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Allowance for Expected Credit Losses (Tables) | 12 Months Ended
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Dec. 31, 2020
Credit Loss [Abstract] |
Allowance for credit losses on premiums receivable | Premiums Receivable The following table provides a roll forward of the allowance for expected credit losses of the Company’s premium receivables:
|  | December 31, 2020
|  | Premium Receivables, Net of Allowance |  | Allowance for Expected Credit Losses |
Balance at beginning of period |  | $ | 1,778,717 |  |  | $ | 21,003 |  |
Cumulative effect of accounting change (1) |  |  |  | 6,539 |  |
Change for provision of expected credit losses (2) |  |  |  | 10,239 |  |
Balance at end of period |  | $ | 2,064,586 |  |  | $ | 37,781 |  |
(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)” See note 3. (2) Amounts deemed uncollectible are written-off in operating expenses. For the 2020 period, amounts written off totaled $2.8 million.
Allowance for credit losses on reinsurance recoverable | The following table provides a roll forward of the allowance for expected credit losses of the Company’s reinsurance recoverables:
|  | December 31, 2020
|  | Reinsurance Recoverables, Net of Allowance |  | Allowance for Expected Credit Losses |
Balance at beginning of period |  | $ | 4,346,816 |  |  | $ | 1,364 |  |
Cumulative effect of accounting change (1) |  |  |  | 12,010 |  |
Change for provision of expected credit losses |  |  |  | (1,738) |  |
Balance at end of period |  | $ | 4,500,802 |  |  | $ | 11,636 |  |
(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)” See note 3.
Summary of reinsurance recoverables on paid and unpaid losses | The following table summarizes the Company’s reinsurance recoverables on paid and unpaid losses (not including ceded unearned premiums) at December 31, 2020 and 2019:
| December 31,
| 2020 |  | 2019
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | $ | 4,500,802 |  | $ | 4,346,816
% due from carriers with A.M. Best rating of “A-” or better | 63.9 | % |  | 61.2 | %
% due from all other carriers with no A.M. Best rating (1) | 36.1 | % |  | 38.8 | %
Largest balance due from any one carrier as % of total shareholders’ equity | 1.8 | % |  | 1.7 | %
(1) Over 94% of such amount is collateralized through reinsurance trusts, funds withheld arrangements, letters of credit or other.
Allowance for credit losses on contractholder receivables | The following table provides a roll forward of the allowance for expected credit losses of the Company’s contractholder receivables:
|  | December 31, 2020
|  | Contractholder Receivables, Net of Allowance |  | Allowance for Expected Credit Losses |
Balance at beginning of period |  | $ | 2,119,460 |  |  | $ | 0 |  |
Cumulative effect of accounting change (1) |  |  |  | 6,663 |  |
Change for provision of expected credit losses |  |  |  | 1,975 |  |
Balance at end of period |  | $ | 1,986,924 |  |  | $ | 8,638 |  |
(1) Adoption of ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)” See note 3

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- Definition Tabular disclosure of allowance for credit loss on right to consideration in exchange for good or service transferred to customer when right is conditioned on something other than passage of time. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=121599337&loc=SL82919249-210447 + Details
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- Definition Tabular disclosure of allowance for credit loss on premium receivable. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=121599337&loc=SL82919249-210447 + Details
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- Definition Tabular disclosure of allowance for credit loss on reinsurance recoverable. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=121599337&loc=SL82919249-210447 + Details
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- Definition Tabular disclosure of reinsurer or group of reinsurers for whom the entity has a concentration of credit risk. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 825 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=99380617&loc=SL75241803-196195 + Details
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