3. Investments (Tables)

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Schedule of Availalbe for Sale Securities

The amortized cost and fair value of investments in available-for-sale fixed-maturity securities and equity securities as of March 31, 2016 and December 31, 2015 are summarized as follows:

	March 31, 2016
					Gross Unrealized Losses
	Cost or Amortized		Gross Unrealized		Less than 12			More than 12			Fair		Net Unrealized Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)
Fixed-Maturity Securities:
Political subdivisions of States,
Territories and Possessions	$	10,211,142	$	490,669	$	(2,510	)	$	(5,060	)	$	10,694,241	$	483,099
Corporate and other bonds
Industrial and miscellaneous		45,367,395		1,247,820		(210,199	)		(59,298	)		46,345,718		978,323
Residential mortgage backed
securities		16,038,820		188,141		(36,904	)		—			16,190,057		151,237
Total fixed-maturity securities		71,617,357		1,926,630		(249,613	)		(64,358	)		73,230,016		1,612,659
Equity Securities:
Preferred stocks		3,187,826		77,621		—			(30,072	)		3,235,375		47,549
Common stocks		6,313,286		542,527		(65,438	)		—			6,790,375		477,089
Total equity securities		9,501,112		620,148		(65,438	)		(30,072	)		10,025,750		524,638
Total	$	81,118,469	$	2,546,778	$	(315,051	)	$	(94,430	)	$	83,255,766	$	2,137,297

	December 31, 2015
					Gross Unrealized Losses
	Cost or Amortized		Gross Unrealized		Less than 12			More than 12			Fair		Net Unrealized Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)
Fixed-Maturity Securities:
Political subdivisions of States,
Territories and Possessions	$	12,139,793	$	431,194	$	(15,889	)	$	—		$	12,555,098	$	415,305
Corporate and other bonds
Industrial and miscellaneous		45,078,044		490,444		(512,427	)		(99,593	)		44,956,468		(121,576	)
Residential mortgage backed
securities		5,003,292		48,375		(61,169	)		—			4,990,498		(12,794	)
Total fixed-maturity securities		62,221,129		970,013		(589,485	)		(99,593	)		62,502,064		280,935
Equity Securities:
Preferred stocks		2,874,173		70,799		—			(29,322	)		2,915,650		41,477
Common stocks		5,877,364		514,977		(103,721	)		—			6,288,620		411,256
Total equity securities		8,751,537		585,776		(103,721	)		(29,322	)		9,204,270		452,733
Total	$	70,972,666	$	1,555,789	$	(693,206	)	$	(128,915	)	$	71,706,334	$	733,668

Schedule of Availalbe for Sale Securities by contractual maturity

A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of March 31, 2016 and December 31, 2015 is shown below:

	March 31, 2016				December 31, 2015
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value
Less than one year	$	1,960,172	$	1,989,139	$	827,246	$	837,918
One to five years		21,829,957		22,476,966		17,146,349		17,393,571
Five to ten years		30,423,009		31,171,743		37,877,726		37,884,450
More than 10 years		1,365,399		1,402,111		1,366,516		1,395,627
Residential mortgage backed securities		16,038,820		16,190,057		5,003,292		4,990,498
Total	$	71,617,357	$	73,230,016	$	62,221,129	$	62,502,064

Schedule of Held to Maturity Securities

The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of March 31, 2016 and December 31, 2015 are summarized as follows:

	March 31, 2016
					Gross Unrealized Losses
	Cost or Amortized		Gross Unrealized		Less than 12			More than 12			Fair		Net Unrealized Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)
U.S. Treasury securities	$	606,398	$	147,641	$	—		$	—		$	754,039	$	147,641
Political subdivisions of States,
Territories and Possessions		1,418,827		88,948		—			(66,215	)		1,441,560		22,733
Corporate and other bonds
Industrial and miscellaneous		3,115,297		152,036		(225	)		(96,077	)		3,171,031		55,734
Total	$	5,140,522	$	388,625	$	(225	)	$	(162,292	)	$	5,366,630	$	226,108

	December 31, 2015
					Gross Unrealized Losses
	Cost or Amortized		Gross Unrealized		Less than 12			More than 12			Fair		Net Unrealized Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)
U.S. Treasury securities	$	606,389	$	147,650	$	—		$	—		$	754,039	$	147,650
Political subdivisions of States,
Territories and Possessions		1,417,679		70,284		—			(54,189	)		1,433,774		16,095
Corporate and other bonds
Industrial and miscellaneous		3,114,804		82,265		(17,980	)		(125,807	)		3,053,282		(61,522	)
Total	$	5,138,872	$	300,199	$	(17,980	)	$	(179,996	)	$	5,241,095	$	102,223

