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Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Measurements

4 - Fair Value Measurements

Note 4 - Fair Value Measurements

The following table presents information about the Company’s investments that are measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020 indicating the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

		September 30, 2021
		Level 1				Level 2				Level 3				Total

Fixed-maturity securities available-for-sale
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies		$	2,006,880			$	-			$	-			$	2,006,880

Political subdivisions of
States, Territories and
Possessions			-				14,554,305				-				14,554,305

Corporate and other
bonds industrial and
miscellaneous			94,403,401				1,019,580				-				95,422,981

Residential mortgage backed securities			-				41,305,076				-				41,305,076
Total fixed maturities			96,410,281				56,878,961				-				153,289,242
Equity securities			40,060,872				-				-				40,060,872
Total investments		$	136,471,153			$	56,878,961			$	-			$	193,350,114

		December 31, 2020
		Level 1				Level 2				Level 3				Total

Fixed-maturity securities available-for-sale
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies		$	3,049,900			$	-			$	-			$	3,049,900

Political subdivisions of
States, Territories and
Possessions			-				5,643,102				-				5,643,102

Corporate and other
bonds industrial and
miscellaneous			118,123,890				2,070,439				-				120,194,329

Residential mortgage and other asset backed securities			-				28,661,941				-				28,661,941
Total fixed maturities			121,173,790				36,375,482				-				157,549,272
Equity securities			34,413,313				-				-				34,413,313
Total investments		$	155,587,103			$	36,375,482			$	-			$	191,962,585

The following table sets forth the Company’s investment in a hedge fund and real estate limited partnership both measured at Net Asset Value (“NAV”) per share as of September 30, 2021 and December 31, 2020. The Company measures these investments at fair value on a recurring basis. Fair value using NAV per share is as follows as of the dates indicated:

Category		September 30, 2021				December 31, 2020

Other Investments:
Hedge fund		$	7,379,111			$	3,368,626

Real estate limited partnership			-				150,000
Total		$	7,379,111			$	3,518,626

The hedge fund investment is generally redeemable with at least 45 days prior written notice. The hedge fund investment is accounted for as a limited partnership by the Company. Income is earned based upon the Company’s allocated share of the partnership's changes in unrealized gains and losses to its partners. Such amounts have been recorded in the condensed consolidated statements of operations and comprehensive income (loss) within net gains (losses) on investments.

The estimated fair value and the level of the fair value hierarchy of the Company’s long-term debt as of September 30, 2021 and December 31, 2020 not measured at fair value is as follows:

		September 30, 2021
		Level 1				Level 2				Level 3				Total
Long-term debt

Senior Notes due 2022		$	-			$	27,296,810			$	-			$	27,296,810

		December 31, 2020
		Level 1				Level 2				Level 3				Total
Long-term debt

Senior Notes due 2022		$	-			$	27,272,727			$	-			$	27,272,727

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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