Unico American (UNAM) 10-Q 14 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Aug. 14, 2019
Document And Entity Information
Entity Registrant Name	UNICO AMERICAN CORP
Entity Central Index Key	0000100716
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Is Entity Small Business?	true
Is Entity an Emerging Growth Company?	false
Entity Common Stock, Shares Outstanding		5,306,747
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Available-for-sale:
Fixed maturities, at fair value (amortized cost: $80,207,437 at June 30, 2019, and $78,302,588 at December 31, 2018)	$ 81,270,712	$ 76,910,137
Held-to-maturity:
Fixed maturities, at amortized cost (fair value: $4,782,000 at June 30, 2019, and $7,126,000 at December 31, 2018)	4,782,000	7,126,000
Short-term investments, at fair value	200,000	4,690,954
Total Investments	86,252,712	88,727,091
Cash and cash equivalents	5,591,085	4,917,762
Accrued investment income	409,544	393,782
Receivable, net	4,738,587	3,933,068
Reinsurance Recoverable:
Paid losses and loss adjustment expenses	455,413	(1,319)
Unpaid losses and loss adjustment expenses	11,139,312	9,531,602
Deferred policy acquisition costs	3,628,624	3,489,728
Property and equipment (net)	9,909,957	9,692,325
Deferred income taxes	4,089,041	4,375,484
Other assets	257,394	557,443
Total Assets	126,471,669	125,616,966
LIABILITIES
Unpaid losses and loss adjustment expenses	49,829,790	51,657,155
Unearned premium	17,726,398	15,964,589
Advance premium and premium deposits	359,705	234,442
Accrued expenses and other liabilities	1,650,203	1,845,358
Total Liabilities	69,566,096	69,701,544
STOCKHOLDERS' EQUITY
Common stock, no par, authorized 10,000,000 shares; issued and outstanding shares 5,306,747 and 5,307,103 at June 30, 2019, and December 31, 2018, respectively	3,772,682	3,772,857
Accumulated other comprehensive loss	839,987	(1,100,036)
Retained earnings	52,292,904	53,242,601
Total Stockholders Equity	56,905,573	55,915,422
Total Liabilities and Stockholders' Equity	$ 126,471,669	$ 125,616,966

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets Parenthetical Abstract
Fixed maturities, available for sale, amortized cost	$ 80,207,437	$ 78,302,588
Fixed maturities, held to maturity, fair value	$ 4,782,000	$ 7,126,000
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,306,747	5,307,103
Common stock, shares outstanding	5,306,747	5,307,103

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
REVENUES
Net premium earned	$ 6,518,112	$ 7,362,945	$ 12,782,262	$ 15,044,572
Investment income	530,745	452,508	1,063,375	897,209
Net realized investments gains (losses)	(4,512)	137	(12,661)	137
Other income (loss)	168,828	112,199	(91,872)	167,889
Total Insurance Company Operation	7,213,173	7,927,789	13,741,104	16,109,807
Gross commissions and fees	527,825	671,449	1,075,270	1,278,106
Investment income	2	98	9	195
Finance fees earned	53,998	34,380	103,371	52,476
Other income	100	9,736	10,818	9,757
Total Revenues	7,795,098	8,643,452	14,930,572	17,450,341
EXPENSES
Losses and loss adjustment expenses	5,058,951	4,929,203	10,213,394	12,730,960
Policy acquisition costs	1,289,481	1,515,476	2,376,194	3,136,981
Salaries and employee benefits	1,012,805	1,126,503	2,040,654	2,414,580
Commissions to agents/brokers	41,077	40,541	91,198	81,880
Other operating expenses	735,454	744,697	1,363,534	1,610,840
Total Expenses	8,137,768	8,356,420	16,084,974	19,975,241
Income (Loss) Before Income Taxes	(342,670)	287,032	(1,154,402)	(2,524,900)
Income Tax Expense (Benefit)	(65,993)	118,735	(206,651)	(485,945)
Net Income (Loss)	$ (276,677)	$ 168,297	$ (947,751)	$ (2,038,955)
Basic
Income (loss) per share	$ (.05)	$ .03	$ (.18)	$ (.38)
Weighted average shares	5,306,938	5,307,133	5,307,021	5,307,133
Diluted
Income (loss) per share	$ (0.05)	$ 0.03	$ (0.18)	$ (0.38)
Weighted average shares	5,306,938	5,307,133	5,307,021	5,307,133

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Consolidated Statements Of Comprehensive Income
Net Income (Loss)	$ (276,677)	$ 168,297	$ (947,751)	$ (2,038,955)
Other Changes in Comprehensive Income (Loss):
Unrealized gains (losses) on securities classified as available-for-sale arising during the period, net of income tax	964,138	(244,273)	1,940,023	(1,139,399)
Comprehensive Income (Loss)	$ 687,461	$ (75,976)	$ 992,272	$ (3,178,354)

