Unico American (UNAM) 10-Q 17 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 17, 2021
Cover [Abstract]
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, 2021
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Is Entity Small Business?	true
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	NV
Entity Common Stock, Shares Outstanding		5,304,885
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Available-for-sale:
Fixed maturities, at fair value (amortized cost: $86,519,732 at March 31, 2021, and $80,071,280 at December 31, 2020)	$ 88,550,354	$ 83,409,694
Held-to-maturity:
Fixed maturities, at amortized cost (fair value: $798,000 at March 31, 2021, and $798,000 at December 31, 2020)	798,000	798,000
Equity securities, at fair value (cost: $2,834,034 at March 31, 2021, and $2,548,440 at December 31, 2020)	3,183,967	2,746,706
Short-term investments, at fair value	2,949,946	200,000
Total investments	95,482,267	87,154,400
Cash and cash equivalents	7,772,757	3,957,980
Accrued investment income	498,322	402,046
Receivable, net	3,586,912	3,321,337
Reinsurance Recoverable:
Paid losses and loss adjustment expenses	78,311	621,307
Unpaid losses and loss adjustment expenses	22,133,366	22,253,642
Deferred policy acquisition costs	3,567,638	3,503,248
Real estate held for sale	0	8,335,017
Property and equipment (net)	2,228,085	2,038,415
Other assets	254,999	313,363
Total assets	135,602,657	131,900,755
LIABILITIES:
Unpaid losses and loss adjustment expenses	74,402,333	74,893,509
Unearned premium	19,283,208	18,188,298
Advance premium and premium deposits	143,236	208,538
Accrued expenses and other liabilities	5,506,372	3,577,450
Total liabilities	99,335,149	96,867,795
STOCKHOLDERS' EQUITY:
Common stock, no par, authorized 10,000,000 shares; 5,304,885 shares issued and outstanding at March 31, 2021, and December 31, 2020	3,771,767	3,771,767
Accumulated other comprehensive income	1,604,192	2,637,347
Retained earnings	30,891,549	28,623,846
Total stockholders equity	36,267,508	35,032,960
Total liabilities and stockholders' equity	$ 135,602,657	$ 131,900,755

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Fixed maturities, available for sale, amortized cost	$ 86,519,732	$ 80,071,280
Fixed maturities, held to maturity, fair value	798,000	798,000
Equity securities, cost	$ 2,834,034	$ 2,548,440
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	5,304,885	5,304,885
Common stock, shares outstanding	5,304,885	5,304,885

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
REVENUES:
Net premium earned	$ 6,603,760	$ 6,911,134
Investment income	514,723	520,692
Net realized investments gains	55,399	1,114
Net realized gains on real estate sale	3,693,858	0
Net unrealized investments gains (losses) on equity securities	151,667	(44,800)
Other income (loss)	(26,752)	80,937
Total insurance company operation	10,992,655	7,469,077
Gross commissions and fees	433,461	469,069
Finance charges and fees earned	44,998	67,019
Other income	540	16
Total revenues	11,471,654	8,005,181
EXPENSES:
Losses and loss adjustment expenses	5,585,213	5,877,385
Policy acquisition costs	1,021,965	1,144,425
Salaries and employee benefits	1,128,090	1,122,499
Commissions to agents/brokers	20,568	25,955
Other operating expenses	1,173,479	980,415
Total expenses	8,929,315	9,150,679
Income (loss) before income taxes	2,542,339	(1,145,498)
Income tax expense (benefit)	(274,636)	101,672
Net income (loss)	$ 2,267,703	$ (1,043,826)
Basic:
Earnings (loss) per share	$ 0.43	$ (0.20)
Weighted average shares	5,304,885	5,306,720
Diluted:
Earnings (loss) per share	$ 0.43	$ (0.20)
Weighted average shares	5,304,885	5,306,720

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 2,267,703	$ (1,043,826)
Other Changes in Comprehensive Income (Loss):
Unrealized gains on securities classified as available-for-sale arising during the period, net of income tax	(1,033,155)	(299,993)
Comprehensive income (loss)	$ 1,234,548	$ (1,343,819)

Condensed Consolidated Statem_3

Condensed Consolidated Statementd of Changes in Stockholders' Equity - USD ($)	Common Shares	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total
Beginning balance, shares at Dec. 31, 2019	5,306,720
Beginning balance, value at Dec. 31, 2019	$ 3,772,669	$ 1,182,866	$ 50,124,790	$ 55,080,325
Shares repurchased, shares	(978)
Shares repurchased, value	$ (480)		(5,760)	(6,240)
Change in comprehensive income, net of deferred income tax		(299,993)		(299,993)
Net income (loss)			(1,043,826)	(1,043,826)
Ending balance, shares at Mar. 31, 2020	5,305,742
Ending balance, value at Mar. 31, 2020	$ 3,772,189	882,873	49,075,204	53,730,266
Beginning balance, shares at Dec. 31, 2020	5,304,885
Beginning balance, value at Dec. 31, 2020	$ 3,771,767	2,637,347	28,623,846	35,032,960
Change in comprehensive income, net of deferred income tax		(1,033,155)		(1,033,155)
Net income (loss)			2,267,703	2,267,703
Ending balance, shares at Mar. 31, 2021	5,304,885
Ending balance, value at Mar. 31, 2021	$ 3,771,767	$ 1,604,192	$ 30,891,549	$ 36,267,508

