Unico American (UNAM) 10-Q 15 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 15, 2020
Document And Entity Information
Entity Registrant Name	UNICO AMERICAN CORP
Entity File Number	000-03978
Entity Central Index Key	0000100716
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
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		5,305,742
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity Shell Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Available-for-sale:
Fixed maturities, at fair value (amortized cost: $81,814,388 at March 31, 2020, and $82,002,411 at December 31, 2019)	$ 82,931,949	$ 83,499,710
Held-to-maturity:
Fixed maturities, at amortized cost (fair value: $798,000 at March 31, 2020, and $798,000 at December 31, 2019)	798,000	798,000
Equity securities, at fair value (cost: $502,484 at March 31, 2020, and $0 at December 31, 2019)	457,684	0
Short-term investments, at fair value	2,198,017	2,196,815
Total Investments	86,385,650	86,494,525
Cash and cash equivalents	5,276,025	5,781,639
Accrued investment income	503,388	397,302
Receivable, net	3,986,844	4,019,437
Reinsurance Recoverable:
Paid losses and loss adjustment expenses	365,668	685,841
Unpaid losses and loss adjustment expenses	15,399,752	14,725,855
Deferred policy acquisition costs	3,687,979	3,619,594
Property and equipment (net)	10,223,162	10,226,595
Deferred income taxes	4,106,849	3,925,432
Other assets	468,458	430,305
Total Assets	130,403,775	130,306,525
LIABILITIES
Unpaid losses and loss adjustment expenses	56,139,598	55,066,480
Unearned premium	18,107,398	17,810,337
Advance premium and premium deposits	345,027	219,083
Accrued expenses and other liabilities	2,081,486	2,130,300
Total Liabilities	76,673,509	75,226,200
STOCKHOLDERS' EQUITY
Common stock, no par, authorized 10,000,000 shares; 5,305,742 and 5,306,720 shares issued and outstanding at March 31, 2020, and December 31, 2019	3,772,189	3,772,669
Accumulated other comprehensive loss	882,873	1,182,866
Retained earnings	49,075,204	50,124,790
Total Stockholders Equity	53,730,266	55,080,325
Total Liabilities and Stockholders' Equity	$ 130,403,775	$ 130,306,525

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Consolidated Balance Sheets Parenthetical Abstract
Fixed maturities, available for sale, amortized cost	$ 81,814,388	$ 82,002,411
Fixed maturities, held to maturity, fair value	798,000	798,000
Equity securities, cost	$ 502,484	$ 0
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,305,742	5,306,720
Common stock, shares outstanding	5,305,742	5,306,720

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
REVENUES
Net premium earned	$ 6,911,134	$ 6,264,150
Investment income	520,692	532,630
Net realized investments gains (losses)	1,114	(8,149)
Net unrealized investments losses on equity securities	(44,800)	0
Other income (loss)	80,937	(260,700)
Total Insurance Company Operation	7,469,077	6,527,931
Gross commissions and fees	469,069	547,445
Investment income	2	7
Finance fees earned	67,019	49,373
Other income	14	10,718
Total Revenues	8,005,181	7,135,474
EXPENSES
Losses and loss adjustment expenses	5,877,385	5,154,443
Policy acquisition costs	1,144,425	1,086,713
Salaries and employee benefits	1,122,499	1,027,849
Commissions to agents/brokers	25,955	50,121
Other operating expenses	980,415	628,080
Total Expenses	9,150,679	7,947,206
Loss Before Income Taxes	(1,145,498)	(811,732)
Income Tax Benefit	101,672	140,658
Net Loss	$ (1,043,826)	$ (671,074)
Basic
Loss per share	$ (0.20)	$ (0.13)
Weighted average shares	5,306,720	5,307,103
Diluted
Loss per share	$ (0.20)	$ (0.13)
Weighted average shares	5,306,720	5,307,103

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements Of Comprehensive Income
Net Loss	$ (1,043,826)	$ (671,074)
Other Changes in Comprehensive Income (Loss):
Unrealized gains (losses) on securities classified as available-for-sale arising during the period, net of income tax	(299,993)	975,885
Comprehensive Income (Loss)	$ (1,343,819)	$ 304,811

Shareholders Equity

Shareholders Equity - USD ($)	Common Stock	Comprehensive Income / Loss	Retained Earnings / Accumulated Deficit	Total
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, 2019	$ 3,772,669	1,182,866	50,124,790	55,080,325
Beginning Balance, Shares at Dec. 31, 2019	5,306,720
Shares Repurchased, Value	$ 480		5,760	6,240
Shares Repurchased, Shares	978
Change in Comprehensive Income, net of Deferred Income Tax		(299,993)		(299,993)
Net Income (Loss)			(1,043,826)	(1,043,826)
Ending Balance, Value at Mar. 31, 2020	$ 3,772,189	$ 882,873	$ 49,075,204	$ 53,730,266
Ending Balance, Shares at Mar. 31, 2020	5,305,742

