Unico American (UNAM) 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 15, 2017
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, 2017
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	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Available for sale:
Fixed maturities, at fair value (amortized cost: $68,236,670 at March 31, 2017, and $80,371,842 at December 31, 2016)	$ 68,240,425	$ 80,383,925
Short-term investments, at fair value	21,802,697	10,204,603
Total Investments	90,043,122	90,588,528
Cash and restricted cash	13,602,118	13,496,379
Accrued investment income	211,770	185,916
Receivables, net	6,260,931	6,008,083
Reinsurance Recoverable:
Paid losses and loss adjustment expenses	157,791	260,744
Unpaid losses and loss adjustment expenses	9,885,632	9,520,970
Deferred policy acquisition costs	4,420,746	4,432,299
Property and equipment (net of accumulated depreciation)	10,186,014	10,282,532
Deferred income taxes	1,173,686	1,177,346
Other assets	3,018,315	2,269,408
Total Assets	138,960,125	138,222,205
LIABILITIES
Unpaid losses and loss adjustment expenses	49,890,049	47,055,787
Unearned premiums	19,397,282	19,374,740
Advance premium and premium deposits	393,380	224,055
Accrued expenses and other liabilities	2,519,749	2,660,983
Total Liabilities	72,200,460	69,315,565
STOCKHOLDERS' EQUITY
Common stock, no par, authorized 10,000,000 shares; issued and outstanding shares 5,307,133 at March 31, 2017, and December 31, 2016	3,767,096	3,761,320
Accumulated other comprehensive income	2,478	7,975
Retained earnings	62,990,091	65,137,345
Total Stockholders' Equity	66,759,665	68,906,640
Total Liabilities and Stockholders' Equity	$ 138,960,125	$ 138,222,205

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Consolidated Balance Sheets Parenthetical
Fixed Maturity Investments at Amortized Cost	$ 68,236,670	$ 80,371,842
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,307,133	5,307,133
Common stock, shares outstanding	5,307,133	5,307,133

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
REVENUES
Net premium earned	$ 7,920,699	$ 7,572,415
Investment income	212,186	212,000
Net realized investments losses	0	(1,278)
Other income	68,212	67,594
Total Insurance Company Revenues	8,201,097	7,850,731
Gross commissions and fees	741,175	657,245
Investment income	49	91
Finance fees earned	18,161	16,609
Other income	15	5,002
Total Revenues	8,960,497	8,529,678
EXPENSES
Losses and loss adjustment expenses	8,525,181	5,085,494
Policy acquisition costs	1,497,634	1,699,660
Salaries and employee benefits	1,348,643	1,381,584
Commissions to agents/brokers	41,889	40,419
Other operating expenses	814,499	592,547
Total Expenses	12,227,846	8,799,704
Loss before income taxes	(3,267,349)	(270,026)
Income Tax Benefit	1,120,097	71,039
Net Loss	$ (2,147,252)	$ (198,987)
Basic
Loss per share	$ (0.40)	$ (0.04)
Weighted average shares	5,307,133	5,309,377
Diluted
Loss per share	$ (0.40)	$ (0.04)
Weighted average shares	5,307,133	5,309,377

