XML 35 R22.htm IDEA: XBRL DOCUMENT v3.22.1
Note 16 - Reserves for Losses and Loss Adjustment Expenses
 12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Insurance Disclosure [Text Block]

NOTE 16.

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:

 

  

2021

  

2020

 

Losses and LAE at January 1

 $2,492,334  $1,203,493 
         

Provision for losses and LAE claims arising in:

        

Current year

  698,075   2,221,844 

Prior year

  664,229   794,622 

Total incurred

  1,362,304   3,016,466 

Losses and LAE payments for claims arising in:

        

Current year

  1,259,276   1,182,375 

Prior years

  873,836   444,630 

Total payments

  2,133,112   1,627,005 
         

Less reinsurance recoverable

  340,000   100,620 
         

Losses and LAE at December 31

 $1,381,526  $2,492,334 

 

For the year ended December 31, 2021, $873,836 was paid for incurred losses and loss adjustment expenses attributable to insured events of prior years. There has been a $1,170,001 favorable prior year development during the year ended December 31, 2021. Reserves remaining as of December 31, 2021, for prior years are $664,229 as a result of re-estimation of unpaid losses and loss adjustment expenses. For the year ended December 31, 2020, $444,630 was paid for incurred losses and loss adjustment expenses attributable to insured events of prior years. There was a $167,000 favorable prior year development during the year ended December 31, 2020.

 

Reserves remaining as of December 31, 2020, for prior years were $794,622 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 defaults in the default inventory, including the impact of previously identified defaults that cured. Original estimates are increased or decreased as additional information becomes known regarding individual losses. At December 31, 2021 and 2020 reinsurance recoverables were $340,000 and $100,620, respectively.