Midwest Holding (MDWT) 10-Q 16 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 01, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Entity Registrant Name	MIDWEST HOLDING INC.
Title of 12(g) Security	Voting Common Stock, $0.001 par value
Trading Symbol	MDWT
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		2,718,967
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000355379
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Assets
Investments, available for sale, at fair value fixed maturities	$ 250,542,950	$ 117,241,861
Mortgage loans on real estate, held for investment	61,464,515	13,810,041
Derivatives instruments (See Note 5)	7,664,006	575,294
Other invested assets	14,808,870	2,468,947
Preferred stock		500,000
Investment escrow		3,899,986
Notes receivable	5,516,302
Policy loans	147,309	106,014
Total investments	340,143,952	138,602,143
Cash and cash equivalents	136,431,785	43,716,205
Deferred acquisition costs, net	6,398,870
Premiums receivable	356,613	355,959
Accrued investment income	4,946,936	1,511,200
Reinsurance recoverables (See Note7)	42,091,115	30,579,524
Intangible assets	700,000	700,000
Property and equipment, net	91,822	85,395
Operating lease right of use assets	378,682	470,132
Other assets	4,006,709	241,580
Assets associated with business held for sale (See Note 2)	1,102,777	3,653,748
Total assets	536,649,261	219,915,886
Liabilities:
Benefit reserves	16,433,533	16,319,912
Policy claims	98,736	225,228
Deposit-type contracts (See note 11)	455,429,384	171,168,785
Advance premiums	723	261
Deferred gain on reinsurance transactions	15,739,264	7,578,195
Lease liabilities (See Note 12):
Finance lease		1,860
Operating lease	428,851	524,248
Other liabilities	22,329,494	6,291,782
Liabilities associated with business held for sale (See Note 2)	1,111,113	3,646,867
Total liabilities	511,571,098	205,757,138
Contingencies and Commitments (See Note 15)
Stockholders’ Equity:
Preferred stock, $0.001 par value; authorized 2,000,000 shares; no shares issued and outstanding as of September 30, 2020 or December 31, 2019
Voting common stock, $0.001 par value; authroized 20,000,000 shares; 2,718,967 shares issued and outstanding as of September 30, 2020 and 2,043,470 as od December 31, 2019; 2,000,000 shares non-voting common stock authoried; not shares issued and outstanding	2,719	2,042
Additional paid-in capital	69,114,515	54,494,355
Treasury stock	(175,333)
Accumulated deficit	(41,607,833)	(41,081,710)
Accumulated other comprehensive (loss) income	(2,255,905)	619,584
Total Midwest Holding Inc.'s stockholders' equity	25,078,163	14,034,271
Noncontrolling interest		124,477
Total stockholders' equity	25,078,163	14,158,748
Total liabilities and stockholders' equity	$ 536,649,261	$ 219,915,886

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Assets
Cost or Amortized Cost	$ 252,836,485	$ 116,676,312
Stockholders' Equity:
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	2,718,967	2,042,670
Common stock, shares outstanding	2,718,967	2,042,670
Non Voting Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Non Voting Common Stock, Shares Authorized	0	0
Non Voting Common Stock, Shares Issued	0	0
Non Voting Common Stock, Shares Outstanding	0	0
Non-voting common shares [Member]
Stockholders' Equity:
Common stock, shares authorized	2,000,000	2,000,000

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues
Premiums	$ (27)	$ 2,327	$ 24	$ (152)
Investment income, net of expenses	434,201	(308,100)	1,277,337	330,910
Net realized (losses) gains on investments (See Note 4)	(1,951,034)	12,532	7,829,105	9,315
Amortization of deferred gain on reinsurance	293,456	613,079	814,163	2,465,678
Other revenue	707,147	132,298	1,493,252	214,633
Total revenues	(516,257)	452,136	11,413,881	3,020,384
Expenses:
Interest credited	380,676	(208,292)	463,826	42,895
Benefits	(2,817)		(5,904)	1,872
Increase in benefit reserves		34,500		34,500
Amortization of deferred acquisition costs	235,282	66,638	376,179	88,503
Salaries and benefits	1,443,775	667,634	3,623,605	1,782,708
Other operating expenses	1,706,388	1,393,014	5,337,188	4,898,134
Total expenses	3,763,304	1,953,494	9,794,894	6,848,612
(Loss) gain from continuing operations before taxes	(4,279,561)	(1,501,358)	1,618,987	(3,828,228)
Income tax expense (See Note 10)	(1,257,681)	(114,642)	(2,145,110)	(114,642)
Net loss	(5,537,242)	(1,616,000)	(526,123)	(3,942,870)
Less: Gain attributable to noncontrolling interest		(46,814)		(46,814)
Net loss	(5,537,242)	(1,662,814)	(526,123)	(3,989,684)
Comprehensive income (loss):
Unrealized gains on investments arising during period, net of tax	2,450,927	512,773	4,953,616	2,223,929
Unrealized losses on foreign currency	406,254
Less: reclassification adjustment for net realized losses (gains) on investments	1,951,034	(12,532)	(7,829,105)	(9,315)
Other comprehensive income (loss)	4,808,215	500,241	(2,875,489)	2,214,614
Comprehensive (loss):	$ (729,027)	$ (1,115,759)	$ (3,401,612)	$ (1,775,070)
Net loss per common share
Basic	$ (2.04)	$ (0.81)	$ (0.22)	$ (4.71)
Diluted	$ (2)	$ (0.80)	$ (0.21)	$ (4.49)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Treasury Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	AOCI	Noncontrolling Interest.	Total
Balance at Dec. 31, 2018		$ 41	$ 33,029,075	$ (35,348,052)	$ (1,818,014)		$ (4,136,950)
Net loss income				(5,733,658)			(5,733,658)
Xenith note interest waived			845,536				845,536
Xenith note conversion		1,855	19,098,145				19,100,000
Class C preferred stock conversion		146	1,499,854				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		2,042	54,494,355	(41,081,710)	619,584	124,477	14,158,748
Net loss income				(526,123)			(526,123)
Capital raise, net of $285,468 related expenses		677	14,940,856				14,941,533
Reverse stock split fractions retired	$ (175,333)						(175,333)
Employee stock options			54,827				54,827
Purchase of remaining 49% of 1505 Capital LLC			(375,523)			$ (124,477)	(500,000)
Unrealized gains (losses) on investments					(2,875,489)		(2,875,489)
Balance at Sep. 30, 2020	$ (175,333)	$ 2,719	$ 69,114,515	$ (41,607,833)	$ (2,255,905)		$ 25,078,163

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical)	9 Months Ended
	Sep. 30, 2020USD ($)
Issuance costs	$ 285,468
1505 Capital LLC
Ownership percentage acquired	49.00%

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities:
Net loss	$ (526,123)	$ (3,989,684)
Adjustments to arrive at cash provided by operating activities:
Net premium and discount on investments	(18,425)	80,563
Depreciation and amortization	44,491	44,820
Stock options	29,805
Amortization of deferred acquisition costs	376,179	88,503
Deferred acquisition costs capitalized	(6,784,482)	(2,395,710)
Net realized (gains) losses on investments	(7,829,105)	13,654
Deferred reinsurance ceding commission	8,161,069	2,821,255
Notes payable interest accrued		845,536
Changes in operating assets and liabilities:
Reinsurance recoverables	(7,142,030)	(1,002,794)
Interest and dividends due and accrued	(3,435,736)	(554,489)
Premiums receivable	(654)	733
Policy liabilities	6,429,321	76,877,920
Other assets and liabilities	13,537,739	6,170,613
Other assets and liabilities - discontinued operations	15,217	(117,392)
Net cash provided by operating activities	2,857,266	78,883,528
Securities available for sale:
Purchases	(158,933,312)	(50,253,728)
Proceeds from sale or maturity	24,050,257	2,488,387
Mortgage loans on real estate, held for investment purchases
Purchases	(52,502,957)	(10,098,478)
Proceeds from sale	8,918,066
Purchases of derivatives	(5,064,964)
Other invested assets
Purchases	(26,787,844)	(2,976,375)
Proceeds from sale	13,670,948
Preferred stock purchase		(500,000)
Notes receivable	(5,516,302)
Net change in policy loans	(41,295)	941
Net purchases of property and equipment	(44,263)	(17,349)
Net cash used in investing activities	(202,251,666)	(61,356,602)
Cash Flows from Financing Activities:
Finance lease	(111)	(333)
Capital contribution	14,941,533
Repurchase of common stock	(150,311)
Net transfers to noncontrolling interest	(500,000)	48,661
Receipts on deposit-type contracts	279,537,157	4,088,640
Withdrawals on deposit-type contracts	(1,718,288)	(126,852)
Net cash provided by financing activities	292,109,980	4,010,116
Net increase in cash and cash equivalents	92,715,580	21,537,042
Cash and cash equivalents:
Beginning	43,716,205	2,832,567
Ending	$ 136,431,785	24,369,609
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	9 Months Ended
	Sep. 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 redomesticated from the State of Nebraska to the state of Delaware on August 27, 2020. The Company is in the life and annuity insurance business and operates through its wholly owned subsidiaries, American Life & Security Corp. (“American Life”), 1505 Capital LLC (“1505 Capital”). and through its sponsored captive reinsurance company, Seneca Reinsurance Company, LLC (“Seneca Re”). American Life is a Nebraska-domiciled life insurance company that is currently licensed to sell, underwrite, and market life insurance and annuity products in 20 states and the District of Columbia. In June 2018, the Company underwent a change in control as a result of the closing of a Loan, Convertible Preferred Stock and Convertible Senior Secured Note Purchase Agreement (the “Xenith Agreement”) with a then non-affiliated third party, Xenith Holdings LLC (“Xenith”). Xenith was a wholly controlled subsidiary of Vespoint LLC (“Vespoint”), which was also the manager of Xenith. Vespoint is owned and managed by investment funds controlled by Michael Minnich and A. Michael Salem. Pursuant to the Xenith Agreement, the Company issued Series C Preferred Stock and convertible senior secured notes to Xenith between June and December 2018. Of the funds received from Xenith, we contributed $20.5 million to American Life through capital contributions. At the closing of the Xenith Agreement, Messrs. Minnich and Salem were subsequently appointed as executive officers of American Life and later as our Executive Chairman and Chief Executive Officer, respectively, in 2019. Seneca Re is a Vermont-domiciled sponsored captive reinsurance company that we established on March 12, 2020 for the purpose of reinsuring various types of risks on behalf of American Life and third party capital providers through special purpose reinsurance entities. As of September 30, 2020, Seneca Re had Protected Cell-2020-01 (“SRC1”) and Cell-2020-02 (“SRC2”). Midwest contributed $3,000,000 to capitalize SRC1 and Crestline Assurance Holdings LLC (“Crestline”), a Delaware limited liability company, contributed $40.0 million to capitalize to SRC2. Crestline owns approximately 16% of our voting common stock. 1505 Capital a Delaware limited liability company of which we acquired majority ownership in 2019, provides financial and investment advisory and management services. On June 15, 2020, we acquired all of the remaining 49% minority ownership of 1505 Capital. On April 24, 2020, Midwest entered into a Securities Purchase Agreement with Crestline, Xenith, and Vespoint. Pursuant to the Agreement, Crestline purchased 444,444 shares of Midwest’s voting common stock, par value $0.001 per share (“common stock”), at a purchase price of $22.50 per share for $10.0 million. Also, effective as of April 24, 2020, in a separate transaction, Midwest sold 231,655 shares of its common stock to various investors at $22.50 per share for $5.227 million. Under the Crestline agreement, Midwest contributed $5.0 million of the net proceeds to American Life and $3.3 million to capitalize Seneca Re and its first protected cell. The remaining proceeds are to be used for general working capital and corporate purposes. Also effective April 24, 2020, American Life entered into a three-year master letter agreement with Seneca Re and Crestline regarding an annuity reinsurance and related asset management arrangement, whereby Crestline agreed to provide reinsurance funding for a quota share percentage of 25% of the liabilities of its multi-year guaranteed annuities (“MYGA”) issued by American Life and a quota share percentage of 40% for American Life’s fixed indexed annuity (“FIA”) products. On August 10, 2020, Midwest filed Articles of Amendment of Amended and Restated Articles of Incorporation (“Amendment”) that changed the total number of shares that the Company is authorized to issue to 22,000,000 shares of common stock, of which 20,000,000 were designated as voting common stock with a par value of $0.001 per share and 2,000,000 designated as non-voting common stock with a par value of $0.001 per share. The Amendment also provides for 2,000,000 shares of preferred stock with a par value of $0.001 per share. The Amendment provided that upon effectiveness, each 500 shares of common stock either issued or outstanding would be converted into one share of voting common stock through a reverse stock split. The Amendment was effective as of August 27, 2020. Fractional shares were not issued in connection with the reverse stock split but were paid out in cash. The Company paid approximately $175,000 for those fractional shares and is now holding treasury stock represented by that amount. Outstanding shares as of September 30, 2020 were 2,718,967 and as restated for December 31, 2019 were 2,042,670. All prior periods disclosed in this 10-Q have been restated to reflect the reverse stock split per share amounts. 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, also with the Seneca Re’s protected cells SRC1 and SRC2. The Company’s legacy 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 consolidated financial statements, which include American Life, 1505 Capital and Seneca Re, 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 nine months ended September 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 Fixed Maturities All fixed maturities, which include bonds and collateralized loan obligations (“CLOs”), 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 period presented 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 nine months ended September 30, 2020. Investment income consists of interest and dividends which are recognized on an accrual basis and amortization of premiums and discounts. These are recorded net of investment expenses. Certain available-for-sales investments are maintained as collateral under funds withheld and modified coinsurance agreements but the assets and total returns or losses on the asset portfolios belong to the third party reinsurers. American Life has treaties with several 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. The unrealized gains/losses on those investments are passed through to the third party reinsurers as either a realized gain or loss on the consolidated statement of income. 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 September 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 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 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 will 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 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 FIA 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 September 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 $3.6 million. The Company established a valuation allowance on the asset of $776,973 and will continue to monitor the value of 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. As of September 30, 2020, the Company determined the valuation allowance established was still adequate. 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. As of September 30, 2020, the Company determined the valuation allowance established was still adequate. 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 September 30, 2020, the Company did not hold any cash related to investments in escrow. Notes receivable The Company held in notes receivable as of September 30, 2020, a note of $5,516,302 between American Life and a third party that was rated, cusip 16326#AA7, by a nationally recognized statistical rating organization (“NRSRO”). This note is being carried at the fair market value. The cost equals 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 September 30, 2020 and December 31, 2019, the Company had no cash equivalents. At September 30, 2020, the Company held approximately 605,506 in Pound Sterling (“GBP”) in several of our custody accounts. The USD equivalent held was approximately $783,000. As of September 30, 2020, the Company realized losses of approximately $87,300 related to the change in the foreign currency exchange rate of the GBP that was recorded in realized (losses) gains on investments on the income statement. 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 DAC 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 nine months ended September 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 7 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, a captive reinsurer, in early 2020. On April 15, 2020, Midwest entered into an operating agreement with Seneca Re. Seneca Re currently has Protected Cell 2020-01 (“SRC1”) which is consolidated in our financial statements and Cell 2020-01 (“SRC2”) which is not consolidated in our financial statements due to Midwest not having a beneficial ownership in SRC2. 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 requires 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 the assets pursuant to guidelines adopted by us that are consistent with state investment statutes and reinsurance regulations. American Life currently has treaties with several third party reinsurers and one related party reinsurer. Of the third party reinsurers, they 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 5 to our consolidated financial statements above. As a result of price decreases in 2020, assets carried as investments on American Life’s financial statements for the third party reinsurers contained unrealized losses of approximately $4.4 million as of September 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 $4.4 million. We account for this unrealized loss pass-through by recording equivalent realized gains on our income statement and in an 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 $12,613 and $9,652 for the three months ended September 30, 2020 and 2019, respectively. Depreciation expense totaled $34,926 and $28,972 for the nine months ended September 30, 2020 and 2019, respectively. Accumulated depreciation totaled $1,010,406 and $975,480 as of September 30, 2020 and December 31, 2019, respectively. Maintenance and repairs are expensed as incurred. Replacements and improvements which extend the useful life of an 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 nine months ended September 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 DAC. 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 FW and Modco 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 5 below. As a result of market price decreases in 2020, the investments carried by American Life for the third party reinsurers contained unrealized gains and losses of approximately $4.4 million as of September 30, 2020. The terms of the contracts with the third party reinsurers provided that unrealized gains or 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 Income (Loss). Accordingly, for the nine months ended September 30, 2020, such gains were $4.4 million. The remaining investments retained by American Life had unrealized gains of approximately $2.1 million that included unrealized gains from assets held for SRC1. Basic earnings per share for the nine months ended September 30, 2020 was ($0.22) which included the aforementioned gain of $4.4 million. Basic loss per share for the nine months ended September 30, 2020 without the aforementioned gain was ($1.98). Common and preferred stock and earnings (loss) per share As mentioned above under “Nature of Operations”, the Company has 22,000,000 shares of common stock authorized of which 20,000,000 voting common shares are authorized; 2,000,000 non-voting common shares are authorized, and 2,000,000 preferred shares are 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 into 145,709 shares of voting common stock at the conversion rate of approximately $10.29 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,” and, after the reverse stock split, the Company had 2,718,967 and 2,042,670 voting common shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively. 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 September 30, 2020 and 2019 was 2,718,967 and