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Consolidated Statements Of Comprehensive Income Loss
Net Loss	$ (2,147,252)	$ (198,987)
Other Changes in Comprehensive Income (Loss):
Unrealized gains (losses) on securities classified as available-for-sale arising during the period	(8,328)	92,837
Income tax benefit (expense) related to unrealized gains ( losses) on securities classified as available-for-sale arising during the period	2,832	(31,564)
Comprehensive Loss	$ (2,152,748)	$ (137,714)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities:
Net Loss	$ (2,147,252)	$ (198,987)
Adjustments to reconcile net income to net cash from operations
Depreciation and amortization	132,269	115,283
Bond amortization, net	(2,828)	(4,284)
Non-cash stock based compensation	5,776	5,776
Bad debt expense	13,352	39
Changes in assets and liabilities:
Net receivables and accrued investment income	(292,054)	(276,402)
Reinsurance recoverable	(261,709)	(871,392)
Deferred policy acquisition costs	11,553	(87,944)
Other assets	375,717	538,725
Unpaid losses and loss adjustment expenses	2,834,262	917,713
Unearned premium	22,542	134,489
Advance premium and premium deposits	169,325	281,492
Accrued expenses and other liabilities	(141,236)	206,124
Income taxes current/deferred	(1,118,132)	(68,840)
Net Cash Provided (Used) by Operating Activities	(398,415)	691,792
Cash Flows from Investing Activities:
Purchase of fixed maturity investments	(100,000)	(200,000)
Proceeds from maturity of fixed maturity investments	12,238,000	1,046,000
Net decrease (increase) in short-term investments	(11,598,094)	4,351,412
Additions to property and equipment	(35,752)	(351,777)
Net Cash Provided (Used) by Investing Activities	504,154	4,845,635
Cash Flows from Financing Activities:
Repurchase of common stock	0	(89,582)
Net Cash Provided (Used) by Financing Activities	0	(89,582)
Net increase (decrease) in cash and restricted cash	105,739	5,447,845
Cash and restricted cash at beginning of period	13,496,379	8,258,673
Cash and Restricted Cash at End of Period	13,602,118	13,706,518
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, 2017
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 condensed 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 condensed 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, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Quarterly financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2016 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 condensed 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 Condensed 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 Condensed Consolidated Balance Sheets for these instruments approximate their fair values. Cash and short-term investments – The carrying amounts reported in the Condensed Consolidated Balance Sheets approximate their fair values given the short- term nature of these instruments. Receivables, net – The carrying amounts reported in the Condensed 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 Condensed 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, 2017
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, 2017, and December 31, 2016, the Company had remaining authority under the 2008 program to repurchase up to an aggregate of 188,655 shares of its common stock. The 2008 program is the only program under which there is authority to repurchase shares of the Company’s common stock. The Company did not repurchase any stock during the three months ended March 31, 2017. 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 has or will retire all stock repurchased.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2017
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 Condensed Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016: Three Months Ended March 31 2017 2016 Basic Loss Per Share Net loss $ (2,147,252 ) $ (198,987 ) Weighted average shares outstanding 5,307,133 5,309,377 Basic loss per share $ (0.40 ) $ (0.04 ) Diluted Loss per Share Net loss $ (2,147,252 ) $ (198,987 ) Weighted average shares outstanding 5,307,133 5,309,377 Diluted shares outstanding 5,307,133 5,309,377 Diluted loss per share $ (0.40 ) $ (0.04 ) 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.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards	NOTE 4 – RECENTLY ISSUED ACCOUNTING STANDARDS During the three months ended March 31, 2017, the Financial Accounting Standards Board (“FASB”) has not issued any accounting standards that are expected to have a material impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13 “Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 replaces the current incurred loss methodology for recognizing credit losses with a current expected credit loss model, which requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 also requires enhanced disclosures for better understanding of significant estimates and judgments used in estimating credit losses. The Company is currently evaluating the effect ASU 2016-13 will have on the Company's consolidated financial statements, but expects the primary changes to be (i) the use of the expected credit loss model for its premium receivables and reinsurance recoverables and (ii) the presentation of credit losses within the available-for-sale fixed maturities portfolio through an allowance method rather than as a direct write-down. ASU 2016-13 will become effective for fiscal years beginning after December 31, 2019, but provides for an early adoption for fiscal years beginning after December 31, 2018. The Company has not determined when it will adopt ASU 2016-13. In February 2016, the FASB issued ASU 2016-02 “Leases.” This ASU requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by all leases, including those historically accounted for as operating leases. The Company is currently evaluating the effect ASU 2016-02 will have on the Company's consolidated financial statements. The guidance is effective for interim and annual periods beginning after December 31, 2018, and will be applied under a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the consolidated financial statements. In November 2016, the FASB issued ASU 2016-18 “Statement of Cash Flows: Restricted Cash.” The ASU requires that a statement of cash flows explain the change during the period of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statements of cash flows. The Company early adopted this ASU as of December 31, 2016, and the ASU was applied using a retrospective approach for each period presented. Upon adoption of this ASU, the Company's consolidated statements of cash flows included restricted cash in the beginning-of-period and end-of-period total amounts for cash and restricted cash. The ASU did not have a material impact on the Company’s consolidated financial statements, but the ASU required additional disclosures in “Note 10 – Cash and Restricted Cash” to these condensed consolidated financial statements. In May 2015, the FASB issued 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 also requires entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for loss and loss expense reserves, including reasons for the change and the effects on the financial statements. ASU 2015-09 also requires entities to disclose a roll forward of the liability of loss and loss expense reserves for annual and interim reporting periods. The effective date of ASU 2015-09 is for annual reporting periods beginning after December 15, 2015, and interim reporting periods beginning after December 15, 2016. The Company adopted this ASU as of December 31, 2016. The ASU did not have a material impact on the Company’s consolidated financial statements, but the ASU required additional disclosures in “Note 11 – Unpaid Losses and Loss Adjustment Expenses” to these condensed consolidated financial statements.

