The Company uses fair value measurements to record fair value adjustments to certain assets to determine fair value disclosures. Fixed maturity available-for-sale securities and equity securities are recorded at fair value on a recurring basis. FASB ASC Topic 820 “Fair Value Measurements and Disclosures” establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The three levels of the fair value hierarchy under ASC Topic 820 are as follows:

Under ASC Topic 820, we base fair values of assets on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy in FASB ASC Topic 820. Fair value measurements for assets where there exists limited or no observable market data and, therefore, are based primarily upon our or other third-party’s estimates, are often calculated based on the characteristics of the asset, the economic and competitive environment and other such factors. Management uses its best judgment in estimating the fair value of financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts we could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period end and have not been re-evaluated or updated for purposes of the consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. Additionally, changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future valuations.

We obtain one price for each security primarily from a third-party pricing service (“pricing service”), which generally uses quoted prices or other observable inputs for the determination of fair value. The pricing service normally derives the security prices through recently reported trades for identical or similar securities, making adjustments through the reporting date based upon available observable market information. For securities not actively traded, the pricing service may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, non-binding broker quotes, benchmark yields, credit spreads, default rates, and prepayment speeds.

In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest-level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.

Amortized cost/cost, gross unrealized gains, gross unrealized losses, and fair value of fixed maturity securities by major security type for the results at June 30, 2020 and December 31, 2019 are as follows:

	Amortized Cost/Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2020
U.S. government	$	11,359,661	$	205,497	$	18,101	$	11,547,057
States, territories, and possessions		1,088,928		59,450		—		1,148,378
Subdivisions of states, territories, and possessions		12,290,490		495,142		6,946		12,778,686
Industrial and miscellaneous		72,558,805		3,686,060		201,280		76,043,585
Total fixed maturity securities	$	97,297,884	$	4,446,149	$	226,327	$	101,517,706

	Amortized Cost/Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2019
U.S. government	$	10,689,829	$	100,223	$	38,490	$	10,751,562
States, territories, and possessions		1,096,638		46,385		—		1,143,023
Subdivisions of states, territories, and possessions		12,440,863		389,472		7,470		12,822,865
Industrial and miscellaneous		69,445,114		1,591,777		6,299		71,030,592
Total fixed maturity securities	$	93,672,444	$	2,127,857	$	52,259	$	95,748,042

The table below sets forth the contractual maturity profile of our investments in fixed maturity securities at June 30, 2020 and December 31, 2019. Expected maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties.

	June 30, 2020				December 31, 2019
	Amortized Cost/Cost		Fair Value		Amortized Cost/Cost		Fair Value
Due in less than one year	$	17,075,418	$	17,211,639	$	8,570,607	$	8,584,991
Due after one year to five years		58,599,281		61,398,223		59,713,323		60,844,219
Due after five years to ten years		21,091,272		22,320,449		24,656,702		25,539,400
Due after ten years		531,913		587,395		731,812		779,432
	$	97,297,884	$	101,517,706	$	93,672,444	$	95,748,042

Realized gains and losses are determined using the specific identification method. During the three and six months ended June 30, 2020 and 2019, proceeds from maturities and sales and gross realized gains and losses on securities and other investments are as follows:

The components of net realized investment gains (losses) for the three and six months ended June 30, 2020 and 2019 are as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2020		2019			2020			2019
Gain (loss) on sales of fixed maturity securities	$	3,887	$	22		$	42,930		$	(28,248	)
Gain (loss) on sales of equity securities and other investments		250,915		(145,020	)		6,434			(151,696	)
Total gain (loss) on sales of investments		254,802		(144,998	)		49,364			(179,944	)
Unrealized gain (loss) on equity securities and other investments		237,138		318,616			(1,521,845	)		1,205,213
Total net realized investment gains (losses)	$	491,940	$	173,618		$	(1,472,481	)	$	1,025,269

The components of net investment income for the three and six months ended June 30, 2020 and 2019 are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Fixed maturity securities	$	593,377	$	561,161	$	1,245,052	$	1,126,231
Cash and short-term investments		50,745		154,571		137,241		177,584
Equity securities		23,841		76,383		72,605		143,119
Other income		7,125		5,250		14,250		13,750
		675,088		797,365		1,469,148		1,460,684
Less investment expenses		26,542		31,118		54,305		66,181
Net investment income	$	648,546	$	766,247	$	1,414,843	$	1,394,503

The following tables show fair value and gross unrealized losses of our fixed maturity investments with unrealized losses that are not deemed to be other-than temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019:

