financial Statements include the accounts of IHC and its consolidated subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The preparation of consolidated 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. IHC’s annual report on Form 10-K as filed with the Securities and Exchange Commission should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements. On March 31, 2016, the Company sold Risk Solutions, its managing general underwriter of excess or stop-loss insurance for self-insured employer groups that desire to manage the risk of large medical claims (“Medical Stop-Loss”). 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 is 100% co-insured as of January 1, 2016. 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 qualified 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. The assets, liabilities, and related income and expenses associated with the disposal group are presented as discontinued operations in the accompanying condensed consolidated financial statements and Notes thereto. The results of discontinued operations reflect the operations of the disposed MGUs. See Note 3 for more information. The run-off of IHC’s remaining block of medical stop-loss business is in continuing operations. In the opinion of management, all adjustments (consisting only of normal recurring accruals) that are necessary for a fair presentation of the consolidated financial position and results of operations for the interim periods have been included. The condensed consolidated results of operations for the three months and nine months ended September 30, 2016 (D) Reclassifications Certain amounts in prior year’s consolidated financial statements and Notes thereto have been reclassified to conform to the 2016 presentation, primarily for the effects of discontinued operations. (E) Recent Accounting Pronouncements Recently Adopted Accounting Standards 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. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. In February 2015, 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. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In October 2016, the FASB issued guidance requiring an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this Update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption and are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In August 2016, the FASB issued guidance that changes how certain cash receipts and cash payments are presented and classified in the cash flows statement. The amendments in this Update are effective for annual periods beginning after December 15, 2017, 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 June 2016, the FASB issued guidance requiring financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. An allowance for credit losses will be deducted from the amortized cost basis to present the net carrying value at the amount expected to be collected with changes in the allowance recorded in earnings. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than a write-down, which would be limited to the amount by which fair value is below the amortized cost. Certain existing requirements used to evaluate credit losses have been removed. For public entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The amendments in this Update should be applied through a cumulative effect adjustment to retained earnings upon adoption as of the beginning of the first reporting period in which the guidance is effective. Management has not yet determined the impact the adoption of this guidance will have on the Company’s consolidated financial statements. In March 2016, the FASB issued guidance that simplify several aspects of accounting for share-based 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 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 Company is evaluating the impact the disclosures will have 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 2. Income Per Common Share

Note 2. Income Per Common Share	9 Months Ended
	Sep. 30, 2016
Notes
Note 2. Income Per Common Share	Note 2. Income Per Common Share Diluted earnings per share was computed using the treasury stock method and includes incremental common shares, primarily from the dilutive effect of share-based payment awards, amounting to 220,000 and 213,000 shares for the three months and nine months ended September 30, 2016 The following is a reconciliation of income available to common shareholders used to calculate income per share for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Income from continuing operations $ 4,366 $ 14,159 $ 14,757 $ 24,082 Less: Income from continuing operations attributable to noncontrolling interests (43) (82) (348) (277) Income from continuing operations attributable to IHC common shareholders $ 4,323 $ 14,077 $ 14,409 $ 23,805 Income (loss) from discontinued operations $ - $ 729 $ 109,912 $ 1,293 Less: (Income) loss from discontinued operations attributable to noncontrolling interests - (46) (9,552) (87) Income (loss) from discontinued operations attributable to IHC common shareholders $ - $ 683 $ 100,360 $ 1,206

Note 3. Discontinued Operations

Note 3. Discontinued Operations	9 Months Ended
	Sep. 30, 2016
Notes
Note 3. Discontinued Operations	Note 3. Discontinued Operations 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 is 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 Company recorded a gain of $99,934,000 , net of taxes and amounts attributable to noncontrolling interests, as a result of the transaction. 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. Aside from reinsurance and marketing of Westport small group stop-loss, there will be no further involvement with the discontinued operation. The following is a reconciliation of the major line items constituting the pretax profit of discontinued operations for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Revenue $ - $ 645 $ 6,406 $ 1,895 Selling, general and administrative expenses - (660) 5,689 (359) Pretax profit (loss) of discontinued operations - 1,305 717 2,254 Gain on disposal of discontinued operations, pretax - - 116,919 - Income (loss) from discontinued operations, before income taxes - 1,305 117,636 2,254 Income taxes (benefits) on discontinued operations - 576 7,724 961 Income (loss) from discontinued operations $ - $ 729 $ 109,912 $ 1,293 The following is a reconciliation of the carrying amounts of major classes of assets and liabilities for discontinued operations for the periods indicated (in thousands): September 30, 2016 December 31, 2015 Major classes of assets included in discontinued operations: Cash $ - $ 1,671 Goodwill - 5,664 Intangible assets - 919 Other assets - 4,677 Assets attributable to discontinued operations $ - $ 12,931 Major classes of liabilities included in discontinued operations: Accounts payable and accrued liabilities $ 408 $ (15) Liabilities attributable to discontinued operations $ 408 $ (15) Total operating cash flows from discontinued operations for the three months and nine months ended September 30, 2016 were $0 and $339,000, respectively, and were $677,000 and $(385,000) for the three months and nine months ended September 30, 2015, respectively. The Company elected to classify the proceeds received from the sale of discontinued operations in the investing activities section of the Condensed Consolidated Statement of Cash Flows. In connection with the Risk Solutions Sale and Coinsurance Transaction in March 2016, AMIC utilized a significant amount of its Federal NOL carryforwards and made a corresponding adjustment to its valuation allowance (see Note 10). On a consolidated basis, the Company recorded income taxes on discontinued operations of $7,724,000 for the nine months ended September 30, 2016, consisting of $5,777,000 of state taxes and $1,947,000 of Federal taxes, net of a $38,419,000 decrease in AMIC’s valuation allowance.

Note 4. Investment Securities

Note 4. Investment Securities	9 Months Ended
	Sep. 30, 2016
Notes
Note 4. Investment Securities	Note 4. 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): September 30, 2016 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 200,741 $ 2,307 $ (1,431) $ 201,617 CMOs - residential (1) 6,295 68 - 6,363 U.S. Government obligations 33,819 292 (26) 34,085 Agency MBS - residential (2) 25 1 - 26 GSEs (3) 10,401 1 (222) 10,180 States and political subdivisions 199,031 4,932 (984) 202,979 Foreign government obligations 5,618 93 (58) 5,653 Redeemable preferred stocks 11,454 92 (101) 11,445 Total fixed maturities $ 467,384 $ 7,786 $ (2,822) $ 472,348 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 2,717 $ 301 $ - $ 3,018 Nonredeemable preferred stocks 3,588 98 (19) 3,667 Total equity securities $ 6,305 $ 399 $ (19) $ 6,685 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 (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 September 30, 2016, 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 $ 11,684 $ 11,681 Due after one year through five years 112,394 112,991 Due after five years through ten years 154,702 157,923 Due after ten years 171,883 173,184 CMOs and MBSs 16,721 16,569 $ 467,384 $ 472,348 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): September 30, 2016 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 24,023 $ 225 $ 30,032 $ 1,206 $ 54,055 $ 1,431 U.S. Government obligations 18,229 26 - - 18,229 26 GSEs - - 10,160 222 10,160 222 States and political subdivisions 38,919 363 24,875 621 63,794 984 Foreign government obligations 3,666 58 - - 3,666 58 Redeemable preferred stocks - - 3,662 101 3,662 101 Total fixed maturities 84,837 672 68,729 2,150 153,566 2,822 Nonredeemable preferred stocks 1,308 19 - - 1,308 19 Total equity securities 1,308 19 - - 1,308 19 Total temporarily impaired securities $ 86,145 $ 691 $ 68,729 $ 2,150 $ 154,874 $ 2,841 Number of securities in an unrealized loss position 39 28 67 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 Substantially all of the unrealized losses on fixed maturities available-for-sale at September 30, 2016 and December 31, 2015 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 September 30, 2016. Net realized investment gains are as follows for periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Available-for-sale securities: Fixed maturities $ 2,226 $ 122 $ 3,847 $ 3,536 Common stocks 220 - 220 1,465 Total sales of available-for-sale securities 2,446 122 4,067 5,001 Trading securities - (703) - (1,124) Total realized gains 2,446 (581) 4,067 3,877 Unrealized gains (losses) on trading securities: Change in unrealized gains (losses) on trading securities (80) (530) (124) (882) Total unrealized gains (losses) on trading securities (80) (530) (124) (882) Gains (losses) on other investments 1 2 2 (4) Net realized investment gains $ 2,367 $ (1,109) $ 3,945 $ 2,991 For the three months and nine months ended September 30, 2016, proceeds from sales of available-for-sale securities were $179,735,000 and $339,171,000, respectively, and the Company realized gross gains of $2,668,000 and $4,521,000, respectively, and gross losses of $94,000 and $275,000, respectively, on those sales. For the three months and nine months ended September 30, 2015, proceeds from sales of available-for-sale securities were $226,350,000 and $612,363,000, respectively, and the Company realized gross gains of $301,000 and $6,074,000, respectively, and gross losses of $148,000 and $790,000, respectively, on those sales. Other-Than-Temporary Impairment Evaluations 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). See Note 1H(iv) to the Consolidated Financial Statements in the 2015 Annual Report for further discussion of the factors considered by management in its regular review to identify and recognize other-than-temporary impairments on available-for-sale securities. In the three months and nine months ended September 30, 2016, the Company recognized an other-than-temporary impairment loss of $1,475,000 on certain fixed maturities available-for-sale due to credit losses. The Company determined it is more likely than not that we will sell the securities before recovery of their amortized cost basis. The Company recognized $228,000 of other-than-temporary impairment losses in earnings on equity securities available-for-sale during the three months and nine months ended September 30, 2015 due to the length of time and extent an equity security was below cost. 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 periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance at beginning of year $ - $ 473 $ 473 $ 473 Securities sold - - (473) - Balance at end of period $ - $ 473 $ - $ 473