Accounting For Income Taxes

Accounting For Income Taxes	3 Months Ended
	Mar. 31, 2017
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 a tax allocation agreement, the Company’s subsidiaries, 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 2013 and California state income tax authorities for tax returns filed starting at taxable year 2012. There are no ongoing examinations of income tax returns by federal or state tax authorities. As of March 31, 2017, and December 31, 2016, 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 based 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, 2017
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 2017 2016 Building and leasehold improvements located in Calabasas, California $ 8,345,740 $ 8,339,807 Furniture, fixtures, and equipment 2,683,288 2,673,670 Computer software 189,377 169,177 Accumulated depreciation and amortization (2,819,876 ) (2,687,607 ) Land located in Calabasas, California 1,787,485 1,787,485 Property and equipment, net $ 10,186,014 $ 10,282,532 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, 2017 and 2016, was $132,269 and $115,283, respectively. For the three months ended March 31, 2017 and 2016, the Calabasas building has generated rental revenue from non-affiliated tenants in the amount of $57,745 and $59,406 which is included in “Other income” from insurance company operation in the Company’s Condensed Consolidated Statements of Operations. . For the three months ended March 31, 2017 and 2016, the Calabasas building incurred operating expenses (including depreciation) in the amount of $166,974 and $171,877 which are included in “Other operating expenses” in the Company’s Condensed Consolidated Statements of Operations. The total square footage of the Calabasas building is 46,884, including common areas. As of March 31, 2017, 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. The Company’s software related to the Company’s new general ledger system was placed into production in the current period, and, thus the Company began depreciating the software.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2017
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% of consolidated revenues for the three months ended March 31, 2017 and 2016. 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 2017 2016 Revenues Insurance company operation $ 8,201,097 $ 7,850,731 Other insurance operations 3,389,455 3,198,146 Intersegment eliminations (1) (2,630,055 ) (2,519,199 ) Total other insurance operations 759,400 678,947 Total revenues $ 8,960,497 $ 8,529,678 Income (Loss) before Income Taxes Insurance company operation $ (3,063,919 ) $ 253,754 Other insurance operations (203,430 ) (523,780 ) Total loss before income taxes $ (3,267,349 ) $ (270,026 ) As of March 31 December 31 2017 2015 Assets Insurance company operation $ 126,857,152 $ 124,325,620 Intersegment eliminations (2) (2,456,298 ) (1,579,820 ) Total insurance company operation 124,400,854 122,745,800 Other insurance operations 14,559,271 15,476,405 Total assets $ 138,960,125 $ 138,222,205 (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, 2017
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 Condensed 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, 2017, and December 31, 2016: Level 1 Level 2 Level 3 Total March 31, 2017 Financial instruments: Fixed maturity securities: U.S. treasury securities $ 14,098,425 $ — $ — $ 14,098,425 Certificates of deposit — 54,142,000 — 54,142,000 Total fixed maturity securities 14,098,425 54,142,000 — 68,240,425 Cash and restricted cash 13,602,118 — — 13,602,118 Short-term investments 21,802,697 — — 21,802,697 Total financial instruments at fair value $ 49,503,240 $ 54,142,000 $ — $ 103,645,240 December 31, 2016 Financial instruments: Fixed maturity securities: U.S. treasury securities $ 19,103,925 $ — $ — $ 19,103,925 Certificates of deposit — 61,280,000 — 61,280,000 Total fixed maturity securities 19,103,925 61,280,000 — 80,383,925 Cash and restricted cash 13,496,379 — — 13,496,379 Short-term investments 10,204,603 — — 10,204,603 Total financial instruments at fair value $ 42,804,907 $ 61,280,000 $ — $ 104,084,907 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, 2017 and 2016.

