Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

B. PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION

The unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial reporting and with the instructions to Form 10-Q. Accordingly, they do not include all the disclosures required by GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, for the year ended December 31, 2023 (the “2023 10-K”). Management believes that the disclosures are adequate to make the information presented not misleading, and all normal and recurring adjustments necessary to present fairly the financial position at June 30, 2024 the results of operations of the Company and its subsidiaries for all periods presented have been made. The results of operations for any interim period are not necessarily indicative of the operating results for a full year.

The preparation of the unaudited condensed consolidated interim financial statements requires management to make estimates and assumptions relating to the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated interim financial statements, and the reported amounts of revenue and expenses during the period. These amounts are inherently subject to change and actual results could differ significantly from these estimates.

New Accounting Pronouncements, Policy [Policy Text Block]

C. SIGNIFICANT ACCOUNTING POLICIES

On January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 was issued to improve the recognition and measurement of credit losses and to provide more decision-useful information about those losses. This new impairment model is based on the expected losses rather than incurred losses. ASU 2016-13 requires that a financial asset measured at amortized cost be presented at the net amount expected to be collected by means of an allowance for credit losses that is included in net earnings. Credit losses relating to available-for-sale debt securities are also required to be recorded through a reversible allowance for credit losses but is limited to the amount by which the fair value is less than amortized cost. The Company applied this standard to fixed maturity securities, accrued interest, premiums and reinsurance balances receivable, reinsurance balances recoverable on unpaid losses and settlement expenses, and other assets using the loss-rate method. In total, the cumulative-effect adjustment made to the financials as of the beginning of 2023 resulted in a $113,760 decrease in retained earnings. 

D. PROSPECTIVE ACCOUNTING STANDARDS

There are no prospective accounting standards that would have a material impact on our financial statements as of  June 30, 2024.

Property, Plant and Equipment, Impairment [Policy Text Block]

E. PROPERTY AND EQUIPMENT

Annually, the Company reviews the major asset classes of property and equipment held for impairment. As of  June 30, 2024 and December 31, 2023, the Company recognized no impairments. Property and equipment are summarized as follows:

	As of
	June 30,			December 31,
	2024			2023
Automobiles	$	693,489		$	645,458
Furniture and fixtures		530,817			525,843
Computer equipment and software		5,228,193			5,037,301
Home office		4,171,808			4,106,796
Total cost		10,624,307			10,315,398
Accumulated depreciation		(7,270,456	)		(6,990,076	)
Net property and equipment	$	3,353,851		$	3,325,322

Comprehensive Income, Policy [Policy Text Block]

F. COMPREHENSIVE EARNINGS

Comprehensive (loss) earnings include net earnings (loss) plus unrealized gains (losses) on available-for-sale investment securities, net of tax. In reporting the components of comprehensive earnings on a net basis in the statement of earnings and comprehensive earnings, the Company used a 21% tax rate.

The following table presents changes in accumulated other comprehensive (loss) earnings for unrealized gains and losses on available-for-sale securities:

	Six-Months Ended June 30,
	2024			2023
Beginning balance	$	(6,621,336	)	$	(8,841,517	)
Other comprehensive (loss) earnings before reclassification		(1,137,192	)		791,025
Amount reclassified from accumulated other comprehensive earnings		17,048			40,999
Net current period other comprehensive (loss) earnings		(1,120,144	)		832,024
Ending balance	$	(7,741,480	)	$	(8,009,493	)

The following table illustrates the components of other comprehensive earnings (loss) for each period presented in the condensed consolidated interim financial statements.

	Three-Month Periods Ended June 30,
	2024									2023
	Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax
Other comprehensive loss, net of tax
Unrealized gains and losses on AFS investments:
Unrealized holding losses arising during the period	$	(630,383	)	$	132,380		$	(498,003	)	$	(978,883	)	$	205,566		$	(773,317	)
Reclassification adjustment for losses included in net earnings		22,747			(4,776	)		17,971			11,378			(2,390	)		8,988
Total other comprehensive loss	$	(607,636	)	$	127,604		$	(480,032	)	$	(967,505	)	$	203,176		$	(764,329	)

	Six-Month Periods Ended June 30,
	2024									2023
	Pre-tax			Tax			After-tax			Pre-tax		Tax			After-tax
Other comprehensive (loss) earnings, net of tax
Unrealized gains and losses on AFS investments:
Unrealized holding (losses) gains arising during the period	$	(1,439,484	)	$	302,292		$	(1,137,192	)	$	1,001,297	$	(210,272	)	$	791,025
Reclassification adjustment for losses included in net earnings		21,580			(4,532	)		17,048			51,897		(10,898	)		40,999
Total other comprehensive (loss) earnings	$	(1,417,904	)	$	297,760		$	(1,120,144	)	$	1,053,194	$	(221,170	)	$	832,024

The following table provides the reclassifications from accumulated other comprehensive earnings for the periods presented:

Amounts Reclassified from
Accumulated Other Comprehensive Loss
	Six-Month Periods Ended
Details about Accumulated Other	June 30,						Affected Line Item in the Statement
Comprehensive Earnings Component	2024			2023			where Net Earnings is Presented
Unrealized losses on AFS investments:
	$	21,580		$	51,897		Net realized investment losses
		(4,532	)		(10,898	)	Income tax (benefit)
Total reclassification adjustment, net of tax	$	17,048		$	40,999

Risk And Uncertainties [Policy Text Block]

G. RISKS AND UNCERTAINTIES

Certain risks and uncertainties are inherent to our day-to-day operations. Adverse changes in the economy could lower demand for our insurance products or negatively impact our investment results, both of which could have an adverse effect on the revenue and profitability of our operations. War, terrorism, supply chain disruptions, labor shortages and tightening, inflation and related monetary policy responses, and recession fears are also causing volatility and disruptions in credit and capital markets, adverse developments or general investor sentiment regarding the value of our investment securities as a result of rising interest rates or otherwise, and the business prospects of the industry we serve. The cumulative effects of these events on the Company cannot be predicted, but could reduce demand for our insurance policies, result an in increased level of losses, settlement expenses or other operating costs, or reduce the market value of invested assets held by the Company.

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

H. INTANGIBLES

Intangible assets of $1.0 million are reported within Other Assets on the Consolidated Balance Sheets. Finite-lived intangible assets are amortized over their estimated useful lives.