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Note 17 - Reserves for Losses and Loss Adjustment Expenses

12 Months Ended

Dec. 31, 2020

NOTE 17.

RESERVES FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses ("LAE") for the years ended December 31:

	*2020*		*2019*
Losses and LAE at beginning of year	$	1,203,493	$	360,514

Provision for losses and LAE claims arising in:
Current year		2,221,844		1,590,858
Prior year		694,002		123,044
Total incurred		2,915,846		1,713,902
Losses and LAE payments for claims arising in:
Current year		1,182,375		856,778
Prior years		444,630		14,145
Total payments		1,627,005		870,923

Losses and LAE at end of year	$	2,492,334	$	1,203,493

For the year ended December 31, 2020, $444,630 was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There has been a $168,846 favorable prior year development during the year ended December 31, 2020. Reserves remaining as of December 31, 2020 for prior years are $694,002 as a result of re-estimation of unpaid losses and loss adjustment expenses. For the year ended December 31, 2019, $14,145 was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There was a $223,137 favorable prior year development during the year ended December 31, 2019.

Reserves remaining as of December 31, 2019 for prior years were $123,044 as a result of re-estimation of unpaid losses and loss adjustment expenses. In both periods, the favorable prior years' loss development was the result of a re-estimation of amounts ultimately to be paid on prior year losses and loss adjustment expense. Original estimates are increased or decreased as additional information becomes known regarding individual claims. Reinsurance recoverables of $100,620 and $120,000 are included within Loss and Loss Adjustment Reserves as of December 31, 2020 and 2019, respectively.