Assets and Liabilities Held for

Assets and Liabilities Held for Sale	9 Months Ended
	Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Assets and Liabilities Held for Sale	Note 2. 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”), an unaffiliated 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 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 September 30, 2020, 89% of the indemnity policies were converted to assumptive policies thereby releasing American Life from all of 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 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 is recognized in our income statement. Our balance sheets were required to be restated under GAAP 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 September 30, 2020 and as of December 31, 2019: As of September 30, As of December 31, 2020 2019 Carrying amounts of major classes of assets included as part of discontinued operations: Policy loans $ 35,302 $ 50,387 Reinsurance recoverables 1,043,985 3,569,849 Premiums receivable 23,490 33,512 Total assets held for sale in the Consolidated Balance Sheets $ 1,102,777 $ 3,653,748 Carrying amounts of major classes of liabilities included as part of discontinued operations: Benefit reserves $ 594,603 $ 1,403,953 Policy claims 35,302 28,203 Deposit-type contracts 474,943 2,209,195 Advance premiums 593 2,226 Accounts payable and accrued expenses 5,672 3,290 Total liabilities held for sale in the Consolidated Balance Sheets $ 1,111,113 $ 3,646,867

Non-controlling Interest

Non-controlling Interest	9 Months Ended
	Sep. 30, 2020
Noncontrolling Interest [Abstract]
Non-controlling Interest	Note 3. 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 on 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	9 Months Ended
	Sep. 30, 2020
Marketable Securities [Abstract]
Investments	Note 4. Investments The cost or amortized cost and estimated fair value of investments as of September 30, 2020 and December 31, 2019 were as follows: Cost or Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value September 30, 2020: Fixed maturities: U.S. government obligations $ 2,007,031 $ 104,703 $ 6,712 $ 2,105,022 Mortgage-backed securities 371,273 7,042 179 378,136 Asset-backed securities 205,589,130 2,235,333 5,382,412 202,442,051 States and political subdivisions -- general obligations 237,339 11,409 — 248,748 States and political subdivisions -- special revenue 5,629,266 565,843 4,930 6,190,179 Trust preferred 2,218,142 — 55,183 2,162,959 Corporate 36,784,304 1,070,998 839,447 37,015,855 Total fixed maturities $ 252,836,485 $ 3,995,328 $ 6,288,863 $ 250,542,950 Mortgage loans on real estate, held for investment 61,464,515 — — 61,464,515 Derivatives 5,698,117 2,395,084 429,195 7,664,006 Other invested assets 14,808,870 — — 14,808,870 Notes receivable 5,516,302 — — 5,516,302 Policy loans 147,309 — — 147,309 $ 340,471,598 $ 6,390,412 $ 6,718,058 $ 340,143,952 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 September 30, 2020. The amortized cost, fair value, credit ratings, and description of each security is as follows: Amortized Estimated Cost Fair Value Credit Rating September 30, 2020: Fixed maturities: States and political subdivisions -- general obligations Bellingham, Washington $ 106,829 $ 117,759 AA+ Longview, Washington Refunding 130,510 130,989 Aa3 Total $ 237,339 $ 248,748 The following table summarizes, for all fixed securities in an unrealized loss position at September 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. September 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 $ 35,073 $ 311 1 $ 1,518,772 $ 14,935 9 Asset-backed securities 112,190,271 5,122,847 66 39,114,732 404,752 26 Mortgage-back securities 22,828 179 1 160,010 4,844 4 States and political subdivisions -- special revenue 1,168,610 4,930 3 — — — Trust preferred 2,162,960 55,183 1 — — — Corporate 19,005,716 666,972 24 2,800,815 13,618 4 Greater than 12 months: U.S. government obligations 157,752 6,401 4 353,834 2,624 2 Asset-backed securities 10,592,569 259,565 5 — — — Mortgage-back securities — — — 638,598 16,226 14 Corporate 584,003 172,475 4 2,201,658 140,849 13 Total fixed maturities $ 145,919,782 $ 6,288,863 109 $ 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 market price decreases in 2020, our securities positions resulted in an unrealized loss as of September 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 nine 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. economies 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 CLOs, which typically are illiquid and are intended by us 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. See the discussion above under “Comprehensive income (loss)” in Note 1 regarding unrealized losses on investments that are owned by our reinsurers and the corresponding offset carried as a gain in the associated embedded derivative. The Company purchases and sells equipment leases in its investment portfolio. As of September 30, 2020, the Company owned several leases. An impairment test, as of September 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 $3.6 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 amortized cost and estimated fair value of fixed maturities at September 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 $ 964,295 $ 1,067,733 Due after one year through five years 21,154,753 21,469,752 Due after five years through ten years 76,161,161 76,055,560 Due after ten years through twenty years 134,902,342 131,788,843 Due after twenty years 19,653,934 20,161,062 $ 252,836,485 $ 250,542,950 The Company is required to hold assets on deposit for the benefit of policyholders in accordance with statutory rules and regulations. At September 30, 2020 and December 31, 2019, these required deposits had a total amortized cost of $3,526,609 and $3,611,292 and fair values of $3,714,594 and $3,612,844, respectively. The following table sets forth a composition of mortgage loans and associated interest income as of the dates indicated: Carrying Value Interest Income Interest Income September 30, 2020: Industrial $ 1,250,000 $ 18,236 $ 62,743 Commercial mortgage loan - multi-family 58,195,692 1,634,008 2,199,823 Other 2,018,823 221,136 134,631 Total mortgage loans $ 61,464,515 $ 1,873,380 $ 2,397,197 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 several 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 nine months ended September 30, 2020 and 2019 was as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed maturities $ 322,484 $ (289,015) $ 1,364,414 $ 342,104 Mortgage loans 80,749 68,810 80,749 78,466 Other 62,942 (1,102) 62,942 6,973 Gross investment income 466,175 (221,307) 1,508,105 427,543 Less: investment expense (31,974) (86,793) (230,768) (96,633) Investment income, net of expenses $ 434,201 $ (308,100) $ 1,277,337 $ 330,910 Proceeds for the three months ended September 30, 2020 and 2019 from sales of investments classified as available-for-sale were $5,641,219 and $82,222, respectively. Gross gains of $153,913 and $0 and gross losses of $44,678 and $9,512 were realized on those sales during the three months ended September 30, 2020 and 2019, respectively. Proceeds for the nine months ended September 30, 2020 and 2019 from sales of investments classified as available-for-sale were $24,050,257 and $2,488,387, respectively. Gross gains of $1,342,283 and $9,006 and gross losses of $76,085 and $22,660 were realized on those sales during the nine 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	9 Months Ended
	Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Note 5. 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 hedges under GAAP. As indicated in Notes 1, 4 and 7, American Life has treaties with several reinsurance companies, three third party and one related party, that have FW and Modco 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 reinsurers; 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 September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Location in the Consolidated Derivatives Not Designated Statement of Notional Number of Estimated Notional Number of Estimated as Hedging Instruments Balance Sheets Amount Contracts Fair Value Amount Contracts Fair Value Equity-indexed options Derivatives $ 166,197,790 177 $ 7,664,006 $ 9,698,863 24 $ 575,294 Equity-indexed Deposit-type 204,289,800 1,418 6,359,657 10,720,324 108 576,634 Due to significant market price decreases in 2020, our securities positions resulted in a substantial unrealized loss at September 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 FW provision where the total return on the asset portfolio belongs to the third party reinsurers: September 30, 2020 Book Value of Market Value of Total Return Portfolio Assets Assets Swap Value Ironbound $ 100,442,130 $ 96,516,241 $ 3,925,889 SDA 21,072,864 20,495,383 577,481 US Alliance 36,801,442 36,616,705 184,737 SRC2 23,624,061 23,942,606 (318,545) Total $ 181,940,497 $ 177,570,935 $ 4,369,562 The total return swap value was recorded as an increase in our amounts recoverable from reinsurers of $4,369,562 on our balance sheet and a realized gain of $4,369,562 on our income statement.

