Midwest Holding (MDWT) 10-Q 14 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 01, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Entity Registrant Name	MIDWEST HOLDING INC.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		1,361,557,779
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000355379
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Assets
Investments, available for sale, at fair value fixed maturities	$ 200,110,287	$ 117,241,861
Mortgage loans on real estate, held for investment	51,171,943	13,810,041
Derivatives instruments (See Note 6)	3,228,102	575,294
Other invested assets	3,090,964	2,468,947
Preferred stock		500,000
Investment escrow		3,899,986
Notes receivable	5,488,101
Policy loans	141,172	106,014
Total investments	263,230,569	138,602,143
Cash and cash equivalents	75,041,902	43,716,205
Deferred acquisition costs, net	3,968,748
Premiums receivable	349,649	355,959
Accrued investment income	3,471,429	1,511,200
Reinsurance recoverables (See Note 9)	43,355,941	30,579,524
Intangible assets	700,000	700,000
Property and equipment, net	105,685	85,395
Operating lease right of use assets	409,165	470,132
Other assets	3,933,728	241,580
Assets associated with business held for sale (See Note 3)	1,142,379	3,653,748
Total assets	395,709,195	219,915,886
Liabilities:
Benefit reserves	16,434,819	16,319,912
Policy claims	232,923	225,228
Deposit-type contracts (See note 12)	321,830,976	171,168,785
Advance premiums	646	261
Deferred gain on coinsurance transactions	11,487,084	7,578,195
Lease liabilities (See Note 14):
Finance lease		1,860
Operating lease	460,791	524,248
Other liabilities	18,167,460	6,291,782
Liabilities associated with business held for sale (See Note 3)	1,141,778	3,646,867
Total liabilities	369,756,477	205,757,138
Contingencies and Commitments (See Note 13)
Stockholders' Equity:
Common stock, $0.001 par value; authorized 1,970,000,000 shares; 1,361,557,779 issued and outstanding as of June 30, 2020 and 1,023,408,553 as of December 31, 2019.	1,361,786	1,023,409
Additional paid-in capital	67,725,643	53,472,988
Accumulated deficit	(36,070,591)	(41,081,710)
Accumulated other comprehensive (loss) income (See Note 6)	(7,064,120)	619,584
Total Midwest Holding Inc.'s stockholders' equity	25,952,718	14,034,271
Noncontrolling interest		124,477
Total stockholders' equity	25,952,718	14,158,748
Total liabilities and stockholders' equity	$ 395,709,195	$ 219,915,886

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	May 09, 2019	May 09, 2018
Assets
Cost or Amortized Cost	$ 206,950,851	$ 116,676,312
Stockholders' Equity:
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	1,970,000,000	1,970,000,000	1,970,000,000	1,970,000,000
Common stock, shares issued	1,361,557,779	1,023,408,553
Common stock, shares outstanding	1,361,557,779	1,023,408,553

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues
Insurance premiums	$ 30		$ 51	$ (2,479)
Investment income, net of expenses	(397,842)	448,015	843,136	639,010
Net realized (losses) gains on investments (See Note 5)	(12,819,871)	1,180	9,780,139	(3,217)
Amortization of deferred gain on reinsurance	338,269	1,046,552	520,707	1,852,599
Miscellaneous income	396,061	66,795	786,105	82,335
Total revenues	(12,483,353)	1,562,542	11,930,138	2,568,248
Expenses:
Interest credited	(128,052)	230,366	83,150	251,187
Benefits	4,016	(1,523)	(3,087)	1,872
Amortization of deferred acquisition costs	100,388	19,796	140,897	21,865
Salaries and benefits	1,354,934	575,625	2,179,830	1,115,074
Other operating expenses	2,305,687	1,570,130	3,630,800	3,505,120
Total expenses	3,636,973	2,394,394	6,031,590	4,895,118
(Loss) gain from continuing operations before taxes (See note 8)	(16,120,326)	(831,852)	5,898,548	(2,326,870)
Income tax expense	(479,513)	0	(887,429)	0
Net (loss) gain	(16,599,839)	(831,852)	5,011,119	(2,326,870)
Comprehensive income (loss):
Unrealized gains on investments arising during period, net of tax	6,673,662	863,186	2,502,690	1,711,156
Unrealized losses on foreign currency	(976)		(406,255)
Less: reclassification adjustment for net realized losses (gains) on investments	12,819,871	(1,180)	(9,780,139)	3,217
Other comprehensive income (loss)	19,492,557	862,006	(7,683,704)	1,714,373
Comprehensive income (loss):	$ 2,892,718	$ 30,154	$ (2,672,585)	$ (612,497)
Net (loss) gain per common share
Basic	$ (0.013)	$ (0.004)	$ 0.004	$ (0.020)
Diluted	$ (0.013)	$ (0.004)	$ 0.004	$ (0.019)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	AOCI	Noncontrolling Interest.	Total
Balance at Dec. 31, 2018	$ 22,874	$ 33,006,242	$ (35,348,052)	$ (1,818,014)		$ (4,136,950)
Net income (loss)			(5,733,658)			(5,733,658)
Xenith note interest waived		845,536				845,536
Xenith note conversion	927,680	18,172,320				19,100,000
Class C preferred stock conversion	72,855	1,427,145				1,500,000
Employee stock options		21,745				21,745
Change in equity of noncontrolling interests					$ 124,477	124,477
Unrealized gains (losses) on investments				2,291,413		2,291,413
Unrealized gain(losses) on foreign currency				146,185		146,185
Balance at Dec. 31, 2019	1,023,409	53,472,988	(41,081,710)	619,584	124,477	14,158,748
Net income (loss)			5,011,119			5,011,119
Capital raise, net of $285,468 related expenses	338,377	14,603,156				14,941,533
Employee stock options		25,022				25,022
Purchase of remaining 49% of 1505 Capital LLC		(375,523)			$ (124,477)	(500,000)
Unrealized gains (losses) on investments				(7,277,449)		(7,277,449)
Unrealized gain(losses) on foreign currency				(406,255)		(406,255)
Balance at Jun. 30, 2020	$ 1,361,786	$ 67,725,643	$ (36,070,591)	$ (7,064,120)		$ 25,952,718

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical)	6 Months Ended
	Jun. 30, 2020USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance costs	$ 285,468
Ownership percentage acquired	49.00%

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash Flows from Operating Activities:
Net income (loss)	$ 5,011,119	$ (2,326,870)
Adjustments to arrive at cash provided by operating activities:
Net premium and discount on investments	104,947	49,751
Depreciation and amortization	804,289	32,254
Stock options	25,022
Amortization of deferred acquisition costs	140,897	21,865
Deferred acquisition costs capitalized	(4,118,436)	(1,157,073)
Net realized (gains) losses on investments	(9,780,139)	4,142
Deferred coinsurance ceding commission	3,908,889	(1,838,878)
Notes payable interest accrued		845,536
Changes in operating assets and liabilities:
Reinsurance recoverables	(4,304,381)	(404,451)
Interest and dividends due and accrued	(1,960,229)	(255,955)
Premiums receivable	6,310	(12,861)
Policy liabilities	3,958,101	672,825
Other assets and liabilities	8,678,265	(421,469)
Other assets and liabilities - discontinued operations	6,280	(120,419)
Net cash provided by or (used in) for operating activities	2,480,934	(4,911,603)
Securities available for sale:
Purchases	(107,759,107)	(24,117,739)
Proceeds from sale or maturity	18,409,038	2,406,165
Mortgage loans on real estate, held for investment purchases
Purchases	(35,531,866)	(4,176,039)
Proceeds from sale	2,069,950
Purchases of derivatives	(2,643,989)
Other invested assets
Purchases	(7,011,102)
Proceeds from sale	5,612,112
Notes receivable	(5,488,101)
Net change in policy loans	(35,158)	589
Net purchases of property and equipment	(45,513)	(17,348)
Net cash used in investing activities	(132,423,736)	(25,904,372)
Cash Flows from Financing Activities:
Finance lease	(111)	(222)
Capital contribution	14,941,533
1505 Capital LLC purchase	(500,000)
Net transfers to noncontrolling interest		1,846
Receipts on deposit-type contracts	147,486,013	38,267,011
Withdrawals on deposit-type contracts	(658,936)	(11,003)
Net cash provided by financing activities	161,268,499	38,257,632
Net increase in cash and cash equivalents	31,325,697	7,441,657
Cash and cash equivalents:
Beginning	43,716,205	2,832,567
Ending	$ 75,041,902	10,274,224
Conversion of notes payable
Book value of note payable		(19,100,000)
Common stock		927,680
Additional paid in capital		18,172,320
Conversion of preferred stock
Book value of preferred stock		(1,500,000)
Common stock		72,855
Additional paid in capital		$ 1,427,145

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Nature of Operations and Basis of Presentation	Note 1. Nature of Operations and Basis of Presentation Nature of Operations Midwest Holding Inc. (“Midwest,” “the Company,” “we,” “our,” or “us”) was incorporated in Nebraska on October 31, 2003 for the primary purpose of operating a financial services company. The Company is in the life and annuity insurance business and operates through its wholly owned subsidiary, American Life & Security Corp. (“American Life”). As discussed in Note 3, on June 28, 2018, we underwent a change in control as a result of the closing of a Loan, Convertible Preferred Stock and Convertible Senior Secured Note Purchase Agreement dated May 9, 2018 with a non-affiliated third party, Xenith Holdings LLC, a Delaware limited liability company (“Xenith”). On April 2, 2019, we obtained a 51% ownership in 1505 Capital, a Delaware limited liability company, that was established in 2018 to provide financial and investment advisory and management services to clients and related investment activities. On June 15, 2020, we purchased the remaining 49% ownership in 1505 Capital for $500,000. 1505 Capital’s financial results have been consolidated with the Company’s since the date of its acquisition. Effective March 12, 2020, Seneca Reinsurance Company, LLC (“Seneca Re”), a Vermont limited liability company, was formed by Midwest to operate as a sponsored captive insurance company for the purpose of insuring and reinsuring various types of risks of its participants through one or more protected cells and to conduct any other business or activity that is permitted for sponsored captive insurance companies under Vermont insurance regulations. On March 30, 2020, Seneca Re received its Certification of Authority to transact the business of a captive insurance company. On May 12, 2020, Midwest contributed $300,000 to Seneca Re for a 100% ownership interest. As of June 30, 2020, Seneca Re had one Protected Cell-2020-01 (“SRC1”). Midwest contributed $3,000,000 to capitalize SRC1. On April 24, 2020, Midwest entered into a Securities Purchase Agreement with Crestline Assurance Holdings LLC (“Crestline”), a Delaware limited liability company (“Crestline”) and Xenith, Vespoint LLC, a Delaware limited liability company (“Vespoint”), and Pursuant to the Agreement, Crestline purchased 222,222,222 shares of the Company’s voting common stock, par value $0.001 per share (“common stock”), at a purchase price of $0.045 per share for $10.0 million. Also, effective as of April 24, 2020, in a separate transaction, Midwest sold 115,827,004 shares of common stock to various investors at $0.045 per share for $5.227 million. Under the Crestline agreement, the Company contributed $5.0 million to American Life and the remaining proceeds are to be used for general working capital and corporate purposes. Also effective April 24, 2020, American life entered into a Master Letter Agreement with Seneca Re and Crestline regarding a flow of annuity reinsurance and related asset management, whereby Crestline agreed to provide reinsure funding for a quota share percentage of 25% of the liabilities of American Life arising from its multi-year guaranteed annuities ("MYGA") and a quota share percentage of 40% for American Life’s fixed indexed annuity (“FIA”) products. This agreement expires on April 24, 2023. Management evaluates the Company as one reporting segment in the life insurance industry. The Company is primarily engaged in the underwriting and marketing of annuity products and life insurance through American Life and then reinsuring such products with third party reinsurers and, since April 24, 2020, with the Seneca Re entity. The Company’s historical product offerings consisted of a multi-benefit life insurance policy that combined cash value life insurance with a tax deferred annuity and a single premium term life product. These product offerings were underwritten, marketed, and managed as a group of similar products on an overall portfolio basis. American Life presently offers five products, two MYGAs, a FIA, and two bonus plans associated with the FIA product. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions from the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10‑Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the “Notes to Consolidated Financial Statements” included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2019 (“2019 Form 10‑K”), should be read in connection with the reading of these interim unaudited consolidated financial statements. Certain GAAP policies that significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2019 Form 10‑K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the six months ended June 30, 2020, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020. All intercompany accounts and transactions have been eliminated in consolidation and certain immaterial reclassifications have been made to the prior period results to conform to the current period’s presentation with no impact on results of operations or total stockholders’ equity. Investments All fixed maturities owned by the Company are considered available-for-sale and are included in the consolidated financial statements at their fair value as of the financial statement date. Bond premiums and discounts are amortized using the scientific-yield method over the term of the bonds. Realized gains and losses on securities sold during the year are determined using the specific identification method. Unrealized holding gains and losses, net of applicable income taxes, are included in accumulated other comprehensive income. Declines in the fair value of available-for-sale securities below their amortized cost are evaluated to assess whether any other-than-temporary impairment loss should be recorded. In determining if these losses are expected to be other-than-temporary, the Company considers severity of impairment, duration of impairment, forecasted recovery period, industry outlook, the financial condition of the issuer, issuer credit ratings, and the intent and ability of the Company to hold the investment until the recovery of the cost. The recognition of other-than-temporary impairment losses on debt securities is dependent on the facts and circumstances related to the specific security. If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security prior to recovery of the amortized cost, the difference between amortized cost and fair value is recognized in the statement of comprehensive income as an other-than-temporary impairment. If the Company does not expect to recover the amortized basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated. The Company recognizes the credit loss portion in the income statement and the noncredit loss portion in accumulated other comprehensive loss. The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected cash flows with the amortized cost basis of the debt security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed income security at the date of acquisition. Cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings, and estimates regarding timing and amount of recoveries associated with a default. The Company has analyzed the securities portfolio and determined that there was not an other-than-temporary impairment for the six months ended June 30, 2020. Investment income consists of interest, dividends, gains and losses from equity method investments, and real estate income, which are recognized on an accrual basis and amortization of premiums and discounts. Mortgage loans on real estate, held for investment Mortgage loans on real estate, held for investment are carried at unpaid principal balances. Interest income on mortgage loans on real estate, held for investment is recognized in net investment income at the contract interest rate when earned. A mortgage loan is considered to be impaired when 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 losses expected by management to be realized in connection with future dispositions or settlements 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. These evaluations are revised as conditions change and new information becomes available. No such valuation allowance was established as of June 30, 2020. Derivative Instruments Derivatives are used to hedge the risks experienced in our ongoing operations, such as equity, interest rate and cash flow risks, or for other risk management purposes, which primarily involve managing liability risks associated with our indexed annuity products and reinsurance agreements. Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, or other underlying notional amounts. Derivative assets and liabilities are carried at fair value on the consolidated balance sheets. To qualify for hedge accounting, at the inception of the hedging relationship, we would formally document our designation of the hedge as a cash flow or fair value hedge and our risk management objective and strategy for undertaking the hedging transaction. In this documentation, we would identify how the hedging instrument is expected to hedge the designated risks related to the hedged item, the method that would be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method which would be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. In the late 2019, the Company began investing in options to hedge our interest rate risks on our FIA product. Options typically do not qualify for hedge accounting; therefore, we chose not to use hedge accounting for our options that we currently have. We value our derivatives at fair market value with the offset being recorded on our income statement as a realized gain or (loss). Additionally, reinsurance agreements written on a funds withheld or modified coinsurance basis contain embedded derivatives on our fixed indexed annuity product. Gains or (losses) associated with the performance of assets maintained in the modified coinsurance deposit and funds withheld accounts are reflected as realized gains or (losses ) in the income statement. Other invested assets The Company purchases and sells equipment leases in its investment portfolio. As of June 30, 2020, the Company owned several leases. An impairment test, as of June 30, 2020, was completed on the only non-performing lease in the portfolio and it was determined that the underlying collateral value was substantially less than the remaining lease payments of $3.4 million. The Company established a valuation allowance on the asset of $776,973 and will continue to monitor the value the underlying collateral. The valuation allowance was recorded as a bad debt expense; however, this asset is owned by a third party reinsurer. Therefore, the valuation allowance was passed through as a receivable from the reinsurers, offsetting the valuation allowance. Preferred stock Preferred stock of a non-affiliated company was purchased for $500,000 during the third quarter of 2019. An impairment analysis of the preferred stock was performed as of June 30, 2020, due to a change in valuation of an invested asset held by the non-affiliated company. The investment asset had collateral supporting the investment that was less than the book value of the asset; therefore, the Company established a full valuation allowance of $500,000. This was recorded as a reduction of the asset on the balance sheet and a bad debt expense on the Consolidated Statements of Comprehensive (Loss) Income. Investment escrow The Company held in escrow as of December 31, 2019, cash used to settle a mortgage loan that closed in January 2020. As of June 30, 2020, the Company did not hold any cash related to investments in escrow. Notes receivable The Company held in notes receivable as of June 30, 2020, a note of $5,488,101 between American Life and an unconsolidated affiliate that was rated by a nationally recognized statistical rating organization (“NRSRO”). This note is being carried at the fair market value. Policy loans Policy loans are carried at unpaid principal balances. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. No valuation allowance is established for these policy loans as the amount of the loan is fully secured by the death benefit of the policy and cash surrender value. Cash and cash equivalents The Company considers all liquid investments with original maturities of three months or less when purchased to be cash equivalents. At June 30, 2020 and December 31, 2019, the Company had no cash equivalents. At June 30, 2020, the Company held approximately 400,000 in Pound Sterling (“GBP”) in two of our custody accounts. The USD equivalent held was approximately $500,000. As of June 30, 2020, the Company recorded unrealized losses of approximately $260,000 related to the change in the foreign currency exchange rate (“FX”) of the GBP cash of 400,000 recorded in other comprehensive income on the balance sheet. Deferred acquisition costs Deferred acquisition costs (“DAC”) consist of incremental direct costs, net of amounts ceded to third party reinsurers, that result directly from and are essential to the contract acquisition transaction and would not have been incurred by the Company had the contract acquisition not occurred. These costs are capitalized, to the extent recoverable, and amortized over the life of the premiums produced. The Company evaluates the types of acquisition costs it capitalizes. The Company capitalizes agent compensation and benefits and other expenses that are directly related to the successful acquisition of contracts. The Company also capitalizes expenses directly related to activities performed by the Company, such as underwriting, policy issuance, and processing fees incurred in connection with successful contract acquisitions. Recoverability of deferred acquisition costs is evaluated periodically by comparing the current estimate of the present value of expected pretax future profits to the unamortized asset balance. If this current estimate is less than the existing balance, the difference is charged to expense. The Company performs a recoverability analysis annually in the fourth quarter unless events occur which require an immediate review. The Company determined that no events occurred in the six months ended June 30, 2020 that suggest a review should be undertaken. Reinsurance As indicated in our 2019 Form 10-K, reinsurance is an integral part of our business plan. We expect to reinsure substantially all of our new insurance policies with a variety of reinsurers in exchange for upfront ceding commissions, expense reimbursements and administrative fees. Under these reinsurance agreements, we expect there will be a monthly or quarterly settlement of premiums, claims, surrenders, collateral, and other administration fees. We believe this will help preserve American Life’s capital while supporting its growth because American Life will have lower capital requirements when its business is reinsured due to lower overall financial exposure versus retaining the insurance policy business itself. See Note 9 below for further discussion of our reinsurance activities. There are two main categories of reinsurance transactions: 1) “indemnity,” where we cede a portion of our risk but retain the legal responsibility to our policyholders should our reinsurers not meet their financial obligations; and 2) “assumption,” where we transfer the risk and legal responsibilities to the reinsurers. The reinsurers are required to acquire the appropriate regulatory and policyholder approvals to convert indemnity policies to assumption policies. Our reinsurers may be domestic or foreign capital markets investors or traditional reinsurance companies seeking to assume U.S. insurance business. We plan to mitigate the credit risk relating to reinsurers generally by requiring other financial commitments from the reinsurers to secure the reinsured risks (such as posting substantial collateral). It should be noted that under indemnity reinsurance agreements American Life remains exposed to the credit risk of its reinsurers. If one or more reinsurers becomes insolvent or is otherwise unable or unwilling to pay claims under the terms of the applicable reinsurance agreement, American Life retains legal responsibility to pay policyholder claims, which, in such event would likely materially and adversely affect the capital and surplus of American Life. As indicated above under “Nature of Operations,” Midwest formed Seneca Re in early 2020. On April 15, 2020, Midwest entered into an operating agreement with Seneca Re. Seneca Re currently has one Protected Cell 2020-01 (“SRC1”). Some reinsurers are not and may not be “accredited” or qualified as reinsurers under Nebraska Law. In order to enter into reinsurance agreements with such reinsurers and to reduce potential credit risk, American Life holds a deposit or withholds funds from the reinsurer or require the reinsurer to maintain a trust that holds assets backing up the reinsurer’s obligation to pay claims on the business it assumes. The reinsurer may also appoint an investment manager for such funds, which is some cases may be our investment adviser subsidiary, 1505 Capital, to manage these assets pursuant to guidelines adopted by us that are consistent with state investment statutes and reinsurance regulations. American Life currently has treaties with four third party reinsurers and one related party reinsurer. Of the four third party reinsurers, only three have funds withheld or modified coinsurance provisions. In a modified coinsurance arrangement (“Modco”), the ceding entity retains the assets equal to the modified coinsurance reserves retained. In a funds withheld coinsurance agreement (“FW”), assets that would normally be paid over to a reinsurer are withheld by the ceding company to permit statutory credit for unauthorized reinsurance, to reduce the potential credit risk. Under those provisions with third party reinsurers, the assets backing the treaties are maintained by American Life as investments but the assets and total returns or losses on the investments are owned by the reinsurers. Under GAAP, this arrangement is considered an embedded derivative as discussed in Note 6 to our consolidated financial statements above. As a result of recent market volatility, assets carried as investments on American Life’s financial statements for the third party reinsurers contained unrealized losses of approximately $8.5 million as of June 30, 2020. The terms of the contracts with the third party reinsurers provide that unrealized losses on the portfolios accrue to the third party reinsurers. Accordingly, the unrealized losses on the assets held by American Life were offset by a gain in the embedded derivative of $8.5 million. We account for this unrealized loss pass-through by recording equivalent realized gains on our income statement and in amount recoverable from our third party reinsurers on our balance sheet. Property and equipment Property and equipment are stated at cost net of accumulated depreciation. Annual depreciation is primarily computed using straight-line methods for financial reporting and straight-line and accelerated methods for tax purposes. Furniture and equipment is depreciated over 3 to 7 years and computer software and equipment is generally depreciated over 3 years. Depreciation expense totaled $11,996 and $9,506 for the three months ended June 30, 2020 and 2019, respectively. Depreciation expense totaled $22,312 and $19,320 for the six months ended June 30, 2020 and 2019, respectively. Accumulated depreciation totaled $997,793 and $975,480 as of June 30, 2020 and December 31, 2019, respectively. Maintenance and repairs are expensed as incurred. Replacements and improvements which extend the useful life of the asset are capitalized. The net book value of assets sold or retired are removed from the accounts, and any resulting gain or loss is reflected in earnings. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount of an asset may not be recoverable and exceeds estimated future undiscounted cash flows of the asset. A recognized impairment loss reduces the carrying amount of the asset to its fair value. Management has determined that no such events occurred in the six months ended June 30, 2020 that would indicate the carrying amounts may not be recoverable. Benefit reserves The Company establishes liabilities for amounts payable under insurance policies, including traditional life insurance and annuities. Generally, amounts are payable over an extended period of time. Liabilities for future policy benefits of traditional life insurance have been computed by a net level premium method based upon estimates at the time of issue for investment yields, mortality, and withdrawals. These estimates include provisions for experience less favorable than initially expected. Mortality assumptions are based on industry experience expressed as a percentage of standard mortality tables. Policy claims Policy claims are based on reported claims plus estimated incurred but not reported claims developed from trends of historical data applied to current exposure. Deposit-type contracts Deposit-type contracts consist of amounts on deposit associated with deferred annuities, premium deposit funds and supplemental contracts without life contingencies. Deferred gain on coinsurance transactions American Life has entered into four reinsurance contracts where it has earned or is earning ceding commissions. These ceding commissions are recorded as a deferred liability and amortized over the life of the business ceded. American Life receives commission, administrative, and option allowances from reinsurance transactions that represent recovery of acquisition costs. These allowances first reduce the DAC associated with the reinsured blocks of business with the remainder being included in the deferred gain on coinsurance transactions that is also being amortized. Income taxes The Company is subject to income taxes in the U.S. federal and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state, or local tax examinations by tax authorities for the years before 2015. The Company is not currently under examination for any open years. The provision for income taxes is based on income as reported in the financial statements. The income tax provision is calculated under the asset and liability method. Deferred tax assets are recorded based on the differences between the financial statement and tax basis of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are investments, insurance reserves, and deferred acquisition costs. A deferred tax asset valuation allowance is established when there is uncertainty that such assets would be realized. The Company has no uncertain tax positions that it believes are more-likely-than not that the benefit will not to be realized. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in income tax expense. Revenue recognition and related expenses Amounts received as payment for annuities 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 administrative and contract-holder services and cost of insurance, 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. Revenues on traditional life insurance products consist of direct and assumed premiums reported as earned when due. 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. Acquisition costs are amortized over the expected life of the annuity contracts. Comprehensive income (loss) Comprehensive income (loss) is comprised of net (loss) income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses from marketable securities classified as available for sale and unrealized gains and losses from foreign currency transactions, net of applicable taxes. American Life has treaties with four third party reinsurers that have funds withheld and modified coinsurance provisions. Under those provisions, the assets backing the treaties are maintained by American Life as collateral but are owned by the third party reinsurers, thus, the total return on the asset portfolio belongs to the third party reinsurers. Under GAAP this is considered an embedded derivative as discussed in Note 6 below. As a result of recent market volatility, the investments carried by American Life for the third party reinsurers contained unrealized losses of approximately $8.5 million as of June 30, 2020. The terms of the contracts with the third party reinsurers provided that unrealized losses on the portfolios accrue to the third party reinsurers. We account for this loss pass through by booking equivalent embedded derivative realized gains in our Consolidated Statements of Comprehensive (Loss) Income. Accordingly, for the first half of 2020, such gains were $8.5 million. The remaining investments retained by American Life had unrealized gains of approximately $1,631,474 that included unrealized gains of $1,087,700 resulting from the consolidation of SRC1. Basic earnings per share in the first half of fiscal 2020 were $0.004 which included the aforementioned gain of $8.5 million. Basic loss per share in the first half of fiscal 2020 without the aforementioned gain was ($0.002). Common and preferred stock and earnings (loss) per share The par value per each Company share is $0.001 with 1,970,000,000 voting common shares authorized, 20,000,000 non-voting common shares authorized, and 10,000,000 preferred shares authorized. On June 18, 2019, Xenith exercised the right to convert its 1,500,000 Series C preferred stock and the $19,100,000 notes payable to voting common stock at the conversion rate of approximately $0.02 per common share. With the infusion of capital and the issuance of voting common stock in the Crestline transaction mentioned above under “Nature of Operations,” the Company had voting common shares issued and outstanding at June 30, 2020 and December 31, 2019, 1,361,557,779 and 1,023,408,553, respectively The Series C preferred shares were converted by Xenith to voting common shares on June 18, 2019 at a rate of approximately $0.02 per share for 72,854,474 voting common shares. The stated annual dividend rate on the Series C preferred shares was 8%. At the time of the conversion, Xenith forgave all previously accrued dividends from June 28, 2018 through the conversion date. (Loss) gain per basic share attributable to the Company’s common stockholders was computed based on the weighted average number of shares outstanding during each period. The weighted average number of shares outstanding during the three months ended June 30, 2020 and 2019 was 1,272,367,873 and 220,781,744, respectively. T he weighted average number of shares outstanding during the six months ended June 30, 2020 and 2019 were 1,147,888,213 and 122,374,461, respectively. (Loss) gain diluted share attributable to the Company’s common stockholders was computed based on the average shares outstanding and options granted under our Long-Term Incentive Plan (“LTIP”), as if all were vested and exercised. The weighted average number of diluted shares outstanding during the three months ended June 30, 2020 and 2019 was 1,273,314,893 and 221,728,764, respectively. The weighted average number of diluted shares outstanding during the six months ended June 30, 2020 and 2019 were 1,148,835,232 and 123,321,481 shares, respectively.

