Unico American (UNAM) 10-Q 13 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 13, 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	Sep. 30, 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		5,305,112
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Entity Shell Company	false
EntityInteractiveDataCurrent	No

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Available-for-sale:
Fixed maturities, at fair value (amortized cost: $78,351,555 at September 30, 2020, and $82,002,411 at December 31, 2019)	$ 81,669,234	$ 83,499,710
Held-to-maturity:
Fixed maturities, at amortized cost (fair value: $798,000 at September 30, 2020, and $798,000 at December 31, 2019)	798,000	798,000
Equity securities, at fair value (cost: $1,515,228 at September 30, 2020, and $0 at December 31, 2019)	1,557,856	0
Short-term investments, at fair value	200,000	2,196,815
Total Investments	84,225,090	86,494,525
Cash and cash equivalents	5,705,663	5,781,639
Accrued investment income	456,687	397,302
Receivable, net	3,810,210	4,019,437
Reinsurance Recoverable:
Paid losses and loss adjustment expenses	885,987	685,841
Unpaid losses and loss adjustment expenses	23,349,279	14,725,855
Deferred policy acquisition costs	3,618,959	3,619,594
Property and equipment (net)	10,271,863	10,226,595
Deferred income taxes		3,925,432
Other assets	456,734	430,305
Total Assets	132,780,472	130,306,525
LIABILITIES
Unpaid losses and loss adjustment expenses	74,333,899	55,066,480
Unearned premium	18,632,430	17,810,337
Advance premium and premium deposits	360,074	219,083
Accrued expenses and other liabilities	2,364,290	2,130,300
Total Liabilities	95,690,693	75,226,200
STOCKHOLDERS' EQUITY
Common stock, no par, authorized 10,000,000 shares; 5,305,112 and 5,306,720 shares issued and outstanding at September 30, 2020, and December 31, 2019	3,771,879	3,772,669
Accumulated other comprehensive loss	2,620,967	1,182,866
Retained earnings	30,696,933	50,124,790
Total Stockholders Equity	37,089,779	55,080,325
Total Liabilities and Stockholders' Equity	$ 132,780,472	$ 130,306,525

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Consolidated Balance Sheets Parenthetical Abstract
Fixed maturities, available for sale, amortized cost	$ 78,351,555	$ 82,002,411
Fixed maturities, held to maturity, fair value	798,000	798,000
Equity securities, cost	$ 1,515,228	$ 0
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,305,112	5,306,720
Common stock, shares outstanding	5,305,112	5,306,720

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
REVENUES
Net premium earned	$ 7,124,272	$ 6,978,698	$ 20,805,517	$ 19,760,961
Investment income	477,145	518,108	1,487,335	1,581,482
Net realized investments gains (losses)	38,214		39,789	(12,661)
Net unrealized investments gains on equity securities	19,670		42,629
Other income	74,784	114,531	278,544	22,660
Total Insurance Company Operation	7,734,085	7,611,337	22,653,814	21,352,442
Gross commissions and fees	461,540	581,100	1,388,494	1,656,371
Finance fees earned	56,985	66,526	191,690	169,896
Other income	7,076	3	7,096	10,830
Total Revenues	8,259,686	8,258,966	24,241,094	23,189,539
EXPENSES
Losses and loss adjustment expenses	17,320,051	5,137,974	28,086,342	15,351,368
Policy acquisition costs	1,279,703	1,194,870	3,626,154	3,571,065
Salaries and employee benefits	2,584,478	1,021,597	4,958,900	3,062,251
Commissions to agents/brokers	23,235	40,946	73,190	132,144
Other operating expenses	1,398,135	532,853	3,372,483	1,896,386
Total Expenses	22,605,602	7,928,240	40,117,069	24,013,214
Income (Loss) Before Income Taxes	(14,345,916)	330,726	(15,875,975)	(823,675)
Income Tax Expense (Benefit)	3,594,572	118,259	3,543,153	(88,391)
Net Income (Loss)	$ (17,940,488)	$ 212,467	$ (19,419,128)	$ (735,284)
Basic
Earnings (loss) per share	$ (3.38)	$ 0.04	$ (3.66)	$ (0.14)
Weighted average shares	5,305,742	5,306,747	5,306,068	5,306,929
Diluted
Earnings (loss) per share	$ (3.38)	$ 0.04	$ (3.66)	$ (0.14)
Weighted average shares	5,305,742	5,306,747	5,306,068	5,306,929

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements Of Comprehensive Income
Net Income (Loss)	$ (17,940,488)	$ 212,467	$ (19,419,128)	$ (735,284)
Other Changes in Comprehensive Income (Loss):
Unrealized gains on securities classified as available-for-sale arising during the period, net of income tax	35,792	359,110	1,438,101	2,299,133
Comprehensive Income (Loss)	$ (17,904,696)	$ 571,577	$ (17,981,027)	$ 1,563,849