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flows from Operating Activities:
Net Loss	$ (1,043,826)	$ (671,074)
Adjustments to reconcile net loss to net cash from operations
Depreciation and amortization	188,085	135,027
Bond amortization, net	(6,711)	6,880
Bad debt expense	(25)	2,739
Net realized investment losses (gain)	(1,114)	8,149
Net unrealized investment losses on equity securities	44,800	0
Changes in assets and liabilities:
Net receivables and accrued investment income	(73,468)	(456,919)
Reinsurance recoverable	(353,724)	(3,136,056)
Deferred policy acquisition costs	(68,385)	(81,052)
Other assets	(38,153)	351,282
Unpaid losses and loss adjustment expenses	1,073,118	(324,284)
Unearned premium	297,061	561,777
Advance premium and premium deposits	125,944	108,521
Accrued expenses and other liabilities	(48,814)	(78,202)
Income taxes current/deferred	(101,672)	(149,458)
Net Cash Used by Operating Activities	(6,884)	(3,722,670)
Cash Flows from Investing Activities:
Purchase of fixed maturity investments	(1,735,823)	(3,573,566)
Purchase of equity securities	(502,484)	0
Proceeds from maturity of fixed maturity investments	1,328,128	1,779,271
Proceeds from sale or call of fixed maturity investments	603,543	482,696
Net (increase) decrease in short-term investments	(1,202)	3,994,162
Additions to property and equipment	(184,652)	(231,521)
Net Cash (Used by) Provided by Investing Activities	(492,490)	2,451,042
Cash Flows from Financing Activities:
Repurchase of common stock	(6,240)	0
Net Cash Used by Financing Activities	(6,240)	0
Net decrease in cash and cash equivalents	(505,614)	(1,271,628)
Cash and cash equivalents beginning of period	5,781,639	4,917,762
Cash and cash equivalents end of period	5,276,025	3,646,134
Cash paid during the period for:
Interest	0	0
Income taxes	$ 8,800	$ 8,800

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
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 months ended March 31, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Quarterly condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2019 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: Investment securities, excluding long-term certificates of deposit, and short-term investments – 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	3 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Repurchase of Common Stock - Effects on Stockholders' Equity	NOTE 2 – REPURCHASE OF COMMON STOCK – EFFECTS ON STOCKHOLDERS’ EQUITY On December 19, 2008, the Board of Directors authorized a stock repurchase program to acquire from time to time up to an aggregate of 500,000 shares of the Company’s common stock. This program has no expiration date and may be terminated by the Board of Directors at any time. As of March 31, 2020, and December 31, 2019, the Company had remaining authority under the 2008 program to repurchase up to an aggregate of 187,264 and 188,242 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 978 shares of stock during the three months ended March 31, 2020, in unsolicited transactions at a cost of $6,240 of which $480 was allocated to capital and $5,760 was allocated to retained earnings. The Company did not repurchase any stock during the three months ended March 31, 2019. The Company has retired or will retire all stock repurchased.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Earnings Per Share	NOTE 3 – LOSS PER SHARE The following table represents the reconciliation of the Company's basic loss per share and diluted loss per share computations reported on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Basic Loss Per Share Net loss $ (1,043,826 ) $ (671,074 ) Weighted average shares outstanding 5,306,720 5,307,103 Basic loss per share $ (0.20 ) $ (0.13 ) Diluted Loss per Share Net loss $ (1,043,826 ) $ (671,074 ) Weighted average shares outstanding 5,306,720 5,307,103 Diluted shares outstanding 5,306,720 5,307,103 Diluted loss per share $ (0.20 ) $ (0.13 ) Basic earnings per share exclude the impact of common share equivalents and are based upon the weighted average common shares outstanding. Diluted earnings per share utilize the average market price per share when applying the treasury stock method in determining common share dilution. When outstanding stock options are dilutive, they are treated as common share equivalents for purposes of computing diluted earnings per share and represent the difference between basic and diluted weighted average shares outstanding. In loss periods, stock options are excluded from the calculation of diluted loss per share, as the inclusion of stock options would have an anti-dilutive effect.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2020
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. In August, 2018, the FASB issued ASU 2018-13 “Fair Value Measurement”: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements for assets and liabilities measured at fair value. The amendments in this ASU require certain existing disclosure requirements to be modified or removed, and certain new disclosure requirements to be added. In addition, this ASU allows entities to exercise more discretion when considering fair value measurement disclosures. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. The Company adopted ASU 2018-13 effective January 1, 2020. The adoption of ASU 2018-13 did not have a material impact to the Company’s disclosures. Standards not yet adopted

Accounting For Income Taxes

Accounting For Income Taxes	3 Months Ended
	Mar. 31, 2020
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 2016 and California state income tax authorities for tax returns filed starting at taxable year 2015. There are no ongoing examinations of income tax returns by federal or state tax authorities. As of March 31, 2020, and December 31, 2019, the Company had no unrecognized tax benefits or liabilities and, therefore, had not accrued interest and penalties related to unrecognized tax benefits or liabilities. However, if interest and penalties would need to be accrued related to unrecognized tax benefits or liabilities, such amounts would be recognized as a component of federal income tax expense. As a California based insurance company, Crusader is obligated to pay a premium tax on gross premiums written in all states that Crusader is admitted. Premium taxes are deferred and amortized as the related premiums are earned. The premium tax is in lieu of state franchise taxes and is not included in the provision for state taxes.