New Accounting Standards

New Accounting Standards	6 Months Ended
	Jun. 30, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Standards	Note 2. New Accounting Standards Adoption of New Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018‑15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350‑40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computer Arrangement That is a Service Contract . Under ASU No. 2018‑15, the amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. In order to determine which costs can be capitalized, we are to follow the guidance in Subtopic 350‑40. Cost for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and the post-implementation stage are expensed as the activities are performed. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Management has reviewed and evaluated the impact of this pending new standard and will implement this starting in fiscal year 2020. We reviewed our software enhancements as of June 30, 2020 to determine the impact of implementing ASU No. 2018‑12 and determined that none of those enhancements should be capitalized as they did not meet the requirements of this ASU. In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016‑02, Leases (Topic 842) . The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The lease liability is measured at the present value of the lease payments over the lease term with the right-of-use asset measured as the lease liability amount and including adjustments for certain lease incentives and initial direct costs. Lease expense recognition will continue to differentiate between finance leases and operating leases resulting in a similar pattern of lease expense recognition as under current GAAP. This ASU permitted a modified retrospective adoption approach that includes a number of optional practical expedients that entities may elect upon adoption. On January 1, 2019, the Company adopted this standard using a modified retrospective adoption approach. The adoption resulted in the Company identifying three operating leases and one financial lease which were subject to this guidance. The impact to the Consolidated Statements of Comprehensive Income (Loss) was minimal. We identified four leases with net assets of $409,165 and $473,04 5 , and lease liabilities of $460,791 and $526,108 for the six months ended June 30, 2020 and the year ended December 31, 2019, respectively. Future adoption of New Accounting Standards In January 2020, the FASB issued ASU No. 2020-1, Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) -Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The amendments in this Update clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815, which could change how an entity accounts for an equity security under the measurement alternative or a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. We are unable to determine the impact at this time of ASU No. 2020-1 as we are still in the process of evaluating the standard. In February 2020, the FASB issued ASU No. 2020-02, Financials Services Instruments-Credit Losses (Topic 326), and Leases (topic 842). The amendments in this Update adds language to Accounting Bulletin N. 119. In November 2019, the FASB issued ASU No. 2019-10, Financials Services Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (topic 842). The Board developed a philosophy to extend and simplify how effective dates are staggered between larger public companies and all other entities. For business entities that meet the definition of a smaller reporting company (“SRC”), the amendments in ASU 2018-12 are effective for fiscal years beginning after December 15, 2021. In August 2018, the FASB issued ASU No. 2018‑12, Financial Services-Insurance (Topic 944). This update 1) modifies the timeliness of recognizing changes in the liability for future policy benefits and modifies the rate used to discount future cash flows, 2) simplifies the accounting for certain market-based options or guarantees associated with deposit contracts, 3) simplifies the amortization of deferred acquisition costs, and 4) addresses the effectiveness of the required disclosures. This ASU becomes effective for fiscal years, and interim periods within those years, beginning after December 15, 2023. We anticipate that the adoption of ASU 2018‑12 will have a broad impact on our consolidated financial statements and related disclosures and will require us to make changes to certain of our processes, systems, and controls. We are unable to determine the impact at this time of ASU No. 2018‑12 as we are still in the process of evaluating the standard. In March 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Topic 326, Financial Instruments—Credit Losses. The scope of this amendment is to clarify the interaction of ASC 842 (Leases) and ASC 326 (credit losses). In November 2018, the FASB issued ASU No. 2018‑10, Codification Improvements to Topic 326, Financial Instruments—Credit Losses. The amendments in this update include items brought to the Board’s attention by stakeholders to clarify the guidance in the amendments in ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326) which was issued in June 2016. These updated amendments clarify that receivables arising from operating leases are not within the scope of Subtopic 326‑20. Under ASU 2016‑13, this replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to perform credit loss estimates. This update changes the methodology from an incurred loss to an expected credit loss. An allowance for the expected credit loss will be set up and the net income will be impacted. The credit losses will be evaluated in the current period and an adjustment to the allowance can be made. The new standard becomes effective after December 15, 2022. We are currently evaluating the impact of our pending adoption of the new standard on our consolidated financial statements.

Assets and Liabilities Held for

Assets and Liabilities Held for Sale	6 Months Ended
	Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Assets and Liabilities Held for Sale	Note 3. Assets and Liabilities Held for Sale On November 30, 2018, American Life entered into an Assumption and Indemnity Reinsurance Agreement (“Reinsurance Agreement”) with Unified Life Insurance Company (“Unified”), a Texas domiciled stock insurance company. The Reinsurance Agreement provides that American Life ceded and Unified agreed to reinsure, on an indemnity reinsurance basis, 100% of the liabilities and obligations under substantially all of American Life’s life, annuity, and health policies (“Policies”). The Agreement closed on December 10, 2018, as previously disclosed in Midwest’s Current Report on Form 8‑K filed with the Securities and Exchange Commission (the “SEC”) on December 12, 2018. The effective date of the Agreement was July 1, 2018. After the closing of the Reinsurance Agreement, Unified began the process of preparing and delivering certificates of assumption and other materials to policyholders of American Life in order to effect an assumption of the Policies by Unified such that all of American Life’s rights and obligations under the policies arising on and after July 1, 2018 would be completely assumed by Unified without further indemnification or other obligations, except for liabilities, claims and obligations incurred before July 1, 2018. Unified is obligated to indemnify American Life against all liabilities and claims and all of its policy obligations from and after July 1, 2018. As of June 30, 2020, 89% of the indemnity policies were converted to assumptive policies thereby releasing American Life from its legal obligations related to those policies. The consideration paid by Unified to American Life under the Reinsurance Agreement upon closing was $3,500,000 (“Ceding Commission”), subject to minor settlement adjustments. At closing, American Life transferred the Statutory Reserves and Liabilities, as defined in the Reinsurance Agreement, directly related to the policies, to Unified. The Ceding Commission is being amortized on a straight-line basis over the life of the policies. When the policies are converted to assumptive, meaning American Life has no liability exposure for those policies, the remaining Ceding Commission will be recognized in our income statement. Our balance sheet was required to be restated for all periods shown with the assets and liabilities which were ceded by American Life to Unified into separate line items as assets and liabilities held for sale. The table below summarizes the assets and liabilities that are included in discontinued operations as of June 30, 2020 and as of December 31, 2019: As of June 30, As of December 31, 2020 2019 Carrying amounts of major classes of assets included as part of discontinued operations: Policy loans $ 42,129 $ 50,387 Reinsurance recoverables 1,077,317 3,569,849 Premiums receivable 22,933 33,512 Total assets held for sale in the Consolidated Balance Sheet $ 1,142,379 $ 3,653,748 Carrying amounts of major classes of liabilities included as part of discontinued operations: Benefit reserves $ 620,941 $ 1,403,953 Policy claims 24,231 28,203 Deposit-type contracts 486,486 2,209,195 Advance premiums 2,273 2,226 Accounts payable and accrued expenses 7,847 3,290 Total liabilities held for sale in the Consolidated Balance Sheets $ 1,141,778 $ 3,646,867

Non-controlling Interest

Non-controlling Interest	6 Months Ended
	Jun. 30, 2020
Noncontrolling Interest [Abstract]
Non-controlling Interest	Note 4. Non-controlling Interest On April 2, 2019, Midwest entered into a contract to acquire a 51% ownership in 1505 Capital LLC (“1505 Capital”), a Delaware limited liability company. 1505 Capital was organized to provide financial and investment advisory and management services to clients and any related investment, trading, or financial activities. Midwest purchased for $1 its 51% ownership and o n June 15, 2020, we purchased the remaining 49% ownership in 1505 Capital for $500,000. Midwest used the equity method of accounting for the purchase of the controlling interest eliminating the non-controlling interest and recording the difference to additional paid in capital.

Investments

Investments	6 Months Ended
	Jun. 30, 2020
Marketable Securities [Abstract]
Investments	Note 5. Investments The cost or amortized cost and estimated fair value of investments as of June 30, 2020 and December 31, 2019 are as follows: Cost or Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value June 30, 2020: Fixed maturities: U.S. government obligations $ 1,730,793 $ 105,936 $ — $ 1,836,729 Mortgage-backed securities 721,970 6,445 6,646 721,769 Asset-backed securities 174,795,977 1,459,587 8,347,320 167,908,244 States and political subdivisions -- general obligations 238,408 11,671 — 250,079 States and political subdivisions -- special revenue 2,924,809 540,547 — 3,465,356 Trust preferred 2,218,142 — 93,664 2,124,478 Corporate 24,320,752 626,580 1,143,700 23,803,632 Total fixed maturities $ 206,950,851 $ 2,750,766 $ 9,591,330 $ 200,110,287 Mortgage loans on real estate, held for investment 51,171,943 — — 51,171,943 Derivatives 3,134,820 588,201 494,919 3,228,102 Other invested assets 3,090,964 — — 3,090,964 Notes receivable 5,488,101 — — 5,488,101 Policy loans 141,172 — — 141,172 $ 269,977,851 $ 3,338,967 $ 10,086,249 $ 263,230,569 December 31, 2019: Fixed maturities: U.S. government obligations 2,091,710 7,073 17,559 2,081,224 Mortgage-backed securities 819,678 — 21,070 798,608 Asset-backed securities 95,006,241 646,335 404,752 95,247,824 States and political subdivisions -- general obligations 240,494 8,788 — 249,282 States and political subdivisions -- special revenue 25,112 179 — 25,291 Corporate 18,493,077 501,022 154,467 18,839,632 Total fixed maturities 116,676,312 1,163,397 597,848 117,241,861 Mortgage loans on real estate, held for investment 13,810,041 — — 13,810,041 Derivatives 490,831 87,684 3,221 575,294 Investment escrow 3,899,986 — — 3,899,986 Other invested assets 2,468,947 — — 2,468,947 Preferred stock 500,000 — — 500,000 Policy loans 106,014 — — 106,014 Total fixed maturities $ 137,952,131 $ 1,251,081 $ 601,069 $ 138,602,143 The Company has two securities that individually exceed 10% of the total of the state and political subdivisions categories as of June 30, 2020. The amortized cost, fair value, credit ratings, and description of each security is as follows: Amortized Estimated Cost Fair Value Credit Rating June 30, 2020: Fixed maturities: States and political subdivisions -- general obligations Bellingham, Washington $ 107,128 $ 118,028 AA+ Longview, Washington Refunding 131,280 132,051 Aa3 Total $ 238,408 $ 250,079 The following table summarizes, for all securities in an unrealized loss position at June 30, 2020 and December 31, 2019, the estimated fair value, pre-tax gross unrealized loss, and number of securities by consecutive months they have been in an unrealized loss position. June 30, 2020 December 31, 2019 Gross Number Gross Number Estimated Unrealized of Estimated Unrealized of Fair Value Loss Securities (1) Fair Value Loss Securities (1) Fixed Maturities: Less than 12 months: U.S. government obligations $ — $ — — $ 1,518,772 $ 14,935 9 Asset-backed securities 115,541,627 7,989,266 66 39,114,732 404,752 26 Mortgage-back securities 72,535 392 3 160,010 4,844 4 Trust preferred 2,124,478 93,664 1 — — — Corporate 9,025,918 892,092 11 2,800,815 13,618 4 Greater than 12 months: U.S. government obligations — — — 353,834 2,624 2 Asset-backed securities 12,329,718 358,054 6 — — — Mortgage-back securities 234,404 6,254 5 638,598 16,226 14 Corporate 645,564 251,608 4 2,201,658 140,849 13 Total fixed maturities $ 139,974,244 $ 9,591,330 96 $ 46,788,419 $ 597,848 72 (1) We may reflect a security in more than one aging category based on various purchase dates. Due to significant price decreases in the capital markets, our securities positions resulted in a substantial unrealized loss at June 30, 2020. We performed an analysis of the unrealized losses and determined no valuation impairment on our fixed maturities should be recorded because the investments had been in such a position for less than six months and approximately 80% of them had durations of 10 to 20 years. Management believes that the Company will fully recover its cost basis in these securities and management does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, such securities until they recover or mature. We will continue to monitor the world and U.S. economy and the capital markets throughout the remainder of 2020 to determine if any impairment is required. The majority of the unrealized losses are related to our collateralized loan obligations (“CLOs”). CLOs are typically illiquid and are intended to be held to maturity. Thus, risk of loss is minimal. The Company has monitored the underlying unrealized losses and believes they pose little chance of loss in the long-term due to the quality of the underlying credits. The Company purchases and sells equipment leases in its investment portfolio. As of June 30, 2020, the Company owned several leases. An impairment test, as of June 30, 2020, was completed on the only non-performing lease in the portfolio and it was determined that the underlying collateral value was substantially less than the outstanding remaining lease payments of $3.4 million. The Company established a valuation allowance on the asset of $776,973 and will continue to monitor the value the underlying collateral. The valuation allowance was recorded as a bad debt expense; however, this asset is owned by a third party reinsurer. Therefore, the valuation allowance was passed through as a receivable from the reinsurers, offsetting the valuation allowance. American Life has treaties with four reinsurance companies, three third party and one related party, that have funds withheld and modified coinsurance provisions. In a modified coinsurance arrangement (“Modco”), the ceding entity retains the assets equal to the modified coinsurance reserves retained. In a funds withheld coinsurance agreement (“FW”), assets that would normally be paid over to a reinsurer are withheld by the ceding company to permit statutory credit for unauthorized reinsurance, to reduce the potential credit risk. Under these provisions with third party reinsurers, the assets backing the treaties are maintained by American Life as collateral but the assets and the total return on the asset portfolios are owned by the third party reinsurers. The mortgage loans and CLOs primarily make up that asset portfolio. Under GAAP, these assets are considered embedded derivatives. The impact of the embedded derivatives is shown below in Note 6 Derivative investments. The amortized cost and estimated fair value of fixed maturities at June 30, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. No securities due in the next year are in an unrealized loss position, further supporting management’s decision not to recognize an other-than-temporary impairment. Amortized Estimated Cost Fair Value Due in one year or less $ 201,929 $ 202,962 Due after one year through five years 10,172,450 10,355,681 Due after five years through ten years 52,847,487 52,184,902 Due after ten years through twenty years 129,141,495 122,598,167 Due after twenty years 14,587,490 14,768,575 $ 206,950,851 $ 200,110,287 The Company is required to hold assets on deposit for the benefit of policyholders in accordance with statutory rules and regulations. At June 30, 2020 and December 31, 2019, these required deposits had a total amortized cost of $3,559,321 and $3 ,611,292 and fair values of $3,739,690 and $3,612,844, respectively. The following table presents a reconciliation of the beginning balance for the mortgage loan investments measured at fair value on a recurring basis using Level 3 inputs at June 30, 2020 and December 31, 2019: Carrying Value Interest Income Interest Income June 30, 2020: Industrial $ 500,000 $ 2,871 $ 16,340 Commercial mortgage loan - multi-family 48,612,870 890,188 1,570,056 Other 2,059,073 205,297 98,721 Total mortgage loans $ 51,171,943 $ 1,098,356 $ 1,685,117 December 31, 2019: Industrial $ 500,000 $ — $ 15,889 Commercial mortgage loan - multi-family 11,320,924 116,860 329,684 Other 1,989,117 195,168 7,386 Total mortgage loans $ 13,810,041 $ 312,028 $ 352,959 American Life has treaties with three third party reinsurers that have funds withheld and modified coinsurance provisions. Under those provisions, the mortgage loans backing the treaties are maintained by American Life as collateral but the assets and total returns or losses on the asset portfolios belong to the third party reinsurers; therefore, the Company derives minimal investment income from these mortgages. The components of net investment income for the three and six months ended June 30, 2020 and 2019 are as follows: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Fixed maturities $ (128,209) $ 435,427 $ 1,041,929 $ 631,118 Mortgage loans — 9,656 — 9,656 Other — 6,832 — 8,076 Gross investment income (128,209) 451,915 1,041,929 648,850 Less: refund received on investment expenses (investment expense) (269,633) (3,900) (198,793) (9,840) Investment income, net of expenses $ (397,842) $ 448,015 $ 843,136 $ 639,010 Proceeds for the three months ended June 30, 2020 and 2019 from sales of investments classified as available-for-sale were $14,556,095 and $2,040,640, respectively. Gross gains of $1,038,822 and $7,382 and gross losses of $6,575 and $7,127 were realized on those sales during the three months ended June 30, 2020 and 2019, respectively. Proceeds for the six months ended June 30, 2020 and 2019 from sales of investments classified as available-for-sale were $18,409,038 and $2,406,165, respectively. Gross gains of $1,188,370 and $9,006 and gross losses of $31,407 and $13,148 were realized on those sales during the six months ended June 30, 2019 and 2018, respectively. The proceeds included those assets associated with the third party reinsurers. The gains and losses were related only to the assets retained by American Life.

