"Preferred Physicians Medical RRG","PNC QS","2024 06 30" Annual Statutory Statement

Current Statement Date

4

1

2

3

December 31

Net Admitted Assets

Prior Year Net

Assets

Nonadmitted Assets

(Cols. 1 - 2)

Admitted Assets

1. Bonds

11,254,818

11,254,818

11,273,336

$

0

encumbrances)

4.2 Properties held for the production of income

(less $

0 encumbrances)

4.3 Properties held for sale (less

$

0

encumbrances)

5.

Cash ($

(310,535) ),

cash equivalents ($

2,898,353

)

and short-term investments ($

0

)

2,587,818

2,587,818

5,727,736

6.

Contract loans (including $

0

premium notes)

12.

Subtotals, cash and invested assets (Lines 1 to 11)

13,842,636

13,842,636

17,001,072

13.

Title plants less $

0 charged off (for Title insurers

only)

14.

Investment income due and accrued

12,381

12,381

30,450

15.

Premiums and considerations:

15.1 Uncollected premiums and agents' balances in the course of

collection

6,709,977

6,709,977

10,996,867

15.2 Deferred premiums, agents' balances and installments booked but

deferred and not yet due (including $

0 earned

but unbilled premiums)

15.3 Accrued retrospective premiums

($

0 ) and

contracts subject to redetermination ($

0 )

16.

Reinsurance:

16.1 Amounts recoverable from reinsurers

336,401

336,401

303,991

($

0 )

24. Health care ($

0 ) and other amounts receivable

Protected Cell Accounts (Lines 12 to 25)

20,901,395

20,901,395

28,332,380

27.

From Separate Accounts, Segregated Accounts and Protected

Cell Accounts

28.

Total (Lines 26 and 27)

20,901,395

20,901,395

28,332,380

1

2

Current

December 31,

Statement Date

Prior Year

1.

Losses (current accident year $

0

)

2.

Reinsurance payable on paid losses and loss adjustment expenses

3.

Loss adjustment expenses

3,200,561

3,200,561

4.

Commissions payable, contingent commissions and other similar charges

5.

Other expenses (excluding taxes, licenses and fees)

629,576

1,566,401

6.

Taxes, licenses and fees (excluding federal and foreign income taxes)

272,018

407,100

7.1Current federal and foreign income taxes (including $

0

on realized capital gains (losses))

7.2 Net deferred tax liability

8.

Borrowed money $

0 and interest thereon $

0

9.

Unearned premiums (after deducting unearned premiums for ceded reinsurance of $

21,410,558 and

including warranty reserves of $

0 and accrued accident and health experience rating refunds

including $

0 for medical loss ratio rebate per the Public Health Service Act)

10.

Advance premium

348,101

737,775

12.

Ceded reinsurance premiums payable (net of ceding commissions)

10,176,966

16,085,148

13.

Funds held by company under reinsurance treaties

14.

Amounts withheld or retained by company for account of others

195,452

258,974

15.

Remittances and items not allocated

16.

Provision for reinsurance (including $

0 certified)

19. Payable to parent, subsidiaries and affiliates

1,078,721

1,076,421

24.

Capital notes $

0 and interest thereon $

0

25.

Aggregate write-ins for liabilities

26.

Total liabilities excluding protected cell liabilities (Lines 1 through 25)

15,901,395

23,332,380

27.

Protected cell liabilities

28.

Total liabilities (Lines 26 and 27)

15,901,395

23,332,380

33. Surplus notes

5,000,000

5,000,000

36.1

0

shares common (value included in Line 30

$

0

)

36.2

0

shares preferred (value included in Line 31

$

0

)

37.

Surplus as regards policyholders (Lines 29 to 35, less 36)

5,000,000

5,000,000

38.

Totals (Page 2, Line 28, Col. 3)

20,901,395

28,332,380

1

2

3

Current Year

Prior Year

Prior Year Ended

to Date

to Date

December 31

1.

Premiums earned:

UNDERWRITING INCOME

1.1

Direct (written $

11,617,236

)

16,050,968

15,355,186

32,821,947

1.2

Assumed (written $

0 )

1.3

Ceded (written $

11,617,236

)

16,050,968

15,355,186

32,821,947

1.4

Net (written $

0

)

2.

DEDUCTIONS:

Losses incurred (current accident year $

6,585,690 ):

2.1 Direct

5,896,995

3,647,752

4,138,568

2.2 Assumed

2.3 Ceded

5,896,995

3,647,752

4,138,568

3.

2.4 Net

Loss adjustment expenses incurred

1,102,994

1,105,573

2,037,396

4.

Other underwriting expenses incurred

(822,261)

(811,508)

(1,472,924)

5.

Aggregate write-ins for underwriting deductions

6.

Total underwriting deductions (Lines 2 through 5)

280,733

294,065

564,472

7.

Net income of protected cells

8.

Net underwriting gain (loss) (Line 1 minus Line 6 + Line 7)

(280,733)

(294,065)

(564,472)

9.

