Policy Acquisition Costs

12 Months Ended

Dec. 31, 2020

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:

	2020		2019
Deferred policy acquisition costs (DAC), beginning of year	$	5,269,256	$	5,247,188
Deferred:
Direct commission		8,804,039		9,172,742
Premium taxes		1,145,935		1,091,575
Ceding commissions		(762,528)		(738,756)
Underwriting		1,007,055		891,612
Net deferred		10,194,501		10,417,173
Amortized		10,034,137		10,395,105
DAC, end of year	$	5,429,620	$	5,269,256
Policy acquisition costs:
Amortized to expense	$	10,034,137	$	10,395,105
Period costs:
Contingent commission		746,518		1,365,254
Other underwriting expenses		7,748,791		8,259,646
Total policy acquisition costs	$	18,529,446	$	20,020,005