Shareholders Equity

Shareholders Equity - USD ($)	Common Stock	Comprehensive Income / Loss	Retained Earnings / Accumulated Deficit	Total
Beginning Balance, Value at Dec. 31, 2017	$ 3,772,872	$ (239,896)	$ 56,412,361	$ 59,945,337
Beginning Balance, Shares at Dec. 31, 2017	5,307,133
Change in Comprehensive Income, net of Deferred Income Tax		(895,126)		(895,126)
Net Income (Loss)			(2,207,251)	(2,207,251)
Ending Balance, Value at Mar. 31, 2018	$ 3,772,872	(1,135,022)	54,205,110	56,842,960
Ending Balance, Shares at Mar. 31, 2018	5,307,133
Beginning Balance, Value at Dec. 31, 2017	$ 3,772,872	(239,896)	56,412,361	59,945,337
Beginning Balance, Shares at Dec. 31, 2017	5,307,133
Net Income (Loss)				(2,038,955)
Ending Balance, Value at Jun. 30, 2018	$ 3,772,872	(1,379,295)	54,373,406	56,766,983
Ending Balance, Shares at Jun. 30, 2018	5,307,133
Beginning Balance, Value at Mar. 31, 2018	$ 3,772,872	(1,135,022)	54,205,110	56,842,960
Beginning Balance, Shares at Mar. 31, 2018	5,307,133
Change in Comprehensive Income, net of Deferred Income Tax		(244,273)		(244,273)
Net Income (Loss)			168,296	168,297
Ending Balance, Value at Jun. 30, 2018	$ 3,772,872	(1,379,295)	54,373,406	56,766,983
Ending Balance, Shares at Jun. 30, 2018	5,307,133
Beginning Balance, Value at Dec. 31, 2018	$ 3,772,857	(1,100,036)	53,242,601	55,915,422
Beginning Balance, Shares at Dec. 31, 2018	5,307,103
Change in Comprehensive Income, net of Deferred Income Tax		975,885		975,885
Net Income (Loss)			(671,074)	(671,074)
Ending Balance, Value at Mar. 31, 2019	$ 3,772,857	(124,151)	52,571,527	56,220,233
Ending Balance, Shares at Mar. 31, 2019	5,307,103
Beginning Balance, Value at Dec. 31, 2018	$ 3,772,857	(1,100,036)	53,242,601	55,915,422
Beginning Balance, Shares at Dec. 31, 2018	5,307,103
Net Income (Loss)				(947,751)
Ending Balance, Value at Jun. 30, 2019	$ 3,772,682	839,987	52,292,904	56,905,573
Ending Balance, Shares at Jun. 30, 2019	5,306,747
Beginning Balance, Value at Mar. 31, 2019	$ 3,772,857	(124,151)	52,571,527	56,220,233
Beginning Balance, Shares at Mar. 31, 2019	5,307,103
Shares Repurchased, Value	$ (175)		(1,946)	(2,121)
Shares Repurchased, Shares	(356)
Change in Comprehensive Income, net of Deferred Income Tax		964,138		964,138
Net Income (Loss)			(276,677)	(276,677)
Ending Balance, Value at Jun. 30, 2019	$ 3,772,682	$ 839,987	$ 52,292,904	$ 56,905,573
Ending Balance, Shares at Jun. 30, 2019	5,306,747

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash Flows from Operating Activities:
Net Loss	$ (947,751)	$ (2,038,955)
Adjustments to reconcile net loss to net cash from operations
Depreciation and amortization	270,105	281,717
Bond amortization, net	(5,228)	128,839
Bad debt expense	(20,867)	279
Net realized investment (gains) losses	12,661	(137)
Changes in assets and liabilities:
Net receivables and accrued investment income	(800,414)	1,626,298
Reinsurance recoverable	(2,064,442)	(378,171)
Deferred policy acquisition costs	(138,896)	445,267
Other assets	300,049	(50,203)
Unpaid losses and loss adjustment expenses	(1,827,365)	989,062
Unearned premium	1,761,809	(1,944,306)
Advance premium and premium deposits	125,263	31,980
Accrued expenses and other liabilities	(195,155)	(697,649)
Deferred income taxes	(229,260)	(494,745)
Net Cash Used by Operating Activities	(3,759,491)	(2,100,724)
Cash Flows from Investing Activities:
Purchase of fixed maturity investments	(6,743,752)	(10,735,449)
Proceeds from maturity of fixed maturity investments	3,702,676	8,741,441
Proceeds from sale or call of fixed maturity investments	3,472,794	1,000,000
Net decrease in short-term investments	4,490,954	1,647,778
Additions to property and equipment	(487,737)	(84,790)
Net Cash Provided by Investing Activities	4,434,935	568,980
Cash Flows from Financing Activities:
Repurchase of common stock	(2,121)	0
Net Cash Used by Financing Activities	(2,121)	0
Net increase (decrease) in cash and cash equivalents	673,323	(1,531,744)
Cash and cash equivalents beginning of period	4,917,762	9,366,944
Cash and cash equivalents end of period	5,591,085	7,835,200
Cash paid during the period for:
Interest	0	0
Income taxes	$ 8,800	$ 8,800

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
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 and six months ended June 30, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. Quarterly condensed financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2018 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 7). The Company has used the following methods and assumptions in estimating its fair value disclosures for instruments carried at fair value: Short-term investments and investment securities, excluding long-term certificates of deposit – Fair values are obtained from widely accepted third party vendors. The Company has used the following methods and assumptions for estimating fair value for other financial instruments not carried at fair value: Cash and cash equivalents– The carrying amounts reported in the Condensed Consolidated Balance Sheets approximate their fair values given the short-term nature of these instruments. Long-term certificates of deposit – The carrying amounts reported in the Condensed Consolidated Balance Sheets for these instruments are at amortized cost which approximates their fair value. 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. Cash Equivalents Cash equivalents are comprised of highly liquid investments with initial maturity of 90 days or less. Cash equivalents include, but not limited to, custodial trust, bank money market and savings accounts.