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
Shares Repurchased, Value	$ 175		1,946	2,121
Shares Repurchased, Shares	356
Change in Comprehensive Income, net of Deferred Income Tax		1,940,023		1,940,023
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 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)				(735,284)
Ending Balance, Value at Sep. 30, 2019	$ 3,772,682	1,199,097	52,505,371	57,477,150
Ending Balance, Shares at Sep. 30, 2019	5,306,747
Beginning Balance, Value at Jun. 30, 2019	$ 3,772,682	839,987	52,292,904	56,905,573
Beginning Balance, Shares at Jun. 30, 2019	5,306,747
Net Income (Loss)				212,467
Ending Balance, Value at Sep. 30, 2019	$ 3,772,682	1,199,097	52,505,371	57,477,150
Ending Balance, Shares at Sep. 30, 2019	5,306,747
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		1,402,309		1,402,309
Net Income (Loss)			(1,478,640)
Ending Balance, Value at Jun. 30, 2020	$ 3,772,189	2,585,175	48,640,390	54,997,754
Ending Balance, Shares at Jun. 30, 2020	5,305,742
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
Net Income (Loss)				(19,419,128)
Ending Balance, Value at Sep. 30, 2020	$ 3,771,879	2,620,967	30,696,933	37,089,779
Ending Balance, Shares at Sep. 30, 2020	5,305,112
Beginning Balance, Value at Jun. 30, 2020	$ 3,772,189	2,585,175	48,640,390	54,997,754
Beginning Balance, Shares at Jun. 30, 2020	5,305,742
Shares Repurchased, Value	$ 310		2,969
Shares Repurchased, Shares	630
Change in Comprehensive Income, net of Deferred Income Tax		35,792
Net Income (Loss)			(17,940,488)	(17,940,488)
Ending Balance, Value at Sep. 30, 2020	$ 3,771,879	$ 2,620,967	$ 30,696,933	$ 37,089,779
Ending Balance, Shares at Sep. 30, 2020	5,305,112

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities:
Net Loss	$ (19,419,128)	$ (735,284)
Adjustments to reconcile net loss to net cash from operations
Depreciation and amortization	567,639	402,769
Bond amortization, net	(16,989)	24,192
Bad debt expense	7,139	(20,766)
Net realized investment losses (gains)	(31,635)	12,661
Net unrealized investment gains on equity securities	(42,629)
Changes in assets and liabilities:
Net receivables and accrued investment income	142,703	(576,294)
Reinsurance recoverable	(8,823,570)	(5,616,860)
Deferred policy acquisition costs	635	(308,780)
Other assets	(26,428)	265,208
Unpaid losses and loss adjustment expenses	19,267,419	(1,162)
Unearned premium	822,093	2,422,025
Advance premium and premium deposits	140,991	176,897
Accrued expenses and other liabilities	233,990	433,351
Income taxes current/deferred	3,543,153	(111,000)
Net Cash Used by Operating Activities	(3,634,617)	(3,633,043)
Cash Flows from Investing Activities:
Purchase of fixed maturity investments	(14,757,414)	(8,286,568)
Purchase of equity securities	(1,515,228)
Proceeds from maturity of fixed maturity investments	12,318,203	7,313,548
Proceeds from sale or call of fixed maturity investments	6,138,690	3,472,794
Net decrease in short-term investments	1,996,815	4,490,954
Additions to property and equipment	(612,907)	(745,389)
Net Cash Provided by Investing Activities	3,568,159	6,245,339
Cash Flows from Financing Activities:
Repurchase of common stock	(9,518)	(2,121)
Net Cash Used by Financing Activities	(9,518)	(2,121)
Net (decrease) increase in cash and cash equivalents	(75,976)	2,610,175
Cash and cash equivalents beginning of period	5,781,639	4,917,762
Cash and cash equivalents end of period	5,705,663	7,527,937
Cash paid during the period for:
Interest
Income taxes	$ 8,800	$ 8,800

