Table of Contents CITIZENS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Assumed and ceded life reinsurance activity as of December 31, 2019 and 2018 is summarized as follows: 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: 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. 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. (6) STOCKHOLDERS' EQUITY AND RESTRICTIONS STOCK December 31, 2019 | 10-K 91 December 31, (In thousands) 2019 2018 Aggregate assumed life insurance in force $ 4,892 5,202 Aggregate ceded life insurance in force $ 486,937 490,295 Net life insurance in force $ 4,246,781 4,350,538 Years ended December 31, (In thousands) 2019 2018 2017 Premiums from short-duration contracts: Direct $ 6,804 6,840 6,933 Assumed — — — Ceded (808) (804) (781) Net premiums earned 5,996 6,036 6,152 Premiums from long-duration contracts: Direct 180,205 184,721 193,778 Assumed 99 99 142 Ceded (1,953) (2,996) (2,352) Net premiums earned 178,351 181,824 191,568 Total premiums earned $ 184,347 187,860 197,720 Claims and surrenders assumed $ 141 159 247 Claims and surrenders ceded $ (940) (705) (946)