Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Feb. 08, 2021 | |
Document Information [Line Items] | ||
Entity Registrant Name | US Alliance Corp | |
Entity Central Index Key | 0001463913 | |
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 Ex Transition Period | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 7,741,543 | |
Entity Public Float | $ 0 | |
Entity Shell Company | false | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Title of 12(g) Security | Common Stock, $0.10 par value per share |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Available for sale fixed maturity securities (amortized cost: $33,784,518 and $30,823,397 as of December 31, 2020 and December 31, 2019, respectively) | $ 37,677,578 | $ 33,152,892 |
Equity securities, at fair value | 37,677,578 | 33,152,892 |
Mortgage loans on real estate | 3,166,136 | |
Funds withheld under coinsurance agreement, at fair value | 46,830,076 | |
Policy loans | 163,725 | 118,930 |
Real estate, net of depreciation | 1,415,743 | |
Total investments | 98,474,832 | 43,413,325 |
Cash and cash equivalents | 4,320,759 | 6,678,805 |
Investment income due and accrued | 423,036 | 321,362 |
Reinsurance related assets | 165,082 | 188,382 |
Deferred acquisition costs, net | 7,105,890 | 2,652,674 |
Value of business acquired | 2,703,233 | 559,994 |
Property, equipment and software, net | 37,818 | 43,841 |
Goodwill | 277,542 | 277,542 |
Deferred tax asset, net of valuation allowance | 243,257 | 431,158 |
Other assets | 1,635,647 | 372,166 |
Total assets | 115,387,096 | 54,939,249 |
Liabilities: | ||
Deposit-type contracts | 72,082,207 | 19,396,614 |
Policyholder benefit reserves | 21,158,568 | 17,326,524 |
Dividend accumulation | 116,127 | 123,038 |
Advance premiums | 102,178 | 78,709 |
Total policy liabilities | 93,459,080 | 36,924,885 |
Accounts payable and accrued expenses | 1,507,756 | 122,981 |
Federal Home Loan Bank advance | (2,000,000) | (1,000,000) |
Other liabilities | 15,469 | 15,186 |
Total liabilities | 96,982,305 | 38,063,052 |
Shareholders' Equity: | ||
Common stock, $0.10 par value. Authorized 20,000,000 shares; issued and outstanding 7,741,487 and 7,734,004 shares as of December 30, 2020 and December 31, 2019, respectively | 774,150 | 773,401 |
Additional paid-in capital | 23,063,273 | 23,210,257 |
Accumulated deficit | (8,997,507) | (9,436,956) |
Accumulated other comprehensive income | 3,564,875 | 2,329,495 |
Total shareholders' equity | 18,404,791 | 16,876,197 |
Total liabilities and shareholders' equity | 115,387,096 | 54,939,249 |
Fixed Maturities [Member] | ||
Assets | ||
Available for sale fixed maturity securities (amortized cost: $33,784,518 and $30,823,397 as of December 31, 2020 and December 31, 2019, respectively) | 37,677,578 | 33,152,892 |
Equity securities, at fair value | 37,677,578 | 33,152,892 |
Equity Securities [Member] | ||
Assets | ||
Available for sale fixed maturity securities (amortized cost: $33,784,518 and $30,823,397 as of December 31, 2020 and December 31, 2019, respectively) | 9,221,574 | 10,141,503 |
Equity securities, at fair value | $ 9,221,574 | $ 10,141,503 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Available for sale securities, amortized cost | $ 33,784,518 | $ 30,823,397 |
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) | 7,741,487 | 7,734,004 |
Common stock, shares outstanding (in shares) | 7,741,487 | 7,734,004 |
Fixed Maturities [Member] | ||
Available for sale securities, amortized cost | $ 33,784,518 | $ 30,823,397 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income: | ||
Premium income | $ 10,117,110 | $ 9,076,205 |
Net investment income | 3,552,261 | 1,790,601 |
Net investment gains | 1,967,014 | 1,042,334 |
Other income | 635,520 | 57,146 |
Total income | 16,271,905 | 11,966,286 |
Expenses: | ||
Death claims | 1,943,563 | 1,287,893 |
Policyholder benefits | 5,248,470 | 4,212,534 |
Increase in policyholder reserves | 3,359,609 | 2,599,575 |
Commissions, net of deferrals | 781,400 | 783,724 |
Amortization of deferred acquisition costs | 970,386 | 433,218 |
Amortization of value of business acquired | 20,302 | 20,303 |
Salaries & benefits | 1,219,534 | 1,081,955 |
Other operating expenses | 2,429,466 | 1,379,034 |
Total expense | 15,972,730 | 11,798,236 |
Income before federal income tax | 299,175 | 168,050 |
Federal income tax benefit | 140,274 | 431,158 |
Total federal income tax benefit | 140,274 | 431,159 |
Net income | $ 439,449 | $ 599,208 |
Net income per common share, basic and diluted (in dollars per share) | $ 0.06 | $ 0.08 |
Unrealized net holding gains arising during the period, net of tax | $ 2,390,992 | $ 3,420,928 |
Reclassification adjustment for gains included in net income | (1,155,612) | (5,764) |
Other comprehensive income | 1,235,380 | 3,415,164 |
Comprehensive income | $ 1,674,829 | $ 4,014,372 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2018 | 7,650,551 | |||||||||
Balance at Dec. 31, 2018 | $ 1,098,760 | $ (1,098,760) | $ 765,056 | $ 22,989,443 | $ (2,184,429) | $ (8,937,404) | $ 12,632,666 | |||
Common stock issued, $7 per share (in shares) | 83,453 | |||||||||
Common stock issued, $7 per share | $ 8,345 | 575,826 | 584,171 | |||||||
Costs associated with common stock issued | (355,012) | (355,012) | ||||||||
Other comprehensive income | 3,415,164 | 3,415,164 | ||||||||
Net income | 599,208 | 599,208 | ||||||||
Balance (in shares) at Dec. 31, 2019 | 7,734,004 | |||||||||
Balance at Dec. 31, 2019 | $ 773,401 | 23,210,257 | 2,329,495 | (9,436,956) | 16,876,197 | |||||
Common stock issued, $7 per share (in shares) | 7,483 | |||||||||
Common stock issued, $7 per share | $ 749 | 51,632 | 52,381 | |||||||
Costs associated with common stock issued | (198,616) | (198,616) | ||||||||
Other comprehensive income | 1,235,380 | 1,235,380 | ||||||||
Net income | 439,449 | 439,449 | ||||||||
Balance (in shares) at Dec. 31, 2020 | 7,741,487 | |||||||||
Balance at Dec. 31, 2020 | $ 774,150 | $ 23,063,273 | $ 3,564,875 | $ (8,997,507) | $ 18,404,791 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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, 2020 | Dec. 31, 2019 | |
Cash Flows from operating activities: | ||
Net income | $ 439,449 | $ 599,208 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 34,425 | 10,237 |
Net realized (gains) losses on the sale of securities | (1,014,347) | 214,435 |
Unrealized gains on equity securities | (299,373) | (1,256,769) |
Change in fair value of funds withheld embedded derivative | (653,294) | |
Amortization of investment securities, net | 129,970 | 45,133 |
Gain on recaptured reinsurance | (543,794) | |
Deferred acquisition costs capitalized | (678,510) | (328,488) |
Deferred acquisition costs amortized | 970,386 | 433,218 |
Value of business acquired amortized | 20,302 | 20,303 |
Interest credited on deposit type contracts | 1,099,483 | 593,794 |
(Increase) decrease in operating assets: | ||
Change in funds withheld | (911,599) | |
Investment income due and accrued | (101,674) | (34,472) |
Reinsurance related assets | (3,740) | (26,536) |
Deferred tax assets, net of valuation allowance | (140,274) | (431,158) |
Other assets | (1,008,077) | 34,803 |
Increase (decrease) in operating liabilities: | ||
Policyowner benefit reserves | 3,358,452 | 2,629,005 |
Dividend Accumulation | (6,911) | (53,018) |
Advance premiums | 23,469 | 21,973 |
Other liabilities | 283 | (13,526) |
Accounts payable and accrued expenses | 1,384,775 | (188,101) |
Net cash provided by operating activities | 2,099,401 | 2,270,041 |
Cash Flows from investing activities: | ||
Purchase of fixed income investments | (3,039,784) | (1,888,127) |
Purchase of equity investments | (5,606,996) | (7,729,600) |
Purchase of mortgage investments | (3,171,359) | |
Purchase of real estate and leasehold improvements | (1,415,743) | |
Proceeds from fixed income sales and repayments | 2,234,085 | 981,939 |
Proceeds from equity sales | 5,555,808 | 7,623,536 |
Proceeds from mortgage repayments | 5,223 | |
Transfers to funds withheld | (4,391,824) | |
Interest on policy loans | (8,934) | (8,122) |
Increase in policy loans | (35,861) | (54,269) |
Purchase of property, equipment and software | (28,403) | |
Net cash used in investing activities | (9,903,788) | (1,074,643) |
Cash Flows from financing activities: | ||
Receipts on deposit-type contracts | 6,805,322 | 3,535,094 |
Withdrawals on deposit-type contracts | (2,212,746) | (1,358,492) |
Proceeds from FHLB advance | 1,000,000 | 1,000,000 |
Proceeds received from issuance of common stock, net of costs of issuance | (146,235) | 229,159 |
Net cash provided by financing activities | 5,446,341 | 3,405,761 |
Net increase (decrease) in cash and cash equivalents | (2,358,046) | 4,601,159 |
Cash and Cash Equivalents: | ||
Beginning | 6,678,805 | 2,077,646 |
Ending | 4,320,759 | 6,678,805 |
Supplemental Disclosure of Non-Cash Information | ||
Funds withheld assumed deposits on deposit-type contracts | 47,078,703,000 | |
Funds withheld assumed withdrawals on deposit-type contracts | 85,169,000 | |
Commissions and expense allowances deducted from funds withheld | 6,820,167,000 | |
Deferred acquisition costs released on reinsurance recapture | 1,146,150,000 | |
Deposit-type contract liabilities released on reinsruance recapture | 6,893,561,000 | |
Investments transferred out on reinsurance recapture | 7,990,509,000 | |
Investments received on assumption agreement | 7,990,509,000 | |
ALSC [Member] | Dakota Capital Life Insurance Company [Member] | ||
Supplemental Disclosure of Non-Cash Information | ||
Deposit-type contract liabilities acquired by DCLIC from ALSC | 6,893,561,000 | |
Value of business acquired by DCLIC from ALSC | $ 2,163,541,000 |
Note 1 - Description of Busines
