Unico American (UNAM) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 13, 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	Sep. 30, 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	Q3
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Available for sale:
Fixed maturities, at fair value (amortized cost: $84,279,349 at September 30, 2017, and $80,371,842 at December 31, 2016)	$ 84,268,895	$ 80,383,925
Short-term investments, at fair value	13,080,515	10,204,603
Total Investments	97,349,410	90,588,528
Cash and restricted cash	230,376	13,496,379
Accrued investment income	435,706	185,916
Receivables, net	6,046,875	6,008,083
Reinsurance Recoverable:
Paid losses and loss adjustment expenses	1,692,142	260,744
Unpaid losses and loss adjustment expenses	11,890,854	9,520,970
Deferred policy acquisition costs	4,230,832	4,432,299
Property and equipment (net of accumulated depreciation)	10,117,563	10,282,532
Deferred income taxes	1,231,499	1,177,346
Other assets	4,853,239	2,269,408
Total Assets	138,078,496	138,222,205
LIABILITIES
Unpaid losses and loss adjustment expenses	53,066,515	47,055,787
Unearned premiums	19,472,136	19,374,740
Advance premium and premium deposits	429,560	224,055
Accrued expenses and other liabilities	2,155,975	2,660,983
Total Liabilities	75,124,186	69,315,565
STOCKHOLDERS' EQUITY
Common stock, no par, authorized 10,000,000 shares; 5,307,133 shares issued and outstanding at September 30, 2017, and December 31, 2016	3,772,872	3,761,320
Accumulated other comprehensive income (loss)	(6,900)	7,975
Retained earnings	59,188,338	65,137,345
Total Stockholders' Equity	62,954,310	68,906,640
Total Liabilities and Stockholders' Equity	$ 138,078,496	$ 138,222,205

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Consolidated Balance Sheets Parenthetical
Fixed Maturity Investments at Amortized Cost	$ 84,279,349	$ 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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
REVENUES
Net premium earned	$ 8,168,252	$ 7,980,930	$ 24,309,101	$ 23,271,296
Investment income	309,405	234,495	785,579	658,839
Net realized investments gains (losses)	373	0	528	(1,278)
Other income	108,169	66,147	243,642	201,425
Total Insurance Company Operation	8,586,199	8,281,572	25,338,850	24,130,282
Gross commissions and fees	685,288	697,245	2,097,916	2,063,429
Investment income	87	75	206	272
Finance fees earned	21,814	18,450	58,155	50,667
Other income	1	1,000	65	6,002
Total Revenues	9,293,389	8,998,342	27,495,192	26,250,652
EXPENSES
Losses and loss adjustment expenses	9,917,896	8,038,100	24,351,751	17,982,351
Policy acquisition costs	1,854,212	1,741,499	4,943,350	5,142,250
Salaries and employee benefits	1,221,182	1,318,622	4,534,550	3,980,055
Commissions to agents/brokers	39,737	40,324	126,620	121,379
Other operating expenses	695,587	826,519	2,592,318	2,052,771
Total Expenses	13,728,614	11,965,064	36,548,589	29,278,806
Loss Before Income Taxes	(4,435,225)	(2,966,722)	(9,053,397)	(3,028,154)
Income Tax Benefit	1,507,976	1,013,225	3,104,390	1,026,700
Net Loss	$ (2,927,249)	$ (1,953,497)	$ (5,949,007)	$ (2,001,454)
Basic
Loss per share	$ (0.55)	$ (.37)	$ (1.12)	$ (.38)
Weighted average shares	5,307,133	5,307,133	5,307,133	5,307,133
Diluted
Loss per share	$ (0.55)	$ (.37)	$ (1.12)	$ (.38)
Weighted average shares	5,307,133	5,307,133	5,307,133	5,307,133

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Consolidated Statements Of Comprehensive Income Loss
Net Loss	$ (2,927,249)	$ (1,953,497)	$ (5,949,007)	$ (2,001,454)
Other Changes in Comprehensive Loss:
Unrealized gains (losses) on securities classified as available-for-sale arising during the period	(6,581)	(21,186)	(22,537)	82,614
Income tax benefit (expense) related to unrealized gains ( losses) on securities classified as available-for-sale arising during the period	2,238	7,203	7,662	(28,089)
Comprehensive Loss	$ (2,931,592)	$ (1,967,480)	$ (5,963,882)	$ (1,946,929)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities:
Net Loss	$ (5,949,007)	$ (2,001,454)
Adjustments to reconcile net loss to net cash from operations
Depreciation and amortization	386,250	361,490
Bond amortization, net	(533,123)	(12,897)
Non-cash stock based compensation	11,552	17,328
Bad debt expense	15,534	385
Realized investment (gains) losses	(528)	1,278
Changes in assets and liabilities:
Net receivables and accrued investment income	(304,116)	(726,376)
Reinsurance recoverable	(3,801,282)	237,404
Deferred policy acquisition costs	201,467	(313,431)
Other assets	478,373	698,737
Unpaid losses and loss adjustment expenses	6,010,728	727,884
Unearned premium	97,396	1,322,906
Advance premium and premium deposits	205,505	277,193
Accrued expenses and other liabilities	(505,008)	330,730
Income taxes current/deferred	(3,108,695)	(1,037,537)
Net Cash Used by Operating Activities	(6,794,954)	(116,360)
Cash Flows from Investing Activities:
Purchase of fixed maturity investments	(44,321,953)	(12,032,000)
Proceeds from maturity of fixed maturity investments	39,354,000	10,894,000
Proceeds from sale of fixed maturity investments	1,594,097	744,722
Net (increase) decrease in short-term investments	(2,875,912)	7,466,195
Additions to property and equipment	(221,281)	(536,584)
Net Cash (Used by) Provided by Investing Activities	(6,471,049)	6,536,333
Cash Flows from Financing Activities:
Repurchase of common stock	0	(89,582)
Net Cash Used by Financing Activities	0	(89,582)
Net (decrease) increase in cash and restricted cash	(13,266,003)	6,330,391
Cash and restricted cash at beginning of period	13,496,379	8,258,673
Cash and Restricted Cash at End of Period	230,376	14,589,064
Cash paid during the period for:
Interest	0	0
Income taxes	$ 8,800	$ 8,774

