Note 6 - Reserve for Title Claims

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Insurance Disclosure [Text Block]

6.         Reserve for Title Claims

NCTIC’s reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy claims that have been incurred but not yet reported. Despite the variability of such estimates, management believes that the total reserve for claims is adequate to cover claim losses which might result from pending and future claims under title insurance policies issued through December 31, 2024. We continually update loss reserve estimates as new information becomes known, new loss patterns emerge or as other contributing factors are considered and incorporated into the analysis of reserve for claim losses. Due to the uncertainty inherent in the process and to the judgment used by management, the ultimate liability may be greater or less than our current reserves. If actual claims loss development varies from what is currently expected and is not offset by other factors, it is possible that additional reserve adjustments may be required in future periods in order to maintain our recorded reserve within a reasonable range of our actuary's central estimate.

A reconciliation of the activity in the reserves account for the years ended  December 31, 2024 and 2023 is as follows (in thousands):

	For the Year			For the Year
	Ended			Ended
	December 31, 2024			December 31, 2023
Beginning reserves	$	313		$	287
Provision for claims related to:
Current year		219			180
Prior years		109			(6	)
Total provision for claim losses		328			174
Claims paid related to:
Current year		-			-
Prior years		(4	)		(148	)
Total title claims paid		(4	)		(148	)
Ending reserve for title claims	$	637		$	313

A summary of the Company’s loss reserves at  December 31, 2024 and 2023 is as follows (in thousands):

	As of		As of
	December 31, 2024		December 31, 2023
Known title claims	$	114	$	8
IBNR title claims		523		305
Total title claims		637		313
Non-title claims		-		-
Total reserve for title claims	$	637	$	313