Note 1 - Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | Note 1. Description of business April 24, 2009 1303 200, 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, 2021. 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. The Company's single pay life products (which include our Juvenile and Pre-Need products) accounted for 61% 2020 21% 2020 18% 2020 USALSC and DCLIC seek opportunities to develop and market additional products. The Company's 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: Available for sale securities Realized gains and losses on securities sold during the year are determined using the specific identification method and included in investment income as a component of net investment gains (losses). 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 amortized cost and fair value is recognized in the income statement as an other-than-temporary impairment. As it relates to debt securities, if we do not not not not December 31, 2020 2019, no Mortgage Loans on Real Estate: not 90 A mortgage loan is considered to be impaired when, based on the current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the mortgage agreement. Valuation allowances on mortgage loans are established based upon inherent losses expected by management to be realized in connection with future dispositions or settlement of mortgage loans, including foreclosures. The Company establishes valuation allowances for estimated impairments on an individual loan basis as of the balance sheet date. Such valuation allowances are based on the excess carrying value of the loan over the present value of expected future cash flows discounted at the loan's original effective interest rate, the value of the loan's collateral if the loan is in the process of foreclosure or is otherwise collateral-dependent, or the loan's market value if the loan is being sold. These evaluations are revised as conditions change and new information becomes available. In addition to historical experience, management considers qualitative factors that include the impact of changing macro-economic conditions, which may not Any interest accrued or received on the net carrying amount of the impaired loan will be included in investment income or applied to the principal of the loan, depending on the assessment of the collectability of the loan. Mortgage loans deemed to be uncollectible or that have been foreclosed are charged off against the valuation allowances and subsequent recoveries, if any, are credited to the valuation allowances. Changes in valuation allowances are reported in investment related gains (losses), net on the consolidated statements of income. The Company evaluates whether a mortgage loan modification represents a troubled debt restructuring. In a troubled debt restructuring, the Company grants concessions related to the borrower's financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates and/or a reduction of accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific valuation allowance recorded in connection with the troubled debt restructuring. Through the continuous monitoring process, the Company may may not may Funds Withheld under Coinsurance Agreement: 2020. Embedded Derivatives: 815, not Policy loans : Investment Real Estate: Cash and cash equivalents three one $250,000 no December 31, 2020. not not Reinsurance not not no December 31, 2020 2019. Deferred acquisition costs not not may third may The following table provides information about deferred acquisition costs for the years ended December 31, 2020 2019, Year ended Year ended December 31, December 31, Deferred Acquisition costs 2020 2019 Balance at beginning of period $ 2,652,674 $ 2,757,404 DAC on reinsurance recapture (1,146,150 ) - Capitalization of commissions, sales and issue expenses 6,569,752 328,488 Amortization net of interest (970,386 ) (433,218 ) Balance at end of period $ 7,105,890 $ 2,652,674 Value of business acquired not not may 30 In addition, we may 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 December 31, 2020 2019 Years Ended Year Ended December 31, December 31, 2020 2019 Computer $ 32,182 $ 20,755 Furniture and equipment 39,679 97,410 Accumulated depreciation (34,043 ) (74,324 ) Balance at end of period $ 37,818 $ 43,841 Goodwill fourth may 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, 2020 2019. The tax years which remain subject to examination by taxing authorities are the years ended December 31, 2017 2020. Pre-paid expenses: 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, 2020 2019. Year Ended Year ended December 31, December 31, 2020 2019 Balance at beginning of period $ 19,063,141 $ 16,201,166 Recaptured by American Life & Security Corp (6,799,716 ) - Acquired from American Life & Security Corp 6,799,716 - Deposits received 53,877,845 3,517,203 Interest credited 1,090,820 583,038 Withdrawals (2,188,523 ) (1,238,266 ) Balance at end of period $ 71,843,283 $ 19,063,141 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 premium deposit fund deposit-type contracts for the years ended December 31, 2020 2019. Year Ended Year ended December 31, December 31, 2020 2019 Balance at beginning of period $ 333,473 $ 425,052 Recaptured by American Life & Security Corp (93,845 ) - Acquired from American Life & Security Corp 93,845 - Deposits received 6,180 17,891 Interest credited 8,663 10,756 Withdrawals (109,392 ) (120,226 ) Balance at end of period $ 238,924 $ 333,473 Benefit reserves Policy claims not not December 31, 2020 2019 $116,019 $127,711 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. Leases: Common stock and earnings per share: $0.10 20,000,000 December 31, 2020 2019 7,741,487 7,734,004 Earnings per share attributable to the Company's common stockholders were computed based on the net income and the weighted average number of shares outstanding during each year. The weighted average number of shares outstanding during the years ended December 31, 2020 2019 7,738,693 7,688,560 December 31, 2020 2019. Comprehensive Income 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 90% 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 1%, 9.3% December 31, 2020. 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 not Leases In February 2016, 12 two no not The updated guidance is effective for reporting periods beginning after December 15, 2018, December 15, 2021. not Income Taxes - Simplifying the Accounting for Income Taxes In December 2019, 2019 12 March 31, 2021. 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, 2022. not Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income On December 22, 2017, H.R.1, 2018 February 2018, 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, 2023, Fair Value Measurement This guidance is part of the FASB's disclosure framework project and eliminates certain disclosure requirements for fair value measurement, requires entities to disclose new information and modifies existing disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2019, not 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, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | Note 2. On December 31, 2020, 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 following table summarizes the fair value of the assets acquired and liabilities assumed from ALSC: Net consideration to ALSC $ 927,000 Preliminary amounts of identifiable assets acquired and liabilities assumed Investment securities $ 7,990,509 Cash receivable 2,117,591 Policy loan assets 101,736 Value of business acquired 2,163,541 Policyholder reserves (4,552,816 ) Deposit type contracts (6,893,561 ) Total identifiable net assets $ 927,000 |
Note 3 - Investments
Note 3 - Investments | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Investment Holdings [Text Block] | Note 3. Fixed Maturity The amortized cost and fair value of available for sale investments as of December 31 December 31, 2020 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for sale: Fixed maturities: US Treasury securities $ 574,935 $ 127,981 $ - $ 702,916 Corporate bonds 20,126,836 2,821,508 (533 ) 22,947,811 Municipal bonds 5,992,707 804,443 (496 ) 6,796,654 Redeemable preferred stock 2,900,330 90,085 (200 ) 2,990,215 Mortgage backed and asset backed securities 4,189,710 50,274 (2 ) 4,239,982 Total available for sale $ 33,784,518 $ 3,894,291 $ (1,231 ) $ 37,677,578 December 31, 2019 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for sale: Fixed maturities: US Treasury securities $ 608,477 $ 24,162 $ - $ 632,639 Corporate bonds 18,407,211 1,697,265 (20,079 ) 20,084,397 Municipal bonds 6,538,883 518,059 (1,883 ) 7,055,059 Redeemable preferred stock 2,097,206 36,687 - 2,133,893 Mortgage backed and asset backed securities 3,171,620 77,593 (2,309 ) 3,246,904 Total available for sale $ 30,823,397 $ 2,353,766 $ (24,271 ) $ 33,152,892 The amortized cost and fair value of debt securities as of December 31, 2020 2019, may may As of December 31, 2020 As of December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Amounts maturing in: One year or less $ 373,590 $ 379,823 $ 99,987 $ 100,239 After one year through five years 1,540,931 1,641,749 1,424,337 1,471,552 After five years through ten years 2,887,066 3,379,930 3,286,937 3,574,191 More than 10 years 21,892,891 25,045,879 20,743,310 22,626,113 Redeemable preferred stocks 2,900,330 2,990,215 2,097,206 2,133,893 Mortgage backed and asset backed securities 4,189,710 4,239,982 3,171,620 3,246,904 Total amortized cost and fair value $ 33,784,518 $ 37,677,578 $ 30,823,397 $ 33,152,892 Proceeds from the sale of securities, maturities, and asset paydowns in 2020 2019 $7,795,116 $8,605,475, Years Ended December 31, 2020 2019 Gross gains $ 1,388,209 $ 43,935 Gross losses (373,862 ) (258,370 ) Realized gains (losses) $ 1,014,347 $ (214,435 ) 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, 2020 Available for sale: (unaudited) Fixed maturities: Corporate bonds $ 210,625 $ (2 ) $ 49,438 $ (531 ) $ 260,063 $ (533 ) Municipal bonds 47,249 (496 ) - - 47,249 (496 ) Redeemable preferred stock 77,918 (200 ) - - 77,918 (200 ) Mortgage backed and asset backed securities 309,144 (2 ) - - 309,144 (2 ) Total fixed maturities $ 644,936 $ (700 ) $ 49,438 $ (531 ) $ 694,374 $ (1,231 ) Less than 12 months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss December 31, 2019 Available for sale: Fixed maturities: Corporate bonds $ 967,848 $ (20,079 ) $ - $ - $ 967,848 $ (20,079 ) Municipal bonds 46,646 (1,883 ) - - 46,646 (1,883 ) Mortgage backed and asset backed securities - - 296,576 (2,309 ) 296,576 (2,309 ) Total fixed maturities $ 1,014,494 $ (21,962 ) $ 296,576 $ (2,309 ) $ 1,311,070 $ (24,271 ) Unrealized