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Note 6. Derivative Instruments The Company entered into derivative instruments to hedge fixed indexed annuity products that guarantee the return of principal to the policyholders and credit interest based on a percentage of the gain in a specified market index. To hedge against adverse changes in equity indices, the Company entered into contracts to buy equity indexed options. However, these derivatives are not designated as hedge under GAAP. As indicated in Notes 1, 5 and 9, American Life has treaties with four reinsurance companies, three third party and one related party, that have funds withheld and modified coinsurance provisions. Under these provisions with third party reinsurers, the assets backing the treaties are maintained by American Life as collateral and are carried on the balance sheet for American Life, but the assets are owned by the third party reinsurer; thus, the total return on the asset portfolio belongs to the third party reinsurers. Under GAAP this is considered an embedded derivative but is not designated as a hedge. The following is a summary of the asset derivatives not designated as hedges and embedded derivatives in our FIA product as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Location in the Derivatives Not Designated Consolidated Statement Notional Number of Estimated Notional Number of Estimated as Hedging Instruments of Balance Sheets Amount Contracts Fair Value Amount Contracts Fair Value Equity-indexed options Derivatives $ 86,093,121 108 $ 3,228,102 $ 9,698,863 24 $ 575,294 Equity-indexed embedded derivative Deposit-type contracts 107,296,291 724 3,038,675 10,720,324 108 576,634 Due to significant price decreases in the capital markets, our securities positions resulted in a substantial unrealized loss at June 30, 2020, reported in accumulated other comprehensive loss on the balance sheet. The embedded derivative related to the asset portfolio belonging to the third party reinsurers offset these unrealized losses by recording a realized gain in other comprehensive income. The following table summarizes the impact of those embedded derivatives related to the funds withheld provision where the total return on the asset portfolio belongs to the third party reinsurers: June 30, 2020 Book Value of Market Value of Total Return Portfolio Assets Assets Swap Value Ironbound $ 99,749,714 $ 93,088,880 $ 6,660,834 SDA 21,116,007 20,006,611 1,109,396 US Alliance 31,973,893 31,272,086 701,807 Total $ 152,839,614 $ 144,367,577 $ 8,472,037 The total return swap value was recorded as an increase in our amounts recoverable from reinsurers of $8,472,037 on our balance sheet and a realized gain of $8,472,037 on our income statement.

Fair Values of Financial Instru

Fair Values of Financial Instruments	6 Months Ended
	Jun. 30, 2020
Investments, All Other Investments [Abstract]
Fair Values of Financial Instruments	Note 7. Fair Values of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. We use valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, accounting standards establish 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: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. · Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. · Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the valuation inputs, or their ability to be observed, may result in a reclassification for certain financial assets or liabilities. Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in/out of the Level 3 category as of the beginning of the period in which the reclassifications occur. A description of the valuation methodologies used for assets measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Level 1 measurements Cash: The carrying value of cash and cash equivalents and short-term investments approximate the fair value because of the short maturity of the instruments. Level 2 measurements Fixed maturities: Fixed maturities are recorded at fair value on a recurring basis utilizing a third-party pricing source. The valuations are reviewed and validated quarterly through random testing by comparisons to separate pricing models or other third-party pricing services. For the period ended June 30, 2020, there were no material changes to the valuation methods or assumptions used to determine fair values, and no broker or third-party prices were changed from the values received. Derivatives: Derivatives are reported at fair market value utilizing a third-party pricing source. Investment escrow: The Company held in escrow as of December 31, 2019, cash that was used to settle a mortgage loan that did not close until January 2020. Notes receivable: The Company held in notes receivable as of June 30, 2020, a note of $5,488,101 between American Life and an unconsolidated affiliate that was rated by a NRSRO. This note is being carried at the fair market value. Embedded derivative for equity-indexed contracts: The Company has embedded derivatives in our policyholder contracts. These embedded derivatives are being carried at the fair market value as of June 30, 2020. Level 3 measurements Mortgage loans on real estate, held for investment: Mortgage loans are carried at their unpaid principal value as that is considered the fair market values for these loans. Other invested assets: The Company purchases and sells equipment leases in its investment portfolio. As of June 30, 2020, the Company owned several leases. An impairment test, as of June 30, 2020, was completed on the only non-performing lease in the portfolio and it was determined that the underlying collateral value was substantially less than the outstanding remaining lease payments of $3.4 million. The Company established a valuation allowance on the asset of $776,973 and will continue to monitor the value the underlying collateral. The valuation allowance was recorded as a bad debt expense; however, this asset is owned by a third party reinsurer. Therefore, the valuation allowance was passed through as a receivable from the reinsurers, offsetting the valuation allowance. Preferred stock: Preferred stock of a non-affiliated company was purchased for $500,000 during the third quarter of 2019. An impairment analysis of the preferred stock was performed as of June 30, 2020, due to a change in valuation of an invested asset held by the non-affiliated company. The investment asset had collateral supporting the investment that was less than the book value of the asset; therefore, the Company established a full valuation allowance of $500,000. This was recorded as a reduction of the asset on the balance sheet and a bad debt expense on the Consolidates Statements of Comprehensive (Loss) Income. Policy loans: Policy loans are stated at unpaid principal balances. As these loans are fully collateralized by the cash surrender value of the underlying insurance policies, the carrying value of the policy loans approximates their fair value. Deposit-type contracts: The fair value for direct and assumed liabilities under deposit-type insurance contracts (accumulation annuities) is calculated using a discounted cash flow approach. Cash flows are projected using actuarial assumptions and discounted to the valuation date using risk-free rates adjusted for credit risk and nonperformance risk of the liabilities. The fair values for insurance contracts other than deposit-type contracts are not required to be disclosed. The following table presents the Company’s fair value hierarchy for those financial instruments measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019. Significant Quoted Other Significant In Active Observable Unobservable Estimated Markets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value June 30, 2020 Financial assets Fixed maturities: U.S. government obligations $ — $ 1,836,729 $ — $ 1,836,729 Mortgage-backed securities — 721,769 — 721,769 Asset-backed securities — 167,908,244 — 167,908,244 States and political subdivisions — general obligations — 250,079 — 250,079 States and political subdivisions — special revenue — 3,465,356 — 3,465,356 Trust preferred — 2,124,478 — 2,124,478 Corporate — 23,803,632 — 23,803,632 Total fixed maturities — 200,110,287 — 200,110,287 Mortgage loans on real estate, held for investment — — 51,171,943 51,171,943 Derivatives — 3,228,102 — 3,228,102 Other invested assets — — 3,090,964 3,090,964 Notes receivable — 5,488,101 — 5,488,101 Policy loans — — 141,172 141,172 Total Investments $ — $ 208,826,490 $ 54,404,079 $ 263,230,569 Financial liabilities Embedded derivative for equity-indexed contracts $ — $ 3,038,675 $ — 3,038,675 December 31, 2019 Fixed maturities: — U.S. government obligations — 2,081,224 — 2,081,224 Mortgage-backed securities — 798,608 — 798,608 Asset-backed securities — 95,247,824 — 95,247,824 States and political subdivisions — general obligations — 249,282 — 249,282 States and political subdivisions — special revenue — 25,291 — 25,291 Corporate — 18,839,632 — 18,839,632 Total fixed maturities — 117,241,861 — 117,241,861 Mortgage loans on real estate, held for investment — — 13,810,041 13,810,041 Derivatives — 575,294 — 575,294 Investment escrow — 3,899,986 — 3,899,986 Other invested assets — — 2,468,947 2,468,947 Preferred stock — — 500,000 500,000 Policy loans — — 106,014 Total Investments $ — $ 121,717,141 $ 16,885,002 $ 138,496,129 Financial liabilities Embedded derivative for equity-indexed contracts $ — $ 576,634 $ — 576,634 There were no transfers of financial instruments between any levels during the six months ended June 30, 2020 or during the year ended December 31, 2019. Accounting standards require disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring basis are discussed above. There were no financial assets or financial liabilities measured at fair value on a non-recurring basis. The following disclosure contains the carrying values, estimated fair values and their corresponding placement in the fair value hierarchy for financial assets and financial liabilities as of June 30, 2020 and December 31, 2019, respectively: June 30, 2020 Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Unobservable Carrying and Liabilities Inputs Inputs Fair Amount (Level 1) (Level 2) (Level 3) Value Assets: Policy loans $ 141,172 $ — $ — $ 141,172 $ 141,172 Cash 75,041,902 75,041,902 — — 75,041,902 Liabilities: Policyholder deposits (Deposit-type contracts) 321,830,976 — — 321,830,976 321,830,976 December 31, 2019 Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Unobservable Carrying and Liabilities Inputs Inputs Fair Amount (Level 1) (Level 2) (Level 3) Value Assets: Policy loans $ 106,014 $ — $ — $ 106,014 $ 106,014 Cash 43,716,205 43,716,205 — — 43,716,205 Liabilities: Policyholder deposits (Deposit-type contracts) 171,168,785 — — 171,168,785 171,168,785 The following tables present a reconciliation of the beginning balance for all investments measured at fair value on a recurring basis using level three inputs during the six months ended June 30, 2020. Beginning Ending Balance Balance As of Valuation As of December 31, 2019 Additions Sales Allowance June 30, 2020 Assets Policy loans $ 106,014 $ 35,158 $ — $ — $ 141,172 Mortgage loans on real estate, held for investment 13,810,041 39,431,852 2,069,950 — 51,171,943 Other invested assets 2,468,947 7,011,102 5,612,112 (776,973) 3,090,964 Preferred stock 500,000 — — (500,000) — Total Investments $ 16,885,002 $ 46,478,112 $ 7,682,062 $ (1,276,973) $ 54,404,079

Income Tax Matters

Income Tax Matters	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Tax Matters	Note 8. Income Tax Matters Significant components of the Company’s deferred tax assets and liabilities as of June 30, 2020 and December 31, 2019 are as follows: June 30, 2020 December 31, 2019 Deferred tax assets: Loss carryforwards $ 781,003 $ 436,777 Capitalized costs 195,763 221,918 Stock option granted 9,821 4,566 Unrealized losses on investments 1,679,207 — Policy acquisition costs 3,686,674 1,468,030 Charitable contribution carryforward 1,230 1,020 Property and equipment 23,056 15,508 Benefit reserves 435,780 848,643 Total deferred tax assets 6,812,534 2,996,462 Less valuation allowance (4,789,646) (2,618,741) Total deferred tax assets, net of valuation allowance 2,022,888 377,721 Deferred tax liabilities: Unrealized losses on investments 1,759,153 116,088 Due premiums 78,242 81,789 Intangible assets 147,000 147,000 Policy loans 38,493 32,844 Property and equipment — — Total deferred tax liabilities 2,022,888 377,721 Net deferred tax assets $ — $ — At June 30, 2020 and December 31, 2019, the Company recorded a valuation allowance of $4,789,646 and $2,618,741, respectively, on the deferred tax assets to reduce the total to an amount that management believes will ultimately be realized. Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carryforwards are expected to be available to reduce taxable income. There was income tax expense of $479,513 and $887,429 for the three and six months ended June 30, 2020 and no income tax expense for the three and six months ended June 30, 2019. This differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% to pretax income, as a result of the following: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Computed expected income tax benefit $ (3,372,144) $ (174,689) $ 1,238,695 $ (488,643) Increase (reduction) in income taxes resulting from: Meals, entertainment and political contributions 319 3,053 2,930 5,636 Change in valuation allowance 4,169,372 32,209 21,682 266,607 COD Interest — 177,563 — 177,563 Other (318,034) (38,136) (375,878) 38,837 Subtotal of increases 3,851,657 174,689 (351,266) 488,643 Tax expense (benefit) $ 479,513 $ — $ 887,429 $ — Section 382 of the Internal Revenue Code limits the utilization of U.S. net operating loss (“NOL”) carryforwards following a change of control, which occurred on June 28, 2018. As of June 30, 2020, the deferred tax assets included the expected tax benefit attributable to federal NOLs of $2,741,658. The federal NOLs generated prior to June 28, 2018 which are subject to Section 382 limitation can be carried forward. If not utilized, the NOLs of $890,636 prior to 2017 will expire through the year of 2032, and the NOLs generated from June 28, 2018 to June 30, 2020 do not expire and will carry forward indefinitely, but their utilization in any carry forward year is limited to 80% of taxable income in that year. Loss carry forwards for tax purposes as of June 30, 2020, have expiration dates that range from 2024 through 2039.

Reinsurance

Reinsurance	6 Months Ended
	Jun. 30, 2020
Reinsurance Disclosures [Abstract]
Reinsurance	Note 9. Reinsurance A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of June 30, 2020 and December 31, 2019 and for the three and six months ended June 30, 2020 and 2019 is as follows: June 30, 2020 December 31, 2019 Balance sheets: Benefit and claim reserves ceded $ 43,355,941 $ 30,579,524 Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Statements of comprehensive (loss) income: Premiums ceded $ 221,435 $ 249,200 $ 453,108 $ 522,301 Benefits ceded 15,792 38,326 47,078 116,029 Commissions ceded 2,613 3,666 5,721 6,580 The following table provides a summary of the significant reinsurance balances recoverable on paid and unpaid policy claims by third party reinsurers except for a reinsurance with Unified as it was accounted for as discontinued operations: Recoverable on Total Amount Recoverable Recoverable Benefit Ceded Recoverable AM Best on Paid on Unpaid Reserves/Deposit- Due from Reinsurer Rating Losses Losses type Contracts Premiums Reinsurer Ironbound Reinsurance Company Limited NR $ — $ — $ 7,323,291 $ — $ 7,323,291 Optimum Re Insurance Company A — — 518,692 — 518,692 Sagicor Life Insurance Company A- — 210,295 11,224,669 277,015 11,157,949 SDA Annuity & Life Re NR — — 3,995,718 — 3,995,718 US Alliance Life and Security Company NR — — 20,418,664 58,373 20,360,291 $ — $ 210,295 $ 43,481,034 $ 335,388 $ 43,355,941 Due to the volatility of the markets, certain assets that were carried on our balance sheet have resulted in approximately $6.8 million of unrealized losses. American Life has treaties with three third party reinsurers that have funds withheld and modified coinsurance provisions. In a modified coinsurance arrangement (“Modco”), the ceding entity retains the assets equal to the modified coinsurance reserves retained. In a funds withheld coinsurance agreement (“FW”), assets that would normally be paid over to a reinsurer are withheld by the ceding company to permit statutory credit for unauthorized reinsurance, to reduce the potential credit risk. Under those provisions, the assets backing the treaties are maintained by American Life as collateral but the assets and total returns or losses on the asset portfolios belong to the third party reinsurers. Under GAAP this arrangement is considered an embedded derivative as discussed in Note 6. As a result of the market volatility, the assets had unrealized losses of approximately $8.5 million as of June 30, 2020. The terms of the contracts with the third party reinsurers provide that unrealized losses on the portfolios accrue to the third party reinsurers. Accordingly, the unrealized losses on the assets held by American Life were offset by a gain in the embedded derivative of $8.5 million. We account for this loss pass through by recording equivalent realized gains on our income statement. The unrealized losses pertaining to third party reinsurers were offset by unrealized gains of $1.7 million on assets retained by American Life. Effective July 25, 2019, American Life entered into a Funds Withheld Coinsurance and Modified Coinsurance Agreement (“FW/Modco Ironbound Agreement”) with Ironbound Reinsurance Company Limited, an unaffiliated reinsurance company organized under the laws of Barbados (“Ironbound”). Under the FW/Modco Ironbound Agreement, American Life ceded to Ironbound, on a funds withheld coinsurance and modified coinsurance basis, an initial 95% quota share of certain liabilities with respect to its MYGA business. Starting on March 1, 2020, the quota share dropped to 30% and then again on March 11, 2020 the quota share dropped to 0%. American Life has established two accounts to hold the assets for the FW/Modco Ironbound Agreement, a Funds Withheld Account and a Modco Deposit Account. In addition, a trust account was established on June 30, 2019 among American Life, Ironbound and Wells Fargo Bank, National Association for the sole benefit of American Life to fund the Funds Withheld Account and the Modco Deposit Account for any shortage in required reserves. The initial settlement included net premium income of $45,005,536 (gross premiums of $46,568,321 minus gross commissions paid of $1,562,786) and net statutory reserves of $47,271,267. The initial settlement for the Funds Withheld Account was $24,928,934 and for the Modco Deposit Account was $16,619,289 and the reserves required was $26,944,622 and $17,963,081, respectively. The amount owed by Ironbound to the Funds Withheld Account and the Modco Deposit Account from the trust account was $2,015,688 and $1,343,792, respectively which was funded at the closing of the Ironbound transaction. Effective November 7, 2019, American Life entered into a Funds Withheld Coinsurance and Modified Coinsurance Agreement (“FW/Modco SDA Agreement”) with SDA Annuity & Life Re (“SDA”), a Cayman Islands-domiciled reinsurance company. Under the FW/Modco SDA Agreement, American Life cedes to SDA, on a funds withheld coinsurance and modified coinsurance basis, 5% quota share of certain liabilities with respect to its multi-year guaranteed annuity MYGA business and an initial 95% quota share of certain liabilities with respect to its fixed indexed annuity FIA through December 31, 2019 and thirty 30% through June 30, 2020. American Life has established two accounts to hold the assets for the FW/Modco Agreement, a Funds Withheld Account and a Modco Deposit Account. In addition, a trust account was established on November 7, 2019 among American Life, SDA and Wells Fargo Bank, National Association for the sole benefit of American Life to fund the SDA Funds Withheld Account and the SDA Modco deposit account for any shortage in required reserves. The initial settlement included net premium income of $3,970,509 and net statutory reserves of $3,986,411. The initial settlement for the Funds Withheld Account was $2,256,802 and for the Modco Deposit Account was $1,504,535 and the reserves required was $2,391,847 and $1,594,564, respectively. The amount owed to the Funds Withheld Account and the Modco Deposit Account from the trust account was $135,044 and $90,029, respectively which was funded at the closing of the SDA transaction. Effective April 15, 2020, American Life entered into a Funds Withheld and Funds Paid Coinsurance Agreement (“US Alliance Agreement”) between American Life and US Alliance Life and Security Company, a Kansas reinsurance company (“US Alliance”). Under the US Alliance Agreement, American Life will cede to US Alliance, on a funds withheld and funds paid coinsurance basis, an initial 49% quota share of certain liabilities with respect to American Life’s FIA business effective January 1, 2020 through March 31, 2020. Effective from March 1, 2020 through March 10, 2020, American Life will cede a 45.5% quota share of certain liabilities with respect to its MYGA business to US Alliance. Effective March 11, 2020 through March 31, 2020, on a funds withheld and funds paid coinsurance basis, the quota share will increase to 66.5% of certain liabilities with respect to its MYGA business. Effective April 1, 2020, the FIA quota share was reduced to 40% and the MYGA quota share was reduced to 25%. American Life has established a US Alliance Funds Withheld Account to hold the assets for the US Alliance Agreement. In addition, a trust account was established among American Life, US Alliance and Capitol Federal Savings Bank, for the sole benefit of American Life to fund the Funds Withheld Account for any shortage in required reserves. The initial settlement included net premium income of $13,542,325 and net statutory reserves of $14,706,862. The initial settlement for the Funds Withheld Account was $12,729,785 and to the trust account was $812,539 from American Life and $5,000,000 from US Alliance. In early 2020, Midwest formed Seneca Re, a wholly owned subsidiary, to operate as a sponsored captive insurance company for the purpose of insuring and reinsuring various types of risks of its participants through one or more protected cells and to conduct any other business or activity that is permitted for sponsored captive insurance companies under Vermont regulations. Seneca Re has one Protected Cell 2020-01 (“SRC1”) which closed during May of 2020. Effective April 24, 2020, American life entered into a Master Letter Agreement with Seneca Re and Crestline regarding a flow of annuity reinsurance and related asset management, whereby Crestline agreed to provide reinsurance funding for a quota share percentage of 25% of the liabilities of American Life arising from the MYGA and a quota share percentage of 40% of the FIA products. This agreement expires on April 24, 2023. The table below shows those ceding commissions and allowances received from the above reinsurers. The new business was not ceded to these reinsurers until the third and fourth quarters of 2019; therefore, there is no comparable data in the first half of 2019. Six months ended June 30, 2020 Reinsurer Effective Date Ceding Expense (1) Ironbound Reinsurance Company Limited July 2019 $ 688,110 $ 679,076 SDA Annuity & Life Re November 2019 868,729 1,628,850 US Alliance Life and Security Company (2) April 2020 2,272,784 4,009,102 $ 3,829,623 $ 6,317,028 (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees. (2) US Alliance Life and Security Company funds withheld and funds paid treaty Under GAAP, ceding commissions are deferred on the balance sheet and are amortized over the period of the policyholder contracts. The tables below shows the ceding commissions from the reinsurers including SRC1 and what was earned on a GAAP basis: Six months ended June 30, 2020 Reinsurer Gross Ceding Commission Expense (1) Interest on Ceding Commissions Earned Ironbound Reinsurance Company Limited $ 688,110 $ 679,076 $ 110,022 $ 188,826 SDA Annuity & Life Re 868,729 1,628,850 29,527 18,341 US Alliance Life and Security Company (2) 2,272,784 4,009,102 7,711 10,465 $ 3,829,623 $ 6,317,028 $ 147,260 $ 217,632 (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees. (2) US Alliance Life and Security Company funds withheld and funds paid treaty The tables below shows the ceding commissions deferred on each reinsurance transaction on a GAAP basis: June 30, 2020 December 31, 2019 Reinsurer Effective Date Deferred Ceding Commission Deferred Ceding Commission US Alliance Life and Security Company (1) September 2017 $ 834,487 $ 858,675 Unified Life Insurance Company (1) July 2018 304,007 582,894 Ironbound Reinsurance Company Limited (2) July 2019 5,752,126 5,060,359 SDA Annuity & Life Re (2) November 2019 2,156,377 — US Alliance Life and Security Company (3) April 2020 2,440,087 1,076,267 $ 11,487,084 $ 7,578,195 (1) These reinsurance transactions on our legacy business received gross ceding commissions on the effective dates of the transaction. The difference between the statutory net adjusted reserves and the GAAP adjusted reserves plus the elimination of DAC and value of business acquired (“VOBA”) related to these businesses reduces the gross ceding commission with the remaining deferred and amortized over the lifetime of the blocks of business. (2) These reinsurance transactions include the ceding commissions and expense allowances which are accounted for as described in (1). (3) US Alliance Life and Security Company funds withheld and funds paid treaty. The use of reinsurance does not relieve American Life of its primary liability to pay the full amount of the insurance benefit in the event of the failure of a reinsurer to honor its contractual obligation for all blocks of business except what is included in the Unified transaction. The reinsurance agreement with Unified discharges American Life’s responsibilities once all the policies have changed from indemnity to assumptive reinsurance. No reinsurer of business ceded by American Life has failed to pay policy claims (individually or in the aggregate) with respect to our ceded business. American Life monitors several factors that it considers relevant to satisfy itself as to the ongoing ability of a reinsurer to meet all obligations of the reinsurance agreements. These factors include the credit rating of the reinsurer, the financial strength of the reinsurer, significant changes or events of the reinsurer, and any other relevant factors. If American Life believes that any reinsurer would not be able to satisfy its obligations with American Life, separate contingency reserves may be established. At June 30, 2020 and December 31, 2019, no contingency reserves were established. American Life expects to reinsure substantially all of its new insurance policies with a variety of reinsurers in exchange for upfront ceding commissions, expense reimbursements and administrative fees. American Life may retain some business with the intent to reinsure some or all at a future date.