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities:
Net income (loss)	$ 2,267,703	$ (1,043,826)
Adjustments to reconcile net loss to net cash from operations:
Depreciation and amortization	105,373	188,085
Bond amortization, net	(331,776)	(6,711)
Bad debt expense	5,506	(25)
Net realized investment gains	(97,772)	(1,114)
Net realized gains on real estate sale	(3,693,858)	0
Net unrealized investment losses (gains) on equity securities	(151,667)	44,800
Changes in assets and liabilities:
Net receivables and accrued investment income	(367,356)	(73,468)
Reinsurance recoverable	663,272	(353,724)
Deferred policy acquisition costs	(64,390)	(68,385)
Other assets	58,364	(38,153)
Unpaid losses and loss adjustment expenses	(491,176)	1,073,118
Unearned premium	1,094,910	297,061
Advance premium and premium deposits	(65,302)	125,944
Accrued expenses and other liabilities	1,928,922	(48,814)
Income taxes current/deferred	274,636	(101,672)
Net cash used by operating activities	1,135,389	(6,884)
Cash Flows from Investing Activities:
Purchase of fixed maturity investments	(11,008,996)	(1,735,823)
Purchase of equity securities	(285,594)	(502,484)
Proceeds from maturity of fixed maturity investments	3,491,804	1,328,128
Proceeds from sale or call of fixed maturity investments	1,498,288	603,543
Purchase of short-term investments	(2,749,946)	(1,202)
Proceeds from sale of real estate held for sale	12,028,875	0
Additions to property and equipment	(295,043)	(184,652)
Net cash provided (used) by investing activities	2,679,388	(492,490)
Cash Flows from Financing Activities:
Repurchase of common stock	0	(6,240)
Net cash used by financing activities	0	(6,240)
Net (decrease) increase in cash and cash equivalents	3,814,777	(505,614)
Cash and cash equivalents beginning of period	3,957,980	5,781,639
Cash and cash equivalents end of period	7,772,757	5,276,025
Cash paid during the period for:
Interest	0	0
Income taxes	$ 0	$ 8,800

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
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, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Quarterly condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2020 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: ● Available-for-sale fixed securities, equity securities, 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, 2021
Stockholders' Equity Note [Abstract]
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 was effective immediately and replaced 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 March 31 2021 2020 2020 Program Number of shares repurchased - - Cost of shares repurchased Allocated to retained earnings $ - $ - Allocated to capital - - Total cost of shares repurchased $ - $ - 2008 Program Number of shares repurchased - 978 Cost of shares repurchased Allocated to retained earnings $ - $ 5,760 Allocated to capital - 480 Total cost of shares repurchased $ - $ 6,240 The Company has remaining authority under the 2020 Program to repurchase up to $4,995,507 of the currently outstanding shares of the Company’s common stock as of March 31, 2021. The Company has retired or will retire all stock repurchased under the 2020 Program and 2008 Program.

Income (Loss) Per Share

Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2021
PER SHARE DATA:
Income (Loss) Per Share	The following table represents the reconciliation of the Company's basic income (loss) per share and diluted income (loss) per share computations reported on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020: Three Months Ended March 31 2021 2020 Basic Income (Loss) Per Share Net income (loss) $ 2,267,703 $ (1,043,826 ) Weighted average shares outstanding 5,304,885 5,306,720 Basic income (loss) per share $ 0.43 $ (0.20 ) Three Months Ended March 31 2021 2020 Diluted Income (Loss) Per Share Net income (loss) $ 2,267,703 $ (1,043,826 ) Weighted average shares outstanding 5,304,885 5,306,720 Effect of diluted securities - - Diluted shares outstanding 5,304,885 5,306,720 Diluted income (loss) per share $ 0.43 $ (0.20 ) 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, 2021
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards	Recently adopted standards 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. In December of 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes or ASU 2019-12. ASU 2019-12 is expected to reduce the cost and complexity related to the accounting for income taxes. The ASU removes specific exceptions to the general principles in Topic 740 and improves the financial statement preparer's application of income tax related guidance. The ASU is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted ASU 2019-12 effective January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements. 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 Taxes

Accounting for Taxes	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
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 2017 and California state income tax authorities for tax returns filed starting at taxable year 2016. There are no ongoing examinations of income tax returns by federal or state tax authorities. As of March 31, 2021, and December 31, 2020, 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 of March 31, 2021, the Company had deferred tax assets of $7,510,566 generated from $35,764,600 of federal net operating loss carryforwards that will begin to expire in 2035 and deferred tax assets of $2,551,432 generated from state net operating loss carryforwards which expire between 2028 and 2040. In connection with preparation of its consolidated 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 three months ended March 31, 2021, 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 $10,346,084 that, in management’s judgment, are not more-likely-than-not to be realized. For the year ended December 31, 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 $10,557,080. 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.