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 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	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Repurchase of Common Stock - Effects on Stockholders' Equity	NOTE 2 – REPURCHASE OF COMMON STOCK – EFFECTS ON STOCKHOLDERS’ EQUITY On August 10, 2020, the Board authorized a share repurchase program (the “2020 Program”) for up to $5,000,000 of the currently outstanding shares of the Company’s common stock. The 2020 Program is effective immediately and replaces the Company’s existing share repurchase program that was adopted by the Board of Directors on December 19, 2008 (the “2008 Program”) to acquire from time to time up to an aggregate of 500,000 shares of the Company’s common stock. The purchases under the 2020 Program may be made from time to time in the open market, through block trades, 10b5-1 trading plans, privately negotiated transactions or otherwise and in accordance with applicable laws, rules and regulations. The timing and actual number of the shares repurchased under the 2020 Program will depend on a variety of factors including price, market conditions and corporate and regulatory requirements. The Company intends to fund the share repurchases under the 2020 Program from cash on hand. The 2020 Program does not commit the Company to repurchase shares of its common stock and it may be amended, suspended or discontinued at any time. The Company repurchased its shares under the 2020 Program and 2008 Program in unsolicited transactions as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 2020 Program Number of shares repurchased 630 — 630 — Cost of shares repurchased Allocated to retained earnings $ 2,969 $ $ 2,969 $ Allocated to capital 310 — 310 — Total cost of shares repurchased $ 3,279 $ — $ 3,279 $ — 2008 Program Number of shares repurchased — — 978 356 Cost of shares repurchased Allocated to retained earnings $ $ $ 5,760 $ 1,946 Allocated to capital — — 480 175 Total cost of shares repurchased $ — $ — $ 6,240 $ 2,121 The Company has remaining authority under the 2020 Program to repurchase up to $4,996,721 of the currently outstanding shares of the Company’s common stock as of September 30, 2020. The Company has retired or will retire all stock repurchased under the 2020 Program and 2008 Program.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019 Basic Earnings (Loss) Per Share Net income (loss) $ (17,940,488 ) $ 212,467 $ (19,419,128 ) $ (735,284 ) Weighted average shares outstanding 5,305,742 5,306,747 5,306,068 5,306,929 Basic earnings (loss) per share $ (3.38 ) $ 0.04 $ (3.66 ) $ (0.14 ) Diluted Earnings (Loss) Per Share Net income (loss) $ (17,940,488 ) $ 212,467 $ (19,419,128 ) $ (735,284 ) Weighted average shares outstanding 5,305,742 5,306,747 5,306,068 5,306,929 Diluted shares outstanding 5,305,742 5,306,747 5,306,068 5,306,929 Diluted earnings (loss) per share $ (3.38 ) $ 0.04 $ (3.66 ) $ (0.14 ) 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	9 Months Ended
	Sep. 30, 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 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 primarily impact the Company’s available-for-sale fixed maturities portfolio and reinsurance recoverables. In November 2019, the FASB issued ASU 2019-10 “Financial Instruments – Credit Losses, Derivatives and Hedging, and Leases.” ASU 2019-10 updated the effective date for implementing ASU 2016-13 for smaller reporting entities, and that effective date will be for fiscal years beginning after December 15, 2022. Since the Company’s fixed income portfolio is invested primarily in higher rated bonds and the reinsurance is purchased from financially strong reinsurers, the Company believes the adoption of ASU 2016-13 will not have a material impact to the Condensed Consolidated Statements of Operations and the Condensed Consolidated Balance Sheets.

Accounting For Income Taxes

Accounting For Income Taxes	9 Months Ended
	Sep. 30, 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 September 30, 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. The fluctuation in the income tax rate as a percentage of pre-tax loss for the three and nine months ended September 30, 2020, when compared to the three and nine months ended September 30, 2019, is primarily due to an increase in the valuation allowance related to deferred tax assets on federal net operating losses discussed below. As of September 30, 2020, the Company had deferred tax assets of $7,318,041 generated from $34,847,822 of federal net operating loss carryforwards that will begin to expire in 2035 and deferred tax assets of $2,286,564 generated from state net operating loss carryforwards which expire between 2028 and 2040. In connection with preparation of its financial statements, the Company periodically performs an analysis of future income projections to determine the adequacy of the valuation allowance. In light of the net losses that were generated in recent years, for the nine months ended September 30, 2020, the Company has established a valuation allowance for the aggregate amount of the federal and state net operating losses and other deferred tax assets in the amount of $9,849,484 that, in management’s judgment, are not more likely than not to be realized. For the year ended December 31, 2019, the Company carried a valuation allowance on deferred tax assets generated from federal and state net operating losses in the amount of $600,000 and $1,931,665, respectively. 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)	9 Months Ended
	Sep. 30, 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: September 30 December 31 2020 2019 Real estate held for sale located in Calabasas, California, net of accumulated depreciation and amortization $ 8,335,017 $ 8,535,464 Furniture, fixtures, and equipment 2,184,752 2,110,653 Computer software 461,900 459,899 Accumulated depreciation and amortization (2,317,361 ) (1,953,819 ) Computer software under development 1,607,555 1,074,398 Property and equipment, net $ 10,271,863 $ 10,226,595 Real estate held for sale, owned by Crusader, includes land, building, and leasehold improvements. On September 29, 2020, the real estate was listed for sale at a price of $12,999,000. Upon the listing, the Company stopped recording the depreciation expense on the Calabasas building and the leasehold improvements in the Calabasas building. The carrying value of the real estate held for sale less expected disposal costs do not present impairment issues. Through the date of the real estate listing, depreciation on the Calabasas building was 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. Through the date of the real estate listing, amortization of leasehold improvements in the Calabasas building was computed using the shorter of the useful life of the leasehold improvements or the remaining years of the lease. Depreciation and amortization expense September 30, 2020, was $190,916 and $567,639 respectively, and for the three and nine months ended 30, 2019, was $132,664 and $402,769, respectively. For the three and nine months ended 30, 2020, the Calabasas building generated rental revenue from non-affiliated tenants in the amount of , respectively, and for the three and nine months ended 30, 2019, rental revenue from non-affiliated tenants in the amount of $43, ,545, respectively, which is included in “Other income” from insurance company operation in the Company’s Condensed Consolidated Statements of Operations. For the three and nine months ended 30, 2020, the Calabasas building incurred operating expenses (including depreciation) in the amount of $200,067 and $573,100, respectively, and, for the three and nine months ended 30, 2019, it incurred operating expenses of $126,962 and $482,257, 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 September 30, 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	9 Months Ended
	Sep. 30, 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 September 30, 2020, and December 31, 2019: Level 1 Level 2 Level 3 Total September 30, 2020 Financial instruments: Available-for-sale fixed maturities: U.S. Treasury securities $ 10,376,994 $ — $ — $ 10,376,994 Corporate securities — 47,946,647 — 47,946,647 Agency mortgage backed securities — 23,345,593 — 23,345,593 Equity securities 1,557,856 — — 1,557,856 Short-term investments 200,000 — — 200,000 Total financial instruments at fair value $ 12,134,850 $ 71,292,240 $ — $ 83,427,090 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 and nine months ended September 30, 2020 and 2019. As a result of the spread of the ongoing coronavirus (COVID-19) pandemic, 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 volatility in the capital markets, as well as general economic conditions as a result of the coronavirus and governmental responses to the pandemic. The financial impact of these uncertainties is unknown at this time.