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Notes Payable	Note 10. Notes Payable On June 28, 2018, we underwent a change in control as a result of the closing of a Loan, Convertible Preferred Stock and Convertible Senior Secured Note Purchase Agreement dated May 9, 2018 (the “Agreement”) with a non-affiliated third party, Xenith. Vespoint LLC, a Delaware limited liability company (“Vespoint”), owns 100% of the voting stock of Xenith. Vespoint is owned and managed by AMS Advisors LLC, a Delaware limited liability company, and Rendezvous Capital LLC, a New York limited liability company. Each of these companies is a private investment company; they are controlled by Michael Minnich and A. Michael Salem, who are Co-Chief Executive Officers of Vespoint and Executive Officers of Midwest and American Life. At closing of the Agreement with Xenith, it loaned a total of $600,000 to Midwest, repayable upon maturity in 10 years with interest of 8% per annum with 4% payable quarterly and another 4% accrued and payable upon maturity. The loans were made under two notes of $500,000 and $100,000, respectively. The Agreement further provided that Xenith, in its sole discretion, could loan up to an additional $23,500,000 to Midwest. Any loans made by Xenith under this election (“Subsequent Loans”) could also to be converted into Midwest’s voting common stock at $0.02 per share. Xenith contributed an additional $18,500,000 in the fourth quarter of 2018 following the amendment of the Midwest Articles of Incorporation to increase its authorized voting common shares to 1,970,000,000. All loans were later converted into Midwest voting common stock on June 18, 2019. Any additional borrowing capacity was terminated by written mutual consent in April 2020. The Company had total accrued interest of $845,536 on the Xenith notes through June 18, 2019. All interest on the notes from inception through June 18, 2019 was waived by Xenith. The accrued interest was accounted for as an additional capital contribution. The legal fees of $161,000 associated with the Xenith transaction were capitalized and subsequently written off when the notes were converted. The following table sets forth information regarding loans made to us by Xenith through June 18, 2019 and the number of shares of voting common stock each loan was converted into on June 28, 2019: Shares of Common Loan Stock into which Principal Loans Were Date of Loan Amount Converted June 28, 2018 $ 500,000 24,284,825 June 28, 2018 100,000 4,856,965 October 10, 2018 1,000,000 48,569,650 December 7, 2018 17,500,000 849,968,875 Total $ 19,100,000 927,680,315 As of June 30, 2020, Midwest had no notes outstanding to Xenith.

Long Term Incentive Plan

Long Term Incentive Plan	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Long Term Incentive Plan	Note 11. Long-Term Incentive Plan On June 11, 2019, our Board of Directors (the “Board”) approved the Midwest Holding Inc. Long-Term Incentive Plan. The purposes of this Long-Term Incentive Plan (“LTIP”) is to create incentives which are designed to motivate participants to put forth maximum effort toward the success and growth of the Company and to enable the Company to attract and retain experienced individuals who by their position, ability and diligence are able to make important contributions to the Company’s success. Toward these objectives, this Plan provides for the grant of Options, Restricted Stock Awards, Restricted Stock Units, SARs, Performance Units, Performance Bonuses, Stock Awards and Other Incentive Awards to Eligible Employees and the grant of Nonqualified Stock Options, Restricted Stock Awards, Restricted Stock Units, SARs, Performance Units, Stock Awards and Other Incentive Awards to Consultants and Eligible Directors, subject to the conditions set forth in this Plan. All awards are required to be established, approved, and/or granted by our Board. On July 19, 2019, the Company granted stock options for 8,950,000 shares that are exercisable during a ten-year period after the date of grant at a price of $0.05 per share with one-third exercisable after July 17, 2021 and two-thirds exercisable after July 17, 2023. The fair market value of the shares was approximately $0.016 a share at grant date. The Company’s management team considered the stock options as compensation. Using the Black-Scholes Model we determined the consideration should be $143,200. The factors we used to determine the consideration were the following: the weighted average fair market value at grant date of $0.016 a share, exercise price of $0.05 a share, time to maturity of 10 years, annual risk-free interest rate of 1.84% based upon the 10 year U.S. Treasury rate at grant date, and a 200% volatility based on the change in price of the stock between the decision and grant date, the amount of shares and the closely held nature of the stock before the grant. For the three and six months ending June 30, 2020, we have amortized the consideration over the two and four year vesting tranches for an expense and additional paid in capital of $13,089 and $25,022, respectively. On May 1, 2020, 100,000 stock options became vested by two Board of Director members resigning from the Board. No options had been forfeited as of June 30, 2020 or December 31, 2019. Table below show the remaining non-vested shares as of June 30, 2020: Shares Non-vested at December 31, 2019 8,950,000 Vested 100,000 Non-vested at June 30, 2020 8,850,000

Deposit-Type Contracts

Deposit-Type Contracts	6 Months Ended
	Jun. 30, 2020
Separate Accounts Disclosure [Abstract]
Deposit-Type Contracts	Note 12. Deposit-Type Contracts The Company’s deposit-type contracts represent the contract value that has accrued to the benefit of policyholders as of the balance sheet date. Liabilities for these 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 deposit-type contracts for the six months ended June 30, 2020 and the year ended December 31, 2019: June 30, 2020 December 31, 2019 Beginning balance $ 171,168,785 $ 7,234,927 US Alliance 398,623 657,986 Deposits received 147,486,013 161,392,700 Investment earnings (includes embedded derivative) 3,436,491 2,043,762 Withdrawals (658,936) (160,590) Ending balance $ 321,830,976 $ 171,168,785

Contingencies and Commitments

Contingencies and Commitments	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Commitments	Note 13. Contingencies and Commitments Legal Proceedings: We are involved in litigation incidental to our operations from time to time. We are not presently a party to any legal proceedings other than litigation arising in the ordinary course of our business, and we are not aware of any claims that could materially affect our financial position or results of operations. Regulatory Matters : State regulatory bodies and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning the Company’s compliance with laws in relation to, but not limited to, insurance and securities matters. American Life received a Certificate of Authority to conduct business in Iowa during the first quarter of 2019. American Life received a Certificate of Authority to conduct business during 2020 from each of the following states: Utah, Montana, Louisiana, Ohio, and the District of Columbia. American Life has pending applications six additional states that are expected to be approved by the end of 2020. The Nebraska Department of Insurance (“NDOI”) granted American Life approval to enter into the Funds Withheld Coinsurance and Modified Coinsurance Agreement with Ironbound prior to closing of the agreement in July 2019. The NDOI granted American Life approval to enter into the Funds Withheld Coinsurance and Modified Coinsurance Agreement with SDA prior to closing of the agreement in December 2019. The NDOI granted American Life approval to enter into the Funds Withheld and Funds Paid Coinsurance Agreement with US Alliance Agreement prior to closing of the agreement on April 15, 2020. The NDOI granted American Life approval to enter into the Funds Withheld and Modified Coinsurance Agreement with Seneca Re through SRC1 prior to closing of the agreement on May 13, 2020.

Leases

Leases	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Leases	Note 14. Leases Our operating lease activities consist of leases for office space and equipment. Our finance lease activities consist of leases for hardware which we owned effective March 31, 2020. None of our lease agreements include variable lease payments. See the discussion of our January 1, 2019 implementation of a new accounting standard for leases and its impact on our Consolidated Financial Statements in Note 2. New Accounting Standards. Supplemental balance sheet information as of June 30, 2020 regarding our leases is as follows: As of As of Leases Classification June 30, 2020 December 31, 2019 Assets Noncurrent: Finance Office and other equipment, net of accumulated depreciation and amortization $ — $ 2,913 Operating Operating lease right-of-use assets 409,165 470,132 Total leased assets $ 409,165 $ 473,045 Liabilities Current: Finance lease Finance lease liabilities $ — $ 1,860 Noncurrent: Operating lease Operating lease liabilities 460,791 524,248 Total leased liabilities $ 460,791 $ 526,108 Our operating and finance leases expenses for the three and six months ended June 30, 2020 and 2019, were as follows: Three months ended June 30, Six months ended June 30, Leases Classification 2020 2019 2020 2019 Operating General and administrative expense $ 2,485 $ 3,344 $ 4,577 $ 7,109 Finance lease cost: Amortization expense — 2,914 2,913 5,827 Interest expense — 111 111 222 Minimum contractual obligations for our operating leases at June 30, 2020, are as follows: Operating Leases 2020 (excluding six months ended June 30, 2020) $ 90,167 2021 164,081 2022 156,608 2023 161,674 2024 13,508 Total remaining lease payments $ 586,038 Supplemental cash flow information related to leases was as follows: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Cash payments Operating cash flows from operating leases $ (190) $ (190) $ (1,035) $ 42 Operating cash flows from finance leases 1,164 1,164 4,657 2,328 Financing cash flows from finance leases — (111) (111) (222) The weighted average remaining lease terms and discount rate of our finance and operating leases was follows: As of As of June 30, 2020 December 31, 2019 Weighted Average Remaining Lease Term Finance lease — 3 months Operating lease 2 years 2.5 years Weighted Average Discount Rate Finance lease Operating lease

Statutory Net Income and Surplu

Statutory Net Income and Surplus	6 Months Ended
	Jun. 30, 2020
Statutory Net Income and Surplus [Abstract]
Statutory Net Income and Surplus	Note 15. Statutory Net Income and Surplus American Life is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Nebraska Department of Insurance. 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. As filed in the statutory-basis annual statement with the Nebraska Department of Insurance, American Life’s statutory net gains (losses) for the six months ended June 30, 2020 and 2019 were $2,724,713 and $(2,978,004), respectively. Capital and surplus of American Life as of June 30, 2020 and December 31, 2019 was $25,775,640 and $19,507,325, respectively. The net gain was primarily due to the ceding commission and reserve adjustments earned on the Ironbound, SDA, US Alliance, and SRC1 reinsurance transactions; offset by continuing expenses incurred to provide services on new software and related technology to distribute products through national marketing organizations. For the six months ended June 30, 2020, the MYGA and FIA sales were $58,965,873 and $88,520,140 compared to the $38,238,880 of MYGA sales for the six months ended June 30, 2019. An additional $8,575,802 of MYGA and $51,206,249 of FIA sales were pending as of June 30, 2020. As discussed in Note 9 Reinsurance above, American Life entered into the FW/Modco Agreement with Ironbound to cede 95% of American Life’s MYGA business. On March 1, 2020, the quota share ceded to Ironbound was reduced to 30% and on March 11, 2020 the quota share was further reduced to 0%. Premiums net of commissions and ceding commission and administrative fees ceded to Ironbound were $17,738,468 and $128,760,161 and the reserve requirement of $21,746,098 and $139,093,289 was ceded to Ironbound for the six months ended June 30, 2020 and the year ended December 31, 2019, respectively. American Life entered into the FW/Modco Agreement with SDA to cede 5% of the MYGA and 95% of the FIA business through December 31, 2019. Effective January 1, 2020, the FIA quota share was reduced to 30%. Premiums net of commissions and ceding commission and administrative fees ceded to SDA were $14,981,255 and $18,984,045 and the reserve requirements of $16,715,264 and $20,822,364 were ceded to SDA for the six months ended June 30, 2020 and the year ended December 31, 2019, respectively. American Life entered into the Funds withheld and Modified Coinsurance Agreements with Seneca Re by and through SRC1 and SRC2. SRC2 closed on July 27, 2020 but was effective April 24, 2020. The NDOI approved the inclusion of the SRC2 coinsurance in American Life’s June 30, 2020 statutory financial statements. Premiums net of commissions and ceding commission and administrative fees ceded to SRC1 and SRC2 were $24,075,481 and $26,638,405, respectively. The reserve requirements of $26,396,718 and $29,148,027 were ceded to SRC1 and SRC2 for the six months ended June 30, 2020, respectively. American Life entered into the Funds Withheld and Funds Paid Coinsurance Agreement with US Alliance. Premiums net of commissions and ceding commission and administrative fees ceded to US Alliance were $42,463,587 and the reserve requirements of $46,862,126 were ceded to US Alliance for the six months ended June 30, 2020, respectively. State insurance laws require American Life to maintain certain minimum capital and surplus amounts on a statutory basis. Our insurance subsidiary is subject to regulations that restrict the payment of dividends from statutory surplus and may require prior approval from its domiciliary insurance regulatory authorities. American Life is also subject to risk-based capital (“RBC”) requirements that may further affect its ability to pay dividends. American Life’s statutory capital and surplus as June 30, 2020 and December 31, 2019, exceeded the amount of statutory capital and surplus necessary to satisfy regulatory requirements, including the RBC requirements. As of June 30, 2020, American Life had an invested asset that was impaired as a result of the fair market of the underlying collateral was valued less that the book value. This was non-admitted for statutory accounting. This asset was held in our modified coinsurance account for Ironbound so it was passed through the third party reinsurer through a reduction of the investment income earned by the third party reinsurer. As of June 30, 2020, and December 31, 2019, American Life did not hold any participating policyholder contracts where dividends were required to be paid.

Third Party Administration

Third Party Administration	6 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
Third Party Administration	Note 16. Third Party Administration The Company commenced its third party administrative (“TPA”) services in 2012 as an additional revenue source. These services are offered to non-affiliated entities. These agreements, for various levels of administrative services on behalf of each company, generate fee income for the Company. Services provided vary based on their needs and can include some or all aspects of back-office accounting and policy administration. The TPA contracts were not a significant source of revenue as of June 30, 2020.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 17. Subsequent Events COVID-19 Pandemic Beginning in March 2020, the global pandemic associated with novel COVID-19 and related economic conditions began to impact the Company’s results. Due to the unprecedented volatility in the economy related to COVID-19, the Company’s available for sale assets values were reduced by approximately $6.8 million and was reflected in the accumulated other comprehensive income on the balance sheet. Of these unrealized losses, $8.5 million pertained to assets owned by third party reinsurers offset by unrealized gains of $1.7 million retained by American Life. These unrealized losses owned by the third party reinsurers was offset by a realized gain of $8.5 million on the related embedded derivative. Also, the derivative assets were increased by $8,800 and were reflected in our realized gains and losses in the income statement. Approximately 80% of the unrealized losses were in our CLO portfolio and are typically illiquid which are intended to be held to maturity; thus, we believe the risk of loss is not significant. The Company has monitored the underlying unrealized losses and believe they pose little threat in the long-term due to the quality of the underlying credits. We believe that the quality and duration of our investments provide reasonable assurance of continued performance of the portfolio despite the recent economic volatility. The assets backing the treaties are maintained by American Life as collateral whereas the assets and total return on the asset portfolios are owned by the third party reinsurers excluding SRC1 as a wholly owned subsidiary. The Company has only contingent exposure to these losses as the CLO’s are held as collateral in and funds withheld and modification coinsurance accounts for the performance of the third party reinsurers under the coinsurance treaties. The third party reinsurers bear the risk of loss. Under GAAP, this arrangement is considered an embedded derivative as discussed in Note 6 above. The Company purchases and sells equipment leases in its investment portfolio. As of June 30, 2020, the Company owned several leases. An impairment test, as of June 30, 2020, was completed on the only non-performing lease in the portfolio and it was determined that the underlying collateral value was substantially less than the outstanding remaining lease payments of $3.4 million. The Company established a valuation allowance on the asset of $776,973 and will continue to monitor the value the underlying collateral. The valuation allowance was recorded as a bad debt expense; however, this asset is owned by a third party reinsurer. Therefore, the valuation allowance was passed through as a receivable from the reinsurers, offsetting the valuation allowance. The COVD-19 pandemic has not materially impacted our sales of our annuity products as evidenced by new sales of $147.5 million in issued policies and pending applications of $59.8 million. Our policies sold have surrender charges over their duration that would tend to offset future income accruals. Operationally, the Company had the vast majority of its workforce working remotely with a skeleton crew in the office through June 30, 2020. Starting in July, the majority of the Company’s workforce had returned to the office with the high risk employees still working remotely. Our technology has allowed us to move to this work environment without a reduction in our productivity. The Company’s business continuity plan has performed as expected. The Company’s management will continue to monitor our investments and cash flows to evaluate the impact as this pandemic evolves. On July 14, 2020 at the Annual Meeting of Shareholders, our shareholders approved the amendment of the Company’s Amended and Restated Articles of Incorporation to (i) change its authorized capital stock to 22,000,000 shares of common stock, $0.001 par value, of which 20,000,000 shares shall be voting common stock and 2,000,000 shares shall be nonvoting common stock, and 2,000,000 shares of preferred stock, $0.001 par value; and (ii) to effect a reverse split of the Company’s existing voting common stock, $0.001 par value, at a ratio of 500 shares of existing common stock for one share of voting common stock and the payment of cash for any fractional shares resulting from the reverse split. The shareholders approved the reincorporation of Midwest from the State of Nebraska to the State of Delaware which the Company is in the process of completing. On July 23, 2020, the NDOI approved the Funds Withheld and Modified Coinsurance Agreement Seneca Incorporated Cell, LLC 2020-02 (“SRC2”) of Seneca Reinsurance Company, LLC. The agreement closed on July 27, 2020. Under the agreement, American Life ceded to SRC2, on a funds withheld and modified coinsurance basis, an initial 25% quota share of certain liabilities with respect to American Life’s MYGA business and 40% quota share of certain liabilities with respect to American Life’s FIA business effective April 24, 2020. American Life has established a SRC2 Funds Withheld Account and a Modco Account to hold the assets pursuant to the agreement. The NDOI approved the inclusion of the SRC2 coinsurance in American Life’s June 30, 2020 statutory financial statements.

