Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Feb. 04, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | US Alliance Corp | |
Entity Central Index Key | 1,463,913 | |
Trading Symbol | usac | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 7,677,252 | |
Entity Public Float | $ 0 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Shell Company | false | |
Entity Ex Transition Period | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Available for sale securities | $ 37,869,778 | $ 33,609,215 |
Policy loans | 56,539 | 33,975 |
Total investments | 37,926,317 | 33,643,190 |
Cash and cash equivalents | 2,077,646 | 651,809 |
Investment income due and accrued | 286,890 | 214,998 |
Reinsurance related assets | 161,846 | 249,879 |
Deferred acquisition costs, net | 2,757,404 | 2,963,057 |
Value of business acquired, net | 580,297 | 600,601 |
Property, equipment and software, net | 54,078 | 221,077 |
Goodwill | 277,542 | 277,542 |
Other assets | 406,969 | 166,184 |
Total assets | 44,528,989 | 38,988,337 |
Liabilities: | ||
Deposit-type contracts | 16,626,218 | 13,448,891 |
Policyholder benefit reserves | 14,697,519 | 11,488,979 |
Dividend accumulation | 176,056 | |
Advance premiums | 56,736 | 7,507 |
Total policy liabilities | 31,556,529 | 24,945,377 |
Accounts payable and accrued expenses | 311,082 | 98,382 |
Other liabilities | 28,712 | 8,876 |
Total liabilities | 31,896,323 | 25,052,635 |
Shareholders' Equity: | ||
Common stock, $0.10 par value. Authorized 20,000,000 shares; issued and outstanding 7,650,551 and 7,310,939 shares as of December 31, 2018 and December 31, 2017, respectively | 765,056 | 731,095 |
Additional paid-in capital | 22,989,443 | 21,280,437 |
Accumulated deficit | (8,937,404) | (8,481,268) |
Accumulated other comprehensive income (loss) | (2,184,429) | 405,438 |
Total shareholders' equity | 12,632,666 | 13,935,702 |
Total liabilities and shareholders' equity | 44,528,989 | 38,988,337 |
Fixed Maturities [Member] | ||
Assets | ||
Available for sale securities | 26,882,239 | 22,945,700 |
Equities, Including Equity Securities and Other Equity Investments [Member] | ||
Assets | ||
Available for sale securities | $ 10,987,539 | $ 10,663,515 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Available for sale securities, amortized cost | $ 40,054,185 | $ 33,203,777 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 7,650,551 | 7,310,939 |
Common stock, shares outstanding (in shares) | 7,650,551 | 7,310,939 |
Fixed Maturities [Member] | ||
Available for sale securities, amortized cost | $ 27,957,697 | $ 22,439,705 |
Equities, Including Equity Securities and Other Equity Investments [Member] | ||
Available for sale securities, amortized cost | $ 12,096,488 | $ 10,764,072 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income: | ||
Premium income | $ 8,807,779 | $ 10,773,246 |
Net investment income | 1,477,403 | 817,989 |
Net realized gain (loss) on sale of securities | (4,499) | 430,565 |
Gain from purchase of Great Western Life | 1,140,996 | |
Other income | 37,608 | 50,057 |
Total income | 11,459,287 | 12,071,857 |
Expenses: | ||
Death claims | 959,005 | 823,545 |
Policyholder benefits | 3,957,090 | 3,485,564 |
Increase in policyholder reserves | 2,766,169 | 5,654,476 |
Commissions, net of deferrals | 637,425 | 521,155 |
Amortization of deferred acquisition costs | 454,906 | 321,451 |
Amortization of value of business acquired | 20,304 | 8,460 |
Salaries & benefits | 1,152,728 | 990,076 |
Other operating expenses | 1,967,796 | 1,316,162 |
Total expense | 11,915,423 | 13,120,889 |
Net loss | $ (456,136) | $ (1,049,032) |
Net loss per common share, basic and diluted (in dollars per share) | $ (0.06) | $ (0.18) |
Unrealized net holding gains (losses) arising during the period | $ (2,594,366) | $ 596,542 |
Reclassification adjustment for (gains) losses included in net loss | 4,499 | (430,565) |
Other comprehensive income (loss) | (2,589,867) | 165,977 |
Comprehensive loss | $ (3,046,003) | $ (883,055) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2016 | 5,565,943 | ||||
Balance at Dec. 31, 2016 | $ 556,595 | $ 18,017,163 | $ 239,461 | $ (7,432,236) | $ 11,380,983 |
Common stock issued, $7 per share (in shares) | 100,538 | ||||
Common stock issued, $7 per share | $ 10,054 | 693,711 | 703,765 | ||
Costs associated with common stock issued | (363,371) | (363,371) | |||
Common Stock issued, Northern Plains Capital Corporation merger (in shares) | 1,644,458 | ||||
Common Stock issued, Northern Plains Capital Corporation merger | $ 164,446 | 2,932,934 | 3,097,380 | ||
Other comprehensive income | 165,977 | 165,977 | |||
Net loss | (1,049,032) | (1,049,032) | |||
Balance (in shares) at Dec. 31, 2017 | 7,310,939 | ||||
Balance at Dec. 31, 2017 | $ 731,095 | 21,280,437 | 405,438 | (8,481,268) | 13,935,702 |
Common stock issued, $7 per share (in shares) | 339,612 | ||||
Common stock issued, $7 per share | $ 33,961 | 2,343,323 | 2,377,284 | ||
Costs associated with common stock issued | (634,317) | (634,317) | |||
Other comprehensive income | (2,589,867) | (2,589,867) | |||
Net loss | (456,136) | (456,136) | |||
Balance (in shares) at Dec. 31, 2018 | 7,650,551 | ||||
Balance at Dec. 31, 2018 | $ 765,056 | $ 22,989,443 | $ (2,184,429) | $ (8,937,404) | $ 12,632,666 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Common Stock [Member] | ||
Common stock, price per share (in dollars per share) | $ 7 | $ 7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (456,136) | $ (1,049,032) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 172,332 | 34,893 |
Net realized (gains) losses on the sale of securities | 4,499 | (430,565) |
Gain on bargain purchase | (1,140,996) | |
Amortization of investment securities, net | 42,628 | 42,941 |
Deferred acquisition costs capitalized | (285,187) | (269,266) |
Deferred acquisition costs amortized | 454,906 | 321,451 |
Value of business acquired amortized | 20,304 | 8,460 |
Interest credited on deposit type contracts | 579,038 | 247,692 |
(Increase) decrease in operating assets: | ||
Investment income due and accrued | (57,918) | (80,937) |
Reinsurance related assets | 88,033 | 57,529 |
Other assets | (240,785) | (105,029) |
Increase (decrease) in operating liabilities: | ||
Policyowner benefit reserves | 2,786,098 | 1,700,163 |
Advance premiums | 49,229 | 119,688 |
Other liabilities | 19,836 | 4,671 |
Accounts payable and accrued expenses | 208,187 | (9,536) |
Net cash provided by operating activities | 2,244,068 | 593,123 |
Cash Flows from Investing Activities: | ||
Purchase of fixed income investments | (4,643,809) | (14,992,862) |
Purchase of equity investments | (1,333,779) | (8,241,105) |
Proceeds from fixed income sales and repayments | 460,638 | 5,823,079 |
Proceeds from equity sales and repayments | 4,439,443 | |
Interest on policy loans | (2,762) | 636 |
Increase in policy loans | (7,107) | (599) |
Cash paid as purchase consideration | (500,000) | |
Assumed reinsurance from American Life & Security Corporation | 6,895,145 | |
Purchase of property, equipment and software | (5,334) | (11,121) |
Net cash used in investing activities | (5,159,762) | (5,007,757) |
Cash Flows from Financing Activities: | ||
Receipts on deposit-type contracts | 4,048,626 | 2,187,387 |
Withdrawals on deposit-type contracts | (1,450,062) | (607,083) |
Proceeds received from issuance of common stock, net of costs of issuance | 1,742,967 | 340,394 |
Net cash provided by financing activities | 4,341,531 | 1,920,698 |
Net increase (decrease) in cash and cash equivalents | 1,425,837 | (2,493,936) |
Cash and Cash Equivalents: | ||
Beginning | 651,809 | 3,145,745 |
Ending | 2,077,646 | 651,809 |
Supplemental Disclosure of Non-Cash Information | ||
Common stock issued on the acquisition of Northern Plains | 3,097,380 | |
Cost of reinsurance deferred on coinsurance transaction with American Life & Security Corp | 2,861,450 | |
Policyholder Contract Deposits [Member] | American Life & Security Corp [Member] | ||
Supplemental Disclosure of Non-Cash Information | ||
Deposit-type contract liabilities assumed | 6,193,587 | |
GWLIC [Member] | ||
Cash Flows from Investing Activities: | ||
Cash from acquisition of Great Western Life Insurance Company | 872,394 | |
Supplemental Disclosure of Non-Cash Information | ||
Securities acquired | ||
Northern Plains [Member] | ||
Cash Flows from Investing Activities: | ||
Cash from acquisition of Great Western Life Insurance Company | 1,079,627 | |
Northern Plains [Member] | Policyholder Contract Deposits [Member] | ||
Supplemental Disclosure of Non-Cash Information | ||
Deposit-type contract liabilities assumed | 2,029,138 | |
Fixed Maturities [Member] | GWLIC [Member] | ||
Supplemental Disclosure of Non-Cash Information | ||
Securities acquired | 1,380,606 | |
Fixed Maturities [Member] | Northern Plains [Member] | ||
Supplemental Disclosure of Non-Cash Information | ||
Securities acquired | 3,006,552 | |
Policyholder Contract Deposits [Member] | GWLIC [Member] | ||
Supplemental Disclosure of Non-Cash Information | ||
Deposit-type contract liabilities assumed | 35,569 | |
Equity Securities [Member] | Northern Plains [Member] | ||
Supplemental Disclosure of Non-Cash Information | ||
Securities acquired | $ 1,616,897 |
Note 1 - Description of Busines