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 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 condensed consolidated 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 and nine months ended September 30, 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 Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission. Certain reclassifications have been made to prior period amounts to conform to the current quarter’s 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 restricted 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	9 Months Ended
	Sep. 30, 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 September 30, 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 or nine months ended September 30, 2017. The Company repurchased 8,812 shares of stock during the nine months ended September 30, 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 September 30, 2016. The Company has retired and intends to retire all repurchased stock, as applicable.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30 September 30 2017 2016 2017 2016 Basic Loss Per Share Net loss $ (2,927,249 ) $ (1,953,497 ) $ (5,949,007 ) $ (2,001,454 ) Weighted average shares outstanding 5,307,133 5,307,133 5,307,133 5,307,881 Basic loss per share $ (0.55 ) $ (0.37 ) $ (1.12 ) $ (0.38 ) Diluted Loss Per Share Net loss $ (2,927,249 ) $ (1,953,497 ) $ (5,949,007 ) $ (2,001,454 ) Weighted average shares outstanding 5,307,133 5,307,133 5,307,133 5,307,881 Effect of dilutive securities — — — — Diluted shares outstanding 5,307,133 5,307,133 5,307,133 5,307,881 Diluted loss per share $ (0.55 ) $ (0.37 ) $ (1.12 ) $ (0.38 ) 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 September 30, 2017 and 2016, the Company had 0 and 222 common share equivalents that were excluded in the three months diluted loss per share calculation, respectively, and 0 and 530 common share equivalents that were excluded in the nine months diluted loss per share calculation, respectively.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2017
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards	NOTE 4 – RECENTLY ISSUED ACCOUNTING STANDARDS In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09, "Compensation - Stock Compensation (Topic 718), Scope of Modification Accounting." ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 will be effective for the Company beginning January 1, 2018, with early adoption permitted. The Company does not anticipate that ASU 2017-09 will have a material impact on its consolidated financial statements and related disclosures. In June 2016, the FASB issued 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.” This ASU requires that a statement of cash flows explains 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 this 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. This ASU did not have a material impact on the Company’s consolidated financial statements, but this 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 the 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 was 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. This ASU did not have a material impact on the Company’s consolidated financial statements, but this 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	9 Months Ended
	Sep. 30, 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 September 30, 2017, and December 31, 2016, the Company had no unrecognized tax benefits or liabilities. In addition, the Company 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 in which 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)	9 Months Ended
	Sep. 30, 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: September 30 December 31 2017 2016 Building and leasehold improvements located in Calabasas, California $ 8,352,180 $ 8,339,807 Furniture, fixtures and equipment 2,707,211 2,673,670 Computer software 344,544 169,177 Accumulated depreciation and amortization (3,073,857 ) (2,687,607 ) Land located in Calabasas, California 1,787,485 1,787,485 Property and equipment, net $ 10,117,563 $ 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 and nine months ended September 30, 2017, was $121,540 and $386,250, respectively, and for the three and nine months ended September 30, 2016, was $121,577 and $361,490, respectively. For the three and nine months ended September 30, 2017, the Calabasas building has generated rental revenue from non-affiliated tenants in the amount of $83,257 and $198,902, respectively, and for the three and nine months ended September 30, 2016, rental revenue from non-affiliated tenants in the amount of $55,099 and $171,133, respectively. This rental revenue is included in “Other income” from insurance company operation in the Company’s Condensed Consolidated Statements of Operations. The Calabasas building has incurred operating expenses (including depreciation) in the amount of $201,701 and $549,295 for the three and nine months ended September 30, 2017, respectively, and $207,401 and $543,638 for the three and nine months ended September 30, 2016, respectively. These operating expenses 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 September 30, 2017, 14,481 square feet of the Calabasas building was leased to non-affiliated entities. As of September 30, 2017, the Calabasas building was fully occupied. 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. On January 1, 2017, the Company placed its new general ledger system into production. Accordingly, the capitalized costs associated with this system were moved from “Computer software under development” to “Computer software,” and the Company began depreciating these costs.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Segment Reporting	NOTE 7 – SEGMENT REPORTING Accounting Standards Codification (“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 total revenues for each of the three and nine months ended September 30, 2017, and the three and nine months ended September 30, 2016. The Company’s remaining operations constitute a variety of specialty insurance services, each with unique characteristics and individually insignificant to total revenues. Revenues, loss before income taxes, and assets by segment are as follows: Three Months Ended Nine Months Ended September 30 September 30 2017 2016 2017 2016 Revenues Insurance company operation $ 8,586,199 $ 8,281,572 $ 25,338,850 $ 24,130,282 Other insurance operations 3,346,184 3,367,469 10,311,036 10,108,721 Intersegment eliminations (1) (2,638,994 ) (2,650,699 ) (8,154,694 ) (7,988,351 ) Total other insurance operations 707,190 716,770 2,156,342 2,120,370 Total revenues $ 9,293,389 $ 8,998,342 $ 27,495,192 $ 26,250,652 Loss Before Income Taxes Insurance company operation $ (3,917,854 ) $ (2,414,571 ) $ (7,328,672 ) $ (1,856,083 ) Other insurance operations (517,371 ) (552,151 ) (1,724,725 ) (1,172,071 ) Total loss before income taxes $ (4,435,225 ) $ (2,966,722 ) $ (9,053,397 ) $ (3,028,154 ) September 30 December 31 2017 2016 Assets Insurance company operation $ 127,140,004 $ 124,325,620 Intersegment eliminations (2) (4,514,427 ) (1,579,820 ) Total insurance company operation 122,625,577 122,745,800 Other insurance operations 15,452,919 15,476,405 Total assets $ 138,078,496 $ 138,222,205 (1) Intersegment revenue eliminations reflect rents paid by Unico to Crusader for space 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	9 Months Ended
	Sep. 30, 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 fair value hierarchy level 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 September 30, 2017, and December 31, 2016: Level 1 Level 2 Level 3 Total September 30, 2017 Financial instruments: Fixed maturity securities: U.S. treasury securities $ 9,519,063 $ — $ — $ 9,519,063 Corporate securities — 22,995,709 — 22,995,709 Agency mortgage-backed securities — 15,928,123 — 15,928,123 Certificates of deposit — 35,826,000 — 35,826,000 Total fixed maturity securities 9,519,063 74,749,832 — 84,268,895 Short-term investments 12,080,638 999,877 — 13,080,515 Total financial instruments at fair value $ 21,599,701 $ 75,749,709 $ — $ 97,349,410 Level 1 Level 2 Level 3 Total 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 Short-term investments 10,204,603 — — 10,204,603 Total financial instruments at fair value $ 29,308,528 $ 61,280,000 $ — $ 90,588,528 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 and nine months ended September 30, 2017 and 2016.