Repurchase of Common Stock - Ef

Repurchase of Common Stock - Effects on Stockholders' Equity	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019, and December 31, 2018, the Company had remaining authority under the 2008 program to repurchase up to an aggregate of 188,269 and 188,625 shares of its common stock, respectively. The 2008 program is the only program under which there is authority to repurchase shares of the Company’s common stock. The Company repurchased 356 shares of stock during the three and six months ended June 30, 2019, in unsolicited transactions at a cost of $2,121 of which $175 was allocated to capital and $1,946 was allocated to retained earnings. The Company did not repurchase any stock during the three and six months ended June 30, 2018. The Company has retired or will retire all stock repurchased.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Earnings Per Share	NOTE 3 – EARNINGS (LOSS) PER SHARE The following table represents the reconciliation of the Company's basic earnings (loss) per share and diluted earnings (loss) per share computations reported on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Basic Earnings (Loss) Per Share Net income (loss) $ (276,677 ) $ 168,297 $ (947,751 ) $ (2,038,955 ) Weighted average shares outstanding 5,306,938 5,307,133 5,307,021 5,307,133 Basic earnings (loss) per share $ (0.05 ) $ 0.03 $ (0.18 ) $ (0.38 ) Diluted Earnings (Loss) Per Share Net income (loss) $ (276,677 ) $ 168,297 $ (947,751 ) $ (2,038,955 ) Weighted average shares outstanding 5,306,938 5,307,133 5,307,021 5,307,133 Diluted shares outstanding 5,306,938 5,307,133 5,307,021 5,307,133 Diluted earnings (loss) per share $ (0.05 ) $ 0.03 $ (0.18 ) $ (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.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	6 Months Ended
	Jun. 30, 2019
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards	NOTE 4 – RECENTLY ISSUED ACCOUNTING STANDARDS Recently adopted standards In February 2016, the FASB issued ASU 2016-02 “Leases.” ASU 2016-02 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 adopted ASU 2016-02 effective January 1, 2019. The adoption of ASU 2016-02 did not have a material impact to the Condensed Consolidated Statements of Operations and the Condensed Consolidated Balance Sheets. Standards not yet adopted 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.

Accounting For Income Taxes

Accounting For Income Taxes	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Accounting For Income Taxes	NOTE 5 – ACCOUNTING FOR 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 2015 and California state income tax authorities for tax returns filed starting at taxable year 2014. There are no ongoing examinations of income tax returns by federal or state tax authorities. As of June 30, 2019, and December 31, 2018, 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)	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Property and Equipment (Net of Accumulated Depreciation)	NOTE 6 – PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: June 30 December 31 2019 2018 Building and leasehold improvements located in Calabasas, California $ 8,398,275 $ 8,398,275 Furniture, fixtures, and equipment 2,081,157 2,063,549 Computer software 363,016 363,016 Accumulated depreciation and amortization (3,321,610 ) (3,051,505 ) Computer software under development 601,634 131,505 Land located in Calabasas, California 1,787,485 1,787,485 Property and equipment, net $ 9,909,957 $ 9,692,325 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 six months ended June 30, 2019, was $135,078 and $270,105, respectively, and for the three and six months ended June 30, 2018, was $141,516 and $281,717, respectively. For the three and six months ended June 30, 2019, the Calabasas building has generated rental revenue from non-affiliated tenants in the amount of $40,158 and $82,388, respectively, and for the three and six months ended June 30, 2018, rental revenue from non-affiliated tenants in the amount of $89,211 and $175,117, respectively, which is included in “Other income” from insurance company operation in the Company’s Condensed Consolidated Statements of Operations. For the three and six months ended June 30, 2019, the Calabasas building incurred operating expenses (including depreciation) in the amount of $198,507 and $355,296, respectively, and $186,205 and $374,109 for the three and six months ended June 30, 2018, respectively, 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 June 30, 2019, 5,092 square feet of the Calabasas building was leased to non-affiliated entities and 9,389 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 or incurred internally to upgrade the existing systems. 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.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Fair Value of Financial Instruments	NOTE 7 – 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 June 30, 2019, and December 31, 2018: Level 1 Level 2 Level 3 Total June 30, 2019 Financial instruments: Available-for-sale fixed maturities: U.S. treasury securities $ 15,198,840 $ — $ — $ 15,198,840 Corporate securities — 42,276,974 — 42,276,974 Agency mortgage backed securities — 23,794,898 — 23,794,898 Short-term investments 200,000 — — 200,000 Total financial instruments at fair value $ 15,398,840 $ 66,071,872 $ — $ 81,470,712 Level 1 Level 2 Level 3 Total December 31, 2018 Financial instruments: Available-for-sale fixed maturities: U.S. treasury securities $ 16,619,619 $ — $ — $ 16,619,619 Corporate securities — 40,003,723 — 40,003,723 Agency mortgage backed securities — 20,286,795 — 20,286,795 Short-term investments 4,690,954 — — 4,690,954 Total financial instruments at fair value $ 21,310,573 $ 60,290,518 $ — $ 81,601,091 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 six months ended June 30, 2019 and 2018.