Investments

Investments	9 Months Ended
	Sep. 30, 2020
Notes to Financial Statements
Investments	NOTE 8 – INVESTMENTS A summary of investment income, net of investment expenses, is as follows: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Fixed maturities $ 499,649 $ 532,307 $ 1,551,380 $ 1,626,843 Equity securities 5,888 — 12,220 — Short-term investments and cash equivalents 4,582 16,808 24,496 53,266 Gross investment income 510,119 549,115 1,588,096 1,680,109 Less: investment expenses (32,974 ) (31,007 ) (100,761 ) (98,627 ) Net investment income 477,145 518,108 1,487,335 1,581,482 Net realized investment gains (losses) 38,214 — 39,789 (12,661 ) Net unrealized investment gains on equity securities 19,670 — 42,629 — Net investment income, realized investment gains (losses) and unrealized investment gains on equity securities $ 535,029 $ 518,108 $ 1,569,753 $ 1,568,821 The amortized cost and estimated fair values of investments in fixed maturities by category are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value September 30, 2020 Available-for-sale fixed maturities: U.S. Treasury securities $ 10,090,505 $ 286,489 $ — $ 10,376,994 Corporate securities 45,799,041 2,351,571 (203,965 ) 47,946,647 Agency mortgage-backed securities 22,462,009 887,506 (3,922 ) 23,345,593 Held-to-maturity fixed securities: Certificates of deposits 798,000 — — 798,000 Total fixed maturities $ 79,149,555 $ 3,525,566 $ (207,887 ) $ 82,467,234 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 As of September 30, 2020, one corporate security, included in available-for-sale fixed maturities, was held as collateral with Comerica Bank & Trust, N. A. (“Comerica”), pursuant to the reinsurance trust agreement among Crusader, United Specialty Insurance Company (“USIC”) and Comerica to secure payment of Crusader’s liabilities and performance of its obligations under the reinsurance arrangement with USIC. The estimated fair value and amortized cost of that security was $723,625 and $688,147 on September 30, 2020, respectively. 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: September 30 December 31 2020 2019 Gross unrealized gains on fixed maturities $ 3,525,566 $ 1,500,333 Gross unrealized losses on fixed maturities (207,887 ) (3,034 ) Net unrealized gains on fixed maturities 3,317,679 1,497,299 Deferred federal tax expense (696,712 ) (314,433 ) Net unrealized gains, net of deferred income taxes $ 2,620,967 $ 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 September 30, 2020 Corporate securities $ 3,431,312 $ (203,965 ) 6 $ — $ — — Agency mortgage-backed securities 1,215,171 (3,922 ) 2 — — — Total $ 4,646,483 $ (207,887 ) 8 $ — $ — — 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 $ (252 ) 1 $ 1,002,031 $ (775 ) 1 Corporate securities 999,818 (57 ) 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 and nine months ended September 30, 2020, one fixed maturity corporate security experienced a significant decline in market value; the market and book value of that security at September 30, 2020, was $744,750 and $911,492, respectively. The unrealized losses on all securities as of September 30, 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 fixed maturity securities previously held by the Company were sold and called prior to maturity as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Fixed maturities securities sold Number of securities sold 6 — 7 3 Amortized cost of sold securities $ 2,923,386 $ — $ 3,524,702 $ 2,997,098 Realized gains (losses) on sales $ 30,057 $ — $ 31,171 $ (12,679 ) Fixed maturities securities called Number of securities called 1 — 3 1 Amortized cost of called securities $ 249,998 $ — $ 1,949,536 $ 999,982 Realized gains on calls $ 2 $ — $ 464 $ 18 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 equity securities allocation is intended to enhance the return of and provide diversification for the total investment portfolio. A summary of equity securities is shown below: September 30 December 31 2020 2019 Cost $ 1,515,227 $ — Unrealized gain 42,629 — Fair market value of equity securities $ 1,557,856 $ — The primary cause for the increase in fair value of the Company’s equity securities portfolio for the nine months ended September 30, 2020 was the overall increase in equity markets during the period. The Company’s investment in certificates of deposit included $598,000 of brokered certificates of deposit as of September 30, 2020 and December 31, 2019. 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. September 30 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: September 30 December 31 2020 2019 U.S. Treasury bills $ — $ 1,996,815 Certificates of deposit 200,000 200,000 Total short-term investments $ 200,000 $ 2,196,815