Investments

Investments	3 Months Ended
	Mar. 31, 2017
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 2017 2016 Fixed maturities $ 178,433 $ 177,837 Short-term investments 33,802 34,254 Total investment income 212,235 212,091 Net realized losses — (1,278 ) Investment income and net realized losses $ 212,235 $ 210,813 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, 2017 Available-for-sale: Fixed maturities Certificates of deposit $ 54,142,000 $ — $ — $ 54,142,000 U.S. treasury securities 14,094,670 5,279 (1,524 ) 14,098,425 Total fixed maturities $ 68,236,670 $ 5,279 $ (1,524 ) $ 68,240,425 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2016 Available-for-sale: Fixed maturities Certificates of deposit $ 61,280,000 $ — $ — $ 61,280,000 U.S. treasury securities 19,091,842 14,205 (2,122 ) 19,103,925 Total fixed maturities $ 80,371,842 $ 14,205 $ (2,122 ) $ 80,383,925 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 2017 2016 Gross unrealized gains on fixed maturities $ 5,279 $ 14,205 Gross unrealized losses on fixed maturities (1,524 ) (2,122 ) Net unrealized gains on fixed maturities 3,755 12,083 Deferred federal tax expense (1,277 ) (4,108 ) Net unrealized gains, net of deferred income taxes $ 2,478 $ 7,975 At March 31, 2017, the Company had one fixed maturity investment with an unrealized loss of $1,118 for a continuous period of less than 12 months and one fixed maturity investment with an unrealized loss of $406 for a continuous period of more than 12 months. At December 31, 2016, the Company had no fixed maturity investments with gross unrealized losses for a continuous period of less than 12 months and three U.S. treasury securities with gross unrealized losses 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 Condensed 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, 2017, and December 31, 2016, 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, 2017, the Company did not sell any fixed maturity investments. There were no realized investment gains or losses during the three months ended March 31, 2017. 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 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 $53,642,000 and $60,780,000 of brokered certificates of deposit as of March 31, 2017, and December 31, 2016, 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. The following securities from four different banks represent statutory deposits that are assigned to and 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 to transact insurance business in the state of Nevada. March 31 December 31 2017 2016 Certificates of deposit $ 500,000 $ 500,000 Short-term investments 100,000 100,000 Total state held deposits $ 600,000 $ 600,000 All the Company’s brokered and non-brokered certificates of deposit are within the FDIC insured permissible limits. Due to nature of the Company’s business, certain bank accounts may exceed 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 2017 2016 U.S. treasury money market fund $ 20,747,374 $ 8,542,292 Certificates of deposit 350,000 1,098,000 Bank money market accounts 703,560 562,548 Bank savings accounts 1,763 1,763 Total short-term investments $ 21,802,697 $ 10,204,603

Cash and Restricted Cash

Cash and Restricted Cash	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Cash and Restricted Cash	NOTE 10 – CASH AND RESTRICTED CASH The following table provides a reconciliation of cash and restricted cash reported within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows: March 31 December 31 2017 2016 Cash $ 228,325 $ 122,586 Restricted cash 13,373,793 13,373,793 Cash and restricted cash $ 13,602,118 $ 13,496,379 The restricted cash is represented by two cash deposits placed by Crusader with the Los Angeles Superior Court in lieu of appeal bonds. 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 with the Los Angeles Superior Court on December 28, 2015, in lieu of an appeal bond. 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 $5,449,615 cash deposit which was made on March 21, 2016, in lieu of an appeal bond.