Note 1 - Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | Note 1. Description of business April 24, 2009 4123 240, 66604. 785 228 0200 www.usalliancecorporation.com USAC has five June 9, 2011, April 23, 2012, April 23, 2012 August 1, 2017 December 14, 2018. The Company terminated its initial public offering on February 24, 2013. 2013, first May 1, 2013. 2014 2015. February 24, 2015, February 24, 2016. February 24, 2016, February 24, 2017 April 1, 2016. February 24, 2019. 4 th 2017, USALSC received a Certificate of Authority from the Kansas Insurance Department ("KID") effective January 2, 2012, first May 1, 2013. January 24, 2012. Our single pay life products (which include our Juvenile and Pre-Need products) accounted for 62% 2018 24% 2018 14% 2018 USALSC and DCLIC seek opportunities to develop and market additional products. Our business model also anticipates the acquisition by USAC and/or USALSC of other insurance and insurance related companies, including third Basis of presentation Principles of consolidation Area of operation: Cash and cash equivalents three one $250,000 no December 31, 2018. not not Property , equipment and software Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Computer equipment is depreciated over no 5 no 10 no 10 December 31, 2018 2017 Year Ended Year Ended December 31, December 31, 2018 2017 Computer $ 20,755 $ 20,755 Furniture and equipment 97,410 92,077 Software - 257,500 Accumulated depreciation (64,087 ) (149,255 ) Balance at end of period $ 54,078 $ 221,077 Pre-paid expenses: Investments Realized gains and losses on securities sold during the year are determined using the specific identification method and included in investment income. Investment income is recognized as earned. Management has a policy and process in place to identify securities that could potentially have an impairment that is other-than-temporary. The assessment of whether impairments have occurred is based on a case-by-case evaluation of underlying reasons for the decline in fair value. We consider severity of impairment, duration of impairment, forecasted recovery period, industry outlook, financial condition of the issuer, issuer credit ratings and whether we intend to sell a security or it is more likely than not The recognition of other-than-temporary impairment losses on debt securities is dependent on the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than not not not not not December 31, 2018 2017, no Value of business acquired not not may 30 In addition, we may Goodwill fourth may Reinsurance not not no December 31, 2018 2017. Benefit reserves Policy claims not not December 31, 2018 2017 $139,753 $90,832 Deposit-type contracts Liabilities for deferred annuity deposit-type contracts are included without reduction for potential surrender charges. This liability is equal to the accumulated account deposits, plus interest credited, and less policyholder withdrawals. The following table provides information about deferred annuity deposit-type contracts for the years ended December 31, 2018 2017. Year Ended Year ended December 31, December 31, 2018 2017 Balance at beginning of period $ 12,931,900 $ 3,398,170 Acquisition of Dakota Capital Life - 1,853,728 Assumed from American Life & Security Corp - 5,841,703 Acquisition of Great Western Life 35,659 - Deposits received 4,004,619 2,187,387 Interest credited 566,999 243,310 Withdrawals (1,338,011 ) (592,398 ) Balance at end of period $ 16,201,166 $ 12,931,900 The premium deposit funds credit interest based upon a fixed interest rate set by the Company. The Company has the ability to change this rate subject to minimums established by law or administrative regulation. Liabilities for premium deposit fund deposit-type contracts are included without reduction for potential surrender charges. This liability is equal to the accumulated account deposits, plus interest credited, and less withdrawals. The following table provides information about deferred annuity deposit-type contracts for the years ended December 31, 2018 2017. Year Ended Year ended December 31, December 31, 2018 2017 Balance at beginning of period $ 516,991 $ - Acquisition of Dakota Capital Life - 175,410 Assumed from American Life and Security Company (35,934 ) 351,884 Deposits received 44,007 - Interest credited 12,039 4,382 Withdrawals (112,051 ) (14,685 ) Balance at end of period $ 425,052 $ 516,991 Revenue recognition and related expenses Amounts received as payment for annuity contracts without life contingencies are recognized as deposits to policyholder account balances and included in future insurance policy benefits. Revenues from these contracts are comprised of fees earned for contract-holder services, which are recognized over the period of the contracts, and included in revenue. Deposits are shown as a financing activity in the Consolidated Statements of Cash Flows. Liabilities for future policy benefits are provided and acquisition costs are amortized by associating benefits and expenses with earned premiums to recognize related profits over the life of the contracts. Deferred acquisition costs not not may third may The following table provides information about deferred acquisition costs for the years ended December 31, 2018 2017, Year ended Year ended December 31, December 31, 2018 2017 Balance at beginning of period $ 2,963,057 $ 153,792 Deferred cost of reinsurance, American Life block acquisition - 2,861,450 Adjustment to American Life block acquisition (35,934 ) - Capitalization of commissions, sales and issue expenses 285,187 269,266 Amortization net of interest (454,906 ) (321,451 ) Balance at end of period $ 2,757,404 $ 2,963,057 Comprehensive loss Common stock and earnings (loss) per share: $0.10 20,000,000 December 31, 2018 2017 7,650,551 7,310,939 Earnings (loss) per share attributable to the Company’s common stockholders were computed based on the net loss and the weighted average number of shares outstanding during each year. The weighted average number of shares outstanding during the years ended December 31, 2018 2017 7,393,795 5,871,949 December 31, 2018 2017. Income taxes All of the Company’s tax returns are subject to U.S. federal, state and local income tax examinations by tax authorities. The Company had no December 31, 2018 2017. The tax years which remain subject to examination by taxing authorities are the years ended December 31, 2015 2018. Risk and uncertainties: - Use of Estimates: The preparation of consolidated financial statements in conformity with US GAAP, generally accepted accounting principles in the United States, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. - Regulatory Factors: The insurance laws of Kansas, North Dakota, and Montana give insurance regulators broad regulatory authority, including powers to (i) grant and revoke licenses to transact business; (ii) regulate and supervise trade practices and market conduct, (iii) establish guaranty associations; (iv) license agents; (v) approve policy forms; (vi) approve premium rates for some lines of business; (vii) establish reserve requirements; (viii) prescribe the form and content of required financial statements and reports; (ix) determine the reasonableness and adequacy of statutory capital and surplus; and ( x The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Reform Act") reshapes financial regulations in the United States by creating new regulators, regulating new markets and firms, and providing new enforcement powers to regulators. Virtually all major areas of the Reform Act continue to be subject to regulatory interpretation and implementation rules requiring rulemaking that may - Reinsurance: In order to manage the risk of financial exposure to adverse underwriting results, the Company reinsures a portion of its individual and group life risks with other insurance companies. The Company retains $35,000 $25,000 100% 25% $100,000 25% $25,000 three 100% 66% not - Interest Rate Risk: Interest rate fluctuations could impair an insurance company's ability to pay policyholder benefits with operating and investment cash flows, cash on hand and other cash sources. Annuity products expose the risk that changes in interest rates will reduce any spread, or the difference between the amounts that the insurance company is required to pay under the contracts and the amounts the insurance subsidiary is able to earn on its investments intended to support its obligations under the contracts. Spread is a key component of revenues. To the extent that interest rates credited are less than those generally available in the marketplace, policyholder lapses, policy loans and surrenders, and withdrawals of life insurance policies and annuity contracts may may may Increases in market interest rates may may If interest rates were to increase by 1%, 10.5% December 31, 2018. may Conversely, in a period of prolonged low interest rates it is difficult to invest assets and earn the rate of return necessary to support insurance products. Some central banks currently have negative interest rates which contributes to the current low interest rate environment. Policy lapses in excess of those actuarially anticipated would have a negative impact on our financial performance. Profitability could be reduced if lapse and surrender rates exceed the assumptions upon which the insurance policies were priced. Policy sales costs are deferred and recognized over the life of a policy. Excess policy lapses, however, cause the immediate expensing or amortizing of deferred policy sales costs. - Investment Risk: Our invested assets are subject to customary risks of defaults and changes in market values. Factors that may - Assumptions Risk: In the life insurance business, assumptions as to expected mortality, lapse rates and other factors in developing the pricing and other terms of life insurance products are made. These assumptions are based on industry experience and are reviewed and revised regularly by an outside actuary to reflect actual experience on a current basis. However, variation of actual experience from that assumed in developing such terms may Reclassifications no New accounting standards Revenue from Contracts with Customers In May 2014, not The following steps are applied in the updated guidance: ( 1 2 3 4 5 In July 2015, one March 31, 2018. December 31, 2019. not Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, This guidance is effective for fiscal years beginning after December 15, 2017. December 15, 2018. not The effect of the adoption of this guidance on the Company’s results of operations, financial position and liquidity is primarily dependent on the fair value of the available-for-sale equity securities in future periods and the existence of a deferred tax asset related to available-for-sale securities in future periods that have not Leases In February 2016, 12 two no not The updated guidance is effective for reporting periods beginning after December 15, 2018, December 15, 2019. not Contingent Put and Call Options in Debt Instruments In March 2016, not December 15, 2016. December 15, 2017. not Measurement of Credit Losses on Financial Instruments In June 2016, The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no The updated guidance is effective for reporting periods beginning after December 15, 2019. December 15, 2018. December 15, 2020. not Classification of Certain Cash Receipts and Cash Payment In August 2016, eight not December 15, 2017, December 15, 2018. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income On December 22, 2017, H.R.1, 2018 February 2018, Jobs Act and will improve the usefulness of information reported to financial statement users. This guidance is effective for fiscal years beginning after December 15, 2018, not Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, 2018 12 2018 12 not 2018 12 December 15, 2020, All other new accounting standards and updates of existing standards issued through the date of this filing were considered by management and did not |
Note 2 - Acquisitions
Note 2 - Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 2. On December 14, 2018 $500,000 The acquisition was accounted for under the acquisition method of accounting, which requires the consideration transferred and all assets and liabilities assumed to be recorded at fair value. The table below summarizes the fair value of GWLIC’s assets acquired and liabilities assumed and the gain from purchase: Preliminary amounts of indentifiable assets acquired and liablities assumed Investment securities $ 1,380,606 Cash 872,391 Other assets 26,669 Policyholder reserves (422,442 ) Deposit type contracts (35,659 ) Other liabilities (180,569 ) Total indentifiable net assets $ 1,640,996 Cash paid as purchase consideration (500,000 ) Gain from purchase of Great Western Life $ 1,140,996 On August 1, 2017 May 23, 2017 .5841 1,644,458 The Merger was accounted for under the acquisition method of accounting, which requires the consideration transferred and all assets and liabilities assumed to be recorded at fair value. The table below summarizes the fair value of the consideration transferred and the fair value of Northern Plains’ assets acquired and liabilities assumed: Fair value of US Alliance Corporation common stock issued as consideration $ 3,099,165 Amounts of indentifiable assets acquired and liablities assumed Investment securities $ 4,623,449 Cash 1,079,627 Value of business acquired 609,061 Other assets 60,080 Policyholder reserves (1,277,411 ) Deposit type contracts (2,029,138 ) Other liabilities (243,608 ) Total indentifiable net assets $ 2,822,060 Goodwill 277,105 Total amounts of indentifiable assets acquired and liabilties assumed $ 3,099,165 |
Note 3 - Investments
Note 3 - Investments | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Investment [Text Block] | Note 3. The amortized cost and fair value of available for sale and held to maturity investments as of December 31 December 31, 2018 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for sale: Fixed maturities: US Treasury securities $ 597,265 $ - $ (27,325 ) $ 569,940 Corporate bonds 16,847,623 43,051 (1,048,313 ) 15,842,361 Municipal bonds 6,559,854 118,890 (80,631 ) 6,598,113 Redeemable preferred stock 99,560 - (8,720 ) 90,840 Mortgage backed and asset backed securities 3,853,395 11,425 (83,835 ) 3,780,985 Total fixed maturities 27,957,697 173,366 (1,248,824 ) 26,882,239 Equities: Equities 12,096,488 31,505 (1,140,454 ) 10,987,539 Total available for sale $ 40,054,185 $ 204,871 $ (2,389,278 ) $ 37,869,778 December 31, 2017 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for sale: Fixed maturities: US Treasury securities $ 271,620 $ - $ (20,870 ) $ 250,750 Corporate bonds 11,857,191 309,754 (10,720 ) 12,156,225 Municipal bonds 6,134,323 230,842 (12,721 ) 6,352,444 Redeemable preferred stock 99,560 960 - 100,520 Mortgage backed and asset backed securities 4,077,011 32,726 (23,976 ) 4,085,761 Total fixed maturities 22,439,705 574,282 (68,287 ) 22,945,700 Equities: Equities 10,764,072 83,346 (183,903 ) 10,663,515 Total available for sale $ 33,203,777 $ 657,628 $ (252,190 ) $ 33,609,215 The amortized cost and fair value of debt securities as of December 31, 2018 2017, not not may may As of December 31, 2018 As of December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Amounts maturing in: After one year through five years $ 1,472,228 $ 1,462,745 $ 612,088 $ 617,562 After five years through ten years 2,101,676 2,055,173 1,910,307 1,945,454 More than 10 years 20,430,838 19,492,496 15,740,739 16,196,403 Redeemable preferred stocks 99,560 90,840 99,560 100,520 Mortgage backed and asset backed securities 3,853,395 3,780,985 4,077,011 4,085,761 Total amortized cost and fair value $ 27,957,697 $ 26,882,239 $ 22,439,705 $ 22,945,700 Proceeds from the sale of securities, maturities, and asset paydowns in 2018 2017 $460,638 $10,262,522, Years Ended December 31, 2018 2017 Gross gains $ 530 $ 499,568 Gross losses (5,029 ) (69,003 ) Net security gains (losses) $ (4,499 ) $ 430,565 Gross unrealized losses by duration are summarized as follows: Less than 12 months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss December 31, 2018 Available for sale: Fixed maturities: US Treasury securities $ 251,206 $ (27,325 ) $ - $ - $ 251,206 $ (27,325 ) Corporate bonds 11,743,222 (948,539 ) 830,239 (99,774 ) 12,573,461 (1,048,313 ) Municipal bonds 2,114,260 (51,267 ) 859,305 (29,364 ) 2,973,565 (80,631 ) Redeemable preferred stock 90,840 (8,720 ) - - 90,840 (8,720 ) Mortgage backed and asset backed securities 544,714 (6,656 ) 2,448,551 (77,179 ) 2,993,265 (83,835 ) Total fixed maturities 14,744,242 (1,042,507 ) 4,138,095 (206,317 ) 18,882,337 (1,248,824 ) Equities: Equities 3,312,528 (228,148 ) 7,440,504 (912,306 ) 10,753,032 (1,140,454 ) Total available for sale $ 18,056,770 $ (1,270,655 ) $ 11,578,599 $ (1,118,623 ) $ 29,635,369 $ (2,389,278 ) Less than 12 months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss December 31, 2017 Available for sale: Fixed maturities: US Treasury securities $ 250,750 $ (20,870 ) $ - $ - $ 250,750 $ (20,870 ) Corporate bonds 848,853 (5,733 ) 121,718 (4,987 ) 970,571 (10,720 ) Municipal bonds 735,257 (5,683 ) 192,962 (7,038 ) 928,219 (12,721 ) Mortgage backed and asset backed securities 2,056,887 (6,970 ) 654,936 (17,006 ) 2,711,823 (23,976 ) Total fixed maturities 3,891,747 (39,256 ) 969,616 (29,031 ) 4,861,363 (68,287 ) Equities: Equities 7,971,440 (105,946 ) 1,161,121 (77,957 ) 9,132,561 (183,903 ) Total available for sale $ 11,863,187 $ (145,202 ) $ 2,130,737 $ (106,988 ) $ 13,993,924 $ (252,190 ) Unrealized losses occur from market price declines that may The total number of securities in the investment portfolio in an unrealized loss position as of December 31, 2018 140, $2,389,278 140 97 28 7 3 2 2 1 no December 31, 2018 2017. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 4. The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. The Company uses a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: ● Level 1 ● Level 2 1 ● Level 3 Investments , available for sale third third The table below presents the amounts of assets measured at fair value on a recurring basis as of December 31, 2018 2017: December 31, 2018 Total Level 1 Level 2 Level 3 Available for sale: Fixed maturities: US Treasury securities $ 569,940 $ 569,940 $ - $ - Corporate bonds 15,842,361 - 15,642,361 200,000 Municipal bonds 6,598,113 - 6,598,113 - Redeemable preferred stock 90,840 - 90,840 - Mortgage backed and asset backed securities 3,780,985 - 3,780,985 - Total fixed maturities 26,882,239 569,940 26,112,299 200,000 Equities: Equities 10,987,539 10,987,539 - - Total $ 37,869,778 $ 11,557,479 $ 26,112,299 $ 200,000 December 31, 2017 Total Level 1 Level 2 Level 3 Available for sale: Fixed maturities: US Treasury securities $ 250,750 $ 250,750 $ - $ - Corporate bonds 12,156,225 - 11,956,225 200,000 Municipal bonds 6,352,444 - 6,352,444 - Redeemable preferred stock 100,520 - 100,520 - Mortgage backed and asset backed securities 4,085,761 - 4,085,761 - Total fixed maturities 22,945,700 250,750 22,494,950 200,000 Equities: Equities 10,663,515 10,663,515 - - Total $ 33,609,215 $ 10,914,265 $ 22,494,950 $ 200,000 The Company discloses the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not Cash and cash equivalents Investment income due and accrued: Policy loans Policyholder deposits in deposit- type contracts The estimated fair values of the Company’s financial assets and liabilities at December 31 December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and cash equivalents $ 2,077,646 $ 2,077,646 $ 651,809 $ 651,809 Investment income due and accrued 286,890 286,890 214,998 214,998 Investments, at fair value 37,926,317 37,926,317 33,643,190 33,643,190 Total Financial Assets $ 40,290,853 $ 40,290,853 $ 34,509,997 $ 34,509,997 Financial Liabilities: Policyholder deposits in deposit-type contracts $ 16,626,218 $ 15,361,164 $ 13,448,891 $ 12,508,470 Total Financial Liabilities $ 16,626,218 $ 15,361,164 $ 13,448,891 $ 12,508,470 |