Property and Equipment (Net of

Property and Equipment (Net of Accumulated Depreciation)	3 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Property and Equipment (Net of Accumulated Depreciation)	NOTE 6 – PROPERTY AND EQUIPMENT, NET Property and equipment consist of the following: March 31 December 31 2020 2019 Building and leasehold improvements located in Calabasas, California $ 8,411,541 $ 8,411,541 Furniture, fixtures, and equipment 2,120,078 2,110,653 Computer software 459,899 459,899 Accumulated depreciation and amortization (3,805,466 ) (3,617,381 ) Computer software under development 1,249,625 1,074,398 Land located in Calabasas, California 1,787,485 1,787,485 Property and equipment, net $ 10,223,162 $ 10,226,595 Depreciation on the Calabasas building, owned by Crusader, is computed using the straight line method over 39 years. Depreciation on furniture, fixtures, and equipment in the Calabasas building is computed using the straight line method over 3 to 15 years. Amortization of leasehold improvements in the Calabasas building is being computed using the shorter of the useful life of the leasehold improvements or the remaining years of the lease. Depreciation and amortization expense on all property and equipment for the three months ended March 31, 2020 and 2019 was $188,085 and $135,027, respectively. For the three months ended March 31, 2020 and 2019, the Calabasas building has generated rental revenue from non-affiliated tenants in the amount of $53,290 and $42,230, respectively, which is included in “Other income” from insurance company operation in the Company’s Condensed Consolidated Statements of Operations. For the three months ended March 31, 2020 and 2019, the Calabasas building incurred operating expenses (including depreciation) in the amount of $190,097 and $156,789, 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 March 31, 2020, 6,942 square feet of the Calabasas building was leased to non-affiliated entities and 7,539 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	3 Months Ended
	Mar. 31, 2020
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 financial instruments and their estimated fair values, which are measured on a recurring basis, and are allocated among the three levels within the fair value hierarchy as of March 31, 2020, and December 31, 2019: Level 1 Level 2 Level 3 Total March 31, 2020 Financial instruments: Available-for-sale fixed maturities: U.S. Treasury securities $ 14,902,906 $ — $ — $ 14,902,906 Corporate securities — 43,175,098 — 43,175,098 Agency mortgage backed securities — 24,853,945 — 24,853,945 Equity securities 457,684 — — 457,684 Short-term investments 2,198,017 — — 2,198,017 Total financial instruments at fair value $ 17,558,607 $ 68,029,043 $ — $ 85,587,650 Level 1 Level 2 Level 3 Total December 31, 2019 Financial instruments: Available-for-sale fixed maturities: U.S. Treasury securities $ 15,235,332 $ — $ — $ 15,235,332 Corporate securities — 43,029,333 — 43,029,333 Agency mortgage backed securities — 25,235,045 — 25,235,045 Short-term investments 2,196,815 — — 2,196,815 Total financial instruments at fair value $ 17,432,147 $ 68,264,378 $ — $ 85,696,525 Fair value measurements are not adjusted for transaction costs. The Company recognizes transfers between levels at either the actual date of the event or a change in circumstances that caused the transfer. The Company did not have any transfers between Levels 1, 2, and 3 of the fair value hierarchy during the three months ended March 31, 2020 and 2019. As a result of the spread of the recent coronavirus outbreak, economic uncertainties have arisen which are likely to impact the fair value of investments, day to day administration of the business and premium volume. While the Company does not believe it is exposed to substantial risk from coronavirus related claims under the insurance policies written by Crusader, it is likely that the fair value of its investment portfolio will be adversely affected by the severe disruption and volatility in the capital markets, as well as general economic conditions as a result of the coronavirus and governmental responses to the outbreak. The financial impact of these uncertainties is unknown at this time.