Investments

Investments	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Investments	NOTE 8 – INVESTMENTS A summary of investment income, net of investment expenses, is as follows: Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Fixed maturities $ 550,841 $ 469,500 $ 1,094,536 $ 931,667 Short-term investments and cash equivalents 9,906 11,642 36,467 19,588 Gross investment income 560,747 481,142 1,131,003 951,255 Less: investment expenses (30,000 ) (28,536 ) (67,619 ) (53,851 ) Net investment income $ 530,747 $ 452,606 $ 1,063,384 $ 897,404 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 June 30, 2019 Available-for-sale fixed maturities: U.S. treasury securities $ 15,076,613 $ 132,352 $ (10,125 ) $ 15,198,840 Corporate securities 41,465,815 817,350 (6,191 ) 42,276,974 Agency mortgage-backed securities 23,665,009 184,821 (54,932 ) 23,794,898 Held-to-maturity fixed securities: Certificates of deposits 4,782,000 — — 4,782,000 Total fixed maturities $ 84,989,437 $ 1,134,523 $ (71,248 ) $ 86,052,712 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2018 Available-for-sale fixed maturities: U.S. treasury securities $ 16,746,832 $ 16,069 $ (143,282 ) $ 16,619,619 Corporate securities 40,804,425 50,422 (851,124 ) 40,003,723 Agency mortgage-backed securities 20,751,331 7,757 (472,293 ) 20,286,795 Held-to-maturity fixed securities: Certificates of deposits 7,126,000 — — 7,126,000 Total fixed maturities $ 85,428,588 $ 74,248 $ (1,466,699 ) $ 84,036,137 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: June 30 December 31 2019 2018 Gross unrealized gains on fixed maturities $ 1,134,523 $ 74,248 Gross unrealized losses on fixed maturities (71,248 ) (1,466,699 ) Net unrealized gains (losses) on fixed maturities 1,063,275 (1,392,451 ) Deferred federal tax benefit (expense) (223,288 ) 292,415 Net unrealized gains (losses), net of deferred income taxes $ 839,987 $ (1,100,036 ) A summary of estimated fair value, gross unrealized losses, and number of securities 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 Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities June 30, 2019 U.S. treasury securities $ — $ — — $ 3,486,173 $ (10,125 ) 3 Corporate securities — — — 3,513,044 (6,191 ) 5 Agency mortgage-backed securities — — — 13,031,946 (54,932 ) 11 Total $ — $ — — $ 20,031,163 $ (71,248 ) 19 Less than 12 Months 12 Months or Longer Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities December 31, 2018 U.S. treasury securities $ 1,760,491 $ (20,181 ) 2 $ 8,496,069 $ (123,101 ) 6 Corporate securities 10,878,381 (272,515 ) 17 21,189,487 (578,609 ) 27 Agency mortgage-backed securities — — — 17,034,086 (472,293 ) 15 Total $ 12,638,872 $ (292,696 ) 19 $ 46,719,642 $ (1,174,003 ) 48 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, performed by the Company’s independent investment advisor, 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 June 30, 2019, and December 31, 2018, 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, regulatory, and/or market conditions or investment securities may be called by their issuers prior to the securities’ maturity. The Company sold two securities, with amortized cost of $2,498,104, prior to maturity during the three months ended June 30, 2019 and three securities, with amortized cost of $2,997,098, during the six months ended June 30, 2019. The Company had one call of an investment security during the three and six months ended June 30, 2019. The Company realized net investment losses of $4,512 and $12,661 on these sales and call for the three and six months ended June 30, 2019, respectively. The Company had two calls of investment securities during the three and six months ended June 30, 2018 and realized net investment gains of $137 for the three and six months ended June 30, 2018 on these calls. The unrealized gains or losses from fixed maturities are reported as “Accumulated other comprehensive income or loss,” which is a separate component of stockholders’ equity, net of any deferred tax effect. The Company’s investment in certificates of deposit included $4,382,000 and $6,726,000 of brokered certificates of deposit as of June 30, 2019, and December 31, 2018, 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”). The following securities from three 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 insurance in California and for admission to transact insurance business in the state of Nevada. June 30 December 31 2019 2018 Certificates of deposit $ 200,000 $ 200,000 Short-term investments 200,000 200,000 Total state held deposits $ 400,000 $ 400,000 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: June 30 December 31 2019 2018 U.S. treasury bills $ — $ 4,490,954 Certificate of deposit 200,000 200,000 Total short-term investments $ 200,000 $ 4,690,954