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Nature of operations	Nature of Operations Midwest Holding Inc. (“Midwest,” “the Company,” “we,” “our,” or “us”) was incorporated in Nebraska on October 31, 2003 for the primary purpose of operating a financial services company. The Company is in the life and annuity insurance business and operates through its wholly owned subsidiary, American Life & Security Corp. (“American Life”). As discussed in Note 3, on June 28, 2018, we underwent a change in control as a result of the closing of a Loan, Convertible Preferred Stock and Convertible Senior Secured Note Purchase Agreement dated May 9, 2018 with a non-affiliated third party, Xenith Holdings LLC, a Delaware limited liability company (“Xenith”). On April 2, 2019, we obtained a 51% ownership in 1505 Capital, a Delaware limited liability company, that was established in 2018 to provide financial and investment advisory and management services to clients and related investment activities. On June 15, 2020, we purchased the remaining 49% ownership in 1505 Capital for $500,000. 1505 Capital’s financial results have been consolidated with the Company’s since the date of its acquisition. Effective March 12, 2020, Seneca Reinsurance Company, LLC (“Seneca Re”), a Vermont limited liability company, was formed by Midwest to operate as a sponsored captive insurance company for the purpose of insuring and reinsuring various types of risks of its participants through one or more protected cells and to conduct any other business or activity that is permitted for sponsored captive insurance companies under Vermont insurance regulations. On March 30, 2020, Seneca Re received its Certification of Authority to transact the business of a captive insurance company. On May 12, 2020, Midwest contributed $300,000 to Seneca Re for a 100% ownership interest. As of June 30, 2020, Seneca Re had one Protected Cell-2020-01 (“SRC1”). Midwest contributed $3,000,000 to capitalize SRC1. On April 24, 2020, Midwest entered into a Securities Purchase Agreement with Crestline Assurance Holdings LLC (“Crestline”), a Delaware limited liability company (“Crestline”) and Xenith, Vespoint LLC, a Delaware limited liability company (“Vespoint”), and Pursuant to the Agreement, Crestline purchased 222,222,222 shares of the Company’s voting common stock, par value $0.001 per share (“common stock”), at a purchase price of $0.045 per share for $10.0 million. Also, effective as of April 24, 2020, in a separate transaction, Midwest sold 115,827,004 shares of common stock to various investors at $0.045 per share for $5.227 million. Under the Crestline agreement, the Company contributed $5.0 million to American Life and the remaining proceeds are to be used for general working capital and corporate purposes. Also effective April 24, 2020, American life entered into a Master Letter Agreement with Seneca Re and Crestline regarding a flow of annuity reinsurance and related asset management, whereby Crestline agreed to provide reinsure funding for a quota share percentage of 25% of the liabilities of American Life arising from its multi-year guaranteed annuities ("MYGA") and a quota share percentage of 40% for American Life’s fixed indexed annuity (“FIA”) products. This agreement expires on April 24, 2023. Management evaluates the Company as one reporting segment in the life insurance industry. The Company is primarily engaged in the underwriting and marketing of annuity products and life insurance through American Life and then reinsuring such products with third party reinsurers and, since April 24, 2020, with the Seneca Re entity. The Company’s historical product offerings consisted of a multi-benefit life insurance policy that combined cash value life insurance with a tax deferred annuity and a single premium term life product. These product offerings were underwritten, marketed, and managed as a group of similar products on an overall portfolio basis. American Life presently offers five products, two MYGAs, a FIA, and two bonus plans associated with the FIA product.
Basis of presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions from the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10‑Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the “Notes to Consolidated Financial Statements” included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2019 (“2019 Form 10‑K”), should be read in connection with the reading of these interim unaudited consolidated financial statements. Certain GAAP policies that significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2019 Form 10‑K. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Operating results for the six months ended June 30, 2020, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020. All intercompany accounts and transactions have been eliminated in consolidation and certain immaterial reclassifications have been made to the prior period results to conform to the current period’s presentation with no impact on results of operations or total stockholders’ equity.
Investments	Investments All fixed maturities owned by the Company are considered available-for-sale and are included in the consolidated financial statements at their fair value as of the financial statement date. Bond premiums and discounts are amortized using the scientific-yield method over the term of the bonds. Realized gains and losses on securities sold during the year are determined using the specific identification method. Unrealized holding gains and losses, net of applicable income taxes, are included in accumulated other comprehensive income. Declines in the fair value of available-for-sale securities below their amortized cost are evaluated to assess whether any other-than-temporary impairment loss should be recorded. In determining if these losses are expected to be other-than-temporary, the Company considers severity of impairment, duration of impairment, forecasted recovery period, industry outlook, the financial condition of the issuer, issuer credit ratings, and the intent and ability of the Company to hold the investment until the recovery of the cost. The recognition of other-than-temporary impairment losses on debt securities is dependent on the facts and circumstances related to the specific security. If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security prior to recovery of the amortized cost, the difference between amortized cost and fair value is recognized in the statement of comprehensive income as an other-than-temporary impairment. If the Company does not expect to recover the amortized basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated. The Company recognizes the credit loss portion in the income statement and the noncredit loss portion in accumulated other comprehensive loss. The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected cash flows with the amortized cost basis of the debt security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the fixed income security at the date of acquisition. Cash flow estimates are driven by assumptions regarding probability of default, including changes in credit ratings, and estimates regarding timing and amount of recoveries associated with a default. The Company has analyzed the securities portfolio and determined that there was not an other-than-temporary impairment for the six months ended June 30, 2020. Investment income consists of interest, dividends, gains and losses from equity method investments, and real estate income, which are recognized on an accrual basis and amortization of premiums and discounts.
Mortgage loans on real estate, held for investment	Mortgage loans on real estate, held for investment Mortgage loans on real estate, held for investment are carried at unpaid principal balances. Interest income on mortgage loans on real estate, held for investment is recognized in net investment income at the contract interest rate when earned. A mortgage loan is considered to be impaired when 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 losses expected by management to be realized in connection with future dispositions or settlements 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. These evaluations are revised as conditions change and new information becomes available. No such valuation allowance was established as of June 30, 2020.
Other invested assets	Other invested assets The Company purchases and sells equipment leases in its investment portfolio. As of June 30, 2020, the Company owned several leases. An impairment test, as of June 30, 2020, was completed on the only non-performing lease in the portfolio and it was determined that the underlying collateral value was substantially less than the remaining lease payments of $3.4 million. The Company established a valuation allowance on the asset of $776,973 and will continue to monitor the value the underlying collateral. The valuation allowance was recorded as a bad debt expense; however, this asset is owned by a third party reinsurer. Therefore, the valuation allowance was passed through as a receivable from the reinsurers, offsetting the valuation allowance.
Derivative Instruments	Derivative Instruments Derivatives are used to hedge the risks experienced in our ongoing operations, such as equity, interest rate and cash flow risks, or for other risk management purposes, which primarily involve managing liability risks associated with our indexed annuity products and reinsurance agreements. Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, or other underlying notional amounts. Derivative assets and liabilities are carried at fair value on the consolidated balance sheets. To qualify for hedge accounting, at the inception of the hedging relationship, we would formally document our designation of the hedge as a cash flow or fair value hedge and our risk management objective and strategy for undertaking the hedging transaction. In this documentation, we would identify how the hedging instrument is expected to hedge the designated risks related to the hedged item, the method that would be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method which would be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. In the late 2019, the Company began investing in options to hedge our interest rate risks on our FIA product. Options typically do not qualify for hedge accounting; therefore, we chose not to use hedge accounting for our options that we currently have. We value our derivatives at fair market value with the offset being recorded on our income statement as a realized gain or (loss). Additionally, reinsurance agreements written on a funds withheld or modified coinsurance basis contain embedded derivatives on our fixed indexed annuity product. Gains or (losses) associated with the performance of assets maintained in the modified coinsurance deposit and funds withheld accounts are reflected as realized gains or (losses ) in the income statement.
Preferred Stock	Preferred stock Preferred stock of a non-affiliated company was purchased for $500,000 during the third quarter of 2019. An impairment analysis of the preferred stock was performed as of June 30, 2020, due to a change in valuation of an invested asset held by the non-affiliated company. The investment asset had collateral supporting the investment that was less than the book value of the asset; therefore, the Company established a full valuation allowance of $500,000. This was recorded as a reduction of the asset on the balance sheet and a bad debt expense on the Consolidated Statements of Comprehensive (Loss) Income.
Investment escrow	Investment escrow The Company held in escrow as of December 31, 2019, cash used to settle a mortgage loan that closed in January 2020. As of June 30, 2020, the Company did not hold any cash related to investments in escrow.
Notes receivable	Notes receivable The Company held in notes receivable as of June 30, 2020, a note of $5,488,101 between American Life and an unconsolidated affiliate that was rated by a nationally recognized statistical rating organization (“NRSRO”). This note is being carried at the fair market value.
Policy loans	Policy loans Policy loans are carried at unpaid principal balances. Interest income on policy loans is recognized in net investment income at the contract interest rate when earned. No valuation allowance is established for these policy loans as the amount of the loan is fully secured by the death benefit of the policy and cash surrender value.
Cash and cash equivalents	Cash and cash equivalents The Company considers all liquid investments with original maturities of three months or less when purchased to be cash equivalents. At June 30, 2020 and December 31, 2019, the Company had no cash equivalents. At June 30, 2020, the Company held approximately 400,000 in Pound Sterling (“GBP”) in two of our custody accounts. The USD equivalent held was approximately $500,000. As of June 30, 2020, the Company recorded unrealized losses of approximately $260,000 related to the change in the foreign currency exchange rate (“FX”) of the GBP cash of 400,000 recorded in other comprehensive income on the balance sheet.
Deferred acquisition costs	Deferred acquisition costs Deferred acquisition costs (“DAC”) consist of incremental direct costs, net of amounts ceded to third party reinsurers, that result directly from and are essential to the contract acquisition transaction and would not have been incurred by the Company had the contract acquisition not occurred. These costs are capitalized, to the extent recoverable, and amortized over the life of the premiums produced. The Company evaluates the types of acquisition costs it capitalizes. The Company capitalizes agent compensation and benefits and other expenses that are directly related to the successful acquisition of contracts. The Company also capitalizes expenses directly related to activities performed by the Company, such as underwriting, policy issuance, and processing fees incurred in connection with successful contract acquisitions. Recoverability of deferred acquisition costs is evaluated periodically by comparing the current estimate of the present value of expected pretax future profits to the unamortized asset balance. If this current estimate is less than the existing balance, the difference is charged to expense. The Company performs a recoverability analysis annually in the fourth quarter unless events occur which require an immediate review. The Company determined that no events occurred in the six months ended June 30, 2020 that suggest a review should be undertaken.
Reinsurance	Reinsurance As indicated in our 2019 Form 10-K, reinsurance is an integral part of our business plan. We expect to reinsure substantially all of our new insurance policies with a variety of reinsurers in exchange for upfront ceding commissions, expense reimbursements and administrative fees. Under these reinsurance agreements, we expect there will be a monthly or quarterly settlement of premiums, claims, surrenders, collateral, and other administration fees. We believe this will help preserve American Life’s capital while supporting its growth because American Life will have lower capital requirements when its business is reinsured due to lower overall financial exposure versus retaining the insurance policy business itself. See Note 9 below for further discussion of our reinsurance activities. There are two main categories of reinsurance transactions: 1) “indemnity,” where we cede a portion of our risk but retain the legal responsibility to our policyholders should our reinsurers not meet their financial obligations; and 2) “assumption,” where we transfer the risk and legal responsibilities to the reinsurers. The reinsurers are required to acquire the appropriate regulatory and policyholder approvals to convert indemnity policies to assumption policies. Our reinsurers may be domestic or foreign capital markets investors or traditional reinsurance companies seeking to assume U.S. insurance business. We plan to mitigate the credit risk relating to reinsurers generally by requiring other financial commitments from the reinsurers to secure the reinsured risks (such as posting substantial collateral). It should be noted that under indemnity reinsurance agreements American Life remains exposed to the credit risk of its reinsurers. If one or more reinsurers becomes insolvent or is otherwise unable or unwilling to pay claims under the terms of the applicable reinsurance agreement, American Life retains legal responsibility to pay policyholder claims, which, in such event would likely materially and adversely affect the capital and surplus of American Life. As indicated above under “Nature of Operations,” Midwest formed Seneca Re in early 2020. On April 15, 2020, Midwest entered into an operating agreement with Seneca Re. Seneca Re currently has one Protected Cell 2020-01 (“SRC1”). Some reinsurers are not and may not be “accredited” or qualified as reinsurers under Nebraska Law. In order to enter into reinsurance agreements with such reinsurers and to reduce potential credit risk, American Life holds a deposit or withholds funds from the reinsurer or require the reinsurer to maintain a trust that holds assets backing up the reinsurer’s obligation to pay claims on the business it assumes. The reinsurer may also appoint an investment manager for such funds, which is some cases may be our investment adviser subsidiary, 1505 Capital, to manage these assets pursuant to guidelines adopted by us that are consistent with state investment statutes and reinsurance regulations. American Life currently has treaties with four third party reinsurers and one related party reinsurer. Of the four third party reinsurers, only three have funds withheld or modified coinsurance provisions. In a modified coinsurance arrangement (“Modco”), the ceding entity retains the assets equal to the modified coinsurance reserves retained. In a funds withheld coinsurance agreement (“FW”), assets that would normally be paid over to a reinsurer are withheld by the ceding company to permit statutory credit for unauthorized reinsurance, to reduce the potential credit risk. Under those provisions with third party reinsurers, the assets backing the treaties are maintained by American Life as investments but the assets and total returns or losses on the investments are owned by the reinsurers. Under GAAP, this arrangement is considered an embedded derivative as discussed in Note 6 to our consolidated financial statements above. As a result of recent market volatility, assets carried as investments on American Life’s financial statements for the third party reinsurers contained unrealized losses of approximately $8.5 million as of June 30, 2020. The terms of the contracts with the third party reinsurers provide that unrealized losses on the portfolios accrue to the third party reinsurers. Accordingly, the unrealized losses on the assets held by American Life were offset by a gain in the embedded derivative of $8.5 million. We account for this unrealized loss pass-through by recording equivalent realized gains on our income statement and in amount recoverable from our third party reinsurers on our balance sheet.
Property and equipment	Property and equipment Property and equipment are stated at cost net of accumulated depreciation. Annual depreciation is primarily computed using straight-line methods for financial reporting and straight-line and accelerated methods for tax purposes. Furniture and equipment is depreciated over 3 to 7 years and computer software and equipment is generally depreciated over 3 years. Depreciation expense totaled $11,996 and $9,506 for the three months ended June 30, 2020 and 2019, respectively. Depreciation expense totaled $22,312 and $19,320 for the six months ended June 30, 2020 and 2019, respectively. Accumulated depreciation totaled $997,793 and $975,480 as of June 30, 2020 and December 31, 2019, respectively. Maintenance and repairs are expensed as incurred. Replacements and improvements which extend the useful life of the asset are capitalized. The net book value of assets sold or retired are removed from the accounts, and any resulting gain or loss is reflected in earnings. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount of an asset may not be recoverable and exceeds estimated future undiscounted cash flows of the asset. A recognized impairment loss reduces the carrying amount of the asset to its fair value. Management has determined that no such events occurred in the six months ended June 30, 2020 that would indicate the carrying amounts may not be recoverable.
Benefit reserves	Benefit reserves The Company establishes liabilities for amounts payable under insurance policies, including traditional life insurance and annuities. Generally, amounts are payable over an extended period of time. Liabilities for future policy benefits of traditional life insurance have been computed by a net level premium method based upon estimates at the time of issue for investment yields, mortality, and withdrawals. These estimates include provisions for experience less favorable than initially expected. Mortality assumptions are based on industry experience expressed as a percentage of standard mortality tables.
Policy claims	Policy claims Policy claims are based on reported claims plus estimated incurred but not reported claims developed from trends of historical data applied to current exposure.
Deposit-type contracts	Deposit-type contracts Deposit-type contracts consist of amounts on deposit associated with deferred annuities, premium deposit funds and supplemental contracts without life contingencies.
Deferred gain on coinsurance transactions	Deferred gain on coinsurance transactions American Life has entered into four reinsurance contracts where it has earned or is earning ceding commissions. These ceding commissions are recorded as a deferred liability and amortized over the life of the business ceded. American Life receives commission, administrative, and option allowances from reinsurance transactions that represent recovery of acquisition costs. These allowances first reduce the DAC associated with the reinsured blocks of business with the remainder being included in the deferred gain on coinsurance transactions that is also being amortized.
Income taxes	Income taxes The Company is subject to income taxes in the U.S. federal and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state, or local tax examinations by tax authorities for the years before 2015. The Company is not currently under examination for any open years. The provision for income taxes is based on income as reported in the financial statements. The income tax provision is calculated under the asset and liability method. Deferred tax assets are recorded based on the differences between the financial statement and tax basis of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are investments, insurance reserves, and deferred acquisition costs. A deferred tax asset valuation allowance is established when there is uncertainty that such assets would be realized. The Company has no uncertain tax positions that it believes are more-likely-than not that the benefit will not to be realized. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in income tax expense.
Revenue recognition and related expenses	Revenue recognition and related expenses Amounts received as payment for annuities 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 administrative and contract-holder services and cost of insurance, 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. Revenues on traditional life insurance products consist of direct and assumed premiums reported as earned when due. 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. Acquisition costs are amortized over the expected life of the annuity contracts.
Comprehensive income (loss)	Comprehensive income (loss) Comprehensive income (loss) is comprised of net (loss) income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses from marketable securities classified as available for sale and unrealized gains and losses from foreign currency transactions, net of applicable taxes. American Life has treaties with four third party reinsurers that have funds withheld and modified coinsurance provisions. Under those provisions, the assets backing the treaties are maintained by American Life as collateral but are owned by the third party reinsurers, thus, the total return on the asset portfolio belongs to the third party reinsurers. Under GAAP this is considered an embedded derivative as discussed in Note 6 below. As a result of recent market volatility, the investments carried by American Life for the third party reinsurers contained unrealized losses of approximately $8.5 million as of June 30, 2020. The terms of the contracts with the third party reinsurers provided that unrealized losses on the portfolios accrue to the third party reinsurers. We account for this loss pass through by booking equivalent embedded derivative realized gains in our Consolidated Statements of Comprehensive (Loss) Income. Accordingly, for the first half of 2020, such gains were $8.5 million. The remaining investments retained by American Life had unrealized gains of approximately $1,631,474 that included unrealized gains of $1,087,700 resulting from the consolidation of SRC1. Basic earnings per share in the first half of fiscal 2020 were $0.004 which included the aforementioned gain of $8.5 million. Basic loss per share in the first half of fiscal 2020 without the aforementioned gain was ($0.002).
Common and preferred stock and earnings (loss) per share	Common and preferred stock and earnings (loss) per share The par value per each Company share is $0.001 with 1,970,000,000 voting common shares authorized, 20,000,000 non-voting common shares authorized, and 10,000,000 preferred shares authorized. On June 18, 2019, Xenith exercised the right to convert its 1,500,000 Series C preferred stock and the $19,100,000 notes payable to voting common stock at the conversion rate of approximately $0.02 per common share. With the infusion of capital and the issuance of voting common stock in the Crestline transaction mentioned above under “Nature of Operations,” the Company had voting common shares issued and outstanding at June 30, 2020 and December 31, 2019, 1,361,557,779 and 1,023,408,553, respectively The Series C preferred shares were converted by Xenith to voting common shares on June 18, 2019 at a rate of approximately $0.02 per share for 72,854,474 voting common shares. The stated annual dividend rate on the Series C preferred shares was 8%. At the time of the conversion, Xenith forgave all previously accrued dividends from June 28, 2018 through the conversion date. (Loss) gain per basic share attributable to the Company’s common stockholders was computed based on the weighted average number of shares outstanding during each period. The weighted average number of shares outstanding during the three months ended June 30, 2020 and 2019 was 1,272,367,873 and 220,781,744, respectively. T he weighted average number of shares outstanding during the six months ended June 30, 2020 and 2019 were 1,147,888,213 and 122,374,461, respectively. (Loss) gain diluted share attributable to the Company’s common stockholders was computed based on the average shares outstanding and options granted under our Long-Term Incentive Plan (“LTIP”), as if all were vested and exercised. The weighted average number of diluted shares outstanding during the three months ended June 30, 2020 and 2019 was 1,273,314,893 and 221,728,764, respectively. The weighted average number of diluted shares outstanding during the six months ended June 30, 2020 and 2019 were 1,148,835,232 and 123,321,481 shares, respectively.