Unpaid Losses and Loss Adjustme

Unpaid Losses and Loss Adjustment Expenses	9 Months Ended
	Sep. 30, 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: Nine Months Ended September 30 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 19,925,024 13,984,532 Development of insured events of prior years 8,161,318 1,366,836 Total incurred losses and loss adjustment expenses 28,086,342 15,351,368 Loss and loss adjustment expense payments: Attributable to insured events of the current year 5,685,642 4,531,844 Attributable to insured events of prior years 11,756,705 15,088,952 Total payments 17,442,347 19,620,796 Reserve for unpaid losses and loss adjustment expenses at September 30 – net of reinsurance 50,984,620 37,856,125 Reinsurance recoverable on unpaid losses and loss adjustment expenses 23,349,279 13,799,868 Reserve for unpaid losses and loss adjustment expenses at September 30 – gross of reinsurance $ 74,333,899 $ 51,655,993 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.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 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, Crusader is also subject to regulatory and governmental examinations, requests for information, inquiries, investigations, and threatened legal actions and proceedings by state regulators and others. Crusader receives numerous requests, orders for documents, and information in connection with various aspects of its regulated activities. Regulatory and governmental requests for information, inquires, certain examinations and investigations are routinely handed by Crusader. Crusader may involve outside counsel in regulatory matters depending on the nature of the matter. 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.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 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.

Repurchase of Common Stock (Tab

Repurchase of Common Stock (Tables)	9 Months Ended
	Sep. 30, 2020
Repurchase Of Common Stock
Common Stock Repurchase	On August 10, 2020, the Board authorized a share repurchase program (the “2020 Program”) for up to $5,000,000 of the currently outstanding shares of the Company’s common stock. The 2020 Program is effective immediately and replaces the Company’s existing share repurchase program that was adopted by the Board of Directors on December 19, 2008 (the “2008 Program”) to acquire from time to time up to an aggregate of 500,000 shares of the Company’s common stock. The purchases under the 2020 Program may be made from time to time in the open market, through block trades, 10b5-1 trading plans, privately negotiated transactions or otherwise and in accordance with applicable laws, rules and regulations. The timing and actual number of the shares repurchased under the 2020 Program will depend on a variety of factors including price, market conditions and corporate and regulatory requirements. The Company intends to fund the share repurchases under the 2020 Program from cash on hand. The 2020 Program does not commit the Company to repurchase shares of its common stock and it may be amended, suspended or discontinued at any time. The Company repurchased its shares under the 2020 Program and 2008 Program in unsolicited transactions as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 2020 Program Number of shares repurchased 630 — 630 — Cost of shares repurchased Allocated to retained earnings $ 2,969 $ $ 2,969 $ Allocated to capital 310 — 310 — Total cost of shares repurchased $ 3,279 $ — $ 3,279 $ — 2008 Program Number of shares repurchased — — 978 356 Cost of shares repurchased Allocated to retained earnings $ $ $ 5,760 $ 1,946 Allocated to capital — — 480 175 Total cost of shares repurchased $ — $ — $ 6,240 $ 2,121

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019 Basic Earnings (Loss) Per Share Net income (loss) $ (17,940,488 ) $ 212,467 $ (19,419,128 ) $ (735,284 ) Weighted average shares outstanding 5,305,742 5,306,747 5,306,068 5,306,929 Basic earnings (loss) per share $ (3.38 ) $ 0.04 $ (3.66 ) $ (0.14 ) Diluted Earnings (Loss) Per Share Net income (loss) $ (17,940,488 ) $ 212,467 $ (19,419,128 ) $ (735,284 ) Weighted average shares outstanding 5,305,742 5,306,747 5,306,068 5,306,929 Diluted shares outstanding 5,305,742 5,306,747 5,306,068 5,306,929 Diluted earnings (loss) per share $ (3.38 ) $ 0.04 $ (3.66 ) $ (0.14 )

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2020
Repurchase Of Common Stock
Property and Equipment	Property and equipment consist of the following: September 30 December 31 2020 2019 Real estate held for sale located in Calabasas, California, net of accumulated depreciation and amortization $ 8,335,017 $ 8,535,464 Furniture, fixtures, and equipment 2,184,752 2,110,653 Computer software 461,900 459,899 Accumulated depreciation and amortization (2,317,361 ) (1,953,819 ) Computer software under development 1,607,555 1,074,398 Property and equipment, net $ 10,271,863 $ 10,226,595