Note 5 - Income Tax Provision
Note 5 - Income Tax Provision | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 5 . Income Tax Provision No December 31, 2018 2017 100% The net operating loss carryforwards for the Company are $12,938,533 $11,886,891 December 31, 2018 2017, 100 |
Note 6 - Reinsurance
Note 6 - Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Reinsurance [Text Block] | Note 6. A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of December 31, 2018 2017 December 31, 2018 2017 December 31, 2018 December 31, 2017 Balance Sheet Benefits and claim reserves ceded $ 64,451 $ 55,075 Amounts due from ceding company 97,395 194,804 Benefits and claim reserves assumed 11,521,657 10,372,638 Years ended December 31, 2018 December 31, 2017 Statements of Comprehensive Loss Ceded premium $ 629,196 $ 221,027 Assumed premium 4,863,227 7,826,619 Allowances on ceded premium 19,347 10,441 Allowances paid on assumed premium 401,147 2,238,386 Assumed benefits and policyholder reserve increases 4,078,572 7,207,979 The company currently reinsurers business in excess of its retention with General Re Life Corporation, Reliance Standard Life Insurance Company, Unified Life Insurance Company and Optimum Re Insurance Company. The Company also currently assumes business under agreements with Unified Life Insurance Company and American Life and Security Corporation. |
Note 7 - Lease Commitments
Note 7 - Lease Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | Note 7. Total rent expense was $39,166 $31,712 December 31, 2018 2017, January 1, 2019 three $37,824 2019 2020. September 30, 2020. $11,095 2019 $8,446 2020. |
Note 8 - Restricted Funds
Note 8 - Restricted Funds | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Restricted Assets Disclosure [Text Block] | Note 8. As required by Kansas law, US Alliance Life and Security Company maintains a trust account at Capital City Bank which is jointly owned by the Kansas Insurance Department. The life insurance company is required by the State of Kansas to hold $400,000 2015 $625,000 $625,000 December 31, 2018 2017, $300,000. |
Note 9 - Statutory Net Income a
Note 9 - Statutory Net Income and Surplus | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Statutory Accounting Practices Disclosure [Text Block] | Note 9. US Alliance Life and Security Company is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Kansas Insurance Department. Dakota Capital Life Insurance Company is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the North Dakota Insurance Department. US Alliance Life and Security Company - Montana is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Montana Insurance Department. Statutory practices primarily differ from GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. The following table summarizes the statutory net loss and statutory capital and surplus of US Alliance Life and Security Company, Dakota Capital Life Insurance Company, and US Alliance Life and Security Company - Montana as of December 31, 2018 2017 December 31, 2018 2017. Statutory Capital and Surplus as of December 31 December 31 2018 2017 US Alliance Life and Security Company $ 5,239,874 $ 4,186,381 Dakota Capital Life Insurance Company 1,373,390 1,337,081 US Alliance Life and Security Company - Montana 1,721,012 1.680.821 Statutory Net Income (Loss) for the years ended December 31, 2018 2017 US Alliance Life and Security Company $ 28,883 $ (1,727,462 ) Dakota Capital Life Insurance Company 70,393 (129,989 ) US Alliance Life and Security Company - Montana 42,957 65,112 The payment of dividends to US Alliance Corporation by US Alliance Life and Security Company is subject to limitations imposed by applicable insurance laws. For example, “extraordinary” dividends may not 12 10% December 31 12 December 31 The payment of dividends to US Alliance Life and Security Company by Dakota Capital Life Insurance Company and US Alliance Life and Security Company – Montana is subject to similar limitations. |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 10. All of the effects of subsequent events that provide additional evidence about conditions that existed at the balance sheet date, including the estimates inherent in the process of preparing the consolidated financial statements, are recognized in the consolidated financial statements. The Company does not not The Company has evaluated subsequent events through February 21, 2019, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation |
Consolidation, Policy [Policy Text Block] | Principles of consolidation |
Area of Operation, Policy [Policy Text Block] | Area of operation: |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents three one $250,000 no December 31, 2018. not not |
Property, Plant and Equipment, Policy [Policy Text Block] | Property , equipment and software Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Computer equipment is depreciated over no 5 no 10 no 10 December 31, 2018 2017 Year Ended Year Ended December 31, December 31, 2018 2017 Computer $ 20,755 $ 20,755 Furniture and equipment 97,410 92,077 Software - 257,500 Accumulated depreciation (64,087 ) (149,255 ) Balance at end of period $ 54,078 $ 221,077 |
Deferred Charges, Policy [Policy Text Block] | Pre-paid expenses: |
Marketable Securities, Policy [Policy Text Block] | Investments Realized gains and losses on securities sold during the year are determined using the specific identification method and included in investment income. Investment income is recognized as earned. Management has a policy and process in place to identify securities that could potentially have an impairment that is other-than-temporary. The assessment of whether impairments have occurred is based on a case-by-case evaluation of underlying reasons for the decline in fair value. We consider severity of impairment, duration of impairment, forecasted recovery period, industry outlook, financial condition of the issuer, issuer credit ratings and whether we intend to sell a security or it is more likely than not The recognition of other-than-temporary impairment losses on debt securities is dependent on the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than not not not not not December 31, 2018 2017, no |
Present Value of Future Insurance Profits, Policy [Policy Text Block] | Value of business acquired not not may 30 In addition, we may |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill fourth may |
Reinsurance Accounting Policy [Policy Text Block] | Reinsurance not not no December 31, 2018 2017. |
Future Policy Benefits Liability, Policy [Policy Text Block] | Benefit reserves |
Unpaid Policy Claims and Claims Adjustment Expense, Policy [Policy Text Block] | Policy claims not not December 31, 2018 2017 $139,753 $90,832 |
Deposit Contracts, Policy [Policy Text Block] | Deposit-type contracts Liabilities for deferred annuity deposit-type contracts are included without reduction for potential surrender charges. This liability is equal to the accumulated account deposits, plus interest credited, and less policyholder withdrawals. The following table provides information about deferred annuity deposit-type contracts for the years ended December 31, 2018 2017. Year Ended Year ended December 31, December 31, 2018 2017 Balance at beginning of period $ 12,931,900 $ 3,398,170 Acquisition of Dakota Capital Life - 1,853,728 Assumed from American Life & Security Corp - 5,841,703 Acquisition of Great Western Life 35,659 - Deposits received 4,004,619 2,187,387 Interest credited 566,999 243,310 Withdrawals (1,338,011 ) (592,398 ) Balance at end of period $ 16,201,166 $ 12,931,900 The premium deposit funds credit interest based upon a fixed interest rate set by the Company. The Company has the ability to change this rate subject to minimums established by law or administrative regulation. Liabilities for premium deposit fund deposit-type contracts are included without reduction for potential surrender charges. This liability is equal to the accumulated account deposits, plus interest credited, and less withdrawals. The following table provides information about deferred annuity deposit-type contracts for the years ended December 31, 2018 2017. Year Ended Year ended December 31, December 31, 2018 2017 Balance at beginning of period $ 516,991 $ - Acquisition of Dakota Capital Life - 175,410 Assumed from American Life and Security Company (35,934 ) 351,884 Deposits received 44,007 - Interest credited 12,039 4,382 Withdrawals (112,051 ) (14,685 ) Balance at end of period $ 425,052 $ 516,991 |
Insurance Premiums Revenue Recognition, Policy [Policy Text Block] | Revenue recognition and related expenses Amounts received as payment for annuity contracts without life contingencies are recognized as deposits to policyholder account balances and included in future insurance policy benefits. Revenues from these contracts are comprised of fees earned for contract-holder services, which are recognized over the period of the contracts, and included in revenue. Deposits are shown as a financing activity in the Consolidated Statements of Cash Flows. Liabilities for future policy benefits are provided and acquisition costs are amortized by associating benefits and expenses with earned premiums to recognize related profits over the life of the contracts. |
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | Deferred acquisition costs not not may third may The following table provides information about deferred acquisition costs for the years ended December 31, 2018 2017, Year ended Year ended December 31, December 31, 2018 2017 Balance at beginning of period $ 2,963,057 $ 153,792 Deferred cost of reinsurance, American Life block acquisition - 2,861,450 Adjustment to American Life block acquisition (35,934 ) - Capitalization of commissions, sales and issue expenses 285,187 269,266 Amortization net of interest (454,906 ) (321,451 ) Balance at end of period $ 2,757,404 $ 2,963,057 |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive loss |