Note 5. Fair Value Disclosures

Note 5. Fair Value Disclosures	9 Months Ended
	Sep. 30, 2016
Notes
Note 5. Fair Value Disclosures	Note 5. 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 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. Contingent liabilities: Contingent liabilities classified in Level 3 include; (i) a contingent liability assumed in connection with an acquisition 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 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): September 30, 2016 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 201,617 $ - $ 201,617 CMOs - residential - 6,363 - 6,363 US Government obligations - 34,085 - 34,085 Agency MBS - residential - 26 - 26 GSEs - 10,180 - 10,180 States and political subdivisions - 200,909 2,070 202,979 Foreign government obligations - 5,653 - 5,653 Redeemable preferred stocks 11,445 - - 11,445 Total fixed maturities 11,445 458,833 2,070 472,348 Equity securities available-for-sale: Common stocks 3,018 - - 3,018 Nonredeemable preferred stocks 3,667 - - 3,667 Total equity securities 6,685 - - 6,685 Trading securities - equities 1,135 - - 1,135 Total trading securities 1,135 - - 1,135 Total Financial Assets $ 19,265 $ 458,833 $ 2,070 $ 480,168 FINANCIAL LIABILITIES: Contingent liabilities $ - $ - $ 356 $ 356 Total Financial Liabilities $ - $ - $ 356 $ 356 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 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 either 2016 or 2015. The following tables present the changes in fair value of our Level 3 financial instruments for the periods indicated (in thousands): Three Months Ended September 30, 2016 Financial Assets: Financial Liabilities: States and Total Total Political Level 3 Contingent Level 3 Subdivisions Assets Liabilities Liabilities Beginning balance $ 2,107 $ 2,107 $ 1,445 $ 1,445 Increases (decreases) recognized in earnings: Net investment income - - (204) (204) Other income - - (185) (185) (Gains) losses included in other comprehensive income (loss): Net unrealized gains (losses) (10) (10) - - Payment of contingent liability - - (700) (700) Repayments and amortization of fixed maturities (27) (27) - - Sales - - - - Balance at end of period $ 2,070 $ 2,070 $ 356 $ 356 Nine Months Ended September 30, 2016 Financial Assets: Financial Liabilities: States and Total Total CMOs Political Level 3 Contingent Level 3 Commercial Subdivisions Assets Liabilities Liabilities Beginning balance $ 1,195 $ 2,179 $ 3,374 $ 1,650 $ 1,650 Increases (decreases) recognized in earnings: Net investment income - - - (947) (947) Net realized investment gains 141 - 141 - - Other income - - - 353 353 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) (296) (31) (327) - - Payment of contingent liability - - (700) (700) Repayments and amortization of fixed maturities (74) (78) (152) - - Sales (966) - (966) - - Balance at end of period $ - $ 2,070 $ 2,070 $ 356 $ 356 Three Months Ended September 30, 2015 Financial Assets: Financial Liabilities: States and Total Total CMOs- Political Level 3 Contingent Level 3 Commercial Subdivisions Assets Liabilities Liabilities Beginning balance $ 1,233 $ 2,248 $ 3,481 $ 1,000 $ 1,000 Increases (decreases) recognized in earnings: Gain on sale of subsidiary to joint venture - - - 1,281 1,281 Net investment income - - - (102) (102) Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 45 (11) 34 - - Repayments and amortization of of fixed maturities - (22) (22) - - Balance at end of period $ 1,278 $ 2,215 $ 3,493 $ 2,179 $ 2,179 Nine Months Ended September 30, 2015 Financial Assets: Financial Liabilities: States and Total Total CMOs Political Level 3 Contingent Level 3 Commercial Subdivisions Assets Liabilities Liabilities Beginning Balance $ 953 $ 2,314 $ 3,267 $ - $ - Assumed in acquisition - - - 1,000 1,000 Increases (decreases) recognized in earnings: Gain on sale of subsidiary to joint venture - - - 1,281 1,281 Net investment income - - - (102) (102) Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 325 (36) 289 - - Repayments and amortization of fixed maturities - (63) (63) - - Balance at end of period $ 1,278 $ 2,215 $ 3,493 $ 2,179 $ 2,179 The following table provides carrying values, fair values and classification in the fair value hierarchy of the Company’s financial instruments, for the periods indicated, that are not carried at fair value but are subject to fair value disclosure requirements, for the periods indicated (in thousands): September 30, 2016 December 31, 2015 Level 2 Level 2 Fair Carrying Fair Carrying Value Value Value Value FINANCIAL ASSETS: Policy loans $ 38 $ 38 $ 38 $ 38 FINANCIAL LIABILITIES: Funds on deposit $ 150,889 $ 150,651 $ 173,625 $ 173,350 Debt and junior subordinated debt securities $ 38,146 $ 38,146 $ 43,283 $ 43,335 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 Condensed 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 (C) Debt The fair value of debt with variable interest rates approximates its carrying amount and is included in Level 2 of the fair value hierarchy.

Note 6. Variable Interest Entit

Note 6. Variable Interest Entities	9 Months Ended
	Sep. 30, 2016
Notes
Note 6. Variable Interest Entities	Note 6. Variable Interest Entities The Company has a noncontrolling interest in certain limited partnerships that we have determined to be Variable Interest Entities (“VIEs”). The aforementioned VIEs are not required to be consolidated in the Company’s condensed consolidated financial statements as we are not the primary beneficiary since we do not have the power to direct the activities that most significantly impact the VIEs’ economic performance. The Company will periodically reassess whether we are the primary beneficiary in any of these investments. The reassessment process will consider whether we have acquired the power to direct the most significant activities of the VIE through changes in governing documents or other circumstances. Our maximum loss exposure is limited to our combined $9,207,000 carrying value in these equity investments and we have no future funding obligations to them. These investments are included in other investments in the Condensed Consolidated Balance Sheet as of September 30, 2016.

Note 7. Related Party Transacti

Note 7. Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Notes
Note 7. Related Party Transactions	Note 7. Related Party Transactions Through a joint venture consummated in 2015, the Company has a significant equity interest in Ebix Health Exchange. Ebix Health Exchange administers various lines of health insurance for IHC’s insurance subsidiaries. Effective July 1, 2016, Ebix, Inc. (“Ebix”) a non-related party and international supplier of On-Demand software and E-commerce services to the insurance, financial and healthcare industries, exercised its right to increase its ownership in Ebix Health Exchange thereby purchasing an additional 11% of Ebix Health Exchange for $2,000,000. As a result of the transaction, the Company’s ownership interest in Ebix Health Exchange decreased to 49%. IHC and Ebix have equal voting interest on the Board of Managers of Ebix Health Exchange. 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. The carrying value of the Company’s equity investment in Ebix Health Exchange was $6,123,000 and $9,838,000 at September 30, 2016 and December 31, 2015, respectively. Ebix Health Exchange reported a net loss of $468,000 and $1,656,000 for the three months and nine months ended September 30, 2016, respectively. The Company recorded $264,000 and $709,000 of the losses in earnings for the three months and nine months ended September 30, 2016, respectively; and reduced the contingent liability, previously recognized on the acquisition date, by $204,000 and $947,000, respectively, during the three months and nine months ended September 30, 2016 representing cash operating losses. The Company’s Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015 include $3,649,000 and $1,397,000, respectively, of notes and other amounts receivable from Ebix Health Exchange, and include $2,936,000 and $405,000, respectively, 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 Condensed Consolidated Statements of Income for the three months and nine months ended September 30, 2016 include $86,000 and $288,000, respectively, of fee income from Ebix Health Exchange, and include $1,547,000 and $4,132,000, respectively, of administrative fee expenses to Ebix Health Exchange, which are included in fee income and selling, general and administrative expenses. The Company’s Condensed Consolidated Statements of Income include $25,000 in fee income from, and $362,000 of administrative fee expenses to, Ebix Health Exchange which are included in fee income and selling, general and administrative expenses, respectively, for the three months and nine months ended September 30, 2015.

Note 8. Deconsolidation

Note 8. Deconsolidation	9 Months Ended
	Sep. 30, 2016
Notes
Note 8. Deconsolidation	Note 8. Deconsolidation On September 30, 2016, the Company sold the assets and the stock of its wholly owned subsidiary, Accident Insurance Services, Inc. (“AIS”), to unrelated parties for an aggregate $9,000,000 of cash. Upon the sale, AIS was deconsolidated from the Company’s financial statements. The Company recognized a loss of $614,000 on the transaction, pre-tax, which is included in Other Income on the Consolidated Statement of Income. The loss was measured as the difference between the fair value of the consideration received and: (i) the carrying amount of the former subsidiary’s assets and liabilities, including certain intangible assets (see Note 9); (ii) the write off of associated goodwill (see Note 9), and (iii) other expenses directly attributable to the transaction. There will be no further involvement with AIS other than with respect to the run-out of the business it produced for our insurance companies.

Note 9. Goodwill and Other Inta

Note 9. Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2016
Notes
Note 9. Goodwill and Other Intangible Assets	Note 9. Goodwill and Other Intangible Assets Certain prior year balances of goodwill and intangible assets were reclassified to assets attributable to discontinued operations on the accompanying Condensed Consolidated Balance Sheet as of December 31, 2015 to conform to the 2016 presentation (see Notes 1 and 3). The carrying amount of goodwill was $41,573,000 and $47,276,000 , respectively, at September 30, 2016 and December 31, 2015. In September 2016, the Company wrote off $5,703,000 off goodwill associated with the Specialty Health segment in connection with the sale of a subsidiary. See discussion in Note 8. The Company has net other intangible assets of $9,308,000 and $14,598,000 at September 30, 2016 and December 31, 2015, respectively, which are included in other assets in the Condensed 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): September 30, 2016 December 31, 2015 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Finite-lived Intangible Assets: Agent and broker relationships $ 13,052 $ 11,721 $ 18,201 $ 12,497 Trademarks - - 1,000 83 Total finite-lived $ 13,052 $ 11,721 $ 19,201 $ 12,580 September 30, December 31, 2016 2015 Indefinite-lived Intangible Assets: Insurance licenses $ 7,977 $ 7,977 Total indefinite-lived $ 7,977 $ 7,977 As a result of the sale of a subsidiary discussed in Note 8, net intangible assets associated with the specialty health segment decreased $4,233,000 . Amortization expense was $366,000 and $1,057,000 for the three months and nine months ended September 30, 2016, respectively, and was $425,000 and $1,070,000 for the three months and nine months ended September 30, 2015.