Unpaid Losses and Loss Adjustme

Unpaid Losses and Loss Adjustment Expenses	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Unpaid Losses and Loss Adjustment Expenses	NOTE 11 – UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES The following table provides an analysis of Crusader’s loss and loss adjustment expense reserves, including a reconciliation of the beginning and ending balance sheet liability for the periods indicated: Three Months Ended 2017 2016 Reserve for unpaid losses and loss adjustment expenses at January 1 – gross of reinsurance $ 47,055,787 $ 49,093,571 Less reinsurance recoverable on unpaid losses and loss adjustment expenses 9,520,970 9,636,961 Reserve for unpaid losses and loss adjustment expenses at January 1 – net of reinsurance 37,534,817 39,456,610 Incurred losses and loss adjustment expenses: Provision for insured events of current year 6,497,566 4,723,668 Development of insured events of prior years 2,027,615 361,826 Total incurred losses and loss adjustment expenses 8,525,181 5,085,494 Loss and loss adjustment expense payments: Attributable to insured events of the current year 1,035,179 465,024 Attributable to insured events of prior years 5,020,402 4,705,011 Total payments 6,055,581 5,170,035 Reserve for unpaid losses and loss adjustment expenses at March 31 – net of reinsurance 40,004,417 39,372,069 Reinsurance recoverable on unpaid losses and loss adjustment expenses 9,885,632 10,639,215 Reserve for unpaid losses and loss adjustment expenses at March 31 – gross of reinsurance $ 49,890,049 $ 50,011,284 Some lines of insurance are commonly referred to as "long-tail" lines because of the extended time required before claims are ultimately settled. Lines of insurance in which claims are settled relatively quickly are called "short-tail" lines. It is generally more difficult to estimate loss reserves for long-tail lines because of the long period of time that elapses between the occurrence of a claim and its final disposition and the difficulty of estimating the settlement value of the claim. Crusader’s short-tail lines consist of its property coverages, and its long-tail lines consist of its liability coverages. However, Crusader’s long-tail liability claims tend to be settled relatively quicker than other long-tail lines not underwritten by Crusader, such as workers’ compensation, professional liability, umbrella liability, and medical malpractice. Since trends develop over longer periods of time on long-tail lines of business, the Company generally gives credibility to those trends more slowly than for short-tail or less volatile lines of business. The $1,773,898 increase in the provision for insured events of current year for the three months ended March 31, 2017, compared to the provision for insured events of current year for the three months ended March 31, 2016, was due primarily to an aberrational increase in the frequency and severity of accident year 2017 short-tail property claims . The $1,665,789 increase in the development of insured events of prior years for the three months ended March 31, 2017, compared to the three months ended March 31, 2016, was primarily due to higher than expected long-tail liability claims in accident years 2013, 2014, and 2016.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Contingencies	NOTE 12 – 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. Management believes the ultimate outcome of this litigation will be covered by Crusader’s reinsurance. 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 loss and loss adjustment expense reserves as of March 31, 2017 and December 31, 2016. 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 claim against the fourth individual was resolved. The Company collected $0 during the three months ended March 31, 2017 and 2016. As of March 31, 2017, and December 31, 2016, the agent’s balance due to Unifax was $1,181,272. As of March 31, 2017, and December 31, 2016, 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, 2017, the Company continues to pursue collection of the judgments from the three principals.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
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 condensed 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 condensed 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, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Quarterly financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2016 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 condensed 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 Condensed 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 Condensed Consolidated Balance Sheets for these instruments approximate their fair values. Cash and short-term investments – The carrying amounts reported in the Condensed Consolidated Balance Sheets approximate their fair values given the short- term nature of these instruments. Receivables, net – The carrying amounts reported in the Condensed 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 Condensed 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 condensed 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 condensed 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, 2017, are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Quarterly financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2016 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 condensed 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 Condensed 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 Condensed Consolidated Balance Sheets for these instruments approximate their fair values. Cash and short-term investments – The carrying amounts reported in the Condensed Consolidated Balance Sheets approximate their fair values given the short- term nature of these instruments. Receivables, net – The carrying amounts reported in the Condensed 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 Condensed 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, 2017
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 Condensed Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016: Three Months Ended March 31 2017 2016 Basic Loss Per Share Net loss $ (2,147,252 ) $ (198,987 ) Weighted average shares outstanding 5,307.133 5,309,377 Basic loss per share $ (0.40 ) $ (0.04 ) Diluted Loss per Share Net loss $ (2,147,252 ) $ (198,987 ) Weighted average shares outstanding 5,307,133 5,309,377 Diluted shares outstanding 5,307,133 5,309,377 Diluted loss per share $ (0.40 ) $ (0.04 )

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Property And Equipment Tables
Property and Equipment	Property and equipment consist of the following: March 31 December 31 2017 2016 Building and leasehold improvements located in Calabasas, California $ 8,345,740 $ 8,339,807 Furniture, fixtures, and equipment 2,683,288 2,673,670 Computer software 189,377 169,177 Accumulated depreciation and amortization (2,819,876 ) (2,687,607 ) Land located in Calabasas, California 1,787,485 1,787,485 Property and equipment, net $ 10,186,014 $ 10,282,532

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Revenues and income before income taxes by segment	Revenues and income (loss) before income taxes by segment are as follows: Three Months Ended March 31 2017 2016 Revenues Insurance company operation $ 8,201,097 $ 7,850,731 Other insurance operations 3,389,455 3,198,146 Intersegment eliminations (1) (2,630,055 ) (2,519,199 ) Total other insurance operations 759,400 678,947 Total revenues $ 8,960,497 $ 8,529,678 Income (Loss) before Income Taxes Insurance company operation $ (3,063,919 ) $ 253,754 Other insurance operations (203,430 ) (523,780 ) Total loss before income taxes $ (3,267,349 ) $ (270,026 ) (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 2017 2015 Assets Insurance company operation $ 126,857,152 $ 124,325,620 Intersegment eliminations (2) (2,456,298 ) (1,579,820 ) Total insurance company operation 124,400,854 122,745,800 Other insurance operations 14,559,271 15,476,405 Total assets $ 138,960,125 $ 138,222,205 (2) Intersegment asset eliminations reflect the elimination of Crusader receivables from Unifax and Unifax payables to Crusader.

