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Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

12 Months Ended

Dec. 31, 2021

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,
	2021			2020

Net deferred policy acquisition costs, net of deferred ceding commission revenue, beginning of year	$	20,048,996		$	12,898,980

Cost incurred and deferred:
Commissions and brokerage		35,128,938			32,279,848
Other underwriting and policy acquisition costs		8,841,557			8,526,003
Ceding commission revenue		(7,257,909	)		(13,680,042	)
Net deferred policy acquisition costs		36,712,586			27,125,809
Return of deferred ceding commission revenue due to termination of quota share		-			7,202,741
Additional deferred ceding commission revenue due to inception of quota share		(9,686,577	)		-
Amortization		(34,584,526	)		(27,178,534	)
		(7,558,517	)		7,150,016

Net deferred policy acquisition costs, net of deferred ceding commission revenue, end of year	$	12,490,479		$	20,048,996

Deferred policy acquisition costs and deferred ceding commission revenue as of December 31, 2021 and 2020 are as follows:

	December 31,
	2021			2020

Deferred policy acquisition costs	$	22,238,987		$	20,142,515
Deferred ceding commission revenue		(9,748,508	)		(93,519	)
Balance at end of period	$	12,490,479		$	20,048,996