Note 10. Income Taxes

Note 10. Income Taxes	9 Months Ended
	Sep. 30, 2016
Notes
Note 10. Income Taxes	Note 10. Income Taxes The provisions for income taxes shown in the Condensed Consolidated Statements of Income were computed based on the Company's actual results, which approximate the effective tax rate expected to be applicable for the balance of the current fiscal year in accordance with consolidated life/non-life group income tax regulations. Such regulations adopt a subgroup method in determining consolidated taxable income, whereby taxable income is determined separately for the life insurance company group and the non-life insurance company group. As a result of the Risk Solutions Sale and Coinsurance Transaction (see Note 3), AMIC utilized approximately $109,770,000 of its operating loss carryforwards. At September 30, 2016, AMIC had remaining net operating loss carryforwards of approximately $144,749,000 for federal income tax purposes, which expire in varying amounts through the year 2028, with a significant portion expiring in 2020.

Note 11. Reinsurance

Note 11. Reinsurance	9 Months Ended
	Sep. 30, 2016
Notes
Note 11. Reinsurance	Note 11. Reinsurance Effective January 1, 2016, all of the in-force stop-loss business of Standard Security Life and Independence American produced by Risk Solutions was co-insured i Risk Solutions Sale and Coinsurance Transaction (see Note 3). As a result of this transaction, amounts due from reinsurers includes $52,235,000 due from Westport at September 30, 2016; premiums earned from the Medical Stop-Loss segment was $2,668,000 and $10,671,000 for the three months and nine months ended September 30, 2016, respectively, compared to $52,040,000 and $157,029,000 for the comparable periods in 2015; and, insurance benefits, claims and reserves for the Medical Stop-Loss segment were $3,508,000 and $9,875,000 for the three months and nine months ended September 30, 2016, respectively, compared to $37,369,000 and $115,032,000 for the comparable periods in 2015. 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.

Note 12. Debt and Junior Subord

Note 12. Debt and Junior Subordinated Debt Securities	9 Months Ended
	Sep. 30, 2016
Notes
Note 12. Debt and Junior Subordinated Debt Securities	Note 12. Debt and Junior Subordinated Debt Securities In 2016, the Company made aggregate cash payments of $4,789,000 for the repayment of debt. The remaining $400,000 of debt is included in other liabilities on the Condensed Consolidated Balance Sheet at September 30, 2016. Subsequent to the balance sheet date, in October 2016, the Company redeemed $22,682,000 of its junior subordinated debt securities and has given notice that it will redeem the remaining junior subordinated debt securities in December 2016.

Note 13. Stockholders' Equity

Note 13. Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Notes
Note 13. Stockholders' Equity	Note 13. Stockholders’ Equity Treasury Stock In 2016, IHC repurchased an aggregate 215,000 shares of its common stock in various private transactions for $3,522,000. Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) includes 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. Changes in the balances of accumulated other comprehensive income, shown net of taxes, for the periods indicated were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Beginning balance $ 4,054 $ (3,217) $ (3,440) $ 22 Other comprehensive income (loss) before reclassifications (182) 1,854 8,522 1,765 Amounts reclassified from accumulated OCI (573) 68 (1,618) (3,077) Net other comprehensive income (755) 1,922 6,904 (1,312) Less: Other comprehensive income attributable to noncontrolling interests 47 (51) (118) (61) Acquired from noncontrolling interests 102 - 102 5 Ending balance $ 3,448 $ (1,346) $ 3,448 $ (1,346) Presented below are the amounts reclassified out of accumulated other comprehensive income (loss) and recognized in earnings for each of the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Unrealized gains (losses) on available-for-sale securities reclassified during the period to the following income statement line items: Net realized investment gains $ 2,446 $ 122 $ 4,067 $ 5,001 Net impairment losses recognized in earnings (1,475) (228) (1,475) (228) Income (loss) before income tax 971 (106) 2,592 4,773 Tax effect 398 (38) 974 1,696 Net income (loss) $ 573 $ (68) $ 1,618 $ 3,077

Note 14. Share-based Compensati

Note 14. Share-based Compensation	9 Months Ended
	Sep. 30, 2016
Notes
Note 14. Share-based Compensation	Note 14. Share-Based Compensation IHC and AMIC each have share-based compensation plans. The following is a summary of the activity pertaining to each of these plans. A) IHC’s Share-Based Compensation Plans Under the terms of IHC’s stock-based compensation 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 and share appreciation rights (“SARs”) under the 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. At , there were no shares available for future stock-based compensation grants under IHC’s stock incentive plans. The following table summarizes share-based compensation expense, which is included in selling, general and administrative expenses on the Condensed Consolidated Statements of Income, applicable to the IHC plans, by award type for each of the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 IHC’s Share-based Compensation Plan: Stock options $ - $ - $ 170 $ 55 Restricted stock units 16 23 60 67 SARs (57) (23) 410 (80) Share-based compensation expense, pre-tax (41) - 640 42 Tax benefits (16) - 255 17 Share-based compensation expense, net $ (25) $ - $ 385 $ 25 Stock Options The IHC’s stock option activity during 2016 was as follows: Shares Weighted- Average Under Option Exercise Price December 31, 2015 584,080 $ 9.35 Exercised (9,250) 9.09 September 30, 2016 574,830 $ 9.35 In 2016, option agreements affecting 13 employees were modified to extend the expirations of their terms from 2017 to 2019 and as a result, the Company recorded incremental compensation costs of $170,000 . In The following table summarizes information regarding IHC’s outstanding and exercisable options: September 30, 2016 Outstanding Exercisable Number of options 574,830 574,830 Weighted average exercise price per share $ 9.35 $ 9.35 Aggregate intrinsic value for all options (in thousands) $ 4,501 $ 4,501 Weighted average contractual term remaining 2.0 years 2.0 years As of , 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 restricted stock activity for the nine months ended September 30, 2016: No. of Weighted-Average Non-vested Grant-Date Shares Fair Value December 31, 2015 14,850 $ 12.26 Vested (7,425) 12.24 September 30, 2016 7,425 $ 12.28 The total fair value of restricted stock that vested during the first nine months of 2016 and 2015 was $120,000 and $89,000, respectively. No restricted stock awards were granted in 2016. In 2015, IHC granted 7,425 restricted stock awards during the nine months ended September 30 with weighted average grant-date fair values of $11.78. As of , the total unrecognized compensation expense related to non-vested restricted stock unit awards was $69,000 which is expected to be recognized over the remaining requisite weighted-average service period of 1.3 years. SARs IHC had 73,150 and 125,850 of SAR awards outstanding at September 30, 2016 and December 31, 2015, respectively. In 2016, 52,700 SARs were exercised with an aggregate intrinsic value of $436,000. Included in Other Liabilities in the Company’s Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015 are liabilities of $718,000 and $743,000, respectively, pertaining to SARs. B) AMIC Share-Based Compensation Plans As a result of a short-form merger discussed in Note 1 (B), the existing stock-based compensation plan of AMIC was terminated. Under the terms of AMIC’s stock-based compensation plan prior to its termination, option exercise prices were equal to the quoted market price of the shares at the date of grant; option terms were ten years; and vesting periods ranged from three to four years. The following table summarizes share-based compensation expense, which is included in selling, general and administrative expenses on the Condensed Consolidated Statements of Income, applicable to AMIC’s share-based compensation plan prior to its termination, by award type for each of the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 AMIC’s Share-based Compensation Plans: Stock options $ 11 $ 11 $ 21 $ 32 Share-based compensation expense, pre-tax 11 11 21 32 Tax benefits 4 4 7 11 Share-based compensation expense, net $ 7 $ 7 $ 14 $ 21 Stock Options AMIC’s stock option activity for the nine months ended is as follows: Shares Weighted- Average Under Option Exercise Price December 31, 2015 71,558 $ 8.88 Exercised (30,446) 8.62 Cancelled (41,112) 9.07 September 30, 2016 - $ - In 2016, AMIC received $262,000 in cash from the exercise of stock options with an aggregate intrinsic value of $212,000. In connection with the short-form merger transaction discussed in Note 1 (B), option agreements affecting 7 employees and directors were cancelled and as a result, the Company recorded incremental compensation costs of $646,000. These costs were accounted for as part of the equity transaction to take AMIC private.

Note 15. Supplemental Disclosur

Note 15. Supplemental Disclosures of Cash Flow Information	9 Months Ended
	Sep. 30, 2016
Notes
Note 15. Supplemental Disclosures of Cash Flow Information	Note 15. Supplemental Disclosures of Cash Flow Information Net cash payments (receipts) for Federal and state income taxes were $11,312,000 and $2,800,000 during the nine months ended September 30, 2016 and 2015, respectively. Cash payments for interest were $1,422,000 and $1,318,000 during the nine months ended September 30, 2016 and 2015, respectively.