Earnings Per Share, Policy [Policy Text Block] | Common stock and earnings (loss) per share: $0.10 20,000,000 December 31, 2018 2017 7,650,551 7,310,939 Earnings (loss) per share attributable to the Company’s common stockholders were computed based on the net loss and the weighted average number of shares outstanding during each year. The weighted average number of shares outstanding during the years ended December 31, 2018 2017 7,393,795 5,871,949 December 31, 2018 2017. |
Income Tax, Policy [Policy Text Block] | Income taxes All of the Company’s tax returns are subject to U.S. federal, state and local income tax examinations by tax authorities. The Company had no December 31, 2018 2017. The tax years which remain subject to examination by taxing authorities are the years ended December 31, 2015 2018. |
Use of Estimates, Policy [Policy Text Block] | - Use of Estimates: The preparation of consolidated financial statements in conformity with US GAAP, generally accepted accounting principles in the United States, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Regulatory Factors, Policy [Policy Text Block] | - Regulatory Factors: The insurance laws of Kansas, North Dakota, and Montana give insurance regulators broad regulatory authority, including powers to (i) grant and revoke licenses to transact business; (ii) regulate and supervise trade practices and market conduct, (iii) establish guaranty associations; (iv) license agents; (v) approve policy forms; (vi) approve premium rates for some lines of business; (vii) establish reserve requirements; (viii) prescribe the form and content of required financial statements and reports; (ix) determine the reasonableness and adequacy of statutory capital and surplus; and ( x The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Reform Act") reshapes financial regulations in the United States by creating new regulators, regulating new markets and firms, and providing new enforcement powers to regulators. Virtually all major areas of the Reform Act continue to be subject to regulatory interpretation and implementation rules requiring rulemaking that may |
Reinsurance Contract Risk, Policy [Policy Text Block] | - Reinsurance: In order to manage the risk of financial exposure to adverse underwriting results, the Company reinsures a portion of its individual and group life risks with other insurance companies. The Company retains $35,000 $25,000 100% 25% $100,000 25% $25,000 three 100% 66% not |
Interest Rate Risk, Policy [Policy Text Block] | - Interest Rate Risk: Interest rate fluctuations could impair an insurance company's ability to pay policyholder benefits with operating and investment cash flows, cash on hand and other cash sources. Annuity products expose the risk that changes in interest rates will reduce any spread, or the difference between the amounts that the insurance company is required to pay under the contracts and the amounts the insurance subsidiary is able to earn on its investments intended to support its obligations under the contracts. Spread is a key component of revenues. To the extent that interest rates credited are less than those generally available in the marketplace, policyholder lapses, policy loans and surrenders, and withdrawals of life insurance policies and annuity contracts may may may Increases in market interest rates may may If interest rates were to increase by 1%, 10.5% December 31, 2018. may Conversely, in a period of prolonged low interest rates it is difficult to invest assets and earn the rate of return necessary to support insurance products. Some central banks currently have negative interest rates which contributes to the current low interest rate environment. Policy lapses in excess of those actuarially anticipated would have a negative impact on our financial performance. Profitability could be reduced if lapse and surrender rates exceed the assumptions upon which the insurance policies were priced. Policy sales costs are deferred and recognized over the life of a policy. Excess policy lapses, however, cause the immediate expensing or amortizing of deferred policy sales costs. |
Investment Risk, Policy [Policy Text Block] | - Investment Risk: Our invested assets are subject to customary risks of defaults and changes in market values. Factors that may |
Assumption Risk, Policy [Policy Text Block] | - Assumptions Risk: In the life insurance business, assumptions as to expected mortality, lapse rates and other factors in developing the pricing and other terms of life insurance products are made. These assumptions are based on industry experience and are reviewed and revised regularly by an outside actuary to reflect actual experience on a current basis. However, variation of actual experience from that assumed in developing such terms may |
Reclassification, Policy [Policy Text Block] | Reclassifications no |
New Accounting Pronouncements, Policy [Policy Text Block] | New accounting standards Revenue from Contracts with Customers In May 2014, not The following steps are applied in the updated guidance: ( 1 2 3 4 5 In July 2015, one March 31, 2018. December 31, 2019. not Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, This guidance is effective for fiscal years beginning after December 15, 2017. December 15, 2018. not The effect of the adoption of this guidance on the Company’s results of operations, financial position and liquidity is primarily dependent on the fair value of the available-for-sale equity securities in future periods and the existence of a deferred tax asset related to available-for-sale securities in future periods that have not Leases In February 2016, 12 two no not The updated guidance is effective for reporting periods beginning after December 15, 2018, December 15, 2019. not Contingent Put and Call Options in Debt Instruments In March 2016, not December 15, 2016. December 15, 2017. not Measurement of Credit Losses on Financial Instruments In June 2016, The updated guidance also amends the current other-than-temporary impairment model for available-for-sale debt securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no The updated guidance is effective for reporting periods beginning after December 15, 2019. December 15, 2018. December 15, 2020. not Classification of Certain Cash Receipts and Cash Payment In August 2016, eight not December 15, 2017, December 15, 2018. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income On December 22, 2017, H.R.1, 2018 February 2018, Jobs Act and will improve the usefulness of information reported to financial statement users. This guidance is effective for fiscal years beginning after December 15, 2018, not Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, 2018 12 2018 12 not 2018 12 December 15, 2020, All other new accounting standards and updates of existing standards issued through the date of this filing were considered by management and did not |
Note 1 - Description of Busin_2
Note 1 - Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Year Ended Year Ended December 31, December 31, 2018 2017 Computer $ 20,755 $ 20,755 Furniture and equipment 97,410 92,077 Software - 257,500 Accumulated depreciation (64,087 ) (149,255 ) Balance at end of period $ 54,078 $ 221,077 |
Information About Deposit-type Contracts [Table Text Block] | Year Ended Year ended December 31, December 31, 2018 2017 Balance at beginning of period $ 12,931,900 $ 3,398,170 Acquisition of Dakota Capital Life - 1,853,728 Assumed from American Life & Security Corp - 5,841,703 Acquisition of Great Western Life 35,659 - Deposits received 4,004,619 2,187,387 Interest credited 566,999 243,310 Withdrawals (1,338,011 ) (592,398 ) Balance at end of period $ 16,201,166 $ 12,931,900 Year Ended Year ended December 31, December 31, 2018 2017 Balance at beginning of period $ 516,991 $ - Acquisition of Dakota Capital Life - 175,410 Assumed from American Life and Security Company (35,934 ) 351,884 Deposits received 44,007 - Interest credited 12,039 4,382 Withdrawals (112,051 ) (14,685 ) Balance at end of period $ 425,052 $ 516,991 |
Deferred Policy Acquisition Costs [Table Text Block] | Year ended Year ended December 31, December 31, 2018 2017 Balance at beginning of period $ 2,963,057 $ 153,792 Deferred cost of reinsurance, American Life block acquisition - 2,861,450 Adjustment to American Life block acquisition (35,934 ) - Capitalization of commissions, sales and issue expenses 285,187 269,266 Amortization net of interest (454,906 ) (321,451 ) Balance at end of period $ 2,757,404 $ 2,963,057 |
Note 2 - Acquisitions (Tables)
Note 2 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Preliminary amounts of indentifiable assets acquired and liablities assumed Investment securities $ 1,380,606 Cash 872,391 Other assets 26,669 Policyholder reserves (422,442 ) Deposit type contracts (35,659 ) Other liabilities (180,569 ) Total indentifiable net assets $ 1,640,996 Cash paid as purchase consideration (500,000 ) Gain from purchase of Great Western Life $ 1,140,996 Fair value of US Alliance Corporation common stock issued as consideration $ 3,099,165 Amounts of indentifiable assets acquired and liablities assumed Investment securities $ 4,623,449 Cash 1,079,627 Value of business acquired 609,061 Other assets 60,080 Policyholder reserves (1,277,411 ) Deposit type contracts (2,029,138 ) Other liabilities (243,608 ) Total indentifiable net assets $ 2,822,060 Goodwill 277,105 Total amounts of indentifiable assets acquired and liabilties assumed $ 3,099,165 |