Fair Values of Financial Instru

Fair Values of Financial Instruments	9 Months Ended
	Sep. 30, 2020
Investments, All Other Investments [Abstract]
Fair Values of Financial Instruments	Note 6. 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 September 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 September 30, 2020, a note of $5,516,302 between American Life and a third party that was rated by a NRSRO. This note is being carried at 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 September 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 September 30, 2020, the Company owned several leases. An impairment test, as of September 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 $3.5 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 September 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. 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 September 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 September 30, 2020 Financial assets Fixed maturities: U.S. government obligations $ — $ 2,105,022 $ — $ 2,105,022 Mortgage-backed securities — 378,136 — 378,136 Asset-backed securities — 202,442,051 — 202,442,051 States and political subdivisions — general obligations — 248,748 — 248,748 States and political subdivisions — special revenue — 6,190,179 — 6,190,179 Trust preferred — 2,162,959 — 2,162,959 Corporate — 37,015,855 — 37,015,855 Total fixed maturities — 250,542,950 — 250,542,950 Mortgage loans on real estate, held for investment — — 61,464,515 61,464,515 Derivatives — 7,664,006 — 7,664,006 Other invested assets — — 14,808,870 14,808,870 Notes receivable — 5,516,302 — 5,516,302 Policy loans — — 147,309 147,309 Total Investments $ — $ 263,723,258 $ 76,420,694 $ 340,143,952 Financial liabilities Embedded derivative for equity-indexed contracts $ — $ 6,359,657 $ — 6,359,657 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 nine months ended September 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 September 30, 2020 and December 31, 2019, respectively: September 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 $ 147,309 $ — $ — $ 147,309 $ 147,309 Cash 136,431,785 136,431,785 — — 136,431,785 Liabilities: Policyholder deposits (Deposit-type contracts) 455,429,384 — — 455,429,384 455,429,384 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 nine months ended September 30, 2020. Beginning Ending Balance Balance As of Valuation Realized As of December 31, Valuation Gain/ September 30, 2019 Additions Sales Allowance (Loss) 2020 Assets Policy loans $ 106,014 $ 41,295 $ — $ — $ — $ 147,309 Mortgage loans on real estate, held for investment 13,810,041 56,402,943 8,918,066 — 169,597 61,464,515 Other invested assets 2,468,947 26,787,844 13,670,948 (776,973) — 14,808,870 Preferred stock 500,000 — — (500,000) — — Total Investments $ 16,885,002 $ 83,232,082 $ 22,589,014 $ (1,276,973) $ 169,597 $ 76,420,694

Reinsurance

Reinsurance	9 Months Ended
	Sep. 30, 2020
Reinsurance Disclosures [Abstract]
Reinsurance	Note 7. Reinsurance A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of September 30, 2020 and December 31, 2019 and for the three and nine months ended September 30, 2020 and 2019 is as follows: September 30, 2020 December 31, 2019 Balance sheets: Benefit and claim reserves ceded $ 42,091,115 $ 30,579,524 Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Statements of comprehensive (loss) income: Premiums ceded $ 224,594 $ 180,149 $ 677,702 $ 702,450 Benefits ceded 52,388 51,866 99,466 167,895 Commissions ceded 1,874 1,566 7,595 8,146 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 as of September 30, 2020: 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 $ — $ — $ 4,141,644 $ — $ 4,141,644 Optimum Re Insurance Company A — — 524,701 — 524,701 Sagicor Life Insurance Company A- — 89,179 11,200,888 286,028 11,004,042 SDA Annuity & Life Re NR — — 4,094,584 — 4,094,584 SRC2 (Seneca Re protected cell) NR — — 5,108,908 — 5,108,908 US Alliance Life and Security Company NR — — 17,281,555 64,319 17,217,236 $ — $ 89,179 $ 42,352,280 $ 350,347 $ 42,091,115 As discussed in “Note. 1. Nature of Operations and Basis of Presentation – Comprehensive income (loss), American Life has treaties with several third party reinsurers that have FW and Modco provisions. 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 5. As a result of the market price decreases, the assets had unrealized losses of approximately $4.4 million as of September 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 corresponding embedded derivative of $4.4 million. We account for this loss pass through by recording equivalent realized gains on our income statement. 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 FW and Modco basis, an initial 95% quota share of certain liabilities with respect to its MYGA business. Starting on March 1, 2020, the quota share was reduced to 30% and then again on March 11, 2020 the quota share was reduced to 0%. American Life has established two accounts to hold the assets for the FW/Modco Ironbound Agreement, a FW Account and a Modco 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 FW Account and the Modco Account for any shortage in required reserves. The initial settlement included net premium income of $45,005,535 (gross premiums of $46,568,321 minus gross commissions paid of $1,562,786) and net statutory reserves of $44,904,704. The initial settlement for the FW Account was $24,928,934 and for the Modco 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 FW and Modco Agreement (“FW/Modco SDA Agreement”) with SDA Annuity & Life Re (“SDA”), an unaffiliated Cayman Islands-domiciled reinsurance company. Under the FW/Modco SDA Agreement, American Life ceded to SDA, on a FW and Modco basis, 5% quota share of certain liabilities with respect to its MYGA business and an initial 95% quota share of certain liabilities with respect to its FIA through December 31, 2019 and 30% through September 30, 2020. American Life has established two accounts to hold the assets under the FW/Modco Agreement, a FW Account and a Modco 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 FW Account and the SDA Modco 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 FW Account was $2,256,802 and for the Modco Account was $1,504,535 and the reserves required was $2,391,847 and $1,594,564, respectively. The amount owed to the FW Account and the Modco Account from the trust account was $135,044 and $90,029, respectively which was funded at the closing of the SDA transaction. Effective August 25, 2020, the quota share was reduced to 0% for both MYGA and FIA products. Effective April 15, 2020, American Life entered into a FW and Funds Paid Coinsurance Agreement (“US Alliance Agreement”) between American Life and US Alliance Life and Security Company, an unaffiliated Kansas reinsurance company (“US Alliance”) in which American Life ceded to US Alliance, on a FW 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 ceded 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 FW and funds paid coinsurance basis, the quota share increased 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 FW 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 FW 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 FW 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 special purpose entities, or “protected cells” and to conduct any other business or activity that is permitted for sponsored captive insurance companies under Vermont insurance regulations. Seneca Re closed its first Protected Cell 2020-01 (“SRC1”) during May of 2020. Effective July 1, 2020 the FIA policies were increased form 5% to 30% and the MYGA policies stayed the same at 45.5%. SRC1 is consolidated in the Company’s financial statements. Effective April 24, 2020, American life entered into a three-year 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. On July 23, 2020, the Nebraska Department of Insurance (“NDOI”) approved the FW and Modco Agreement with Seneca Incorporated Cell, LLC 2020-02 (“SRC2”) of Seneca Re. The agreement closed on July 27, 2020. Under the agreement, American Life ceded to SRC2, on a FW and Modco 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 FW Account and a Modco Account to hold the assets pursuant to the agreement. The table below shows those ceding commissions and allowances received from the above reinsurers: Nine months ended September 30, 2020 2019 Reinsurer Effective Date Ceding Expense (1) Ceding Expense (1) Ironbound Reinsurance Company Limited July 2019 $ 688,110 $ 690,169 $ 2,640,388 $ 2,575,089 SDA Annuity & Life Re November 2019 1,356,473 2,605,014 — — US Alliance Life and Security Company (2) April 2020 2,279,511 4,016,556 — — SRC2 July 2020 3,837,996 7,247,966 — — $ 8,162,090 $ 14,559,705 $ 2,640,388 $ 2,575,089 (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees. (2) US Alliance Life WF 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 and what was earned on a GAAP basis: Nine months ended September 30, 2020 2019 Reinsurer Gross Ceding Commission Expense (1) Interest on Ceding Commissions Earned Gross Ceding Commission Expense Interest on Ceding Commissions Earned Ironbound Reinsurance Company Limited $ 688,110 $ 690,169 $ 165,607 $ 316,889 $ 2,640,388 $ 2,575,089 $ 57,735 $ 201,772 SDA Annuity & Life Re 1,356,473 2,605,014 47,461 43,856 — — — — US Alliance Life and Security Company (2) 2,279,511 4,016,556 23,171 74,466 — — — — SRC2 3,837,996 7,247,966 13,251 54,838 — — — — $ 8,162,090 $ 14,559,705 $ 249,490 $ 490,049 $ 2,640,388 $ 2,575,089 $ 57,735 $ 201,772 (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees. (2) US Alliance FW and funds paid treaty The tables below shows the ceding commissions deferred on each reinsurance transaction on a GAAP basis: September 30, 2020 December 31, 2019 Reinsurer Effective Date Deferred Ceding Commission Deferred Ceding Commission US Alliance Life and Security Company (1) September 2017 $ 822,393 $ 858,675 Unified Life Insurance Company (1) July 2018 287,189 582,894 Ironbound Reinsurance Company Limited (2) July 2019 5,739,427 5,060,359 SDA Annuity & Life Re (2) November 2019 2,071,427 1,076,267 US Alliance Life and Security Company (3) April 2020 2,508,421 — SRC2 July 2020 4,310,407 — $ 15,739,264 $ 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 reduced 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 FW 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 on a policy by policy basis once the policy has 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 September 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	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Notes Payable	Note 8. 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 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 approximately $10.29 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 3,940,000. All loans were later converted into Midwest voting common stock on June 18, 2019. Any additional borrowing capacity was terminated by written mutual consent on April 24, 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 18, 2019: Shares of Common Stock into which Loan Loans Were Principal Converted Date of Loan Amount As Restated (1) June 28, 2018 $ 500,000 48,570 June 28, 2018 100,000 9,714 October 10, 2018 1,000,000 97,139 December 7, 2018 17,500,000 1,699,938 Total $ 19,100,000 1,855,361 (1) Reflects reverse stock split 500:1 as of August 27, 2020. As of September 30, 2020, Midwest had no notes outstanding to Xenith.

Long-Term Incentive Plan

Long-Term Incentive Plan	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Long-Term Incentive Plan	Note 9. 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 the LTIP are 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, the LTIP 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 the LTIP. All awards are required to be established, approved, and/or granted by the Board. On July 19, 2019, the Company granted stock options for 17,900 shares of voting common stock that are exercisable during a ten-year period after the date of grant at a price of $25.00 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 $8.00 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 $8.00 a share, exercise price of $25.00 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 concentrated ownership nature of the stock before the grant. On July 21, 2020, the Company granted additional stock options for 26,300 shares voting common stock. The Company’s management team considered the stock options as compensation. Using the Black-Scholes Model we determined the consideration should be $333,500. The factors we used to determine the consideration were the following: the weighted average fair market value at grant date of $14.50 a share, exercise price of $25.00 a share, time to maturity of 10 years, annual risk-free interest rate of .55% based upon the 10 year U.S. Treasury rate at grant date, and a 60% volatility based on the valuation that was completed for this stock grant. On September 13, 2020, the Company granted additional stock options for 6,667 to a new employee with an exercise price of $25.00 a share. For the three and nine months ending September 30, 2020, we amortized the consideration, from the three stock option grants above, over the two and four year vesting tranches for an expense and additional paid in capital of $29,805 and $54,827, respectively. On May 1, 2020, 200 stock options became vested by two Board members resigning from the Board. As of the nine months ended September 30, 2020, the outstanding non-vested stock was 47,317 with 3,350 being forfeited. Table below show the remaining non-vested shares of voting common stock as of September 30, 2020: 2020 Stock (1) 2019 Stock (1) Non-vested at December 31, 2019 17,900 17,900 Granted 32,967 - Forfeited (3,350) - Vested (200) Non-vested at September 30, 2020 47,317 17,900 (1) Reflects reverse stock split of 500:1 as of August 27, 2020.

Income Tax Matters

Income Tax Matters	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Tax Matters	Note 10. Income Tax Matters Significant components of the Company’s deferred tax assets and liabilities as of September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, 2019 Deferred tax assets: Loss carryforwards $ 623,258 $ 436,777 Capitalized costs 186,253 221,918 Stock option granted 4,566 4,566 Unrealized losses on investments 475,720 — Policy acquisition costs 750,034 1,468,030 Charitable contribution carryforward 1,020 1,020 Property and equipment 29,896 15,508 Benefit reserves 3,263,165 848,643 Total deferred tax assets 5,333,912 2,996,462 Less valuation allowance (4,631,718) (2,618,741) Total deferred tax assets, net of valuation allowance 702,194 377,721 Deferred tax liabilities: Unrealized losses on investments 314,738 116,088 Due premiums 81,789 81,789 Intangible assets 147,000 147,000 Policy loans 158,667 32,844 Property and equipment — — Total deferred tax liabilities 702,194 377,721 Net deferred tax assets $ — $ — At September 30, 2020 and December 31, 2019, the Company recorded a valuation allowance of $4,631,718 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 $1,257,681 and $2,145,110 for the three and nine months ended September 30, 2020 and $114,642 income tax expense for the three and nine months ended September 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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Computed expected income tax benefit $ (898,708) $ (325,116) $ 339,987 $ (813,759) Increase (reduction) in income taxes resulting from: State tax net of federal benefit 151,680 — 151,680 — Nondeductible expenses 1,171 (1,778) 4,101 3,858 Change in valuation allowance 1,428,358 479,861 1,421,169 746,468 COD Interest — — — 177,563 Other 575,180 (38,325) 228,173 512 Subtotal of increases 2,156,389 439,758 1,805,123 928,401 Tax expense $ 1,257,681 $ 114,642 $ 2,145,110 $ 114,642 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. 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 September 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 September 30, 2020, have expiration dates that range from 2024 through 2039.