Real Estate Held For Sale, Net

Real Estate Held For Sale, Net and Property and Equipment, Net	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment, Net [Abstract]
Real Estate Held For Sale, Net and Property and Equipment, Net	Real estate held for sale consists of the following: March 31 December 31 2021 2020 Real estate held for sale, located in Calabasas, California $ - $ 10,202,676 Accumulated depreciation and amortization - (1,867,659 ) Real estate held for sale, net $ - $ 8,335,017 Property and equipment consist of the following: March 31 December 31 2021 2020 Furniture, fixtures, equipment 2,188,132 2,191,411 Computer software 466,892 467,275 Accumulated depreciation and amortization (2,536,237 ) (2,423,617 ) Computer software under development 2,109,298 1,803,346 Property and equipment, net $ 2,228,085 $ 2,038,415 On February 12, 2021, the Company, through Crusader, completed the sale of the Company’s headquarters at 26050 Mureau Road, Calabasas, California 91302 (the “Calabasas Building”), for approximately $12,695,000 (the “Sale”) to Mureau Road, LLC (“Mureau Road”), a subsidiary of Alliant Capital, Ltd. (“Alliant”). Mureau Road and Alliant do not have any material relationship with the Company or its subsidiaries, other than through the Sale and the Lease (as defined below) transactions. The Company recognized a gain of $3,693,858 on the sale of the Calabasas Building. On February 12, 2021, the Standard-Multi Tenant Office Lease – Net, dated January 28, 2021 (the “Lease”), by and between Crusader and Mureau Road became effective in connection with the completion of the Sale. The Company has agreed to a lease, which expires on January 31, 2022, with Alliant for the second floor of the Calabasas Building with an initial base rent of approximately $52,637 per month, where the Company will continue to operate its corporate headquarters. Through the date of the real estate listing, 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, 2021 and 2020 was $121,727 and $188,085, respectively. For the three months ended March 31, 2021 and 2020, the Calabasas Building has generated rental revenue from non-affiliated tenants in the amount of $13,806 and $53,290, 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, 2021 and 2020, the Calabasas Building incurred operating expenses (including depreciation) in the amount of $95,964 and $190,097, respectively, which are included in “Other operating expenses” in the Company’s Condensed Consolidated Statements of Operations. 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, 2021
Fair Value Disclosures [Abstract]
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, 2021, and December 31, 2020: Level 1 Level 2 Level 3 Total March 31, 2021 Financial instruments: Available-for-sale fixed maturities: U.S. Treasury securities $ 10,883,041 $ - $ - $ 10,883,041 Corporate securities - 47,462,245 - 47,462,245 Agency mortgage-backed securities - 30,205,068 - 30,205,068 Equity securities 3,183,967 - - 3,183,967 Short-term investments 2,949,946 - - 2,949,946 Total financial instruments at fair value $ 17,016,954 $ 77,667,313 $ - $ 94,684,267 December 31, 2020 Financial instruments: Available-for-sale fixed maturities: U.S. Treasury securities $ 10,832,181 $ - $ - $ 10,832,181 Corporate securities - 46,451,905 - 46,451,905 Agency mortgage-backed securities - 26,125,608 - 26,125,608 Equity securities 2,746,706 - - 2,746,706 Short-term investments 200,000 - - 200,000 Total financial instruments at fair value $ 13,778,887 $ 72,577,513 $ - $ 86,356,400 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, 2021 and 2020. As a result of the spread of the ongoing coronavirus (“COVID-19”) pandemic, economic uncertainties have arisen which can 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 possible that the fair value of its investment portfolio may be adversely affected by the general economic conditions as a result of the governmental responses to the pandemic.