Investments

Investments	3 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Investments	NOTE 8 – INVESTMENTS A summary of investment income, net of investment expenses, is as follows: Three Months ended March 31 2020 2019 Fixed maturities $ 542,407 $ 543,695 Equity securities 1,442 — Short-term investments and cash equivalents 11,724 26,561 Gross investment income 555,573 570,256 Less investment expenses (34,879 ) (37,619 ) Net investment income 520,694 532,637 Net realized investment gains (losses) 1,114 (8,149 ) Net unrealized investment losses on equity securities (44,800 ) — Net investment income, realized investment gains (losses) and unrealized investment losses on equity securities $ 477,008 $ 524,488 The amortized cost and estimated fair values of investments in fixed maturities by category are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2020 Available-for-sale fixed maturities: U.S. Treasury securities $ 14,519,461 $ 383,445 $ — $ 14,902,906 Corporate securities 42,936,116 792,504 (553,522 ) 43,175,098 Agency mortgage-backed securities 24,358,811 668,201 (173,067 ) 24,853,945 Held-to-maturity fixed securities: Certificates of deposits 798,000 — — 798,000 Total fixed maturities $ 82,612,388 $ 1,844,150 $ (726,589 ) $ 83,729,949 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2019 Available-for-sale fixed maturities: U.S. Treasury securities $ 15,105,795 $ 130,564 $ (1,027 ) $ 15,235,332 Corporate securities 41,953,378 1,076,012 (57 ) 43,029,333 Agency mortgage-backed securities 24,943,238 293,757 (1,950 ) 25,235,045 Held-to-maturity fixed securities: Certificates of deposits 798,000 — — 798,000 Total fixed maturities $ 82,800,411 $ 1,500,333 $ (3,034 ) $ 84,297,710 A summary of the unrealized gains (losses) on investments in fixed maturities carried at fair value and the applicable deferred federal income taxes are shown below: March 31 December 31 2020 2019 Gross unrealized gains on fixed maturities $ 1,844,150 $ 1,500,333 Gross unrealized losses on fixed maturities (726,589 ) (3,034 ) Net unrealized gains on fixed maturities 1,117,561 1,497,299 Deferred federal tax expense (234,688 ) (314,433 ) Net unrealized gains, net of deferred income taxes $ 882,873 $ 1,182,866 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 March 31, 2020 Corporate securities 8,840,514 (553,522 ) 16 — — — Agency mortgage-backed securities 3,758,080 (173,067 ) 7 — — — Total $ 12,598,594 $ (726,589 ) 23 $ — $ — — 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, 2019 U.S. Treasury securities $ 1,996,562 $ (253 ) 1 $ 1,002,031 $ (775 ) 1 Corporate securities 999,818 (56 ) 1 — — — Agency mortgage-backed securities 750,058 (1,950 ) 2 — — — Total $ 3,746,438 $ (2,259 ) 4 $ 1,002,031 $ (775 ) 1 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. During the three months ended March 31, 2020, one fixed maturity corporate security experienced a significant decline in market value; the market and book value of that security at March 31, 2020, was $459,000 and $912,681, respectively. The unrealized losses on all securities as of March 31, 2020, and December 31, 2019, 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 one security prior to maturity during the three months ended March 31, 2020. This security had amortized cost of $601,316. The Company realized a net investment gain of $1,114 on this sale for the three months ended March 31, 2020. The Company sold one security prior to maturity during the three months ended March 31, 2019. This security had amortized cost of $498,994. The Company realized a net investment loss of $8,149 on this sale for the three months ended March 31, 2019. 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 started investing in common stock equity securities during the three months ended March 31, 2020. The Company’s common stock allocation is intended to enhance the return of and provide diversification for the total investment portfolio. At March 31, 2020, less than 1% of the total investment portfolio at fair value was held in equity securities. A summary of equity securities is shown below: March 31 December 31 2020 2019 Cost $ 502,484 $ — Unrealized loss (44,800 ) — Fair market value of equity securities $ 457,684 $ — The primary cause for the decrease in fair value of the Company’s equity securities portfolio for the three months ended March 31, 2020 was overall decline in equity markets during the period. The Company’s common stock allocation is intended to enhance the return of and provide diversification for the total portfolio. At March 31, 2020, less than 1% of the total investment portfolio at fair value was held in equity securities. The Company’s investment in certificates of deposit included $598,000 of brokered certificates of deposit as of March 31, 2020 and December 2019. All of the Company’s 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. 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 business in California and for admission to transact insurance business in the state of Nevada. March 31 December 31 2020 2019 Certificates of deposit $ 200,000 $ 200,000 Short-term investments 200,000 200,000 Total state held deposits $ 400,000 $ 400,000 All the Company’s brokered and non-brokered certificates of deposit are within the FDIC insured permissible limits. Due to nature of the Company’s business, certain bank accounts may exceed FDIC insured permissible limits. Short-term investments have an initial maturity of one year or less and consist of the following: March 31 December 31 2020 2019 U.S. Treasury bills $ 1,998,017 $ 1,996,815 Certificates of deposit 200,000 200,000 Total short-term investments $ 2,198,017 $ 2,196,815

