Investments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Schedule of available for sale investments

	Cost or		Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
March 31, 2020:
Fixed maturities:
U.S. government obligations	$	2,086,391	$	129,809	$	—	$	2,216,200
Mortgage-backed securities		764,277		957		12,254		752,980
Asset-backed securities		128,469,099		66,021		25,756,095		102,779,025
States and political subdivisions -- general obligations		239,454		11,779		—		251,233
States and political subdivisions -- special revenue		2,884,223		95,600		8,112		2,971,711
Corporate		17,896,003		227,680		1,261,969		16,861,714
Total fixed maturities	$	152,339,447	$	531,846	$	27,038,430	$	125,832,863
Mortgage loans on real estate, held for investment		48,982,622		—		—		48,982,622
Derivatives		1,142,492		68,904		748,066		463,330
Investment Escrow		—		—		—		—
Other invested assets		2,796,352		—		—		2,796,352
Preferred stock		500,000		—		—		500,000
Total Investments	$	205,760,913	$	600,750	$	27,786,496	$	178,575,167
December 31, 2019:
U.S. government obligations		2,091,710		7,073		17,559		2,081,224
Mortgage-backed securities		819,678		—		21,070		798,608
Asset-backed securities		95,006,241		646,335		404,752		95,247,824
States and political subdivisions -- general obligations		240,494		8,788		—		249,282
States and political subdivisions -- special revenue		25,112		179		—		25,291
Corporate		18,493,077		501,022		154,467		18,839,632
Total fixed maturities		116,676,312		1,163,397		597,848		117,241,861
Mortgage loans on real estate, held for investment		13,810,041		—		—		13,810,041
Derivatives		490,831		87,684		3,221		575,294
Investment Escrow		3,899,986		—		—		3,899,986
Other invested assets		2,468,947		—		—		2,468,947
Preferred stock		500,000		—		—		500,000
Total fixed maturities	$	137,846,117	$	1,251,081	$	601,069	$	138,496,129

Schedule of Amortized cost, Fair value, Credit rating

The Company has two securities that individually exceed 10% of the total of the state and political subdivisions categories as of March 31, 2020. The amortized cost, fair value, credit ratings, and description of each security is as follows:

	Amortized		Estimated
	Cost		Fair Value		Credit Rating
March 31, 2020:
Fixed maturities:
States and political subdivisions -- general obligations
Bellingham, Washington	$	107,420	$	118,061	AA+
Longview, Washington Refunding		132,034		133,172	Aa3
Total	$	239,454	$	251,233

Schedule of unrealized loss of securities

The following table summarizes, for all securities in an unrealized loss position at March 31, 2020 and December 31, 2019, the estimated fair value, pre-tax gross unrealized loss and number of securities by consecutive months they have been in an unrealized loss position.

	March 31, 2020						December 31, 2019
			Gross		Number				Gross		Number
	Estimated		Unrealized		of		Estimated		Unrealized		of
	Fair Value		Loss		Securities(1)		Fair Value		Loss		Securities(1)
Fixed Maturities:
Less than 12 months:
U.S. government obligations	$	—	$	—		—	$	1,518,772	$	14,935		9
Asset-backed securities		95,658,862		25,665,232		67		39,114,732		404,752		26
Mortgage-back securities		165,282		589		4		160,010		4,844		4
States and political subdivisions -- general obligations		1,764,400		8,112		1		—		—		—
Corporate		8,965,800		854,457		27		2,800,815		13,618		4
Greater than 12 months:
U.S. government obligations		—		—		—		353,834		2,624		2
Asset-backed securities		909,767		90,863		1		—		—		—
Mortgage-back securities		464,615		11,665		8		638,598		16,226		14
Corporate		491,033		407,512		4		2,201,658		140,849		13
Total fixed maturities	$	108,419,759	$	27,038,430		112	$	46,788,419	$	597,848		72

(1) We may reflect a security in more than one aging category based on various purchase dates.

Schedule of amortized cost and estimated fair value of fixed maturities

The amortized cost and estimated fair value of fixed maturities at March 31, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. No securities due in the next year are in an unrealized loss position, further supporting management’s decision not to recognize an other-than-temporary impairment.

	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	202,956	$	204,177
Due after one year through five years		3,284,845		3,281,374
Due after five years through ten years		27,511,001		23,467,777
Due after ten years through twenty years		109,927,220		88,586,999
Due after twenty years		11,413,425		10,292,536
	$	152,339,447	$	125,832,863

Schedule of investments measured at fair value on a recurring basis using level three inputs

	Beginning								Ending
	Balance						Realized		Balance
	As of						Gain/		As of
	December 31, 2019		Additions		Sales		(Loss)		March 31, 2020
Assets
Policy loans	$	106,014	$	22,720	$	—	$	—	$	128,734
Mortgage loans on real estate,
held for investment		13,810,041		37,242,531		2,100,192		30,242		48,982,622
Other invested assets		2,468,947		2,458,792		2,131,387		—		2,796,352
Preferred stock		500,000		—		—		—		500,000
Total Investments	$	16,885,002	$	39,724,043	$	4,231,579	$	30,242	$	52,407,708

Schedule of components of net investment income

The components of net investment income for the three months ended March 31, 2020 and 2019 are as follows:

	Three months ended March 31,
	2020		2019
Fixed maturities	$	1,167,614	$	195,691
Mortgage loans		2,524		—
Other		—		1,244
Gross investment income		1,170,138		196,935
Less: refund received on investment expenses (investment expense)		70,840		(5,940)
Investment income, net of expenses	$	1,240,978	$	190,995

Mortgage-back securities

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]

Schedule of investments measured at fair value on a recurring basis using level three inputs

		Carrying Value		Interest Income Accrued		Interest Income Earned
March 31, 2020:
Industrial	$	500,000	$	2,708	$	8,215
Commercial mortgage loan - multi-family		46,423,549		348,699		652,708
Other		2,059,073		18,251		49,633
Total mortgage loans	$	48,982,622	$	369,658	$	710,556
December 31, 2019:
Industrial	$	500,000	$	—	$	15,889
Commercial mortgage loan - multi-family		11,320,924		116,860		329,684
Other		1,989,117		195,168		7,386
Total mortgage loans	$	13,810,041	$	312,028	$	352,959