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Note 15 - Reserves for Losses and Loss Adjustment Expenses

6 Months Ended

Jun. 30, 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 six months ended June 30:

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

Provision for losses and LAE claims arising in:
Current year		598,182		491,320
Prior year		485,001		517,087
Total incurred		1,083,183		1,008,407
Losses and LAE payments for claims arising in:
Current year		120,993		1,038,694
Prior years		814,549		745,574
Total payments		935,542		1,784,268

Less reinsurance recoverable		315,000		-

Losses and LAE at June 30	$	1,214,167	$	1,716,473

For the six months ended June 30, 2022, $814,549 was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There has been a $24,549 unfavorable prior year development during the six months ended June 30, 2022. Reserves remaining as of June 30, 2022 for prior years are $485,001 as a result of re-estimation of unpaid losses and loss adjustment expenses. For the six months ended June 30, 2021, $745,574 was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There was a $640,973 favorable prior year development during the six months ended June 30, 2021.

Reserves remaining as of June 30, 2021 for prior years were $517,087 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 at June 30, 2022. At June 30, 2021, we did not have any reinsurance recoverables recorded.