Note 16. Segment Reporting

Note 16. Segment Reporting	9 Months Ended
	Sep. 30, 2016
Notes
Note 16. Segment Reporting	Note 16. Segment Reporting The Company has renamed its “Fully Insured” segment “Specialty Health”. Specialty Health more accurately reflects the niche nature of the products that IHC markets in this segment and continues to expand into since its exit from the major medical market. The Insurance Group principally engages in the life and health insurance business. Information by business segment is presented below for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Revenues: Medical Stop-Loss (A) $ 5,433 $ 53,320 $ 21,397 $ 160,310 Specialty Health 44,684 45,193 126,454 141,356 Group disability, life and DBL 26,196 24,404 77,409 65,879 Individual life, annuities and other (A) 717 7,987 2,053 25,287 Corporate 620 45 2,350 137 77,650 130,949 229,663 392,969 Gain on sale of subsidiary to joint venture - 10,161 - 10,161 Net realized investment gains (losses) 2,367 (1,109) 3,945 2,991 Net impairment losses recognized in earnings (1,475) (228) (1,475) (228) Total revenues $ 78,542 $ 139,773 $ 232,133 $ 405,893 Income from continuing operations before income taxes: Medical Stop-Loss (A) $ 2,176 $ 5,218 $ 13,926 $ 14,176 Specialty Health (B) 1,369 2,399 3,754 5,231 Group disability, life and DBL 5,323 4,400 13,533 10,774 Individual life, annuities and other (A)(C) (410) 3,623 (1,888) 1,238 Corporate (1,908) (2,111) (7,106) (5,308) 6,550 13,529 22,219 26,111 Gain on sale of subsidiary to joint venture - 10,161 - 10,161 Net realized investment gains (losses) 2,367 (1,109) 3,945 2,991 Net impairment losses recognized in earnings (1,475) (228) (1,475) (228) Interest expense (440) (444) (1,366) (1,354) Income from continuing operations before income taxes $ 7,002 $ 21,909 $ 23,323 $ 37,681 (A) (B) (C)

Note 1. Organization, Consoli25

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Basis of Accounting, Policy (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Basis of Accounting, Policy	The unaudited Condensed Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited Condensed Consolidated Financial Statements include the accounts of IHC and its consolidated subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The preparation of consolidated 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. IHC’s annual report on Form 10-K as filed with the Securities and Exchange Commission should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements. On March 31, 2016, the Company sold Risk Solutions, its managing general underwriter of excess or stop-loss insurance for self-insured employer groups that desire to manage the risk of large medical claims (“Medical Stop-Loss”). 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 is 100% co-insured as of January 1, 2016. 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 qualified 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. The assets, liabilities, and related income and expenses associated with the disposal group are presented as discontinued operations in the accompanying condensed consolidated financial statements and Notes thereto. The results of discontinued operations reflect the operations of the disposed MGUs. See Note 3 for more information. The run-off of IHC’s remaining block of medical stop-loss business is in continuing operations. In the opinion of management, all adjustments (consisting only of normal recurring accruals) that are necessary for a fair presentation of the consolidated financial position and results of operations for the interim periods have been included. The condensed consolidated results of operations for the three months and nine months ended September 30, 2016

Note 1. Organization, Consoli26

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Reclassification, Policy (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Reclassification, Policy	Certain amounts in prior year’s consolidated financial statements and Notes thereto have been reclassified to conform to the 2016 presentation, primarily for the effects of discontinued operations.

Note 1. Organization, Consoli27

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: New Accounting Pronouncements, Policy (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
New Accounting Pronouncements, Policy	Recently Adopted Accounting Standards 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. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. In February 2015, 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. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In October 2016, the FASB issued guidance requiring an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this Update should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption and are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements. In August 2016, the FASB issued guidance that changes how certain cash receipts and cash payments are presented and classified in the cash flows statement. The amendments in this Update are effective for annual periods beginning after December 15, 2017, 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 June 2016, the FASB issued guidance requiring financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. An allowance for credit losses will be deducted from the amortized cost basis to present the net carrying value at the amount expected to be collected with changes in the allowance recorded in earnings. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than a write-down, which would be limited to the amount by which fair value is below the amortized cost. Certain existing requirements used to evaluate credit losses have been removed. For public entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted for fiscal years beginning after December 15, 2018. The amendments in this Update should be applied through a cumulative effect adjustment to retained earnings upon adoption as of the beginning of the first reporting period in which the guidance is effective. Management has not yet determined the impact the adoption of this guidance will have on the Company’s consolidated financial statements. In March 2016, the FASB issued guidance that simplify several aspects of accounting for share-based 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 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 Company is evaluating the impact the disclosures will have 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 2. Income Per Common Sha28

Note 2. Income Per Common Share: Earnings Per Share, Policy (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Earnings Per Share, Policy	Diluted earnings per share was computed using the treasury stock method and includes incremental common shares, primarily from the dilutive effect of share-based payment awards, amounting to 220,000 and 213,000 shares for the three months and nine months ended September 30, 2016

Note 5. Fair Value Disclosures_

Note 5. Fair Value Disclosures: Fair Value of Financial Instruments, Policy (Policies)	9 Months Ended
	Sep. 30, 2016
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 5. Fair Value Disclosure30

Note 5. Fair Value Disclosures: Fair Value Transfer, Policy (Policies)	9 Months Ended
	Sep. 30, 2016
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 14. Share-based Compensa31

Note 14. Share-based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Policies)	9 Months Ended
	Sep. 30, 2016
Independence Holding Company Share Based Plans Total Member
Share-based Compensation, Option and Incentive Plans Policy	Under the terms of IHC’s stock-based compensation 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 and share appreciation rights (“SARs”) under the 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.
American Independence Corp Share Based Plans Total Member
Share-based Compensation, Option and Incentive Plans Policy	As a result of a short-form merger discussed in Note 1 (B), the existing stock-based compensation plan of AMIC was terminated. Under the terms of AMIC’s stock-based compensation plan prior to its termination, option exercise prices were equal to the quoted market price of the shares at the date of grant; option terms were ten years; and vesting periods ranged from three to four years.

Note 1. Organization, Consoli32

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Changes in IHC’s paid-in capital: Purchase of AMIC shares $ (2,230) $ - $ (2,230) $ (199) Purchase remaining IPA Family, LLC interests - - - 311 Net transfers from noncontrolling interests $ (2,230) $ - $ (2,230) $ 112

Note 2. Income Per Common Sha33

Note 2. Income Per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Schedule of Earnings Per Share, Basic and Diluted	Three Months Ended Nine Months Ended September 30 September 30 2016 2015 2016 2015 Income from continuing operations $ 4,366 $ 14,159 $ 14,757 $ 24,082 Less: Income from continuing operations attributable to noncontrolling interests (43) (82) (348) (277) Income from continuing operations attributable to IHC common shareholders $ 4,323 $ 14,077 $ 14,409 $ 23,805 Income (loss) from discontinued operations $ - $ 729 $ 109,912 $ 1,293 Less: (Income) loss from discontinued operations attributable to noncontrolling interests - (46) (9,552) (87) Income (loss) from discontinued operations attributable to IHC common shareholders $ - $ 683 $ 100,360 $ 1,206

Note 3. Discontinued Operatio34

Note 3. Discontinued Operations: Disposal Groups, Including Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Disposal Groups, Including Discontinued Operations	The following is a reconciliation of the major line items constituting the pretax profit of discontinued operations for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Revenue $ - $ 645 $ 6,406 $ 1,895 Selling, general and administrative expenses - (660) 5,689 (359) Pretax profit (loss) of discontinued operations - 1,305 717 2,254 Gain on disposal of discontinued operations, pretax - - 116,919 - Income (loss) from discontinued operations, before income taxes - 1,305 117,636 2,254 Income taxes (benefits) on discontinued operations - 576 7,724 961 Income (loss) from discontinued operations $ - $ 729 $ 109,912 $ 1,293 The following is a reconciliation of the carrying amounts of major classes of assets and liabilities for discontinued operations for the periods indicated (in thousands): September 30, 2016 December 31, 2015 Major classes of assets included in discontinued operations: Cash $ - $ 1,671 Goodwill - 5,664 Intangible assets - 919 Other assets - 4,677 Assets attributable to discontinued operations $ - $ 12,931 Major classes of liabilities included in discontinued operations: Accounts payable and accrued liabilities $ 408 $ (15) Liabilities attributable to discontinued operations $ 408 $ (15)

Note 4. Investment Securities_

Note 4. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Schedule of Available-for-sale Securities Reconciliation	September 30, 2016 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE FIXED MATURITIES AVAILABLE-FOR-SALE: Corporate securities $ 200,741 $ 2,307 $ (1,431) $ 201,617 CMOs - residential (1) 6,295 68 - 6,363 U.S. Government obligations 33,819 292 (26) 34,085 Agency MBS - residential (2) 25 1 - 26 GSEs (3) 10,401 1 (222) 10,180 States and political subdivisions 199,031 4,932 (984) 202,979 Foreign government obligations 5,618 93 (58) 5,653 Redeemable preferred stocks 11,454 92 (101) 11,445 Total fixed maturities $ 467,384 $ 7,786 $ (2,822) $ 472,348 EQUITY SECURITIES AVAILABLE-FOR-SALE: Common stocks $ 2,717 $ 301 $ - $ 3,018 Nonredeemable preferred stocks 3,588 98 (19) 3,667 Total equity securities $ 6,305 $ 399 $ (19) $ 6,685 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 (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 4. Investment Securities36

Note 4. Investment Securities: Investments Classified by Contractual Maturity Date (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Investments Classified by Contractual Maturity Date	AMORTIZED FAIR COST VALUE Due in one year or less $ 11,684 $ 11,681 Due after one year through five years 112,394 112,991 Due after five years through ten years 154,702 157,923 Due after ten years 171,883 173,184 CMOs and MBSs 16,721 16,569 $ 467,384 $ 472,348

Note 4. Investment Securities37

Note 4. Investment Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	September 30, 2016 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate securities $ 24,023 $ 225 $ 30,032 $ 1,206 $ 54,055 $ 1,431 U.S. Government obligations 18,229 26 - - 18,229 26 GSEs - - 10,160 222 10,160 222 States and political subdivisions 38,919 363 24,875 621 63,794 984 Foreign government obligations 3,666 58 - - 3,666 58 Redeemable preferred stocks - - 3,662 101 3,662 101 Total fixed maturities 84,837 672 68,729 2,150 153,566 2,822 Nonredeemable preferred stocks 1,308 19 - - 1,308 19 Total equity securities 1,308 19 - - 1,308 19 Total temporarily impaired securities $ 86,145 $ 691 $ 68,729 $ 2,150 $ 154,874 $ 2,841 Number of securities in an unrealized loss position 39 28 67 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

Note 4. Investment Securities38

Note 4. Investment Securities: Realized Gain (Loss) on Investments (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Realized Gain (Loss) on Investments	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Available-for-sale securities: Fixed maturities $ 2,226 $ 122 $ 3,847 $ 3,536 Common stocks 220 - 220 1,465 Total sales of available-for-sale securities 2,446 122 4,067 5,001 Trading securities - (703) - (1,124) Total realized gains 2,446 (581) 4,067 3,877 Unrealized gains (losses) on trading securities: Change in unrealized gains (losses) on trading securities (80) (530) (124) (882) Total unrealized gains (losses) on trading securities (80) (530) (124) (882) Gains (losses) on other investments 1 2 2 (4) Net realized investment gains $ 2,367 $ (1,109) $ 3,945 $ 2,991

