Unico American (UNAM) 10-Q 12 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 11, 2016
Document And Entity Information
Entity Registrant Name	Unico American Corporation
Entity Central Index Key	100,716
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,307,133
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Available for sale:
Fixed maturities, at fair value (amortized cost: $81,361,011 at March 31, 2016, and $82,202,727 at December 31, 2015)	$ 81,412,412	$ 82,161,291
Short-term investments, at fair value	11,289,391	15,640,803
Total Investments	92,701,803	97,802,094
Cash	332,725	334,495
Accrued investment income	104,245	85,915
Receivables, net	5,763,394	5,505,361
Reinsurance Recoverable:
Paid losses and loss adjustment expenses	620,461	751,323
Unpaid losses and loss adjustment expenses	10,639,215	9,636,961
Deferred policy acquisition costs	4,321,340	4,233,396
Property and equipment (net of accumulated depreciation)	10,457,214	10,220,720
Deferred income taxes	1,320,788	1,334,087
Other assets	15,236,348	10,266,083
Total Assets	141,497,533	140,170,435
LIABILITIES
Unpaid losses and loss adjustment expenses	50,011,284	49,093,571
Unearned premiums	18,213,742	18,079,253
Advance premium and premium deposits	493,747	212,255
Income taxes payable	8,800	0
Accrued expenses and other liabilities	2,649,408	2,443,284
Total Liabilities	71,376,981	69,828,363
STOCKHOLDERS' EQUITY
Common stock, no par, authorized 10,000,000 shares; issued and outstanding shares 5,307,133 at March 31, 2016 and 5,315,945 at December 31, 2015	3,743,992	3,742,547
Accumulated other comprehensive income	33,925	(27,348)
Retained earnings	66,342,635	66,626,873
Total Stockholders' Equity	70,120,552	70,342,072
Total Liabilities and Stockholders' Equity	$ 141,497,533	$ 140,170,435

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Consolidated Balance Sheets Parenthetical
Fixed Maturity Investments at Amortized Cost	$ 81,361,011	$ 82,202,727
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,307,133	5,315,945
Common stock, shares outstanding	5,307,133	5,315,945

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
REVENUES
Net premium earned	$ 7,572,415	$ 6,965,144
Investment income	212,000	87,323
Net realized investments losses	(1,278)	0
Other income	67,594	72,214
Total Insurance Company Revenues	7,850,731	7,124,681
Gross commissions and fees	657,245	691,219
Investment income	91	85
Finance fees earned	16,609	15,773
Other income	5,002	441
Total Revenues	8,529,678	7,832,199
EXPENSES
Losses and loss adjustment expenses	5,085,494	4,893,907
Policy acquisition costs	1,699,660	1,492,830
Salaries and employee benefits	1,381,584	1,247,907
Commissions to agents/brokers	40,419	44,588
Other operating expenses	592,547	744,004
Total Expenses	8,799,704	8,423,236
Income before income taxes	(270,026)	(591,037)
Income Tax Expense	(71,039)	(194,252)
Net Income	$ (198,987)	$ (396,785)
Basic
Earnings per share	$ (0.04)	$ (0.07)
Weighted average shares	5,309,377	5,341,147
Diluted
Earnings per share	$ (0.04)	$ (0.07)
Weighted average shares	5,309,377	5,341,147

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Consolidated Statements Of Comprehensive Income Loss
Net Income	$ (198,987)	$ (396,785)
Other Changes in Comprehensive Income (Loss):
Unrealized gains (losses) on securities classified as available-for-sale arising during the period	92,837	84,033
Income tax benefit (expense) related to unrealized gains ( losses) on securities classified as available-for-sale arising during the period	(31,564)	(28,571)
Comprehensive Income (Loss)	$ (137,714)	$ (341,323)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities:
Net Income	$ (198,987)	$ (396,785)
Adjustments to reconcile net income to net cash from operations
Depreciation and amortization	115,283	117,451
Bond amortization, net	(4,284)	(4,279)
Non-cash stock based compensation	5,776	5,776
Changes in assets and liabilities:
Net receivables and accrued investment income	(276,363)	(335,417)
Reinsurance recoverable	(871,392)	184,015
Deferred policy acquisition costs	(87,944)	(175,651)
Other assets	(4,910,890)	203,669
Unpaid losses and loss adjustment expenses	917,713	(911,475)
Unearned premium	134,489	658,711
Advance premium and premium deposits	281,492	139,674
Accrued expenses and other liabilities	206,124	(20,024)
Income taxes current/deferred	(68,840)	(192,011)
Net Cash Provided (Used) by Operating Activities	(4,757,823)	(726,346)
Cash Flows from Investing Activities:
Purchase of fixed maturity investments	(200,000)	(10,145,037)
Proceeds from maturity of fixed maturity investments	1,046,000	749,000
Net decrease in short-term investments	4,351,412	10,147,992
Additions to property and equipment	(351,777)	(185,287)
Net Cash Provided (Used) by Investing Activities	4,845,635	566,668
Cash Flows from Financing Activities:
Repurchase of common stock	(89,582)	0
Net Cash Provided (Used) by Financing Activities	(89,582)	0
Net increase (decrease) in cash	(1,770)	(159,678)
Cash at beginning of period	334,495	309,162
Cash at End of Period	332,725	149,484
Cash paid during the period for:
Interest	0	0
Income taxes	$ 0	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Summary of Significant Accounting Policies	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Unico American Corporation is an insurance holding company that underwrites property and casualty insurance through its insurance company subsidiary; provides property, casualty, and health insurance through its agency subsidiaries; and provides insurance premium financing and membership association services through its other subsidiaries. Unico American Corporation is referred to herein as the "Company" or "Unico" and such references include both the corporation and its subsidiaries, all of which are wholly owned. Unico was incorporated under the laws of Nevada in 1969. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Unico American Corporation and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X for smaller reporting companies. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Quarterly financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2015 Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Certain reclassifications have been made to prior period amounts to conform to current quarter presentation. Use of Estimates in the Preparation of the Financial Statements The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect its reported amounts of assets and liabilities and its disclosure of any contingent assets and liabilities at the date of its financial statements, as well as its reported amounts of revenues and expenses during the reporting period. The most significant assumptions in the preparation of these consolidated financial statements relate to losses and loss adjustment expenses. While every effort is made to ensure the integrity of such estimates, actual results may differ. Fair Value of Financial Instruments The Company employs a fair value hierarchy that prioritizes the inputs for valuation techniques used to measure fair value. The fair value of a financial instrument is the amount 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 (the exit price). Financial assets and financial liabilities recorded on the Consolidated Balance Sheets at fair value are categorized based on the reliability of inputs for the valuation techniques. (See Note 8.) The Company has used the following methods and assumptions in estimating its fair value disclosures: Fixed maturities: 1. Investment securities, excluding long-term certificates of deposit – Fair values are obtained from a national quotation service. 2. Long-term certificates of deposit – The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair values. Cash and short-term investments – The carrying amounts reported in the Consolidated Balance Sheets approximate their fair values given the short- term nature of these instruments. Receivables, net – The carrying amounts reported in the Consolidated Balance Sheets approximate their fair values given the short-term nature of these instruments. Accrued expenses and other liabilities – The carrying amounts reported in the Consolidated Balance Sheets approximate the fair values given the short-term nature of these instruments.