Unpaid Losses and Loss Adjustme

Unpaid Losses and Loss Adjustment Expenses	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Unpaid Losses and Loss Adjustment Expenses	NOTE 9 – 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: Six Months Ended June 30 2019 2018 Reserve for unpaid losses and loss adjustment expenses at January 1 – gross of reinsurance $ 51,657,155 $ 49,076,991 Less reinsurance recoverable on unpaid losses and loss adjustment expenses 9,531,602 8,393,550 Reserve for unpaid losses and loss adjustment expenses at January 1 – net of reinsurance 42,125,553 40,683,441 Incurred losses and loss adjustment expenses: Provision for insured events of current year 9,685,514 10,661,378 Development of insured events of prior years 527,880 2,069,582 Total incurred losses and loss adjustment expenses 10,213,394 12,730,960 Loss and loss adjustment expense payments: Attributable to insured events of the current year 2,670,068 2,819,187 Attributable to insured events of prior years 10,978,401 9,333,811 Total payments 13,648,469 12,152,998 Reserve for unpaid losses and loss adjustment expenses at June 30 – net of reinsurance 38,690,478 41,261,403 Reinsurance recoverable on unpaid losses and loss adjustment expenses 11,139,312 8,804,650 Reserve for unpaid losses and loss adjustment expenses at June 30 – gross of reinsurance $ 49,829,790 $ 50,066,053 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.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2019
Notes to Financial Statements
Contingencies	NOTE 10 – CONTINGENCIES The Company, by virtue of the nature of the business conducted by it, becomes involved in numerous legal proceedings as either plaintiff or defendant. From time to time, the Company is required to resort to legal proceedings against vendors providing services to the Company or against to enforce collection of premiums, commissions, The Company establishes reserves for lawsuits, regulatory actions, and other contingencies for which the Company is able to estimate its potential exposure and believes a loss is probable. For loss contingencies believed to be reasonably possible, the Company discloses the nature of the loss contingency, an estimate of the possible loss, a range of loss, or a statement that such an estimate cannot be made. Likewise, the Company is sometimes named as a cross-defendant in litigation, which is principally directed against an insured who was issued a policy of insurance directly or indirectly through the Company. Incidental actions related to disputes concerning the issuance or non-issuance of individual policies are sometimes brought by customers or others. These items are also handled on a routine basis by counsel, and they do not generally affect the operations of the Company. Management is confident that the ultimate outcome of pending litigation should not have an adverse effect on the Company's consolidated results of operations or financial position. The Company vigorously defends itself unless a reasonable settlement appears appropriate.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
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 and six months ended June 30, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. Quarterly condensed financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2018 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 7). The Company has used the following methods and assumptions in estimating its fair value disclosures for instruments carried at fair value: Short-term investments and investment securities, excluding long-term certificates of deposit – Fair values are obtained from widely accepted third party vendors. The Company has used the following methods and assumptions for estimating fair value for other financial instruments not carried at fair value: Cash and cash equivalents– The carrying amounts reported in the Condensed Consolidated Balance Sheets approximate their fair values given the short-term nature of these instruments. Long-term certificates of deposit – The carrying amounts reported in the Condensed Consolidated Balance Sheets for these instruments are at amortized cost which approximates their fair value. 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. Cash Equivalents Cash equivalents are comprised of highly liquid investments with initial maturity of 90 days or less. Cash equivalents include, but not limited to, custodial trust, bank money market and savings accounts.
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 and six months ended June 30, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. Quarterly condensed financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2018 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 7). The Company has used the following methods and assumptions in estimating its fair value disclosures for instruments carried at fair value: Short-term investments and investment securities, excluding long-term certificates of deposit – Fair values are obtained from widely accepted third party vendors. The Company has used the following methods and assumptions for estimating fair value for other financial instruments not carried at fair value: Cash and cash equivalents– The carrying amounts reported in the Condensed Consolidated Balance Sheets approximate their fair values given the short-term nature of these instruments. Long-term certificates of deposit – The carrying amounts reported in the Condensed Consolidated Balance Sheets for these instruments are at amortized cost which approximates their fair value. 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.
Cash Equivalents	Cash Equivalents Cash equivalents are comprised of highly liquid investments with initial maturity of 90 days or less. Cash equivalents include, but not limited to, custodial trust, bank money market and savings accounts.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share Tables Abstract
Basic and diluted earnings per share calculation data	The following table represents the reconciliation of the Company's basic earnings (loss) per share and diluted earnings (loss) per share computations reported on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Basic Earnings (Loss) Per Share Net income (loss) $ (276,677 ) $ 168,297 $ (947,751 ) $ (2,038,955 ) Weighted average shares outstanding 5,306,938 5,307,133 5,307,021 5,307,133 Basic earnings (loss) per share $ (0.05 ) $ 0.03 $ (0.18 ) $ (0.38 ) Diluted Earnings (Loss) Per Share Net income (loss) $ (276,677 ) $ 168,297 $ (947,751 ) $ (2,038,955 ) Weighted average shares outstanding 5,306,938 5,307,133 5,307,021 5,307,133 Diluted shares outstanding 5,306,938 5,307,133 5,307,021 5,307,133 Diluted earnings (loss) per share $ (0.05 ) $ 0.03 $ (0.18 ) $ (0.38 )

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2019
Property And Equipment
Property and Equipment	Property and equipment consist of the following: June 30 December 31 2019 2018 Building and leasehold improvements located in Calabasas, California $ 8,398,275 $ 8,398,275 Furniture, fixtures, and equipment 2,081,157 2,063,549 Computer software 363,016 363,016 Accumulated depreciation and amortization (3,321,610 ) (3,051,505 ) Computer software under development 601,634 131,505 Land located in Calabasas, California 1,787,485 1,787,485 Property and equipment, net $ 9,909,957 $ 9,692,325