Unpaid Losses and Loss Adjustme

Unpaid Losses and Loss Adjustment Expenses	3 Months Ended
	Mar. 31, 2020
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: Three Months Ended March 31 2020 2019 Reserve for unpaid losses and loss adjustment expenses at January 1 – gross of reinsurance $ 55,066,480 $ 51,657,155 Less reinsurance recoverable on unpaid losses and loss adjustment expenses 14,725,855 9,531,602 Reserve for unpaid losses and loss adjustment expenses at January 1 – net of reinsurance 40,340,625 42,125,553 Incurred losses and loss adjustment expenses: Provision for insured events of current year 5,161,176 4,550,888 Development of insured events of prior years 716,209 603,555 Total incurred losses and loss adjustment expenses 5,877,385 5,154,443 Loss and loss adjustment expense payments: Attributable to insured events of the current year 1,444,009 1,158,426 Attributable to insured events of prior years 4,034,155 6,468,019 Total payments 5,478,164 7,626,445 Reserve for unpaid losses and loss adjustment expenses at March 31 – net of reinsurance 40,739,846 39,653,551 Reinsurance recoverable on unpaid losses and loss adjustment expenses 15,399,752 11,679,320 Reserve for unpaid losses and loss adjustment expenses at March 31 – gross of reinsurance $ 56,139,598 $ 51,332,871 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	3 Months Ended
	Mar. 31, 2020
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 Crusader. 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.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Notes to Financial Statements
Subsequent Events	NOTE 11 – SUBSEQUENT EVENTS The Company evaluated its March 31, 2020, consolidated financial statements for subsequent events through the date the consolidated financial statements were issued. As a result of the spread of the recent coronavirus outbreak, economic uncertainties have arisen which impacted and may continue to impact the fair value of investments, day to day administration of the Company’s business and the Company’s revenue. The effects of that outbreak were a major contributor to the decrease in fair value of the Company’s fixed income and equity investments during the three months ended March 31, 2020, due primarily to the volatility and economic uncertainty caused by the outbreak, affecting various sectors of the Company’s investment portfolio. Although the outbreak did not have a significant impact on Crusader’s direct written premium during the three months ended March 31, 2020, it experienced, in the second half of March 2020, a decrease in new business submissions and renewals, particularly in its Bar/Taverns market sector niche, as a result of government regulations, such as shelter-in-place orders, which the Company believes may adversely impact its direct written premium in future periods. The Company’s financial results for the three months ended March 31, 2020, do not fully reflect the potential adverse impacts that the coronavirus outbreak has had or will have on its business as the Company’s business first experienced the impact of the resulting economic slowdown at the end of the three months ended March 31, 2020. While the Company does not believe it is exposed to substantial risk from coronavirus related claims under the insurance policies written by Crusader, it is possible that the fair value of its investment portfolio will be further adversely affected by the severe disruption and volatility in the capital markets, as well as general economic conditions as a result of the coronavirus and governmental responses to the outbreak. Additionally, related disruptions to the business of the Company’s subsidiaries and their customers could further adversely affect the demand for the Company’s subsidiaries’ insurance products and otherwise adversely impact the Company’s results of operations or financial condition. The financial impact of these uncertainties is unknown at this time but could result in a material adverse effect on the Company’s business, results of operations, financial condition and prospects. On April 28, 2020, Crusader declared a cash dividend of $2,000,000 to Unico, its parent and sole shareholder, to be paid to Unico on or before May 22, 2020. This dividend is intended to be used primarily for general corporate purposes. Based on Crusader’s statutory surplus for the year ended December 31, 2019, the maximum dividend that could be made by Crusader to Unico without prior regulatory approval in 2020 is $ 4,649,896.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
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 months ended March 31, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Quarterly condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2019 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: Investment securities, excluding long-term certificates of deposit, and short-term investments – 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 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 months ended March 31, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Quarterly condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2019 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: Investment securities, excluding long-term certificates of deposit, and short-term investments – 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)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share Tables Abstract
Basic and diluted earnings per share calculation data	The following table represents the reconciliation of the Company's basic loss per share and diluted loss per share computations reported on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019: Three Months Ended March 31 2020 2019 Basic Loss Per Share Net loss $ (1,043,826 ) $ (671,074 ) Weighted average shares outstanding 5,306,720 5,307,103 Basic loss per share $ (0.20 ) $ (0.13 ) Diluted Loss per Share Net loss $ (1,043,826 ) $ (671,074 ) Weighted average shares outstanding 5,306,720 5,307,103 Diluted shares outstanding 5,306,720 5,307,103 Diluted loss per share $ (0.20 ) $ (0.13 )

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2020
Property And Equipment
Property and Equipment	Property and equipment consist of the following: March 31 December 31 2020 2019 Building and leasehold improvements located in Calabasas, California $ 8,411,541 $ 8,411,541 Furniture, fixtures, and equipment 2,120,078 2,110,653 Computer software 459,899 459,899 Accumulated depreciation and amortization (3,805,466 ) (3,617,381 ) Computer software under development 1,249,625 1,074,398 Land located in Calabasas, California 1,787,485 1,787,485 Property and equipment, net $ 10,223,162 $ 10,226,595

Fair Value Of Financial Instr_2

Fair Value Of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Of Financial Instruments
Fair value of financial instruments	The following table presents information about the Company’s financial instruments and their estimated fair values, which are measured on a recurring basis, and are allocated among the three levels within the fair value hierarchy as of March 31, 2020, and December 31, 2019: Level 1 Level 2 Level 3 Total March 31, 2020 Financial instruments: Available-for-sale fixed maturities: U.S. Treasury securities $ 14,902,906 $ — $ — $ 14,902,906 Corporate securities — 43,175,098 — 43,175,098 Agency mortgage backed securities — 24,853,945 — 24,853,945 Equity securities 457,684 — — 457,684 Short-term investments 2,198,017 — — 2,198,017 Total financial instruments at fair value $ 17,558,607 $ 68,029,043 $ — $ 85,587,650 Level 1 Level 2 Level 3 Total December 31, 2019 Financial instruments: Available-for-sale fixed maturities: U.S. Treasury securities $ 15,235,332 $ — $ — $ 15,235,332 Corporate securities — 43,029,333 — 43,029,333 Agency mortgage backed securities — 25,235,045 — 25,235,045 Short-term investments 2,196,815 — — 2,196,815 Total financial instruments at fair value $ 17,432,147 $ 68,264,378 $ — $ 85,696,525