Repurchase of Common Stock - Ef

Repurchase of Common Stock - Effects on Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Repurchase of Common Stock - Effects on Stockholders' Equity	NOTE 2 – REPURCHASE OF COMMON STOCK – EFFECTS ON STOCKHOLDERS’ EQUITY On December 19, 2008, the Board of Directors authorized a stock repurchase program to acquire from time to time up to an aggregate of 500,000 shares of the Company’s common stock. This program has no expiration date and may be terminated by the Board of Directors at any time. As of March 31, 2016, and December 31, 2015, the Company had remaining authority under the 2008 program to repurchase up to an aggregate of 188,655 and 197,467 shares of its common stock, respectively. The 2008 program is the only program under which there is authority to repurchase shares of the Company’s common stock. The Company repurchased 8,812 shares of stock during the three months ended March 31, 2016, in unsolicited transactions at a cost of $89,582 of which $4,331 was allocated to capital and $85,251 was allocated to retained earnings. The Company did not repurchase any stock during the three months ended March 31, 2015. The Company has or will retire all stock repurchased.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Earnings Per Share	NOTE 3 – LOSS PER SHARE The following table represents the reconciliation of the Company's basic loss per share and diluted loss per share computations reported on the Consolidated Statements of Operations for the three months ended March 31, 2016 and 2015: Three Months Ended March 31 2016 2015 Basic Loss Per Share Net loss $ (198,987 ) $ (396,785 ) Weighted average shares outstanding 5,309,377 5,341,147 Basic loss per share $ (0.04 ) $ (0.07 ) Diluted Loss per Share Net loss $ (198,987 ) $ (396,785 ) Weighted average shares outstanding 5,309,377 5,341,147 Effect of common share equivalents — — Diluted shares outstanding 5,309,377 5,341,147 Diluted loss per share $ (0.04 ) $ (0.07 ) Basic earnings per share exclude the impact of common share equivalents and are based upon the weighted average common shares outstanding. Diluted earnings per share utilize the average market price per share when applying the treasury stock method in determining common share dilution. When outstanding stock options are dilutive, they are treated as common share equivalents for purposes of computing diluted earnings per share and represent the difference between basic and diluted weighted average shares outstanding. In loss periods, stock options are excluded from the calculation of diluted loss per share, as the inclusion of stock options would have an anti-dilutive effect. As of March 31, 2016 and 2015, the Company had 0 and 7,493 common share equivalents which were excluded in the diluted loss per share calculation, respectively.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2016
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards	NOTE 4 – RECENTLY ISSUED ACCOUNTING STANDARDS During the three months ended March 31, 2016, the Financial Accounting Standards Board (“FASB”) has not issued any accounting standards that are expected to have a material impact on the Company’s consolidated financial statements. In May 2015, FASB issued Accounting Standards Update (“ASU”) 2015-09 “Disclosures About Short-Duration Contracts.” The objective of this ASU is to increase transparency about significant estimates in unpaid losses and loss adjustment expenses and provide additional information about amount, timing and uncertainty of cash flows related to unpaid losses and loss adjustment expenses. ASU 2015-09 is not expected to have any impact on the Company’s consolidated financial statements. The disclosure mandated by ASU 2015-09 will become effective for annual and quarterly reporting periods ended on and after December 31, 2016.