Deposit-Type Contracts

Deposit-Type Contracts	9 Months Ended
	Sep. 30, 2020
Separate Accounts Disclosure [Abstract]
Deposit-Type Contracts	Note 11. 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 nine months ended September 30, 2020 and the year ended December 31, 2019: September 30, 2020 December 31, 2019 Beginning balance $ 171,168,785 $ 7,234,927 US Alliance 547,193 657,986 Deposits received 279,537,157 161,392,700 Investment earnings (includes embedded derivative) 5,910,237 2,043,762 Withdrawals (1,718,288) (160,590) Contract charges (15,700) — Ending balance $ 455,429,384 $ 171,168,785

Leases

Leases	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	Note 12. 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 1. Adoption of New Accounting Standards. Supplemental balance sheet information as of September 30, 2020 regarding our leases is as follows: As of As of Leases Classification September 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 378,682 470,132 Total leased assets $ 378,682 $ 473,045 Liabilities Current: Finance lease Finance lease liabilities $ — $ 1,860 Noncurrent: Operating lease Operating lease liabilities 428,851 524,248 Total leased liabilities $ 428,851 $ 526,108 Our operating and finance leases expenses for the three and nine months ended September 30, 2020 and 2019, were as follows: Three months ended September 30, Nine months ended September 30, Leases Classification 2020 2019 2020 2019 Operating General and administrative expense $ 2,077 $ 3,344 $ 6,654 $ 10,453 Finance lease cost: Amortization expense — 2,914 2,913 8,739 Interest expense — 111 111 333 Minimum contractual obligations for our operating leases at September 30, 2020, are as follows: Operating Leases 2020 (excluding nine months ended September 30, 2020) $ 40,345 2021 164,081 2022 156,608 2023 161,674 2024 13,508 Total remaining lease payments $ 536,216 Supplemental cash flow information related to leases was as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Cash payments Operating cash flows from operating leases $ (190) $ (190) $ (1,035) $ (148) Operating cash flows from finance leases 1,164 1,164 4,657 2,328 Financing cash flows from finance leases — (111) (111) (333) The weighted average remaining lease terms and discount rate of our finance and operating leases was follows: As of As of September 30, 2020 December 31, 2019 Weighted Average Remaining Lease Term Finance lease — 3 months Operating lease 1.7 years 2.5 years Weighted Average Discount Rate Finance lease Operating lease

Statutory Net Income and Surplu

Statutory Net Income and Surplus	9 Months Ended
	Sep. 30, 2020
Statutory Net Income and Surplus [Abstract]
Statutory Net Income and Surplus	Note 13. Statutory Net Income and Surplus of American Life American Life and SRC1 are required to prepare statutory financial statements in accordance with statutory accounting practices (“SAP”) prescribed or permitted by the NDOI. SAP primarily differs 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 NDOI, American Life’s statutory net income (loss) for the nine months ended September 30, 2020 and 2019 were $4,541,349 and $(149,247), respectively. Capital and surplus of American Life as of September 30, 2020 and December 31, 2019 was $27,350,123 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, SRC1 and SRC2 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 nine months ended September 30, 2020, the MYGA and FIA sales were $86,502,950 and $193,034,208, respectively, compared to $79,500,172 of MYGA sales and no FIA sales for the nine months ended September 30, 2019. An additional $16,319,659 of MYGA and $40,779,268 of FIA sales were pending as of September 30, 2020. 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 September 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 September 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 than the book value. This was non-admitted for SAP. 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 September 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	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Third Party Administration	Note 14. 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 services were not a significant source of revenue for the nine months ended September 30, 2020.

Contingencies and Commitments

Contingencies and Commitments	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Commitments	Note 15. 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 NDOI granted American Life approval to enter into the FW and Modco Agreement with Ironbound prior to closing of the agreement in July 2019. The NDOI granted American Life approval to enter into the FW and Modco Agreement with SDA prior to closing of the agreement in December 2019. The NDOI granted American Life approval to enter into the FW 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 FW and Modco Agreement with Seneca Re through SRC1 prior to closing of the agreement on May 13, 2020. The NDOI granted American Life approval to enter into the FW and Modco Agreement with Seneca Re through SRC2 prior to closing of the agreement on July 23, 2020.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 16. Subsequent Events COVID-19 We continue to closely monitor developments related to the coronavirus (COVID-19) pandemic to assess any potential adverse impact on our business. Due to the evolving and highly uncertain nature of this event, it currently is not possible provide a longer-term estimate of potential insurance or reinsurance exposure or the indirect effects the pandemic may have on our results of operations, financial condition or liquidity. Management implemented the Company’s business continuity plan in early March 2020 and operated through July 2020 with the majority of employees working remotely. Operations continued as normal despite a sharp increase in sales during the period. We continue to monitor the Centers for Disease Control and Prevention and Nebraska guidelines regarding employee safety. On November 3, 2020, we filed a Registration Statement on Form S-1 with the SEC to sell $50.0 million of our voting common stock during the fourth quarter of 2020. See the Company’s Registration Statement on Form S-1 filed with the SEC on November 3, 2020. The NDOI approved on November 4, 2020, an additional capital contribution of $4.5 million from Midwest to SRC1.

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation (Policies)	9 Months Ended
	Sep. 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 redomesticated from the State of Nebraska to the state of Delaware on August 27, 2020. The Company is in the life and annuity insurance business and operates through its wholly owned subsidiaries, American Life & Security Corp. (“American Life”), 1505 Capital LLC (“1505 Capital”). and through its sponsored captive reinsurance company, Seneca Reinsurance Company, LLC (“Seneca Re”). American Life is a Nebraska-domiciled life insurance company that is currently licensed to sell, underwrite, and market life insurance and annuity products in 20 states and the District of Columbia. In June 2018, the Company underwent a change in control as a result of the closing of a Loan, Convertible Preferred Stock and Convertible Senior Secured Note Purchase Agreement (the “Xenith Agreement”) with a then non-affiliated third party, Xenith Holdings LLC (“Xenith”). Xenith was a wholly controlled subsidiary of Vespoint LLC (“Vespoint”), which was also the manager of Xenith. Vespoint is owned and managed by investment funds controlled by Michael Minnich and A. Michael Salem. Pursuant to the Xenith Agreement, the Company issued Series C Preferred Stock and convertible senior secured notes to Xenith between June and December 2018. Of the funds received from Xenith, we contributed $20.5 million to American Life through capital contributions. At the closing of the Xenith Agreement, Messrs. Minnich and Salem were subsequently appointed as executive officers of American Life and later as our Executive Chairman and Chief Executive Officer, respectively, in 2019. Seneca Re is a Vermont-domiciled sponsored captive reinsurance company that we established on March 12, 2020 for the purpose of reinsuring various types of risks on behalf of American Life and third party capital providers through special purpose reinsurance entities. As of September 30, 2020, Seneca Re had Protected Cell-2020-01 (“SRC1”) and Cell-2020-02 (“SRC2”). Midwest contributed $3,000,000 to capitalize SRC1 and Crestline Assurance Holdings LLC (“Crestline”), a Delaware limited liability company, contributed $40.0 million to capitalize to SRC2. Crestline owns approximately 16% of our voting common stock. 1505 Capital a Delaware limited liability company of which we acquired majority ownership in 2019, provides financial and investment advisory and management services. On June 15, 2020, we acquired all of the remaining 49% minority ownership of 1505 Capital. On April 24, 2020, Midwest entered into a Securities Purchase Agreement with Crestline, Xenith, and Vespoint. Pursuant to the Agreement, Crestline purchased 444,444 shares of Midwest’s voting common stock, par value $0.001 per share (“common stock”), at a purchase price of $22.50 per share for $10.0 million. Also, effective as of April 24, 2020, in a separate transaction, Midwest sold 231,655 shares of its common stock to various investors at $22.50 per share for $5.227 million. Under the Crestline agreement, Midwest contributed $5.0 million of the net proceeds to American Life and $3.3 million to capitalize Seneca Re and its first protected cell. The remaining proceeds are to be used for general working capital and corporate purposes. Also effective April 24, 2020, American Life entered into a three-year master letter agreement with Seneca Re and Crestline regarding an annuity reinsurance and related asset management arrangement, whereby Crestline agreed to provide reinsurance funding for a quota share percentage of 25% of the liabilities of its multi-year guaranteed annuities (“MYGA”) issued by American Life and a quota share percentage of 40% for American Life’s fixed indexed annuity (“FIA”) products. On August 10, 2020, Midwest filed Articles of Amendment of Amended and Restated Articles of Incorporation (“Amendment”) that changed the total number of shares that the Company is authorized to issue to 22,000,000 shares of common stock, of which 20,000,000 were designated as voting common stock with a par value of $0.001 per share and 2,000,000 designated as non-voting common stock with a par value of $0.001 per share. The Amendment also provides for 2,000,000 shares of preferred stock with a par value of $0.001 per share. The Amendment provided that upon effectiveness, each 500 shares of common stock either issued or outstanding would be converted into one share of voting common stock through a reverse stock split. The Amendment was effective as of August 27, 2020. Fractional shares were not issued in connection with the reverse stock split but were paid out in cash. The Company paid approximately $175,000 for those fractional shares and is now holding treasury stock represented by that amount. Outstanding shares as of September 30, 2020 were 2,718,967 and as restated for December 31, 2019 were 2,042,670. All prior periods disclosed in this 10-Q have been restated to reflect the reverse stock split per share amounts. 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, also with the Seneca Re’s protected cells SRC1 and SRC2. The Company’s legacy 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. B
Basis of presentation	Basis of Presentation The consolidated financial statements, which include American Life, 1505 Capital and Seneca Re, 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 nine months ended September 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.
Fixed Maturities	Fixed Maturities All fixed maturities, which include bonds and collateralized loan obligations (“CLOs”), 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 period presented 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 nine months ended September 30, 2020. Investment income consists of interest and dividends which are recognized on an accrual basis and amortization of premiums and discounts. These are recorded net of investment expenses. Certain available-for-sales investments are maintained as collateral under funds withheld and modified coinsurance agreements but the assets and total returns or losses on the asset portfolios belong to the third party reinsurers. American Life has treaties with several 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. The unrealized gains/losses on those investments are passed through to the third party reinsurers as either a realized gain or loss on the consolidated statement of income.
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 September 30, 2020.
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 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 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 will 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 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 FIA 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	Other invested assets The Company purchases and sells equipment leases in its investment portfolio. As of September 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 $3.6 million. The Company established a valuation allowance on the asset of $776,973 and will continue to monitor the value of 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. As of September 30, 2020, the Company determined the valuation allowance established was still adequate.
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. As of September 30, 2020, the Company determined the valuation allowance established was still adequate.
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 September 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 September 30, 2020, a note of $5,516,302 between American Life and a third party that was rated, cusip 16326#AA7, by a nationally recognized statistical rating organization (“NRSRO”). This note is being carried at the fair market value. The cost equals 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 September 30, 2020 and December 31, 2019, the Company had no cash equivalents. At September 30, 2020, the Company held approximately 605,506 in Pound Sterling (“GBP”) in several of our custody accounts. The USD equivalent held was approximately $783,000. As of September 30, 2020, the Company realized losses of approximately $87,300 related to the change in the foreign currency exchange rate of the GBP that was recorded in realized (losses) gains on investments on the income statement.
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 DAC 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 nine months ended September 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 7 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, a captive reinsurer, in early 2020. On April 15, 2020, Midwest entered into an operating agreement with Seneca Re. Seneca Re currently has Protected Cell 2020-01 (“SRC1”) which is consolidated in our financial statements and Cell 2020-01 (“SRC2”) which is not consolidated in our financial statements due to Midwest not having a beneficial ownership in SRC2. 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 requires 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 the assets pursuant to guidelines adopted by us that are consistent with state investment statutes and reinsurance regulations. American Life currently has treaties with several third party reinsurers and one related party reinsurer. Of the third party reinsurers, they 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 5 to our consolidated financial statements above. As a result of price decreases in 2020, assets carried as investments on American Life’s financial statements for the third party reinsurers contained unrealized losses of approximately $4.4 million as of September 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 $4.4 million. We account for this unrealized loss pass-through by recording equivalent realized gains on our income statement and in an 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 $12,613 and $9,652 for the three months ended September 30, 2020 and 2019, respectively. Depreciation expense totaled $34,926 and $28,972 for the nine months ended September 30, 2020 and 2019, respectively. Accumulated depreciation totaled $1,010,406 and $975,480 as of September 30, 2020 and December 31, 2019, respectively. Maintenance and repairs are expensed as incurred. Replacements and improvements which extend the useful life of an 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 nine months ended September 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 DAC. 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 FW and Modco 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 5 below. As a result of market price decreases in 2020, the investments carried by American Life for the third party reinsurers contained unrealized gains and losses of approximately $4.4 million as of September 30, 2020. The terms of the contracts with the third party reinsurers provided that unrealized gains or 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 Income (Loss). Accordingly, for the nine months ended September 30, 2020, such gains were $4.4 million. The remaining investments retained by American Life had unrealized gains of approximately $2.1 million that included unrealized gains from assets held for SRC1. Basic earnings per share for the nine months ended September 30, 2020 was ($0.22) which included the aforementioned gain of $4.4 million. Basic loss per share for the nine months ended September 30, 2020 without the aforementioned gain was ($1.98).
Common and preferred stock and earnings (loss) per share	Common and preferred stock and earnings (loss) per share As mentioned above under “Nature of Operations”, the Company has 22,000,000 shares of common stock authorized of which 20,000,000 voting common shares are authorized; 2,000,000 non-voting common shares are authorized, and 2,000,000 preferred shares are 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 into 145,709 shares of voting common stock at the conversion rate of approximately $10.29 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,” and, after the reverse stock split, the Company had 2,718,967 and 2,042,670 voting common shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively. 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 September 30, 2020 and 2019 was 2,718,967 and 2,042,670, respectively. The weighted average number of shares outstanding during the nine months ended September 30, 2020 and 2019 was 2,435,115 and 847,893, respectively. (Loss) gain per 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, as if all were vested and exercised. The weighted average number of diluted shares outstanding during the three months ended September 30, 2020 and 2019 was 2,766,484 and 2,083,220, respectively. The weighted average number of diluted shares outstanding during the nine months ended September 30, 2020 and 2019 was 2,482,632 and 888,443 shares, respectively.
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 new standard and implemented this standard starting in fiscal year 2020. We reviewed our software enhancements as of September 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 $378,682 and $473,045, and lease liabilities of $428,851 and $526,108 for the nine months ended September 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. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The scope of this amendment is a reaction to the global markets’ planned shift away from using major interbank reference rates, including the London Interbank Offered Rate (LIBOR). This amendment was issued to ease the burden of accounting for contract modifications related to reference rate reform. The amendments in ASU 2020-04 create a new Topic in the Codification, ASC 848, Reference Rate Reform , which contains guidance that is designed to simplify how entities account for contracts that are modified to replace LIBOR or other benchmark interest rates with new rates. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022.