losses occur from market price declines that may The total number of available for sale securities in the investment portfolio in an unrealized loss position as of December 31, 2020 8, $1,231 8 3 4 1 no December 31, 2020 2019. Mortgage Loans on Real Estate The Company has invested in various mortgage loans through participation agreements with the original issuing entity. The Company's mortgage loans by property type as of December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Commercial mortgage loans by property type Student housing $ 781,512 $ - Condominium 1,874,445 - Multi-property 332,195 - Multi-family 177,984 - Total commercial mortgages $ 3,166,136 $ - The Company utilizes loan-to-value of individual mortgage loans to evaluate the credit quality of its mortgage loan portfolio. The loan-to-value measures the loan's carrying value to its appraised value. The Company's mortgage loans by loan-to-value ratio as of December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Loan to value ratio Over 60 to 70% $ 1,874,445 $ - Over 30 to 40% 177,984 Over 10 to 20% 1,113,707 - Total $ 3,166,136 $ - The Company's mortgage loans by maturity date as of December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Maturity Date One year or less $ 2,393,900 $ - After one year through five years 772,236 - Total $ 3,166,136 $ - The Company had no December 31, 2020. no December 31, 2020. not Investment Income, Net of Expenses The components of net investment income for the years ended December 31, 2020 2019 Years Ended December 31, 2020 2019 Fixed maturities $ 1,178,055 $ 1,164,520 Mortgages 129,621 - Equity securities 669,147 636,668 Funds withheld 1,680,220 - Cash and cash equivalents 12,501 36,359 3,669,544 1,837,547 Less investment expenses (117,283 ) (46,946 ) $ 3,552,261 $ 1,790,601 Net Investment Gains The Company was required to implement a new accounting standard in the first 2019 2020, $299,373 $1,014,347, $653,294. 2019, $1,256,769 $214,435. |
Note 4 - Derivative Instruments
Note 4 - Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 4. Derivative Instruments Accounting for Derivative Instruments See Note 1 Types of Derivatives used by the Company The Company's derivatives consists solely of embedded derivatives on funds withheld on coinsurance assets. Summary of Derivative Positions The fair value of the Company's derivative financial instruments on the consolidated balance sheets is as follows: December 31, 2020 December 31, 2019 Derivative Derivative Balance Asset Liability Asset Liability Reported In Derivatives: Embedded derivatives: Funds withheld embedded derivative $ 653,294 $ - $ - $ - Funds withheld The following table shows the change in the fair value of the derivative financial instruments in the consolidated statements of comprehensive income: Period Ending Period Ending Balance December 31, 2020 December 31, 2019 Reported In Derivatives: Embedded derivatives: Change in funds withheld embedded derivative $ 653,294 $ - Net investment gains (losses) |
Note 5 - Fair Value Measurement
Note 5 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 5 . Fair Value Measurements 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 Equity securities: third Embedded derivative not 3 not December 31, 2020. The table below presents the amounts of assets measured at fair value on a recurring basis as of December 31, 2020 2019: December 31, 2020 Total Level 1 Level 2 Level 3 Available for sale: Fixed maturities: US Treasury securities $ 702,916 $ 702,916 $ - $ - Corporate bonds 22,947,811 - 22,761,011 186,800 Municipal bonds 6,796,654 - 6,796,654 - Redeemable preferred stock 2,990,215 - 2,990,215 - Mortgage backed and asset backed securities 4,239,982 - 4,239,982 - Total fixed maturities 37,677,578 702,916 36,787,862 186,800 Equities: Common stock 6,808,944 6,717,144 91,800 - Preferred stock 2,412,630 - 2,412,630 - Total equities 9,221,574 6,717,144 2,504,430 - Funds withheld embedded derivative 653,294 - - 653,294 Total $ 47,552,446 $ 7,420,060 $ 39,292,292 $ 840,094 December 31, 2019 Total Level 1 Level 2 Level 3 Available for sale: Fixed maturities: US Treasury securities $ 632,639 $ 632,639 $ - $ - Corporate bonds 20,084,397 - 19,892,797 191,600 Municipal bonds 7,055,059 - 7,055,059 - Redeemable preferred stock 2,133,893 - 2,133,893 - Mortgage backed and asset backed securities 3,246,904 - 3,246,904 - Total fixed maturities 33,152,892 632,639 32,328,653 191,600 Equities: Common stock 9,214,694 9,169,694 45,000 - Preferred stock 926,809 - 926,809 - Total equities 10,141,503 9,169,694 971,809 - Total $ 43,294,395 $ 9,802,333 $ 33,300,462 $ 191,600 The reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3 For the Year Ended December 31, 2020 Corporate Funds Bonds Withheld Fair value, beginning of period $ 191,600 $ - Principal payment (4,800 ) - Investment related gains (losses), net - 653,294 Fair value, end of period $ 186,800 $ 653,294 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: Mortgage loans on real estate: Funds withheld not may 3 Policy loans Federal Home Loan Bank Advances: Policyholder deposits in deposit- type contracts The estimated fair values of the Company's financial assets and liabilities at December 31 December 31, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 4,320,759 $ 4,320,759 $ 4,320,759 $ - $ - Mortgage loans on real estate 3,166,136 3,166,136 3,166,136 Investment income due and accrued 423,036 423,036 - - 423,036 Funds withheld 46,176,782 46,830,076 - - 46,830,076 Policy loans 163,725 163,725 - - 163,725 Total Financial Assets (excluding available for sale investments) $ 54,250,438 $ 54,903,732 $ 4,320,759 $ - $ 50,582,973 Financial Liabilities: Federal Home Loan Bank advance $ 2,000,000 $ 2,000,000 $ - $ - $ 2,000,000 Policyholder deposits in deposit-type contracts 72,082,207 74,351,806 - - 74,351,806 Total Financial Liabilities $ 74,082,207 $ 76,351,806 $ - $ - $ 76,351,806 December 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 6,678,805 $ 6,678,805 $ 6,678,805 $ - $ - Investment income due and accrued 321,362 321,362 - - 321,362 Policy loans 118,930 118,930 - - 118,930 Total Financial Assets (excluding available for sale investments) $ 7,119,097 $ 7,119,097 $ 6,678,805 $ - $ 440,292 Financial Liabilities: Federal Home Loan Bank advance $ 1,000,000 $ 1,000,000 $ - $ - $ 1,000,000 Policyholder deposits in deposit-type contracts 19,396,614 19,186,265 - - 19,186,265 Total Financial Liabilities $ 20,396,614 $ 20,186,265 $ - $ - $ 20,186,265 |
Note 6 - Income Tax Provision
Note 6 - Income Tax Provision | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 6 . Income Tax Provision USAC files federal income tax returns based on the type of return. USAC files a consolidated corporate federal income tax return with USAMC and USAIC. USASLC, DCLIC, and USALSC-MT file a consolidated life insurance federal income tax return. Certain items included in income reported for financial statement purposes are not A reconciliation of federal income tax expense computed by applying the federal income tax rate of 21% December 31, 2020 2019, 2020 2019 Income before total federal income tax 299,175 168,050 Tax Rate 21 % 21 % Expected income tax expense (benefit) 62,827 35,291 Effect of tax-exempt income (32,318 ) (11,925 ) Disallowed deductions 1,012 693 Change in unrealized - valuation allowance and unrealized gains (losses) 148,778 - Other GAAP to tax differences 4043 (24,059 ) Reduction in valuation allowance (324,616 ) (431,158 ) Total (140,274 ) (431,159 ) For the year ended December 31, 2020, $328,181 $140,279 $187,901. December 31, 2019, $431,158. December 31, 2020 2019 12/31/2019 Change 12/31/2020 Deferred Tax Assets Net operating loss carryforwards 2,641,247 (529,816 ) 2,111,431 Unamortized Start-Up Costs 168,803 (21,100 ) 147,703 Policy owner benefit reserves 1,154,684 1,234,575 2,389,259 Goodwill - 194,670 194,670 Tax DAC 329,141 446,593 775,734 Deferred tax asset valuation allowance (2,423,438 ) 324,616 (2,098,822 ) 1,870,437 1,649,538 3,519,975 Deferred Tax Liabilities GAAP DAC 557,062 931,203 1,488,265 Fixed assets 8,699 122 8,821 8 Year Spread 233,429 (38,905 ) 194,524 Value of Business Acquired 117,599 450,080 567,679 Unrealized Gain 522,490 494,939 1,017,429 1,439,279 1,837,439 3,276,718 Net Deferred Tax 431,158 (187,901 ) 243,257 The Company has federal net operating loss (“NOL”) carryforwards of $10,054,432 $12,577,367 December 31, 2020 2019, December 31, 2009 2017 2027 January 1, 2018, not §382 December 31, 2017, 80% |
Note 7 - Reinsurance
Note 7 - Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Reinsurance [Text Block] | Note 7. A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of December 31, 2020 2019 December 31, 2020 2019 December 31, 2020 December 31, 2019 Balance sheet Benefits and claim reserves ceded $ 105,621 $ 136,579 Amounts due from ceding company 59,462 50,824 Benefits and claim reserves assumed 53,069,522 12,597,007 Years ended December 31, 2020 December 31, 2019 Statements of comprehensive income Ceded premium $ 923,567 $ 800,525 Assumed premium 4,682,634 4,906,522 Allowances on ceded premium 24,077 17,672 Allowances paid on assumed premium 6,765,030 495,327 Assumed benefits and policyholder reserve increases 5,243,836 4,269,695 The company currently reinsurers business in excess of its retention with General Re Life Corporation, Reliance Standard Life Insurance Company, Unified Life Insurance Company, Hartford Life and Accident 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 8 - Lease Commitments
Note 8 - Lease Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Leases of Lessee Disclosure [Text Block] | Note 8. Total rent expense was $48,146 $45,785 December 31, 2020 2019, December 31, 2020 no September 30, 2021. $8,446 2021. |
Note 9 - Related Party Transact
Note 9 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 9 . Related Party Transactions Brier Development Company, Inc. is owned solely by Jack Brier, President and CEO of the Company. Brier Development Company, Inc. owns 20,000 5 $21,019 $19,421 December 31, 2020 2019, |
Note 10 - Federal Home Loan Ban
