Note 4 - Policy Acquisitions Costs

12 Months Ended

Dec. 31, 2023

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:

	2023			2022
Deferred policy acquisition costs (DAC), beginning of year	$	7,167,036		$	6,538,844
Deferred:
Direct commission		13,849,194			12,330,776
Premium taxes		1,702,222			1,271,971
Ceding commissions		(485,089	)		(693,178	)
Underwriting		1,423,178			1,186,150
Net deferred		16,489,505			14,095,719
Amortized		15,104,082			13,467,527
DAC, end of year	$	8,552,459		$	7,167,036
Policy acquisition costs:
Amortized to expense	$	15,104,082		$	13,467,527
Period costs:
Contingent commission		2,290,826			1,796,256
Other underwriting expenses		11,127,065			9,632,337
Total policy acquisition costs	$	28,521,973		$	24,896,120