Fair Value Of Financial Instr_2

Fair Value Of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Of Financial Instruments
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 June 30, 2019, and December 31, 2018: Level 1 Level 2 Level 3 Total June 30, 2019 Financial instruments: Available-for-sale fixed maturities: U.S. treasury securities $ 15,198,840 $ — $ — $ 15,198,840 Corporate securities — 42,276,974 — 42,276,974 Agency mortgage backed securities — 23,794,898 — 23,794,898 Short-term investments 200,000 — — 200,000 Total financial instruments at fair value $ 15,398,840 $ 66,071,872 $ — $ 81,470,712 Level 1 Level 2 Level 3 Total December 31, 2018 Financial instruments: Available-for-sale fixed maturities: U.S. treasury securities $ 16,619,619 $ — $ — $ 16,619,619 Corporate securities — 40,003,723 — 40,003,723 Agency mortgage backed securities — 20,286,795 — 20,286,795 Short-term investments 4,690,954 — — 4,690,954 Total financial instruments at fair value $ 21,310,573 $ 60,290,518 $ — $ 81,601,091

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2019
Investments Tables Abstract
Investment income	A summary of investment income, net of investment expenses, is as follows: Three Months Ended June 30 Six Months Ended June 30 2019 2018 2019 2018 Fixed maturities $ 550,841 $ 469,500 $ 1,094,536 $ 931,667 Short-term investments and cash equivalents 9,906 11,642 36,467 19,588 Gross investment income 560,747 481,142 1,131,003 951,255 Less: investment expenses (30,000 ) (28,536 ) (67,619 ) (53,851 ) Net investment income $ 530,747 $ 452,606 $ 1,063,384 $ 897,404
Fixed maturity 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 June 30, 2019 Available-for-sale fixed maturities: U.S. treasury securities $ 15,076,613 $ 132,352 $ (10,125 ) $ 15,198,840 Corporate securities 41,465,815 817,350 (6,191 ) 42,276,974 Agency mortgage-backed securities 23,665,009 184,821 (54,932 ) 23,794,898 Held-to-maturity fixed securities: Certificates of deposits 4,782,000 — — 4,782,000 Total fixed maturities $ 84,989,437 $ 1,134,523 $ (71,248 ) $ 86,052,712 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2018 Available-for-sale fixed maturities: U.S. treasury securities $ 16,746,832 $ 16,069 $ (143,282 ) $ 16,619,619 Corporate securities 40,804,425 50,422 (851,124 ) 40,003,723 Agency mortgage-backed securities 20,751,331 7,757 (472,293 ) 20,286,795 Held-to-maturity fixed securities: Certificates of deposits 7,126,000 — — 7,126,000 Total fixed maturities $ 85,428,588 $ 74,248 $ (1,466,699 ) $ 84,036,137
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: June 30 December 31 2019 2018 Gross unrealized gains on fixed maturities $ 1,134,523 $ 74,248 Gross unrealized losses on fixed maturities (71,248 ) (1,466,699 ) Net unrealized gains (losses) on fixed maturities 1,063,275 (1,392,451 ) Deferred federal tax benefit (expense) (223,288 ) 292,415 Net unrealized gains (losses), net of deferred income taxes $ 839,987 $ (1,100,036 )
Components of investments in unrealized loss position for continiuos period of time	A summary of estimated fair value, gross unrealized losses, and number of securities 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 Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities June 30, 2019 U.S. treasury securities $ — $ — — $ 3,486,173 $ (10,125 ) 3 Corporate securities — — — 3,513,044 (6,191 ) 5 Agency mortgage-backed securities — — — 13,031,946 (54,932 ) 11 Total $ — $ — — $ 20,031,163 $ (71,248 ) 19 Less than 12 Months 12 Months or Longer Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities December 31, 2018 U.S. treasury securities $ 1,760,491 $ (20,181 ) 2 $ 8,496,069 $ (123,101 ) 6 Corporate securities 10,878,381 (272,515 ) 17 21,189,487 (578,609 ) 27 Agency mortgage-backed securities — — — 17,034,086 (472,293 ) 15 Total $ 12,638,872 $ (292,696 ) 19 $ 46,719,642 $ (1,174,003 ) 48
Summary of state held deposits	The following securities from three 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 insurance in California and for admission to transact insurance business in the state of Nevada. June 30 December 31 2019 2018 Certificates of deposit $ 200,000 $ 200,000 Short-term investments 200,000 200,000 Total state held deposits $ 400,000 $ 400,000
Investment in short term assets	Short-term investments have an initial maturity of one year or less and consist of the following: June 30 December 31 2019 2018 U.S. treasury bills $ — $ 4,490,954 Certificate of deposit 200,000 200,000 Total short-term investments $ 200,000 $ 4,690,954

Unpaid Losses and Loss Adjust_2

Unpaid Losses and Loss Adjustment Expenses (Tables)	6 Months Ended
	Jun. 30, 2019
Unpaid Losses And Loss Adjustment Expenses
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: Six Months Ended June 30 2019 2018 Reserve for unpaid losses and loss adjustment expenses at January 1 – gross of reinsurance $ 51,657,155 $ 49,076,991 Less reinsurance recoverable on unpaid losses and loss adjustment expenses 9,531,602 8,393,550 Reserve for unpaid losses and loss adjustment expenses at January 1 – net of reinsurance 42,125,553 40,683,441 Incurred losses and loss adjustment expenses: Provision for insured events of current year 9,685,514 10,661,378 Development of insured events of prior years 527,880 2,069,582 Total incurred losses and loss adjustment expenses 10,213,394 12,730,960 Loss and loss adjustment expense payments: Attributable to insured events of the current year 2,670,068 2,819,187 Attributable to insured events of prior years 10,978,401 9,333,811 Total payments 13,648,469 12,152,998 Reserve for unpaid losses and loss adjustment expenses at June 30 – net of reinsurance 38,690,478 41,261,403 Reinsurance recoverable on unpaid losses and loss adjustment expenses 11,139,312 8,804,650 Reserve for unpaid losses and loss adjustment expenses at June 30 – gross of reinsurance $ 49,829,790 $ 50,066,053

