Note 3 - Pledged Assets

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Transfers and Servicing of Financial Assets [Text Block]

3. PLEDGED ASSETS

Pursuant to its reinsurance agreements, AMIC Ltd. is required to provide its ceding companies with collateral to secure its obligations to them. At December 31, 2021 and 2020, AMIC Ltd.’s collateral obligation to C&F amounted to $0 and $31,705,419, respectively. During 2021, AMIC Ltd.’s collateral obligations to C&F decreased to $0 due to the Commutation Agreement.

At December 31 2020, AMIC Ltd. has provided C&F with a Section 114 Trust, held by Comerica Bank, with restricted cash and cash equivalents and investments with a carrying value of $25,437,267. At December 31, 2020, AMIC Ltd. failed to meet its collateral obligations to C&F by $6,268,152 as AMIC Ltd. did not have sufficient restricted cash and cash equivalents and investments to meet this obligation.

Cash and Cash Equivalents at December 31, 2021 and 2020 include $1,794,001 and $2,163,741 held by Protexure in a fiduciary capacity, respectively.