Fair Value Of Financial Instr23

Fair Value Of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
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, 2017, and December 31, 2016: Level 1 Level 2 Level 3 Total March 31, 2017 Financial instruments: Fixed maturity securities: U.S. treasury securities $ 14,098,425 $ — $ — $ 14,098,425 Certificates of deposit — 54,142,000 — 54,142,000 Total fixed maturity securities 14,098,425 54,142,000 — 68,240,425 Cash and restricted cash 13,602,118 — — 13,602,118 Short-term investments 21,802,697 — — 21,802,697 Total financial instruments at fair value $ 49,503,240 $ 54,142,000 $ — $ 103,645,240 December 31, 2016 Financial instruments: Fixed maturity securities: U.S. treasury securities $ 19,103,925 $ — $ — $ 19,103,925 Certificates of deposit — 61,280,000 — 61,280,000 Total fixed maturity securities 19,103,925 61,280,000 — 80,383,925 Cash and restricted cash 13,496,379 — — 13,496,379 Short-term investments 10,204,603 — — 10,204,603 Total financial instruments at fair value $ 42,804,907 $ 61,280,000 $ — $ 104,084,907

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2017
Investments Tables
Investment income	A summary of total investment income and net realized losses is as follows: Three Months Ended March 31 2017 2016 Fixed maturities $ 178,433 $ 177,837 Short-term investments 33,802 34,254 Total investment income 212,235 212,091 Net realized losses — (1,278 ) Investment income and net realized losses $ 212,235 $ 210,813
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, 2017 Available-for-sale: Fixed maturities Certificates of deposit $ 54,142,000 $ — $ — $ 54,142,000 U.S. treasury securities 14,094,670 5,279 (1,524 ) 14,098,425 Total fixed maturities $ 68,236,670 $ 5,279 $ (1,524 ) $ 68,240,425 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2016 Available-for-sale: Fixed maturities Certificates of deposit $ 61,280,000 $ — $ — $ 61,280,000 U.S. treasury securities 19,091,842 14,205 (2,122 ) 19,103,925 Total fixed maturities $ 80,371,842 $ 14,205 $ (2,122 ) $ 80,383,925
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 2017 2016 Gross unrealized gains on fixed maturities $ 5,279 $ 14,205 Gross unrealized losses on fixed maturities (1,524 ) (2,122 ) Net unrealized gains on fixed maturities 3,755 12,083 Deferred federal tax expense (1,277 ) (4,108 ) Net unrealized gains, net of deferred income taxes $ 2,478 $ 7,975
Summary of state held deposits	The following securities from four different banks represent statutory deposits that are assigned to and 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 to transact insurance business in the state of Nevada. March 31 December 31 2017 2016 Certificates of deposit $ 500,000 $ 500,000 Short-term investments 100,000 100,000 Total state held deposits $ 600,000 $ 600,000
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 2017 2016 U.S. treasury money market fund $ 20,747,374 $ 8,542,292 Certificates of deposit 350,000 1,098,000 Bank money market accounts 703,560 562,548 Bank savings accounts 1,763 1,763 Total short-term investments $ 21,802,697 $ 10,204,603

Cash and Restricted Cash (Table

Cash and Restricted Cash (Tables)	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Cash and Restricted Cash	The following table provides a reconciliation of cash and restricted cash reported within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows: March 31 December 31 2017 2016 Cash $ 228,325 $ 122,586 Restricted cash 13,373,793 13,373,793 Cash and restricted cash $ 13,602,118 $ 13,496,379

Unpaid Losses and Loss Adjust26

Unpaid Losses and Loss Adjustment Expenses (Tables)	3 Months Ended
	Mar. 31, 2017
Unpaid Losses And Loss Adjustment Expenses Tables
Loss and loss adjustment expense reserves	The following table provides an analysis of Crusader’s loss and loss adjustment expense reserves, including a reconciliation of the beginning and ending balance sheet liability for the periods indicated: Three Months Ended 2017 2016 Reserve for unpaid losses and loss adjustment expenses at January 1 – gross of reinsurance $ 47,055,787 $ 49,093,571 Less reinsurance recoverable on unpaid losses and loss adjustment expenses 9,520,970 9,636,961 Reserve for unpaid losses and loss adjustment expenses at January 1 – net of reinsurance 37,534,817 39,456,610 Incurred losses and loss adjustment expenses: Provision for insured events of current year 6,497,566 4,723,668 Development of insured events of prior years 2,027,615 361,826 Total incurred losses and loss adjustment expenses 8,525,181 5,085,494 Loss and loss adjustment expense payments: Attributable to insured events of the current year 1,035,179 465,024 Attributable to insured events of prior years 5,020,402 4,705,011 Total payments 6,055,581 5,170,035 Reserve for unpaid losses and loss adjustment expenses at March 31 – net of reinsurance 40,004,417 39,372,069 Reinsurance recoverable on unpaid losses and loss adjustment expenses 9,885,632 10,639,215 Reserve for unpaid losses and loss adjustment expenses at March 31 – gross of reinsurance $ 49,890,049 $ 50,011,284

