Statutory Financial Information and Dividend Restrictions	12 Months Ended
Dec. 31, 2018
Insurance [Abstract]
Statutory Financial Information and Dividend Restrictions	18. Statutory Financial Information and Dividend Restrictions Under Illinois insurance regulations, Federal Life is required to maintain minimum surplus of $1.5 million. As of December 31, 2018 and 2017, its surplus exceeded the minimum required. Federal Life Holding Company is required to maintain a minimum surplus of $2.0 million. Federal Life’s statutory loss and capital and surplus, as determined in accordance with accounting practices prescribed or permitted by the State of Illinois Department of Insurance were approximately $2.6 million and $24.9 million, respectively, as of December 31, 2018, compared with a gain of $0.2 million and capital and surplus of $14.9 million, respectively, as of December 31, 2017. Each licensed insurance company’s state of domicile imposes minimum risk-based capital requirements that were developed by the National Association of Insurance Commissioners (“NAIC”). The formulas for determining the amount of risk-based capital utilize various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Either the weighting factors or the methodology for determining the weighting factors is specified by the NAIC. Regulatory compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to authorized control level risk-based capital, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. Federal Life exceeded the minimum risk-based capital requirements at December 31, 2018 and December 31, 2017. Federal Life faces regulatory restrictions on the ability to transfer funds to the registrant (Federal Life Group) in the form of cash dividends, loans or advances. As of December 31, 2018, the amount of restricted net assets amounts to $22.4 million, which equals 90% of Federal Life’s capital and surplus of $24.9 million. The Illinois Department of Insurance has approved permitted practice to admit a $2.0 million Guaranty Fund Note issued by Federal Life Holding Company and purchased by Federal Life. Without this approval, this asset would be non-admitted on Federal Life’s statutory statement and total Capital and Surplus would be reduced by $2.0 million to $22.9 million. This amount exceeds the required minimum capital. The Guaranty Fund Note eliminates in the consolidated financial statements and does not impact the accompanying reported financials.

Statutory Financial Information and Dividend Restrictions

12 Months Ended

Dec. 31, 2018

Statutory Financial Information and Dividend Restrictions

18. Statutory Financial Information and Dividend Restrictions

Under Illinois insurance regulations, Federal Life is required to maintain minimum surplus of $1.5 million. As of December 31, 2018 and 2017, its surplus exceeded the minimum required. Federal Life Holding Company is required to maintain a minimum surplus of $2.0 million.

Federal Life’s statutory loss and capital and surplus, as determined in accordance with accounting practices prescribed or permitted by the State of Illinois Department of Insurance were approximately $2.6 million and $24.9 million, respectively, as of December 31, 2018, compared with a gain of $0.2 million and capital and surplus of $14.9 million, respectively, as of December 31, 2017.

Each licensed insurance company’s state of domicile imposes minimum risk-based capital requirements that were developed by the National Association of Insurance Commissioners (“NAIC”). The formulas for determining the amount of risk-based capital utilize various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Either the weighting factors or the methodology for determining the weighting factors is specified by the NAIC. Regulatory compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to authorized control level risk-based capital, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. Federal Life exceeded the minimum risk-based capital requirements at December 31, 2018 and December 31, 2017.

Federal Life faces regulatory restrictions on the ability to transfer funds to the registrant (Federal Life Group) in the form of cash dividends, loans or advances. As of December 31, 2018, the amount of restricted net assets amounts to $22.4 million, which equals 90% of Federal Life’s capital and surplus of $24.9 million.

The Illinois Department of Insurance has approved permitted practice to admit a $2.0 million Guaranty Fund Note issued by Federal Life Holding Company and purchased by Federal Life. Without this approval, this asset would be non-admitted on Federal Life’s statutory statement and total Capital and Surplus would be reduced by $2.0 million to $22.9 million. This amount exceeds the required minimum capital. The Guaranty Fund Note eliminates in the consolidated financial statements and does not impact the accompanying reported financials.

Federal Life Group, Inc. 10-K