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5. Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2019

Financial Instruments, Owned, at Fair Value [Abstract]

5. Fair Value of Financial Instruments

The Company uses the following methods and assumptions in estimating the fair value of financial instruments and real estate:

Equity securities, available-for-sale fixed income securities, held-to-maturity fixed income securities, and other investments:  Fair value disclosures for these investments are included in “Note 3 - Investments” and “Note 4 – Fair Value Measurements”.

Cash and cash equivalents: The carrying values of cash and cash equivalents approximate their fair values because of the short-term nature of these instruments.

Premiums receivable and reinsurance receivables:  The carrying values reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values due to the short-term nature of the assets.

Real estate: The estimated fair value was based on an appraisal prepared using the sales comparison approach, and accordingly the real estate is a Level 3 asset under the fair value hierarchy.

Reinsurance balances payable:  The carrying value reported in the consolidated balance sheets for these financial instruments approximates fair value.

The estimated fair values of the Company’s financial instruments and real estate as of December 31, 2019 and 2018 are as follows:

		December 31, 2019								December 31, 2018
		Carrying				Estimated				Carrying				Estimated
		Value				Fair Value				Value				Fair Value
Fixed-maturity securities-held-to maturity		$	3,825,952			$	4,124,767			$	4,222,855			$	4,426,416
Cash and cash equivalents		$	32,391,485			$	32,391,485			$	21,138,403			$	21,138,403
Premiums receivable, net		$	12,706,411			$	12,706,411			$	13,961,599			$	13,961,599
Reinsurance receivables, net		$	40,750,538			$	40,750,538			$	26,367,115			$	26,367,115
Real estate, net of accumulated depreciation		$	2,292,743			$	2,705,000			$	2,300,827			$	2,705,000
Reinsurance balances payable		$	11,714,724			$	11,714,724			$	1,933,376			$	1,933,376

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- Definition

Disclosure of accounting policy for determining the fair value of financial instruments.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 60
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7493716&loc=d3e21868-110260

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=118260190&loc=d3e13279-108611

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18780-107790

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- References

No definition available.

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