Accounting For Income Taxes

Accounting For Income Taxes	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Accounting For Income Taxes	NOTE 5 – ACCOUNTING FOR INCOME TAXES The Company and its wholly owned subsidiaries file consolidated federal and state income tax returns. Pursuant to the tax allocation agreement, Crusader Insurance Company (“Crusader”) and American Acceptance Corporation (“AAC”) are allocated taxes or tax credits in the case of losses, at current corporate rates based on their own taxable income or loss. The Company files income tax returns under U.S. federal and various state jurisdictions. The Company is subject to examination by U.S. federal income tax authorities for tax returns filed starting at taxable year 2012 and California state income tax authorities for tax returns filed starting at taxable year 2011. There are no ongoing examinations of income tax returns by federal or state tax authorities. As of March 31, 2016, and December 31, 2015, the Company had no unrecognized tax benefits or liabilities and, therefore, had not accrued interest and penalties related to unrecognized tax benefits or liabilities. However, if interest and penalties would need to be accrued related to unrecognized tax benefits or liabilities, such amounts would be recognized as a component of federal income tax expense. As a California insurance company, Crusader is obligated to pay a premium tax on gross premiums written in all states that Crusader is admitted. Premium taxes are deferred and amortized as the related premiums are earned. The premium tax is in lieu of state franchise taxes and is not included in the provision for state taxes.

Property and Equipment (Net of

Property and Equipment (Net of Accumulated Depreciation)	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Property and Equipmentr (Net of Accumulated Depreciation)	NOTE 6 – PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: March 31 December 31 2016 2015 Building and leasehold improvements located in Calabasas, California $ 8,275,806 $ 8,217,477 Furniture, fixtures and equipment 2,541,033 2,251,623 Accumulated depreciation and amortization (2,319,310 ) (2,204,027 ) Land located in Calabasas, California 1,787,485 1,787,485 Computer software under development 172,200 168,162 Property and equipment, net $ 10,457,214 $ 10,220,720 Depreciation on the Calabasas building, owned by Crusader, is computed using the straight line method over 39 years. Depreciation on furniture, fixtures and equipment in the Calabasas building is computed using the straight line method over 3 to 15 years. Amortization of leasehold improvements in the Calabasas building is being computed using the shorter of the useful life of the leasehold improvements or the remaining years of the lease. Depreciation and amortization expense on all property and equipment for the three months ended March 31, 2016 and 2015, was $115,283 and $117,451, respectively. For the three months ended March 31, 2016 and 2015, the Calabasas building has generated rental revenue from non-affiliated tenants in the amount of $59,406 and $49,857 which is included in “Other income” from insurance company operation in the Company’s Consolidated Statements of Operations. . For the three months ended March 31, 2016 and 2015, the Calabasas building has incurred operating expenses (including depreciation) in the amount of $171,877 and $178,079 which are included in “Other operating expenses” in the Company’s Consolidated Statements of Operations. The total square footage of the Calabasas building is 46,884, including common areas. As of March 31, 2016, 10,292 square feet of the Calabasas building was leased to non-affiliated entities and 4,189 square feet was vacant and available to be leased to non-affiliated entities. The Company capitalizes certain computer software costs purchased from outside vendors for internal use. These costs also include configuration and customization activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrade and enhancements are capitalized if it is probable that such expenditure will result in additional functionality. The capitalized costs are not depreciated until the software is placed into production.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Segment Reporting	NOTE 7 – SEGMENT REPORTING ASC Topic 280, “Segment Reporting,” establishes standards for the way information about operating segments is reported in financial statements. The Company has identified its insurance company operation as its primary reporting segment. Revenues from this segment comprised 92% and 91% of consolidated revenues for the three months ended March 31, 2016 and 2015, respectively. The Company’s remaining operations constitute a variety of specialty insurance services, each with unique characteristics and individually insignificant to consolidated revenues. Revenues, income (loss) before income taxes, and assets by segment are as follows: Three Months Ended March 31 2016 2015 Revenues Insurance company operation $ 7,850,731 $ 7,124,681 Other insurance operations 3,198,146 3,141,640 Intersegment eliminations (1) (2,519,199 ) (2,434,122 ) Total other insurance operations 678,947 707,518 Total revenues $ 8,529,678 $ 7,832,199 Income (Loss) before Income Taxes Insurance company operation $ 253,754 $ (256,581 ) Other insurance operations (523,780 ) (334,456 ) Total loss before income taxes $ (270,026 ) $ (591,037 ) As of March 31 December 31 2016 2015 Assets Insurance company operation $ 127,750,846 $ 126,406,439 Intersegment eliminations (2) (2,027,008 ) (1,409,797 ) Total insurance company operation 125,723,838 124,996,642 Other insurance operations 15,773,695 15,173,793 Total assets $ 141,497,533 $ 140,170,435 (1) Intersegment revenue eliminations reflect rents paid by Unico to Crusader for spaced leased in the Calabasas building and commissions paid by Crusader to Unifax Insurance Systems, Inc. (“Unifax”), a wholly owned subsidiary of Unico. (2) Intersegment asset eliminations reflect the elimination of Crusader receivables from Unifax and Unifax payables to Crusader.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Fair Value of Financial Instruments	NOTE 8 – FAIR VALUE OF FINANCIAL INSTRUMENTS In determining the fair value of its financial instruments, the Company employs a fair value hierarchy that prioritizes the inputs for the valuation techniques used to measure fair value. The fair value of a financial instrument is the amount 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 (the exit price). Financial assets and financial liabilities recorded on the Consolidated Balance Sheets at fair value are categorized based on the reliability of inputs for the valuation techniques as follows: Level 1 – Financial assets and financial liabilities whose values are based on unadjusted quoted prices in active markets for identical assets or liabilities as of the reporting date. Level 2 – Financial assets and financial liabilities whose values are based on quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in non-active markets; or valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability as of the reporting date. Level 3 – Financial assets and financial liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the financial assets and financial liabilities as of the reporting date. The hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Thus, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) or unobservable (Level 3). The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The following table presents information about the Company’s consolidated financial instruments and their estimated fair values, which are measured on a recurring basis, and are allocated among the three levels within the fair value hierarchy as of March 31, 2016, and December 31, 2015: Level 1 Level 2 Level 3 Total March 31, 2016 Financial instruments: Fixed maturity securities: U.S. treasury securities $ 24,131,412 $ — $ — $ 24,131,412 Certificates of deposit — 57,281,000 — 57,281,000 Total fixed maturity securities 24,131,412 57,281,000 — 81,412,412 Cash and short-term investments 11,622,116 — — 11,622,116 Total financial instruments at fair value $ 35,753,528 $ 57,281,000 $ — $ 93,034,528 December 31, 2015 Financial instruments: Fixed maturity securities: U.S. treasury securities $ 24,034,291 $ — $ — $ 24,034,291 Certificates of deposit — 58,127,000 — 58,127,000 Total fixed maturity securities 24,034,291 58,127,000 — 82,161,291 Cash and short-term investments 15,975,298 — — 15,975,298 Total financial instruments at fair value $ 40,009,589 $ 58,127,000 $ — $ 98,136,589 Fair value measurements are not adjusted for transaction costs. The Company recognizes transfers between levels at either the actual date of the event or a change in circumstances that caused the transfer. The Company did not have any transfers between Levels 1, 2 and 3 of the fair value hierarchy during the three months ended March 31, 2016 and 2015.

