2.	INVESTMENTS

The Company's investments are primarily composed of fixed income debt securities and common and preferred stock equity securities. We carry our equity securities at fair value and categorize all our fixed maturity debt securities as available-for-sale (AFS), which are carried at fair value. When available, quoted market prices are obtained to determine fair value for the Company's investments. If a quoted market price is

not

available, fair value is estimated using a secondary pricing source or using quoted market prices of similar securities. The Company has

investment securities for which fair value is determined using Level

inputs as defined in

Note

– Fair Value Disclosures

. Realized gains and losses on disposition of investments are based on specific identification of the investments sold on the settlement date, which does

not

differ significantly from trade date accounting.

Available-for-Sale Fixed Maturity and Equity Securities

The

following tables

are a summary of the proceeds from sales, maturities, and calls of AFS fixed maturity and equity securities and the related gross realized gains and losses.

	For the Three-Months Ended September 30,
								Net Realized
	Proceeds		Gains		Losses			Gains (Losses)
2020
Fixed maturity securities	$	3,428,951	$	67,102	$	—		$	67,102
Common stocks		986,939		93,984		(226,398	)		(132,414	)
Preferred stocks		76,500		5,979		—			5,979
2019
Fixed maturity securities	$	5,771,988	$	99,445	$	(10,183	)	$	89,262
Common stocks		1,320,803		185,319		(133,100	)		52,219

	For the Nine-Months Ended September 30,
								Net Realized
	Proceeds		Gains		Losses			Gains (Losses)
2020
Fixed maturity securities	$	12,813,180	$	412,577	$	(926	)	$	411,651
Common stocks		4,247,936		470,406		(1,282,423	)		(812,017	)
Preferred stocks		221,990		8,808		(10,762	)		(1,954	)
2019
Fixed maturity securities	$	19,522,461	$	264,737	$	(26,332	)	$	238,405
Common stocks		5,998,276		960,420		(457,702	)		502,718

The amortized cost and estimated fair value of fixed income securities at

September 30, 2020

, by contractual maturity,

are shown as follows

	Amortized Cost		Fair Value
Due in one year or less	$	1,275,943	$	1,305,900
Due after one year through five years		18,436,788		19,612,776
Due after five years through 10 years		16,366,929		18,431,137
Due after 10 years		21,586,567		23,678,509
Asset and mortgage backed securities without a specific due date		38,843,607		40,057,464
Redeemable preferred stocks		215,805		232,699
Total fixed maturity securities	$	96,725,639	$	103,318,485

Expected maturities

may

differ from contractual maturities due to call provisions on some existing securities.

The following table is a schedule of cost or amortized cost and estimated fair values of investments in securities classified as available for sale at

September 30, 2020

and

December 31, 2019

	Cost or				Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses
2020
Fixed maturity securities:
U.S. Treasury	$	1,352,935	$	1,390,344	$	37,491	$	(82	)
MBS/ABS/CMBS		38,843,607		40,057,464		1,354,537		(140,680	)
Corporate		38,295,706		42,339,992		4,141,760		(97,474	)
Municipal		18,017,586		19,297,986		1,288,389		(7,989	)
Redeemable preferred stock		215,805		232,699		16,894		—
Total fixed maturity securities	$	96,725,639	$	103,318,485	$	6,839,071	$	(246,225	)

					Gross Unrealized
	Amortized Cost		Fair Value		Gains		Losses
2019
Fixed maturity securities:
U.S. Treasury	$	800,462	$	800,219	$	684	$	(927	)
MBS/ABS/CMBS		33,802,911		34,290,995		540,743		(52,659	)
Corporate		39,442,202		41,915,103		2,482,378		(9,477	)
Municipal		14,302,840		15,081,255		808,081		(29,666	)
Total fixed maturity securities	$	88,348,415	$	92,087,572	$	3,831,886	$	(92,729	)

All the Company's collateralized securities carry an average credit rating of AA+ by

one

or more major rating agencies and continue to pay according to contractual terms. Included within MBS/ABS/CMBS, as defined in

Note

– Fair Value Disclosures,

are residential mortgage backed securities with

fair values o

f $

13,590,690

and $

9,909,462

and commercial mortgage backed securities of $

13,811,945

and $

13,408,898

September 30, 2020

and

December 31, 2019

, respectively.