Note 10 - Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Federal Home Loan Bank Advances, Disclosure [Text Block] | Note 10 . Federal Home Loan Bank Advances One of the Company's subsidiaries, USALSC, is a member of the Federal Home Loan Bank of Topeka (FHLB), which provides access to collateralized borrowings. Any borrowings from FHLB requires the purchase of FHLB common stock in an amount equal to 4.5% October 31, 2019, 1,000,000 45,000 $1,000,000 December 31, 2019. 10 5 th 1.66%. April 23, 2020 June 22, 2020 two two 0.37% 0.28% December 31, 2020, $2,000,000. As of December 31, 2020, $2,372,402 |
Note 11 - Restricted Funds
Note 11 - Restricted Funds | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Restricted Assets Disclosure [Text Block] | Note 11. As required by Kansas law, US Alliance Life and Security Company maintains a trust account at Capitol Federal Savings 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, 2020 2019, $300,000. $200,000 $325,000 |
Note 12 - Statutory Net Income
Note 12 - Statutory Net Income and Surplus | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Statutory Accounting Practices Disclosure [Text Block] | Note 12. 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 income (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, 2020 2019 December 31, 2020 2019. Statutory Capital and Surplus as of December 31 December 31 2020 2019 US Alliance Life and Security Company $ 6,242,080 $ 5,831,153 Dakota Capital Life Insurance Company 3,700,272 1,472,930 US Alliance Life and Security Company - Montana 1,709,032 1,674,410 Statutory Net Income (loss) for the years ended December 31, 2020 2019 US Alliance Life and Security Company $ (1,960,666 ) $ 6,120 Dakota Capital Life Insurance Company (31,734 ) 116,748 US Alliance Life and Security Company - Montana 39,410 (44,873 ) 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 13 - Subsequent Events
Note 13 - Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | Note 13. 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 22, 2021, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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: |
Available for Sale Securities, Policy [Policy Text Block] | Available for sale securities Realized gains and losses on securities sold during the year are determined using the specific identification method and included in investment income as a component of net investment gains (losses). 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 amortized cost and fair value is recognized in the income statement as an other-than-temporary impairment. As it relates to debt securities, if we do not not not not December 31, 2020 2019, no |
Real Estate, Policy [Policy Text Block] | Mortgage Loans on Real Estate: not 90 A mortgage loan is considered to be impaired when, based on the current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the mortgage agreement. Valuation allowances on mortgage loans are established based upon inherent losses expected by management to be realized in connection with future dispositions or settlement of mortgage loans, including foreclosures. The Company establishes valuation allowances for estimated impairments on an individual loan basis as of the balance sheet date. Such valuation allowances are based on the excess carrying value of the loan over the present value of expected future cash flows discounted at the loan's original effective interest rate, the value of the loan's collateral if the loan is in the process of foreclosure or is otherwise collateral-dependent, or the loan's market value if the loan is being sold. These evaluations are revised as conditions change and new information becomes available. In addition to historical experience, management considers qualitative factors that include the impact of changing macro-economic conditions, which may not Any interest accrued or received on the net carrying amount of the impaired loan will be included in investment income or applied to the principal of the loan, depending on the assessment of the collectability of the loan. Mortgage loans deemed to be uncollectible or that have been foreclosed are charged off against the valuation allowances and subsequent recoveries, if any, are credited to the valuation allowances. Changes in valuation allowances are reported in investment related gains (losses), net on the consolidated statements of income. The Company evaluates whether a mortgage loan modification represents a troubled debt restructuring. In a troubled debt restructuring, the Company grants concessions related to the borrower's financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates and/or a reduction of accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific valuation allowance recorded in connection with the troubled debt restructuring. Through the continuous monitoring process, the Company may may not may |
Funds Withheld under Coinsurance Agreement, Policy [Policy Text Block] | Funds Withheld under Coinsurance Agreement: 2020. |
Derivatives, Embedded Derivatives [Policy Text Block] | Embedded Derivatives: 815, not |
Policy Loans Receivable, Policy [Policy Text Block] | Policy loans : |
Investment Real Estate, Policy [Policy Text Block] | Investment Real Estate: |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents three one $250,000 no December 31, 2020. not not |
Reinsurance Accounting Policy [Policy Text Block] | Reinsurance not not no December 31, 2020 2019. |
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, 2020 2019, Year ended Year ended December 31, December 31, Deferred Acquisition costs 2020 2019 Balance at beginning of period $ 2,652,674 $ 2,757,404 DAC on reinsurance recapture (1,146,150 ) - Capitalization of commissions, sales and issue expenses 6,569,752 328,488 Amortization net of interest (970,386 ) (433,218 ) Balance at end of period $ 7,105,890 $ 2,652,674 |
Present Value of Future Insurance Profits, Policy [Policy Text Block] | Value of business acquired not not may 30 In addition, we may |
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 December 31, 2020 2019 Years Ended Year Ended December 31, December 31, 2020 2019 Computer $ 32,182 $ 20,755 Furniture and equipment 39,679 97,410 Accumulated depreciation (34,043 ) (74,324 ) Balance at end of period $ 37,818 $ 43,841 |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill fourth may |
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, 2020 2019. The tax years which remain subject to examination by taxing authorities are the years ended December 31, 2017 2020. |
Deferred Charges, Policy [Policy Text Block] | Pre-paid expenses: |
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, 2020 2019. Year Ended Year ended December 31, December 31, 2020 2019 Balance at beginning of period $ 19,063,141 $ 16,201,166 Recaptured by American Life & Security Corp (6,799,716 ) - Acquired from American Life & Security Corp 6,799,716 - Deposits received 53,877,845 3,517,203 Interest credited 1,090,820 583,038 Withdrawals (2,188,523 ) (1,238,266 ) Balance at end of period $ 71,843,283 $ 19,063,141 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 premium deposit fund deposit-type contracts for the years ended December 31, 2020 2019. Year Ended Year ended December 31, December 31, 2020 2019 Balance at beginning of period $ 333,473 $ 425,052 Recaptured by American Life & Security Corp (93,845 ) - Acquired from American Life & Security Corp 93,845 - Deposits received 6,180 17,891 Interest credited 8,663 10,756 Withdrawals (109,392 ) (120,226 ) Balance at end of period $ 238,924 $ 333,473 |
Liability for Future Policy Benefit [Policy Text Block] | Benefit reserves |
Unpaid Policy Claims and Claims Adjustment Expense, Policy [Policy Text Block] | Policy claims not not December 31, 2020 2019 $116,019 $127,711 |
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. |
Lessee, Leases [Policy Text Block] | Leases: |
Earnings Per Share, Policy [Policy Text Block] | Common stock and earnings per share: $0.10 20,000,000 December 31, 2020 2019 7,741,487 7,734,004 Earnings per share attributable to the Company's common stockholders were computed based on the net income and the weighted average number of shares outstanding during each year. The weighted average number of shares outstanding during the years ended December 31, 2020 2019 7,738,693 7,688,560 December 31, 2020 2019. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income |
Risk and Uncertainties, Policy [Policy Text Block] | 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 90% 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 1%, 9.3% December 31, 2020. 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 |
Reclassification, Comparability Adjustment [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 not Leases In February 2016, 12 two no not The updated guidance is effective for reporting periods beginning after December 15, 2018, December 15, 2021. not Income Taxes - Simplifying the Accounting for Income Taxes In December 2019, 2019 12 March 31, 2021. 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, 2022. not Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income On December 22, 2017, H.R.1, 2018 February 2018, 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, 2023, Fair Value Measurement This guidance is part of the FASB's disclosure framework project and eliminates certain disclosure requirements for fair value measurement, requires entities to disclose new information and modifies existing disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2019, not 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, 2020 | |
Notes Tables | |
Deferred Policy Acquisition Costs [Table Text Block] | Year ended Year ended December 31, December 31, Deferred Acquisition costs 2020 2019 Balance at beginning of period $ 2,652,674 $ 2,757,404 DAC on reinsurance recapture (1,146,150 ) - Capitalization of commissions, sales and issue expenses 6,569,752 328,488 Amortization net of interest (970,386 ) (433,218 ) Balance at end of period $ 7,105,890 $ 2,652,674 |
Property, Plant and Equipment [Table Text Block] | Years Ended Year Ended December 31, December 31, 2020 2019 Computer $ 32,182 $ 20,755 Furniture and equipment 39,679 97,410 Accumulated depreciation (34,043 ) (74,324 ) Balance at end of period $ 37,818 $ 43,841 |