Investments

Investments	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Investments	NOTE 9 – INVESTMENTS A summary of total investment income and net realized losses is as follows: Three Months Ended March 31 2016 2015 Fixed maturities $ 177,837 $ 71,936 Short-term investments 34,254 15,472 Total investment income 212,091 87,408 Net realized losses (1,278 ) — Investment income and net realized losses $ 210,813 $ 87,408 The amortized cost and estimated fair values of investments in fixed maturities by category are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2016 Available-for-sale: Fixed maturities Certificates of deposit $ 57,281,000 $ — $ — $ 57,281,000 U.S. treasury securities 24,080,011 56,215 (4,814 ) 24,131,412 Total fixed maturities $ 81,361,011 $ 56,215 $ (4,814 ) $ 81,412,412 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2015 Available-for-sale: Fixed maturities Certificates of deposit $ 58,127,000 $ — $ — $ 58,127,000 U.S. treasury securities 24,075,727 3,188 (44,624 ) 24,034,291 Total fixed maturities $ 82,202,727 $ 3,188 $ (44,624 ) $ 82,161,291 A summary of the unrealized gains (losses) on investments in fixed maturities carried at fair value and the applicable deferred federal income taxes are shown below: March 31 December 31 2016 2015 Gross unrealized gains on fixed maturities $ 56,215 $ 3,188 Gross unrealized (losses) on fixed maturities (4,814 ) (44,624 ) Net unrealized gains (losses) on fixed maturities 51,401 (41,436 ) Deferred federal tax (expense) benefit (17,476 ) 14,088 Net unrealized gains (losses), net of deferred income taxes $ 33,925 $ (27,348 ) At March 31, 2016, the Company had two fixed maturity investments with a combined unrealized loss of $4,667 for a continuous period of less than 12 months and one fixed maturity investment with an unrealized loss of $147 for a continuous period of more than 12 months. At December 31, 2015, the Company had three fixed maturity investments with a combined unrealized loss of $38,509 for a continuous period of less than 12 months and two fixed maturity investments with a combined unrealized loss of $6,115 for a continuous period of more than 12 months. The Company closely monitors its investments. If an unrealized loss is determined to be other-than-temporary, it is written off as a realized loss through the Consolidated Statements of Operations. The Company’s methodology of assessing other-than-temporary impairments is based on security-specific analysis as of the balance sheet date and considers various factors including the length of time to maturity and the extent to which the fair value has been less than the cost, the financial condition and the near-term prospects of the issuer, and whether the debtor is current on its contractually obligated interest and principal payments. The unrealized losses on the U.S. treasury securities as of March 31, 2016, and December 31, 2015, were determined to be temporary. Although the Company does not intend to sell its fixed maturity investments prior to maturity, the Company may sell investment securities from time to time in response to cash flow requirements, economic and/or market conditions. During the three months ended March 31, 2016, the Company sold three certificates of deposit. These securities had amortized cost of $746,000. The Company realized an investment loss of $1,278 on the sale. The Company did not sell any fixed maturity investments during the three months ended March 31, 2015. There were no realized investment gains or losses during the three months ended March 31, 2015. The unrealized gains or losses from fixed maturities are reported as “Accumulated other comprehensive income,” which is a separate component of stockholders’ equity, net of any deferred tax effect. The Company’s investment in certificates of deposit included $56,681,000 and $57,527,000 of brokered certificates of deposit as of March 31, 2016, and December 31, 2015, respectively. Brokered certificates of deposit provide the safety and security of a certificate of deposit combined with the convenience gained by one-stop shopping for rates at various institutions. This allows the Company to spread its investments across multiple institutions so that all of its certificate of deposit investments are insured by the Federal Deposit Insurance Corporation (“FDIC”). Brokered certificates of deposit are purchased through UnionBanc Investment Services, LLC, a registered broker-dealer, investment advisor, member of FINRA/SIPC, and a subsidiary of Union Bank, N.A. Brokered certificates of deposit are a direct obligation of the issuing depository institution, are bank products of the issuing depository institution, are held in the name of Union Bank as Custodian for the benefit of the Company, and are FDIC insured within permissible limits. All the Company’s brokered certificates of deposit are within the FDIC insured permissible limits. As of March 31, 2016, and December 31, 2015, the Company’s remaining certificates of deposit totaling $600,000 are from four different banks and represent statutory deposits that are assigned to and are held by the California State Treasurer and the Insurance Commissioner of the State of Nevada. These deposits are required for writing certain lines of business in California and for admission in the state of Nevada. All the Company’s brokered and non-brokered certificates of deposit are within the FDIC insured permissible limits. Short-term investments have an initial maturity of one year or less and consist of the following: March 31 December 31 2016 2015 U.S. treasury bills $ 4,994,799 $ 9,987,804 U.S. treasury money market fund 4,720,402 3,357,841 Certificates of deposit 450,000 1,346,000 Bank money market accounts 1,122,427 947,395 Bank savings accounts 1,763 1,763 Total short-term investments $ 11,289,391 $ 15,640,803

