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Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue
 12 Months Ended
Dec. 31, 2020
Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue  
8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

Note 8 - Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

 

Deferred policy acquisition costs incurred and policy-related ceding commission revenue are deferred and amortized to income on property and casualty insurance business as follows:

 

 

 

 

 

 Years ended

 

 

 

 December 31,

 

 

 

 2020

 

 

 2019

 

 

 

 

 

 

Net deferred policy acquisition costs, net of ceding

 

 

 

 

 

 

commission revenue, beginning of year

 

$12,898,980

 

 

$15,221,060

 

 

 

 

 

 

 

 

 

 

Cost incurred and deferred:

 

 

 

 

 

 

 

 

Commissions and brokerage

 

 

32,279,848

 

 

 

32,541,094

 

Other underwriting and policy acquisition costs

 

 

8,526,003

 

 

 

9,423,340

 

Ceding commission revenue

 

 

(13,680,042)

 

 

(3,754,889)

Net deferred policy acquisition costs

 

 

27,125,809

 

 

 

38,209,545

 

Return of deferred ceding commission revenue

 

 

 

 

 

 

 

 

due to reduction of quota share

 

 

7,202,741

 

 

 

-

 

Additional deferred ceding commission revenue

 

 

 

 

 

 

 

 

due to inception of quota share

 

 

-

 

 

 

(6,740,202)

Amortization

 

 

(27,178,534)

 

 

(33,791,423)

 

 

 

7,150,016

 

 

 

(2,322,080)

 

 

 

 

 

 

 

 

 

Net deferred policy acquisition costs, net of ceding

 

 

 

 

 

 

 

 

commission revenue, end of year

 

$20,048,996

 

 

$12,898,980