Investments

Investments	3 Months Ended
	Mar. 31, 2021
Investments:
Investments	A summary of investment income, net of investment expenses, net realized investment gains, realized gains on real estate sale, and net unrealized investment gains on equity securities is as follows: Three Months ended March 31 2021 2020 Fixed maturities $ 528,167 $ 542,407 Equity securities 20,753 1,442 Short-term investments and cash equivalents 384 11,722 Gross investment income 549,304 555,571 Less investment expenses (34,581 ) (34,879 ) Net investment income 514,723 520,692 Net realized investment gains 55,399 1,114 Net realized gains on real estate sale 3,693,858 - Net unrealized investment gains (losses) on equity securities 151,667 (44,800 ) Net investment income, realized investment gains, realized gains on real estate sale and unrealized investment gains (losses) $ 4,415,647 $ 477,006 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, 2021 Available-for-sale fixed maturities: U.S. Treasury securities $ 10,754,166 $ 180,757 $ (51,882 ) $ 10,883,041 Corporate securities 46,200,918 1,601,092 (339,765 ) 47,462,245 Agency mortgage-backed securities 29,564,648 705,489 (65,069 ) 30,205,068 Held-to-maturity fixed securities: Certificates of deposits 798,000 - - 798,000 Total fixed maturities $ 87,317,732 $ 2,487,338 $ (456,716 ) $ 89,348,354 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2020 Available-for-sale fixed maturities: U.S. Treasury securities $ 10,596,808 $ 235,373 $ - $ 10,832,181 Corporate securities 44,159,926 2,347,826 (55,847 ) 46,451,905 Agency mortgage-backed securities 25,314,546 833,336 (22,274 ) 26,125,608 Held-to-maturity fixed securities: Certificates of deposits 798,000 - - 798,000 Total fixed maturities $ 80,869,280 $ 3,416,535 $ (78,121 ) $ 84,207,694 As of March 31, 2021, 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 $821,000 and $788,858 on March 31, 2021, 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: March 31 December 31 2021 2020 Gross unrealized gains on fixed maturities $ 2,487,338 $ 3,416,535 Gross unrealized losses on fixed maturities (456,716 ) (78,121 ) Net unrealized gains on fixed maturities 2,030,622 3,338,414 Deferred federal tax expense (426,430 ) (701,067 ) Net unrealized gains, net of deferred income taxes $ 1,604,192 $ 2,637,347 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, 2021 U.S. Treasury securities $ 3,691,882 $ (51,882 ) 3 $ - $ - - Corporate securities 9,841,887 (320,480 ) 14 891,000 (19,285 ) 1 Agency mortgage-backed securities 7,990,649 (65,069 ) 11 - - - Total debt securities 21,524,418 (437,431 ) 28 891,000 (19,285 ) 1 Equity securities 608,807 (24,884 ) 34 10,972 (749 ) 2 Total $ 22,133,225 $ (462,315 ) 62 $ 901,972 $ (20,034 ) 3 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, 2020 Corporate securities 2,101,986 (55,847 ) 2 - - - Agency mortgage-backed securities 3,223,329 (22,274 ) 12 - - - Total debt securities 5,325,315 (78,121 ) 14 - - - Equity securities 723,346 (37,357 ) 25 - - - Total $ 6,048,661 $ (115,478 ) 39 $ - $ - - The Company closely monitors its investments. If an unrealized loss is determined to be other-than-temporary, it is written off as a realized loss through the Condensed Consolidated Statements of Operations. The Company’s methodology of assessing other-than-temporary impairments is based on security-specific analysis as of the balance sheet date and considers various factors including the length of time to maturity and the extent to which the fair value has been less than the cost, the financial condition and the near-term prospects of the issuer, and whether the debtor is current on its contractually obligated interest and principal payments. The unrealized losses on all securities as of March 31, 2021, and December 31, 2020, 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 March 31 2021 2020 Fixed maturities securities sold Number of securities sold 1 1 Amortized cost of sold securities $ 249,995 $ 601,316 Realized gains on sales $ 2 $ 1,114 Fixed maturities securities called Number of securities called 2 - Amortized cost of called securities $ 1,374,901 $ - Realized gains on calls $ 99 $ - 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 year ended December 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: March 31 December 31 2021 2020 Cost $ 2,834,034 $ 2,548,440 Unrealized gains 349,933 198,266 Fair market value of equity securities $ 3,183,967 $ 2,746,706 The Company’s investment in certificates of deposit included $598,000 of brokered certificates of deposit as of March 31, 2021 and December 31, 2020. 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 2021 2020 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 2021 2020 U.S. Treasury bills $ 2,749,946 $ - Certificates of deposit 200,000 200,000 Total short-term investments $ 2,949,946 $ 200,000

Unpaid Losses and Loss Adjustme

Unpaid Losses and Loss Adjustment Expenses	3 Months Ended
	Mar. 31, 2021
Unpaid Losses And Loss Adjustment Expenses
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 2021 2020 Reserve for unpaid losses and loss adjustment expenses at January 1 – gross of reinsurance $ 74,893,509 $ 55,066,480 Less reinsurance recoverable on unpaid losses and loss adjustment expenses 22,253,642 14,725,855 Reserve for unpaid losses and loss adjustment expenses at January 1 – net of reinsurance 52,639,867 40,340,625 Incurred losses and loss adjustment expenses: Provision for insured events of current year 6,757,564 5,161,176 Development of insured events of prior years (1,172,351 ) 716,209 Total incurred losses and loss adjustment expenses 5,585,213 5,877,385 Loss and loss adjustment expense payments: Attributable to insured events of the current year 2,545,181 1,444,009 Attributable to insured events of prior years 3,410,932 4,034,155 Total payments 5,956,113 5,478,164 Reserve for unpaid losses and loss adjustment expenses at March 31 – net of reinsurance 52,268,967 40,739,846 Reinsurance recoverable on unpaid losses and loss adjustment expenses 22,133,366 15,399,752 Reserve for unpaid losses and loss adjustment expenses at March 31 – gross of reinsurance $ 74,402,333 $ 56,139,598 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	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Contingencies	The Company, by virtue of the nature of the business conducted by it, becomes involved in numerous legal proceedings as either plaintiff or defendant. From time to time, the Company is required to resort to legal proceedings against vendors providing services to the Company or against customers or their agents to enforce collection of premiums, commissions, or fees. These routine items of litigation do not materially affect the Company and are handled on a routine basis by the Company through its counsel. 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 handled 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. Crusader has received a number of coronavirus-related business interruption claims. With an exception of a handful of claims for which investigation is still ongoing, all such claims were denied after the individual circumstances of each claim were reviewed to determine whether insurance coverage applied. Like many companies in the property casualty insurance industry, Crusader was named as defendant in lawsuits seeking insurance coverage under the policies issued by Crusader for alleged economic losses resulting from the shutdown or suspension of their businesses due to the COVID-19 pandemic. Although the allegations vary, the plaintiffs generally seek a declaration of insurance coverage, damages for breach of contract in unspecified amounts for claim denials, interest and attorney fees. Some of the lawsuits also allege that the insurance claims were denied in bad faith or otherwise in violation of state laws and seek extra-contractual or punitive damages. Crusader denies the allegations in these lawsuits and intends to continue to vigorously defend them. Although the policy terms vary in general, the claims at issue in these lawsuits were denied because the policyholder identified no direct physical loss, such as fire or water damage, to property at the insured premises, and the governmental orders that led to the complete or partial shutdown of the business were not due to the existence of any direct physical loss or damage to property in the immediate vicinity of the insured premises and did not prohibit access to the insured premises, as required by the terms of the insurance policies. Depending on the individual policy, additional policy terms and conditions may also prohibit coverage, such as exclusions for pollutants, ordinance or law, loss of use, and acts or decisions. Most of Crusader’s policies also contain an exclusion for losses caused directly or indirectly by “virus or bacteria.” In addition to the inherent difficulty in predicting litigation outcomes, the COVID-19 pandemic business income coverage lawsuits present a number of uncertainties and contingencies that are not yet known, including how many policyholders will ultimately file claims, the number of lawsuits that will be filed, the extent to which any class may be certified, and the size and scope of any such classes. The legal theories advanced by plaintiffs vary by case. These lawsuits are in the early stages of litigation; many complaints continue to be amended; several have been dismissed voluntarily and may be refiled; and others have been dismissed by trial courts. Some early decisions on motion filings have been appealed. On March 23, 2021, ten policyholders sued Crusader in a putative class action entitled Anchors & Whales LLC et al. v. Crusader Insurance Company