Note 4. Investment Securities39

Note 4. Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Other than Temporary Impairment, Credit Losses Recognized in Earnings	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Balance at beginning of year $ - $ 473 $ 473 $ 473 Securities sold - - (473) - Balance at end of period $ - $ 473 $ - $ 473

Note 5. Fair Value Disclosure40

Note 5. Fair Value Disclosures: Fair Value, Assets Measured on Recurring Basis (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Fair Value, Assets Measured on Recurring Basis	September 30, 2016 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Fixed maturities available-for-sale: Corporate securities $ - $ 201,617 $ - $ 201,617 CMOs - residential - 6,363 - 6,363 US Government obligations - 34,085 - 34,085 Agency MBS - residential - 26 - 26 GSEs - 10,180 - 10,180 States and political subdivisions - 200,909 2,070 202,979 Foreign government obligations - 5,653 - 5,653 Redeemable preferred stocks 11,445 - - 11,445 Total fixed maturities 11,445 458,833 2,070 472,348 Equity securities available-for-sale: Common stocks 3,018 - - 3,018 Nonredeemable preferred stocks 3,667 - - 3,667 Total equity securities 6,685 - - 6,685 Trading securities - equities 1,135 - - 1,135 Total trading securities 1,135 - - 1,135 Total Financial Assets $ 19,265 $ 458,833 $ 2,070 $ 480,168 FINANCIAL LIABILITIES: Contingent liabilities $ - $ - $ 356 $ 356 Total Financial Liabilities $ - $ - $ 356 $ 356 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

Note 5. Fair Value Disclosure41

Note 5. Fair Value Disclosures: Fair Value Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Fair Value Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation	Three Months Ended September 30, 2016 Financial Assets: Financial Liabilities: States and Total Total Political Level 3 Contingent Level 3 Subdivisions Assets Liabilities Liabilities Beginning balance $ 2,107 $ 2,107 $ 1,445 $ 1,445 Increases (decreases) recognized in earnings: Net investment income - - (204) (204) Other income - - (185) (185) (Gains) losses included in other comprehensive income (loss): Net unrealized gains (losses) (10) (10) - - Payment of contingent liability - - (700) (700) Repayments and amortization of fixed maturities (27) (27) - - Sales - - - - Balance at end of period $ 2,070 $ 2,070 $ 356 $ 356 Nine Months Ended September 30, 2016 Financial Assets: Financial Liabilities: States and Total Total CMOs Political Level 3 Contingent Level 3 Commercial Subdivisions Assets Liabilities Liabilities Beginning balance $ 1,195 $ 2,179 $ 3,374 $ 1,650 $ 1,650 Increases (decreases) recognized in earnings: Net investment income - - - (947) (947) Net realized investment gains 141 - 141 - - Other income - - - 353 353 Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) (296) (31) (327) - - Payment of contingent liability - - (700) (700) Repayments and amortization of fixed maturities (74) (78) (152) - - Sales (966) - (966) - - Balance at end of period $ - $ 2,070 $ 2,070 $ 356 $ 356 Three Months Ended September 30, 2015 Financial Assets: Financial Liabilities: States and Total Total CMOs- Political Level 3 Contingent Level 3 Commercial Subdivisions Assets Liabilities Liabilities Beginning balance $ 1,233 $ 2,248 $ 3,481 $ 1,000 $ 1,000 Increases (decreases) recognized in earnings: Gain on sale of subsidiary to joint venture - - - 1,281 1,281 Net investment income - - - (102) (102) Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 45 (11) 34 - - Repayments and amortization of of fixed maturities - (22) (22) - - Balance at end of period $ 1,278 $ 2,215 $ 3,493 $ 2,179 $ 2,179 Nine Months Ended September 30, 2015 Financial Assets: Financial Liabilities: States and Total Total CMOs Political Level 3 Contingent Level 3 Commercial Subdivisions Assets Liabilities Liabilities Beginning Balance $ 953 $ 2,314 $ 3,267 $ - $ - Assumed in acquisition - - - 1,000 1,000 Increases (decreases) recognized in earnings: Gain on sale of subsidiary to joint venture - - - 1,281 1,281 Net investment income - - - (102) (102) Gains (losses) included in other comprehensive income (loss): Net unrealized gains (losses) 325 (36) 289 - - Repayments and amortization of fixed maturities - (63) (63) - - Balance at end of period $ 1,278 $ 2,215 $ 3,493 $ 2,179 $ 2,179

Note 5. Fair Value Disclosure42

Note 5. Fair Value Disclosures: Fair Value, by Balance Sheet Grouping (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Fair Value, by Balance Sheet Grouping	September 30, 2016 December 31, 2015 Level 2 Level 2 Fair Carrying Fair Carrying Value Value Value Value FINANCIAL ASSETS: Policy loans $ 38 $ 38 $ 38 $ 38 FINANCIAL LIABILITIES: Funds on deposit $ 150,889 $ 150,651 $ 173,625 $ 173,350 Debt and junior subordinated debt securities $ 38,146 $ 38,146 $ 43,283 $ 43,335

Note 9. Goodwill and Other In43

Note 9. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Schedule of Finite-Lived Intangible Assets	September 30, 2016 December 31, 2015 Gross Gross Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Finite-lived Intangible Assets: Agent and broker relationships $ 13,052 $ 11,721 $ 18,201 $ 12,497 Trademarks - - 1,000 83 Total finite-lived $ 13,052 $ 11,721 $ 19,201 $ 12,580

Note 9. Goodwill and Other In44

Note 9. Goodwill and Other Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Schedule of Indefinite-Lived Intangible Assets	September 30, December 31, 2016 2015 Indefinite-lived Intangible Assets: Insurance licenses $ 7,977 $ 7,977 Total indefinite-lived $ 7,977 $ 7,977

Note 13. Stockholders' Equity_

Note 13. Stockholders' Equity: Schedule of Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Schedule of Accumulated Other Comprehensive Income (Loss)	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Beginning balance $ 4,054 $ (3,217) $ (3,440) $ 22 Other comprehensive income (loss) before reclassifications (182) 1,854 8,522 1,765 Amounts reclassified from accumulated OCI (573) 68 (1,618) (3,077) Net other comprehensive income (755) 1,922 6,904 (1,312) Less: Other comprehensive income attributable to noncontrolling interests 47 (51) (118) (61) Acquired from noncontrolling interests 102 - 102 5 Ending balance $ 3,448 $ (1,346) $ 3,448 $ (1,346)

Note 13. Stockholders' Equity46

Note 13. Stockholders' Equity: Reclassification out of Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Reclassification out of Accumulated Other Comprehensive Income	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Unrealized gains (losses) on available-for-sale securities reclassified during the period to the following income statement line items: Net realized investment gains $ 2,446 $ 122 $ 4,067 $ 5,001 Net impairment losses recognized in earnings (1,475) (228) (1,475) (228) Income (loss) before income tax 971 (106) 2,592 4,773 Tax effect 398 (38) 974 1,696 Net income (loss) $ 573 $ (68) $ 1,618 $ 3,077

Note 14. Share-based Compensa47

Note 14. Share-based Compensation: Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan (Tables)	9 Months Ended
	Sep. 30, 2016
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	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 IHC’s Share-based Compensation Plan: Stock options $ - $ - $ 170 $ 55 Restricted stock units 16 23 60 67 SARs (57) (23) 410 (80) Share-based compensation expense, pre-tax (41) - 640 42 Tax benefits (16) - 255 17 Share-based compensation expense, net $ (25) $ - $ 385 $ 25
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	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 AMIC’s Share-based Compensation Plans: Stock options $ 11 $ 11 $ 21 $ 32 Share-based compensation expense, pre-tax 11 11 21 32 Tax benefits 4 4 7 11 Share-based compensation expense, net $ 7 $ 7 $ 14 $ 21

Note 14. Share-based Compensa48

Note 14. Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2015 584,080 $ 9.35 Exercised (9,250) 9.09 September 30, 2016 574,830 $ 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, 2015 71,558 $ 8.88 Exercised (30,446) 8.62 Cancelled (41,112) 9.07 September 30, 2016 - $ -

Note 14. Share-based Compensa49

Note 14. Share-based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding (Tables)	9 Months Ended
	Sep. 30, 2016
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	September 30, 2016 Outstanding Exercisable Number of options 574,830 574,830 Weighted average exercise price per share $ 9.35 $ 9.35 Aggregate intrinsic value for all options (in thousands) $ 4,501 $ 4,501 Weighted average contractual term remaining 2.0 years 2.0 years

Note 14. Share-based Compensa50

Note 14. Share-based Compensation: Schedule of Share-based Compensation, Restricted Stock Units Award Activity (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2015 14,850 $ 12.26 Vested (7,425) 12.24 September 30, 2016 7,425 $ 12.28

Note 16. Segment Reporting_ Sch

Note 16. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Schedule of Segment Reporting Information, by Segment	Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Revenues: Medical Stop-Loss (A) $ 5,433 $ 53,320 $ 21,397 $ 160,310 Specialty Health 44,684 45,193 126,454 141,356 Group disability, life and DBL 26,196 24,404 77,409 65,879 Individual life, annuities and other (A) 717 7,987 2,053 25,287 Corporate 620 45 2,350 137 77,650 130,949 229,663 392,969 Gain on sale of subsidiary to joint venture - 10,161 - 10,161 Net realized investment gains (losses) 2,367 (1,109) 3,945 2,991 Net impairment losses recognized in earnings (1,475) (228) (1,475) (228) Total revenues $ 78,542 $ 139,773 $ 232,133 $ 405,893 Income from continuing operations before income taxes: Medical Stop-Loss (A) $ 2,176 $ 5,218 $ 13,926 $ 14,176 Specialty Health (B) 1,369 2,399 3,754 5,231 Group disability, life and DBL 5,323 4,400 13,533 10,774 Individual life, annuities and other (A)(C) (410) 3,623 (1,888) 1,238 Corporate (1,908) (2,111) (7,106) (5,308) 6,550 13,529 22,219 26,111 Gain on sale of subsidiary to joint venture - 10,161 - 10,161 Net realized investment gains (losses) 2,367 (1,109) 3,945 2,991 Net impairment losses recognized in earnings (1,475) (228) (1,475) (228) Interest expense (440) (444) (1,366) (1,354) Income from continuing operations before income taxes $ 7,002 $ 21,909 $ 23,323 $ 37,681