Assets and Liabilities Held f_2

Assets and Liabilities Held for Sale (Tables)	9 Months Ended
	Sep. 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 September 30, 2020 and as of December 31, 2019: As of September 30, As of December 31, 2020 2019 Carrying amounts of major classes of assets included as part of discontinued operations: Policy loans $ 35,302 $ 50,387 Reinsurance recoverables 1,043,985 3,569,849 Premiums receivable 23,490 33,512 Total assets held for sale in the Consolidated Balance Sheets $ 1,102,777 $ 3,653,748 Carrying amounts of major classes of liabilities included as part of discontinued operations: Benefit reserves $ 594,603 $ 1,403,953 Policy claims 35,302 28,203 Deposit-type contracts 474,943 2,209,195 Advance premiums 593 2,226 Accounts payable and accrued expenses 5,672 3,290 Total liabilities held for sale in the Consolidated Balance Sheets $ 1,111,113 $ 3,646,867

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 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 September 30, 2020: Fixed maturities: U.S. government obligations $ 2,007,031 $ 104,703 $ 6,712 $ 2,105,022 Mortgage-backed securities 371,273 7,042 179 378,136 Asset-backed securities 205,589,130 2,235,333 5,382,412 202,442,051 States and political subdivisions -- general obligations 237,339 11,409 — 248,748 States and political subdivisions -- special revenue 5,629,266 565,843 4,930 6,190,179 Trust preferred 2,218,142 — 55,183 2,162,959 Corporate 36,784,304 1,070,998 839,447 37,015,855 Total fixed maturities $ 252,836,485 $ 3,995,328 $ 6,288,863 $ 250,542,950 Mortgage loans on real estate, held for investment 61,464,515 — — 61,464,515 Derivatives 5,698,117 2,395,084 429,195 7,664,006 Other invested assets 14,808,870 — — 14,808,870 Notes receivable 5,516,302 — — 5,516,302 Policy loans 147,309 — — 147,309 $ 340,471,598 $ 6,390,412 $ 6,718,058 $ 340,143,952 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 September 30, 2020: Fixed maturities: States and political subdivisions -- general obligations Bellingham, Washington $ 106,829 $ 117,759 AA+ Longview, Washington Refunding 130,510 130,989 Aa3 Total $ 237,339 $ 248,748
Schedule of unrealized loss of securities	The following table summarizes, for all fixed securities in an unrealized loss position at September 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. September 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 $ 35,073 $ 311 1 $ 1,518,772 $ 14,935 9 Asset-backed securities 112,190,271 5,122,847 66 39,114,732 404,752 26 Mortgage-back securities 22,828 179 1 160,010 4,844 4 States and political subdivisions -- special revenue 1,168,610 4,930 3 — — — Trust preferred 2,162,960 55,183 1 — — — Corporate 19,005,716 666,972 24 2,800,815 13,618 4 Greater than 12 months: U.S. government obligations 157,752 6,401 4 353,834 2,624 2 Asset-backed securities 10,592,569 259,565 5 — — — Mortgage-back securities — — — 638,598 16,226 14 Corporate 584,003 172,475 4 2,201,658 140,849 13 Total fixed maturities $ 145,919,782 $ 6,288,863 109 $ 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 September 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 $ 964,295 $ 1,067,733 Due after one year through five years 21,154,753 21,469,752 Due after five years through ten years 76,161,161 76,055,560 Due after ten years through twenty years 134,902,342 131,788,843 Due after twenty years 19,653,934 20,161,062 $ 252,836,485 $ 250,542,950
Schedule of components of net investment income	The components of net investment income for the three and nine months ended September 30, 2020 and 2019 was as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed maturities $ 322,484 $ (289,015) $ 1,364,414 $ 342,104 Mortgage loans 80,749 68,810 80,749 78,466 Other 62,942 (1,102) 62,942 6,973 Gross investment income 466,175 (221,307) 1,508,105 427,543 Less: investment expense (31,974) (86,793) (230,768) (96,633) Investment income, net of expenses $ 434,201 $ (308,100) $ 1,277,337 $ 330,910
Mortgage-back securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Schedule of Mortgage Loan Activity	Carrying Value Interest Income Interest Income September 30, 2020: Industrial $ 1,250,000 $ 18,236 $ 62,743 Commercial mortgage loan - multi-family 58,195,692 1,634,008 2,199,823 Other 2,018,823 221,136 134,631 Total mortgage loans $ 61,464,515 $ 1,873,380 $ 2,397,197 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)	9 Months Ended
	Sep. 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 September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Location in the Consolidated Derivatives Not Designated Statement of Notional Number of Estimated Notional Number of Estimated as Hedging Instruments Balance Sheets Amount Contracts Fair Value Amount Contracts Fair Value Equity-indexed options Derivatives $ 166,197,790 177 $ 7,664,006 $ 9,698,863 24 $ 575,294 Equity-indexed Deposit-type 204,289,800 1,418 6,359,657 10,720,324 108 576,634
Summary of embedded derivatives related to the funds withheld provision	September 30, 2020 Book Value of Market Value of Total Return Portfolio Assets Assets Swap Value Ironbound $ 100,442,130 $ 96,516,241 $ 3,925,889 SDA 21,072,864 20,495,383 577,481 US Alliance 36,801,442 36,616,705 184,737 SRC2 23,624,061 23,942,606 (318,545) Total $ 181,940,497 $ 177,570,935 $ 4,369,562

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	9 Months Ended
	Sep. 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 September 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 September 30, 2020 Financial assets Fixed maturities: U.S. government obligations $ — $ 2,105,022 $ — $ 2,105,022 Mortgage-backed securities — 378,136 — 378,136 Asset-backed securities — 202,442,051 — 202,442,051 States and political subdivisions — general obligations — 248,748 — 248,748 States and political subdivisions — special revenue — 6,190,179 — 6,190,179 Trust preferred — 2,162,959 — 2,162,959 Corporate — 37,015,855 — 37,015,855 Total fixed maturities — 250,542,950 — 250,542,950 Mortgage loans on real estate, held for investment — — 61,464,515 61,464,515 Derivatives — 7,664,006 — 7,664,006 Other invested assets — — 14,808,870 14,808,870 Notes receivable — 5,516,302 — 5,516,302 Policy loans — — 147,309 147,309 Total Investments $ — $ 263,723,258 $ 76,420,694 $ 340,143,952 Financial liabilities Embedded derivative for equity-indexed contracts $ — $ 6,359,657 $ — 6,359,657 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 September 30, 2020 and December 31, 2019, respectively: September 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 $ 147,309 $ — $ — $ 147,309 $ 147,309 Cash 136,431,785 136,431,785 — — 136,431,785 Liabilities: Policyholder deposits (Deposit-type contracts) 455,429,384 — — 455,429,384 455,429,384 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 Realized As of December 31, Valuation Gain/ September 30, 2019 Additions Sales Allowance (Loss) 2020 Assets Policy loans $ 106,014 $ 41,295 $ — $ — $ — $ 147,309 Mortgage loans on real estate, held for investment 13,810,041 56,402,943 8,918,066 — 169,597 61,464,515 Other invested assets 2,468,947 26,787,844 13,670,948 (776,973) — 14,808,870 Preferred stock 500,000 — — (500,000) — — Total Investments $ 16,885,002 $ 83,232,082 $ 22,589,014 $ (1,276,973) $ 169,597 $ 76,420,694

Reinsurance (Tables)

Reinsurance (Tables)	9 Months Ended
	Sep. 30, 2020
Summary of significant reinsurance amounts	A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of September 30, 2020 and December 31, 2019 and for the three and nine months ended September 30, 2020 and 2019 is as follows: September 30, 2020 December 31, 2019 Balance sheets: Benefit and claim reserves ceded $ 42,091,115 $ 30,579,524 Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Statements of comprehensive (loss) income: Premiums ceded $ 224,594 $ 180,149 $ 677,702 $ 702,450 Benefits ceded 52,388 51,866 99,466 167,895 Commissions ceded 1,874 1,566 7,595 8,146
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 as of September 30, 2020: 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 $ — $ — $ 4,141,644 $ — $ 4,141,644 Optimum Re Insurance Company A — — 524,701 — 524,701 Sagicor Life Insurance Company A- — 89,179 11,200,888 286,028 11,004,042 SDA Annuity & Life Re NR — — 4,094,584 — 4,094,584 SRC2 (Seneca Re protected cell) NR — — 5,108,908 — 5,108,908 US Alliance Life and Security Company NR — — 17,281,555 64,319 17,217,236 $ — $ 89,179 $ 42,352,280 $ 350,347 $ 42,091,115
Schedule of Ceded Commission Earned [Table Text Block]	Nine months ended September 30, 2020 2019 Reinsurer Gross Ceding Commission Expense (1) Interest on Ceding Commissions Earned Gross Ceding Commission Expense Interest on Ceding Commissions Earned Ironbound Reinsurance Company Limited $ 688,110 $ 690,169 $ 165,607 $ 316,889 $ 2,640,388 $ 2,575,089 $ 57,735 $ 201,772 SDA Annuity & Life Re 1,356,473 2,605,014 47,461 43,856 — — — — US Alliance Life and Security Company (2) 2,279,511 4,016,556 23,171 74,466 — — — — SRC2 3,837,996 7,247,966 13,251 54,838 — — — — $ 8,162,090 $ 14,559,705 $ 249,490 $ 490,049 $ 2,640,388 $ 2,575,089 $ 57,735 $ 201,772 (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees. (2) US Alliance FW 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: September 30, 2020 December 31, 2019 Reinsurer Effective Date Deferred Ceding Commission Deferred Ceding Commission US Alliance Life and Security Company (1) September 2017 $ 822,393 $ 858,675 Unified Life Insurance Company (1) July 2018 287,189 582,894 Ironbound Reinsurance Company Limited (2) July 2019 5,739,427 5,060,359 SDA Annuity & Life Re (2) November 2019 2,071,427 1,076,267 US Alliance Life and Security Company (3) April 2020 2,508,421 — SRC2 July 2020 4,310,407 — $ 15,739,264 $ 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 reduced 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 FW and funds paid treaty.
American Life & Security Corp [Member]
Schedule of Ceded Commission Earned [Table Text Block]	Nine months ended September 30, 2020 2019 Reinsurer Effective Date Ceding Expense (1) Ceding Expense (1) Ironbound Reinsurance Company Limited July 2019 $ 688,110 $ 690,169 $ 2,640,388 $ 2,575,089 SDA Annuity & Life Re November 2019 1,356,473 2,605,014 — — US Alliance Life and Security Company (2) April 2020 2,279,511 4,016,556 — — SRC2 July 2020 3,837,996 7,247,966 — — $ 8,162,090 $ 14,559,705 $ 2,640,388 $ 2,575,089 (1) Includes: acquisition and administrative expenses, commission expense allowance and product development fees. (2) US Alliance Life WF and funds paid treaty

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Summary of information regarding loans	Shares of Common Stock into which Loan Loans Were Principal Converted Date of Loan Amount As Restated (1) June 28, 2018 $ 500,000 48,570 June 28, 2018 100,000 9,714 October 10, 2018 1,000,000 97,139 December 7, 2018 17,500,000 1,699,938 Total $ 19,100,000 1,855,361 (1) Reflects reverse stock split 500:1 as of August 27, 2020.

Long-Term Incentive Plan (Table

Long-Term Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of remaining non-vested shares	Table below show the remaining non-vested shares of voting common stock as of September 30, 2020: 2020 Stock (1) 2019 Stock (1) Non-vested at December 31, 2019 17,900 17,900 Granted 32,967 - Forfeited (3,350) - Vested (200) Non-vested at September 30, 2020 47,317 17,900 Reflects reverse stock split of 500:1 as of August 27, 2020.