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
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, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Quarterly condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s 2020 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: ● Available-for-sale fixed securities, equity securities, 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 - _2

Repurchase of Common Stock - Effects on Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2021
Stockholders' Equity Note [Abstract]
Common stock repurchase	Three Months Ended March 31 2021 2020 2020 Program Number of shares repurchased - - Cost of shares repurchased Allocated to retained earnings $ - $ - Allocated to capital - - Total cost of shares repurchased $ - $ - 2008 Program Number of shares repurchased - 978 Cost of shares repurchased Allocated to retained earnings $ - $ 5,760 Allocated to capital - 480 Total cost of shares repurchased $ - $ 6,240

Income (Loss) Per Share (Tables

Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
PER SHARE DATA:
Basic and diluted earnings per share calculation data	Three Months Ended March 31 2021 2020 Basic Income (Loss) Per Share Net income (loss) $ 2,267,703 $ (1,043,826 ) Weighted average shares outstanding 5,304,885 5,306,720 Basic income (loss) per share $ 0.43 $ (0.20 ) Three Months Ended March 31 2021 2020 Diluted Income (Loss) Per Share Net income (loss) $ 2,267,703 $ (1,043,826 ) Weighted average shares outstanding 5,304,885 5,306,720 Effect of diluted securities - - Diluted shares outstanding 5,304,885 5,306,720 Diluted income (loss) per share $ 0.43 $ (0.20 )

Real Estate Held For Sale, Ne_2

Real Estate Held For Sale, Net and Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment, Net [Abstract]
Real Estate Held For Sale, Net and Property and Equipment, Net	March 31 December 31 2021 2020 Real estate held for sale, located in Calabasas, California $ - $ 10,202,676 Accumulated depreciation and amortization - (1,867,659 ) Real estate held for sale, net $ - $ 8,335,017 Property and equipment consist of the following: March 31 December 31 2021 2020 Furniture, fixtures, equipment 2,188,132 2,191,411 Computer software 466,892 467,275 Accumulated depreciation and amortization (2,536,237 ) (2,423,617 ) Computer software under development 2,109,298 1,803,346 Property and equipment, net $ 2,228,085 $ 2,038,415

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair value of financial instruments	Level 1 Level 2 Level 3 Total March 31, 2021 Financial instruments: Available-for-sale fixed maturities: U.S. Treasury securities $ 10,883,041 $ - $ - $ 10,883,041 Corporate securities - 47,462,245 - 47,462,245 Agency mortgage-backed securities - 30,205,068 - 30,205,068 Equity securities 3,183,967 - - 3,183,967 Short-term investments 2,949,946 - - 2,949,946 Total financial instruments at fair value $ 17,016,954 $ 77,667,313 $ - $ 94,684,267 December 31, 2020 Financial instruments: Available-for-sale fixed maturities: U.S. Treasury securities $ 10,832,181 $ - $ - $ 10,832,181 Corporate securities - 46,451,905 - 46,451,905 Agency mortgage-backed securities - 26,125,608 - 26,125,608 Equity securities 2,746,706 - - 2,746,706 Short-term investments 200,000 - - 200,000 Total financial instruments at fair value $ 13,778,887 $ 72,577,513 $ - $ 86,356,400