Investments

Investments	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Investments	NOTE 9 – INVESTMENTS A summary of investment income, net of investment expenses, and net realized gains and losses is as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Fixed maturities $ 323,023 $ 196,327 $ 746,787 $ 554,992 Short-term investments (13,335 ) 38,243 64,444 104,119 Gross investment income 309,688 234,570 811,231 659,111 Less investment expenses (196 ) — (25,446 ) — Net investment income 309,492 234,570 785,785 659,111 Net realized gains (losses) 373 — 528 (1,278 ) Net investment income, realized gains and losses $ 309,865 $ 234,570 $ 786,313 $ 657,833 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 September 30, 2017 Available for sale: Fixed maturities Certificates of deposit $ 35,826,000 $ — $ — $ 35,826,000 U.S. treasury securities 9,528,210 248 (9,395 ) 9,519,063 Corporate securities 22,983,627 49,063 (36,981 ) 22,995,709 Agency mortgage-backed securities 15,941,512 3,754 (17,143 ) 15,928,123 Total fixed maturities $ 84,279,349 $ 53,065 $ (63,519 ) $ 84,268,895 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 carried at fair value and the applicable deferred federal income taxes is shown below: September 30 December 31 2017 2016 Gross unrealized gains of fixed maturities $ 53,065 $ 14,205 Gross unrealized (losses) of fixed maturities (63,519 ) (2,122 ) Net unrealized gains (losses) on investments (10,454 ) 12,083 Deferred federal tax (expense) benefit 3,554 (4,108 ) Net unrealized gains (losses), net of deferred income taxes $ (6,900 ) $ 7,975 A summary of estimated fair value and gross unrealized losses in a gross unrealized loss position by the length of time in which the securities have continually been in that position is shown below: Less than 12 Months 12 Months or Longer Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses September 30, 2017: U.S. treasury securities $ 9,519,063 $ (9,395 ) $ — $ — Corporate securities 9,731,038 (36,981 ) — — Agency mortgage-backed securities 12,973,738 (17,143 ) — — Total $ 32,223,839 $ (63,519 ) $ — $ — Less than 12 Months 12 Months or Longer Estimated Gross Unrealized Losses Estimated Gross Unrealized Losses December 31, 2016: U.S. treasury securities $ — $ — $ 9,097,285 $ (2,122 ) Total $ — $ — $ 9,097,285 $ (2,122 ) 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 as of September 30, 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 September 30, 2017, the Company sold two fixed maturity investments and realized a net investment gain of $373 on the sales. During the nine months ended September 30, 2017, the Company sold four fixed maturity investments and realized a net investment gain of $528 on the sales. The Company sold three certificates of deposit during the nine months ended September 30, 2016, and realized an investment loss of $1,278 on the sales; the Company did not sell any securities during the three months ended September 30, 2016. 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 $35,426,000 and $60,780,000 of brokered certificates of deposit as of September 30, 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: September 30 December 31 2017 2016 Certificates of deposit $ 400,000 $ 500,000 Short-term investments 200,000 100,000 Total state held deposits $ 600,000 $ 600,000 All of the Company’s brokered and non-brokered certificates of deposit are within the FDIC insured permissible limits. Due to the 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: September 30 December 31 2017 2016 U.S. treasury money market fund $ 6,673,261 $ 8,542,292 U.S. treasury bills 1,174,217 — Short-term bonds 999,877 — Certificates of deposit 200,000 1,098,000 Commercial paper 998,570 — Bank money market accounts 3,032,827 562,548 Bank savings accounts 1,763 1,763 Total short-term investments $ 13,080,515 $ 10,204,603