Note 1. Organization, Consoli52

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	Aug. 31, 2016	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Cash paid in acquisitions of noncontrolling interests			$ 18,141	$ 1,734
GeneveAffiliatedEntityMember
EntityCommonStockOutstandingOwnershipPercent		54.00%	54.00%
AMICSubsidiariesMember
Noncontrolling Interest, Ownership Percentage by Parent					92.00%
Cash paid in acquisitions of noncontrolling interests	$ 18,141
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent	$ 2,230	$ 2,230	$ 2,230	$ 199
Stop-Loss Coinsurance Transaction With Westport Insurance Corporation Member | Medical Stop-Loss Product Line Produced By Risk Solutions Member
Coinsurance, Ceded Percentage			100.00%

Note 1. Organization, Consoli53

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	1 Months Ended	3 Months Ended	9 Months Ended
	Aug. 31, 2016	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Net		$ (2,230)	$ (2,230)	$ 112
AMICSubsidiariesMember
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent	$ (2,230)	$ (2,230)	$ (2,230)	(199)
IPASubsidiariesMember
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent				$ 311

Note 1. Organization, Consoli54

Note 1. Organization, Consolidation, Basis of Presentation and Accounting Policies: Basis of Accounting, Policy (Details)	9 Months Ended
	Sep. 30, 2016
Stop-Loss Coinsurance Transaction With Westport Insurance Corporation Member | Medical Stop-Loss Product Line Produced By Risk Solutions Member
Coinsurance, Ceded Percentage	100.00%

Note 2. Income Per Common Sha55

Note 2. Income Per Common Share: Earnings Per Share, Policy (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Details
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	220	165	213	165

Note 2. Income Per Common Sha56

Note 2. Income Per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Details
Income from continuing operations	$ 4,366	$ 14,159	$ 14,757	$ 24,082
Income (Loss) from Continuing Operations Attributable to Noncontrolling Interest	43	82	348	277
Income (Loss) from Continuing Operations Attributable to Parent	4,323	14,077	14,409	23,805
Income (loss) from discontinued operations	$ 0	729	109,912	1,293
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest		46	9,552	87
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent		$ 683	$ 100,360	$ 1,206

Note 3. Discontinued Operatio57

Note 3. Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2016
Cash Provided by (Used in) Operating Activities, Discontinued Operations	$ 0	$ 677	$ 339	$ (385)
Income taxes (benefits) on discontinued operations		576	7,724	961
Risk Solutions Sale and Coinsurance Transaction Member | AMICSubsidiariesMember
Aggregate Consideration Allocated To An Entity, Expressed As A Percent					89.00%
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale
Income taxes (benefits) on discontinued operations			7,724
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale | State and Local Jurisdiction
Income taxes (benefits) on discontinued operations			5,777
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale | Domestic Tax Authority
Income taxes (benefits) on discontinued operations			1,947
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount			(38,419)
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale | Medical Stop-Loss Segment Member
Disposal Group, Including Discontinued Operation, Consideration					$ 152,500
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Portion Attributable to Parent			99,934
Income taxes (benefits) on discontinued operations		$ 576	$ 7,724	$ 961

Note 3. Discontinued Operatio58

Note 3. Discontinued Operations: Disposal Groups, Including Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income (loss) from discontinued operations, before income taxes		$ 1,305	$ 117,636	$ 2,254
Income taxes (benefits) on discontinued operations		576	7,724	961
Income (loss) from discontinued operations	$ 0	729	109,912	1,293
Assets attributable to discontinued operations					$ 12,931
Liabilities attributable to discontinued operations	408		408		(15)
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale
Income taxes (benefits) on discontinued operations			7,724
Risk Solutions Sale and Coinsurance Transaction Member | Discontinued Operations, Disposed of by Sale | Medical Stop-Loss Segment Member
Disposal Group, Including Discontinued Operation, Revenue		645	6,406	1,895
Disposal Group, Including Discontinued Operation, General and Administrative Expense		(660)	5,689	(359)
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, before Income Tax		1,305	717	2,254
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax			116,919
Income (loss) from discontinued operations, before income taxes		1,305	117,636	2,254
Income taxes (benefits) on discontinued operations		576	7,724	961
Income (loss) from discontinued operations		$ 729	109,912	$ 1,293
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents					1,671
Disposal Group, Including Discontinued Operation, Goodwill					5,664
Disposal Group, Including Discontinued Operation, Intangible Assets					919
Disposal Group, Including Discontinued Operation, Other Assets					4,677
Assets attributable to discontinued operations					12,931
Disposal Group, Including Discontinued Operation, Accounts Payable and Accrued Liabilities	408		408		(15)
Liabilities attributable to discontinued operations	$ 408		$ 408		$ (15)

Note 4. Investment Securities59

Note 4. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Available For Sale Debt Securities Amortized Cost Basis	$ 467,384	$ 433,892
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	7,786	2,786
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	2,822	8,077
Fixed maturities, available-for-sale	472,348	428,601
Available For Sale Equity Securities Amortized Cost Basis	6,305	8,514
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	399	56
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	19	144
Equity securities, available-for-sale	6,685	8,426
Corporate Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	200,741	172,621
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	2,307	93
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	1,431	5,868
Fixed maturities, available-for-sale	201,617	166,846
Residential Mortgage Backed Securities Member
Available For Sale Debt Securities Amortized Cost Basis	6,295	3,068
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	68	2
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax		14
Fixed maturities, available-for-sale	6,363	3,056
US Treasury Securities
Available For Sale Debt Securities Amortized Cost Basis	33,819	44,738
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	292	120
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	26	64
Fixed maturities, available-for-sale	34,085	44,794
US Government Agencies Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	25	34
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	1	1
Fixed maturities, available-for-sale	26	35
US Government-sponsored Enterprises Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	10,401	11,814
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	1	2
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	222	254
Fixed maturities, available-for-sale	10,180	11,562
US States and Political Subdivisions Debt Securities
Available For Sale Debt Securities Amortized Cost Basis	199,031	194,364
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	4,932	2,159
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	984	1,857
Fixed maturities, available-for-sale	202,979	194,666
Foreign Government Debt
Available For Sale Debt Securities Amortized Cost Basis	5,618	2,318
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	93	12
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	58	6
Fixed maturities, available-for-sale	5,653	2,324
Redeemable Preferred Stock
Available For Sale Debt Securities Amortized Cost Basis	11,454	4,036
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	92	101
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	101	14
Fixed maturities, available-for-sale	11,445	4,123
COMMON STOCK, AMOUNT
Available For Sale Equity Securities Amortized Cost Basis	2,717	4,926
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	301
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax		142
Equity securities, available-for-sale	3,018	4,784
Nonredeemable Preferred Stock
Available For Sale Equity Securities Amortized Cost Basis	3,588	3,588
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	98	56
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	19	2
Equity securities, available-for-sale	$ 3,667	3,642
Commercial Mortgage Backed Securities
Available For Sale Debt Securities Amortized Cost Basis		899
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax		296
Fixed maturities, available-for-sale		$ 1,195

Note 4. Investment Securities60

Note 4. Investment Securities: Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Details
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis	$ 11,684
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value	11,681
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Amortized Cost Basis	112,394
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Fair Value	112,991
Available-for-sale Securities, Debt Maturities, Rolling Year Six Through Ten, Amortized Cost Basis	154,702
Available-for-sale Securities, Debt Maturities, Rolling Year Six Through Ten, Fair Value	157,923
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Amortized Cost Basis	171,883
Available-for-sale Securities, Debt Maturities, Rolling after Year Ten, Fair Value	173,184
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	16,721
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	16,569
Available For Sale Debt Securities Amortized Cost Basis	467,384	$ 433,892
Fixed maturities, available-for-sale	$ 472,348	$ 428,601

Note 4. Investment Securities61

Note 4. Investment Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Details) $ in Thousands	Sep. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	$ 86,145	$ 210,357
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	691	3,709
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	68,729	91,565
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	2,150	4,512
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	154,874	301,922
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 2,841	$ 8,221
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year	39	99
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year	28	31
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	67	130
Corporate Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	$ 24,023	$ 101,903
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	225	2,559
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	30,032	55,217
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	1,206	3,309
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	54,055	157,120
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	1,431	5,868
US Treasury Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	18,229	19,809
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	26	64
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	18,229	19,809
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	26	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	10,160	4,997
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	222	126
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	10,160	11,536
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	222	254
US States and Political Subdivisions Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	38,919	68,898
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	363	780
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	24,875	31,351
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	621	1,077
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	63,794	100,249
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	984	1,857
Foreign Government Debt
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	3,666	484
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	58	6
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	3,666	484
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	58	6
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, Twelve Months or Longer, Fair Value	3,662
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	101
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	3,662	3,749
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	101	14
Debt Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	84,837	204,249
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	672	3,565
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	68,729	91,565
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	2,150	4,512
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	153,566	295,814
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	2,822	8,077
Nonredeemable Preferred Stock
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	1,308	1,324
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	19	2
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,308	1,324
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	19	2
Equity Securities
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value	1,308	6,108
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	19	144
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,308	6,108
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 19	144
Residential Mortgage Backed Securities Member
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value		2,867
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		2,867
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		14
COMMON STOCK, AMOUNT
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value		4,784
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		142
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value		4,784
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		$ 142