Note 3 - Investments (Tables)
Note 3 - Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | December 31, 2018 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for sale: Fixed maturities: US Treasury securities $ 597,265 $ - $ (27,325 ) $ 569,940 Corporate bonds 16,847,623 43,051 (1,048,313 ) 15,842,361 Municipal bonds 6,559,854 118,890 (80,631 ) 6,598,113 Redeemable preferred stock 99,560 - (8,720 ) 90,840 Mortgage backed and asset backed securities 3,853,395 11,425 (83,835 ) 3,780,985 Total fixed maturities 27,957,697 173,366 (1,248,824 ) 26,882,239 Equities: Equities 12,096,488 31,505 (1,140,454 ) 10,987,539 Total available for sale $ 40,054,185 $ 204,871 $ (2,389,278 ) $ 37,869,778 December 31, 2017 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for sale: Fixed maturities: US Treasury securities $ 271,620 $ - $ (20,870 ) $ 250,750 Corporate bonds 11,857,191 309,754 (10,720 ) 12,156,225 Municipal bonds 6,134,323 230,842 (12,721 ) 6,352,444 Redeemable preferred stock 99,560 960 - 100,520 Mortgage backed and asset backed securities 4,077,011 32,726 (23,976 ) 4,085,761 Total fixed maturities 22,439,705 574,282 (68,287 ) 22,945,700 Equities: Equities 10,764,072 83,346 (183,903 ) 10,663,515 Total available for sale $ 33,203,777 $ 657,628 $ (252,190 ) $ 33,609,215 |
Investments Classified by Contractual Maturity Date [Table Text Block] | As of December 31, 2018 As of December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Amounts maturing in: After one year through five years $ 1,472,228 $ 1,462,745 $ 612,088 $ 617,562 After five years through ten years 2,101,676 2,055,173 1,910,307 1,945,454 More than 10 years 20,430,838 19,492,496 15,740,739 16,196,403 Redeemable preferred stocks 99,560 90,840 99,560 100,520 Mortgage backed and asset backed securities 3,853,395 3,780,985 4,077,011 4,085,761 Total amortized cost and fair value $ 27,957,697 $ 26,882,239 $ 22,439,705 $ 22,945,700 |
Realized Gain (Loss) on Investments [Table Text Block] | Years Ended December 31, 2018 2017 Gross gains $ 530 $ 499,568 Gross losses (5,029 ) (69,003 ) Net security gains (losses) $ (4,499 ) $ 430,565 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | Less than 12 months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss December 31, 2018 Available for sale: Fixed maturities: US Treasury securities $ 251,206 $ (27,325 ) $ - $ - $ 251,206 $ (27,325 ) Corporate bonds 11,743,222 (948,539 ) 830,239 (99,774 ) 12,573,461 (1,048,313 ) Municipal bonds 2,114,260 (51,267 ) 859,305 (29,364 ) 2,973,565 (80,631 ) Redeemable preferred stock 90,840 (8,720 ) - - 90,840 (8,720 ) Mortgage backed and asset backed securities 544,714 (6,656 ) 2,448,551 (77,179 ) 2,993,265 (83,835 ) Total fixed maturities 14,744,242 (1,042,507 ) 4,138,095 (206,317 ) 18,882,337 (1,248,824 ) Equities: Equities 3,312,528 (228,148 ) 7,440,504 (912,306 ) 10,753,032 (1,140,454 ) Total available for sale $ 18,056,770 $ (1,270,655 ) $ 11,578,599 $ (1,118,623 ) $ 29,635,369 $ (2,389,278 ) Less than 12 months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss December 31, 2017 Available for sale: Fixed maturities: US Treasury securities $ 250,750 $ (20,870 ) $ - $ - $ 250,750 $ (20,870 ) Corporate bonds 848,853 (5,733 ) 121,718 (4,987 ) 970,571 (10,720 ) Municipal bonds 735,257 (5,683 ) 192,962 (7,038 ) 928,219 (12,721 ) Mortgage backed and asset backed securities 2,056,887 (6,970 ) 654,936 (17,006 ) 2,711,823 (23,976 ) Total fixed maturities 3,891,747 (39,256 ) 969,616 (29,031 ) 4,861,363 (68,287 ) Equities: Equities 7,971,440 (105,946 ) 1,161,121 (77,957 ) 9,132,561 (183,903 ) Total available for sale $ 11,863,187 $ (145,202 ) $ 2,130,737 $ (106,988 ) $ 13,993,924 $ (252,190 ) |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | December 31, 2018 Total Level 1 Level 2 Level 3 Available for sale: Fixed maturities: US Treasury securities $ 569,940 $ 569,940 $ - $ - Corporate bonds 15,842,361 - 15,642,361 200,000 Municipal bonds 6,598,113 - 6,598,113 - Redeemable preferred stock 90,840 - 90,840 - Mortgage backed and asset backed securities 3,780,985 - 3,780,985 - Total fixed maturities 26,882,239 569,940 26,112,299 200,000 Equities: Equities 10,987,539 10,987,539 - - Total $ 37,869,778 $ 11,557,479 $ 26,112,299 $ 200,000 December 31, 2017 Total Level 1 Level 2 Level 3 Available for sale: Fixed maturities: US Treasury securities $ 250,750 $ 250,750 $ - $ - Corporate bonds 12,156,225 - 11,956,225 200,000 Municipal bonds 6,352,444 - 6,352,444 - Redeemable preferred stock 100,520 - 100,520 - Mortgage backed and asset backed securities 4,085,761 - 4,085,761 - Total fixed maturities 22,945,700 250,750 22,494,950 200,000 Equities: Equities 10,663,515 10,663,515 - - Total $ 33,609,215 $ 10,914,265 $ 22,494,950 $ 200,000 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and cash equivalents $ 2,077,646 $ 2,077,646 $ 651,809 $ 651,809 Investment income due and accrued 286,890 286,890 214,998 214,998 Investments, at fair value 37,926,317 37,926,317 33,643,190 33,643,190 Total Financial Assets $ 40,290,853 $ 40,290,853 $ 34,509,997 $ 34,509,997 Financial Liabilities: Policyholder deposits in deposit-type contracts $ 16,626,218 $ 15,361,164 $ 13,448,891 $ 12,508,470 Total Financial Liabilities $ 16,626,218 $ 15,361,164 $ 13,448,891 $ 12,508,470 |
Note 6 - Reinsurance (Tables)
Note 6 - Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Effects of Reinsurance [Table Text Block] | December 31, 2018 December 31, 2017 Balance Sheet Benefits and claim reserves ceded $ 64,451 $ 55,075 Amounts due from ceding company 97,395 194,804 Benefits and claim reserves assumed 11,521,657 10,372,638 Years ended December 31, 2018 December 31, 2017 Statements of Comprehensive Loss Ceded premium $ 629,196 $ 221,027 Assumed premium 4,863,227 7,826,619 Allowances on ceded premium 19,347 10,441 Allowances paid on assumed premium 401,147 2,238,386 Assumed benefits and policyholder reserve increases 4,078,572 7,207,979 |
Note 9 - Statutory Net Income_2
Note 9 - Statutory Net Income and Surplus (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Notes Tables | |
Statutory Accounting Practices Disclosure [Table Text Block] | Statutory Capital and Surplus as of December 31 December 31 2018 2017 US Alliance Life and Security Company $ 5,239,874 $ 4,186,381 Dakota Capital Life Insurance Company 1,373,390 1,337,081 US Alliance Life and Security Company - Montana 1,721,012 1.680.821 Statutory Net Income (Loss) for the years ended December 31, 2018 2017 US Alliance Life and Security Company $ 28,883 $ (1,727,462 ) Dakota Capital Life Insurance Company 70,393 (129,989 ) US Alliance Life and Security Company - Montana 42,957 65,112 |
Note 1 - Description of Busin_3
Note 1 - Description of Business and Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Wholly-Owned Operating Subsidiaries | 5 | |
Cash, FDIC Insured Amount | $ 250,000 | |
Cash, Uninsured Amount | 0 | |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total | $ 0 | $ 0 |
Present Value of Future Insurance Profits, Weighted Average Amortization Period | 30 years | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Ending Balance | $ 0 | $ 0 |
Common Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued, Total | 7,650,551 | 7,310,939 |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 7,393,795 | 5,871,949 |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 |
Interest Rate Risk, Fixed Income Securities, Impact of 1 Percent Increase in Interest Rate | 10.50% | |
Pioneer Whole Life [Member] | ||
Reinsurance Retention Policy, Amount Retained | $ 35,000 | |
Solid Solutions Term Life Series and Sound Solutions Term Life Series [Member] | ||
Reinsurance Retention Policy, Amount Retained | $ 25,000 | |
Accidental Death Benefit Rider [Member] | ||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | |
Group Life Products [Member] | ||
Reinsurance Retention Policy, Amount Retained | $ 100,000 | |
Reinsurance Retention Policy, Excess Retention, Percentage | 25.00% | |
Group Accidental Death and Dismemberment [Member] | ||
Reinsurance Retention Policy, Amount Retained | $ 25,000 | |
Reinsurance Retention Policy, Excess Retention, Percentage | 25.00% | |
Group Disability [Member] | ||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | |
Critical Illness [Member] | ||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 66.00% | |
Policyholder Benefit Reserves [Member] | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information, Other Policy Claim and Benefit Payable | $ 139,753 | $ 90,832 |
Computer Equipment [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Software and Software Development Costs [Member] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Product Concentration Risk [Member] | Direct Premium Revenue [Member] | Single Pay Life Products [Member] | ||
Concentration Risk, Percentage | 62.00% | |
Product Concentration Risk [Member] | Direct Premium Revenue [Member] | Individual Life Products [Member] | ||
Concentration Risk, Percentage | 24.00% | |
Product Concentration Risk [Member] | Direct Premium Revenue [Member] | Group Life Products [Member] | ||
Concentration Risk, Percentage | 14.00% |
Note 1 - Description of Busin_4
Note 1 - Description of Business and Significant Accounting Policies - Major Categories of Depreciable Assets and Respective Book Values (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated depreciation | $ (64,087) | $ (149,255) |
Property, equipment and software, net | 54,078 | 221,077 |
Computer Equipment [Member] | ||
Property, equipment and software, gross | 20,755 | 20,755 |
Furniture and Equipment [Member] | ||
Property, equipment and software, gross | 97,410 | 92,077 |
Software and Software Development Costs [Member] | ||