Cash and Restricted Cash

Cash and Restricted Cash	9 Months Ended
	Sep. 30, 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: September 30 December 31 2017 2016 Cash $ 230,376 $ 122,586 Restricted cash — 13,373,793 Cash and restricted cash $ 230,376 $ 13,496,379 The restricted cash was 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 appealed 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. Crusader appealed 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. In September 2017, the two judgments were settled between the parties thereto for a total of $7,000,000 which was paid from the two deposits, and the remaining funds on deposit with the Los Angeles Superior Court for the two appeals in the amount of $6,373,793 were returned to Crusader and were invested in fixed maturities and short-term investments.

Unpaid Losses and Loss Adjustme

Unpaid Losses and Loss Adjustment Expenses	9 Months Ended
	Sep. 30, 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: Nine 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 18,046,953 17,119,210 Development of insured events of prior years 6,304,798 863,141 Total incurred losses and loss adjustment expenses 24,351,751 17,982,351 Loss and loss adjustment expense payments: Attributable to insured events of the current year 4,375,729 4,783,251 Attributable to insured events of prior years 16,335,178 12,487,969 Total payments 20,710,907 17,271,220 Reserve for unpaid losses and loss adjustment expenses at September 30 – net of reinsurance 41,175,661 40,167,741 Reinsurance recoverable on unpaid losses and loss adjustment expenses 11,890,854 9,653,714 Reserve for unpaid losses and loss adjustment expenses at September 30 – gross of reinsurance $ 53,066,515 $ 49,821,455 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 $927,743 increase in the provision for insured events of current year for the nine months ended September 30, 2017, compared to the provision for insured events of current year for the nine months ended September 30, 2016, was due primarily to an aberrational increase in the frequency and severity of accident year 2017 short-tail property claims during the three months ended March 31, 2017. The $5,441,657 increase in the development of insured events of prior years for the nine months ended September 30, 2017, compared to the nine months ended September 30, 2016, was primarily due to higher than expected severity of long-tail assault and battery liability claims in accident years 2011, 2014, and 2016 associated with Crusader’s Food, Beverage and Entertainment program. The Company believes the increase in the severity for these claims as compared to prior periods is due to relatively recent social, legal, and economic changes. The development on the accident year 2011 was due primarily to $1,497,499 in additional losses and loss adjustment expenses incurred due to the September 2017 $7,000,000 settlement (see Note 12). The developments on the accident years 2014 and 2016 were due primarily to the unexpected increase in the severity of existing assault and battery claims. As a result of the foregoing losses and loss adjustment expenses and the observed trend of increasing severity of assault and battery claims, the Company decided to significantly curtail or entirely exclude coverage for risks of assault and battery covered through the Food, Beverage and Entertainment program.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 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 customers or their agents 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. 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 appealed 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. Crusader appealed 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. In September 2017, the two judgments were settled between the parties thereto for a total of $7,000,000 which was paid from the two deposits, and the remaining funds on deposit with the Los Angeles Superior Court for the two appeals were returned to Crusader. One of the Company’s agents, which the Company appointed in 2008 to assist in expanding its Transportation program, failed to pay the net premium and policy fees due to 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 and nine months ended September 30, 2017 and 2016. As of September 30, 2017, and December 31, 2016, the agent’s balance due to Unifax was $1,181,272. As of September 30, 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 September 30, 2017, the Company continues to pursue collection of the judgments from the three principals.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Subsequent Events	NOTE 13 – SUBSEQUENT EVENTS In October 2017, a number of wildfires burned through several Northern California counties. The Company has received three claims related to these fires and began adjusting them. As of the date of this report, the Company believes these three claims will not materially and adversely impact the . Due to the recent nature and scale of these events, however, it is difficult to estimate ultimate losses related to the wildfires and their potential impact on the Company’s . On October 24, 2017, Crusader issued a cash dividend of $3,000,000 to Unico, its parent and sole shareholder. This dividend was used primarily for general corporate purposes. Based on Crusader’s statutory surplus for the year ended December 31, 2016, the maximum dividend that could be made by Crusader to Unico without prior regulatory approval in 2017 is $5,912,044.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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 condensed consolidated 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 and nine months ended September 30, 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 Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission. Certain reclassifications have been made to prior period amounts to conform to the current quarter’s 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 restricted 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 condensed consolidated 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 and nine months ended September 30, 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 Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission. Certain reclassifications have been made to prior period amounts to conform to the current quarter’s 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 restricted 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)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30 September 30 2017 2016 2017 2016 Basic Loss Per Share Net loss $ (2,927,249 ) $ (1,953,497 ) $ (5,949,007 ) $ (2,001,454 ) Weighted average shares outstanding 5,307,133 5,307,133 5,307,133 5,307,881 Basic loss per share $ (0.55 ) $ (0.37 ) $ (1.12 ) $ (0.38 ) Diluted Loss Per Share Net loss $ (2,927,249 ) $ (1,953,497 ) $ (5,949,007 ) $ (2,001,454 ) Weighted average shares outstanding 5,307,133 5,307,133 5,307,133 5,307,881 Effect of dilutive securities — — — — Diluted shares outstanding 5,307,133 5,307,133 5,307,133 5,307,881 Diluted loss per share $ (0.55 ) $ (0.37 ) $ (1.12 ) $ (0.38 )

