Note 3 - Liability for Unpaid Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

3.

LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES

The following table presents a reconciliation of the beginning and ending balances for the liability for unpaid losses and loss adjustment expenses for the

nine

months ended

September 

30,

2018

and

2017:

	2018			2017
Liability—beginning of period	$	11,228,507		$	8,941,991
Incurred related to:
Current year		4,660,077			4,022,703
Prior years		—			—
Total incurred		4,660,077			4,022,703
Paid related to:
Current year		(202,620	)		(187,963	)
Prior years		(3,083,995	)		(2,198,297	)
Total paid		(3,286,615	)		(2,386,260	)
Liability—end of period	$	12,601,969		$	10,578,434

As incurred losses for the

nine

months ended

September 

30,

2018

are derived by multiplying our estimated loss ratio of

64.5%

and the net premiums earned, as stated in Results of Operations below, all incurred losses are assumed to be current year losses.