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Notes to Financial Statements
Income (loss) per share - diluted	$ (0.05)		$ 0.03		$ (0.18)	$ (0.38)
Income (loss) per share - basic	$ (.05)		$ .03		$ (.18)	$ (.38)
Net income (loss)	$ (276,677)	$ (671,074)	$ 168,297	$ (2,207,251)	$ (947,751)	$ (2,038,955)
Weighted average shares outstanding - diluted	5,306,938		5,307,133		5,307,021	5,307,133
Weighted average shares outstanding - basic	5,306,938		5,307,133		5,307,021	5,307,133

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Property And Equipment Table Abstract
Office building and leasehold improvements	$ 8,398,275	$ 8,398,275
Furniture, fixtures, and equipment	2,081,157	2,063,549
Accumulated depreciation and amortization	(3,321,610)	(3,051,505)
Land located in Calabasas California	1,787,485	1,787,485
Computer software	363,016	363,016
Computer software under development	601,634	131,505
Net property and equipment	$ 9,909,957	$ 9,692,325

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Fair Value of Invested Assets (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Fixed maturity investments available for sale:
U.S. treasury securities	$ 15,198,840	$ 16,619,619
Corporate securities	42,276,974	40,003,723
Agency mortgage-backed securities	23,794,898	20,286,795
Short-term investments, at fair value	200,000	4,690,954
Total financial instruments at fair value	81,470,712	81,601,091
Level 1
Fixed maturity investments available for sale:
U.S. treasury securities	15,198,840	16,619,619
Corporate securities	0	0
Agency mortgage-backed securities	0	0
Short-term investments, at fair value	200,000	4,690,954
Total financial instruments at fair value	15,398,840	21,310,573
Level 2
Fixed maturity investments available for sale:
U.S. treasury securities	0	0
Corporate securities	42,276,974	40,003,723
Agency mortgage-backed securities	23,794,898	20,286,795
Short-term investments, at fair value	0	0
Total financial instruments at fair value	66,071,872	60,290,518
Level 3
Fixed maturity investments available for sale:
U.S. treasury securities	0	0
Corporate securities	0	0
Agency mortgage-backed securities	0	0
Short-term investments, at fair value	0	$ 0
Total financial instruments at fair value	$ 0

Investments - Investment Income

Investments - Investment Income And Realized Losses (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Notes to Financial Statements
Investment income fixed maturities	$ 550,841	$ 469,500	$ 1,094,536	$ 931,667
Investment income short-term investments	9,906	11,642	36,467	19,588
Gross investment income	560,747	481,142	1,131,003	951,255
Investment expense	(30,000)	(28,536)	(67,619)	(53,851)
Investment income net of expenses	$ 530,747	$ 452,606	$ 1,063,384	$ 897,404

Investments - Fixed Maturities

Investments - Fixed Maturities by Categories (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Amortized cost, fixed maturities, available for sale	$ 80,207,437	$ 78,302,588
Estimated fair value, fixed maturities, available for sale	81,270,712	76,910,137
Amortized cost, fixed maturities, held to maturity	4,782,000	7,126,000
Estimated fair value, fixed maturities, held to maturity	4,782,000	7,126,000
U.S. treasury securities
Amortized cost, fixed maturities, available for sale	15,076,613	16,746,832
Gross unrealized gains, fixed maturities, available for sale	132,352	16,069
Gross unrealized losses, fixed maturities, available for sale	10,125	143,282
Estimated fair value, fixed maturities, available for sale	15,198,840	16,619,619
Corporate securities
Amortized cost, fixed maturities, available for sale	41,465,815	40,804,425
Gross unrealized gains, fixed maturities, available for sale	817,350	50,422
Gross unrealized losses, fixed maturities, available for sale	6,191	851,124
Estimated fair value, fixed maturities, available for sale	42,276,974	40,003,723
Agency mortgage backed securities
Amortized cost, fixed maturities, available for sale	23,665,009	20,751,331
Gross unrealized gains, fixed maturities, available for sale	184,821	7,757
Gross unrealized losses, fixed maturities, available for sale	54,932	472,293
Estimated fair value, fixed maturities, available for sale	23,794,898	20,286,795
Certificates of deposit
Amortized cost, fixed maturities, held to maturity	4,782,000	7,126,000
Gross unrealized gains, fixed maturities, held to maturity	0	0
Gross unrealized losses, fixed maturities, held to maturity	0	0
Estimated fair value, fixed maturities, held to maturity	4,782,000	7,126,000
Total fixed maturities
Fixed maturities, at amortized cost	84,989,437	85,428,588
Gross unrealized gains, fixed maturities	1,134,523	74,248
Gross unrealized losses, fixed maturities	71,248	1,466,699
Fixed maturities, at estimated fair value	$ 86,052,712	$ 84,036,137