Property, equipment and software, gross | $ 257,500 |
Note 1 - Description of Busin_5
Note 1 - Description of Business and Significant Accounting Policies - Information About Deposit-type Contracts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Balance at beginning of period | $ 13,448,891 | |
Receipts on deposit-type contracts | 4,048,626 | $ 2,187,387 |
Interest credited | 579,038 | 247,692 |
Withdrawals on deposit-type contracts | (1,450,062) | (607,083) |
Balance at end of period | 16,626,218 | 13,448,891 |
Deferred Annuity Deposit-type Contracts [Member] | ||
Balance at beginning of period | 12,931,900 | 3,398,170 |
Assumed from American Life & Security Corp | 5,841,703 | |
Receipts on deposit-type contracts | 4,004,619 | 2,187,387 |
Interest credited | 566,999 | 243,310 |
Withdrawals on deposit-type contracts | (1,338,011) | (592,398) |
Balance at end of period | 16,201,166 | 12,931,900 |
Deferred Annuity Deposit-type Contracts [Member] | Dakota Capital Life [Member] | ||
Acquisition of Dakota Capital Life | 1,853,728 | |
Deferred Annuity Deposit-type Contracts [Member] | GWLIC [Member] | ||
Acquisition of Dakota Capital Life | 35,659 | |
Premium Deposit Fund Deposit-type Contracts [Member] | ||
Balance at beginning of period | 516,991 | |
Assumed from American Life & Security Corp | (35,934) | 351,884 |
Receipts on deposit-type contracts | 44,007 | |
Interest credited | 12,039 | 4,382 |
Withdrawals on deposit-type contracts | (112,051) | (14,685) |
Balance at end of period | 425,052 | 516,991 |
Premium Deposit Fund Deposit-type Contracts [Member] | Dakota Capital Life [Member] | ||
Acquisition of Dakota Capital Life | $ 175,410 |
Note 1 - Description of Busin_6
Note 1 - Description of Business and Significant Accounting Policies - Information About Deferred Acquisition Costs (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Balance at beginning of period | $ 2,963,057 | $ 153,792 |
Deferred cost of reinsurance, American Life block acquisition | 2,861,450 | |
Adjustment to American Life block acquisition | (35,934) | |
Capitalization of commissions, sales and issue expenses | 285,187 | 269,266 |
Amortization net of interest | (454,906) | (321,451) |
Balance at end of period | $ 2,757,404 | $ 2,963,057 |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) | Dec. 14, 2018USD ($) | Aug. 01, 2017shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Payments to Acquire Businesses, Gross | $ 500,000 | |||
GWLIC [Member] | ||||
Payments to Acquire Businesses, Gross | $ 500,000 | |||
Northern Plains [Member] | ||||
Business Acquisition, Equity Interest Issued or Issuable, Exchange Ratio | 0.5841 | |||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 1,644,458 |
Note 2 - Acquisitions - Fair Va
Note 2 - Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) | Dec. 14, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash paid as purchase consideration | $ (500,000) | ||
Gain from purchase of Great Western Life | 1,140,996 | ||
Fair value of US Alliance Corporation common stock issued as consideration | $ 3,099,165 | ||
Goodwill | $ 277,542 | $ 277,542 | |
GWLIC [Member] | |||
Investment securities | 1,380,606 | ||
Cash | 872,391 | ||
Other assets | 26,669 | ||
Policyholder reserves | (422,442) | ||
Deposit type contracts | (35,659) | ||
Other liabilities | (180,569) | ||
Total indentifiable net assets | 1,640,996 | ||
Cash paid as purchase consideration | (500,000) | ||
Gain from purchase of Great Western Life | 1,140,996 | ||
Northern Plains [Member] | |||
Investment securities | 4,623,449 | ||
Cash | 1,079,627 | ||
Other assets | 60,080 | ||
Policyholder reserves | (1,277,411) | ||
Deposit type contracts | (2,029,138) | ||
Other liabilities | (243,608) | ||
Total indentifiable net assets | 2,822,060 | ||
Value of business acquired | 609,061 | ||
Goodwill | 277,105 | ||
Total amounts of indentifiable assets acquired and liabilties assumed | $ 3,099,165 |
Note 3 - Investments (Details T
Note 3 - Investments (Details Textual) | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Proceeds from Sale, Maturity and Collection of Investments, Total | $ 460,638 | $ 10,262,522 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 140 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax, Total | $ 2,389,278 | 252,190 |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total | $ 0 | $ 0 |
Fixed Income Securities [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 97 | |
Collateralized Mortgage Backed Securities [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 28 | |
Common Stock [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 7 | |
Preferred Stock [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 3 | |
Corporate Debt Securities [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 2 | |
Preferred Stock Index Fund [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 2 | |
Senior Loan Fund [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 1 |
Note 3 - Investments - Amortize
Note 3 - Investments - Amortized Cost and Fair Value of Available-for-sale and Held-to-maturity Investments (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Cost or Amortized Cost | $ 40,054,185 | $ 33,203,777 |
Gross Unrealized Gains | 204,871 | 657,628 |
Gross Unrealized Losses | (2,389,278) | (252,190) |
Investments in available-for-sale securities, at fair value | 37,869,778 | 33,609,215 |
Fixed Maturities [Member] | ||
Cost or Amortized Cost | 27,957,697 | 22,439,705 |
Gross Unrealized Gains | 173,366 | 574,282 |
Gross Unrealized Losses | (1,248,824) | (68,287) |
Investments in available-for-sale securities, at fair value | 26,882,239 | 22,945,700 |
Equity Securities [Member] | ||
Cost or Amortized Cost | 12,096,488 | 10,764,072 |
Gross Unrealized Gains | 31,505 | 83,346 |
Gross Unrealized Losses | (1,140,454) | (183,903) |
Investments in available-for-sale securities, at fair value | 10,987,539 | 10,663,515 |
US Treasury Securities [Member] | Fixed Maturities [Member] | ||
Cost or Amortized Cost | 597,265 | 271,620 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (27,325) | (20,870) |
Investments in available-for-sale securities, at fair value | 569,940 | 250,750 |
Corporate Debt Securities [Member] | Fixed Maturities [Member] | ||
Cost or Amortized Cost | 16,847,623 | 11,857,191 |
Gross Unrealized Gains | 43,051 | 309,754 |
Gross Unrealized Losses | (1,048,313) | (10,720) |
Investments in available-for-sale securities, at fair value | 15,842,361 | 12,156,225 |
US States and Political Subdivisions Debt Securities [Member] | Fixed Maturities [Member] | ||
Cost or Amortized Cost | 6,559,854 | 6,134,323 |
Gross Unrealized Gains | 118,890 | 230,842 |
Gross Unrealized Losses | (80,631) | (12,721) |
Investments in available-for-sale securities, at fair value | 6,598,113 | 6,352,444 |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ||
Cost or Amortized Cost | 99,560 | 99,560 |
Gross Unrealized Gains | 960 | |
Gross Unrealized Losses | (8,720) | |
Investments in available-for-sale securities, at fair value | 90,840 | 100,520 |
Collateralized Mortgage Backed Securities [Member] | Fixed Maturities [Member] | ||
Cost or Amortized Cost | 3,853,395 | 4,077,011 |
Gross Unrealized Gains | 11,425 | 32,726 |
Gross Unrealized Losses | (83,835) | (23,976) |
Investments in available-for-sale securities, at fair value | $ 3,780,985 | $ 4,085,761 |
Note 3 - Investments - Amorti_2
Note 3 - Investments - Amortized Cost and Fair Value of Debt Securities By Contractual Maturity (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
After one year through five years, amortized cost | $ 1,472,228 | $ 612,088 |
After one year through five years, fair value | 1,462,745 | 617,562 |
After five years through ten years, amortized cost | 2,101,676 | 1,910,307 |
After five years through ten years, fair value | 2,055,173 | 1,945,454 |
More than 10 years, amortized cost | 20,430,838 | 15,740,739 |
More than 10 years, fair value | 19,492,496 | 16,196,403 |
Total amortized cost and fair value | 27,957,697 | 22,439,705 |
Total amortized cost and fair value | 26,882,239 | 22,945,700 |
Redeemable Preferred Stock [Member] | ||
Debt securities, amortized cost | 99,560 | 99,560 |
Debt securities, fair value | 90,840 | 100,520 |
Collateralized Mortgage Backed Securities [Member] | ||
Debt securities, amortized cost | 3,853,395 | 4,077,011 |
Debt securities, fair value | $ 3,780,985 | $ 4,085,761 |
Note 3 - Investments - Realized
Note 3 - Investments - Realized Gains and Losses Related to the Sale of Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Gross gains | $ 530 | $ 499,568 |
Gross losses | (5,029) | (69,003) |
Net security gains (losses) | $ (4,499) | $ 430,565 |
Note 3 - Investments - Gross Un
Note 3 - Investments - Gross Unrealized Losses (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities, less than 12 months, fair value | $ 18,056,770 | $ 11,863,187 |
Available-for-sale securities, less than 12 months, unrealized loss | (1,270,655) | (145,202) |
Available-for-sale securities, greater than 12 months, fair value | 11,578,599 | 2,130,737 |
Available-for-sale securities, greater than 12 months, unrealized loss | (1,118,623) | (106,988) |
Available-for-sale securities, fair value | 29,635,369 | 13,993,924 |
Available-for-sale securities, unrealized loss | (2,389,278) | (252,190) |
Fixed Maturities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 14,744,242 | 3,891,747 |
Available-for-sale securities, less than 12 months, unrealized loss | (1,042,507) | (39,256) |
Available-for-sale securities, greater than 12 months, fair value | 4,138,095 | 969,616 |
Available-for-sale securities, greater than 12 months, unrealized loss | (206,317) | (29,031) |
Available-for-sale securities, fair value | 18,882,337 | 4,861,363 |