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2020
Investments Tables Abstract
Investment income	A summary of investment income, net of investment expenses, is as follows: Three Months ended March 31 2020 2019 Fixed maturities $ 542,407 $ 543,695 Equity securities 1,442 — Short-term investments and cash equivalents 11,724 26,561 Gross investment income 555,573 570,256 Less investment expenses (34,879 ) (37,619 ) Net investment income 520,694 532,637 Net realized investment gains (losses) 1,114 (8,149 ) Net unrealized investment losses on equity securities (44,800 ) — Net investment income, realized investment gains (losses) and unrealized investment losses on equity securities $ 477,008 $ 524,488
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 March 31, 2020 Available-for-sale fixed maturities: U.S. Treasury securities $ 14,519,461 $ 383,445 $ — $ 14,902,906 Corporate securities 42,936,116 792,504 (553,522 ) 43,175,098 Agency mortgage-backed securities 24,358,811 668,201 (173,067 ) 24,853,945 Held-to-maturity fixed securities: Certificates of deposits 798,000 — — 798,000 Total fixed maturities $ 82,612,388 $ 1,844,150 $ (726,589 ) $ 83,729,949 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2019 Available-for-sale fixed maturities: U.S. Treasury securities $ 15,105,795 $ 130,564 $ (1,027 ) $ 15,235,332 Corporate securities 41,953,378 1,076,012 (57 ) 43,029,333 Agency mortgage-backed securities 24,943,238 293,757 (1,950 ) 25,235,045 Held-to-maturity fixed securities: Certificates of deposits 798,000 — — 798,000 Total fixed maturities $ 82,800,411 $ 1,500,333 $ (3,034 ) $ 84,297,710
Unrealized gains (losses) on investments	A summary of the unrealized gains (losses) on investments in fixed maturities carried at fair value and the applicable deferred federal income taxes are shown below: March 31 December 31 2020 2019 Gross unrealized gains on fixed maturities $ 1,844,150 $ 1,500,333 Gross unrealized losses on fixed maturities (726,589 ) (3,034 ) Net unrealized gains on fixed maturities 1,117,561 1,497,299 Deferred federal tax expense (234,688 ) (314,433 ) Net unrealized gains, net of deferred income taxes $ 882,873 $ 1,182,866
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 March 31, 2020 Corporate securities 8,840,514 (553,522 ) 16 — — — Agency mortgage-backed securities 3,758,080 (173,067 ) 7 — — — Total $ 12,598,594 $ (726,589 ) 23 $ — $ — — 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, 2019 U.S. Treasury securities $ 1,996,562 $ (253 ) 1 $ 1,002,031 $ (775 ) 1 Corporate securities 999,818 (56 ) 1 — — — Agency mortgage-backed securities 750,058 (1,950 ) 2 — — — Total $ 3,746,438 $ (2,259 ) 4 $ 1,002,031 $ (775 ) 1
Summary of equity investments	The Company started investing in common stock equity securities during the three months ended March 31, 2020. The Company’s common stock allocation is intended to enhance the return of and provide diversification for the total investment portfolio. At March 31, 2020, less than 1% of the total investment portfolio at fair value was held in equity securities. A summary of equity securities is shown below: March 31 December 31 2020 2019 Cost $ 502,484 $ — Unrealized loss (44,800 ) — Fair market value of equity securities $ 457,684 $ —
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 business in California and for admission to transact insurance business in the state of Nevada. March 31 December 31 2020 2019 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: March 31 December 31 2020 2019 U.S. Treasury bills $ 1,998,017 $ 1,996,815 Certificates of deposit 200,000 200,000 Total short-term investments $ 2,198,017 $ 2,196,815

Unpaid Losses and Loss Adjust_2

Unpaid Losses and Loss Adjustment Expenses (Tables)	3 Months Ended
	Mar. 31, 2020
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: Three Months Ended March 31 2020 2019 Reserve for unpaid losses and loss adjustment expenses at January 1 – gross of reinsurance $ 55,066,480 $ 51,657,155 Less reinsurance recoverable on unpaid losses and loss adjustment expenses 14,725,855 9,531,602 Reserve for unpaid losses and loss adjustment expenses at January 1 – net of reinsurance 40,340,625 42,125,553 Incurred losses and loss adjustment expenses: Provision for insured events of current year 5,161,176 4,550,888 Development of insured events of prior years 716,209 603,555 Total incurred losses and loss adjustment expenses 5,877,385 5,154,443 Loss and loss adjustment expense payments: Attributable to insured events of the current year 1,444,009 1,158,426 Attributable to insured events of prior years 4,034,155 6,468,019 Total payments 5,478,164 7,626,445 Reserve for unpaid losses and loss adjustment expenses at March 31 – net of reinsurance 40,739,846 39,653,551 Reinsurance recoverable on unpaid losses and loss adjustment expenses 15,399,752 11,679,320 Reserve for unpaid losses and loss adjustment expenses at March 31 – gross of reinsurance $ 56,139,598 $ 51,332,871