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Contingencies	NOTE 10 – CONTINGENCIES The Company, by virtue of the nature of the business conducted by it, becomes involved in numerous legal proceedings as either plaintiff or defendant. From time to time, the Company is required to resort to legal proceedings against vendors providing services to the Company or against to enforce collection of premiums, commissions, The Company establishes reserves for lawsuits, regulatory actions, and other contingencies for which the Company is able to estimate its potential exposure and believes a loss is probable. For loss contingencies believed to be reasonably possible, the Company discloses the nature of the loss contingency, an estimate of the possible loss, a range of loss, or a statement that such an estimate cannot be made. Likewise, the Company is sometimes named as a cross-defendant in litigation, which is principally directed against an insured who was issued a policy of insurance directly or indirectly through the Company. Incidental actions related to disputes concerning the issuance or non-issuance of individual policies are sometimes brought by customers or others. These items are also handled on a routine basis by counsel, and they do not generally affect the operations of the Company. Management is confident that the ultimate outcome of pending litigation should not have an adverse effect on the Company's consolidated results of operations or financial position. The Company vigorously defends itself unless a reasonable settlement appears appropriate. In December 2015, a judgment was finalized on a Crusader policy liability claim. Crusader is appealing the judgment. As a part of the appeal, Crusader deposited $7,924,178 in cash in lieu of an appeal bond with the Los Angeles Superior Court on December 28, 2015. This cash deposit was required to appeal the judgment. In March 2016, an additional judgment for plaintiff’s attorney fees and costs on this Crusader policy liability claim was finalized. The Company is also appealing this additional judgment. That additional appeal required an additional cash deposit in lieu of an appeal bond of $5,449,615. The additional cash deposit was made on March 21, 2016. These cash deposits for the appeals represent 150% of the judgments. The cash deposits in lieu of an appeal bond of $13,373,793 and $7,924,178 were included in “Other assets” in the Consolidated Balance Sheets as of March 31, 2016, and December 31, 2015, respectively. Management believes the ultimate outcome of this litigation will be covered by Crusader’s reinsurance, subject to retention and participation. Since this litigation was related to a Crusader claim in its normal course of business, management’s best estimate for ultimate liability related to this litigation was included in Crusader’s IBNR as of March 31, 2016, and December 31, 2015. One of the Company’s agents, which was appointed in 2008 to assist the Company in implementing its Trucking Program, failed to pay the net premium and policy fees due Unifax, the exclusive general agent for Crusader. The agent was initially late in paying its February 2009 production that was due to Unifax on April 15, 2009. In May 2009, as a result of the agent’s failure to timely pay its balance due to Unifax, the Company terminated its agency agreement and assumed ownership and control of that agent’s policy expirations written with the Company. The Company subsequently commenced legal proceedings against the agent corporation, its three principals (who personally guaranteed the agent’s obligations) and another individual for the recovery of the balance due and any related recovery costs incurred. All related recovery costs have been expensed as incurred. The agent corporation and two of its principals filed bankruptcy. The corporation was adjudicated bankrupt. The Company obtained judgments, non-dischargeable in bankruptcy, for the full amount due from the two principals who filed bankruptcy. The other principal stipulated to a judgment of $1,200,000. The other individual paid the Company to settle the claim against him. The Company collected $0 during the three months ended March 31, 2016 and 2015. As of March 31, 2016, and December 31, 2015, the agent’s balance due to Unifax was $1,181,272. As of March 31, 2016, and December 31, 2015, the Company’s bad debt reserve associated with this matter was $1,181,272, which represents 100% of the balance due to Unifax. Although the receivable is fully reserved for financial reporting purposes at March 31, 2016, the Company continues to pursue collection of the judgments from the three principals.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Unico American Corporation is an insurance holding company that underwrites property and casualty insurance through its insurance company subsidiary; provides property, casualty, and health insurance through its agency subsidiaries; and provides insurance premium financing and membership association services through its other subsidiaries. Unico American Corporation is referred to herein as the "Company" or "Unico" and such references include both the corporation and its subsidiaries, all of which are wholly owned. Unico was incorporated under the laws of Nevada in 1969. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Unico American Corporation and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X for smaller reporting companies. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Quarterly financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2015 Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Certain reclassifications have been made to prior period amounts to conform to current quarter presentation. Use of Estimates in the Preparation of the Financial Statements The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect its reported amounts of assets and liabilities and its disclosure of any contingent assets and liabilities at the date of its financial statements, as well as its reported amounts of revenues and expenses during the reporting period. The most significant assumptions in the preparation of these consolidated financial statements relate to losses and loss adjustment expenses. While every effort is made to ensure the integrity of such estimates, actual results may differ. Fair Value of Financial Instruments The Company employs a fair value hierarchy that prioritizes the inputs for valuation techniques used to measure fair value. The fair value of a financial instrument is the amount 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 (the exit price). Financial assets and financial liabilities recorded on the Consolidated Balance Sheets at fair value are categorized based on the reliability of inputs for the valuation techniques. (See Note 8.) The Company has used the following methods and assumptions in estimating its fair value disclosures: Fixed maturities: 1. Investment securities, excluding long-term certificates of deposit – Fair values are obtained from a national quotation service. 2. Long-term certificates of deposit – The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair values. Cash and short-term investments – The carrying amounts reported in the Consolidated Balance Sheets approximate their fair values given the short- term nature of these instruments. Receivables, net – The carrying amounts reported in the Consolidated Balance Sheets approximate their fair values given the short-term nature of these instruments. Accrued expenses and other liabilities – The carrying amounts reported in the Consolidated Balance Sheets approximate the fair values given the short-term nature of these instruments.
Nature of Business	Nature of Business Unico American Corporation is an insurance holding company that underwrites property and casualty insurance through its insurance company subsidiary; provides property, casualty, and health insurance through its agency subsidiaries; and provides insurance premium financing and membership association services through its other subsidiaries. Unico American Corporation is referred to herein as the "Company" or "Unico" and such references include both the corporation and its subsidiaries, all of which are wholly owned. Unico was incorporated under the laws of Nevada in 1969.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Unico American Corporation and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X for smaller reporting companies. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Quarterly financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2015 Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Certain reclassifications have been made to prior period amounts to conform to current quarter presentation.
Use of Estimates in the Preparation of the Financial Statements	Use of Estimates in the Preparation of the Financial Statements The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect its reported amounts of assets and liabilities and its disclosure of any contingent assets and liabilities at the date of its financial statements, as well as its reported amounts of revenues and expenses during the reporting period. The most significant assumptions in the preparation of these consolidated financial statements relate to losses and loss adjustment expenses. While every effort is made to ensure the integrity of such estimates, actual results may differ.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company employs a fair value hierarchy that prioritizes the inputs for valuation techniques used to measure fair value. The fair value of a financial instrument is the amount 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 (the exit price). Financial assets and financial liabilities recorded on the Consolidated Balance Sheets at fair value are categorized based on the reliability of inputs for the valuation techniques. (See Note 8.) The Company has used the following methods and assumptions in estimating its fair value disclosures: Fixed maturities: 1. Investment securities, excluding long-term certificates of deposit – Fair values are obtained from a national quotation service. 2. Long-term certificates of deposit – The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair values. Cash and short-term investments – The carrying amounts reported in the Consolidated Balance Sheets approximate their fair values given the short- term nature of these instruments. Receivables, net – The carrying amounts reported in the Consolidated Balance Sheets approximate their fair values given the short-term nature of these instruments. Accrued expenses and other liabilities – The carrying amounts reported in the Consolidated Balance Sheets approximate the fair values given the short-term nature of these instruments.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share Tables
Basic and diluted earnings per share calculation data	The following table represents the reconciliation of the Company's basic loss per share and diluted loss per share computations reported on the Consolidated Statements of Operations for the three months ended March 31, 2016 and 2015: Three Months Ended March 31 2016 2015 Basic Loss Per Share Net loss $ (198,987 ) $ (396,785 ) Weighted average shares outstanding 5,309,377 5,341,147 Basic loss per share $ (0.04 ) $ (0.07 ) Diluted Loss per Share Net loss $ (198,987 ) $ (396,785 ) Weighted average shares outstanding 5,309,377 5,341,147 Effect of common share equivalents — — Diluted shares outstanding 5,309,377 5,341,147 Diluted loss per share $ (0.04 ) $ (0.07 )

