Note 4 - Policy Acquisitions Costs

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Deferred Policy Acquisition Costs [Text Block]

4. POLICY ACQUISITION COSTS

Policy acquisition costs deferred and amortized to income for the years ended December 31 are summarized as follows:

	2022			2021
Deferred policy acquisition costs (DAC), beginning of year	$	6,538,844		$	5,429,620
Deferred:
Direct commission		12,330,776			10,772,089
Premium taxes		1,271,971			1,215,613
Ceding commissions		(693,178	)		(827,540	)
Underwriting		1,186,150			1,003,215
Net deferred		14,095,719			12,163,377
Amortized		13,467,527			11,054,153
DAC, end of year	$	7,167,036		$	6,538,844
Policy acquisition costs:
Amortized to expense	$	13,467,527		$	11,054,153
Period costs:
Contingent commission		1,796,256			1,463,505
Other underwriting expenses		9,632,337			8,307,242
Total policy acquisition costs	$	24,896,120		$	20,824,900