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Property And Equipment Tables
Property and Equipment	Property and equipment consist of the following: September 30 December 31 2017 2016 Building and leasehold improvements located in Calabasas, California $ 8,352,180 $ 8,339,807 Furniture, fixtures and equipment 2,707,211 2,673,670 Computer software 344,544 169,177 Accumulated depreciation and amortization (3,073,857 ) (2,687,607 ) Land located in Calabasas, California 1,787,485 1,787,485 Property and equipment, net $ 10,117,563 $ 10,282,532

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Revenues and loss before income taxes by segment	Revenues, loss before income taxes, and assets by segment are as follows: Three Months Ended Nine Months Ended September 30 September 30 2017 2016 2017 2016 Revenues Insurance company operation $ 8,586,199 $ 8,281,572 $ 25,338,850 $ 24,130,282 Other insurance operations 3,346,184 3,367,469 10,311,036 10,108,721 Intersegment eliminations (1) (2,638,994 ) (2,650,699 ) (8,154,694 ) (7,988,351 ) Total other insurance operations 707,190 716,770 2,156,342 2,120,370 Total revenues $ 9,293,389 $ 8,998,342 $ 27,495,192 $ 26,250,652 Loss Before Income Taxes Insurance company operation $ (3,917,854 ) $ (2,414,571 ) $ (7,328,672 ) $ (1,856,083 ) Other insurance operations (517,371 ) (552,151 ) (1,724,725 ) (1,172,071 ) Total loss before income taxes $ (4,435,225 ) $ (2,966,722 ) $ (9,053,397 ) $ (3,028,154 ) (1) Intersegment revenue eliminations reflect rents paid by Unico to Crusader for space 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: September 30 December 31 2017 2016 Assets Insurance company operation $ 127,140,004 $ 124,325,620 Intersegment eliminations (2) (4,514,427 ) (1,579,820 ) Total insurance company operation 122,625,577 122,745,800 Other insurance operations 15,452,919 15,476,405 Total assets $ 138,078,496 $ 138,222,205 (2) Intersegment asset eliminations reflect the elimination of Crusader receivables from Unifax and Unifax payables to Crusader.

Fair Value Of Financial Instr24

Fair Value Of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2017, and December 31, 2016: Level 1 Level 2 Level 3 Total September 30, 2017 Financial instruments: Fixed maturity securities: U.S. treasury securities $ 9,519,063 $ — $ — $ 9,519,063 Corporate securities — 22,995,709 — 22,995,709 Agency mortgage-backed securities — 15,928,123 — 15,928,123 Certificates of deposit — 35,826,000 — 35,826,000 Total fixed maturity securities 9,519,063 74,749,832 — 84,268,895 Short-term investments 12,080,638 999,877 — 13,080,515 Total financial instruments at fair value $ 21,599,701 $ 75,749,709 $ — $ 97,349,410 Level 1 Level 2 Level 3 Total 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 Short-term investments 10,204,603 — — 10,204,603 Total financial instruments at fair value $ 29,308,528 $ 61,280,000 $ — $ 90,588,528

