Policy Acquisition Costs

12 Months Ended

Dec. 31, 2017

Policy Acquisition Costs [Abstract]

Policy Acquisition Costs

4.     POLICY ACQUISITION COSTS

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

	2017		2016
Deferred policy acquisition costs (DAC), beginning of year	$	4,162,927	$	3,982,734
Deferred:
Direct commission		7,635,524		7,156,434
Premium taxes		902,438		723,067
Ceding commissions		(983,634)		(959,451)
Underwriting		435,916		384,814
Net deferred		7,990,245		7,304,865
Amortized		7,560,757		7,124,672
DAC, end of year	$	4,592,415	$	4,162,927
Policy acquisition costs:
Amortized to expense	$	7,560,757	$	7,124,672
Period costs:
Contingent commission		1,795,359		1,826,944
Other underwriting expenses		7,951,584		6,896,931
Total policy acquisition costs	$	17,307,700	$	15,848,547