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Notes to Financial Statements
Loss per share - diluted	$ (0.20)	$ (0.13)
Loss per share - basic	$ (0.20)	$ (0.13)
Net loss	$ (1,043,826)	$ (671,074)
Weighted average shares outstanding - diluted	5,306,720	5,307,103
Weighted average shares outstanding - basic	5,306,720	5,307,103

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Property And Equipment Table Abstract
Office building and leasehold improvements	$ 8,411,541	$ 8,411,541
Furniture, fixtures, and equipment	2,120,078	2,110,653
Accumulated depreciation and amortization	(3,805,466)	(3,617,381)
Land located in Calabasas California	1,787,485	1,787,485
Computer software	459,899	459,899
Computer software under development	1,249,625	1,074,398
Net property and equipment	$ 10,223,162	$ 10,226,595

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Fair Value of Invested Assets (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Fixed maturity investments available for sale:
U.S. treasury securities	$ 14,902,906	$ 15,235,332
Corporate securities	43,175,098	43,029,333
Agency mortgage-backed securities	24,853,945	25,235,045
Equity securities	457,684	0
Short-term investments, at fair value	2,198,017	2,196,815
Total financial instruments at fair value	85,587,650	85,696,525
Level 1
Fixed maturity investments available for sale:
U.S. treasury securities	14,902,906	15,235,332
Corporate securities	0	0
Agency mortgage-backed securities	0	0
Equity securities	457,684	0
Short-term investments, at fair value	2,198,017	2,196,815
Total financial instruments at fair value	17,558,607	17,432,147
Level 2
Fixed maturity investments available for sale:
U.S. treasury securities	0	0
Corporate securities	43,175,098	43,029,333
Agency mortgage-backed securities	24,853,945	25,235,045
Equity securities	0	0
Short-term investments, at fair value	0	0
Total financial instruments at fair value	68,029,043	68,264,378
Level 3
Fixed maturity investments available for sale:
U.S. treasury securities	0	0
Corporate securities	0	0
Agency mortgage-backed securities	0	0
Equity securities	0	0
Short-term investments, at fair value	0	0
Total financial instruments at fair value	$ 0	$ 0

Investments - Investment Income

Investments - Investment Income And Realized Losses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Notes to Financial Statements
Investment income fixed maturities	$ 542,407	$ 543,695
Investment income from equity securities	1,442	0
Investment income short-term investments	11,724	26,561
Gross investment income	555,573	570,256
Investment expense	34,879	37,619
Investment income net of expenses	520,694	532,637
Net realized investment gains (losses)	1,114	(8,149)
Net unrealized investment losses on equity securities	(44,800)	0
Net investment income, realized invesetment gains (losses), and unrealized investment losses on equity securities	$ 477,008	$ 524,488

Investments - Fixed Maturities

Investments - Fixed Maturities by Categories (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Amortized cost, fixed maturities, available for sale	$ 81,814,388	$ 82,002,411
Estimated fair value, fixed maturities, available for sale	82,931,949	83,499,710
Amortized cost, fixed maturities, held to maturity	798,000	798,000
Estimated fair value, fixed maturities, held to maturity	798,000	798,000
U.S. treasury securities
Amortized cost, fixed maturities, available for sale	14,519,461	15,105,795
Gross unrealized gains, fixed maturities, available for sale	383,445	130,564
Gross unrealized losses, fixed maturities, available for sale	0	1,027
Estimated fair value, fixed maturities, available for sale	14,902,906	15,235,332
Corporate securities
Amortized cost, fixed maturities, available for sale	42,936,116
Gross unrealized gains, fixed maturities, available for sale	792,504
Gross unrealized losses, fixed maturities, available for sale	553,522
Estimated fair value, fixed maturities, available for sale	43,175,098
Agency mortgage backed securities
Amortized cost, fixed maturities, available for sale	24,358,811	24,943,238
Gross unrealized gains, fixed maturities, available for sale	668,201	293,757
Gross unrealized losses, fixed maturities, available for sale	173,067	1,950
Estimated fair value, fixed maturities, available for sale	24,853,945	25,235,045
Certificates of deposit
Amortized cost, fixed maturities, held to maturity	798,000	798,000
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	798,000	798,000
Total fixed maturities
Fixed maturities, at amortized cost	82,612,388	82,800,411
Gross unrealized gains, fixed maturities	1,844,150	1,500,333
Gross unrealized losses, fixed maturities	726,589	3,034
Fixed maturities, at estimated fair value	$ 83,729,949	84,297,710
Corporate securities
Amortized cost, fixed maturities, available for sale		41,953,378
Gross unrealized gains, fixed maturities, available for sale		1,076,012
Gross unrealized losses, fixed maturities, available for sale		57
Estimated fair value, fixed maturities, available for sale		$ 43,029,333

Investments - Unrealized Gains

Investments - Unrealized Gains (Losses) on Investments in Fixed Maturities (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Notes to Financial Statements
Gross unrealized gains on fixed maturities	$ 1,844,150	$ 1,500,333
Gross unrealized losses on fixed maturities	(726,589)	(3,034)
Net unrealized losses on fixed maturities	1,117,561	1,497,299
Deferred federal tax expense	(234,688)	(314,433)
Net unrealized losses, net of deferred income taxes	$ 882,873	$ 1,182,866

