Note 7 - Deferred Acquisition Costs

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Deferred Policy Acquisition Costs [Text Block]

NOTE 7 DEFERRED ACQUISITION COSTS

Deferred acquisition costs consist primarily of commissions and agency expenses incurred directly related to the acquisition of vehicle service agreements and are amortized over the period, and using the same pattern, in which the related revenues are earned.

The components of deferred acquisition costs and the related amortization expense for the three and nine months ended September 30, 2021 and September 30, 2020 are comprised as follows:

(in thousands)	Three months ended September 30,						Nine months ended September 30,
	2021			2020			2021			2020
Beginning balance, net	$	9,106		$	8,750		$	8,835		$	8,604
Additions		1,297			1,390			4,335			3,644
Amortization		(1,356	)		(1,248	)		(4,123	)		(3,356	)
Balance at September 30, net	$	9,047		$	8,892		$	9,047		$	8,892