Income Tax Matters (Tables)

Income Tax Matters (Tables)	9 Months Ended
	Sep. 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 September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 December 31, 2019 Deferred tax assets: Loss carryforwards $ 623,258 $ 436,777 Capitalized costs 186,253 221,918 Stock option granted 4,566 4,566 Unrealized losses on investments 475,720 — Policy acquisition costs 750,034 1,468,030 Charitable contribution carryforward 1,020 1,020 Property and equipment 29,896 15,508 Benefit reserves 3,263,165 848,643 Total deferred tax assets 5,333,912 2,996,462 Less valuation allowance (4,631,718) (2,618,741) Total deferred tax assets, net of valuation allowance 702,194 377,721 Deferred tax liabilities: Unrealized losses on investments 314,738 116,088 Due premiums 81,789 81,789 Intangible assets 147,000 147,000 Policy loans 158,667 32,844 Property and equipment — — Total deferred tax liabilities 702,194 377,721 Net deferred tax assets $ — $ —
Schedule of effective tax rate reconciliation	There was income tax expense of $1,257,681 and $2,145,110 for the three and nine months ended September 30, 2020 and $114,642 income tax expense for the three and nine months ended September 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 September 30, Nine months ended September 30, 2020 2019 2020 2019 Computed expected income tax benefit $ (898,708) $ (325,116) $ 339,987 $ (813,759) Increase (reduction) in income taxes resulting from: State tax net of federal benefit 151,680 — 151,680 — Nondeductible expenses 1,171 (1,778) 4,101 3,858 Change in valuation allowance 1,428,358 479,861 1,421,169 746,468 COD Interest — — — 177,563 Other 575,180 (38,325) 228,173 512 Subtotal of increases 2,156,389 439,758 1,805,123 928,401 Tax expense $ 1,257,681 $ 114,642 $ 2,145,110 $ 114,642

Deposit-Type Contracts (Tables)

Deposit-Type Contracts (Tables)	9 Months Ended
	Sep. 30, 2020
Deposit Type Contracts [Abstract]
Schedule of deposit-type contracts	September 30, 2020 December 31, 2019 Beginning balance $ 171,168,785 $ 7,234,927 US Alliance 547,193 657,986 Deposits received 279,537,157 161,392,700 Investment earnings (includes embedded derivative) 5,910,237 2,043,762 Withdrawals (1,718,288) (160,590) Contract charges (15,700) — Ending balance $ 455,429,384 $ 171,168,785

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Schedule of Supplemental Balance Sheet Information Related to Leases	Supplemental balance sheet information as of September 30, 2020 regarding our leases is as follows: As of As of Leases Classification September 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 378,682 470,132 Total leased assets $ 378,682 $ 473,045 Liabilities Current: Finance lease Finance lease liabilities $ — $ 1,860 Noncurrent: Operating lease Operating lease liabilities 428,851 524,248 Total leased liabilities $ 428,851 $ 526,108
Schedule of Components of Lease Expenses	Our operating and finance leases expenses for the three and nine months ended September 30, 2020 and 2019, were as follows: Three months ended September 30, Nine months ended September 30, Leases Classification 2020 2019 2020 2019 Operating General and administrative expense $ 2,077 $ 3,344 $ 6,654 $ 10,453 Finance lease cost: Amortization expense — 2,914 2,913 8,739 Interest expense — 111 111 333
Schedule of Finance and Operating Leases Minimum	Minimum contractual obligations for our operating leases at September 30, 2020, are as follows: Operating Leases 2020 (excluding nine months ended September 30, 2020) $ 40,345 2021 164,081 2022 156,608 2023 161,674 2024 13,508 Total remaining lease payments $ 536,216
Schedule of Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases was as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Cash payments Operating cash flows from operating leases $ (190) $ (190) $ (1,035) $ (148) Operating cash flows from finance leases 1,164 1,164 4,657 2,328 Financing cash flows from finance leases — (111) (111) (333)
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 September 30, 2020 December 31, 2019 Weighted Average Remaining Lease Term Finance lease — 3 months Operating lease 1.7 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)	Aug. 27, 2020	Aug. 10, 2020$ / sharesshares	Apr. 24, 2020USD ($)$ / sharesshares	Mar. 11, 2020	Mar. 01, 2020	Jul. 25, 2019	Jun. 18, 2019USD ($)shares	Jun. 18, 2019USD ($)	Jun. 30, 2018USD ($)	Sep. 30, 2020USD ($)$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares	Sep. 30, 2020USD ($)segmentproductitem$ / sharesshares	Sep. 30, 2019USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares	Sep. 30, 2020GBP (£)stateitemshares	Sep. 30, 2020USD ($)stateitem$ / sharesshares	Jun. 15, 2020	Apr. 02, 2019	May 09, 2018shares
Common stock shares | shares			231,655
Common stock par value | $ / shares														$ 0.001		$ 0.001
Share Price | $ / shares			$ 22.50
Proceeds from issuance of common shares			$ 5,227,000
Common stock, shares authorized | shares														20,000,000	20,000,000	20,000,000			3,940,000
Common stock, voting and non-voting, shares authorized | shares		22,000,000													22,000,000	22,000,000
Preferred stock, shares authorized (in shares) | shares		2,000,000												2,000,000	2,000,000	2,000,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.001												$ 0.001		$ 0.001
Reverse stock split ratio	0.002	500
Reverse stock split fractions retired												$ 175,333
Common stock, shares outstanding | shares														2,042,670	2,718,967	2,718,967
Number of reporting segment | segment												1
Number of products offered | product												5
Number of multi year guaranteed annuities | item												2
Number of bonus plans associated with FIA Product | item												2
Valuation allowances on mortgage loans																$ 0
Outstanding remaining lease payments on non-performing lease																3,600,000
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																5,516,302
Valuation allowance on policy loans																0
Cash equivalents														$ 0		0
Cash held in custody accounts															£ 605,506	$ 783,000
Number of third party reinsurers | item												4
Number of related party reinsurer | item												1
Preferred stock, shares outstanding (in shares) | shares														0	0	0
Preferred stock, shares issued | shares														0	0	0
Common stock, shares issued (in shares) | shares														2,042,670	2,718,967	2,718,967
Basic earnings per share | $ / shares										$ (2.04)	$ (0.81)	$ (0.22)	$ (4.71)
Basic earnings per share, excluding embedded derivative gain | $ / shares												$ (1.98)
Weighted average number of shares outstanding, Basic (in shares) | shares										2,718,967	2,042,670	2,435,115	847,893
Weighted average number of shares outstanding, Diluted (in shares) | shares										2,766,484	2,083,220	2,482,632	888,443
Depreciation										$ 12,613	$ 9,652	$ 34,926	$ 28,972
Accumulated depreciation														$ 975,480		$ 1,010,406
Unrealized gains (losses) on investments												(2,875,489)		2,291,413
Gains (losses) related to change in foreign currency exchange rate												(87,300)
Embedded derivative gains												4,400,000
Unrealized gains and losses												$ 4,400,000
Number of operating leases | item															3	3
Number of finance leases | item															1	1
Total leased assets														473,045		$ 378,682
Total leased liabilities														$ 526,108		$ 428,851
Preferred Stock
Preferred stock											$ 500,000		$ 500,000
Xenith
Conversion amount							$ 19,100,000	$ 19,100,000
Stock issued, conversion | shares							145,709
Series C Preferred Stock [Member] | Xenith
Stated dividend rate								8.00%
Series C Preferred Stock [Member] | Xenith1
Voting common stock | shares							1,500,000
Conversion rate							10.29
Voting Common Stock [Member]
Common stock par value | $ / shares		$ 0.001
Common stock, shares authorized | shares		20,000,000												20,000,000	20,000,000	20,000,000
Non-voting common shares [Member]
Common stock par value | $ / shares		$ 0.001
Common stock, shares authorized | shares		2,000,000												2,000,000	2,000,000	2,000,000
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%	49.00%	49.00%	51.00%
American Life
Number of states | state															20	20
Contributions made									$ 20,500,000
Unrealized gains (losses) on investments												$ 2,100,000
Crestline Assurance Holdings LLC
Percentage of voting common stock															16.00%	16.00%
Crestline Assurance Holdings LLC | American Life
Contributions made			$ 5,000,000
Securities Purchase Agreement | Crestline Assurance Holdings LLC
Common stock shares | shares			444,444
Common stock par value | $ / shares			$ 0.001
Share Price | $ / shares			$ 22.50
Proceeds from issuance of common shares			$ 10,000,000
FW, Modco Agreement
Percentage of indemnity coinsurance				0.00%	30.00%	95.00%
Seneca Re Agreement
Contributions made			$ 3,300,000
Master Letter Agreement | Crestline Assurance Holdings LLC
Period of agreement			3 years
SRC1
Contributions made												3,000,000
SRC2
Contributions made												$ 40,000,000
Multi Year Guaranteed Annuity | Master Letter Agreement | Crestline Assurance Holdings LLC
Percentage of indemnity coinsurance			25.00%
Fixed Index Annuity | Master Letter Agreement | Crestline Assurance Holdings LLC
Percentage of indemnity coinsurance			40.00%

Assets and Liabilities Held f_3

Assets and Liabilities Held for Sale (Narrative) (Details)	9 Months Ended
	Sep. 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 ($)	Sep. 30, 2020	Dec. 31, 2019
Carrying amounts of major classes of assets included as part of discontinued operations:
Policy loans	$ 35,302	$ 50,387
Reinsurance recoverables	1,043,985	3,569,849
Premiums receivable	23,490	33,512
Total assets held for sale in the Consolidated Balance Sheets	1,102,777	3,653,748
Carrying amounts of major classes of liabilities included as part of discontinued operations:
Benefit reserves	594,603	1,403,953
Policy claims	35,302	28,203
Deposit-type contracts	474,943	2,209,195
Advance premiums	593	2,226
Accounts payable and accrued expenses	5,672	3,290
Total liabilities held for sale in the Consolidated Balance Sheets	$ 1,111,113	$ 3,646,867

Non-controlling Interest (Detai

Non-controlling Interest (Details) - USD ($)	Jun. 15, 2020	Apr. 02, 2019	Sep. 30, 2020
Noncontrolling Interest [Line Items]
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%	49.00%
Capital units acquired, purchase price		$ 1

Investments (Schedule of Amorti

Investments (Schedule of Amortized Cost and Estimated Fair Value of Investments) (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)security	Dec. 31, 2019USD ($)
Cost or Amortized Cost	$ 252,836,485	$ 116,676,312
Total fixed maturities	250,542,950	117,241,861
Mortgage loans on real estate, held for investment	61,464,515	13,810,041
Derivatives, Cost	5,698,117	490,831
Derivatives, Gross Unrealized Gains	2,395,084	87,684
Derivatives, Gross Unrealized Losses	429,195	3,221
Derivatives instruments (See Note 5)	7,664,006	575,294
Investment escrow		3,899,986
Other invested assets, Cost	14,808,870
Other invested assets	14,808,870	2,468,947
Preferred stock		500,000
Notes receivable	5,516,302
Policy Loans	147,309	106,014
Total investments, Amortized Cost	340,471,598
Investments, Gross Unrealized Gains	6,390,412
Investments, Gross Unrealized Losses	6,718,058
Investments, Fair Value Disclosure	$ 340,143,952	138,496,129
Number of securities Exceeded | security	2
Fixed Maturities
Cost or Amortized Cost	$ 252,836,485	116,676,312
Gross Unrealized Gains	3,995,328	1,163,397
Gross Unrealized Losses	6,288,863	597,848
Total fixed maturities	250,542,950	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	2,007,031	2,091,710
Gross Unrealized Gains	104,703	7,073
Gross Unrealized Losses	6,712	17,559
Total fixed maturities	2,105,022	2,081,224
Mortgage-back securities | Fixed Maturities
Cost or Amortized Cost	371,273	819,678
Gross Unrealized Gains	7,042
Gross Unrealized Losses	179	21,070
Total fixed maturities	378,136	798,608
Asset-backed securities | Fixed Maturities
Cost or Amortized Cost	205,589,130	95,006,241
Gross Unrealized Gains	2,235,333	646,335
Gross Unrealized Losses	5,382,412	404,752
Total fixed maturities	202,442,051	95,247,824
States and Political Subdivisions - general obligations | Fixed Maturities
Cost or Amortized Cost	237,339	240,494
Gross Unrealized Gains	11,409	8,788
Total fixed maturities	248,748	249,282
States and Political Subdivisions - special revenue | Fixed Maturities
Cost or Amortized Cost	5,629,266	25,112
Gross Unrealized Gains	565,843	179
Gross Unrealized Losses	4,930
Total fixed maturities	6,190,179	25,291
Trust preferred | Fixed Maturities
Cost or Amortized Cost	2,218,142
Gross Unrealized Losses	55,183
Total fixed maturities	2,162,959
Corporate | Fixed Maturities
Cost or Amortized Cost	36,784,304	18,493,077
Gross Unrealized Gains	1,070,998	501,022
Gross Unrealized Losses	839,447	154,467
Total fixed maturities	$ 37,015,855	$ 18,839,632

Investments (Schedule of Amor_2

Investments (Schedule of Amortized Cost, Fair Value, Credit Rating) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Amortized Cost	$ 252,836,485	$ 116,676,312
States and Political Subdivisions - general obligations | US States and Political Subdivisions Debt Securities
Amortized Cost	237,339
Estimated Fair Value	248,748
States and Political Subdivisions - general obligations | US States and Political Subdivisions Debt Securities | Bellingham, Washington
Amortized Cost	106,829
Estimated Fair Value	$ 117,759
Credit Rating	AA+
States and Political Subdivisions - general obligations | US States and Political Subdivisions Debt Securities | Longview, Washington
Amortized Cost	$ 130,510
Estimated Fair Value	$ 130,989
Credit Rating	Aa3