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2021
Investments:
Investment income	Three Months ended March 31 2021 2020 Fixed maturities $ 528,167 $ 542,407 Equity securities 20,753 1,442 Short-term investments and cash equivalents 384 11,722 Gross investment income 549,304 555,571 Less investment expenses (34,581 ) (34,879 ) Net investment income 514,723 520,692 Net realized investment gains 55,399 1,114 Net realized gains on real estate sale 3,693,858 - Net unrealized investment gains (losses) on equity securities 151,667 (44,800 ) Net investment income, realized investment gains, realized gains on real estate sale and unrealized investment gains (losses) $ 4,415,647 $ 477,006
Fixed maturity investments	Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2021 Available-for-sale fixed maturities: U.S. Treasury securities $ 10,754,166 $ 180,757 $ (51,882 ) $ 10,883,041 Corporate securities 46,200,918 1,601,092 (339,765 ) 47,462,245 Agency mortgage-backed securities 29,564,648 705,489 (65,069 ) 30,205,068 Held-to-maturity fixed securities: Certificates of deposits 798,000 - - 798,000 Total fixed maturities $ 87,317,732 $ 2,487,338 $ (456,716 ) $ 89,348,354 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2020 Available-for-sale fixed maturities: U.S. Treasury securities $ 10,596,808 $ 235,373 $ - $ 10,832,181 Corporate securities 44,159,926 2,347,826 (55,847 ) 46,451,905 Agency mortgage-backed securities 25,314,546 833,336 (22,274 ) 26,125,608 Held-to-maturity fixed securities: Certificates of deposits 798,000 - - 798,000 Total fixed maturities $ 80,869,280 $ 3,416,535 $ (78,121 ) $ 84,207,694
Unrealized gains (losses) on investments	March 31 December 31 2021 2020 Gross unrealized gains on fixed maturities $ 2,487,338 $ 3,416,535 Gross unrealized losses on fixed maturities (456,716 ) (78,121 ) Net unrealized gains on fixed maturities 2,030,622 3,338,414 Deferred federal tax expense (426,430 ) (701,067 ) Net unrealized gains, net of deferred income taxes $ 1,604,192 $ 2,637,347
Components of investments in unrealized loss position for continuous period of time	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, 2021 U.S. Treasury securities $ 3,691,882 $ (51,882 ) 3 $ - $ - - Corporate securities 9,841,887 (320,480 ) 14 891,000 (19,285 ) 1 Agency mortgage-backed securities 7,990,649 (65,069 ) 11 - - - Total debt securities 21,524,418 (437,431 ) 28 891,000 (19,285 ) 1 Equity securities 608,807 (24,884 ) 34 10,972 (749 ) 2 Total $ 22,133,225 $ (462,315 ) 62 $ 901,972 $ (20,034 ) 3 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, 2020 Corporate securities 2,101,986 (55,847 ) 2 - - - Agency mortgage-backed securities 3,223,329 (22,274 ) 12 - - - Total debt securities 5,325,315 (78,121 ) 14 - - - Equity securities 723,346 (37,357 ) 25 - - - Total $ 6,048,661 $ (115,478 ) 39 $ - $ - -
Fixed maturities sold and called	Three Months Ended March 31 2021 2020 Fixed maturities securities sold Number of securities sold 1 1 Amortized cost of sold securities $ 249,995 $ 601,316 Realized gains on sales $ 2 $ 1,114 Fixed maturities securities called Number of securities called 2 - Amortized cost of called securities $ 1,374,901 $ - Realized gains on calls $ 99 $ -
Equity securities	March 31 December 31 2021 2020 Cost $ 2,834,034 $ 2,548,440 Unrealized gains 349,933 198,266 Fair market value of equity securities $ 3,183,967 $ 2,746,706
State held deposits	March 31 December 31 2021 2020 Certificates of deposit $ 200,000 $ 200,000 Short-term investments 200,000 200,000 Total state held deposits $ 400,000 $ 400,000
Short-term investments	March 31 December 31 2021 2020 U.S. Treasury bills $ 2,749,946 $ - Certificates of deposit 200,000 200,000 Total short-term investments $ 2,949,946 $ 200,000

Unpaid Losses and Loss Adjust_2

Unpaid Losses and Loss Adjustment Expenses (Tables)	3 Months Ended
	Mar. 31, 2021
Unpaid Losses And Loss Adjustment Expenses
Loss and loss adjustment expense reserves	Three Months Ended March 31 2021 2020 Reserve for unpaid losses and loss adjustment expenses at January 1 – gross of reinsurance $ 74,893,509 $ 55,066,480 Less reinsurance recoverable on unpaid losses and loss adjustment expenses 22,253,642 14,725,855 Reserve for unpaid losses and loss adjustment expenses at January 1 – net of reinsurance 52,639,867 40,340,625 Incurred losses and loss adjustment expenses: Provision for insured events of current year 6,757,564 5,161,176 Development of insured events of prior years (1,172,351 ) 716,209 Total incurred losses and loss adjustment expenses 5,585,213 5,877,385 Loss and loss adjustment expense payments: Attributable to insured events of the current year 2,545,181 1,444,009 Attributable to insured events of prior years 3,410,932 4,034,155 Total payments 5,956,113 5,478,164 Reserve for unpaid losses and loss adjustment expenses at March 31 – net of reinsurance 52,268,967 40,739,846 Reinsurance recoverable on unpaid losses and loss adjustment expenses 22,133,366 15,399,752 Reserve for unpaid losses and loss adjustment expenses at March 31 – gross of reinsurance $ 74,402,333 $ 56,139,598

Repurchase of Common Stock - _3

Repurchase of Common Stock - Effects on Stockholders' Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
2020 Program
Number of shares repurchased	0	0
Cost of shares repurchased	$ 0	$ 0
2020 Program | Retained Earnings
Cost of shares repurchased	0	0
2020 Program | Capital
Cost of shares repurchased	$ 0	$ 0
2008 Program
Number of shares repurchased	0	978
Cost of shares repurchased	$ 0	$ 5,760
2008 Program | Retained Earnings
Cost of shares repurchased	0	480
2008 Program | Capital
Cost of shares repurchased	$ 0	$ 6,240

Repurchase of Common Stock - _4

Repurchase of Common Stock - Effects on Stockholders' Equity (Details Narrative)	Mar. 31, 2021shares
Stockholders' Equity Note [Abstract]
Shares remaining for repurchase	4,995,507

Loss Per Share (Details)