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2017
Investments Tables
Investment income	A summary of investment income, net of investment expenses, and net realized gains and losses is as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Fixed maturities $ 323,023 $ 196,327 $ 746,787 $ 554,992 Short-term investments (13,335 ) 38,243 64,444 104,119 Gross investment income 309,688 234,570 811,231 659,111 Less investment expenses (196 ) — (25,446 ) — Net investment income 309,492 234,570 785,785 659,111 Net realized gains (losses) 373 — 528 (1,278 ) Net investment income, realized gains and losses $ 309,865 $ 234,570 $ 786,313 $ 657,833
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 September 30, 2017 Available for sale: Fixed maturities: Certificates of deposit $ 35,826,000 $ — $ — $ 35,826,000 U.S. treasury securities 9,528,210 248 (9,395 ) 9,519,063 Corporate securities 22,983,627 49,063 (36,981 ) 22,995,709 Agency mortgage-backed securities 15,941,512 3,754 (17,143 ) 15,928,123 Total fixed maturities $ 84,279,349 $ 53,065 $ (63,519 ) $ 84,268,895 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 carried at fair value and the applicable deferred federal income taxes is shown below: September 30 December 31 2017 2016 Gross unrealized gains of fixed maturities $ 53,065 $ 14,205 Gross unrealized (losses) of fixed maturities (63,519 ) (2,122 ) Net unrealized gains (losses) on investments (10,454 ) 12,083 Deferred federal tax (expense) benefit 3,554 (4,108 ) Net unrealized gains (losses), net of deferred income taxes $ (6,900 ) $ 7,975
Components of investments in unrealized loss position for continiuos period of time	A summary of estimated fair value and gross unrealized losses in a gross unrealized loss position by the length of time in which the securities have continually been in that position is shown below: Less than 12 Months 12 Months or Longer Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses September 30, 2017: U.S. treasury securities $ 9,519,063 $ (9,395 ) $ — $ — Corporate securities 9,731,038 (36,981 ) — — Agency mortgage-backed securities 12,973,738 (17,143 ) — — Total $ 32,223,839 $ (63,519 ) $ — $ — Less than 12 Months 12 Months or Longer Estimated Gross Unrealized Losses Estimated Gross Unrealized Losses December 31, 2016: U.S. treasury securities $ — $ — $ 9,097,285 $ (2,122 ) Total $ — $ — $ 9,097,285 $ (2,122 )
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: September 30 December 31 2017 2016 Certificates of deposit $ 400,000 $ 500,000 Short-term investments 200,000 100,000 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: September 30 December 31 2017 2016 U.S. treasury money market fund $ 6,673,261 $ 8,542,292 U.S. treasury bills 1,174,217 — Short-term bonds 999,877 — Certificates of deposit 200,000 1,098,000 Commercial paper 998,570 — Bank money market accounts 3,032,827 562,548 Bank savings accounts 1,763 1,763 Total short-term investments $ 13,080,515 $ 10,204,603

Cash and Restricted Cash (Table

Cash and Restricted Cash (Tables)	9 Months Ended
	Sep. 30, 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: September 30 December 31 2017 2016 Cash $ 230,376 $ 122,586 Restricted cash — 13,373,793 Cash and restricted cash $ 230,376 $ 13,496,379

Unpaid Losses and Loss Adjust27

Unpaid Losses and Loss Adjustment Expenses (Tables)	9 Months Ended
	Sep. 30, 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: Nine 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 18,046,953 17,119,210 Development of insured events of prior years 6,304,798 863,141 Total incurred losses and loss adjustment expenses 24,351,751 17,982,351 Loss and loss adjustment expense payments: Attributable to insured events of the current year 4,375,729 4,783,251 Attributable to insured events of prior years 16,335,178 12,487,969 Total payments 20,710,907 17,271,220 Reserve for unpaid losses and loss adjustment expenses at September 30 – net of reinsurance 41,175,661 40,167,741 Reinsurance recoverable on unpaid losses and loss adjustment expenses 11,890,854 9,653,714 Reserve for unpaid losses and loss adjustment expenses at September 30 – gross of reinsurance $ 53,066,515 $ 49,821,455

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Notes to Financial Statements
Loss per share - diluted	$ (0.55)	$ (.37)	$ (1.12)	$ (.38)
Loss per share - basic	$ (0.55)	$ (.37)	$ (1.12)	$ (.38)
Net loss	$ (2,927,249)	$ (1,953,497)	$ (5,949,007)	$ (2,001,454)
Weighted average shares outstanding - diluted	5,307,133	5,307,133	5,307,133	5,307,133
Weighted average shares outstanding - basic	5,307,133	5,307,133	5,307,133	5,307,133

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Property And Equipment Details
Office building and leasehold improvements	$ 8,352,180	$ 8,339,807
Furniture, fixtures, and equipment	2,707,211	2,673,670
Accumulated depreciation and amortization	(3,073,857)	(2,687,607)
Land located in Calabasas California	1,787,485	1,787,485
Computer software	344,544	169,177
Net property and equipment	$ 10,117,563	$ 10,282,532

Segment Reporting - Revenues (D

Segment Reporting - Revenues (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues
Insurance company operation	$ 8,586,199	$ 8,281,572	$ 25,338,850	$ 24,130,282
Revenues from other insurance operations	3,346,184	3,367,469	10,311,036	10,108,721
Intersegment revenue eliminations	(2,638,994)	(2,650,699)	(8,154,694)	(7,988,351)
Revenues from other insurance operations net of intersegment eliminations	707,190	716,770	2,156,342	2,120,370
Total revenues	9,293,389	8,998,342	27,495,192	26,250,652
Loss Before Income Taxes
Loss before taxes from insurance company operation	(3,917,854)	(2,414,571)	(7,328,672)	(1,856,083)
Loss before taxes from other insurance operations	(517,371)	(552,151)	(1,724,725)	(1,172,071)
Total loss	$ (4,435,225)	$ (2,966,722)	$ (9,053,397)	$ (3,028,154)

Segment Reporting - Assets (Det

Segment Reporting - Assets (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Assets
Insurance company operation	$ 127,140,004	$ 124,325,620
Intersegment asset eliminations	(4,514,427)	(1,579,820)
Total insurance company operation	122,625,577	122,745,800
Other insurance operations assets	15,452,919	15,476,405
Total assets	$ 138,078,496	$ 138,222,205