Investments - Securities in Unr

Investments - Securities in Unrealized Loss Position (Details)	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Corporate securities
Fair value, less than 12 months	$ 8,840,514
Fair value, 12 months or longer	0
Gross unrealized losses, less than 12 months	553,522
Gross unrealized losses, 12 months or longer	$ 0
Number of securities in unrealized loss positions for less than 12 months	16
Number of securities in unrealized loss positions for 12 months or longer	0
Agency mortgage backed securities
Fair value, less than 12 months	$ 3,758,080	$ 750,058
Fair value, 12 months or longer	0	0
Gross unrealized losses, less than 12 months	173,067	1,950
Gross unrealized losses, 12 months or longer	$ 0	$ 0
Number of securities in unrealized loss positions for less than 12 months	7	2
Number of securities in unrealized loss positions for 12 months or longer	0	0
Total fixed maturities
Fair value, less than 12 months	$ 12,598,594	$ 3,746,438
Fair value, 12 months or longer	0	1,002,031
Gross unrealized losses, less than 12 months	726,589	2,259
Gross unrealized losses, 12 months or longer	$ 0	$ 775
Number of securities in unrealized loss positions for less than 12 months	23	4
Number of securities in unrealized loss positions for 12 months or longer	0	1
U.S. treasury securities
Fair value, less than 12 months		$ 1,996,562
Fair value, 12 months or longer		1,002,031
Gross unrealized losses, less than 12 months		253
Gross unrealized losses, 12 months or longer		$ 775
Number of securities in unrealized loss positions for less than 12 months		1
Number of securities in unrealized loss positions for 12 months or longer		1
Corporate securities
Fair value, less than 12 months		$ 999,818
Fair value, 12 months or longer		0
Gross unrealized losses, less than 12 months		56
Gross unrealized losses, 12 months or longer		$ 0
Number of securities in unrealized loss positions for less than 12 months		1
Number of securities in unrealized loss positions for 12 months or longer		0

Investments - Equity Securities

Investments - Equity Securities (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Notes to Financial Statements
Equity securities, cost	$ 502,484	$ 0
Unrealized loss	44,800	0
Equity securities, at fair value	$ 457,684	$ 0

Investments - State Held Deposi

Investments - State Held Deposits (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
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 ($)	Mar. 31, 2020	Dec. 31, 2019
Notes to Financial Statements
Short-term U.S. treasury bills	$ 1,998,017	$ 1,996,815
Certificates of deposit	200,000	200,000
Total short-term investments	$ 2,198,017	$ 2,196,815

Unpaid Losses And Loss Adjust_3

Unpaid Losses And Loss Adjustment Expenses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Insurance Loss Reserves [Abstract]
Gross reserves	$ 56,139,598	$ 51,332,871	$ 55,066,480	$ 51,657,155
Reinsurance recoverable on unpaid losses and loss adjustment expenses	15,399,752	11,679,320	14,725,855	9,531,602
Net reserves	40,739,846	39,653,551	$ 40,340,625	$ 42,125,553
Incurred losses and loss adjustment expenses
Current accident year	5,161,176	4,550,888
Prior accident years	716,209	603,555
Incurred losses and loss adjustment expenses	5,877,385	5,154,443
Paid losses and loss adjustment expenses
Current accident year	1,444,009	1,158,426
Prior accident years	4,034,155	6,468,019
Total payment losses and loss adjustment expenses	$ 5,478,164	$ 7,626,445

Repurchase of Common Stock - _2

Repurchase of Common Stock - Effects on Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Notes to Financial Statements
Cost of common stock repurchase	$ 6,240	$ 0
Share repurchase allocated to paid in capital	480	0
Share repurchase allocated to retained earnings	$ 5,760	$ 0
Shares repurchased and retired during period - shares	978	0
Repurchase of common stock previously authorized	500,000
Stock repurchase authority remaining	187,264		188,242

Property and Equipment (Detai_2

Property and Equipment (Details Narrative)	3 Months Ended
	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)
Property And Equipment Details Abstract
Square footage of building	46,884
Building square footage leased to non-alliliates	6,942
Building square footage available for lease	7,539
Depreciation and amortization	$ 188,085	$ 135,027
Calabasas building operating expenses including depreciation	190,097	156,789
Office building revenue from leases from non-affiliates	$ 53,290	$ 42,230

Investments (Details Narrative)

Investments (Details Narrative)	3 Months Ended
	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Notes to Financial Statements
Brokered certificates of deposit	$ 598,000		$ 598,000
Statutory deposits number of banks	3		3
Sold securities - amortized cost	$ 601,316	$ 498,994
Sold securities - realized gain (loss)	$ 1,114	$ (8,149)
Sold securities - number	1	1
Fixed maturity corporate security with significant decline in market value, market value	$ 459,000
Fixed maturity corporate security with significant decline in market value, book value	$ 912,681

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Apr. 28, 2020
Notes to Financial Statements
Intercompany dividend declared		$ 2,000,000
Maximum 2020 allowable dividend without prior Department of Insurance approval	$ 4,649,896