Available-for-sale securities, unrealized loss | (1,248,824) | (68,287) |
Fixed Maturities [Member] | US Treasury Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 251,206 | 250,750 |
Available-for-sale securities, less than 12 months, unrealized loss | (27,325) | (20,870) |
Available-for-sale securities, greater than 12 months, fair value | ||
Available-for-sale securities, greater than 12 months, unrealized loss | ||
Available-for-sale securities, fair value | 251,206 | 250,750 |
Available-for-sale securities, unrealized loss | (27,325) | (20,870) |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 11,743,222 | 848,853 |
Available-for-sale securities, less than 12 months, unrealized loss | (948,539) | (5,733) |
Available-for-sale securities, greater than 12 months, fair value | 830,239 | 121,718 |
Available-for-sale securities, greater than 12 months, unrealized loss | (99,774) | (4,987) |
Available-for-sale securities, fair value | 12,573,461 | 970,571 |
Available-for-sale securities, unrealized loss | (1,048,313) | (10,720) |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 2,114,260 | 735,257 |
Available-for-sale securities, less than 12 months, unrealized loss | (51,267) | (5,683) |
Available-for-sale securities, greater than 12 months, fair value | 859,305 | 192,962 |
Available-for-sale securities, greater than 12 months, unrealized loss | (29,364) | (7,038) |
Available-for-sale securities, fair value | 2,973,565 | 928,219 |
Available-for-sale securities, unrealized loss | (80,631) | (12,721) |
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 90,840 | |
Available-for-sale securities, less than 12 months, unrealized loss | (8,720) | |
Available-for-sale securities, greater than 12 months, fair value | ||
Available-for-sale securities, greater than 12 months, unrealized loss | ||
Available-for-sale securities, fair value | 90,840 | |
Available-for-sale securities, unrealized loss | (8,720) | |
Fixed Maturities [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 544,714 | 2,056,887 |
Available-for-sale securities, less than 12 months, unrealized loss | (6,656) | (6,970) |
Available-for-sale securities, greater than 12 months, fair value | 2,448,551 | 654,936 |
Available-for-sale securities, greater than 12 months, unrealized loss | (77,179) | (17,006) |
Available-for-sale securities, fair value | 2,993,265 | 2,711,823 |
Available-for-sale securities, unrealized loss | (83,835) | (23,976) |
Equity Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 3,312,528 | 7,971,440 |
Available-for-sale securities, less than 12 months, unrealized loss | (228,148) | (105,946) |
Available-for-sale securities, greater than 12 months, fair value | 7,440,504 | 1,161,121 |
Available-for-sale securities, greater than 12 months, unrealized loss | (912,306) | (77,957) |
Available-for-sale securities, fair value | 10,753,032 | 9,132,561 |
Available-for-sale securities, unrealized loss | $ (1,140,454) | $ (183,903) |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Investments in available-for-sale securities, at fair value | $ 37,869,778 | $ 33,609,215 |
Fair Value, Measurements, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 37,869,778 | 33,609,215 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | 11,557,479 | 10,914,265 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 26,112,299 | 22,494,950 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | 200,000 | 200,000 |
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 100,520 | |
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 100,520 | |
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Fixed Maturities [Member] | ||
Investments in available-for-sale securities, at fair value | 26,882,239 | 22,945,700 |
Fixed Maturities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 26,882,239 | 22,945,700 |
Fixed Maturities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | 569,940 | 250,750 |
Fixed Maturities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 26,112,299 | 22,494,950 |
Fixed Maturities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | 200,000 | 200,000 |
Fixed Maturities [Member] | US Treasury Securities [Member] | ||
Investments in available-for-sale securities, at fair value | 569,940 | 250,750 |
Fixed Maturities [Member] | US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 569,940 | 250,750 |
Fixed Maturities [Member] | US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | 569,940 | 250,750 |
Fixed Maturities [Member] | US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Fixed Maturities [Member] | US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Fixed Maturities [Member] | Corporate Debt Securities [Member] | ||
Investments in available-for-sale securities, at fair value | 15,842,361 | 12,156,225 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 15,842,361 | 12,156,225 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Fixed Maturities [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 15,642,361 | 11,956,225 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | 200,000 | 200,000 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Investments in available-for-sale securities, at fair value | 6,598,113 | 6,352,444 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 6,598,113 | 6,352,444 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 6,598,113 | 6,352,444 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | ||
Investments in available-for-sale securities, at fair value | 90,840 | 100,520 |
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 90,840 | |
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 90,840 | |
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Fixed Maturities [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Investments in available-for-sale securities, at fair value | 3,780,985 | 4,085,761 |
Fixed Maturities [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 3,780,985 | 4,085,761 |
Fixed Maturities [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Fixed Maturities [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 3,780,985 | 4,085,761 |
Fixed Maturities [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Equity Securities [Member] | ||
Investments in available-for-sale securities, at fair value | 10,987,539 | 10,663,515 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 10,987,539 | 10,663,515 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | 10,987,539 | 10,663,515 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value |
Note 4 - Fair Value Measureme_4
Note 4 - Fair Value Measurements - Estimated Fair Values of the Company's Financial Assets and Liabilities (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Reported Value Measurement [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | $ 2,077,646 | $ 651,809 |
Investment income due and accrued | 286,890 | 214,998 |
Investments, at fair value | 37,926,317 | 33,643,190 |
Total Financial Assets | 40,290,853 | 34,509,997 |
Financial Liabilities: | ||
Policyholder deposits in deposit-type contracts | 16,626,218 | 13,448,891 |
Total Financial Liabilities | 16,626,218 | 13,448,891 |
Estimate of Fair Value Measurement [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 2,077,646 | 651,809 |
Investment income due and accrued | 286,890 | 214,998 |
Investments, at fair value | 37,926,317 | 33,643,190 |
Total Financial Assets | 40,290,853 | 34,509,997 |
Financial Liabilities: | ||
Policyholder deposits in deposit-type contracts | 15,361,164 | 12,508,470 |
Total Financial Liabilities | $ 15,361,164 | $ 12,508,470 |
Note 5 - Income Tax Provision (
Note 5 - Income Tax Provision (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Expense (Benefit), Total | $ 0 | $ 0 |
Deferred Tax Assets, Valuation Allowance, Percentage | 100.00% | 100.00% |
Operating Loss Carryforwards, Total | $ 12,938,533 | $ 11,886,891 |
Note 6 - Reinsurance - Summary
Note 6 - Reinsurance - Summary of Significant Reinsurance Amounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Benefits and claim reserves ceded | $ 64,451 | $ 55,075 |
Amounts due from ceding company | 97,395 | 194,804 |
Benefits and claim reserves assumed | 11,521,657 | 10,372,638 |
Ceded premium | 629,196 | 221,027 |
Assumed premium | 4,863,227 | 7,826,619 |
Allowances on ceded premium | 19,347 | 10,441 |
Allowances paid on assumed premium | 401,147 | 2,238,386 |
Assumed benefits and policyholder reserve increases | $ 4,078,572 | $ 7,207,979 |
Note 7 - Lease Commitments (Det
Note 7 - Lease Commitments (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leases, Rent Expense, Net, Total | $ 39,166 | $ 31,712 |
Topeka Headquarters [Member] | ||
Lessee, Operating Lease, Renewal Term | 3 years | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 37,824 | |
Office in Bismarck, ND [Member] | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 11,095 | |
Operating Leases, Future Minimum Payments, Due in Two Years | $ 8,446 |
Note 8 - Restricted Funds (Deta
Note 8 - Restricted Funds (Details Textual) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Held-in-trust, Total | $ 625,000 | $ 625,000 |
State of Missouri [Member] | ||
Deposit Assets, Total | 300,000 | |
Minimum [Member] | ||
Assets Held-in-trust, Total | $ 400,000 |
Note 9- Statutory Net Income an
Note 9- Statutory Net Income and Surplus - Statutory Accounting Practices Disclosure (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
KANSAS | ||
Statutory Capital and Surplus | $ 5,239,874 | $ 4,186,381 |
Statutory Net Loss | 28,883 | (1,727,462) |
NORTH DAKOTA | ||
Statutory Capital and Surplus | 1,373,390 | 1,337,081 |
Statutory Net Loss | 70,393 | (129,989) |
MONTANA | ||
Statutory Capital and Surplus | 1,721,012 | |
Statutory Net Loss | $ 42,957 | $ 65,112 |