Loss Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Basic Income (Loss) Per Share:
Net Income (Loss)	$ 2,267,703	$ (1,043,826)
Weighted average shares outstanding	5,304,885	5,306,720
Basic income (loss) per share	$ 0.43	$ (0.20)
Diluted Income (Loss) Per Share:
Net Income (Loss)	$ 2,267,703	$ (1,043,826)
Weighted average shares outstanding	5,304,885	5,306,720
Diluted income (loss) per share	$ 0.43	$ (0.20)

Accounting for Taxes (Details N

Accounting for Taxes (Details Narrative) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Valuation allowance	$ 10,346,084	$ 10,557,080
Federal
Deferred tax assets	7,510,566
Net operating loss carryforwards	35,764,600
State
Deferred tax assets	2,551,432
Net operating loss carryforwards

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Accumulated depreciation and amortization	$ (2,536,237)	$ (2,423,617)
Property and equipment, net	2,228,085	2,038,415
Real Estate Held for Sale
Property and equipment, gross	0	10,202,676
Accumulated depreciation and amortization	0	(1,867,659)
Property and equipment, net	0	8,335,017
Furniture, Fixtures, Equipment
Property and equipment, gross	2,188,132	2,191,411
Computer Software
Property and equipment, gross	466,892	467,275
Computer Software Under Development
Property and equipment, gross	$ 2,109,298	$ 1,803,346

Property and Equipment, Net (_2

Property and Equipment, Net (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property, Plant and Equipment, Net [Abstract]
Depreciation and amortization	$ 121,727	$ 188,085
Rental revenue	13,806	53,290
Operating expenses	95,964	190,097
Net realized gains on real estate sale	3,693,858	$ 0
Proceeds from sale of building	$ 12,695,000
Monthly office rent expense	The Company has agreed to a lease, which expires on January 31, 2022, with Alliant for the second floor of the Calabasas Building with an initial base rent of approximately $52,637 per month, where the Company will continue to operate its corporate headquarters.

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
U.S. treasury securities	$ 10,883,041	$ 10,832,181
Corporate securities	47,462,245	46,451,905
Agency mortgage-backed securities	30,205,068	26,125,608
Equity securities	3,183,967	2,746,706
Short-term investments	2,949,946	200,000
Total financial instruments at fair value	94,684,267	86,356,400
Level 1
U.S. treasury securities	10,883,041	10,832,181
Corporate securities	0	0
Agency mortgage-backed securities	0	0
Equity securities	3,183,967	2,746,706
Short-term investments	2,949,946	200,000
Total financial instruments at fair value	17,016,954	13,778,887
Level 2
U.S. treasury securities	0	0
Corporate securities	47,462,245	46,451,905
Agency mortgage-backed securities	30,205,068	26,125,608
Equity securities	0	0
Short-term investments	0	0
Total financial instruments at fair value	77,667,313	72,577,513
Level 3
U.S. treasury securities	0	0
Corporate securities	0	0
Agency mortgage-backed securities	0	0
Equity securities	0	0
Short-term investments	0	0
Total financial instruments at fair value	$ 0	$ 0

Investments (Details)

Investments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Gross investment income	$ 549,304	$ 555,571
Investment expense	(34,581)	(34,879)
Investment income net of expenses	514,723	520,692
Net realized investment gains (losses)	55,399	1,114
Net realized gains on real estate sale	3,693,858	0
Net unrealized investment gains on equity securities	151,667	(44,800)
Net investment income, realized invesetment gains (losses), and unrealized investment gains on equity securities	4,415,647	477,006
Fixed Maturities
Gross investment income	528,167	542,407
Equity Securities
Gross investment income	20,753	1,442
Short-Term Investments and Cash Equivalents
Gross investment income	$ 384	$ 11,722

Investments (Details 1)

Investments (Details 1) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Amortized cost, fixed maturities, available for sale	$ 86,519,732	$ 80,071,280
Estimated fair value, fixed maturities, available for sale	88,550,354	83,409,694
Amortized cost, fixed maturities, held to maturity	798,000	798,000
Estimated fair value, fixed maturities, held to maturity	798,000	798,000
Fixed maturities, at amortized cost	87,317,732	80,869,280
Gross unrealized gains, fixed maturities	2,487,338	3,416,535
Gross unrealized losses, fixed maturities	(456,716)	(78,121)
Fixed maturities, at estimated fair value	89,348,354	84,207,694
U.S. Treasury Securities
Amortized cost, fixed maturities, available for sale	10,754,166	10,596,808
Gross unrealized gains, fixed maturities, available for sale	180,757	235,373
Gross unrealized losses, fixed maturities, available for sale	(51,882)	0
Estimated fair value, fixed maturities, available for sale	10,883,041	10,832,181
Corporate Securities
Amortized cost, fixed maturities, available for sale	46,200,918	44,159,926
Gross unrealized gains, fixed maturities, available for sale	1,601,092	2,347,826
Gross unrealized losses, fixed maturities, available for sale	(339,765)	(55,847)
Estimated fair value, fixed maturities, available for sale	47,462,245	46,451,905
Agency Mortgage-Backed Securities
Amortized cost, fixed maturities, available for sale	29,564,648	25,314,546
Gross unrealized gains, fixed maturities, available for sale	705,489	833,336
Gross unrealized losses, fixed maturities, available for sale	(65,069)	(22,274)
Estimated fair value, fixed maturities, available for sale	30,205,068	26,125,608
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

