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(Continued) 

Assumed and ceded life reinsurance activity as of December 31, 2019 and 2018 is summarized as follows: 

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The Company's reinsurance recoverable on ceded reinsurance was $3.7 million in 2019 and 2018. Premiums, claims and surrenders assumed and ceded for all lines of business for these years are summarized as follows: 

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SPFIC has catastrophe reinsurance that covers the first event in excess of a $0.5 million deductible up to $10.0 million. In consideration for a reinstatement premium, second event coverage is provided in excess of a $0.5 million deductible up to $10.0 million. The annual premium was approximately $0.8 million in 2019, 2018 and 2017. 

## (6) STOCKHOLDERS' EQUITY AND RESTRICTIONS 

## STOCK 

The two classes of our common stock are equal in all respects, except (a) each Class A share is entitled to receive twice the cash dividends paid on a per share basis to the Class B common stock, if any; and (b) the Class B common stock has the exclusive right to elect a simple majority of the Board of Directors of Citizens and the Class A common stock elects the remaining directors. 