Schedule of Held to Maturity Securities by contractual maturity

A summary of the amortized cost and fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of March 31, 2016 and December 31, 2015 is shown below:

	March 31, 2016				December 31, 2015
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value
Less than one year	$	—	$	—	$	—	$	—
One to five years		500,000		506,790		500,000		496,245
Five to ten years		4,034,124		4,105,801		4,032,483		3,990,811
More than 10 years		606,398		754,039		606,389		754,039
Total	$	5,140,522	$	5,366,630	$	5,138,872	$	5,241,095

Schedule of Investment Income

Major categories of the Company’s net investment income are summarized as follows:

	Three months ended
	March 31,
	2016		2015
Income:
Fixed-maturity securities	$	664,476	$	510,955
Equity securities		175,951		122,569
Cash and cash equivalents		6,446		94
Total		846,873		633,618
Expenses:
Investment expenses		33,816		58,962
Net investment income	$	813,057	$	574,656

Schedule of Securities with realized gains and losses on investments

The Company’s net realized gains (losses) on investments are summarized as follows:

	Three months ended
	March 31,
	2016			2015
Fixed-maturity securities:
Gross realized gains	$	106,417		$	—
Gross realized losses		(105,543	)		(67,494	)
		874			(67,494	)
Equity securities:
Gross realized gains		82,688			—
Gross realized losses		(3,126	)		—
		79,562			—
Net realized gains (losses)	$	80,436		$	(67,494	)

Schedule of Securities with Unrealized Losses

The Company held securities with unrealized losses representing declines that were considered temporary at March 31, 2016 and December 31, 2015 as follows:

	March 31, 2016
	Less than 12 months							12 months or more							Total
						No. of							No. of		Aggregate
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses
Fixed-Maturity Securities:
Political subdivisions of States, Territories and Possessions	$	334,827	$	(2,510	)		1	$	339,627	$	(5,060	)		1	$	674,454	$	(7,570	)
Corporate and other bonds industrial and miscellaneous		5,269,173		(210,199	)		13		687,228		(59,298	)		2		5,956,401		(269,497	)
Residential mortgage backed securities		1,614,256		(36,904	)		10		—		—			—		1,614,256		(36,904	)
Total fixed-maturity securities	$	7,218,256	$	(249,613	)		24	$	1,026,855	$	(64,358	)		3	$	8,245,111	$	(313,971	)
Equity Securities:
Preferred stocks	$	—	$	—			—	$	701,250	$	(30,072	)		1	$	701,250	$	(30,072	)
Common stocks		1,502,700		(65,438	)		4		—		—			—		1,502,700		(65,438	)
Total equity securities	$	1,502,700	$	(65,438	)		4	$	701,250	$	(30,072	)		1	$	2,203,950	$	(95,510	)
Total	$	8,720,956	$	(315,051	)		28	$	1,728,105	$	(94,430	)		4	$	10,449,061	$	(409,481	)

	December 31, 2015
	Less than 12 months							12 months or more							Total
						No. of							No. of		Aggregate
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses
Fixed-Maturity Securities:
Political subdivisions of States, Territories and Possessions	$	1,432,005	$	(15,889	)		4	$	—	$	—			—	$	1,432,005	$	(15,889	)
Corporate and other bonds industrial and miscellaneous		18,424,609		(512,427	)		32		636,093		(99,593	)		2		19,060,702		(612,020	)
Residential mortgage backed securities		2,413,980		(61,169	)		12		—		—			—		2,413,980		(61,169	)
Total fixed-maturity securities	$	22,270,594	$	(589,485	)		48	$	636,093	$	(99,593	)		2	$	22,906,687	$	(689,078	)
Equity Securities:
Preferred stocks	$	—	$	—			—	$	702,000	$	(29,322	)		1	$	702,000	$	(29,322	)
Common stocks		2,538,900		(103,721	)		6		—		—			—		2,538,900		(103,721	)
Total equity securities	$	2,538,900	$	(103,721	)		6	$	702,000	$	(29,322	)		1	$	3,240,900	$	(133,043	)
Total	$	24,809,494	$	(693,206	)		54	$	1,338,093	$	(128,915	)		3	$	26,147,587	$	(822,121	)