Information About Deposit-type Contracts [Table Text Block] | Year Ended Year ended December 31, December 31, 2020 2019 Balance at beginning of period $ 19,063,141 $ 16,201,166 Recaptured by American Life & Security Corp (6,799,716 ) - Acquired from American Life & Security Corp 6,799,716 - Deposits received 53,877,845 3,517,203 Interest credited 1,090,820 583,038 Withdrawals (2,188,523 ) (1,238,266 ) Balance at end of period $ 71,843,283 $ 19,063,141 Year Ended Year ended December 31, December 31, 2020 2019 Balance at beginning of period $ 333,473 $ 425,052 Recaptured by American Life & Security Corp (93,845 ) - Acquired from American Life & Security Corp 93,845 - Deposits received 6,180 17,891 Interest credited 8,663 10,756 Withdrawals (109,392 ) (120,226 ) Balance at end of period $ 238,924 $ 333,473 |
Note 2 - Acquisitions (Tables)
Note 2 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Net consideration to ALSC $ 927,000 Preliminary amounts of identifiable assets acquired and liabilities assumed Investment securities $ 7,990,509 Cash receivable 2,117,591 Policy loan assets 101,736 Value of business acquired 2,163,541 Policyholder reserves (4,552,816 ) Deposit type contracts (6,893,561 ) Total identifiable net assets $ 927,000 |
Note 3 - Investments (Tables)
Note 3 - Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | December 31, 2020 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for sale: Fixed maturities: US Treasury securities $ 574,935 $ 127,981 $ - $ 702,916 Corporate bonds 20,126,836 2,821,508 (533 ) 22,947,811 Municipal bonds 5,992,707 804,443 (496 ) 6,796,654 Redeemable preferred stock 2,900,330 90,085 (200 ) 2,990,215 Mortgage backed and asset backed securities 4,189,710 50,274 (2 ) 4,239,982 Total available for sale $ 33,784,518 $ 3,894,291 $ (1,231 ) $ 37,677,578 December 31, 2019 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for sale: Fixed maturities: US Treasury securities $ 608,477 $ 24,162 $ - $ 632,639 Corporate bonds 18,407,211 1,697,265 (20,079 ) 20,084,397 Municipal bonds 6,538,883 518,059 (1,883 ) 7,055,059 Redeemable preferred stock 2,097,206 36,687 - 2,133,893 Mortgage backed and asset backed securities 3,171,620 77,593 (2,309 ) 3,246,904 Total available for sale $ 30,823,397 $ 2,353,766 $ (24,271 ) $ 33,152,892 |
Investments Classified by Contractual Maturity Date [Table Text Block] | As of December 31, 2020 As of December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Amounts maturing in: One year or less $ 373,590 $ 379,823 $ 99,987 $ 100,239 After one year through five years 1,540,931 1,641,749 1,424,337 1,471,552 After five years through ten years 2,887,066 3,379,930 3,286,937 3,574,191 More than 10 years 21,892,891 25,045,879 20,743,310 22,626,113 Redeemable preferred stocks 2,900,330 2,990,215 2,097,206 2,133,893 Mortgage backed and asset backed securities 4,189,710 4,239,982 3,171,620 3,246,904 Total amortized cost and fair value $ 33,784,518 $ 37,677,578 $ 30,823,397 $ 33,152,892 |
Realized Gain (Loss) on Investments [Table Text Block] | Years Ended December 31, 2020 2019 Gross gains $ 1,388,209 $ 43,935 Gross losses (373,862 ) (258,370 ) Realized gains (losses) $ 1,014,347 $ (214,435 ) |
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, 2020 Available for sale: (unaudited) Fixed maturities: Corporate bonds $ 210,625 $ (2 ) $ 49,438 $ (531 ) $ 260,063 $ (533 ) Municipal bonds 47,249 (496 ) - - 47,249 (496 ) Redeemable preferred stock 77,918 (200 ) - - 77,918 (200 ) Mortgage backed and asset backed securities 309,144 (2 ) - - 309,144 (2 ) Total fixed maturities $ 644,936 $ (700 ) $ 49,438 $ (531 ) $ 694,374 $ (1,231 ) Less than 12 months Greater than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss December 31, 2019 Available for sale: Fixed maturities: Corporate bonds $ 967,848 $ (20,079 ) $ - $ - $ 967,848 $ (20,079 ) Municipal bonds 46,646 (1,883 ) - - 46,646 (1,883 ) Mortgage backed and asset backed securities - - 296,576 (2,309 ) 296,576 (2,309 ) Total fixed maturities $ 1,014,494 $ (21,962 ) $ 296,576 $ (2,309 ) $ 1,311,070 $ (24,271 ) |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 2020 December 31, 2019 Commercial mortgage loans by property type Student housing $ 781,512 $ - Condominium 1,874,445 - Multi-property 332,195 - Multi-family 177,984 - Total commercial mortgages $ 3,166,136 $ - |
Schedule of Mortage Loans by Loan-to-Value Ratio [Table Text Block] | December 31, 2020 December 31, 2019 Loan to value ratio Over 60 to 70% $ 1,874,445 $ - Over 30 to 40% 177,984 Over 10 to 20% 1,113,707 - Total $ 3,166,136 $ - |
Schedule of Mortgage Loans by Maturity Date [Table Text Block] | December 31, 2020 December 31, 2019 Maturity Date One year or less $ 2,393,900 $ - After one year through five years 772,236 - Total $ 3,166,136 $ - |
Investment Income [Table Text Block] | Years Ended December 31, 2020 2019 Fixed maturities $ 1,178,055 $ 1,164,520 Mortgages 129,621 - Equity securities 669,147 636,668 Funds withheld 1,680,220 - Cash and cash equivalents 12,501 36,359 3,669,544 1,837,547 Less investment expenses (117,283 ) (46,946 ) $ 3,552,261 $ 1,790,601 |
Note 4 - Derivative Instrumen_2
Note 4 - Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location [Table Text Block] | December 31, 2020 December 31, 2019 Derivative Derivative Balance Asset Liability Asset Liability Reported In Derivatives: Embedded derivatives: Funds withheld embedded derivative $ 653,294 $ - $ - $ - Funds withheld Period Ending Period Ending Balance December 31, 2020 December 31, 2019 Reported In Derivatives: Embedded derivatives: Change in funds withheld embedded derivative $ 653,294 $ - Net investment gains (losses) |
Note 5 - Fair Value Measureme_2
Note 5 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | December 31, 2020 Total Level 1 Level 2 Level 3 Available for sale: Fixed maturities: US Treasury securities $ 702,916 $ 702,916 $ - $ - Corporate bonds 22,947,811 - 22,761,011 186,800 Municipal bonds 6,796,654 - 6,796,654 - Redeemable preferred stock 2,990,215 - 2,990,215 - Mortgage backed and asset backed securities 4,239,982 - 4,239,982 - Total fixed maturities 37,677,578 702,916 36,787,862 186,800 Equities: Common stock 6,808,944 6,717,144 91,800 - Preferred stock 2,412,630 - 2,412,630 - Total equities 9,221,574 6,717,144 2,504,430 - Funds withheld embedded derivative 653,294 - - 653,294 Total $ 47,552,446 $ 7,420,060 $ 39,292,292 $ 840,094 December 31, 2019 Total Level 1 Level 2 Level 3 Available for sale: Fixed maturities: US Treasury securities $ 632,639 $ 632,639 $ - $ - Corporate bonds 20,084,397 - 19,892,797 191,600 Municipal bonds 7,055,059 - 7,055,059 - Redeemable preferred stock 2,133,893 - 2,133,893 - Mortgage backed and asset backed securities 3,246,904 - 3,246,904 - Total fixed maturities 33,152,892 632,639 32,328,653 191,600 Equities: Common stock 9,214,694 9,169,694 45,000 - Preferred stock 926,809 - 926,809 - Total equities 10,141,503 9,169,694 971,809 - Total $ 43,294,395 $ 9,802,333 $ 33,300,462 $ 191,600 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | For the Year Ended December 31, 2020 Corporate Funds Bonds Withheld Fair value, beginning of period $ 191,600 $ - Principal payment (4,800 ) - Investment related gains (losses), net - 653,294 Fair value, end of period $ 186,800 $ 653,294 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | December 31, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 4,320,759 $ 4,320,759 $ 4,320,759 $ - $ - Mortgage loans on real estate 3,166,136 3,166,136 3,166,136 Investment income due and accrued 423,036 423,036 - - 423,036 Funds withheld 46,176,782 46,830,076 - - 46,830,076 Policy loans 163,725 163,725 - - 163,725 Total Financial Assets (excluding available for sale investments) $ 54,250,438 $ 54,903,732 $ 4,320,759 $ - $ 50,582,973 Financial Liabilities: Federal Home Loan Bank advance $ 2,000,000 $ 2,000,000 $ - $ - $ 2,000,000 Policyholder deposits in deposit-type contracts 72,082,207 74,351,806 - - 74,351,806 Total Financial Liabilities $ 74,082,207 $ 76,351,806 $ - $ - $ 76,351,806 December 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 6,678,805 $ 6,678,805 $ 6,678,805 $ - $ - Investment income due and accrued 321,362 321,362 - - 321,362 Policy loans 118,930 118,930 - - 118,930 Total Financial Assets (excluding available for sale investments) $ 7,119,097 $ 7,119,097 $ 6,678,805 $ - $ 440,292 Financial Liabilities: Federal Home Loan Bank advance $ 1,000,000 $ 1,000,000 $ - $ - $ 1,000,000 Policyholder deposits in deposit-type contracts 19,396,614 19,186,265 - - 19,186,265 Total Financial Liabilities $ 20,396,614 $ 20,186,265 $ - $ - $ 20,186,265 |
Note 6 - Income Tax Provision (
Note 6 - Income Tax Provision (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2020 2019 Income before total federal income tax 299,175 168,050 Tax Rate 21 % 21 % Expected income tax expense (benefit) 62,827 35,291 Effect of tax-exempt income (32,318 ) (11,925 ) Disallowed deductions 1,012 693 Change in unrealized - valuation allowance and unrealized gains (losses) 148,778 - Other GAAP to tax differences 4043 (24,059 ) Reduction in valuation allowance (324,616 ) (431,158 ) Total (140,274 ) (431,159 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 12/31/2019 Change 12/31/2020 Deferred Tax Assets Net operating loss carryforwards 2,641,247 (529,816 ) 2,111,431 Unamortized Start-Up Costs 168,803 (21,100 ) 147,703 Policy owner benefit reserves 1,154,684 1,234,575 2,389,259 Goodwill - 194,670 194,670 Tax DAC 329,141 446,593 775,734 Deferred tax asset valuation allowance (2,423,438 ) 324,616 (2,098,822 ) 1,870,437 1,649,538 3,519,975 Deferred Tax Liabilities GAAP DAC 557,062 931,203 1,488,265 Fixed assets 8,699 122 8,821 8 Year Spread 233,429 (38,905 ) 194,524 Value of Business Acquired 117,599 450,080 567,679 Unrealized Gain 522,490 494,939 1,017,429 1,439,279 1,837,439 3,276,718 Net Deferred Tax 431,158 (187,901 ) 243,257 |
Note 7 - Reinsurance (Tables)