Fair Value of Financial Instr32

Fair Value of Financial Instruments - Fair Value of Invested Assets (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Fixed maturity investments available for sale:
U.S. treasury securities	$ 9,519,063	$ 19,103,925
Corporate securities	22,995,709	0
Agency mortgage-backed securities	15,928,123	0
Certificates of deposit	35,826,000	61,280,000
Total fixed maturities	84,268,895	80,383,925
Short-term investments, at fair value	13,080,515	10,204,603
Total financial instruments at fair value	97,349,410	90,588,528
Level 1
Fixed maturity investments available for sale:
U.S. treasury securities	9,519,063	19,103,925
Corporate securities	0	0
Agency mortgage-backed securities	0	0
Certificates of deposit	0	0
Total fixed maturities	9,519,063	19,103,925
Short-term investments, at fair value	12,080,638	10,204,603
Total financial instruments at fair value	21,599,701	29,308,528
Level 2
Fixed maturity investments available for sale:
U.S. treasury securities	0	0
Corporate securities	22,995,709	0
Agency mortgage-backed securities	15,928,123	0
Certificates of deposit	35,826,000	61,280,000
Total fixed maturities	74,749,832	61,280,000
Short-term investments, at fair value	999,877	0
Total financial instruments at fair value	75,749,709	61,280,000
Level 3
Fixed maturity investments available for sale:
U.S. treasury securities	0	0
Corporate securities	0	0
Agency mortgage-backed securities	0	0
Certificates of deposit	0	0
Total fixed maturities	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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Notes to Financial Statements
Investment income fixed maturities	$ 323,023	$ 196,327	$ 746,787	$ 554,992
Investment income short-term investments	(13,335)	38,243	64,444	104,119
Gross investment income	309,688	234,570	811,231	659,111
Investment expense	196	0	25,446	0
Investment income net of expenses	309,492	234,570	785,785	659,111
Net realized investment gains (losses)	373	0	528	(1,278)
Net investment income, realized gains and losses	$ 309,865	$ 234,570	$ 786,313	$ 657,833

Investments - Available for sal

Investments - Available for sale investments (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Certificates of deposit
Amortized cost of fixed maturity investments by asset type	$ 35,826,000	$ 61,280,000
Gross unrealized gains by asset type	0	0
Gross unrealized losses by asset type	0	0
Investments at fair value	35,826,000	61,280,000
U.S. treasury securities
Amortized cost of fixed maturity investments by asset type	9,528,210	19,091,842
Gross unrealized gains by asset type	248	14,205
Gross unrealized losses by asset type	(9,395)	(2,122)
Investments at fair value	9,519,063	19,103,925
Corporate securities
Amortized cost of fixed maturity investments by asset type	22,983,627
Gross unrealized gains by asset type	49,063
Gross unrealized losses by asset type	(36,981)
Investments at fair value	22,995,709
Agency mortgage-backed securities
Amortized cost of fixed maturity investments by asset type	15,941,512
Gross unrealized gains by asset type	3,754
Gross unrealized losses by asset type	(17,143)
Investments at fair value	15,928,123
Total fixed maturities
Amortized cost of fixed maturity investments by asset type	84,279,349	80,371,842
Gross unrealized gains by asset type	53,065	14,205
Gross unrealized losses by asset type	(63,519)	(2,122)
Investments at fair value	$ 84,268,895	$ 80,383,925

Investments - Unrealized Gains

Investments - Unrealized Gains (Losses) on Investments in Fixed Maturities (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Notes to Financial Statements
Gross unrealized gains on fixed maturities	$ 53,065	$ 14,205
Gross unrealized losses on fixed maturities	(63,519)	(2,122)
Net unrealized gains (losses) on fixed maturities	(10,454)	12,083
Deferred federal tax (expense) benefit	3,554	(4,108)
Net unrealized gains (losses), net of deferred income taxes	$ (6,900)	$ 7,975

Investments - Securities in Unr

Investments - Securities in Unrealized Loss Position (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
U.S. treasury securities
Fair value, less than 12 months	$ 9,519,063	$ 0
Fair value, 12 months or longer	0	9,097,285
Gross unrealized losses, less than 12 months	9,395	0
Gross unrealized losses, 12 months or longer	0	2,122
Corporate securities
Fair value, less than 12 months	9,731,038
Fair value, 12 months or longer	0
Gross unrealized losses, less than 12 months	36,981
Gross unrealized losses, 12 months or longer	0
Agency mortgage-backed securities
Fair value, less than 12 months	12,973,738
Fair value, 12 months or longer	0
Gross unrealized losses, less than 12 months	17,143
Gross unrealized losses, 12 months or longer	0
Total fixed maturities
Fair value, less than 12 months	32,223,839	0
Fair value, 12 months or longer	0	9,097,285
Gross unrealized losses, less than 12 months	63,519	0
Gross unrealized losses, 12 months or longer	$ 0	$ 2,122

Investments - State Held Deposi

Investments - State Held Deposits (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Notes to Financial Statements
Short-term investments held by state	$ 200,000	$ 100,000
Certificates of deposit held by states	400,000	500,000
State held deposits	$ 600,000	$ 600,000