Investments (Schedule of Unreal

Investments (Schedule of Unrealized Loss of Securities) (Details) - Fixed Maturities	Sep. 30, 2020USD ($)security	Dec. 31, 2019USD ($)security
Estimated Fair Value, Total	$ 145,919,782	$ 46,788,419
Gross Unrealized Loss, Total	$ 6,288,863	$ 597,848
Number of Securities, Total | security	109	72
U.S. government obligations
Estimated Fair Value, Less than 12 months	$ 35,073	$ 1,518,772
Gross Unrealized Loss, Less than 12 months	$ 311	$ 14,935
Number of Securities, Less than 12 months | security	1	9
Estimated Fair value, Greater than 12 months	$ 157,752	$ 353,834
Gross Unrealized Loss, Greater than 12 months	$ 6,401	$ 2,624
Number of Securities, Greater than 12 months | security	4	2
Asset-backed securities
Estimated Fair Value, Less than 12 months	$ 112,190,271	$ 39,114,732
Gross Unrealized Loss, Less than 12 months	$ 5,122,847	$ 404,752
Number of Securities, Less than 12 months | security	66	26
Estimated Fair value, Greater than 12 months	$ 10,592,569
Gross Unrealized Loss, Greater than 12 months	$ 259,565
Number of Securities, Greater than 12 months | security	5
Mortgage-back securities
Estimated Fair Value, Less than 12 months	$ 22,828	$ 160,010
Gross Unrealized Loss, Less than 12 months	$ 179	$ 4,844
Number of Securities, Less than 12 months | security	1	4
Estimated Fair value, Greater than 12 months		$ 638,598
Gross Unrealized Loss, Greater than 12 months		$ 16,226
Number of Securities, Greater than 12 months | security		14
States and Political Subdivisions - special revenue
Estimated Fair Value, Less than 12 months	$ 1,168,610
Gross Unrealized Loss, Less than 12 months	$ 4,930
Number of Securities, Less than 12 months | security	3
Trust preferred
Estimated Fair Value, Less than 12 months	$ 2,162,960
Gross Unrealized Loss, Less than 12 months	$ 55,183
Number of Securities, Less than 12 months | security	1
Corporate
Estimated Fair Value, Less than 12 months	$ 19,005,716	$ 2,800,815
Gross Unrealized Loss, Less than 12 months	$ 666,972	$ 13,618
Number of Securities, Less than 12 months | security	24	4
Estimated Fair value, Greater than 12 months	$ 584,003	$ 2,201,658
Gross Unrealized Loss, Greater than 12 months	$ 172,475	$ 140,849
Number of Securities, Greater than 12 months | security	4	13

Investments (Schedule of Fixed

Investments (Schedule of Fixed Maturities) (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Marketable Securities [Abstract]
Amortized Cost, Due in one year or less	$ 964,295
Amortized Cost, Due after one year through five years	21,154,753
Amortized Cost, Due after five years through ten years	76,161,161
Amortized Cost, Due after ten years through twenty years	134,902,342
Amortized Cost, Due after twenty years	19,653,934
Amortized Cost	252,836,485	$ 116,676,312
Estimated Fair Value, Due in one year or less	1,067,733
Estimated Fair Value, Due after one year through five years	21,469,752
Estimated Fair Value, Due after five years through ten years	76,055,560
Estimated Fair Value, Due after ten years through twenty years	131,788,843
Estimated Fair Value, Due after twenty years	20,161,062
Estimated Fair Value	$ 250,542,950	$ 117,241,861

Investments (Schedule of Invest

Investments (Schedule of Investments Measured at Fair Value on a Recurring Basis) (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Carrying Value	$ 61,464,515	$ 13,810,041
Interest Income Accrued	1,873,380	312,028
Interest Income Earned	2,397,197	352,959
Industrial
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Carrying Value	1,250,000	500,000
Interest Income Accrued	18,236
Interest Income Earned	62,743	15,889
Commercial mortgage loan - multi-family
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Carrying Value	58,195,692	11,320,924
Interest Income Accrued	1,634,008	116,860
Interest Income Earned	2,199,823	329,684
Other.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Carrying Value	2,018,823	1,989,117
Interest Income Accrued	221,136	195,168
Interest Income Earned	134,631	7,386
Fair Value, Inputs, Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Carrying Value	$ 61,464,515	$ 13,810,041

Investments (Components of Net

Investments (Components of Net Investment Income) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Gross investment income	$ 466,175	$ (221,307)	$ 1,508,105	$ 427,543
Less investment expense	(31,974)	(86,793)	(230,768)	(96,633)
Investment income, net of expenses	434,201	(308,100)	1,277,337	330,910
Fixed Maturities
Gross investment income	322,484	(289,015)	1,364,414	342,104
Mortgage loans
Gross investment income	80,749	68,810	80,749	78,466
Other
Gross investment income	$ 62,942	$ (1,102)	$ 62,942	$ 6,973

Investments (Narrative) (Detail

Investments (Narrative) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)item	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)item	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Amortized cost	$ 3,526,609		$ 3,526,609		$ 3,611,292
Fair value	3,714,594		3,714,594		$ 3,612,844
Proceeds from sales of available-for-sale investments	5,641,219	$ 82,222	24,050,257	$ 2,488,387
Gross realized gain	153,913	0	1,342,283	9,006
Gross realized losses	44,678	$ 9,512	$ 76,085	$ 22,660
percentage of total investments having a longer duration			80.00%
Number of third party reinsurers | item			4
Outstanding remaining lease payments on non-performing lease	3,600,000		$ 3,600,000
Valuation allowance on leased assets	$ 776,973		$ 776,973
Number of treaties with related party reinsurance companies | item	1		1
Unrealized gains and losses			$ 4,400,000
Embedded derivative gains			$ 4,400,000
Minimum
period of maturity of debt instruments			10 years
Maximum
period of maturity of debt instruments			20 years

Derivative Instruments (Details

Derivative Instruments (Details)	Sep. 30, 2020USD ($)contractitem	Dec. 31, 2019USD ($)contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Estimated Fair Value	$ 7,664,006	$ 575,294
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	$ 166,197,790	$ 9,698,863
Number of Contracts | contract	177	24
Estimated Fair Value	$ 7,664,006	$ 575,294
Derivatives not designated as hedge | Equity-indexed embedded derivative
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 204,289,800	$ 10,720,324
Number of Contracts | contract	1,418	108
Estimated Fair Value	$ 6,359,657	$ 576,634

Derivative Instruments - Funds

Derivative Instruments - Funds Withheld Provision (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amounts recoverable from reinsurers	$ 42,091,115	$ 30,579,524
SDA Annuity and Life Re
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amounts recoverable from reinsurers	4,094,584
SRC2
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amounts recoverable from reinsurers	5,108,908
US Alliance Life and Security Company [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amounts recoverable from reinsurers	17,217,236
Funds With held Provision Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	181,940,497
Market value of assets	177,570,935
Total return swap value	4,369,562
Amounts recoverable from reinsurers	4,369,562
Funds With held Provision Agreement | Ironbound Reinsurance Company Limited
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	100,442,130
Market value of assets	96,516,241
Total return swap value	3,925,889
Funds With held Provision Agreement | SDA Annuity and Life Re
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	21,072,864
Market value of assets	20,495,383
Total return swap value	577,481
Funds With held Provision Agreement | US Alliance Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	36,801,442
Market value of assets	36,616,705
Total return swap value	184,737
Funds With held Provision Agreement | SRC2
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Book value of assets	23,624,061
Market value of assets	23,942,606
Total return swap value	$ (318,545)

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 ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	$ 250,542,950	$ 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	61,464,515	13,810,041
Derivatives instruments (See Note 5)	7,664,006	575,294
Investment escrow		3,899,986
Other Investments	14,808,870	2,468,947
Preferred stock		500,000
Notes receivable	5,516,302
Policy Loans	147,309	106,014
Policy loans	147,309	106,014
Investments, Fair Value Disclosure	340,143,952	138,496,129
Embedded derivative for equity-indexed contracts	6,359,657	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	3,600,000
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 5)	7,664,006	575,294
Investment escrow		3,899,986
Notes receivable	5,516,302
Investments, Fair Value Disclosure	263,723,258	121,717,141
Embedded derivative for equity-indexed contracts	6,359,657	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	61,464,515	13,810,041
Other Investments	14,808,870	2,468,947
Preferred stock		500,000
Policy Loans	147,309	106,014
Investments, Fair Value Disclosure	76,420,694	16,885,002
Outstanding remaining lease payments on non-performing lease	3,500,000
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	250,542,950	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	250,542,950	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	2,105,022	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	2,105,022	2,081,224
Fixed Maturities | Mortgage-back securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	378,136	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	378,136	798,608
Fixed Maturities | Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	202,442,051	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	202,442,051	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	248,748	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	248,748	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	6,190,179	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	6,190,179	25,291
Fixed Maturities | Trust preferred
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	2,162,959
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	2,162,959
Fixed Maturities | Corporate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fixed maturities	37,015,855	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	$ 37,015,855	$ 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 ($)	Sep. 30, 2020	Dec. 31, 2019
Assets:
Cash	$ 136,431,785	$ 43,716,205
Fair Value, Inputs, Level 1
Assets:
Cash	136,431,785	43,716,205
Fair Value, Inputs, Level 3
Assets:
Policy loans	147,309	106,014
Liabilities:
Policyholder deposits (Deposit-type contracts)	455,429,384	171,168,785
Carrying Amount
Assets:
Policy loans	147,309	106,014
Cash	136,431,785	43,716,205
Liabilities:
Policyholder deposits (Deposit-type contracts)	455,429,384	171,168,785
Fair Value
Assets:
Policy loans	147,309	106,014
Cash	136,431,785	43,716,205
Liabilities:
Policyholder deposits (Deposit-type contracts)	$ 455,429,384	$ 171,168,785

Fair Values of Financial Inst_5

Fair Values of Financial Instruments (Recurring Basis Level 3) (Details)	9 Months Ended
	Sep. 30, 2020USD ($)
Beginning Balance	$ 16,885,002
Additions	83,232,082
Sales	22,589,014
Valuation Allowance	(1,276,973)
Realized gain/(loss)	169,597
Ending Balance	76,420,694
Policy loans.
Beginning Balance	106,014
Additions	41,295
Ending Balance	147,309
Mortgage loans on real estate, held for investment
Beginning Balance	13,810,041
Additions	56,402,943
Sales	8,918,066
Realized gain/(loss)	169,597,000
Ending Balance	61,464,515
Other invested assets
Beginning Balance	2,468,947
Additions	26,787,844
Sales	13,670,948
Valuation Allowance	(776,973)
Ending Balance	14,808,870
Preferred Stock
Beginning Balance	500,000
Valuation Allowance	$ (500,000)

Reinsurance (Summary of Signifi

Reinsurance (Summary of Significant Reinsurance Amounts) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Balance sheets:
Amounts recoverable from reinsurers	$ 42,091,115		$ 42,091,115		$ 30,579,524
Statements of comprehensive (loss) income:
Premiums ceded	224,594	$ 180,149	677,702	$ 702,450
Benefits ceded	52,388	51,866	99,466	167,895
Commissions ceded	$ 1,874	$ 1,566	$ 7,595	$ 8,146

Reinsurance (Schedule of Signif

Reinsurance (Schedule of Significant Reinsurance Balances) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Recoverable on Unpaid Losses	$ 89,179
Recoverable on Benefit Reserves/Deposit-type Contracts	42,352,280
Ceded Due Premiums	350,347
Reinsurance recoverables (See Note7)	$ 42,091,115	$ 30,579,524
Ironbound Reinsurance Company Limited [Member]
AM Best Rating	NR
Recoverable on Benefit Reserves/Deposit-type Contracts	$ 4,141,644
Reinsurance recoverables (See Note7)	$ 4,141,644
Optimum Reinsurance Company [Member]
AM Best Rating	A
Recoverable on Benefit Reserves/Deposit-type Contracts	$ 524,701
Reinsurance recoverables (See Note7)	$ 524,701
Sagicor Life Insurance Company [Member]
AM Best Rating	A-
Recoverable on Unpaid Losses	$ 89,179
Recoverable on Benefit Reserves/Deposit-type Contracts	11,200,888
Ceded Due Premiums	286,028
Reinsurance recoverables (See Note7)	$ 11,004,042
SDA Annuity and Life Re
AM Best Rating	NR
Recoverable on Benefit Reserves/Deposit-type Contracts	$ 4,094,584
Reinsurance recoverables (See Note7)	$ 4,094,584
SRC2
AM Best Rating	NR
Recoverable on Benefit Reserves/Deposit-type Contracts	$ 5,108,908
Reinsurance recoverables (See Note7)	$ 5,108,908
US Alliance Life and Security Company [Member]
AM Best Rating	NR
Recoverable on Benefit Reserves/Deposit-type Contracts	$ 17,281,555
Ceded Due Premiums	64,319
Reinsurance recoverables (See Note7)	$ 17,217,236