Note 7 - Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Effects of Reinsurance [Table Text Block] | December 31, 2020 December 31, 2019 Balance sheet Benefits and claim reserves ceded $ 105,621 $ 136,579 Amounts due from ceding company 59,462 50,824 Benefits and claim reserves assumed 53,069,522 12,597,007 Years ended December 31, 2020 December 31, 2019 Statements of comprehensive income Ceded premium $ 923,567 $ 800,525 Assumed premium 4,682,634 4,906,522 Allowances on ceded premium 24,077 17,672 Allowances paid on assumed premium 6,765,030 495,327 Assumed benefits and policyholder reserve increases 5,243,836 4,269,695 |
Note 12 - Statutory Net Incom_2
Note 12 - Statutory Net Income and Surplus (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Statutory Accounting Practices Disclosure [Table Text Block] | Statutory Capital and Surplus as of December 31 December 31 2020 2019 US Alliance Life and Security Company $ 6,242,080 $ 5,831,153 Dakota Capital Life Insurance Company 3,700,272 1,472,930 US Alliance Life and Security Company - Montana 1,709,032 1,674,410 Statutory Net Income (loss) for the years ended December 31, 2020 2019 US Alliance Life and Security Company $ (1,960,666 ) $ 6,120 Dakota Capital Life Insurance Company (31,734 ) 116,748 US Alliance Life and Security Company - Montana 39,410 (44,873 ) |
Note 1 - Description of Busin_3
Note 1 - Description of Business and Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Wholly-Owned Operating Subsidiaries | 5 | |
Cash, FDIC Insured Amount | $ 250,000 | |
Amortization of Value of Business Acquired (VOBA), Amortization Period (Year) | 30 years | |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.10 | $ 0.10 |
Common Stock, Shares Authorized (in shares) | 20,000,000 | 20,000,000 |
Common Stock, Shares, Issued, Total (in shares) | 7,741,487 | 7,734,004 |
Weighted Average Number of Shares Outstanding, Basic and Diluted (in shares) | 7,738,693 | 7,688,560 |
Interest Rate Risk, Fixed Income Securities, Impact of 1 Percent Increase in Interest Rate | 9.30% | |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 7,741,487 | 7,734,004 |
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 | 90.00% | |
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 | $ 116,019 | $ 127,711 |
Computer Equipment [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 5 years | |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 10 years | |
Product Concentration Risk [Member] | Direct Premium Revenue [Member] | Single Pay Life Products [Member] | ||
Concentration Risk, Percentage | 61.00% | |
Product Concentration Risk [Member] | Direct Premium Revenue [Member] | Individual Life Products [Member] | ||
Concentration Risk, Percentage | 21.00% | |
Product Concentration Risk [Member] | Direct Premium Revenue [Member] | Group Life Products [Member] | ||
Concentration Risk, Percentage | 18.00% |
Note 1 - Description of Busin_4
Note 1 - Description of Business and Significant Accounting Policies - Information About Deferred Acquisition Costs (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Balance at beginning of period | $ 2,652,674 | $ 2,757,404 |
DAC on reinsurance recapture | (1,146,150) | |
Capitalization of commissions, sales and issue expenses | 6,569,752 | 328,488 |
Amortization net of interest | (970,386) | (433,218) |
Balance at end of period | $ 7,105,890 | $ 2,652,674 |
Note 1 - Description of Busin_5
Note 1 - Description of Business and Significant Accounting Policies - Major Categories of Depreciable Assets and Respective Book Values (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accumulated depreciation | $ (34,043) | $ (74,324) |
Property, equipment and software, net | 37,818 | 43,841 |
Computer Equipment [Member] | ||
Property, equipment and software, gross | 32,182 | 20,755 |
Furniture and Equipment [Member] | ||
Property, equipment and software, gross | $ 39,679 | $ 97,410 |
Note 1 - Description of Busin_6
Note 1 - Description of Business and Significant Accounting Policies - Deferred Annuity Deposit-Type Contracts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Balance at beginning of period | $ 19,396,614 | |
Receipts on deposit-type contracts | 6,805,322 | $ 3,535,094 |
Interest credited | 1,099,483 | 593,794 |
Withdrawals on deposit-type contracts | (2,212,746) | (1,358,492) |
Balance at end of period | 72,082,207 | 19,396,614 |
Deferred Annuity Deposit-type Contracts [Member] | ||
Balance at beginning of period | 19,063,141 | 16,201,166 |
Receipts on deposit-type contracts | 53,877,845 | 3,517,203 |
Interest credited | 1,090,820 | 583,038 |
Withdrawals on deposit-type contracts | (2,188,523) | (1,238,266) |
Balance at end of period | 71,843,283 | 19,063,141 |
Deferred Annuity Deposit-type Contracts [Member] | ALSC [Member] | Dakota Capital Life Insurance Company [Member] | ||
Recaptured by American Life & Security Corp | (6,799,716) | |
Acquired from American Life & Security Corp | 6,799,716 | |
Premium Deposit Fund Deposit-type Contracts [Member] | ||
Balance at beginning of period | 333,473 | 425,052 |
Receipts on deposit-type contracts | 6,180 | 17,891 |
Interest credited | 8,663 | 10,756 |
Withdrawals on deposit-type contracts | (109,392) | (120,226) |
Balance at end of period | 238,924 | 333,473 |
Premium Deposit Fund Deposit-type Contracts [Member] | ALSC [Member] | Dakota Capital Life Insurance Company [Member] | ||
Recaptured by American Life & Security Corp | (93,845) | |
Acquired from American Life & Security Corp | $ 93,845 |
Note 2 - Acquisitions - Fair Va
Note 2 - Acquisitions - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Value of business acquired | $ 2,703,233 | $ 559,994 |
ALSC [Member] | Dakota Capital Life Insurance Company [Member] | ||
Net consideration to ALSC | 927,000 | |
Investment securities | 7,990,509 | |
Cash receivable | 2,117,591 | |
Policy loan assets | 101,736 | |
Value of business acquired | 2,163,541 | |
Policyholder reserves | (4,552,816) | |
Deposit type contracts | (6,893,561) | |
Total identifiable net assets | $ 927,000 |
Note 3 - Investments (Details T
Note 3 - Investments (Details Textual) | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Proceeds from Sale, Maturity and Collection of Investments, Total | $ 7,795,116 | $ 8,605,475 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 8 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax, Total | $ 1,231 | |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Total | 0 | 0 |
Mortgage Loans, Non-accrued Status | 0 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Principal Amount of Delinquent Loans | 0 | |
Allowance for Loan and Lease Losses, Real Estate | 0 | |
Debt and Equity Securities, Unrealized Gain (Loss), Total | 299,373 | 1,256,769 |
Debt and Equity Securities, Realized Gain (Loss), Total | 1,014,347 | (214,435) |
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net, Total | $ 653,294 | |
Fixed Income Securities [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 3 | |
Collateralized Mortgage Backed Securities [Member] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total | 4 | |
Preferred Stock [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, 2020 | Dec. 31, 2019 |
Debt securities, amortized cost | $ 33,784,518 | $ 30,823,397 |
Gross Unrealized Gains | 3,894,291 | 2,353,766 |
Gross Unrealized Losses | (1,231) | (24,271) |
Investments in available-for-sale securities, at fair value | 37,677,578 | 33,152,892 |
Fixed Maturities [Member] | ||
Debt securities, amortized cost | 33,784,518 | 30,823,397 |
Investments in available-for-sale securities, at fair value | 37,677,578 | 33,152,892 |
US Treasury Securities [Member] | Fixed Maturities [Member] | ||
Debt securities, amortized cost | 574,935 | 608,477 |
Gross Unrealized Gains | 127,981 | 24,162 |
Gross Unrealized Losses | ||
Investments in available-for-sale securities, at fair value | 702,916 | 632,639 |
Corporate Debt Securities [Member] | Fixed Maturities [Member] | ||
Debt securities, amortized cost | 20,126,836 | 18,407,211 |
Gross Unrealized Gains | 2,821,508 | 1,697,265 |
Gross Unrealized Losses | (533) | (20,079) |
Investments in available-for-sale securities, at fair value | 22,947,811 | 20,084,397 |
US States and Political Subdivisions Debt Securities [Member] | Fixed Maturities [Member] | ||
Debt securities, amortized cost | 5,992,707 | 6,538,883 |
Gross Unrealized Gains | 804,443 | 518,059 |
Gross Unrealized Losses | (496) | (1,883) |
Investments in available-for-sale securities, at fair value | 6,796,654 | 7,055,059 |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ||
Debt securities, amortized cost | 2,900,330 | 2,097,206 |
Gross Unrealized Gains | 90,085 | 36,687 |
Gross Unrealized Losses | (200) | |
Investments in available-for-sale securities, at fair value | 2,990,215 | 2,133,893 |
Collateralized Mortgage Backed Securities [Member] | Fixed Maturities [Member] | ||
Debt securities, amortized cost | 4,189,710 | 3,171,620 |
Gross Unrealized Gains | 50,274 | 77,593 |
Gross Unrealized Losses | (2) | (2,309) |
Investments in available-for-sale securities, at fair value | $ 4,239,982 | $ 3,246,904 |
Note 3 - Investments - Amorti_2
Note 3 - Investments - Amortized Cost and Fair Value of Debt Securities By Contractual Maturity (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt securities, amortized cost | $ 33,784,518 | $ 30,823,397 |
Equity securities, at fair value | 37,677,578 | 33,152,892 |
Fixed Maturities [Member] | ||
One year or less, amortized cost | 373,590 | 99,987 |
One year or less, fair value | 379,823 | 100,239 |
After one year through five years, amortized cost | 1,540,931 | 1,424,337 |
After one year through five years, fair value | 1,641,749 | 1,471,552 |
After five years through ten years, amortized cost | 2,887,066 | 3,286,937 |
After five years through ten years, fair value | 3,379,930 | 3,574,191 |
More than 10 years, amortized cost | 21,892,891 | 20,743,310 |
More than 10 years, fair value | 25,045,879 | 22,626,113 |
Debt securities, amortized cost | 33,784,518 | 30,823,397 |
Equity securities, at fair value | 37,677,578 | 33,152,892 |
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | ||
Debt securities, amortized cost | 2,900,330 | 2,097,206 |
Debt securities, fair value | 2,990,215 | 2,133,893 |
Debt securities, amortized cost | 2,900,330 | 2,097,206 |
Equity securities, at fair value | 2,990,215 | 2,133,893 |