	Less than 12 months				12 months or longer				Total
Description of securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2020:
U.S. government	$	3,670,584	$	945	$	444,584	$	17,156	$	4,115,168	$	18,101
States, territories, and possessions		—		—		—		—		—		—
Subdivisions of states, territories, and possessions		—		—		68,379		6,946		68,379		6,946
Industrial and miscellaneous		4,947,932		201,280		—		—		4,947,932		201,280
Total fixed maturity securities	$	8,618,516	$	202,225	$	512,963	$	24,102	$	9,131,479	$	226,327

	Less than 12 months				12 months or longer				Total
Description of securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2019:
U.S. government	$	2,628,516	$	8,227	$	4,061,077	$	30,263	$	6,689,593	$	38,490
States, territories, and possessions		—		—		—		—		—		—
Subdivisions of states, territories, and possessions		—		—		93,000		7,470		93,000		7,470
Industrial and miscellaneous		4,773,607		5,934		350,922		365		5,124,529		6,299
Total fixed maturity securities	$	7,402,123	$	14,161	$	4,504,999	$	38,098	$	11,907,122	$	52,259

Fair values of interest rate sensitive instruments may be affected by increases and decreases in prevailing interest rates, which generally translate, respectively, into decreases and increases in fair values of fixed maturity investments. The fair values of interest rate sensitive instruments also may be affected by the credit worthiness of the issuer, prepayment options, relative values of other investments, the liquidity of the instrument, and other general market conditions.

We evaluated each security and took into account the severity and duration of the impairment, the current rating on the bond, and the outlook for the issuer according to independent analysts. We found that the declines in fair value are most likely attributable to increases in interest rates, and there is no evidence that the likelihood of not receiving all of the contractual cash flows as expected has changed. Our fixed maturity portfolio is managed by our investment committee in concert with an outside investment manager for investment grade bond investments. By agreement, the investment manager cannot sell any security without the consent of our investment committee if such sale will result in a net realized loss.

We monitor our investment portfolio and review securities that have experienced a decline in fair value below cost to evaluate whether the decline is other than temporary. When assessing whether the amortized cost basis of the security will be recovered, we compare the present value of the cash flows likely to be collected, based on an evaluation of all available information relevant to the collectability of the security, to the amortized cost basis of the security. The shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as the “credit loss.” If there is a credit loss, the impairment is considered to be other-than-temporary. If we identify that an other-than-temporary impairment loss has occurred, we then determine whether we intend to sell the security, or if it is more likely than not that we will be required to sell the security prior to recovering the amortized cost basis less any current-period credit losses. If we determine that we do not intend to sell, and it is more likely than not that we won’t be required to sell the security, then the amount of the impairment loss related to the credit loss will be recorded in earnings, and the remaining portion of the other-than-temporary impairment loss will be recognized in other comprehensive income (loss), net of tax. If we determine that we intend to sell the security, or that it is more likely than not that we will be required to sell the security prior to recovering its amortized cost basis less any current-period credit losses, then the full amount of the other-than-temporary impairment will be recognized in earnings.

For the six months ended June 30, 2020 and 2019, we determined that none of our fixed maturity securities were other-than-temporarily impaired. Adverse investment market conditions, or poor operating results of underlying investments, could result in impairment charges in the future.

The table below presents the level within the fair value hierarchy generally utilized by us to estimate the fair value of assets disclosed on a recurring basis at June 30, 2020:

	Total		Level 1		Level 2		Level 3
U.S. government	$	11,547,057	$	—	$	11,547,057	$	—
States, territories, and possessions		1,148,378		—		1,148,378		—
Subdivisions of states, territories and possessions		12,778,686		—		12,778,686		—
Industrial and miscellaneous		76,043,585		—		76,043,585		—
Total fixed maturity securities		101,517,706		—		101,517,706		—
Equity securities		260,915		260,915		—		—
	$	101,778,621	$	260,915	$	101,517,706	$	—

The table below presents the level within the fair value hierarchy generally utilized by us to estimate the fair value of assets disclosed on a recurring basis at December 31, 2019:

	Total		Level 1		Level 2		Level 3
U.S. government	$	10,751,562	$	—	$	10,751,562	$	—
States, territories, and possessions		1,143,023		—		1,143,023		—
Subdivisions of states, territories and possessions		12,822,865		—		12,822,865		—
Industrial and miscellaneous		71,030,592		—		71,030,592		—
Total fixed maturity securities		95,748,042		—		95,748,042		—
Equity securities		7,756,966		7,756,966		—		—
	$	103,505,008	$	7,756,966	$	95,748,042	$	—