Investments - Unrealized Gains

Investments - Unrealized Gains (Losses) on Investments in Fixed Maturities (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Notes to Financial Statements
Gross unrealized gains on fixed maturities	$ 1,134,523	$ 74,248
Gross unrealized losses on fixed maturities	(71,248)	(1,466,699)
Net unrealized gains (losses) on fixed maturities	1,063,275	(1,392,451)
Deferred federal tax benefit (expense)	(223,288)	292,415
Net unrealized gains (losses), net of deferred income taxes	$ 839,987	$ (1,100,036)

Investments - Securities in Unr

Investments - Securities in Unrealized Loss Position (Details)	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
U.S. treasury securities
Fair value, less than 12 months	$ 0	$ 1,760,491
Fair value, 12 months or longer	3,486,173	8,496,069
Gross unrealized losses, less than 12 months	0	20,181
Gross unrealized losses, 12 months or longer	$ 10,125	$ 123,101
Number of securities in unrealized loss positions for less than 12 months	0	2
Number of securities in unrealized loss positions for 12 months or longer	3	6
Corporate securities
Fair value, less than 12 months	$ 0	$ 10,878,381
Fair value, 12 months or longer	3,513,044	21,189,487
Gross unrealized losses, less than 12 months	0	272,515
Gross unrealized losses, 12 months or longer	$ 6,191	$ 578,609
Number of securities in unrealized loss positions for less than 12 months	0	17
Number of securities in unrealized loss positions for 12 months or longer	5	27
Agency mortgage backed securities
Fair value, less than 12 months	$ 0	$ 0
Fair value, 12 months or longer	13,031,946	17,034,086
Gross unrealized losses, less than 12 months	0	0
Gross unrealized losses, 12 months or longer	$ 54,932	$ 472,293
Number of securities in unrealized loss positions for less than 12 months	0	0
Number of securities in unrealized loss positions for 12 months or longer	11	15
Total fixed maturities
Fair value, less than 12 months	$ 0	$ 12,638,872
Fair value, 12 months or longer	20,031,163	46,719,642
Gross unrealized losses, less than 12 months	0	292,696
Gross unrealized losses, 12 months or longer	$ 71,248	$ 1,174,003
Number of securities in unrealized loss positions for less than 12 months	0	19
Number of securities in unrealized loss positions for 12 months or longer	19	48

Investments - State Held Deposi

Investments - State Held Deposits (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Notes to Financial Statements
Short-term investments held by state	$ 200,000	$ 200,000
Certificates of deposit held by states	200,000	200,000
State held deposits	$ 400,000	$ 400,000

Investments - Short term invesm

Investments - Short term invesmtments (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Notes to Financial Statements
Short-term U.S. treasury bills	$ 0	$ 4,490,954
Certificates of deposit	200,000	200,000
Total short-term investments	$ 200,000	$ 4,690,954

Unpaid Losses And Loss Adjust_3

Unpaid Losses And Loss Adjustment Expenses (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Dec. 31, 2017
Insurance Loss Reserves [Abstract]
Gross reserves	$ 49,829,790	$ 50,066,053	$ 49,829,790	$ 50,066,053	$ 51,657,155	$ 49,076,991
Reinsurance recoverable on unpaid losses and loss adjustment expenses	11,139,312	8,804,650	11,139,312	8,804,650	9,531,602	8,393,550
Net reserves	38,690,478	41,261,403	38,690,478	41,261,403	$ 42,125,553	$ 40,683,441
Incurred losses and loss adjustment expenses
Current accident year			9,685,514	10,661,378
Prior accident years			527,880	2,069,582
Incurred losses and loss adjustment expenses	$ 5,058,951	$ 4,929,203	10,213,394	12,730,960
Paid losses and loss adjustment expenses
Current accident year			2,670,068	2,819,187
Prior accident years			10,978,401	9,333,811
Total payment losses and loss adjustment expenses			$ 13,648,469	$ 12,152,998

Repurchase of Common Stock - _2

Repurchase of Common Stock - Effects on Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Notes to Financial Statements
Cost of common stock repurchase	$ (2,121)	$ 0	$ (2,121)	$ 0
Share repurchase allocated to paid in capital	(175)	0	(175)	0
Share repurchase allocated to retained earnings	$ (1,946)	$ 0	$ (1,946)	$ 0
Shares repurchased and retired during period - shares	356	0	356	0
Repurchase of common stock previously authorized			500000
Stock repurchase authority remaining	188,269		188,269		188,625

Property and Equipment (Detai_2

Property and Equipment (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)
Property And Equipment Details Abstract
Square footage of building	46,884		46,884
Building square footage leased to non-alliliates	5,092		5,092
Building square footage available for lease	9,389		9,389
Depreciation and amortization	$ 135,078	$ 141,516	$ 270,105	$ 281,717
Calabasas building operating expenses including depreciation	198,507	186,205	355,296	374,109
Office building revenue from leases from non-affiliates	$ 40,158	$ 89,211	$ 82,388	$ 175,117

Investments (Details Narrative)

Investments (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Notes to Financial Statements
Brokered certificates of deposit	$ 4,382,000		$ 4,382,000		$ 6,726,000
Statutory deposits number of banks	3		3		4
Realized investment gains (losses)	$ (4,512)	$ 137	$ (12,661)	$ 137
Sold securities - amortized cost	$ 2,498,104		$ 2,997,098
Sold securities - number	2		3
Called securities - number	1	2	1	2