Fixed Maturities [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Debt securities, amortized cost | 4,189,710 | 3,171,620 |
Debt securities, fair value | 4,239,982 | 3,246,904 |
Debt securities, amortized cost | 4,189,710 | 3,171,620 |
Equity securities, at fair value | $ 4,239,982 | $ 3,246,904 |
Note 3 - Investments - Realized
Note 3 - Investments - Realized Gains and Losses Related to the Sale of Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Gross gains | $ 1,388,209 | $ 43,935 |
Gross losses | (373,862) | (258,370) |
Realized gains (losses) | $ 1,014,347 | $ (214,435) |
Note 3 - Investments - Gross Un
Note 3 - Investments - Gross Unrealized Losses (Details) - Fixed Maturities [Member] - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale securities, less than 12 months, fair value | $ 644,936 | $ 1,014,494 |
Available-for-sale securities, less than 12 months, unrealized loss | (700) | (21,962) |
Available-for-sale securities, greater than 12 months, fair value | 49,438 | 296,576 |
Available-for-sale securities, greater than 12 months, unrealized loss | (531) | (2,309) |
Available-for-sale securities, fair value | 694,374 | 1,311,070 |
Available-for-sale securities, unrealized loss | (1,231) | (24,271) |
Available-for-sale securities, greater than 12 months, unrealized loss | 531 | 2,309 |
Corporate Debt Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 210,625 | 967,848 |
Available-for-sale securities, less than 12 months, unrealized loss | (2) | (20,079) |
Available-for-sale securities, greater than 12 months, fair value | 49,438 | |
Available-for-sale securities, greater than 12 months, unrealized loss | (531) | |
Available-for-sale securities, fair value | 260,063 | 967,848 |
Available-for-sale securities, unrealized loss | (533) | (20,079) |
Available-for-sale securities, greater than 12 months, unrealized loss | 531 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 47,249 | 46,646 |
Available-for-sale securities, less than 12 months, unrealized loss | (496) | (1,883) |
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 | 47,249 | 46,646 |
Available-for-sale securities, unrealized loss | (496) | (1,883) |
Available-for-sale securities, greater than 12 months, unrealized loss | ||
Collateralized Mortgage Backed Securities [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 309,144 | |
Available-for-sale securities, less than 12 months, unrealized loss | (2) | |
Available-for-sale securities, greater than 12 months, fair value | 296,576 | |
Available-for-sale securities, greater than 12 months, unrealized loss | (2,309) | |
Available-for-sale securities, fair value | 309,144 | 296,576 |
Available-for-sale securities, unrealized loss | (2) | (2,309) |
Available-for-sale securities, greater than 12 months, unrealized loss | $ 2,309 | |
Redeemable Preferred Stock [Member] | ||
Available-for-sale securities, less than 12 months, fair value | 77,918 | |
Available-for-sale securities, less than 12 months, unrealized loss | (200) | |
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 | 77,918 | |
Available-for-sale securities, unrealized loss | (200) | |
Available-for-sale securities, greater than 12 months, unrealized loss |
Note 3 - Investments - Mortgage
Note 3 - Investments - Mortgage Loans by Property Type (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Total commercial mortgages | $ 3,166,136 | |
Student Housing [Member] | ||
Total commercial mortgages | 781,512 | |
Condominium [Member] | ||
Total commercial mortgages | 1,874,445 | |
Multi-property [Member] | ||
Total commercial mortgages | 332,195 | |
Multifamily [Member] | ||
Total commercial mortgages | $ 177,984 |
Note 3 - Investments - Mortga_2
Note 3 - Investments - Mortgage Loans by Loan-to-Value Ratio (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Total commercial mortgages | $ 3,166,136 | |
Debt-to-Value Ratio, 70 to 80 Percent [Member] | ||
Total commercial mortgages | 1,874,445 | |
Debt-to-Value Ratio, 20 to 30 Percent [Member] | ||
Total commercial mortgages | 177,984 | |
Debt-to-Value Ratio, 10 to 20 Percent [Member] | ||
Total commercial mortgages | $ 1,113,707 |
Note 3 - Investments - Mortga_3
Note 3 - Investments - Mortgage Loans by Maturity Date (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
One year or less | $ 2,393,900 | |
After one year through five years | 772,236 | |
Total commercial mortgages | $ 3,166,136 |
Note 3 - Investments - Componen
Note 3 - Investments - Components of Net Investment Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investment income | $ 3,669,544 | $ 1,837,547 |
Less investment expenses | (117,283) | (46,946) |
Investment income, net | 3,552,261 | 1,790,601 |
Fixed Maturities [Member] | ||
Investment income | 1,178,055 | 1,164,520 |
Mortgages [Member] | ||
Investment income | 129,621 | |
Equity Securities [Member] | ||
Investment income | 669,147 | 636,668 |
Funds Withheld on Coinsurance Assets [Member] | ||
Investment income | 1,680,220 | |
Cash and Cash Equivalents [Member] | ||
Investment income | $ 12,501 | $ 36,359 |
Note 4 - Derivative Instrumen_3
Note 4 - Derivative Instruments - Fair Value of Derivative Financial Instruments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Funds withheld embedded derivative, asset | $ 653,294 | |
Funds withheld embedded derivative, liability | ||
Change in funds withheld embedded derivative | $ 653,294 |
Note 5 - Fair Value Measureme_3
Note 5 - Fair Value Measurements (Details Textual) $ in Thousands | Dec. 31, 2020USD ($) |
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | $ 0 |
Note 5 - Fair Value Measureme_4
Note 5 - Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Investments in available-for-sale securities, at fair value | $ 37,677,578 | $ 33,152,892 |
Funds withheld embedded derivative | ||
Fair Value, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 47,552,446 | 43,294,395 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | 7,420,060 | 9,802,333 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 39,292,292 | 33,300,462 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | 840,094 | 191,600 |
Fixed Maturities [Member] | ||
Investments in available-for-sale securities, at fair value | 37,677,578 | 33,152,892 |
Fixed Maturities [Member] | Fair Value, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 37,677,578 | 33,152,892 |
Fixed Maturities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | 702,916 | 632,639 |
Fixed Maturities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 36,787,862 | 32,328,653 |
Fixed Maturities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | 186,800 | 191,600 |
Fixed Maturities [Member] | US Treasury Securities [Member] | ||
Investments in available-for-sale securities, at fair value | 702,916 | 632,639 |
Fixed Maturities [Member] | US Treasury Securities [Member] | Fair Value, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 702,916 | 632,639 |
Fixed Maturities [Member] | US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | 702,916 | 632,639 |
Fixed Maturities [Member] | US Treasury Securities [Member] | Fair Value, 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, 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 | 22,947,811 | 20,084,397 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 22,947,811 | 20,084,397 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | Fair Value, 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, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 22,761,011 | 19,892,797 |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | 186,800 | 191,600 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Investments in available-for-sale securities, at fair value | 6,796,654 | 7,055,059 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 6,796,654 | 7,055,059 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, 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, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 6,796,654 | 7,055,059 |
Fixed Maturities [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, 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 | 2,990,215 | 2,133,893 |
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | Fair Value, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 2,990,215 | 2,133,893 |
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | Fair Value, 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, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 2,990,215 | 2,133,893 |
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | Fair Value, 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 | 4,239,982 | 3,246,904 |
Fixed Maturities [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 4,239,982 | 3,246,904 |
Fixed Maturities [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, 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, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 4,239,982 | 3,246,904 |
Fixed Maturities [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, 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 | 9,221,574 | 10,141,503 |
Equity Securities [Member] | Fair Value, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 9,221,574 | 10,141,503 |
Equity Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | 6,717,144 | 9,169,694 |
Equity Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 2,504,430 | 971,809 |
Equity Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Equity Securities [Member] | Common Stock [Member] | Fair Value, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 6,808,944 | 9,214,694 |
Equity Securities [Member] | Common Stock [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | 6,717,144 | 9,169,694 |
Equity Securities [Member] | Common Stock [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 91,800 | 45,000 |
Equity Securities [Member] | Common Stock [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Equity Securities [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member] | ||
Investments in available-for-sale securities, at fair value | 2,412,630 | 926,809 |
Equity Securities [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Equity Securities [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Investments in available-for-sale securities, at fair value | 2,412,630 | 926,809 |
