Investments (Tables)

9 Months Ended

Sep. 30, 2017

Investments Tables

Investment income

A summary of investment income, net of investment expenses, and net realized gains and losses is as follows:

	Three Months Ended September 30					Nine Months Ended September 30
	2017			2016		2017			2016
Fixed maturities	$	323,023		$	196,327	$	746,787		$	554,992
Short-term investments		(13,335	)		38,243		64,444			104,119
Gross investment income		309,688			234,570		811,231			659,111
Less investment expenses		(196	)		—		(25,446	)		—
Net investment income		309,492			234,570		785,785			659,111
Net realized gains (losses)		373			—		528			(1,278	)
Net investment income, realized gains and losses	$	309,865		$	234,570	$	786,313		$	657,833

Available for sale investments

The amortized cost and estimated fair values of investments in fixed maturities by category are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
September 30, 2017
Available for sale:
Fixed maturities:
Certificates of deposit	$	35,826,000	$	—	$	—		$	35,826,000
U.S. treasury securities		9,528,210		248		(9,395	)		9,519,063
Corporate securities		22,983,627		49,063		(36,981	)		22,995,709
Agency mortgage-backed securities		15,941,512		3,754		(17,143	)		15,928,123
Total fixed maturities	$	84,279,349	$	53,065	$	(63,519	)	$	84,268,895

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2016
Available for sale:
Fixed maturities:
Certificates of deposit	$	61,280,000	$	—	$	—		$	61,280,000
U.S. treasury securities		19,091,842		14,205		(2,122	)		19,103,925
Total fixed maturities	$	80,371,842	$	14,205	$	(2,122	)	$	80,383,925

Unrealized gains (losses) on investments

A summary of the unrealized gains (losses) on investments carried at fair value and the applicable deferred federal income taxes is shown below:

	September 30			December 31
	2017			2016
Gross unrealized gains of fixed maturities	$	53,065		$	14,205
Gross unrealized (losses) of fixed maturities		(63,519	)		(2,122	)
Net unrealized gains (losses) on investments		(10,454	)		12,083
Deferred federal tax (expense) benefit		3,554			(4,108	)
Net unrealized gains (losses), net of deferred income taxes	$	(6,900	)	$	7,975

Components of investments in unrealized loss position for continiuos period of time

A summary of estimated fair value and gross unrealized losses in a gross unrealized loss position by the length of time in which the securities have continually been in that position is shown below:

	Less than 12 Months					12 Months or Longer
	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
September 30, 2017:
U.S. treasury securities	$	9,519,063	$	(9,395	)	$	—	$	—
Corporate securities		9,731,038		(36,981	)		—		—
Agency mortgage-backed securities		12,973,738		(17,143	)		—		—
Total	$	32,223,839	$	(63,519	)	$	—	$	—

	Less than 12 Months				12 Months or Longer
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
December 31, 2016:
U.S. treasury securities	$	—	$	—	$	9,097,285	$	(2,122	)
Total	$	—	$	—	$	9,097,285	$	(2,122	)

Summary of state held deposits

The following securities from four different banks represent statutory deposits that are assigned to and held by the California State Treasurer and the Insurance Commissioner of the State of Nevada. These deposits are required for writing certain lines of business in California and for admission to transact insurance business in the state of Nevada:

	September 30		December 31
	2017		2016
Certificates of deposit	$	400,000	$	500,000
Short-term investments		200,000		100,000
Total state held deposits	$	600,000	$	600,000

Investment in short term assets

Short-term investments have an initial maturity of one year or less and consist of the following:

	September 30		December 31
	2017		2016
U.S. treasury money market fund	$	6,673,261	$	8,542,292
U.S. treasury bills		1,174,217		—
Short-term bonds		999,877		—
Certificates of deposit		200,000		1,098,000
Commercial paper		998,570		—
Bank money market accounts		3,032,827		562,548
Bank savings accounts		1,763		1,763
Total short-term investments	$	13,080,515	$	10,204,603