Investments - Short term invesm

Investments - Short term invesmtments (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Notes to Financial Statements
Short-term U.S. treasury bills	$ 1,174,217	$ 0
U.S. treasury money market fund	6,673,261	8,542,292
Certificates of deposit	200,000	1,098,000
Short-term bonds	999,877	0
Commercial paper	998,570	0
Bank money market accounts	3,032,827	562,548
Bank savings accounts	1,763	1,763
Total short-term investments	$ 13,080,515	$ 10,204,603

Cash and Restricted Cash - Cash

Cash and Restricted Cash - Cash and Restricted Cash (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Notes to Financial Statements
Cash	$ 230,376	$ 122,586
Restricted cash	0	13,373,793
Cash and restricted cash	$ 230,376	$ 13,496,379	$ 14,589,064	$ 8,258,673

Unpaid Losses And Loss Adjust40

Unpaid Losses And Loss Adjustment Expenses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Insurance Loss Reserves [Abstract]
Gross reserves	$ 53,066,515	$ 49,821,455	$ 53,066,515	$ 49,821,455	$ 47,055,787	$ 49,093,571
Reinsurance recoverable on unpaid losses and loss adjustment expenses	11,890,854	9,653,714	11,890,854	9,653,714	9,520,970	9,636,961
Net reserves	41,175,661	40,167,741	41,175,661	40,167,741	$ 37,534,817	$ 39,456,610
Incurred losses and loss adjustment expenses
Current accident year			18,046,953	17,119,210
Prior accident years			6,304,798	863,141
Incurred losses and loss adjustment expenses	$ 9,917,896	$ 8,038,100	24,351,751	17,982,351
Paid losses and loss adjustment expenses
Current accident year			4,375,729	4,783,251
Prior accident years			16,335,178	12,487,969
Total payment losses and loss adjustment expenses			$ 20,710,907	$ 17,271,220

Repurchase of Common Stock - 41

Repurchase of Common Stock - Effects on Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Notes to Financial Statements
Cost of common stock repurchase	$ 0	$ 0	$ 0	$ 89,582
Share repurchase allocated to paid in capital	0	0	0	4,331
Share repurchase allocated to retained earnings	$ 0	$ 0	$ 0	$ 85,251
Stock repurchase authority remiaining			188,655		188,655
Shares repurchased and retired during period - shares	0	0	0	8,812
Repurchase of common stock previously authorized					500,000

Loss Per Share (Details Narrati

Loss Per Share (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Notes to Financial Statements
Common Share Equivalents Excluded from Diluted Loss per Share Calculation	0	222	0	530

Property and Equipment (Detai43

Property and Equipment (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)
Property And Equipment Details Narrative
Square footage of building	46,884		46,884
Building square footage leased to non-alliliates	14,481		14,481
Building square footage available for lease	0		0
Depreciation and amortization	$ 121,540	$ 121,577	$ 386,250	$ 361,490
Calabasas building operating expenses including depreciation	201,701	207,401	549,295	543,638
Office building revenue from leases from non-affiliates	$ 83,257	$ 55,099	$ 198,902	$ 171,133

Segment Reporting (Details Narr

Segment Reporting (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Details Narrative
Percentage of consolidated revenues from insurance company operations segment	92.00%	92.00%	92.00%	92.00%

Investments (Details Narrative)

Investments (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Notes to Financial Statements
Brokered certificates of deposit	$ 35,426,000		$ 35,426,000		$ 60,780,000
Statutory deposits number of banks	4		4		4
Number of investments sold	2	0	4	3
Realized investment gains (losses)	$ 373	$ 0	$ 528	$ (1,278)

Cash and Restricted Cash (Detai

Cash and Restricted Cash (Details Narrative) - USD ($)	1 Months Ended
	Sep. 30, 2017	Mar. 21, 2016	Dec. 28, 2015
Notes to Financial Statements
Restricted Cash Deposited with Court		$ 5,449,615	$ 7,924,178
Settlement of Two Judgments	$ 7,000,000
Return of Cash Deposited with Court	$ 6,373,793

Unpaid Losses and Loss Adjust47

Unpaid Losses and Loss Adjustment Expenses (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Notes to Financial Statements
Increase in Provision for Insured Events of Current Year		$ 927,743
Increase in Development of Insured Events of Prior Years		5,441,657
Additional Losses Due to Settlement of Two Judgments		$ 1,497,499
Settlement of Two Judgments	$ 7,000,000

Contingencies (Details Narrativ

Contingencies (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Mar. 21, 2016	Dec. 28, 2015
Notes to Financial Statements
Agent balance receivable	$ 1,181,272	$ 1,181,272		$ 1,181,272		$ 1,181,272
Agent balance bad debt reserve	$ 1,181,272	$ 1,181,272		$ 1,181,272		$ 1,181,272
Agent balance bad debt reserve allowance percentage	100.00%	100.00%		100.00%		100.00%
Agent balance collected		$ 0	$ 0	$ 0	$ 0
Stipulated judgement from one principal	$ 1,200,000	$ 1,200,000		$ 1,200,000		$ 1,200,000
Judgements obtained from two principles				Full amount due
Restricted Cash Deposited with Court							$ 5,449,615	$ 7,924,178
Settlement of Two Judgments	$ 7,000,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative)	1 Months Ended
	Oct. 31, 2017	Oct. 24, 2017USD ($)
Notes to Financial Statements
Wild Fire Claims Received	3
Cash Dividend Paid to Parent Company		$ 3,000,000