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Property And Equipment Tables
Property and Equipment	Property and equipment consist of the following: March 31 December 31 2016 2015 Building and leasehold improvements located in Calabasas, California $ 8,275,806 $ 8,217,477 Furniture, fixtures and equipment 2,541,033 2,251,623 Accumulated depreciation and amortization (2,319,310 ) (2,204,027 ) Land located in Calabasas, California 1,787,485 1,787,485 Computer software under development 172,200 168,162 Property and equipment, net $ 10,457,214 $ 10,220,720

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Revenues and income before income taxes by segment	Revenues, income (loss) before income taxes by segment are as follows: Three Months Ended March 31 2016 2015 Revenues Insurance company operation $ 7,850,731 $ 7,124,681 Other insurance operations 3,198,146 3,141,640 Intersegment eliminations (1) (2,519,199 ) (2,434,122 ) Total other insurance operations 678,947 707,518 Total revenues $ 8,529,678 $ 7,832,199 Income (Loss) before Income Taxes Insurance company operation $ 253,754 $ (256,581 ) Other insurance operations (523,780 ) (334,456 ) Total loss before income taxes $ (270,026 ) $ (591,037 ) (1) Intersegment revenue eliminations reflect rents paid by Unico to Crusader for spaced leased in the Calabasas building and commissions paid by Crusader to Unifax Insurance Systems, Inc. (“Unifax”), a wholly owned subsidiary of Unico.
Assets by segemnt	Assets by segment are as follows: As of March 31 December 31 2016 2015 Assets Insurance company operation $ 127,750,846 $ 126,406,439 Intersegment eliminations (2) (2,027,008 ) (1,409,797 ) Total insurance company operation 125,723,838 124,996,642 Other insurance operations 15,773,695 15,173,793 Total assets $ 141,497,533 $ 140,170,435 (2) Intersegment asset eliminations reflect the elimination of Crusader receivables from Unifax and Unifax payables to Crusader.