Assets and Liabilities Held f_2

Assets and Liabilities Held for Sale (Tables)	6 Months Ended
	Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Assets and Liabilities Discontinued Operations	The table below summarizes the assets and liabilities that are included in discontinued operations as of June 30, 2020 and as of December 31, 2019: As of June 30, As of December 31, 2020 2019 Carrying amounts of major classes of assets included as part of discontinued operations: Policy loans $ 42,129 $ 50,387 Reinsurance recoverables 1,077,317 3,569,849 Premiums receivable 22,933 33,512 Total assets held for sale in the Consolidated Balance Sheet $ 1,142,379 $ 3,653,748 Carrying amounts of major classes of liabilities included as part of discontinued operations: Benefit reserves $ 620,941 $ 1,403,953 Policy claims 24,231 28,203 Deposit-type contracts 486,486 2,209,195 Advance premiums 2,273 2,226 Accounts payable and accrued expenses 7,847 3,290 Total liabilities held for sale in the Consolidated Balance Sheets $ 1,141,778 $ 3,646,867

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Schedule of available for sale investments	Cost or Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value June 30, 2020: Fixed maturities: U.S. government obligations $ 1,730,793 $ 105,936 $ — $ 1,836,729 Mortgage-backed securities 721,970 6,445 6,646 721,769 Asset-backed securities 174,795,977 1,459,587 8,347,320 167,908,244 States and political subdivisions -- general obligations 238,408 11,671 — 250,079 States and political subdivisions -- special revenue 2,924,809 540,547 — 3,465,356 Trust preferred 2,218,142 — 93,664 2,124,478 Corporate 24,320,752 626,580 1,143,700 23,803,632 Total fixed maturities $ 206,950,851 $ 2,750,766 $ 9,591,330 $ 200,110,287 Mortgage loans on real estate, held for investment 51,171,943 — — 51,171,943 Derivatives 3,134,820 588,201 494,919 3,228,102 Other invested assets 3,090,964 — — 3,090,964 Notes receivable 5,488,101 — — 5,488,101 Policy loans 141,172 — — 141,172 $ 269,977,851 $ 3,338,967 $ 10,086,249 $ 263,230,569 December 31, 2019: Fixed maturities: U.S. government obligations 2,091,710 7,073 17,559 2,081,224 Mortgage-backed securities 819,678 — 21,070 798,608 Asset-backed securities 95,006,241 646,335 404,752 95,247,824 States and political subdivisions -- general obligations 240,494 8,788 — 249,282 States and political subdivisions -- special revenue 25,112 179 — 25,291 Corporate 18,493,077 501,022 154,467 18,839,632 Total fixed maturities 116,676,312 1,163,397 597,848 117,241,861 Mortgage loans on real estate, held for investment 13,810,041 — — 13,810,041 Derivatives 490,831 87,684 3,221 575,294 Investment escrow 3,899,986 — — 3,899,986 Other invested assets 2,468,947 — — 2,468,947 Preferred stock 500,000 — — 500,000 Policy loans 106,014 — — 106,014 Total fixed maturities $ 137,952,131 $ 1,251,081 $ 601,069 $ 138,602,143
Schedule of Amortized cost, Fair value, Credit rating	Amortized Estimated Cost Fair Value Credit Rating June 30, 2020: Fixed maturities: States and political subdivisions -- general obligations Bellingham, Washington $ 107,128 $ 118,028 AA+ Longview, Washington Refunding 131,280 132,051 Aa3 Total $ 238,408 $ 250,079
Schedule of unrealized loss of securities	The following table summarizes, for all securities in an unrealized loss position at June 30, 2020 and December 31, 2019, the estimated fair value, pre-tax gross unrealized loss, and number of securities by consecutive months they have been in an unrealized loss position. June 30, 2020 December 31, 2019 Gross Number Gross Number Estimated Unrealized of Estimated Unrealized of Fair Value Loss Securities (1) Fair Value Loss Securities (1) Fixed Maturities: Less than 12 months: U.S. government obligations $ — $ — — $ 1,518,772 $ 14,935 9 Asset-backed securities 115,541,627 7,989,266 66 39,114,732 404,752 26 Mortgage-back securities 72,535 392 3 160,010 4,844 4 Trust preferred 2,124,478 93,664 1 — — — Corporate 9,025,918 892,092 11 2,800,815 13,618 4 Greater than 12 months: U.S. government obligations — — — 353,834 2,624 2 Asset-backed securities 12,329,718 358,054 6 — — — Mortgage-back securities 234,404 6,254 5 638,598 16,226 14 Corporate 645,564 251,608 4 2,201,658 140,849 13 Total fixed maturities $ 139,974,244 $ 9,591,330 96 $ 46,788,419 $ 597,848 72 (1) We may reflect a security in more than one aging category based on various purchase dates.
Schedule of amortized cost and estimated fair value of fixed maturities	The amortized cost and estimated fair value of fixed maturities at June 30, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. No securities due in the next year are in an unrealized loss position, further supporting management’s decision not to recognize an other-than-temporary impairment. Amortized Estimated Cost Fair Value Due in one year or less $ 201,929 $ 202,962 Due after one year through five years 10,172,450 10,355,681 Due after five years through ten years 52,847,487 52,184,902 Due after ten years through twenty years 129,141,495 122,598,167 Due after twenty years 14,587,490 14,768,575 $ 206,950,851 $ 200,110,287
Schedule of investments measured at fair value on a recurring basis using level three inputs	Beginning Ending Balance Balance As of Valuation As of December 31, 2019 Additions Sales Allowance June 30, 2020 Assets Policy loans $ 106,014 $ 35,158 $ — $ — $ 141,172 Mortgage loans on real estate, held for investment 13,810,041 39,431,852 2,069,950 — 51,171,943 Other invested assets 2,468,947 7,011,102 5,612,112 (776,973) 3,090,964 Preferred stock 500,000 — — (500,000) — Total Investments $ 16,885,002 $ 46,478,112 $ 7,682,062 $ (1,276,973) $ 54,404,079
Schedule of components of net investment income	The components of net investment income for the three and six months ended June 30, 2020 and 2019 are as follows: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Fixed maturities $ (128,209) $ 435,427 $ 1,041,929 $ 631,118 Mortgage loans — 9,656 — 9,656 Other — 6,832 — 8,076 Gross investment income (128,209) 451,915 1,041,929 648,850 Less: refund received on investment expenses (investment expense) (269,633) (3,900) (198,793) (9,840) Investment income, net of expenses $ (397,842) $ 448,015 $ 843,136 $ 639,010
Mortgage-back securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Schedule of investments measured at fair value on a recurring basis using level three inputs	Carrying Value Interest Income Interest Income June 30, 2020: Industrial $ 500,000 $ 2,871 $ 16,340 Commercial mortgage loan - multi-family 48,612,870 890,188 1,570,056 Other 2,059,073 205,297 98,721 Total mortgage loans $ 51,171,943 $ 1,098,356 $ 1,685,117 December 31, 2019: Industrial $ 500,000 $ — $ 15,889 Commercial mortgage loan - multi-family 11,320,924 116,860 329,684 Other 1,989,117 195,168 7,386 Total mortgage loans $ 13,810,041 $ 312,028 $ 352,959

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of the derivatives not designated as hedges	The following is a summary of the asset derivatives not designated as hedges and embedded derivatives in our FIA product as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 Location in the Derivatives Not Designated Consolidated Statement Notional Number of Estimated Notional Number of Estimated as Hedging Instruments of Balance Sheets Amount Contracts Fair Value Amount Contracts Fair Value Equity-indexed options Derivatives $ 86,093,121 108 $ 3,228,102 $ 9,698,863 24 $ 575,294 Equity-indexed embedded derivative Deposit-type contracts 107,296,291 724 3,038,675 10,720,324 108 576,634
Summary of embedded derivatives related to the funds withheld provision	June 30, 2020 Book Value of Market Value of Total Return Portfolio Assets Assets Swap Value Ironbound $ 99,749,714 $ 93,088,880 $ 6,660,834 SDA 21,116,007 20,006,611 1,109,396 US Alliance 31,973,893 31,272,086 701,807 Total $ 152,839,614 $ 144,367,577 $ 8,472,037

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2020
Investments, All Other Investments [Abstract]
Schedule of financial instruments at fair value measured on a recurring basis	The following table presents the Company’s fair value hierarchy for those financial instruments measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019. Significant Quoted Other Significant In Active Observable Unobservable Estimated Markets Inputs Inputs Fair (Level 1) (Level 2) (Level 3) Value June 30, 2020 Financial assets Fixed maturities: U.S. government obligations $ — $ 1,836,729 $ — $ 1,836,729 Mortgage-backed securities — 721,769 — 721,769 Asset-backed securities — 167,908,244 — 167,908,244 States and political subdivisions — general obligations — 250,079 — 250,079 States and political subdivisions — special revenue — 3,465,356 — 3,465,356 Trust preferred — 2,124,478 — 2,124,478 Corporate — 23,803,632 — 23,803,632 Total fixed maturities — 200,110,287 — 200,110,287 Mortgage loans on real estate, held for investment — — 51,171,943 51,171,943 Derivatives — 3,228,102 — 3,228,102 Other invested assets — — 3,090,964 3,090,964 Notes receivable — 5,488,101 — 5,488,101 Policy loans — — 141,172 141,172 Total Investments $ — $ 208,826,490 $ 54,404,079 $ 263,230,569 Financial liabilities Embedded derivative for equity-indexed contracts $ — $ 3,038,675 $ — 3,038,675 December 31, 2019 Fixed maturities: — U.S. government obligations — 2,081,224 — 2,081,224 Mortgage-backed securities — 798,608 — 798,608 Asset-backed securities — 95,247,824 — 95,247,824 States and political subdivisions — general obligations — 249,282 — 249,282 States and political subdivisions — special revenue — 25,291 — 25,291 Corporate — 18,839,632 — 18,839,632 Total fixed maturities — 117,241,861 — 117,241,861 Mortgage loans on real estate, held for investment — — 13,810,041 13,810,041 Derivatives — 575,294 — 575,294 Investment escrow — 3,899,986 — 3,899,986 Other invested assets — — 2,468,947 2,468,947 Preferred stock — — 500,000 500,000 Policy loans — — 106,014 Total Investments $ — $ 121,717,141 $ 16,885,002 $ 138,496,129 Financial liabilities Embedded derivative for equity-indexed contracts $ — $ 576,634 $ — 576,634
Schedule of financial assets and liabilities at fair value	The following disclosure contains the carrying values, estimated fair values and their corresponding placement in the fair value hierarchy for financial assets and financial liabilities as of June 30, 2020 and December 31, 2019, respectively: June 30, 2020 Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Unobservable Carrying and Liabilities Inputs Inputs Fair Amount (Level 1) (Level 2) (Level 3) Value Assets: Policy loans $ 141,172 $ — $ — $ 141,172 $ 141,172 Cash 75,041,902 75,041,902 — — 75,041,902 Liabilities: Policyholder deposits (Deposit-type contracts) 321,830,976 — — 321,830,976 321,830,976 December 31, 2019 Fair Value Measurements Using Quoted Prices in Active Markets Significant Other Significant for Identical Assets Observable Unobservable Carrying and Liabilities Inputs Inputs Fair Amount (Level 1) (Level 2) (Level 3) Value Assets: Policy loans $ 106,014 $ — $ — $ 106,014 $ 106,014 Cash 43,716,205 43,716,205 — — 43,716,205 Liabilities: Policyholder deposits (Deposit-type contracts) 171,168,785 — — 171,168,785 171,168,785
Schedule of Recurring Basis Using Level Three Inputs	Beginning Ending Balance Balance As of Valuation As of December 31, 2019 Additions Sales Allowance June 30, 2020 Assets Policy loans $ 106,014 $ 35,158 $ — $ — $ 141,172 Mortgage loans on real estate, held for investment 13,810,041 39,431,852 2,069,950 — 51,171,943 Other invested assets 2,468,947 7,011,102 5,612,112 (776,973) 3,090,964 Preferred stock 500,000 — — (500,000) — Total Investments $ 16,885,002 $ 46,478,112 $ 7,682,062 $ (1,276,973) $ 54,404,079

Income Tax Matters (Tables)

Income Tax Matters (Tables)	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of deferred tax assets and liabilities	Significant components of the Company’s deferred tax assets and liabilities as of June 30, 2020 and December 31, 2019 are as follows: June 30, 2020 December 31, 2019 Deferred tax assets: Loss carryforwards $ 781,003 $ 436,777 Capitalized costs 195,763 221,918 Stock option granted 9,821 4,566 Unrealized losses on investments 1,679,207 — Policy acquisition costs 3,686,674 1,468,030 Charitable contribution carryforward 1,230 1,020 Property and equipment 23,056 15,508 Benefit reserves 435,780 848,643 Total deferred tax assets 6,812,534 2,996,462 Less valuation allowance (4,789,646) (2,618,741) Total deferred tax assets, net of valuation allowance 2,022,888 377,721 Deferred tax liabilities: Unrealized losses on investments 1,759,153 116,088 Due premiums 78,242 81,789 Intangible assets 147,000 147,000 Policy loans 38,493 32,844 Property and equipment — — Total deferred tax liabilities 2,022,888 377,721 Net deferred tax assets $ — $ —
Schedule of effective tax rate reconciliation	There was income tax expense of $479,513 and $887,429 for the three and six months ended June 30, 2020 and no income tax expense for the three and six months ended June 30, 2019. This differed from the amounts computed by applying the statutory U.S. federal income tax rate of 21% to pretax income, as a result of the following: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Computed expected income tax benefit $ (3,372,144) $ (174,689) $ 1,238,695 $ (488,643) Increase (reduction) in income taxes resulting from: Meals, entertainment and political contributions 319 3,053 2,930 5,636 Change in valuation allowance 4,169,372 32,209 21,682 266,607 COD Interest — 177,563 — 177,563 Other (318,034) (38,136) (375,878) 38,837 Subtotal of increases 3,851,657 174,689 (351,266) 488,643 Tax expense (benefit) $ 479,513 $ — $ 887,429 $ —

Reinsurance (Tables)

Reinsurance (Tables)	6 Months Ended
	Jun. 30, 2020
Summary of significant reinsurance amounts	A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of June 30, 2020 and December 31, 2019 and for the three and six months ended June 30, 2020 and 2019 is as follows: June 30, 2020 December 31, 2019 Balance sheets: Benefit and claim reserves ceded $ 43,355,941 $ 30,579,524 Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Statements of comprehensive (loss) income: Premiums ceded $ 221,435 $ 249,200 $ 453,108 $ 522,301 Benefits ceded 15,792 38,326 47,078 116,029 Commissions ceded 2,613 3,666 5,721 6,580
Schedule of significant reinsurance balances	The following table provides a summary of the significant reinsurance balances recoverable on paid and unpaid policy claims by third party reinsurers except for a reinsurance with Unified as it was accounted for as discontinued operations: Recoverable on Total Amount Recoverable Recoverable Benefit Ceded Recoverable AM Best on Paid on Unpaid Reserves/Deposit- Due from Reinsurer Rating Losses Losses type Contracts Premiums Reinsurer Ironbound Reinsurance Company Limited NR $ — $ — $ 7,323,291 $ — $ 7,323,291 Optimum Re Insurance Company A — — 518,692 — 518,692 Sagicor Life Insurance Company A- — 210,295 11,224,669 277,015 11,157,949 SDA Annuity & Life Re NR — — 3,995,718 — 3,995,718 US Alliance Life and Security Company NR — — 20,418,664 58,373 20,360,291 $ — $ 210,295 $ 43,481,034 $ 335,388 $ 43,355,941
Schedule of Ceded Commission Earned [Table Text Block]	Six months ended June 30, 2020 Reinsurer Gross Ceding Commission Expense (1) Interest on Ceding Commissions Earned Ironbound Reinsurance Company Limited $ 688,110 $ 679,076 $ 110,022 $ 188,826 SDA Annuity & Life Re 868,729 1,628,850 29,527 18,341 US Alliance Life and Security Company (2) 2,272,784 4,009,102 7,711 10,465 $ 3,829,623 $ 6,317,028 $ 147,260 $ 217,632 (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees. (2) US Alliance Life and Security Company funds withheld and funds paid treaty
Schedule Of Ceded Commission Deferred Table Text Block	The tables below shows the ceding commissions deferred on each reinsurance transaction on a GAAP basis: June 30, 2020 December 31, 2019 Reinsurer Effective Date Deferred Ceding Commission Deferred Ceding Commission US Alliance Life and Security Company (1) September 2017 $ 834,487 $ 858,675 Unified Life Insurance Company (1) July 2018 304,007 582,894 Ironbound Reinsurance Company Limited (2) July 2019 5,752,126 5,060,359 SDA Annuity & Life Re (2) November 2019 2,156,377 — US Alliance Life and Security Company (3) April 2020 2,440,087 1,076,267 $ 11,487,084 $ 7,578,195 (1) These reinsurance transactions on our legacy business received gross ceding commissions on the effective dates of the transaction. The difference between the statutory net adjusted reserves and the GAAP adjusted reserves plus the elimination of DAC and value of business acquired (“VOBA”) related to these businesses reduces the gross ceding commission with the remaining deferred and amortized over the lifetime of the blocks of business. (2) These reinsurance transactions include the ceding commissions and expense allowances which are accounted for as described in (1). (1) US Alliance Life and Security Company funds withheld and funds paid treaty.
American Life & Security Corp [Member]
Schedule of Ceded Commission Earned [Table Text Block]	Six months ended June 30, 2020 Reinsurer Effective Date Ceding Expense (1) Ironbound Reinsurance Company Limited July 2019 $ 688,110 $ 679,076 SDA Annuity & Life Re November 2019 868,729 1,628,850 US Alliance Life and Security Company (2) April 2020 2,272,784 4,009,102 $ 3,829,623 $ 6,317,028 (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees. (2) US Alliance Life and Security Company funds withheld and funds paid treaty

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Summary of information regarding loans	Shares of Common Loan Stock into which Principal Loans Were Date of Loan Amount Converted June 28, 2018 $ 500,000 24,284,825 June 28, 2018 100,000 4,856,965 October 10, 2018 1,000,000 48,569,650 December 7, 2018 17,500,000 849,968,875 Total $ 19,100,000 927,680,315

Long Term Incentive Plan (Table

Long Term Incentive Plan (Tables)	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of remaining non-vested shares	Shares Non-vested at December 31, 2019 8,950,000 Vested 100,000 Non-vested at June 30, 2020 8,850,000

Deposit-Type Contracts (Tables)

Deposit-Type Contracts (Tables)	6 Months Ended
	Jun. 30, 2020
Deposit Type Contracts [Abstract]
Schedule of deposit-type contracts	June 30, 2020 December 31, 2019 Beginning balance $ 171,168,785 $ 7,234,927 US Alliance 398,623 657,986 Deposits received 147,486,013 161,392,700 Investment earnings (includes embedded derivative) 3,436,491 2,043,762 Withdrawals (658,936) (160,590) Ending balance $ 321,830,976 $ 171,168,785

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information as of June 30, 2020 regarding our leases is as follows: As of As of Leases Classification June 30, 2020 December 31, 2019 Assets Noncurrent: Finance Office and other equipment, net of accumulated depreciation and amortization $ — $ 2,913 Operating Operating lease right-of-use assets 409,165 470,132 Total leased assets $ 409,165 $ 473,045 Liabilities Current: Finance lease Finance lease liabilities $ — $ 1,860 Noncurrent: Operating lease Operating lease liabilities 460,791 524,248 Total leased liabilities $ 460,791 $ 526,108
Schedule of Components of Lease Expenses	Our operating and finance leases expenses for the three and six months ended June 30, 2020 and 2019, were as follows: Three months ended June 30, Six months ended June 30, Leases Classification 2020 2019 2020 2019 Operating General and administrative expense $ 2,485 $ 3,344 $ 4,577 $ 7,109 Finance lease cost: Amortization expense — 2,914 2,913 5,827 Interest expense — 111 111 222
Schedule of Finance and Operating Leases Minimum	Minimum contractual obligations for our operating leases at June 30, 2020, are as follows: Operating Leases 2020 (excluding six months ended June 30, 2020) $ 90,167 2021 164,081 2022 156,608 2023 161,674 2024 13,508 Total remaining lease payments $ 586,038
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Cash payments Operating cash flows from operating leases $ (190) $ (190) $ (1,035) $ 42 Operating cash flows from finance leases 1,164 1,164 4,657 2,328 Financing cash flows from finance leases — (111) (111) (222)
Schedule of Weighted-average Remaining Lease Terms and Discount Rate	The weighted average remaining lease terms and discount rate of our finance and operating leases was follows: As of As of June 30, 2020 December 31, 2019 Weighted Average Remaining Lease Term Finance lease — 3 months Operating lease 2 years 2.5 years Weighted Average Discount Rate Finance lease Operating lease

