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Note 15 - Reserves for Losses and Loss Adjustment Expenses

3 Months Ended

Mar. 31, 2022

NOTE 15. 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 three months ended March 31:

	*2022*		*2021*
Losses and LAE at January 1	$	1,381,526	$	2,492,334

Provision for losses and LAE claims arising in:
Current year		201,795		249,778
Prior year		535,001		340,087
Total incurred		736,796		589,865
Losses and LAE payments for claims arising in:
Current year		33,550		228,305
Prior years		193,766		310,553
Total payments		227,316		538,858

Less reinsurance recoverable		315,000		-

Losses and LAE at March 31	$	1,576,006	$	2,543,341

For the three months ended March 31, 2022, $193,766 was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There has been a $24,526 unfavorable prior year development during the three months ended March 31, 2022. Reserves remaining as of March 31, 2022 for prior years are $535,001 as a result of re-estimation of unpaid losses and loss adjustment expenses. For the three months ended March 31, 2021, $310,553 was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There was a $190,553 unfavorable prior year development during the three months ended March 31, 2021.

Reserves remaining as of March 31, 2021 for prior years were $340,087 as a result of re-estimation of unpaid losses and loss adjustment expenses. In both periods, the 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 were $315,000 as of March 31, 2022. At March 31, 2021, we did not have any reinsurance recoverables recorded.