Fair Value Of Financial Instr21

Fair Value Of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Of Financial Instruments Tables
Fair value of financial instruments	The following table presents information about the Company’s consolidated financial instruments and their estimated fair values, which are measured on a recurring basis, and are allocated among the three levels within the fair value hierarchy as of March 31, 2016, and December 31, 2015: Level 1 Level 2 Level 3 Total March 31, 2016 Financial instruments: Fixed maturity securities: U.S. treasury securities $ 24,131,412 $ — $ — $ 24,131,412 Certificates of deposit — 57,281,000 — 57,281,000 Total fixed maturity securities 24,131,412 57,281,000 — 81,412,412 Cash and short-term investments 11,622,116 — — 11,622,116 Total financial instruments at fair value $ 35,753,528 $ 57,281,000 $ — $ 93,034,528 December 31, 2015 Financial instruments: Fixed maturity securities: U.S. treasury securities $ 24,034,291 $ — $ — $ 24,034,291 Certificates of deposit — 58,127,000 — 58,127,000 Total fixed maturity securities 24,034,291 58,127,000 — 82,161,291 Cash and short-term investments 15,975,298 — — 15,975,298 Total financial instruments at fair value $ 40,009,589 $ 58,127,000 $ — $ 98,136,589

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2016
Investments Tables
Investment income	A summary of total investment income and net realized losses is as follows: Three Months Ended March 31 2016 2015 Fixed maturities $ 177,837 $ 71,936 Short-term investments 34,254 15,472 Total investment income 212,091 87,408 Net realized losses (1,278 ) — Investment income and net realized losses $ 210,813 $ 87,408
Available for sale investments	The amortized cost and estimated fair values of investments in fixed maturities by category are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2016 Available-for-sale: Fixed maturities Certificates of deposit $ 57,281,000 $ — $ — $ 57,281,000 U.S. treasury securities 24,080,011 56,215 (4,814 ) 24,131,412 Total fixed maturities $ 81,361,011 $ 56,215 $ (4,814 ) $ 81,412,412 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2015 Available-for-sale: Fixed maturities Certificates of deposit $ 58,127,000 $ — $ — $ 58,127,000 U.S. treasury securities 24,075,727 3,188 (44,624 ) 24,034,291 Total fixed maturities $ 82,202,727 $ 3,188 $ (44,624 ) $ 82,161,291
Unrealized gains (losses) on investments	A summary of the unrealized gains (losses) on investments in fixed maturities carried at fair value and the applicable deferred federal income taxes are shown below: March 31 December 31 2016 2015 Gross unrealized gains on fixed maturities $ 56,215 $ 3,188 Gross unrealized (losses) on fixed maturities (4,814 ) (44,624 ) Net unrealized gains (losses) on fixed maturities 51,401 (41,436 ) Deferred federal tax (expense) benefit (17,476 ) 14,088 Net unrealized gains (losses), net of deferred income taxes $ 33,925 $ (27,348 )
Investment in short term assets	Short-term investments have an initial maturity of one year or less and consist of the following: March 31 December 31 2016 2015 U.S. treasury bills $ 4,994,799 $ 9,987,804 U.S. treasury money market fund 4,720,402 3,357,841 Certificates of deposit 450,000 1,346,000 Bank money market accounts 1,122,427 947,395 Bank savings accounts 1,763 1,763 Total short-term investments $ 11,289,391 $ 15,640,803

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Notes to Financial Statements
Earnings per share - diluted	$ (0.04)	$ (0.07)
Earnings per share - basic	$ (0.04)	$ (0.07)
Net income	$ (198,987)	$ (396,785)
Effect of common share equivalents	0	0
Weighted average shares outstanding - diluted	5,309,377	5,341,147
Weighted average shares outstanding - basic	5,309,377	5,341,147

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Property And Equipment Details
Office building and leasehold improvements	$ 8,275,806	$ 8,217,477
Furniture, fixtures, equipment and other leasehold improvements	2,541,033	2,251,623
Accumulated depreciation and amortization	(2,319,310)	(2,204,027)
Land located in Calabasas California	1,787,485	1,787,485
Computer software under development	172,200	168,162
Net property and equipment	$ 10,457,214	$ 10,220,720

Segment Reporting - Revenues (D

Segment Reporting - Revenues (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Insurance company operation	$ 7,850,731	$ 7,124,681
Revenues from other insurance operations	3,198,146	3,141,640
Intersegment revenue eliminations	(2,519,199)	(2,434,122)
Revenues from other insurance operations net of intersegment eliminations	678,947	707,518
Total revenues	8,529,678	7,832,199
Income Before Income Taxes
Income before taxes from insurance company operation	253,754	(256,581)
Income before taxes from other insurance operations	(523,780)	(334,456)
Income before income taxes	$ (270,026)	$ (591,037)

Segment Reporting - Assets (Det

Segment Reporting - Assets (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Assets
Insurance company operation	$ 127,750,846	$ 126,406,439
Intersegment asset eliminations	(2,027,008)	(1,409,797)
Total insurance company operation	125,723,838	124,996,642
Other insurance operations assets	15,773,695	15,173,793
Total assets	$ 141,497,533	$ 140,170,435