Equity Securities [Member] | Preferred Stock [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Investments in available-for-sale securities, at fair value | ||
Funds Withheld on Coinsurance Assets [Member] | Fair Value, Recurring [Member] | ||
Funds withheld embedded derivative | 653,294 | |
Funds Withheld on Coinsurance Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Funds withheld embedded derivative | ||
Funds Withheld on Coinsurance Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Funds withheld embedded derivative | ||
Funds Withheld on Coinsurance Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Funds withheld embedded derivative | $ 653,294 |
Note 5 - Fair Value Measureme_5
Note 5 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) - Fair Value, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Corporate Debt Securities [Member] | |
Fair value, beginning of period | $ 191,600 |
Principal payment | (4,800) |
Investment related gains (losses), net | |
Fair value, end of period | 186,800 |
Funds Withheld on Coinsurance Assets [Member] | |
Fair value, beginning of period | |
Principal payment | |
Investment related gains (losses), net | 653,294 |
Fair value, end of period | $ 653,294 |
Note 5 - Fair Value Measureme_6
Note 5 - Fair Value Measurements - Estimated Fair Values of the Company's Financial Assets and Liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Reported Value Measurement [Member] | ||
Cash and cash equivalents | $ 4,320,759 | $ 6,678,805 |
Mortgage loans on real estate | 3,166,136 | |
Investment income due and accrued | 423,036 | 321,362 |
Funds withheld | 46,176,782 | |
Policy loans | 163,725 | 118,930 |
Total Financial Assets (excluding available for sale investments) | 54,250,438 | 7,119,097 |
Federal Home Loan Bank advance | 2,000,000 | 1,000,000 |
Policyholder deposits in deposit-type contracts | 72,082,207 | 19,396,614 |
Total Financial Liabilities | 74,082,207 | 20,396,614 |
Federal Home Loan Bank advance | 2,000,000 | 1,000,000 |
Estimate of Fair Value Measurement [Member] | ||
Cash and cash equivalents | 4,320,759 | 6,678,805 |
Mortgage loans on real estate | 3,166,136 | |
Investment income due and accrued | 423,036 | 321,362 |
Funds withheld | 46,830,076 | |
Policy loans | 163,725 | 118,930 |
Total Financial Assets (excluding available for sale investments) | 54,903,732 | 7,119,097 |
Federal Home Loan Bank advance | 2,000,000 | 1,000,000 |
Policyholder deposits in deposit-type contracts | 74,351,806 | 19,186,265 |
Total Financial Liabilities | 76,351,806 | 20,186,265 |
Federal Home Loan Bank advance | 2,000,000 | 1,000,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | 4,320,759 | 6,678,805 |
Mortgage loans on real estate | ||
Investment income due and accrued | ||
Funds withheld | ||
Policy loans | ||
Total Financial Assets (excluding available for sale investments) | 4,320,759 | 6,678,805 |
Federal Home Loan Bank advance | ||
Policyholder deposits in deposit-type contracts | ||
Total Financial Liabilities | ||
Federal Home Loan Bank advance | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Cash and cash equivalents | ||
Mortgage loans on real estate | ||
Investment income due and accrued | ||
Funds withheld | ||
Policy loans | ||
Total Financial Assets (excluding available for sale investments) | ||
Federal Home Loan Bank advance | ||
Policyholder deposits in deposit-type contracts | ||
Total Financial Liabilities | ||
Federal Home Loan Bank advance | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Cash and cash equivalents | ||
Mortgage loans on real estate | 3,166,136 | |
Investment income due and accrued | 423,036 | 321,362 |
Funds withheld | 46,830,076 | |
Policy loans | 163,725 | 118,930 |
Total Financial Assets (excluding available for sale investments) | 50,582,973 | 440,292 |
Federal Home Loan Bank advance | 2,000,000 | 1,000,000 |
Policyholder deposits in deposit-type contracts | 74,351,806 | 19,186,265 |
Total Financial Liabilities | 76,351,806 | 20,186,265 |
Federal Home Loan Bank advance | $ 2,000,000 | $ 1,000,000 |
Note 6 - Income Tax Provision_2
Note 6 - Income Tax Provision (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% |
Unrealized Gain (Loss) on Investments, Tax | $ 328,181 | |
Income Tax Expense (Benefit), Reduction of Deferred Tax Asset Valuation Allowance | (140,279) | |
Deferred Tax Assets, Net, Increase (Decrease) During Period | (187,901) | |
Deferred Income Tax Assets, Net, Total | 243,257 | $ 431,158 |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards, Total | $ 10,054,432 | $ 12,577,367 |
Note 6 - Income Tax Provision -
Note 6 - Income Tax Provision - Reconciliation of Income Tax (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income before total federal income tax | $ 299,175 | $ 168,050 |
Tax Rate | 21.00% | 21.00% |
Expected income tax expense (benefit) | $ 62,827 | $ 35,291 |
Effect of tax-exempt income | (32,318) | (11,925) |
Disallowed deductions | 1,012 | 693 |
Change in unrealized - valuation allowance and unrealized gains (losses) | 148,778 | |
Other GAAP to tax differences | 4,043 | (24,059) |
Reduction in valuation allowance | (324,616) | (431,158) |
Total | $ (140,274) | $ (431,159) |
Note 6 - Income Tax Provision_3
Note 6 - Income Tax Provision - Deferred Tax Assets and Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net operating loss carryforwards | $ 2,111,431 | $ 2,641,247 |
Net operating loss carryforwards, change | (529,816) | |
Unamortized Start-Up Costs | 147,703 | 168,803 |
Unamortized Start-Up Costs, change | (21,100) | |
Policy owner benefit reserves | 2,389,259 | 1,154,684 |
Policy owner benefit reserves, change | 1,234,575 | |
Goodwill | 194,670 | |
Goodwill, change | 194,670 | |
Tax DAC | 775,734 | 329,141 |
Tax DAC, change | 446,593 | |
Deferred tax asset valuation allowance | (2,098,822) | (2,423,438) |
Deferred tax asset valuation allowance, change | 324,616 | |
Deferred Tax Assets, Net of Valuation Allowance, Total | 3,519,975 | 1,870,437 |
Deferred tax asset, change | 1,649,538 | |
GAAP DAC | 1,488,265 | 557,062 |
GAAP DAC, change | 931,203 | |
Fixed assets | 8,821 | 8,699 |
Fixed assets, change | 122 | |
8 Year Spread | 194,524 | 233,429 |
8 Year Spread, change | (38,905) | |
Value of Business Acquired | 567,679 | 117,599 |
Value of Business Acquired, change | 450,080 | |
Unrealized Gain | 1,017,429 | 522,490 |
Unrealized Gain, change | 494,939 | |
Deferred Tax Liabilities, Gross, Total | 3,276,718 | 1,439,279 |
Deferred tax liability, change | 1,837,439 | |
Net Deferred Tax | 243,257 | $ 431,158 |
Net Deferred Tax, change | $ (187,901) |
Note 7 - Reinsurance - Summary
Note 7 - Reinsurance - Summary of Significant Reinsurance Amounts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Benefits and claim reserves ceded | $ 105,621 | $ 136,579 |
Amounts due from ceding company | 59,462 | 50,824 |
Benefits and claim reserves assumed | 53,069,522 | 12,597,007 |
Ceded premium | 923,567 | 800,525 |
Assumed premium | 4,682,634 | 4,906,522 |
Allowances on ceded premium | 24,077 | 17,672 |
Allowances paid on assumed premium | 6,765,030 | 495,327 |
Assumed benefits and policyholder reserve increases | $ 5,243,836 | $ 4,269,695 |
Note 8 - Lease Commitments (Det
Note 8 - Lease Commitments (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Lease, Expense | $ 48,146 | $ 45,785 |
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 8,446 |
Note 9 - Related Party Transa_2
Note 9 - Related Party Transactions (Details Textual) - Brier Development Company, Inc. [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Entity Shares Owned Related Party (in shares) | 20,000 | |
Reimbursements for Long-term Care and Allowance for Vehicle Expenses [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 21,019 | $ 19,421 |
Note 10 - Federal Home Loan B_2
Note 10 - Federal Home Loan Bank Advances (Details Textual) | Jun. 22, 2020 | Apr. 23, 2020 | Oct. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Proceeds from FHLBank Borrowings, Financing Activities | $ 1,000,000 | $ 1,000,000 | |||
Long-term Federal Home Loan Bank Advances, Total | 2,000,000 | $ 1,000,000 | |||
Collateralized Mortgage Backed Securities [Member] | |||||
Pledged Assets Separately Reported, Securities Pledged for Federal Home Loan Bank, at Fair Value | 2,372,402 | ||||
Federal Home Loan Bank of Topeka [Member] | |||||
FHLB Stock to be Purchased upon FHLB Borrowing, Percent | 4.50% | ||||
Proceeds from FHLBank Borrowings, Financing Activities | $ 1,000,000 | ||||
Payments to Acquire Federal Home Loan Bank Stock | $ 45,000 | ||||
Long-term Federal Home Loan Bank Advances, Total | $ 1,000,000 | ||||
Debt Instrument, Term (Year) | 2 years | 2 years | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 0.28% | 0.37% | 1.66% | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Number of Advances | 2 | ||||
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 2,000,000 | ||||
Federal Home Loan Bank of Topeka [Member] | Federal Home Loan Bank Advances [Member] | |||||
Debt Instrument, Term (Year) | 10 years |
Note 11 - Restricted Funds (Det
Note 11 - Restricted Funds (Details Textual) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Assets Held-in-trust, Total | $ 625,000 | $ 625,000 |
State of Missouri [Member] | ||
Deposit Assets, Total | 300,000 | |
North Dakota Insurance Department [Member] | Dakota Capital Life [Member] | ||
Deposit Assets, Total | 200,000 | |
Montana Department of Insurance [Member] | US Alliance Life and Security Company ("USALSC") [Member] | ||
Deposit Assets, Total | 325,000 | |
Minimum [Member] | ||
Assets Held-in-trust, Total | $ 400,000 |
Note 12 - Statutory Net Incom_3
Note 12 - Statutory Net Income and Surplus - Statutory Accounting Practices Disclosure (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
KANSAS | ||
Statutory Capital and Surplus | $ 6,242,080 | $ 5,831,153 |
Statutory Net Loss | (1,960,666) | 6,120 |
NORTH DAKOTA | ||
Statutory Capital and Surplus | 3,700,272 | 1,472,930 |
Statutory Net Loss | (31,734) | 116,748 |
MONTANA 1 [Member] | ||
Statutory Capital and Surplus | 1,709,032 | 1,674,410 |
Statutory Net Loss | $ 39,410 | $ (44,873) |