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Note 15 - Reserves for Losses and Loss Adjustment Expenses
 9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Insurance Disclosure [Text Block]

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 nine months ended September 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

     943,706       693,750  

Prior year

     887,500       578,302  

Total incurred

     1,831,206       1,272,052  

Losses and LAE payments for claims arising in:

                

Current year

     100,277       1,065,955  

Prior years

     938,472       691,410  

Total payments

     1,038,749       1,757,365  
                 

Less reinsurance recoverable

     365,000       -  
                 

Losses and LAE at September 30,

   $ 1,808,983     $ 2,007,021  

 

For the nine months ended September 30, 2022, $938,472 was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There has been a $528 favorable prior year development during the nine months ended  September 30, 2022. Reserves remaining as of  September 30, 2022 for prior years are $887,500 as a result of re-estimation of unpaid losses and loss adjustment expenses. For the nine months ended September 30, 2021, $691,410 was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There was a $489,424 favorable prior year development during the nine months ended September 30, 2021. 

 

Reserves remaining as of September 30, 2021 for prior years were $578,302 as a result of re-estimation of unpaid losses and loss adjustment expenses. 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 were $365,000 at  September 30, 2022. At  September 30, 2021, we did not have any reinsurance recoverables recorded.