Fair Value of Financial Instr27

Fair Value of Financial Instruments - Fair Value of Invested Assets (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fixed maturity investments available for sale:
U.S. treasury securities	$ 24,131,412	$ 24,034,291
Certificates of deposit	57,281,000	58,127,000
Total fixed maturities	81,412,412	82,161,291
Cash and short term investments	11,622,116	15,975,298
Total financial instruments at fair value	93,034,528	98,136,589
Level 1
Fixed maturity investments available for sale:
U.S. treasury securities	24,131,412	24,034,291
Certificates of deposit	0	0
Total fixed maturities	24,131,412	24,034,291
Cash and short term investments	11,622,116	15,975,298
Total financial instruments at fair value	35,753,528	40,009,589
Level 2
Fixed maturity investments available for sale:
U.S. treasury securities	0	0
Certificates of deposit	57,281,000	58,127,000
Total fixed maturities	57,281,000	58,127,000
Cash and short term investments	0	0
Total financial instruments at fair value	57,281,000	58,127,000
Level 3
Fixed maturity investments available for sale:
U.S. treasury securities	0	0
Certificates of deposit	0	0
Total fixed maturities	0	0
Cash and short term investments	0	0
Total financial instruments at fair value	$ 0	$ 0

Investments - Investment Income

Investments - Investment Income And Realized Losses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Notes to Financial Statements
Investment income fixed maturities	$ 177,837	$ 71,936
Investment income short-term investments	34,254	15,472
Total investment income	212,091	87,408
[us-gaap:RealizedInvestmentGainsLosses]	(1,278)	0
Investment income and net realized losses	$ 210,813	$ 87,408

Investments - Available for sal

Investments - Available for sale investments (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Certificates of deposit
Amortized cost of fixed maturity investments by asset type	$ 57,281,000	$ 58,127,000
Gross unrealized gains by asset type	0	0
Gross unrealized losses by asset type	0	0
Investments at fair value	57,281,000	58,127,000
U.S. treasury securities
Amortized cost of fixed maturity investments by asset type	24,080,011	24,075,727
Gross unrealized gains by asset type	56,215	3,188
Gross unrealized losses by asset type	(4,814)	(44,624)
Investments at fair value	24,131,412	24,034,291
Total fixed maturities
Amortized cost of fixed maturity investments by asset type	81,361,011	82,202,727
Gross unrealized gains by asset type	56,215	3,188
Gross unrealized losses by asset type	(4,814)	(44,624)
Investments at fair value	$ 81,412,412	$ 82,161,291

Investments - Unrealized Gains

Investments - Unrealized Gains (Losses) on Investments in Fixed Maturities (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Notes to Financial Statements
Gross unrealized gains on fixed maturities	$ 56,215	$ 3,188
Gross unrealized losses on fixed maturities	(4,814)	(44,624)
Net unrealized gains (losses) on fixed maturities	51,401	(41,436)
Deferred federal tax (expense) benefit	(17,476)	14,088
Net unrealized gains (losses), net of deferred income taxes	$ 33,925	$ (27,348)

Investments - Short term invesm

Investments - Short term invesmtments (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Notes to Financial Statements
Short-term U.S. treasury bills	$ 4,994,799	$ 9,987,804
U.S. treasury money market fund	4,720,402	3,357,841
Certificates of deposit	450,000	1,346,000
Bank money market accounts	1,122,427	947,395
Bank savings accounts	1,763	1,763
Total short-term investments	$ 11,289,391	$ 15,640,803

Repurchase of Common Stock - 32

Repurchase of Common Stock - Effects on Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Notes to Financial Statements
Cost of common stock repurchase	$ 89,582	$ 0
Share repurchase allocated to paid in capital	4,331
Share repurchase allocated to retained earnings	$ 85,251
Stock repurchase authority remiaining	188,655		197,467
Shares repurchased and retired during period - shares	8,812
Repurchase of common stock previously authorized			500,000

Earnings Per Share (Details Nar

Earnings Per Share (Details Narrative) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Notes to Financial Statements
Common share equivalens excluded in diluted (loss) per share calculation	0	7,493

Property and Equipment (Detai34

Property and Equipment (Details Narrative)	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)
Property And Equipment Details Narrative
Square footage of building	46,884
Building square footage leased to non-alliliates	10,292
Building square footage available for lease	4,189
Depreciation and amortization	$ 115,283	$ 117,451
Calabasas building operating expenses including depreciation	171,877	178,079
Office building revenue from leases from non-affiliates	$ 59,406	$ 49,857

Segment Reporting (Details Narr

Segment Reporting (Details Narrative)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Details Narrative
Percentage of consolidated revenues from insurance company operations segment	92.00%	91.00%

Investments (Details Narrative)

Investments (Details Narrative)	3 Months Ended
	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Notes to Financial Statements
Brokered certificates of deposit	$ 56,681,000	$ 57,527,000
Statutory deposit of certificates of deposit	$ 600,000	$ 600,000
Statutory deposits number of banks	4	4
Number of fixed maturity investments in an unrealized loss position for more than twelve months	1	2
Number of fixed maturity investments in an unrealized loss position for less than twelve months	2	3
Amortized cost of certificates of deposits sold	$ 746,000
Realized loss on certificates of deposits sold	1,278
Fixed maturity investments in an unrealized loss position for less than twelve months	4,667	$ 38,509
Fixed maturity investments in an unrealized loss position for more than twelve months	$ 147	$ 6,115

Contingencies (Details Narrativ

Contingencies (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Notes to Financial Statements
Agent balance receivable	$ 1,181,272	$ 1,181,272
Agent balance bad debt reserve	$ 1,181,272	$ 1,181,272
Agent balance bad debt reserve allowance percentage	100.00%	100.00%
Agent balance collected	$ 0	$ 0
Stipulated judgement from one principal	$ 1,200,000	1,200,000
Judgements obtained from two principles	Full amount due
Cash deposit in lieu of appeal bond on judgement	$ 13,373,793	$ 7,924,178