INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for the years ended December 31, 2022, 2021 and 2020 is made up of the following components:

	2022		2021		2020
Current – Federal	$	4,280,033	$	2,859,997	$	3,024,953
Current – State	289,345		595,915		205,779
Total Current	4,569,378		3,455,912		3,230,732
Deferred tax expense (benefit)	(151,474)		487,481		156,075
Total Provision	$	4,417,904	$	3,943,393	$	3,386,807

Schedule of Deferred Tax Assets and Liabilities

Temporary differences create deferred federal tax assets and liabilities, which are detailed below as of December 31, 2022 and 2021. As of December 31, 2022 net deferred tax assets of $3.1 million are included in other miscellaneous assets in the accompanying consolidated statements of financial position. As of December 31, 2021 net deferred tax liabilities of $6.6 million are included in accounts payable and accrued expenses in the accompanying consolidated statements of financial position.

	As Of December 31,
	2022		2021
Deferred Tax Assets:
Unearned Premium Reserves	$	2,042,304	$	2,239,933
Unrealized Loss (Gain) on
Marketable Debt Securities	7,018,205		—
SPAE Capitalization	31,643		33,713
STAT & Tax Reserve	643,782		671,836
Total Deferred Tax Assets	$	9,735,934	$	2,945,482
Deferred Tax Liabilities:
Insurance Commissions	(4,774,456)		(5,034,729)
Deferred Acquisition Cost Amortization	(1,554,166)		(1,637,230)
GAAP/STAT Premium Tax	(198,450)		(230,665)
Unrealized Loss (Gain) on
Marketable Debt Securities	—		(2,588,224)
Other	(66,235)		(69,944)
Total Deferred Tax Liabilities	(6,593,307)		(9,560,792)
Net Deferred Tax Asset (Liability)	$	3,142,627	$	(6,615,310)

Schedule of Income Tax Rate Reconciliation

The Company's effective tax rate for the years ended December 31, 2022, 2021 and 2020 is analyzed as follows.

	2022		2021		2020
Statutory Federal income tax rate	21.0	%	21.0	%	21.0	%
Tax effect of S corporation status	5.0		(11.3)		1.0
Tax exempt income	(5.9)		(2.4)		(5.5)
State income taxes	1.4		1.3		1.1
Effective Tax Rate	21.5	%	8.6	%	17.6	%