Receivables, Net

12 Months Ended

Dec. 31, 2021

Receivables, Net

Premiums, Commissions And Notes Receivable, Net

NOTE 7 – RECEIVABLES, NET

Receivables, net, include premium, commissions and notes receivable and are as follows:

	December 31
	2021			2020
Premium and commission receivable	$	672,284		$	2,476,679
Premium finance notes receivable		755,691			2,036,960
Total premium and notes receivable		1,427,975			4,513,639
Allowance for doubtful accounts		(223,962	)		(1,192,302	)
Receivables, net	$	1,204,013		$	3,321,337

Premium receivable and premium finance notes receivables are substantially secured by unearned premiums and funds held as security for performance.  Premium finance notes receivable represents the balance due to AAC, the Company's premium finance subsidiary, from policyholders who elected to finance their premium over a nine-month term.  These notes are net of unearned finance charges and credit loss reserves.  

Bad debt recoveries were $167,532, related to previously written off balances, and bad debt expense was $6,451 for the years ended December 31, 2021 and 2020, respectively.