ANALYSIS

The following tables are also used as part of the impairment analysis and displays the total value of securities that were in an unrealized loss position as of

September 30, 2020

and

December 31, 2019

The tables

segregate the securities based on type, noting the fair value, cost or amortized cost, and unrealized loss on each category of investment as well as in total. The table further classifies the securities based on the length of time they have been in an unrealized loss position.

	September 30, 2020									December 31, 2019
				12 Months									12 Months
	< 12 Months			& Greater			Total			< 12 Months			& Greater			Total
Fixed Maturity Securities:
U.S. Treasury
Fair value	$	300,000		$	—		$	300,000		$	—		$	699,391		$	699,391
Amortized cost		300,082			—			300,082			—			700,318			700,318
Unrealized loss		(82	)		—			(82	)		—			(927	)		(927	)
MBS/ABS/CMBS
Fair value		11,438,192			2,014,666			13,452,858			6,398,581			5,056,732			11,455,313
Amortized cost		11,556,312			2,037,226			13,593,538			6,420,488			5,087,484			11,507,972
Unrealized loss		(118,120	)		(22,560	)		(140,680	)		(21,907	)		(30,752	)		(52,659	)
Corporate
Fair value		1,075,259			—			1,075,259			1,396,706			—			1,396,706
Amortized cost		1,172,733			—			1,172,733			1,406,183			—			1,406,183
Unrealized loss		(97,474	)		—			(97,474	)		(9,477	)		—			(9,477	)
Municipal
Fair value		491,160			—			491,160			1,969,468			—			1,969,468
Amortized cost		499,149			—			499,149			1,999,134			—			1,999,134
Unrealized loss		(7,989	)		—			(7,989	)		(29,666	)		—			(29,666	)
Total
Fair value		13,304,611			2,014,666			15,319,277			9,764,755			5,756,123			15,520,878
Amortized cost		13,528,276			2,037,226			15,565,502			9,825,805			5,787,802			15,613,607
Unrealized loss	$	(223,665	)	$	(22,560	)	$	(246,225	)	$	(61,050	)	$	(31,679	)	$	(92,729	)

The fixed income portfolio contained

securities in an

unrealized loss position

as of

September 30, 2020

. Of these

securities,

have been in an unrealized loss position for

consecutive months or longer and represent $

22,560

in unrealized losses. All fixed income securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. Credit-related impairments on fixed income securities that we do

not

plan to sell, and for which we are

not

more likely than

not

to be required to sell, are recognized in net earnings. Any non-credit related impairment is recognized in comprehensive earnings. Based on management's analysis, the fixed income portfolio is of a high credit quality and it is believed it will recover the amortized cost basis of the fixed income securities. Management monitors the credit quality of the fixed income investments to assess if it is probable that the Company will receive its contractual or estimated cash flows in the form of principal and interest.

There were

other-than-temporary impairment losses recognized in net earnings during the

nine

months ended

September 30, 2020

. For all fixed income securities at a loss at

September 30, 2020

, management believes it is probable that the Company will receive all contractual payments in the form of principal and interest. In addition, the Company is

not

required to, nor does it intend to sell these investments prior to recovering the entire amortized cost basis for each security, which

may

be at maturity. The fixed income securities in an unrealized loss position were

not

other-than-temporarily impaired at

September 30, 2020

and

December 31, 2019

UNREALIZED GAINS AND LOSSES ON EQUITY SECURITIES

Net unrealized gains

for the

three

and

nine

months ended

September 30, 2020

for equity securities held as of

September 30, 2020

were $

981,779

and $

2,195

respectively. Net unrealized (losses) gains for the

three

and

nine

months ended

September 30, 2019

for equity securities held as of

September 30, 2019

were $

(

7,603

)

and $

1,716,124

, respectively.

Other Invested Assets

Other invested assets include membership in the Federal Home Loan Bank of Chicago (FHLBC), which occurred in

February 2018.

Our

$200,000

investment in FHLBC stock is carried at cost. Due to the nature of our membership in the FHLBC, the carrying amount approximates fair value.

In addition,

other invested assets

include privately held investments of

$305,000,

and notes issued for

$625,000

and

$650,000

July 30, 2019

and

January 28, 2020,

respectively. Both notes bear interest at

6.5%

and are amortized over

years with a balloon payment due

July 30, 2029.