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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2020

Income Taxes

Schedule of deferrred tax assets and liabilities

		September 30,				December 31,
		2020				2019

Deferred tax asset:
Net operating loss carryovers (1)		$	55,845			$	1,586,247
Claims reserve discount			779,554				839,959
Unearned premium			3,185,331				3,105,344
Deferred ceding commission revenue			1,513,500				1,624,434
Other			491,402				462,019
Total deferred tax assets			6,025,632				7,618,003

Deferred tax liability:
Investment in KICO (2)			759,543				759,543
Deferred acquisition costs			4,182,428				4,333,219
Intangible asset			105,000				105,000
Depreciation and amortization			369,570				312,298
Net unrealized gains of securities - available-for-sale			2,581,873				1,796,891
Total deferred tax liabilities			7,998,414				7,306,951

Net deferred income tax (liability) asset		$	(1,972,782	)		$	311,052

Schedule of losses subject to annual limitation

		September 30,				December 31,
Type of NOL		2020				2019				Expiration

Federal only, current year		$	-			$	1,517,866			(A)

State only (B)			1,864,863				1,616,568			December 31, 2040
Valuation allowance			(1,809,018	)			(1,548,187	)
State only, net of valuation allowance			55,845				68,381

Total deferred tax asset from net operating loss carryovers		$	55,845			$	1,586,247