Note 15. Contingencies Third Party Administrator A third party administrator with whom we formerly did business (Plaintiff or TPA)) filed a Complaint dated May 17, 2017 in the United States District Court, Northern District of Texas, Dallas Division, naming IHC, Madison National Life, Standard Security Life, and IHC Carrier Solutions, Inc. (collectively referred to as Defendants). Plaintiff and Defendants are collectively referred to herein as the Parties. The Complaint concerned agreements entered into by Standard Security Life and Madison National Life with Plaintiff, as well as other allegations made by Plaintiff against Defendants. The Complaint sought injunctive relief and damages in an amount exceeding $50,000,000, payments allegedly owed to Plaintiff under the agreements totaling at least $3,082,000 through 2014, plus additional amounts for 2015 and 2016, and exemplary and punitive damages as allowed by law and fees and costs. Defendants moved to Compel Arbitration and Dismiss or Stay the original Complaint. Plaintiff filed an Amended Complaint on August 18, 2017. Defendants filed a Motion to Compel Arbitration or Stay the Amended Complaint. The Parties agreed to enter into an Order staying the action filed in Texas. The Parties disputed claims moved in part to arbitration. Standard Security Life and Madison National Life demanded arbitration against this TPA. The Arbitration Panel issued an Order splitting the hearing into two phases. Standard Security Life and Madison National Life successfully presented their claims in Phase I on September 25 through September 28, 2018. The TPAs counterclaims were heard during Phase II held on February 11, 2019 through February 15, 2019. Standard Security Life and Madison National Life successfully opposed the counterclaims asserted by the TPA as the Arbitration Panel denied all claims against Standard Security Life and Madison National Life. Standard Security Life and Madison National Life filed the Petition to Confirm the Arbitration Award. The TPA opposed this Motion. On June 17, 2019, the Court entered its Final Judgment and Order Confirming the Arbitration Award (the Final Judgment). On July 15, 2019, Plaintiff filed a Notice of Appeal to the United States Court of Appeals for the Seventh Circuit from the judgment entered on June 17, 2019. Since the arbitration is complete, the stay in the Texas litigation was lifted, and Defendants filed a Motion to Dismiss. On October 16, 2019, the Court granted in part and denied in part Defendants Motion to Dismiss. The Court found that an arbitration agreement, including an arbitration provision, exists between the parties and therefore, the parties were directed to proceed with arbitration. In light of this holding, the Court stayed and administratively closed the action pending the outcome of another arbitration. On October 29, 2019, the Plaintiff demanded arbitration against Standard Security Life, Madison National Life, and Independence Holding Company seeking a declaration by a new arbitration panel that the claims alleged in the complaint in the dismissed Texas litigation are not arbitrable. This demand for a new arbitration has no impact on the Final Judgment. Multistate Market Conduct Examination As previously disclosed, our subsidiaries Standard Security Life, Madison National Life and Independence American have been selected for a multistate market conduct exam ("MCE") related to our short term medical, limited medical and fixed indemnity health insurance products for the period of January 1, 2014 through September 30, 2017. The insurance departments of five jurisdictions (Delaware, Wisconsin, District of Columbia, Kansas and South Dakota) are serving as leads, and the District of Columbia Department of Insurance, Securities and Banking and the Delaware Department of Insurance are serving as the managing lead states of the MCE. In addition to the five lead states, 36 other states are participating in the MCE. Each of Standard Security Life, Madison National Life and Independence American responded to inquiries and document production requests in the MCE and has proactively communicated and cooperated with the applicable regulatory agencies for the MCE. Each of these subsidiaries has also provided a detailed action plan to regulators that summarizes its enhanced compliance and control mechanisms. On July 18, 2019, each of Standard Security Life, Madison National Life and Independence American received a proposed Regulatory Settlement Agreement ("RSA") to resolve the MCE with respect to such company. The proposed RSAs provide for monetary penalties as well as requirements related to such subsidiaries' marketing activities and periodic reporting to regulators. Standard Security Life, Madison National Life and Independence American have preliminarily responded to the proposed RSAs and anticipate entering into confidential discussions with the insurance departments of the lead jurisdictions once they have reviewed. At this time, the Company is not able to reasonably estimate any settlement amount or range of settlement amounts that may result from such discussions.