Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2021

Deferred Policy Acquisition Costs

Deferred Policy Acquisition Costs

NOTE 9 – 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
	2021			2020
Deferred policy acquisition costs at beginning of year	$	3,503,248		$	3,619,594
Policy acquisition costs deferred during year		2,926,203			4,782,461
Policy acquisition costs amortized during year		(5,442,645	)		(4,898,807	)
Deferred policy acquisition costs at end of year	$	986,806		$	3,503,248

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.  The Company recognized an allowance against its deferred acquisition costs of $1,409,654 and $0 for the years ended December 31, 2021 and 2020, respectively.