Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Deferred Policy Acquisition Costs

NOTE 8 – DEFERRED POLICY ACQUISITION COSTS

The following table provides an analysis of the roll forward of the Company’s deferred policy acquisition costs:

	Year ended December 31
	2015			2014			2013
Deferred policy acquisition costs at beginning of year	$	3,882,825		$	3,636,003		$	3,785,594
Policy acquisition costs deferred during year		6,465,232			6,232,930			5,882,536
Policy acquisition costs amortized during year		(6,114,661	)		(5,986,108	)		(6,032,127	)
Deferred policy acquisition costs at end of year	$	4,233,396		$	3,882,825		$	3,636,003

Deferred policy acquisition costs consist of commissions (net of ceding commission), premium taxes, inspection fees and certain other underwriting costs, which are related to and vary with the production of Crusader policies. Policy acquisition costs are deferred and amortized as the related premium is earned. Deferred acquisition costs are reviewed to determine if they are recoverable from future income on insurance policies generated from these costs, including investment income.