Investments (Details 2)

Investments (Details 2) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Investments:
Gross unrealized gains on fixed maturities	$ 2,487,338	$ 3,416,535
Gross unrealized losses on fixed maturities	(456,716)	(78,121)
Net unrealized gains on fixed maturities	2,030,622	3,338,414
Deferred federal tax expense	(426,430)	(701,067)
Net unrealized gains, net of deferred income taxes	$ 1,604,192	$ 2,637,347

Investments (Details 3)

Investments (Details 3)	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Fair value, less than 12 months	$ 22,133,225	$ 6,048,661
Gross unrealized losses, less than 12 months	$ (462,315)	$ (115,478)
Number of securities in unrealized loss positions for less than 12 months	62	39
Fair value, 12 months or longer	$ 901,972	$ 0
Gross unrealized losses, 12 months or longer	$ (20,034)	$ 0
Number of securities in unrealized loss positions for 12 months or longer	3	0
U.S. Treasury Securities
Fair value, less than 12 months	$ 3,691,882	$ 0
Gross unrealized losses, less than 12 months	$ (51,882)	$ 0
Number of securities in unrealized loss positions for less than 12 months	3	0
Fair value, 12 months or longer	$ 0	$ 0
Gross unrealized losses, 12 months or longer	$ 0	$ 0
Number of securities in unrealized loss positions for 12 months or longer	0	0
Corporate Securities
Fair value, less than 12 months	$ 9,841,887	$ 2,101,986
Gross unrealized losses, less than 12 months	$ (320,480)	$ (55,847)
Number of securities in unrealized loss positions for less than 12 months	14	2
Fair value, 12 months or longer	$ 891,000	$ 0
Gross unrealized losses, 12 months or longer	$ (19,285)	$ 0
Number of securities in unrealized loss positions for 12 months or longer	1	0
Agency Mortgage-Backed Securities
Fair value, less than 12 months	$ 7,990,649	$ 3,223,329
Gross unrealized losses, less than 12 months	$ (65,069)	$ (22,274)
Number of securities in unrealized loss positions for less than 12 months	11	12
Fair value, 12 months or longer	$ 0	$ 0
Gross unrealized losses, 12 months or longer	$ 0	$ 0
Number of securities in unrealized loss positions for 12 months or longer	0	0
Debt Securities
Fair value, less than 12 months	$ 21,524,418	$ 5,325,315
Gross unrealized losses, less than 12 months	$ (437,431)	$ (78,121)
Number of securities in unrealized loss positions for less than 12 months	28	14
Fair value, 12 months or longer	$ 891,000	$ 0
Gross unrealized losses, 12 months or longer	$ (19,285)	$ 0
Number of securities in unrealized loss positions for 12 months or longer	1	0
Equity Securities
Fair value, less than 12 months	$ 608,807	$ 723,346
Gross unrealized losses, less than 12 months	$ (24,884)	$ (37,357)
Number of securities in unrealized loss positions for less than 12 months	34	25
Fair value, 12 months or longer	$ 10,972	$ 0
Gross unrealized losses, 12 months or longer	$ (749)	$ 0
Number of securities in unrealized loss positions for 12 months or longer	2	0

Investments (Details 4)

Investments (Details 4)	3 Months Ended
	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)
Investments:
Sold securities - number	1	1
Sold securities - amortized cost	$ 249,995	$ 601,316
Sold securities - realized gain (loss)	$ 2	$ 1,114
Called securities - number	2	0
Called securities - amortized cost	$ 1,374,901	$ 0
Called securities - realized gain (loss)	$ 99	$ 0

Investments (Details 5)

Investments (Details 5) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Investments:
Cost	$ 2,834,034	$ 2,548,440
Unrealized loss	349,933	198,266
Fair market value of equity securities	$ 3,183,967	$ 2,746,706

Investments (Details 6)

Investments (Details 6) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Investments:
Certificates of deposit	$ 200,000	$ 200,000
Short-term investments	200,000	200,000
Total state held deposits	$ 400,000	$ 400,000

Investments (Details 7)

Investments (Details 7) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Investments:
U.S. Treasury bills	$ 2,749,946	$ 0
Certificates of deposit	200,000	200,000
Total short-term investments	$ 2,949,946	$ 200,000

Investments (Details Narrative)

Investments (Details Narrative) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Investments:
Security pledged as collateral, fair value	$ 821,000
Security pledged as collateral, cost	788,858
Brokered certificates of deposit	$ 598,000	$ 598,000

Unpaid Losses And Loss Adjust_3

Unpaid Losses And Loss Adjustment Expenses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
Unpaid Losses And Loss Adjustment Expenses
Gross reserves	$ 74,402,333	$ 56,139,598	$ 74,893,509	$ 55,066,480
Reinsurance recoverable on unpaid losses and loss adjustment expenses	22,133,366	15,399,752	22,253,642	14,725,855
Net reserves	52,268,967	40,739,846	$ 52,639,867	$ 40,340,625
Incurred losses and loss adjustment expenses:
Current accident year	6,757,564	5,161,176
Prior accident years	(1,172,351)	716,209
Incurred losses and loss adjustment expenses	5,585,213	5,877,385
Paid losses and loss adjustment expenses:
Current accident year	2,545,181	1,444,009
Prior accident years	3,410,932	4,034,155
Total payment losses and loss adjustment expenses	$ 5,956,113	$ 5,478,164