Nature of Operations and Basi_3

Nature of Operations and Basis of Presentation (Narrative) (Details)	Jun. 15, 2020USD ($)	May 12, 2020USD ($)	Apr. 24, 2020USD ($)$ / sharesshares	Mar. 11, 2020	Mar. 01, 2020	Jul. 25, 2019	Jun. 18, 2019USD ($)shares	Jun. 18, 2019USD ($)shares	Jun. 30, 2020USD ($)$ / sharesshares	Jun. 30, 2019USD ($)$ / sharesshares	Jun. 30, 2020USD ($)segmentproductitemplan$ / sharesshares	Jun. 30, 2019USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares	Jun. 30, 2020GBP (£)shares	Jun. 30, 2020USD ($)$ / sharesshares	May 09, 2019shares	Apr. 02, 2019	May 09, 2018shares
Ownership percentage acquired														49.00%	49.00%
Common stock shares | shares			115,827,004
Share Price | $ / shares			$ 0.045
Proceeds from Issuance of Common Stock			$ 5,227,000
Number of segments | segment											1
Valuation allowances on mortgage loans															$ 0
Outstanding remaining lease payments on non-performing lease															3,400,000
Valuation allowance on leased assets															776,973
Valuation allowance on investment in preferred stock of the non-affiliated company															500,000
Preferred stock													$ 500,000
Notes receivable															5,488,101
Valuation allowance on policy loans															0
Cash equivalents													$ 0		0
Cash held in custody accounts														£ 400,000	$ 500,000
Number of custody accounts											$ 2
Number of reinsurance agreements | item											4
Number of third party reinsurers | item											4
Number of related party reinsurer | item											1
Number of reinsurers having funds withheld or modified coinsurance provisions | item											3
Preferred stock, shares authorized (in shares) | shares													10,000,000	10,000,000	10,000,000
Common stock par value | $ / shares													$ 0.001		$ 0.001
Common stock, shares authorized | shares													1,970,000,000	1,970,000,000	1,970,000,000	1,970,000,000		1,970,000,000
Common stock, shares issued (in shares) | shares													1,023,408,553	1,361,557,779	1,361,557,779
Common stock, shares outstanding (in shares) | shares													1,023,408,553	1,361,557,779	1,361,557,779
Basic earnings per share | $ / shares									$ (0.013)	$ (0.004)	$ 0.004	$ (0.020)
Basic earnings per share, excluding embedded derivative gain | $ / shares											$ (0.002)
Weighted average number of shares outstanding, Basic (in shares) | shares									1,272,367,873	220,781,744	1,147,888,213	122,374,461
Weighted average number of shares outstanding, Diluted (in shares) | shares									1,273,314,893	221,728,764	1,148,835,232	123,321,481
Depreciation									$ 11,996	$ 9,506	$ 22,312	$ 19,320
Accumulated depreciation													$ 975,480		$ 997,793
Unrealized gains (losses) on investments											(7,277,449)		$ 2,291,413
Unrealized gains (losses) related to change in foreign currency exchange rate											(260,000)
Embedded derivative gains											8,500,000
Unrealized loss											$ 8,500,000
Preferred Stock
Preferred stock										$ 500,000		$ 500,000
Xenith
Conversion amount							$ 19,100,000	$ 19,100,000
Series C Preferred Stock [Member]
Conversion rate							0.02
Series C Preferred Stock [Member] | Xenith
Stated dividend rate								8.00%
Voting common stock | shares								72,854,474
Series C Preferred Stock [Member] | Xenith1Member
Voting common stock | shares							1,500,000
Conversion rate							0.02
Non-voting common shares [Member]
Common stock, shares authorized | shares													20,000,000	20,000,000	20,000,000
Furniture and Fixtures [Member] | Minimum
Useful life											3 years
Furniture and Fixtures [Member] | Maximum
Useful life											7 years
Computer Software, Intangible Asset [Member]
Useful life											3 years
1505 Capital LLC
Ownership percentage acquired	49.00%																51.00%
Business Combination, Consideration Transferred	$ 500,000
American Life [Member]
Contributions made			$ 5,000,000
Unrealized gains (losses) on investments											$ 1,631,474
FW, Modco Agreement
Percentage of indemnity coinsurance				0.00%	30.00%	95.00%
Securities Purchase Agreement | Crestline Assurance Holdings LLC
Common stock shares | shares			222,222,222
Share Price | $ / shares			$ 0.045
Proceeds from Issuance of Common Stock			$ 10,000,000
Common stock par value | $ / shares			$ 0.001
Seneca Re Agreement
Contributions made		$ 300,000
Ownership percentage acquired		100.00%
SRC1
Contributions made											3,000,000
SRC1 | American Life [Member]
Unrealized gains (losses) on investments											$ 1,087,700
American Life Product [Member]
Number of products | product											5
Multi Year Guaranteed Annuity
Number of products | product											2
Multi Year Guaranteed Annuity | Master Letter Agreement | Crestline Assurance Holdings LLC
Percentage of indemnity coinsurance			25.00%
Fixed Index Annuity
Number of products | product											1
Number of bonus plans | plan											2
Fixed Index Annuity | Master Letter Agreement | Crestline Assurance Holdings LLC
Percentage of indemnity coinsurance			40.00%

New Accounting Standards (Detai

New Accounting Standards (Details)	Jun. 30, 2020USD ($)item	Dec. 31, 2019USD ($)
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Number of operating leases | item	3
Number of finance leases | item	1
Total leased assets	$ 409,165	$ 470,132
Total leased assets	409,165	473,045
Total leased liabilities	$ 460,791	$ 526,108

Assets and Liabilities Held f_3

Assets and Liabilities Held for Sale (Narrative) (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Discontinued Operations and Disposal Groups [Abstract]
Percentage of indemnity reinsurance basis of liabilities and obligations	100.00%
Ceding commission	$ 3,500,000
Percentage of indemnity policies	89.00%

Assets and Liabilities Held f_4

Assets and Liabilities Held for Sale (Schedule of Assets and Liabilities Discontinued Operations) (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Carrying amounts of major classes of assets included as part of discontinued operations:
Policy loans	$ 42,129	$ 50,387
Reinsurance recoverables	1,077,317	3,569,849
Premiums receivable	22,933	33,512
Total assets held for sale in the Consolidated Balance Sheet	1,142,379	3,653,748
Carrying amounts of major classes of liabilities included as part of discontinued operations:
Benefit reserves	620,941	1,403,953
Policy claims	24,231	28,203
Deposit-type contracts	486,486	2,209,195
Advance premiums	2,273	2,226
Accounts payable and accrued expenses	7,847	3,290
Total liabilities held for sale in the Consolidated Balance Sheet	$ 1,141,778	$ 3,646,867

Non-controlling Interest (Detai

Non-controlling Interest (Details) - USD ($)	Jun. 15, 2020	Apr. 02, 2019	Jun. 30, 2020
Noncontrolling Interest [Line Items]
Ownership percentage acquired			49.00%
Valuation Allowance on Investment in Preferred Stock of the Non-affiliated Company			$ 500,000
1505 Capital LLC
Noncontrolling Interest [Line Items]
Business Combination, Consideration Transferred	$ 500,000
1505 Capital LLC
Noncontrolling Interest [Line Items]
Ownership percentage acquired	49.00%	51.00%
Capital units acquired, purchase price		$ 1
Business Combination, Consideration Transferred	$ 500,000

Investments (Schedule of Amorti

Investments (Schedule of Amortized Cost and Estimated Fair Value of Investments) (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)security	Dec. 31, 2019USD ($)
Cost or Amortized Cost	$ 206,950,851	$ 116,676,312
Total fixed maturities	200,110,287	117,241,861
Mortgage loans on real estate, held for investment	51,171,943	13,810,041
Derivatives, Cost	3,134,820	490,831
Derivatives, Gross Unrealized Gains	588,201	87,684
Derivatives, Gross Unrealized Losses	494,919	3,221
Derivatives instruments (See Note 6)	3,228,102	575,294
Investment escrow		3,899,986
Other invested assets, Cost	3,090,964
Other invested assets	3,090,964	2,468,947
Preferred stock		500,000
Notes receivable	5,488,101
Policy Loans	141,172	106,014
Total investments, Amortized Cost	269,977,851
Investments, Gross Unrealized Gains	3,338,967
Investments, Gross Unrealized Losses	10,086,249
Investments, Fair Value Disclosure	$ 263,230,569	138,496,129
Number of securities Exceeded | security	2
Fixed Maturities
Cost or Amortized Cost	$ 206,950,851	116,676,312
Gross Unrealized Gains	2,750,766	1,163,397
Gross Unrealized Losses	9,591,330	597,848
Total fixed maturities	200,110,287	117,241,861
Total investments, Amortized Cost		137,952,131
Investments, Gross Unrealized Gains		1,251,081
Investments, Gross Unrealized Losses		601,069
Investments, Fair Value Disclosure		138,602,143
U.S. government obligations | Fixed Maturities
Cost or Amortized Cost	1,730,793	2,091,710
Gross Unrealized Gains	105,936	7,073
Gross Unrealized Losses		17,559
Total fixed maturities	1,836,729	2,081,224
Mortgage-back securities | Fixed Maturities
Cost or Amortized Cost	721,970	819,678
Gross Unrealized Gains	6,445
Gross Unrealized Losses	6,646	21,070
Total fixed maturities	721,769	798,608
Asset-backed securities | Fixed Maturities
Cost or Amortized Cost	174,795,977	95,006,241
Gross Unrealized Gains	1,459,587	646,335
Gross Unrealized Losses	8,347,320	404,752
Total fixed maturities	167,908,244	95,247,824
States and Political Subdivisions - general obligations | Fixed Maturities
Cost or Amortized Cost	238,408	240,494
Gross Unrealized Gains	11,671	8,788
Total fixed maturities	250,079	249,282
States and Political Subdivisions - special revenue | Fixed Maturities
Cost or Amortized Cost	2,924,809	25,112
Gross Unrealized Gains	540,547	179
Total fixed maturities	3,465,356	25,291
Trust preferred | Fixed Maturities
Cost or Amortized Cost	2,218,142
Gross Unrealized Losses	93,664
Total fixed maturities	2,124,478
Corporate | Fixed Maturities
Cost or Amortized Cost	24,320,752	18,493,077
Gross Unrealized Gains	626,580	501,022
Gross Unrealized Losses	1,143,700	154,467
Total fixed maturities	$ 23,803,632	$ 18,839,632

Investments (Schedule of Amor_2

Investments (Schedule of Amortized Cost, Fair Value, Credit Rating) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Amortized Cost	$ 206,950,851	$ 116,676,312
States and Political Subdivisions - general obligations | US States and Political Subdivisions Debt Securities
Amortized Cost	238,408
Estimated Fair Value	250,079
States and Political Subdivisions - general obligations | US States and Political Subdivisions Debt Securities | Bellingham, Washington
Amortized Cost	107,128
Estimated Fair Value	$ 118,028
Credit Rating	AA+
States and Political Subdivisions - general obligations | US States and Political Subdivisions Debt Securities | Longview, Washington
Amortized Cost	$ 131,280
Estimated Fair Value	$ 132,051
Credit Rating	Aa3

Investments (Schedule of Unreal

Investments (Schedule of Unrealized Loss of Securities) (Details) - Fixed Maturities	Jun. 30, 2020USD ($)security	Dec. 31, 2019USD ($)security
Estimated Fair Value, Total	$ 139,974,244	$ 46,788,419
Gross Unrealized Loss, Total	$ 9,591,330	$ 597,848
Number of Securities, Total | security	96	72
U.S. government obligations
Estimated Fair Value, Less than 12 months		$ 1,518,772
Gross Unrealized Loss, Less than 12 months		$ 14,935
Number of Securities, Less than 12 months | security		9
Estimated Fair value, Greater than 12 months		$ 353,834
Gross Unrealized Loss, Greater than 12 months		$ 2,624
Number of Securities, Greater than 12 months | security		2
Asset-backed securities
Estimated Fair Value, Less than 12 months	$ 115,541,627	$ 39,114,732
Gross Unrealized Loss, Less than 12 months	$ 7,989,266	$ 404,752
Number of Securities, Less than 12 months | security	66	26
Estimated Fair value, Greater than 12 months	$ 12,329,718
Gross Unrealized Loss, Greater than 12 months	$ 358,054
Number of Securities, Greater than 12 months | security	6
Mortgage-back securities
Estimated Fair Value, Less than 12 months	$ 72,535	$ 160,010
Gross Unrealized Loss, Less than 12 months	$ 392	$ 4,844
Number of Securities, Less than 12 months | security	3	4
Estimated Fair value, Greater than 12 months	$ 234,404	$ 638,598
Gross Unrealized Loss, Greater than 12 months	$ 6,254	$ 16,226
Number of Securities, Greater than 12 months | security	5	14
Trust preferred
Estimated Fair Value, Less than 12 months	$ 2,124,478
Gross Unrealized Loss, Less than 12 months	$ 93,664
Number of Securities, Less than 12 months | security	1
Corporate
Estimated Fair Value, Less than 12 months	$ 9,025,918	$ 2,800,815
Gross Unrealized Loss, Less than 12 months	$ 892,092	$ 13,618
Number of Securities, Less than 12 months | security	11	4
Estimated Fair value, Greater than 12 months	$ 645,564	$ 2,201,658
Gross Unrealized Loss, Greater than 12 months	$ 251,608	$ 140,849
Number of Securities, Greater than 12 months | security	4	13

Investments (Schedule of Fixed

Investments (Schedule of Fixed Maturities) (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Marketable Securities [Abstract]
Amortized Cost, Due in one year or less	$ 201,929
Amortized Cost, Due after one year through five years	10,172,450
Amortized Cost, Due after five years through ten years	52,847,487
Amortized Cost, Due after ten years through twenty years	129,141,495
Amortized Cost, Due after twenty years	14,587,490
Amortized Cost	206,950,851	$ 116,676,312
Estimated Fair Value, Due in one year or less	202,962
Estimated Fair Value, Due after one year through five years	10,355,681
Estimated Fair Value, Due after five years through ten years	52,184,902
Estimated Fair Value, Due after ten years through twenty years	122,598,167
Estimated Fair Value, Due after twenty years	14,768,575
Estimated Fair Value	$ 200,110,287	$ 117,241,861

Investments (Schedule of Invest

Investments (Schedule of Investments Measured at Fair Value on a Recurring Basis) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Carrying Value	$ 51,171,943	$ 13,810,041
Interest Income Accrued	1,098,356	312,028
Interest Income Earned	1,685,117	352,959
Industrial
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Carrying Value	500,000	500,000
Interest Income Accrued	2,871
Interest Income Earned	16,340	15,889
Commercial mortgage loan - multi-family
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Carrying Value	48,612,870	11,320,924
Interest Income Accrued	890,188	116,860
Interest Income Earned	1,570,056	329,684
Other.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Carrying Value	2,059,073	1,989,117
Interest Income Accrued	205,297	195,168
Interest Income Earned	98,721	7,386
Fair Value, Inputs, Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Carrying Value	$ 51,171,943	$ 13,810,041

Investments (Components of Net

Investments (Components of Net Investment Income) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Gross investment income	$ (128,209)	$ 451,915	$ 1,041,929	$ 648,850
Less: refund received on investment expenses (investment expenses)	(269,633)	(3,900)	(198,793)	(9,840)
Investment income, net of expenses	(397,842)	448,015	843,136	639,010
Fixed Maturities
Gross investment income	$ (128,209)	435,427	$ 1,041,929	631,118
Mortgage loans
Gross investment income		9,656		9,656
Other
Gross investment income		$ 6,832		$ 8,076

Investments (Narrative) (Detail

Investments (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)item	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)item	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Amortized cost	$ 3,559,321		$ 3,559,321		$ 3,611,292
Fair value	3,739,690		3,739,690		$ 3,612,844
Proceeds from sales of available-for-sale investments	14,556,095	$ 2,040,640	18,409,038	$ 2,406,165
Gross realized gain	1,038,822	7,382	1,188,370	9,006
Gross realized losses	6,575	$ 7,127	$ 31,407	$ 13,148
percentage of total investments having a longer duration			80.00%
Outstanding remaining lease payments on non-performing lease	3,400,000		$ 3,400,000
Valuation allowance on leased assets	$ 776,973		$ 776,973
Number of treaties with reinsurance companies | item	4		4
Number of treaties with third-party reinsurance companies | item	3		3
Number of treaties with related party reinsurance companies | item	1		1
Minimum
period of maturity of debt instruments			10 years
Maximum
period of maturity of debt instruments			20 years

Derivative Instruments (Details

Derivative Instruments (Details)	Jun. 30, 2020USD ($)contractitem	Dec. 31, 2019USD ($)contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Estimated Fair Value	$ 3,228,102	$ 575,294
Number of treaties with reinsurance companies | item	4
Number of treaties with third-party reinsurance companies | item	3
Number of treaties with related party reinsurance companies | item	1
Derivatives not designated as hedge | Equity options
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 86,093,121	$ 9,698,863
Number of Contracts | contract	108	24
Estimated Fair Value	$ 3,228,102	$ 575,294
Derivatives not designated as hedge | Equity-indexed embedded derivative
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 107,296,291	$ 10,720,324
Number of Contracts | contract	724	108
Estimated Fair Value	$ 3,038,675	$ 576,634

Derivative Instruments - Funds

Derivative Instruments - Funds Withheld Provision (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amounts recoverable from reinsurers	$ 43,355,941	$ 30,579,524
SDA Annuity and Life Re
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amounts recoverable from reinsurers	3,995,718
US Alliance Life and Security Company [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amounts recoverable from reinsurers	20,360,291
Funds With held Provision Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	152,839,614
Market value of assets	144,367,577
Total return swap value	8,472,037
Amounts recoverable from reinsurers	8,472,037
Funds With held Provision Agreement | Ironbound Reinsurance Company Limited
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	99,749,714
Market value of assets	93,088,880
Total return swap value	6,660,834
Funds With held Provision Agreement | SDA Annuity and Life Re
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	21,116,007
Market value of assets	20,006,611
Total return swap value	1,109,396
Funds With held Provision Agreement | US Alliance Life and Security Company [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	31,973,893
Market value of assets	31,272,086
Total return swap value	$ 701,807

Fair Values of Financial Inst_3

Fair Values of Financial Instruments (Schedule of Financial Instruments at Fair Value Measured on a Recurring Basis) (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 200,110,287	$ 117,241,861
Valuation Allowance on Investment in Preferred Stock of the Non-affiliated Company	500,000
Mortgage loans on real estate, held for investment	51,171,943	13,810,041
Derivatives instruments (See Note 6)	3,228,102	575,294
Investment escrow		3,899,986
Other Investments	3,090,964	2,468,947
Preferred stock		500,000
Notes receivable	5,488,101
Policy Loans	141,172	106,014
Policy loans	141,172	106,014
Investments, Fair Value Disclosure	263,230,569	138,496,129
Embedded derivative for equity-indexed contracts	3,038,675	576,634
Transfers between levels	0	0
Valuation allowance on investment in preferred stock of the non-affiliated company	500,000
Outstanding remaining lease payments on non-performing lease	3,400,000
Valuation allowance on leased assets	776,973
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Allowance on Investment in Preferred Stock of the Non-affiliated Company	500,000
Derivatives instruments (See Note 6)	3,228,102	575,294
Investment escrow		3,899,986
Notes receivable	5,488,101
Investments, Fair Value Disclosure	208,826,490	121,717,141
Embedded derivative for equity-indexed contracts	3,038,675	576,634
Valuation allowance on investment in preferred stock of the non-affiliated company	500,000
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage loans on real estate, held for investment	51,171,943	13,810,041
Other Investments	3,090,964	2,468,947
Preferred stock		500,000
Policy Loans	141,172	106,014
Investments, Fair Value Disclosure	54,404,079	16,885,002
Outstanding remaining lease payments on non-performing lease	3,400,000
Valuation allowance on leased assets	776,973
Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock				$ 500,000
Preferred Stock | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Preferred stock			$ 500,000
Fixed Maturities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	200,110,287	117,241,861
Investments, Fair Value Disclosure		138,602,143
Fixed Maturities | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	200,110,287	117,241,861
Fixed Maturities | U.S. government obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	1,836,729	2,081,224
Fixed Maturities | U.S. government obligations | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	1,836,729	2,081,224
Fixed Maturities | Mortgage-back securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	721,769	798,608
Fixed Maturities | Mortgage-back securities | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	721,769	798,608
Fixed Maturities | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	167,908,244	95,247,824
Fixed Maturities | Asset-backed securities | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	167,908,244	95,247,824
Fixed Maturities | States and Political Subdivisions - general obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	250,079	249,282
Fixed Maturities | States and Political Subdivisions - general obligations | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	250,079	249,282
Fixed Maturities | States and Political Subdivisions - special revenue
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	3,465,356	25,291
Fixed Maturities | States and Political Subdivisions - special revenue | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	3,465,356	25,291
Fixed Maturities | Trust preferred
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	2,124,478
Fixed Maturities | Trust preferred | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	2,124,478
Fixed Maturities | Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	23,803,632	18,839,632
Fixed Maturities | Corporate | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 23,803,632	$ 18,839,632

Fair Values of Financial Inst_4

Fair Values of Financial Instruments (Schedule of Financial Assets and Liabilities at Fair Value) (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Assets:
Cash	$ 75,041,902	$ 43,716,205
Fair Value, Inputs, Level 1
Assets:
Cash	75,041,902	43,716,205
Fair Value, Inputs, Level 3
Assets:
Policy loans	141,172	106,014
Liabilities:
Policyholder deposits (Deposit-type contracts)	321,830,976	171,168,785
Carrying Amount
Assets:
Policy loans	141,172	106,014
Cash	75,041,902	43,716,205
Liabilities:
Policyholder deposits (Deposit-type contracts)	321,830,976	171,168,785
Fair Value
Assets:
Policy loans	141,172	106,014
Cash	75,041,902	43,716,205
Liabilities:
Policyholder deposits (Deposit-type contracts)	$ 321,830,976	$ 171,168,785