Fair Value Of Financial Instr_2

Fair Value Of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2020, and December 31, 2019: Level 1 Level 2 Level 3 Total September 30, 2020 Financial instruments: Available-for-sale fixed maturities: U.S. Treasury securities $ 10,376,994 $ — $ — $ 10,376,994 Corporate securities — 47,946,647 — 47,946,647 Agency mortgage backed securities — 23,345,593 — 23,345,593 Equity securities 1,557,856 — — 1,557,856 Short-term investments 200,000 — — 200,000 Total financial instruments at fair value $ 12,134,850 $ 71,292,240 $ — $ 83,427,090 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)	9 Months Ended
	Sep. 30, 2020
Investments Tables Abstract
Investment income	A summary of investment income, net of investment expenses, is as follows: Three Months Ended September 30 Nine Months Ended September 30 2020 2019 2020 2019 Fixed maturities $ 499,649 $ 532,307 $ 1,551,380 $ 1,626,843 Equity securities 5,888 — 12,220 — Short-term investments and cash equivalents 4,582 16,808 24,496 53,266 Gross investment income 510,119 549,115 1,588,096 1,680,109 Less: investment expenses (32,974 ) (31,007 ) (100,761 ) (98,627 ) Net investment income 477,145 518,108 1,487,335 1,581,482 Net realized investment gains (losses) 38,214 — 39,789 (12,661 ) Net unrealized investment gains on equity securities 19,670 — 42,629 — Net investment income, realized investment gains (losses) and unrealized investment gains on equity securities $ 535,029 $ 518,108 $ 1,569,753 $ 1,568,821
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 September 30, 2020 Available-for-sale fixed maturities: U.S. Treasury securities $ 10,090,505 $ 286,489 $ — $ 10,376,994 Corporate securities 45,799,041 2,351,571 (203,965 ) 47,946,647 Agency mortgage-backed securities 22,462,009 887,506 (3,922 ) 23,345,593 Held-to-maturity fixed securities: Certificates of deposits 798,000 — — 798,000 Total fixed maturities $ 79,149,555 $ 3,525,566 $ (207,887 ) $ 82,467,234 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: September 30 December 31 2020 2019 Gross unrealized gains on fixed maturities $ 3,525,566 $ 1,500,333 Gross unrealized losses on fixed maturities (207,887 ) (3,034 ) Net unrealized gains on fixed maturities 3,317,679 1,497,299 Deferred federal tax expense (696,712 ) (314,433 ) Net unrealized gains, net of deferred income taxes $ 2,620,967 $ 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 September 30, 2020 Corporate securities $ 3,431,312 $ (203,965 ) 6 $ — $ — — Agency mortgage-backed securities 1,215,171 (3,922 ) 2 — — — Total $ 4,646,483 $ (207,887 ) 8 $ — $ — — 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 $ (252 ) 1 $ 1,002,031 $ (775 ) 1 Corporate securities 999,818 (57 ) 1 — — — Agency mortgage-backed securities 750,058 (1,950 ) 2 — — — Total $ 3,746,438 $ (2,259 ) 4 $ 1,002,031 $ (775 ) 1
Fixed maturities sold and called	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 fixed maturity securities previously held by the Company were sold and called prior to maturity as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Fixed maturities securities sold Number of securities sold 6 — 7 3 Amortized cost of sold securities $ 2,923,386 $ — $ 3,524,702 $ 2,997,098 Realized gains (losses) on sales $ 30,057 $ — $ 31,171 $ (12,679 ) Fixed maturities securities called Number of securities called 1 — 3 1 Amortized cost of called securities $ 249,998 $ — $ 1,949,536 $ 999,982 Realized gains on calls $ 2 $ — $ 464 $ 18
Summary of equity investments	The Company started investing in common stock equity securities during the three months ended March 31, 2020. The Company’s equity securities allocation is intended to enhance the return of and provide diversification for the total investment portfolio. A summary of equity securities is shown below: September 30 December 31 2020 2019 Cost $ 1,515,227 $ — Unrealized gain 42,629 — Fair market value of equity securities $ 1,557,856 $ —
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. September 30 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: September 30 December 31 2020 2019 U.S. Treasury bills $ — $ 1,996,815 Certificates of deposit 200,000 200,000 Total short-term investments $ 200,000 $ 2,196,815

Unpaid Losses and Loss Adjust_2

Unpaid Losses and Loss Adjustment Expenses (Tables)	9 Months Ended
	Sep. 30, 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: Nine Months Ended September 30 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 19,925,024 13,984,532 Development of insured events of prior years 8,161,318 1,366,836 Total incurred losses and loss adjustment expenses 28,086,342 15,351,368 Loss and loss adjustment expense payments: Attributable to insured events of the current year 5,685,642 4,531,844 Attributable to insured events of prior years 11,756,705 15,088,952 Total payments 17,442,347 19,620,796 Reserve for unpaid losses and loss adjustment expenses at September 30 – net of reinsurance 50,984,620 37,856,125 Reinsurance recoverable on unpaid losses and loss adjustment expenses 23,349,279 13,799,868 Reserve for unpaid losses and loss adjustment expenses at September 30 – gross of reinsurance $ 74,333,899 $ 51,655,993

Repurchase of Common Stock (Det

Repurchase of Common Stock (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)
Notes to Financial Statements
Number of shares repurchased, 2020 program	630	0	630	0
Cost of shares repurchased allocated to retained earnings, 2020 program	$ 2,969	$ 0	$ 2,969	$ 0
Cost of shares repurchased allocated to capital, 2020 program	310	0	310	0
Cost of shares repurchased, total, 2020 program	$ 3,279	$ 0	$ 3,279	$ 0
Number of shares repurchased, 2008 program	0	0	978	356
Cost of shares repurchased allocated to retained earnings, 2008 program	$ 0	$ 0	$ 5,760	$ 1,946
Cost of shares repurchased allocated to capital, 2008 program	0	0	480	175
Cost of shares repurchased, total, 2008 program	$ 0	$ 0	$ 6,240	$ 2,121