Note 4. Investment Securities62

Note 4. Investment Securities: Realized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	$ 2,446	$ 122	$ 4,067	$ 5,001
Trading Securities, Realized Gain (Loss)		(703)		(1,124)
Marketable Securities, Realized Gain (Loss), Excluding Other than Temporary Impairments	2,446	(581)	4,067	3,877
Trading Securities, Change in Unrealized Holding Gain (Loss)	(80)	(530)	(124)	(882)
Marketable Securities, Unrealized Gain (Loss), Excluding Other than Temporary Impairments	(80)	(530)	(124)	(882)
Gain (Loss) on Sale of Other Investments	1	2	2	(4)
Net realized investment gains	2,367	(1,109)	3,945	2,991
Debt Securities
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	2,226	$ 122	3,847	3,536
COMMON STOCK, AMOUNT
Available for sale Securities Gross Realized Gain Loss Excluding Other Than Temporary Impairments	$ 220		$ 220	$ 1,465

Note 4. Investment Securities (

Note 4. Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Details
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds	$ 179,735	$ 226,350	$ 339,171	$ 612,363
Available-for-sale Securities, Gross Realized Gains	2,668	301	4,521	6,074
Available-for-sale Securities, Gross Realized Losses	94	148	275	790
Net impairment losses recognized in earnings	$ 1,475	$ 228	$ 1,475	$ 228

Note 4. Investment Securities64

Note 4. Investment Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - Available-for-sale Securities - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held		$ 473	$ 473	$ 473	$ 473
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold	$ 473

Note 5. Fair Value Disclosure65

Note 5. Fair Value Disclosures: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fixed maturities, available-for-sale	$ 472,348	$ 428,601
Equity securities, available-for-sale	6,685	8,426
Trading securities	1,135	1,259
Corporate Debt Securities
Fixed maturities, available-for-sale	201,617	166,846
Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	6,363	3,056
US Treasury Securities
Fixed maturities, available-for-sale	34,085	44,794
US Government Agencies Debt Securities
Fixed maturities, available-for-sale	26	35
US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	10,180	11,562
US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	202,979	194,666
Foreign Government Debt
Fixed maturities, available-for-sale	5,653	2,324
Redeemable Preferred Stock
Fixed maturities, available-for-sale	11,445	4,123
COMMON STOCK, AMOUNT
Equity securities, available-for-sale	3,018	4,784
Nonredeemable Preferred Stock
Equity securities, available-for-sale	3,667	3,642
Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale		1,195
Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	472,348	428,601
Equity securities, available-for-sale	6,685	8,426
Trading securities	1,135	1,259
Assets, Fair Value Disclosure, Recurring	480,168	438,286
Contingent Liabilities	356	1,650
Liabilities, Fair Value Disclosure, Recurring	356	1,661
Fair Value, Measurements, Recurring | Interest Rate Swap
Derivative Liability, Fair Value, Gross Liability		11
Fair Value, Measurements, Recurring | Corporate Debt Securities
Fixed maturities, available-for-sale	201,617	166,846
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	6,363	3,056
Fair Value, Measurements, Recurring | US Treasury Securities
Fixed maturities, available-for-sale	34,085	44,794
Fair Value, Measurements, Recurring | US Government Agencies Debt Securities
Fixed maturities, available-for-sale	26	35
Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	10,180	11,562
Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	202,979	194,666
Fair Value, Measurements, Recurring | Foreign Government Debt
Fixed maturities, available-for-sale	5,653	2,324
Fair Value, Measurements, Recurring | Redeemable Preferred Stock
Fixed maturities, available-for-sale	11,445	4,123
Fair Value, Measurements, Recurring | COMMON STOCK, AMOUNT
Equity securities, available-for-sale	3,018	4,784
Fair Value, Measurements, Recurring | Nonredeemable Preferred Stock
Equity securities, available-for-sale	3,667	3,642
Fair Value, Measurements, Recurring | Equity Securities
Trading securities	1,135	1,259
Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale		1,195
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	11,445	4,123
Equity securities, available-for-sale	6,685	8,426
Trading securities	1,135	1,259
Assets, Fair Value Disclosure, Recurring	19,265	13,808
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Redeemable Preferred Stock
Fixed maturities, available-for-sale	11,445	4,123
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | COMMON STOCK, AMOUNT
Equity securities, available-for-sale	3,018	4,784
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Nonredeemable Preferred Stock
Equity securities, available-for-sale	3,667	3,642
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Equity Securities
Trading securities	1,135	1,259
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	458,833	421,104
Assets, Fair Value Disclosure, Recurring	458,833	421,104
Liabilities, Fair Value Disclosure, Recurring		11
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Interest Rate Swap
Derivative Liability, Fair Value, Gross Liability		11
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Corporate Debt Securities
Fixed maturities, available-for-sale	201,617	166,846
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities Member
Fixed maturities, available-for-sale	6,363	3,056
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US Treasury Securities
Fixed maturities, available-for-sale	34,085	44,794
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US Government Agencies Debt Securities
Fixed maturities, available-for-sale	26	35
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities
Fixed maturities, available-for-sale	10,180	11,562
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	200,909	192,487
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Foreign Government Debt
Fixed maturities, available-for-sale	5,653	2,324
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fixed maturities, available-for-sale	2,070	3,374
Assets, Fair Value Disclosure, Recurring	2,070	3,374
Contingent Liabilities	356	1,650
Liabilities, Fair Value Disclosure, Recurring	356	1,650
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | US States and Political Subdivisions Debt Securities
Fixed maturities, available-for-sale	$ 2,070	2,179
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities
Fixed maturities, available-for-sale		$ 1,195

Note 5. Fair Value Disclosure66

Note 5. Fair Value Disclosures: Fair Value Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 2,107	$ 3,481	$ 3,374	$ 3,267
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	1,445	1,000	1,650
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	(10)	34	(327)	289
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	(700)		(700)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(27)	(22)	(152)	(63)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales			(966)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	2,070	3,493	2,070	3,493
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	356	2,179	356	2,179
Fair Value, Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Liability, Assumed				1,000
Investment Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(204)	(102)	(947)	(102)
Other Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(185)		353
Net realized investment gains
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			141
GainOnSaleOfSubsidiaryToJointVentureMember
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings		1,281		1,281
Contingent Liability Member
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	1,445	1,000	1,650
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	(700)		(700)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	356	2,179	356	2,179
Fair Value, Measurement With Unobservable Inputs Reconciliation, Recurring Basis, Liability, Assumed				1,000
Contingent Liability Member | Investment Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(204)	(102)	(947)	(102)
Contingent Liability Member | Other Income
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(185)		353
Contingent Liability Member | GainOnSaleOfSubsidiaryToJointVentureMember
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings		1,281		1,281
US States and Political Subdivisions Debt Securities
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	2,107	2,248	2,179	2,314
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	(10)	(11)	(31)	(36)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements	(27)	(22)	(78)	(63)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 2,070	2,215	2,070	2,215
Commercial Mortgage Backed Securities
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value		1,233	1,195	953
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)		45	(296)	325
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements			(74)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales			(966)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value		$ 1,278		$ 1,278
Commercial Mortgage Backed Securities | Net realized investment gains
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings			$ 141

Note 5. Fair Value Disclosure67

Note 5. Fair Value Disclosures: Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Funds on deposit	$ 150,651	$ 173,350
Estimate of Fair Value, Fair Value Disclosure | Fair Value, Inputs, Level 2
Policy Loans Receivable	38	38
Funds on deposit	150,889	173,625
Long-term Debt	38,146	43,283
Carrying (Reported) Amount, Fair Value Disclosure
Policy Loans Receivable	38	38
Funds on deposit	150,651	173,350
Long-term Debt	$ 38,146	$ 43,335

Note 6. Variable Interest Ent68

Note 6. Variable Interest Entities (Details) $ in Thousands	Sep. 30, 2016USD ($)
Other Investments
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	$ 9,207

Note 7. Related Party Transac69

Note 7. Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Equity income from equity method investments				$ (7)	$ 579
Ebix Health Exchange Member | Fee Income Member
Revenue from Related Parties		$ 86	$ 25	288	25
Ebix Health Exchange Member | Selling, General and Administrative Expenses
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party		1,547	$ 362	4,132	$ 362
Ebix Health Exchange Member | Other Assets
Due from Related Parties		3,649		3,649		$ 1,397
Ebix Health Exchange Member | Accounts Payable and Accrued Liabilities
Due to Related Parties		2,936		2,936		405
IHC Health Solutions Sale Transaction Member
Loss Contingency Accrual, Period Increase (Decrease)		(204)		(947)
Ebix Health Exchange Holdings Member
DecreaseI In Ownership In Joint Venture, Percentage	11.00%
Proceeds from Divestiture of Interest in Joint Venture	$ 2,000
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions	49.00%
Equity Method Investments		6,123		6,123		$ 9,838
Equity Method Investment, Summarized Financial Information, Net Income (Loss)		(468)		(1,656)
Equity income from equity method investments		$ (264)		$ (709)

Note 8. Deconsolidation (Detail

Note 8. Deconsolidation (Details) - Accident Insurance Services Inc Sale Transaction Member $ in Thousands	1 Months Ended
	Sep. 30, 2016USD ($)
Proceeds from Divestiture of Interest in Consolidated Subsidiaries	$ 9,000
Other Income
Deconsolidation, Gain (Loss), Amount	$ (614)

Note 9. Goodwill and Other In71

Note 9. Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Goodwill	$ 41,573	$ 41,573		$ 41,573		$ 47,276
Intangible Assets, Net (Excluding Goodwill)	9,308	9,308		9,308		$ 14,598
Amortization of Intangible Assets		366	$ 425	1,057	$ 1,070
Specialty Health Segment Member
Goodwill, Written off Related to Sale of Business Unit	5,703
Net Intangible Assets Written off Related to Sale Of Business Unit	$ 4,233
Amortization of Intangible Assets		$ 366	$ 425	$ 1,057	$ 1,070

Note 9. Goodwill and Other In72

Note 9. Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets, Gross	$ 13,052	$ 19,201
Finite-Lived Intangible Assets, Accumulated Amortization	11,721	12,580
Customer Relationships
Finite-Lived Intangible Assets, Gross	13,052	18,201
Finite-Lived Intangible Assets, Accumulated Amortization	$ 11,721	12,497
Trademarks
Finite-Lived Intangible Assets, Gross		1,000
Finite-Lived Intangible Assets, Accumulated Amortization		$ 83

Note 9. Goodwill and Other In73

Note 9. Goodwill and Other Intangible Assets: Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 7,977	$ 7,977
Licensing Agreements
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 7,977	$ 7,977

Note 10. Income Taxes (Details)

Note 10. Income Taxes (Details) - AMIC - Domestic Tax Authority $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Operating Loss Carryforwards, Utilization, Amount	$ 109,770
Operating Loss Carryforwards	$ 144,749	[1]
[1]	Which expire in varying amounts through 2028, a significant portion expires in 2020.