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Notes to Financial Statements
Earnings per share - diluted	$ (0.40)	$ (0.04)
Earnings per share - basic	$ (0.40)	$ (0.04)
Net income	$ (2,147,252)	$ (198,987)
Effect of common share equivalents		0
Weighted average shares outstanding - diluted	5,307,133	5,309,377
Weighted average shares outstanding - basic	5,307,133	5,309,377

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Property And Equipment Details
Office building and leasehold improvements	$ 8,345,740	$ 8,339,807
Furniture, fixtures, and equipment	2,683,288	2,673,670
Accumulated depreciation and amortization	(2,819,876)	(2,687,607)
Land located in Calabasas California	1,787,485	1,787,485
Computer software under development	189,377	169,177
Net property and equipment	$ 10,186,014	$ 10,282,532

Segment Reporting - Revenues (D

Segment Reporting - Revenues (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues
Insurance company operation	$ 8,201,097	$ 7,850,731
Revenues from other insurance operations	3,389,455	3,198,146
Intersegment revenue eliminations	(2,630,055)	(2,519,199)
Revenues from other insurance operations net of intersegment eliminations	759,400	678,947
Total revenues	8,960,497	8,529,678
Income Before Income Taxes
Income before taxes from insurance company operation	(3,063,919)	253,754
Income before taxes from other insurance operations	(203,430)	(523,780)
Total loss	$ (3,267,349)	$ 270,026

Segment Reporting - Assets (Det

Segment Reporting - Assets (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Assets
Insurance company operation	$ 126,857,152	$ 124,325,620
Intersegment asset eliminations	(2,456,298)	(1,579,820)
Total insurance company operation	124,400,854	122,745,800
Other insurance operations assets	14,559,271	15,476,405
Total assets	$ 138,960,125	$ 138,222,205

Fair Value of Financial Instr31

Fair Value of Financial Instruments - Fair Value of Invested Assets (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Fixed maturity investments available for sale:
U.S. treasury securities	$ 14,098,425	$ 19,103,925
Certificates of deposit	54,142,000	61,280,000
Total fixed maturities	68,240,425	80,383,925
Cash and restricted cash	13,602,118	13,496,379	$ 13,706,518	$ 8,258,673
Short-term investments, at fair value	21,802,697	10,204,603
Total financial instruments at fair value	103,645,240	104,084,907
Level 1
Fixed maturity investments available for sale:
U.S. treasury securities	14,098,425	19,103,925
Certificates of deposit	0	0
Total fixed maturities	14,098,425	19,103,925
Cash and restricted cash	13,602,118	13,496,379
Short-term investments, at fair value	21,802,697	10,204,603
Total financial instruments at fair value	49,503,240	42,804,907
Level 2
Fixed maturity investments available for sale:
U.S. treasury securities	0	0
Certificates of deposit	54,142,000	61,280,000
Total fixed maturities	54,142,000	61,280,000
Cash and restricted cash	0	0
Short-term investments, at fair value	0	0
Total financial instruments at fair value	54,142,000	61,280,000
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 restricted cash	0	0
Short-term investments, at fair value	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, 2017	Mar. 31, 2016
Notes to Financial Statements
Investment income fixed maturities	$ 178,433	$ 177,837
Investment income short-term investments	33,802	34,254
Total investment income	212,235	212,091
[us-gaap:RealizedInvestmentGainsLosses]	0	(1,278)
Investment income and net realized losses	$ 212,235	$ 210,813

Investments - Available for sal

Investments - Available for sale investments (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Certificates of deposit
Amortized cost of fixed maturity investments by asset type	$ 54,142,000	$ 61,280,000
Gross unrealized gains by asset type	0	0
Gross unrealized losses by asset type	0	0
Investments at fair value	54,142,000	61,280,000
U.S. treasury securities
Amortized cost of fixed maturity investments by asset type	14,094,670	19,091,842
Gross unrealized gains by asset type	5,279	14,205
Gross unrealized losses by asset type	(1,524)	(2,122)
Investments at fair value	14,098,425	19,103,925
Total fixed maturities
Amortized cost of fixed maturity investments by asset type	68,236,670	80,371,842
Gross unrealized gains by asset type	5,279	14,205
Gross unrealized losses by asset type	(1,524)	(2,122)
Investments at fair value	$ 68,240,425	$ 80,383,925