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Notes to Financial Statements
Loss per share - diluted	$ (3.38)	$ 0.04	$ (3.66)	$ (0.14)
Loss per share - basic	$ (3.38)	$ 0.04	$ (3.66)	$ (0.14)
Net loss	$ (17,940,488)	$ 212,467	$ (19,419,128)	$ (735,284)
Weighted average shares outstanding - diluted	5,305,742	5,306,747	5,306,068	5,306,929
Weighted average shares outstanding - basic	5,305,742	5,306,747	5,306,068	5,306,929

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Property And Equipment
Real estate held for sale	$ 8,335,017	$ 8,535,464
Furniture, fixtures, and equipment	2,184,752	2,110,653
Accumulated depreciation and amortization	(2,317,361)	(1,953,819)
Computer software	461,900	459,899
Computer software under development	1,607,555	1,074,398
Net property and equipment	$ 10,271,863	$ 10,226,595

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Fair Value of Invested Assets (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Fixed maturity investments available for sale:
U.S. treasury securities	$ 10,376,994	$ 15,235,332
Corporate securities	47,946,647	43,029,333
Agency mortgage-backed securities	23,345,593	25,235,045
Equity securities	1,557,856	0
Short-term investments, at fair value	200,000	2,196,815
Total financial instruments at fair value	83,427,090	85,696,525
Level 1
Fixed maturity investments available for sale:
U.S. treasury securities	10,376,994	15,235,332
Corporate securities	0	0
Agency mortgage-backed securities	0	0
Equity securities	1,557,856	0
Short-term investments, at fair value	200,000	2,196,815
Total financial instruments at fair value	12,134,850	17,432,147
Level 2
Fixed maturity investments available for sale:
U.S. treasury securities	0	0
Corporate securities	47,946,647	43,029,333
Agency mortgage-backed securities	23,345,593	25,235,045
Equity securities	0	0
Short-term investments, at fair value	0	0
Total financial instruments at fair value	71,292,240	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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Notes to Financial Statements
Investment income fixed maturities	$ 499,649	$ 532,307	$ 1,551,380	$ 1,626,843
Investment income from equity securities	5,888	0	12,220	0
Investment income short-term investments	4,582	16,808	24,496	53,266
Gross investment income	510,119	549,115	1,588,096	1,680,109
Investment expense	32,974	31,007	100,761	98,627
Investment income net of expenses	477,145	518,108	1,487,335	1,581,482
Net realized investment gains (losses)	38,214		39,789	(12,661)
Net unrealized investment gains on equity securities	19,670		42,629
Net investment income, realized invesetment gains (losses), and unrealized investment gains on equity securities	$ 535,029	$ 518,108	$ 1,569,753	$ 1,568,821

Investments - Fixed Maturities

Investments - Fixed Maturities by Categories (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Amortized cost, fixed maturities, available for sale	$ 78,351,555	$ 82,002,411
Estimated fair value, fixed maturities, available for sale	81,669,234	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	10,090,505	15,105,795
Gross unrealized gains, fixed maturities, available for sale	286,489	130,564
Gross unrealized losses, fixed maturities, available for sale		1,027
Estimated fair value, fixed maturities, available for sale	10,376,994	15,235,332
Corporate securities
Amortized cost, fixed maturities, available for sale	45,799,041
Gross unrealized gains, fixed maturities, available for sale	2,351,571
Gross unrealized losses, fixed maturities, available for sale	203,965
Estimated fair value, fixed maturities, available for sale	47,946,647
Agency mortgage-backed securities
Amortized cost, fixed maturities, available for sale	22,462,009
Gross unrealized gains, fixed maturities, available for sale	887,506
Gross unrealized losses, fixed maturities, available for sale	3,922
Estimated fair value, fixed maturities, available for sale	23,345,593
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	79,149,555
Gross unrealized gains, fixed maturities	3,525,566
Gross unrealized losses, fixed maturities	207,887
Fixed maturities, at estimated fair value	$ 82,467,234
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
Agency mortgage backed securities
Amortized cost, fixed maturities, available for sale		24,943,238
Gross unrealized gains, fixed maturities, available for sale		293,757
Gross unrealized losses, fixed maturities, available for sale		1,950
Estimated fair value, fixed maturities, available for sale		25,235,045
Total fixed maturities
Fixed maturities, at amortized cost		82,800,411
Gross unrealized gains, fixed maturities		1,500,333
Gross unrealized losses, fixed maturities		3,034
Fixed maturities, at estimated fair value		$ 84,297,710

Investments - Unrealized Gains

Investments - Unrealized Gains (Losses) on Investments in Fixed Maturities (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Notes to Financial Statements
Gross unrealized gains on fixed maturities	$ 3,525,566	$ 1,500,333
Gross unrealized losses on fixed maturities	(207,887)	(3,034)
Net unrealized gains on fixed maturities	3,317,679	1,497,299
Deferred federal tax expense	(696,712)	(314,433)
Net unrealized gains, net of deferred income taxes	$ 2,620,967	$ 1,182,866

