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Note 13 - Dividend Restrictions and Statutory Requirements

12 Months Ended

Dec. 31, 2021

Restrictions on Dividends, Loans and Advances [Text Block]

13. DIVIDEND RESTRICTIONS AND STATUTORY REQUIREMENTS

Our ability to pay dividends to our shareholders and to pay our operating expenses is dependent on cash dividends from our subsidiaries. AMIC Ltd.’s ability to pay dividends to AmerInst is subject to the provisions of the Bermuda insurance and companies laws and the requirement to provide the ceding companies with collateral. Under the Companies Act, AMIC Ltd. would be prohibited from declaring or paying a dividend if such payment would reduce the realizable value of its assets to an amount less than the aggregate value of its liabilities, issued share capital, and share premium accounts. In addition, AMIC Ltd. must be able to pay its liabilities as they become due in the ordinary course of its business, and fund its collateral obligations to ceded companies, after the payment of a dividend. The payment of such dividends by AMIC Ltd. to us is also limited under Bermuda law by the Insurance Act and Related Regulations which require that AMIC Ltd. maintain minimum levels of solvency and liquidity as described above. For the years ended December 31, 2021 and 2020 these requirements have been met as follows:

	Statutory Capital & Surplus				Relevant Assets
	Minimum		Actual		Minimum		Actual
December 31, 2021	$	1,000,000	$	13,589,876	$	—	$	619,096
December 31, 2020	$	3,140,502	$	24,746,999	$	21,550,831	$	28,678,753

At December 31, 2021, approximately $.6 million was available for the declaration of dividends by AMIC Ltd. to us. Management expects that any dividend AMIC, Ltd. declares to us over the next twelve-month time period will be utilized entirely by us to fund our day-to-day operations. Therefore, as of December 31, 2021, no amount was available for the declaration of dividends by us to our shareholders.

Statutory loss for the years ended December 31, 2021 and 2020 was $574,228 and $16,483,222, respectively.