Reinsurance (Ceding commissions

Reinsurance (Ceding commissions earned) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Ceded Commission Earned	$ 8,162,090	$ 2,640,388
Expense Allowances	14,559,705	2,575,089
Ironbound Reinsurance Company Limited [Member]
Ceded Commission Earned	688,110	2,640,388
Expense Allowances	690,169	$ 2,575,089
SDA Annuity and Life Re
Ceded Commission Earned	1,356,473
Expense Allowances	2,605,014
US Alliance Life and Security Company [Member]
Ceded Commission Earned	2,279,511
Expense Allowances	4,016,556
SRC2
Ceded Commission Earned	3,837,996
Expense Allowances	7,247,966
American Life & Security Corp [Member]
Ceded Commission Earned	8,162,090
Expense Allowances	14,559,705
American Life & Security Corp [Member] | Ironbound Reinsurance Company Limited [Member]
Ceded Commission Earned	688,110
Expense Allowances	690,169
American Life & Security Corp [Member] | SDA Annuity and Life Re
Ceded Commission Earned	1,356,473
Expense Allowances	2,605,014
American Life & Security Corp [Member] | US Alliance Life and Security Company [Member]
Ceded Commission Earned	2,279,511
Expense Allowances	4,016,556
American Life & Security Corp [Member] | SRC2
Ceded Commission Earned	3,837,996
Expense Allowances	$ 7,247,966

Reinsurance (Ceding commissio_2

Reinsurance (Ceding commissions deferred) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Ceded Commission Earned	$ 8,162,090	$ 2,640,388
Expense Allowances	14,559,705	2,575,089
Interest On Ceding Commissions	249,490	57,735
Earned Ceding Commission	490,049	201,772
Deferred gain on reinsurance transactions	15,739,264		$ 7,578,195
Ironbound Reinsurance Company Limited [Member]
Ceded Commission Earned	688,110	2,640,388
Expense Allowances	690,169	2,575,089
Interest On Ceding Commissions	165,607	57,735
Earned Ceding Commission	316,889	$ 201,772
Deferred gain on reinsurance transactions	5,739,427		5,060,359
SDA Annuity and Life Re
Ceded Commission Earned	1,356,473
Expense Allowances	2,605,014
Interest On Ceding Commissions	47,461
Earned Ceding Commission	43,856
Deferred gain on reinsurance transactions	2,071,427		1,076,267
US Alliance Life and Security Company [Member]
Ceded Commission Earned	2,279,511
Expense Allowances	4,016,556
Interest On Ceding Commissions	23,171
Earned Ceding Commission	74,466
Deferred gain on reinsurance transactions	822,393		858,675
SRC2
Ceded Commission Earned	3,837,996
Expense Allowances	7,247,966
Interest On Ceding Commissions	13,251
Earned Ceding Commission	54,838
Deferred gain on reinsurance transactions	4,310,407
US Alliance Life and Security Company(3)
Deferred gain on reinsurance transactions	2,508,421
Unified Life Insurance Company [Member]
Deferred gain on reinsurance transactions	$ 287,189		$ 582,894

Reinsurance (Narrative) (Detail

Reinsurance (Narrative) (Details) - USD ($)	Aug. 25, 2020	Jun. 30, 2020	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	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Jul. 23, 2020
Amounts recoverable from reinsurers												$ 42,091,115			$ 42,091,115		$ 30,579,524
Unrealized gains (losses)															2,875,489		(2,291,413)
Embedded derivative gains															4,400,000
Unrealized gains and losses															4,400,000
Net premium income												(27)		$ 2,327	24	$ (152)
Amount owned												19,100,000			19,100,000
Deferred coinsurance ceding commission															8,161,069	$ 2,821,255
Contingency reserves												0			0		$ 0
FW, Modco Agreement
Net premium income											$ 45,005,535
Gross premiums income											46,568,321
Gross Commission paid											1,562,786
Net statutory reserves											44,904,704
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
Adjusted reserves cash											26,944,622
FW, Modco Agreement | Modco Deposit Account [Member]
Initial settlement											16,619,289
Amount owned											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 | MYGA
Percentage of indemnity coinsurance	0.00%
FW, Modco SDA Agreement | FIA
Percentage of indemnity coinsurance	0.00%
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
Ceded percentage of certain liabilities																		25.00%
Seneca Re Agreement | FIA
Ceded percentage of certain liabilities																		40.00%
SRC1 | FIA
Percentage of indemnity coinsurance		5.00%
Ironbound Reinsurance Company Limited [Member]
Amounts recoverable from reinsurers												4,141,644			4,141,644
Optimum Reinsurance Company [Member]
Amounts recoverable from reinsurers												524,701			524,701
Sagicor Life Insurance Company [Member]
Amounts recoverable from reinsurers												11,004,042			11,004,042
SDA Annuity and Life Re
Amounts recoverable from reinsurers												4,094,584			$ 4,094,584
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												$ 17,217,236			$ 17,217,236
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)	Aug. 27, 2020	Aug. 10, 2020	May 09, 2018USD ($)itemshares	Dec. 31, 2018USD ($)$ / shares	Sep. 30, 2020USD ($)shares	Dec. 31, 2019shares	Jun. 18, 2019USD ($)
Common stock, shares authorized | shares			3,940,000		20,000,000	20,000,000
Reverse stock split ratio	0.002	500
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				$ 10.29
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	Sep. 30, 2020
Loan Principal Amount		$ 19,100,000
Shares of Common Stock into which Loan Were Converted	1,855,361
June 28, 2018 [Member]
Loan Principal Amount	$ 500,000
Shares of Common Stock into which Loan Were Converted	48,570
June 28, 2018 [Member]
Loan Principal Amount	$ 100,000
Shares of Common Stock into which Loan Were Converted	9,714
October 10, 2018 [Member]
Loan Principal Amount	$ 1,000,000
Shares of Common Stock into which Loan Were Converted	97,139
December 7, 2018 [Member]
Loan Principal Amount	$ 17,500,000
Shares of Common Stock into which Loan Were Converted	1,699,938

Long-Term Incentive Plan (Detai

Long-Term Incentive Plan (Details)	Sep. 13, 2020$ / sharesshares	Aug. 27, 2020	Aug. 10, 2020	Jul. 21, 2020shares	May 01, 2020directorshares	Jul. 19, 2019$ / sharesshares	Sep. 30, 2020USD ($)shares	Sep. 30, 2020USD ($)$ / sharesshares	Sep. 30, 2020USD ($)shares
Share based compensation | $								$ 29,805
Reverse stock split ratio		0.002	500
Stock Options
Share based compensation | $							$ 29,805	$ 54,827
Number of directors | director					2
Outstanding non-vested stock (in shares)							47,317	47,317	47,317
Forfeited stock (in shares)								3,350
Schedule of remaining non-vested shares
Forfeited (in shares)								(3,350)
Vested (in shares)					(200)
Non-vested at ending							47,317	47,317
Minimum | Stock Options
Vesting period							2 years
Maximum | Stock Options
Vesting period								4 years
2020 LTIP | Stock Options
Granted (in shares)	6,667			26,300				32,967
Grants, weighted average exercise price (in dollars per share) | $ / shares	$ 25							$ 25
Grant date fair value (in dollars per share) | $ / shares								$ 14.50
Consideration | $									$ 333,500
Risk free interest rate (as a percent)								0.55%
Time to maturity								10 years
Volatility rate (as a percent)								60.00%
Exercisable period								10 years
Outstanding non-vested stock (in shares)							47,317	47,317	47,317
Forfeited stock (in shares)								3,350
Schedule of remaining non-vested shares
Non-vested at beginning								17,900
Forfeited (in shares)								(3,350)
Vested (in shares)								(200)
Non-vested at ending							47,317	47,317
2019 LTIP | Stock Options
Granted (in shares)						17,900
Grants, weighted average exercise price (in dollars per share) | $ / shares						$ 25		$ 25
Grant date fair value (in dollars per share) | $ / shares						$ 8		$ 8
Consideration | $									$ 143,200
Risk free interest rate (as a percent)								1.84%
Time to maturity								10 years
Volatility rate (as a percent)								200.00%
Exercisable period						10 years		10 years
Outstanding non-vested stock (in shares)							17,900	17,900	17,900
Schedule of remaining non-vested shares
Non-vested at beginning								17,900
Non-vested at ending							17,900	17,900
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%

Income Tax Matters (Schedule of

Income Tax Matters (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Deferred tax assets:
Loss carryforwards	$ 623,258	$ 436,777
Capitalized costs	186,253	221,918
Stock option granted	4,566	4,566
Unrealized losses on investments	475,720
Policy acquisition costs	750,034	1,468,030
Charitable contribution carryforward	1,020	1,020
Property and equipment	29,896	15,508
Benefit reserves	3,263,165	848,643
Total deferred tax assets	5,333,912	2,996,462
Less valuation allowance	(4,631,718)	(2,618,741)
Total deferred tax assets, net of valuation allowance	702,194	377,721
Deferred tax liabilities:
Unrealized losses on investments	314,738	116,088
Due premiums	81,789	81,789
Intangible assets	147,000	147,000
Policy loans	158,667	32,844
Total deferred tax liabilities	$ 702,194	$ 377,721

Income Tax Matters (Schedule _2

Income Tax Matters (Schedule of Effective Tax Rate Reconciliation) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Computed expected income tax benefit	$ (898,708)	$ (325,116)	$ 339,987	$ (813,759)
Increase (reduction) in income taxes resulting from:
State tax net of federal benefit	151,680		151,680
Non deductible expenses	1,171	(1,778)	4,101	3,858
Change in valuation allowance	1,428,358	479,861	1,421,169	746,468
COD Interest				177,563
Other	575,180	(38,325)	228,173	512
Subtotal of increases	2,156,389	439,758	1,805,123	928,401
Tax expense (benefit)	$ 1,257,681	$ 114,642	$ 2,145,110	$ 114,642

Income Tax Matters (Narrative)

Income Tax Matters (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Jun. 28, 2018
Deferred tax assets, valuation allowance	$ 4,631,718		$ 4,631,718		$ 2,618,741
U.S. federal income tax rate			21.00%
Net operating loss ("NOL") carryforwards						$ 890,636
Percentage of carry forward year limited taxable income			80.00%
Income tax expense	$ 1,257,681	$ 114,642	$ 2,145,110	$ 114,642
Minimum
Operating Loss Carryforwards, Expiration Dates			Dec. 31, 2024
Maximum
Operating Loss Carryforwards, Expiration Dates			Dec. 31, 2039

Deposit-Type Contracts (Details

Deposit-Type Contracts (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Deposit Type Contracts [Abstract]
Beginning balance	$ 171,168,785	$ 7,234,927
US Alliance	547,193	657,986
Deposits received	279,537,157	161,392,700
Investment earnings (includes embedded derivative)	5,910,237	2,043,762
Withdrawals	(1,718,288)	(160,590)
Contract charges	(15,700)
Ending balance	$ 455,429,384	$ 171,168,785

Leases (Schedule of Supplementa

Leases (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($)	Sep. 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	$ 378,682	470,132
Total leased assets	378,682	473,045
Current:
Finance lease		1,860
Noncurrent:
Operating lease	428,851	524,248
Total leased liabilities	$ 428,851	$ 526,108

Leases (Schedule of Components

Leases (Schedule of Components of Leases Expenses) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease cost (General and administrative expense)	$ 2,077	$ 3,344	$ 6,654	$ 10,453
Finance lease cost:
Amortization of right of use assets		2,914	2,913	8,739
Interest on lease liabilities		$ 111	$ 111	$ 333

Leases (Schedule of Finance and

Leases (Schedule of Finance and Operating Leases Mature) (Details)	Sep. 30, 2020USD ($)
Operating Leases
2020 (excluding nine months ended September 30, 2020)	$ 40,345
2021	164,081
2022	156,608
2023	161,674
2024	13,508
Total remaining lease payments	$ 536,216

Leases (Schedule of Supplemen_2

Leases (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Cash payments
Operating cash flows from operating leases	$ (190)	$ (190)	$ (1,035)	$ (148)
Operating cash flows from finance leases	$ 1,164	1,164	4,657	2,328
Financing cash flows from finance leases		$ (111)	$ (111)	$ (333)

Leases (Schedule of Weighted Av

Leases (Schedule of Weighted Average Lease Term And Discount Rate) (Details)	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Weighted Average Remaining Term - Finance lease	0 years	3 months
Weighted Average Remaining Term - Operating lease	1 year 8 months 12 days	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) - Nebraska Department of Insurance - American Life and Security Corporation - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Statutory net income (loss)	$ 4,541,349	$ (149,247)
Capital and surplus	27,350,123		$ 19,507,325
Multi Year Guaranteed Annuity
Annuity sales	86,502,950	$ 79,500,172
Annuity sales pending	16,319,659
Fixed Index Annuity
Annuity sales	193,034,208
Annuity sales pending	$ 40,779,268

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions	Nov. 04, 2020	Nov. 03, 2020
Subsequent Events.
Authorized issuance of common stock		$ 50
SRC1
Subsequent Events.
Contributions to Trust Account	$ 4.5