Investments - Securities in Unr

Investments - Securities in Unrealized Loss Position (Details)	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Corporate securities
Fair value, less than 12 months	$ 3,431,312
Fair value, 12 months or longer	0
Gross unrealized losses, less than 12 months	203,965
Gross unrealized losses, 12 months or longer	$ 0
Number of securities in unrealized loss positions for less than 12 months	6
Number of securities in unrealized loss positions for 12 months or longer	0
Agency mortgage-backed securities
Fair value, less than 12 months	$ 1,215,171
Fair value, 12 months or longer	0
Gross unrealized losses, less than 12 months	3,922
Gross unrealized losses, 12 months or longer	$ 0
Number of securities in unrealized loss positions for less than 12 months	2
Number of securities in unrealized loss positions for 12 months or longer	0
Total fixed maturities
Fair value, less than 12 months	$ 4,646,483
Fair value, 12 months or longer	0
Gross unrealized losses, less than 12 months	207,887
Gross unrealized losses, 12 months or longer	$ 0
Number of securities in unrealized loss positions for less than 12 months	8
Number of securities in unrealized loss positions for 12 months or longer	0
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		252
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		57
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
Agency mortgage backed securities
Fair value, less than 12 months		$ 750,058
Fair value, 12 months or longer		0
Gross unrealized losses, less than 12 months		1,950
Gross unrealized losses, 12 months or longer		$ 0
Number of securities in unrealized loss positions for less than 12 months		2
Number of securities in unrealized loss positions for 12 months or longer		0
Total fixed maturities
Fair value, less than 12 months		$ 3,746,438
Fair value, 12 months or longer		1,002,031
Gross unrealized losses, less than 12 months		2,259
Gross unrealized losses, 12 months or longer		$ 775
Number of securities in unrealized loss positions for less than 12 months		4
Number of securities in unrealized loss positions for 12 months or longer		1

Investments - Fixed Maturitie_2

Investments - Fixed Maturities Sold and Called (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)
Notes to Financial Statements
Sold securities - number	6	0	7	3
Sold securities - amortized cost	$ 2,923,386	$ 0	$ 3,524,702	$ 2,997,098
Called securities - number	1	0	3	1
Called securities - amortized cost	$ 249,998	$ 0	$ 1,949,536	$ 999,982
Called securities - realized gain	$ 2	$ 0	$ 464	$ 18

Investments - Equity Securities

Investments - Equity Securities (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Notes to Financial Statements
Equity securities, cost	$ 1,515,228	$ 0
Unrealized gain	42,629	0
Equity securities, at fair value	$ 1,557,856	$ 0

Investments - State Held Deposi

Investments - State Held Deposits (Details) - USD ($)	Sep. 30, 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 ($)	Sep. 30, 2020	Dec. 31, 2019
Notes to Financial Statements
Short-term U.S. treasury bills	$ 0	$ 1,996,815
Certificates of deposit	200,000	200,000
Total short-term investments	$ 200,000	$ 2,196,815

Unpaid Losses And Loss Adjust_3

Unpaid Losses And Loss Adjustment Expenses (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Insurance Loss Reserves [Abstract]
Gross reserves	$ 74,333,899	$ 51,655,993	$ 74,333,899	$ 51,655,993	$ 55,066,480	$ 51,657,155
Reinsurance recoverable on unpaid losses and loss adjustment expenses	23,349,279	13,799,868	23,349,279	13,799,868	14,725,855	9,531,602
Net reserves	50,984,620	37,856,125	50,984,620	37,856,125	$ 40,340,625	$ 42,125,553
Incurred losses and loss adjustment expenses
Current accident year			19,925,024	13,984,532
Prior accident years			8,161,318	1,366,836
Incurred losses and loss adjustment expenses	$ 17,320,051	$ 5,137,974	28,086,342	15,351,368
Paid losses and loss adjustment expenses
Current accident year			5,685,642	4,531,844
Prior accident years			11,756,705	15,088,952
Total payment losses and loss adjustment expenses			$ 17,442,347	$ 19,620,796

Property and Equipment (Detai_2

Property and Equipment (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)
Property And Equipment Details Abstract
Square footage of building	46,884		46,884
Building square footage leased to non-alliliates	6,942		6,942
Building square footage available for lease	7,539		7,539
Depreciation and amortization	$ 190,916	$ 132,664	$ 567,639	$ 402,769
Calabasas building operating expenses including depreciation	200,067	126,962	573,100	482,257
Office building revenue from leases from non-affiliates	$ 33,325	$ 43,158	$ 122,684	$ 125,545
Real estate listing price | shares	12,999,000		12,999,000

Investments (Details Narrative)

Investments (Details Narrative)	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Notes to Financial Statements
Security pledged as collateral - fair value	$ 723,625	$ 0
Security pledged as collateral - cost	688,147	0
Brokered certificates of deposit	$ 598,000	$ 598,000
Statutory deposits number of banks	3	3
Fixed maturity corporate security with significant decline in market value, market value	$ 744,750
Fixed maturity corporate security with significant decline in market value, book value	$ 911,492