Note 11. Reinsurance (Details)

Note 11. Reinsurance (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Due from reinsurers		$ 478,845		$ 478,845		$ 483,073
Premiums earned		67,335	$ 119,038	195,524	$ 361,595
Insurance benefits, claims and reserves		38,277	74,218	109,497	233,218
Medical Stop-Loss Segment Member
Premiums earned		2,668	52,040	10,671	157,029
Insurance benefits, claims and reserves		3,508	$ 37,369	9,875	$ 115,032
Ceded Credit Risk, Reinsurer Westport Insurance Corporation
Due from reinsurers		$ 52,235		$ 52,235
Stop-Loss Coinsurance Transaction With Westport Insurance Corporation Member
Material Nonrecurring Reinsurance Transactions	Effective January 1, 2016, all of the in-force stop-loss business of Standard Security Life and Independence American produced by Risk Solutions was co-insured in connection with the Risk Solutions Sale and Coinsurance Transaction (see Note 3). As a result of this transaction, amounts due from reinsurers includes $52,235,000 due from Westport at September 30, 2016; premiums earned from the Medical Stop-Loss segment was $2,668,000 and $10,671,000 for the three months and nine months ended September 30, 2016, respectively, compared to $52,040,000 and $157,029,000 for the comparable periods in 2015; and, insurance benefits, claims and reserves for the Medical Stop-Loss segment were $3,508,000 and $9,875,000 for the three months and nine months ended September 30, 2016, respectively, compared to $37,369,000 and $115,032,000 for the comparable periods in 2015.

Note 12. Debt and Junior Subo76

Note 12. Debt and Junior Subordinated Debt Securities (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Oct. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Repayment of long-term debt	$ 22,682	$ 4,789	$ 2,137
Loans Payable
Repayment of long-term debt		$ 4,789
Junior Subordinated Debt | Subsequent Event Type Long Term Debt Repayments Member
Repayment of long-term debt	$ 22,682

Note 13. Stockholders' Equity (

Note 13. Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Payments for repurchases of common stock	$ 3,522	$ 1,722
Private Placement Member
Treasury Stock, Shares, Acquired	215
Payments for repurchases of common stock	$ 3,522

Note 13. Stockholders' Equity78

Note 13. Stockholders' Equity: Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Accumulated other comprehensive income (loss)			$ (3,440)
Other comprehensive income (loss), net of tax	$ (755)	$ 1,922	6,904	$ (1,312)
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	47	(51)	(118)	(61)
Accumulated other comprehensive income (loss)	3,448		3,448
Accumulated Net Unrealized Investment Gain (Loss)
Accumulated other comprehensive income (loss)	4,054	(3,217)	(3,440)	22
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(182)	1,854	8,522	1,765
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	573	(68)	1,618	3,077
Other comprehensive income (loss), net of tax	(755)	1,922	6,904	(1,312)
Other comprehensive (income) loss, net of tax, attributable to noncontrolling interests	47	(51)	(118)	(61)
Unrealized Gains/Losses Purchased from Noncontrolling Interests	102		102	5
Accumulated other comprehensive income (loss)	$ 3,448	$ (1,346)	$ 3,448	$ (1,346)

Note 13. Stockholders' Equity79

Note 13. Stockholders' Equity: Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net realized investment gains	$ 2,367	$ (1,109)	$ 3,945	$ 2,991
Net impairment losses recognized in earnings	1,475	228	1,475	228
Income taxes (benefits)	2,636	7,750	8,566	13,599
Net income (loss)	4,366	14,888	124,669	25,375
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Unrealized Investment Gain (Loss)
Net realized investment gains	2,446	122	4,067	5,001
Net impairment losses recognized in earnings	1,475	228	1,475	228
Income (loss) before income taxes	971	(106)	2,592	4,773
Income taxes (benefits)	398	(38)	974	1,696
Net income (loss)	$ 573	$ (68)	$ 1,618	$ 3,077

Note 14. Share-based Compensa80

Note 14. Share-based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Details)	9 Months Ended
	Sep. 30, 2016
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
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 | 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
American Independence Corp Share Based Plans Total Member | Employee Stock Option | Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years

Note 14. Share-based Compensa81

Note 14. Share-based Compensation (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)shares	Sep. 30, 2015USD ($)$ / sharesshares	Dec. 31, 2015USD ($)shares
Independence Holding Company Share Based Plans Total Member
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | shares	0
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	13
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost	$ 170
Independence Holding Company Share Based Plans Total Member | Employee Stock Option
Proceeds from Stock Options Exercised	84
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	67
Employee Service Share-based Compensation, Tax Benefit Realized from Exercise of Stock Options	15
Independence Holding Company Share Based Plans Total Member | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 120	$ 89
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares	0	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
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options	$ 69
Employee Service Share-Based Compensation, Nonvested Awards, Total Compensation Cost Not Yet Recognized, Period For Recognition 1	1 year 3 months 18 days
Independence Holding Company Share Based Plans Total Member | Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares	73,150		125,850
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | shares	52,700
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid	$ 436
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	718		$ 743
American Independence Corp Share Based Plans Total Member | Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	212
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options	$ 262
American Independence Corp Share Based Plans Total Member | Cancelled Stock Option Awards Member
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Number of Employees Affected	7
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost	$ 646

Note 14. Share-based Compensa82

Note 14. Share-based Compensation: Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Independence Holding Company Share Based Plans Total Member
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	$ (16)		$ 255	$ 17
Allocated Share-based Compensation Expense, Net of Tax	(25)		385	25
Independence Holding Company Share Based Plans Total Member | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	(41)		640	42
Independence Holding Company Share Based Plans Total Member | Employee Stock Option | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense			170	55
Independence Holding Company Share Based Plans Total Member | Restricted Stock Units (RSUs) | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	16	$ 23	60	67
Independence Holding Company Share Based Plans Total Member | Stock Appreciation Rights (SARs) | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	(57)	(23)	410	(80)
American Independence Corp Share Based Plans Total Member
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	4	4	7	11
Allocated Share-based Compensation Expense, Net of Tax	7	7	14	21
American Independence Corp Share Based Plans Total Member | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	11	11	21	32
American Independence Corp Share Based Plans Total Member | Employee Stock Option | Selling, General and Administrative Expenses
Allocated Share-based Compensation Expense	$ 11	$ 11	$ 21	$ 32

Note 14. Share-based Compensa83

Note 14. Share-based Compensation: Schedule of Share-based Compensation, Stock Options, Activity (Details) - Employee Stock Option	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Independence Holding Company Share Based Plans Total Member
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | shares	584,080
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 9.35
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares	9,250
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares	$ 9.09
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | shares	574,830
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 9.35
American Independence Corp Share Based Plans Total Member
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number | shares	71,558
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 8.88
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares	30,446
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares	$ 8.62
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | shares	41,112
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Intrinsic Value | $ / shares	$ 9.07

Note 14. Share-based Compensa84

Note 14. Share-based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding (Details) - Independence Holding Company Share Based Plans Total Member - Employee Stock Option $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares	574,830
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares	574,830
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 | $	$ 4,501
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $	$ 4,501
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	2 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term	2 years

Note 14. Share-based Compensa85

Note 14. 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	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
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	$ 12.28	$ 12.26
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	$ 12.24
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	7,425

Note 15. Supplemental Disclos86

Note 15. Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Details
Income Taxes Paid (Refunds), Net	$ 11,312	$ 2,800
Interest Paid	$ 1,422	$ 1,318

Note 16. Segment Reporting_ S87

Note 16. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
TOTAL REVENUES	$ 78,542	$ 139,773	$ 232,133	$ 405,893
Income (loss) from continuing operations before income taxes	7,002	21,909	23,323	37,681
Operating Segments
TOTAL REVENUES	77,650	130,949	229,663	392,969
Income (loss) from continuing operations before income taxes	6,550	13,529	22,219	26,111
Segment Reconciling Items | Net realized investment gains
TOTAL REVENUES	2,367	(1,109)	3,945	2,991
Income (loss) from continuing operations before income taxes	2,367	(1,109)	3,945	2,991
Segment Reconciling Items | Net Impairment Losses Recognized In Earnings
TOTAL REVENUES	(1,475)	(228)	(1,475)	(228)
Segment Reconciling Items | Interest Expense
Income (loss) from continuing operations before income taxes	(440)	(444)	(1,366)	(1,354)
Medical Stop-Loss Segment Member
TOTAL REVENUES	5,433	53,320	21,397	160,310
Income (loss) from continuing operations before income taxes	2,176	5,218	13,926	14,176
Specialty Health Segment Member
TOTAL REVENUES	44,684	45,193	126,454	141,356
Income (loss) from continuing operations before income taxes	1,369	2,399	3,754	5,231
Group disability, life and DBL Segment Member
TOTAL REVENUES	26,196	24,404	77,409	65,879
Income (loss) from continuing operations before income taxes	5,323	4,400	13,533	10,774
Individual life annuities and other Segment Member
TOTAL REVENUES	717	7,987	2,053	25,287
Income (loss) from continuing operations before income taxes	(410)	3,623	(1,888)	1,238
Corporate
TOTAL REVENUES	620	45	2,350	137
Income (loss) from continuing operations before income taxes	$ (1,908)	$ (2,111)	$ (7,106)	$ (5,308)

Note 16. Segment Reporting (Det

Note 16. Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Amortization of Intangible Assets	$ 366	$ 425	$ 1,057	$ 1,070
Specialty Health Segment Member
Amortization of Intangible Assets	366	425	1,057	1,070
Individual life annuities and other Segment Member
Amortization of Other Deferred Charges	$ 296	$ 213	$ 1,949	$ 629