Investments - Unrealized Gains

Investments - Unrealized Gains (Losses) on Investments in Fixed Maturities (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Notes to Financial Statements
Gross unrealized gains on fixed maturities	$ 5,279	$ 14,205
Gross unrealized losses on fixed maturities	(1,524)	(2,122)
Net unrealized gains (losses) on fixed maturities	3,755	12,083
Deferred federal tax (expense) benefit	(1,277)	(4,108)
Net unrealized gains (losses), net of deferred income taxes	$ 2,478	$ 7,975

Investments - State Held Deposi

Investments - State Held Deposits (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Notes to Financial Statements
Short-term investments held by state	$ 500,000	$ 500,000
Certificates of deposit held by states	100,000	100,000
State held deposits	$ 600,000	$ 600,000

Investments - Short term invesm

Investments - Short term invesmtments (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Notes to Financial Statements
U.S. treasury money market fund	$ 20,747,374	$ 8,542,292
Certificates of deposit	350,000	1,098,000
Bank money market accounts	703,560	562,548
Bank savings accounts	1,763	1,763
Total short-term investments	$ 21,802,697	$ 10,204,603

Unpaid Losses And Loss Adjust37

Unpaid Losses And Loss Adjustment Expenses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Insurance Loss Reserves [Abstract]
Gross reserves	$ 49,890,049	$ 50,011,284	$ 47,055,787	$ 49,093,571
Reinsurance recoverable on unpaid losses and loss adjustment expenses	9,885,632	10,639,215	9,520,970	9,636,961
Net reserves	40,004,417	39,372,069	$ 37,534,817	$ 39,456,610
Incurred losses and loss adjustment expenses
Current accident year	6,497,566	4,723,668
Prior accident years	2,027,615	361,826
Incurred losses and loss adjustment expenses	8,525,181	5,085,494
Paid losses and loss adjustment expenses
Current accident year	1,035,179	465,024
Prior accident years	5,020,402	4,705,011
Total payment losses and loss adjustment expenses	$ 6,055,581	$ 5,170,035

Repurchase of Common Stock - 38

Repurchase of Common Stock - Effects on Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Notes to Financial Statements
Cost of common stock repurchase	$ 0	$ 89,582
Share repurchase allocated to paid in capital	0	4,331
Share repurchase allocated to retained earnings	$ 0	$ 85,251
Stock repurchase authority remiaining	188,655		188,655
Shares repurchased and retired during period - shares	0	8,812
Repurchase of common stock previously authorized			500,000

Property and Equipment (Detai39

Property and Equipment (Details Narrative)	3 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)
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	$ 132,269	$ 115,283
Calabasas building operating expenses including depreciation	166,974	171,877
Office building revenue from leases from non-affiliates	$ 57,745	$ 59,406

Segment Reporting (Details Narr

Segment Reporting (Details Narrative)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Details Narrative
Percentage of consolidated revenues from insurance company operations segment	92.00%	92.00%

Investments (Details Narrative)

Investments (Details Narrative)	3 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Notes to Financial Statements
Brokered certificates of deposit	$ 53,642,000		$ 60,780,000
Statutory deposits number of banks	4		4
Number of fixed maturity investments in an unrealized loss position for more than twelve months	1		3
Number of fixed maturity investments in an unrealized loss position for less than twelve months	1		0
Amortized cost of certificates of deposits sold	$ 0	$ 746,000
Realized loss on certificates of deposits sold	0	$ 1,278
Fixed maturity investments in an unrealized loss position for less than twelve months	1,118		$ 0
Fixed maturity investments in an unrealized loss position for more than twelve months	$ 406		$ 2,122

Cash and Restricted Cash (Detai

Cash and Restricted Cash (Details Narrative) - USD ($)	Mar. 21, 2016	Dec. 28, 2015
Notes to Financial Statements
Restricted Cash Deposited with Court	$ 5,449,615	$ 7,924,178

Contingencies (Details Narrativ

Contingencies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Mar. 21, 2016	Dec. 28, 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	Full amount due
Restricted Cash Deposited with Court				$ 5,449,615	$ 7,924,178