Fair Values of Financial Inst_5

Fair Values of Financial Instruments (Recurring Basis Level 3) (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Beginning Balance	$ 16,885,002
Additions	46,478,112
Sales	7,682,062
Valuation Allowance	(1,276,973)
Ending Balance	54,404,079
Policy loans.
Beginning Balance	106,014
Additions	35,158
Ending Balance	141,172
Mortgage loans on real estate, held for investment
Beginning Balance	13,810,041
Additions	39,431,852
Sales	2,069,950
Ending Balance	51,171,943
Other invested assets
Beginning Balance	2,468,947
Additions	7,011,102
Sales	5,612,112
Valuation Allowance	(776,973)
Ending Balance	3,090,964
Preferred Stock
Beginning Balance	500,000
Valuation Allowance	$ (500,000)

Income Tax Matters (Schedule of

Income Tax Matters (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Deferred tax assets:
Loss carryforwards	$ 781,003	$ 436,777
Capitalized costs	195,763	221,918
Stock option granted	9,821	4,566
Unrealized losses on investments	1,679,207
Policy acquisition costs	3,686,674	1,468,030
Charitable contribution carryforward	1,230	1,020
Property and equipment	23,056	15,508
Benefit reserves	435,780	848,643
Total deferred tax assets	6,812,534	2,996,462
Less valuation allowance	(4,789,646)	(2,618,741)
Total deferred tax assets, net of valuation allowance	2,022,888	377,721
Deferred tax liabilities:
Unrealized losses on investments	1,759,153	116,088
Due premiums	78,242	81,789
Intangible assets	147,000	147,000
Policy loans	38,493	32,844
Total deferred tax liabilities	$ 2,022,888	$ 377,721

Income Tax Matters (Schedule _2

Income Tax Matters (Schedule of Effective Tax Rate Reconciliation) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Computed expected income tax benefit	$ (3,372,144)	$ (174,689)	$ 1,238,695	$ (488,643)
Increase (reduction) in income taxes resulting from:
Meals, entertainment and political contributions	319	3,053	2,930	5,636
Change in valuation allowance	4,169,372	32,209	21,682	266,607
COD Interest		177,563		177,563
Other	(318,034)	(38,136)	(375,878)	38,837
Subtotal of increases	3,851,657	174,689	(351,266)	488,643
Tax expense (benefit)	$ 479,513	$ 0	$ 887,429	$ 0

Income Tax Matters (Narrative)

Income Tax Matters (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Jun. 28, 2018
Deferred tax assets, valuation allowance	$ 4,789,646		$ 4,789,646		$ 2,618,741
U.S. federal income tax rate			21.00%
Net operating loss ("NOL") carryforwards	2,741,658		$ 2,741,658			$ 890,636
Percentage of carry forward year limited taxable income			80.00%
Income tax expense	$ 479,513	$ 0	$ 887,429	$ 0
Minimum
Operating Loss Carryforwards, Expiration Dates			Dec. 31, 2024
Maximum
Operating Loss Carryforwards, Expiration Dates			Dec. 31, 2039

Reinsurance (Summary of Signifi

Reinsurance (Summary of Significant Reinsurance Amounts) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Balance sheets:
Amounts recoverable from reinsurers	$ 43,355,941		$ 43,355,941		$ 30,579,524
Statements of comprehensive (loss) income:
Premiums ceded	221,435	$ 249,200	453,108	$ 522,301
Benefits ceded	15,792	38,326	47,078	116,029
Commissions ceded	$ 2,613	$ 3,666	$ 5,721	$ 6,580

Reinsurance (Schedule of Signif

Reinsurance (Schedule of Significant Reinsurance Balances) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Recoverable on Unpaid Losses	$ 210,295
Recoverable on Benefit Reserves/Deposit-type Contracts	43,481,034
Ceded Due Premiums	335,388
Total Amount Recoverable from Reinsurer	$ 43,355,941	$ 30,579,524
Ironbound Reinsurance Company Limited [Member]
AM Best Rating	NR
Recoverable on Benefit Reserves/Deposit-type Contracts	$ 7,323,291
Total Amount Recoverable from Reinsurer	$ 7,323,291
Optimum Reinsurance Company [Member]
AM Best Rating	A
Recoverable on Benefit Reserves/Deposit-type Contracts	$ 518,692
Total Amount Recoverable from Reinsurer	$ 518,692
Sagicor Life Insurance Company [Member]
AM Best Rating	A-
Recoverable on Unpaid Losses	$ 210,295
Recoverable on Benefit Reserves/Deposit-type Contracts	11,224,669
Ceded Due Premiums	277,015
Total Amount Recoverable from Reinsurer	$ 11,157,949
SDA Annuity and Life Re
AM Best Rating	NR
Recoverable on Benefit Reserves/Deposit-type Contracts	$ 3,995,718
Total Amount Recoverable from Reinsurer	$ 3,995,718
US Alliance Life and Security Company [Member]
AM Best Rating	NR
Recoverable on Benefit Reserves/Deposit-type Contracts	$ 20,418,664
Ceded Due Premiums	58,373
Total Amount Recoverable from Reinsurer	$ 20,360,291

Reinsurance (Ceding commissions

Reinsurance (Ceding commissions earned) (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Ceded Commission Earned	$ 3,829,623
Expense Allowances	6,317,028
Ironbound Reinsurance Company Limited [Member]
Ceded Commission Earned	688,110
Expense Allowances	679,076
SDA Annuity and Life Re
Ceded Commission Earned	868,729
Expense Allowances	1,628,850
US Alliance Life and Security Company [Member]
Ceded Commission Earned	2,272,784
Expense Allowances	4,009,102
American Life & Security Corp [Member]
Ceded Commission Earned	3,829,623
Expense Allowances	6,317,028
American Life & Security Corp [Member] | Ironbound Reinsurance Company Limited [Member]
Ceded Commission Earned	688,110
Expense Allowances	679,076
American Life & Security Corp [Member] | SDA Annuity and Life Re
Ceded Commission Earned	868,729
Expense Allowances	1,628,850
American Life & Security Corp [Member] | US Alliance Life and Security Company [Member]
Ceded Commission Earned	2,272,784
Expense Allowances	$ 4,009,102

Reinsurance (Ceding commissio_2

Reinsurance (Ceding commissions deferred) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Ceded Commission Earned	$ 3,829,623
Expense Allowances	6,317,028
Interest On Ceding Commissions	147,260
Earned Ceding Commission	217,632
Deferred Ceding Commission	11,487,084	$ 7,578,195
Ironbound Reinsurance Company Limited [Member]
Ceded Commission Earned	688,110
Expense Allowances	679,076
Interest On Ceding Commissions	110,022
Earned Ceding Commission	188,826
Deferred Ceding Commission	5,752,126	5,060,359
SDA Annuity and Life Re
Ceded Commission Earned	868,729
Expense Allowances	1,628,850
Interest On Ceding Commissions	29,527
Earned Ceding Commission	18,341
Deferred Ceding Commission	2,156,377
US Alliance Life and Security Company [Member]
Ceded Commission Earned	2,272,784
Expense Allowances	4,009,102
Interest On Ceding Commissions	7,711
Earned Ceding Commission	10,465
Deferred Ceding Commission	834,487	858,675
US Alliance Life and Security Company(3)
Deferred Ceding Commission	2,440,087	1,076,267
Unified Life Insurance Company [Member]
Deferred Ceding Commission	$ 304,007	$ 582,894

Reinsurance (Narrative) (Detail

Reinsurance (Narrative) (Details) - USD ($)	Apr. 15, 2020	Apr. 01, 2020	Mar. 20, 2020	Mar. 11, 2020	Mar. 10, 2020	Mar. 01, 2020	Nov. 07, 2019	Jul. 25, 2019	Jun. 30, 2019	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Jul. 23, 2020
Amounts recoverable from reinsurers										$ 43,355,941			$ 43,355,941		$ 30,579,524
Unrealized gains (losses)													7,277,449		(2,291,413)
Embedded derivative gains													8,500,000
Embedded derivative losses													8,500,000
Unrealized gains (losses) associated with assets of third party reinsurers that are retained by American Life													1,700,000
Net premium income										30			51	$ (2,479)
Amount owned										19,100,000			19,100,000
Deferred coinsurance ceding commission													3,908,889	(1,838,878)
Contingency reserves										0			0		$ 0
COVID 19
Unrealized gains (losses)													6,800,000
Embedded derivative gains													8,500,000
Embedded derivative losses													8,500,000
Unrealized gains (losses) associated with assets of third party reinsurers that are retained by American Life													1,700,000
Net premium income													147,500,000
FW, Modco Agreement
Net premium income									$ 45,005,536
Gross premiums income									46,568,321
Gross Commission paid									1,562,786
Net statutory reserves									47,271,267
Percentage of indemnity coinsurance				0.00%		30.00%		95.00%
FW, Modco Agreement | Funds Withheld Account [Member]
Initial settlement									24,928,934
Amount owned									2,015,688			2,015,688		2,015,688
Adjusted reserves cash									26,944,622
FW, Modco Agreement | Modco Deposit Account [Member]
Initial settlement									16,619,289
Amount owned									1,343,792			$ 1,343,792		$ 1,343,792
Adjusted reserves cash									$ 17,963,081
FW, Modco SDA Agreement
Net premium income							$ 3,970,509
Net statutory reserves							3,986,411
FW, Modco SDA Agreement | Funds Withheld Account [Member]
Initial settlement							2,256,802
Amount owned							135,044
Adjusted reserves cash							2,391,847
FW, Modco SDA Agreement | Modco Deposit Account [Member]
Initial settlement							1,504,535
Amount owned							90,029
Adjusted reserves cash							$ 1,594,564
US Alliance Agreement
Net premium income	$ 13,542,325
Net statutory reserves	14,706,862
US Alliance Agreement | Funds Withheld Account [Member]
Initial settlement	12,729,785
Seneca Re Agreement | MYGA | Subsequent Event
Ceded percentage of certain liabilities																25.00%
Seneca Re Agreement | FIA | Subsequent Event
Ceded percentage of certain liabilities																40.00%
Ironbound Reinsurance Company Limited [Member]
Amounts recoverable from reinsurers										7,323,291			7,323,291
Optimum Reinsurance Company [Member]
Amounts recoverable from reinsurers										518,692			518,692
Sagicor Life Insurance Company [Member]
Amounts recoverable from reinsurers										11,157,949			11,157,949
SDA Annuity and Life Re
Amounts recoverable from reinsurers										3,995,718			$ 3,995,718
SDA Annuity and Life Re | FW, Modco SDA Agreement | MYGA
Percentage of indemnity coinsurance							5.00%
SDA Annuity and Life Re | FW, Modco SDA Agreement | FIA
Percentage of indemnity coinsurance													30.00%		95.00%
American Life and Security National Life Insurance [Member] | US Alliance Agreement
Initial settlement	812,539
US Alliance Life and Security Company [Member]
Amounts recoverable from reinsurers										$ 20,360,291			$ 20,360,291
US Alliance Life and Security Company [Member] | US Alliance Agreement
Initial settlement	$ 5,000,000
US Alliance Life and Security Company [Member] | US Alliance Agreement | MYGA
Percentage of indemnity coinsurance		25.00%	66.50%		45.50%
US Alliance Life and Security Company [Member] | US Alliance Agreement | FIA
Percentage of indemnity coinsurance		40.00%									49.00%

Notes Payable (Narrative) (Deta

Notes Payable (Narrative) (Details)	May 09, 2018USD ($)itemshares	Dec. 31, 2018USD ($)$ / shares	Jun. 30, 2020USD ($)shares	Dec. 31, 2019shares	Jun. 18, 2019USD ($)	May 09, 2019shares
Common stock, shares authorized | shares	1,970,000,000		1,970,000,000	1,970,000,000		1,970,000,000
Vespoint LLC | Xenith
Ownership (as a percent)	100.00%
Xenith
Proceeds From Issuance of Debt	$ 600,000
Debt term	10 years
Debt instrument, stated interest rate (as a percent)	8.00%
Additional per annum interest due at maturity (as a percent)	4.00%
Number of notes | item	2
Accrued interest					$ 845,536
Debt issuance costs	$ 161,000
Notes outstanding			$ 0
Xenith | Note One [Member]
Proceeds From Issuance of Debt	500,000
Xenith | Note Two [Member]
Proceeds From Issuance of Debt	$ 100,000
Xenith | Additional Loan [Member]
Proceeds From Issuance of Debt		$ 18,500,000
Conversion price | $ / shares		$ 0.02
Xenith | Additional Loan [Member] | Maximum
Borrowing capacity		$ 23,500,000

Notes Payable (Summary of Infor

Notes Payable (Summary of Information Regarding Loans) (Details) - USD ($)	Jun. 18, 2019	Jun. 30, 2020
Loan Principal Amount		$ 19,100,000
Shares of Common Stock into which Loan Were Converted	927,680,315
June 28, 2018 [Member]
Loan Principal Amount	$ 500,000
Shares of Common Stock into which Loan Were Converted	24,284,825
June 28, 2018 [Member]
Loan Principal Amount	$ 100,000
Shares of Common Stock into which Loan Were Converted	4,856,965
October 10, 2018 [Member]
Loan Principal Amount	$ 1,000,000
Shares of Common Stock into which Loan Were Converted	48,569,650
December 7, 2018 [Member]
Loan Principal Amount	$ 17,500,000
Shares of Common Stock into which Loan Were Converted	849,968,875

Long Term Incentive Plan (Detai

Long Term Incentive Plan (Details)	Jul. 19, 2019$ / sharesshares	Jun. 30, 2020USD ($)shares	Jun. 30, 2020USD ($)director$ / sharesshares	Dec. 31, 2019shares
Share based compensation | $			$ 25,022
Stock Options
Grants, weighted average exercise price (in dollars per share) | $ / shares			$ 0.05
Grant date fair value (in dollars per share) | $ / shares			$ 0.016
Consideration | $		$ 143,200	$ 143,200
Risk free interest rate (as a percent)			1.84%
Time to maturity			10 years
Volatility rate (as a percent)			200.00%
Share based compensation | $		$ 13,089	$ 25,022
Number of directors | director			2
Forfeited (in shares)			0	0
Schedule of remaining non-vested shares
Vested (in shares)			100,000
Minimum | Stock Options
Vesting period		2 years
Maximum | Stock Options
Vesting period			4 years
2019 LTIP | Stock Options
Granted (in shares)	8,950,000
Grants, weighted average exercise price (in dollars per share) | $ / shares	$ 0.05
Grant date fair value (in dollars per share) | $ / shares	$ 0.016
Exercisable period	10 years
Schedule of remaining non-vested shares
Non-vested at beginning			8,950,000
Vested (in shares)			100,000
Non-vested at ending		8,850,000	8,850,000	8,950,000
Exercisable after July 17, 2021 | 2019 LTIP | Stock Options
Vesting percentage	33.30%
Exercisable after July 17, 2023 | 2019 LTIP | Stock Options
Vesting percentage	66.60%

Deposit-Type Contracts (Details

Deposit-Type Contracts (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Deposit Type Contracts [Abstract]
Beginning balance	$ 171,168,785	$ 7,234,927
US Alliance	398,623	657,986
Deposits received	147,486,013	161,392,700
Investment earnings (includes embedded derivative)	3,436,491	2,043,762
Withdrawals	(658,936)	(160,590)
Ending balance	$ 321,830,976	$ 171,168,785

Leases (Schedule of Supplementa

Leases (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Noncurrent:
Finance lease (Office and other equipment, net of accumulated depreciation and amortization)		$ 2,913
Operating lease right-of-use assets	$ 409,165	470,132
Total leased assets	409,165	473,045
Current:
Finance lease		1,860
Noncurrent:
Operating lease	460,791	524,248
Total leased liabilities	$ 460,791	$ 526,108

Leases (Schedule of Components

Leases (Schedule of Components of Leases Expenses) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating lease cost (General and administrative expense)	$ 2,485	$ 3,344	$ 4,577	$ 7,109
Finance lease cost:
Amortization of right of use assets		2,914	2,913	5,827
Interest on lease liabilities		$ 111	$ 111	$ 222

Leases (Schedule of Finance and

Leases (Schedule of Finance and Operating Leases Mature) (Details)	Jun. 30, 2020USD ($)
Operating Leases
2020 (excluding six months ended March 31, 2020)	$ 90,167
2021	164,081
2022	156,608
2023	161,674
2024	13,508
Total remaining lease payments	$ 586,038

Leases (Schedule of Supplemen_2

Leases (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Cash payments
Operating cash flows from operating leases	$ (190)	$ (190)	$ (1,035)	$ 42
Operating cash flows from finance leases	$ 1,164	1,164	4,657	2,328
Financing cash flows from finance leases		$ (111)	$ (111)	$ (222)

Leases (Schedule of Weighted Av

Leases (Schedule of Weighted Average Lease Term And Discount Rate) (Details)	Jun. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Weighted Average Remaining Term - Finance lease	0 years	3 months
Weighted Average Remaining Term - Operating lease	2 years	2 years 6 months
Weighted Average Discount Rate - Finance lease	0.00%	6.00%
Weighted Average Discount Rate - Operating lease	8.00%	8.00%

Statutory Net Income and Surp_2

Statutory Net Income and Surplus (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Mar. 11, 2020	Mar. 01, 2020	Jan. 01, 2020
US Alliance Agreement
Ceded Premiums Written	$ 42,463,587
Reserve requirement ceded	46,862,126
SRC1
Ceded Premiums Written	24,075,481
Reserve requirement ceded	26,396,718
SRC2
Ceded Premiums Written	26,638,405
Reserve requirement ceded	$ 29,148,027
Ironbound Reinsurance Company Limited | FW, Modco Agreement
Ceded percentage	95.00%			0.00%	30.00%
Ceded Premiums Written	$ 17,738,468		$ 128,760,161
Reserve requirement ceded	21,746,098		139,093,289
SDA Annuity and Life Re | FW, Modco Agreement
Ceded Premiums Written	14,981,255		18,984,045
Reserve requirement ceded	16,715,264		$ 20,822,364
SDA Annuity and Life Re | FW, Modco Agreement | Multi Year Guaranteed Annuity
Ceded percentage			5.00%
SDA Annuity and Life Re | FW, Modco Agreement | Fixed Index Annuity
Ceded percentage			95.00%			30.00%
Nebraska Department of Insurance | American Life and Security Corporation
Statutory Net Loss	2,724,713	$ (2,978,004)
Capital and Surplus	25,775,640		$ 19,507,325
Nebraska Department of Insurance | American Life and Security Corporation | Multi Year Guaranteed Annuity
Annuity sales	58,965,873	$ 38,238,880
Annuity sales pending	8,575,802
Nebraska Department of Insurance | American Life and Security Corporation | Fixed Index Annuity
Annuity sales	88,520,140
Annuity sales pending	$ 51,206,249

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Jul. 23, 2020
Subsequent Event [Line Items]
Unrealized gains (losses)				$ 7,277,449		$ (2,291,413)
Embedded derivative gains				8,500,000
Embedded derivative losses				8,500,000
Unrealized gains (losses) associated with assets of third party reinsurers that are retained by American Life				1,700,000
Outstanding remaining lease payments on non-performing lease		$ 3,400,000		3,400,000
Valuation allowance on leased assets		776,973		776,973
Net premium income		30		51	$ (2,479)
Subsequent Event | Seneca Re Agreement | MYGA
Subsequent Event [Line Items]
Ceded percentage of certain liabilities							25.00%
Subsequent Event | Seneca Re Agreement | FIA
Subsequent Event [Line Items]
Ceded percentage of certain liabilities							40.00%
AOCI
Subsequent Event [Line Items]
Unrealized gains (losses)				7,277,449		$ (2,291,413)
COVID 19
Subsequent Event [Line Items]
Unrealized gains (losses)				6,800,000
Embedded derivative gains				8,500,000
Embedded derivative losses				8,500,000
Unrealized gains (losses) associated with assets of third party reinsurers that are retained by American Life				1,700,000
Percentage of unrealized losses	80.00%
Net premium income				147,500,000
Pending applications		$ 59,800,000		$ 59,800,000
COVID 19 | Gain (Loss) on Investments
Subsequent Event [Line Items]
Increase in derivative assets	$ 8,800

Subsequent Events - Amendment (

Subsequent Events - Amendment (Details)	Jul. 14, 2020$ / sharesshares	Jun. 30, 2020$ / sharesshares	Dec. 31, 2019$ / sharesshares	May 09, 2019shares	May 09, 2018shares
Subsequent Event [Line Items]
Authorized capital stock		1,970,000,000	1,970,000,000	1,970,000,000	1,970,000,000
Common stock par value | $ / shares		$ 0.001	$ 0.001
Preferred common stock		10,000,000	10,000,000
Subsequent Event
Subsequent Event [Line Items]
Authorized capital stock	22,000,000
Common stock par value | $ / shares	$ 0.001
Preferred common stock	2,000,000
Preferred stock, par value | $ / shares	$ 0.001
Reverse stock split ratio	500
Voting common share | Subsequent Event
Subsequent Event [Line Items]
Authorized capital stock	20,000,000
Non-voting common shares [Member]
Subsequent Event [Line Items]
Authorized capital stock		20,000,000	20,000,000
Non-voting common shares [Member] | Subsequent Event
Subsequent Event [Line Items]
Authorized capital stock	2,000,000