Net investment income earned

INVESTMENT INCOME

215,135

290,016

508,672

10.

Net realized capital gains (losses) less capital gains tax of $

0

11.

Net investment gain (loss) (Lines 9 + 10)

215,135

290,016

508,672

12.

OTHER INCOME

Net gain or (loss) from agents' or premium balances charged off

13.

(amount recovered $

0

amount charged off $

0 )

Finance and service charges not included in premiums

14.

Aggregate write-ins for miscellaneous income

65,598

74,608

15.

Total other income (Lines 12 through 14)

65,598

74,608

16.

Net income before dividends to policyholders, after capital gains tax and before all other federal

and foreign income taxes (Lines 8 + 11 + 15)

(4,049)

18,808

19.

and foreign income taxes (Line 16 minus Line 17)

(4,049)

18,808

Federal and foreign income taxes incurred

(4,049)

18,808

20.

Net income (Line 18 minus Line 19)(to Line 22)

21.

CAPITAL AND SURPLUS ACCOUNT

Surplus as regards policyholders, December 31 prior year

5,000,000

5,000,000

5,000,000

39.

Surplus as regards policyholders, as of statement date (Lines 21 plus 38)

5,000,000

5,000,000

5,000,000

0501.

DETAILS OF WRITE-INS

0502.

0503.

0598.

Summary of remaining write-ins for Line 5 from overflow page

0599.

TOTALS (Lines 0501 through 0503 plus 0598) (Line 5 above)

1401.

MIscellaneous Income

65,598

74,608

1402.

1403.

1498.

Summary of remaining write-ins for Line 14 from overflow page

1499.

TOTALS (Lines 1401 through 1403 plus 1498) (Line 14 above)

65,598

74,608

3701.

3702.

3703.

3798.

Summary of remaining write-ins for Line 37 from overflow page

3799.

TOTALS (Lines 3701 through 3703 plus 3798) (Line 37 above)

1

2

3

Current Year

Prior Year

Prior Year Ended

To Date

To Date

December 31

1.

Cash from Operations

Premiums collected net of reinsurance

(2,010,966)

(2,371,549)

283,606

2.

Net investment income

239,805

297,204

578,180

3.

Miscellaneous income

65,598

74,608

4.

Total (Lines 1 to 3)

(1,705,563)

(2,074,345)

936,394

5.

Benefit and loss related payments

32,410

1,796,237

(269,384)

6.

Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts

7.

Commissions, expenses paid and aggregate write-ins for deductions

1,413,860

1,248,394

990,759

8.

Dividends paid to policyholders

9.

Federal and foreign income taxes paid (recovered) net of $

0 tax on capital

10.

gains (losses)

(81,009)

Total (Lines 5 through 9)

1,446,270

3,044,631

640,366

11.

Net cash from operations (Line 4 minus Line 10)

(3,151,833)

(5,118,976)

296,028

12.

Cash from Investments

Proceeds from investments sold, matured or repaid:

12.1

Bonds

850,000

12.2

Stocks

12.3

Mortgage loans

12.4

Real estate

12.5

Other invested assets

12.6

Net gains or (losses) on cash, cash equivalents and short-term investments

12.7

Miscellaneous proceeds

13.

12.8

Total investment proceeds (Lines 12.1 to 12.7)

850,000

Cost of investments acquired (long-term only):

13.1

Bonds

838,084

13.2

Stocks

13.3

Mortgage loans

13.4

Real estate

13.5

Other invested assets

13.6

Miscellaneous applications

14.

13.7

Total investments acquired (Lines 13.1 to 13.6)

838,084

Net increase/(decrease) in contract loans and premium notes

15.

Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)

11,916

16.

Cash from Financing and Miscellaneous Sources

Cash provided (applied):

16.1

Surplus notes, capital notes

16.2

Capital and paid in surplus, less treasury stock

16.3

Borrowed funds

16.4

Net deposits on deposit-type contracts and other insurance liabilities

16.5

Dividends to stockholders

16.6

Other cash provided (applied)

17.

Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5

plus Line 16.6)

18.

RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)

(3,139,917)

(5,118,976)

296,028

19.

Cash, cash equivalents and short-term investments:

19.1

Beginning of year

5,727,735

5,431,707

5,431,707

19.2

End of period (Line 18 plus Line 19.1)

2,587,818

312,731

5,727,735

127(672),1$1&,$/67$7(0(176

Year-to-date period ended

NET INCOME

SSAP

F/S

F/S

June 30,

December 31,

#

Page

Line #

2024

2023

(1)

State basis (Page 4, Line 20, Columns 1 & 3)

XXX

XXX

XXX

$

-

$

-

(2)

State Prescribed Practices that are an increase/

-

-

(decrease) from NAIC SAP:

(3)

State Permitted Practices that are an increase/

-

-

(decrease) from NAIC SAP:

(4)

NAIC SAP (1-2-3=4)

XXX

XXX

XXX

$

-

$

-

SURPLUS

(5)

State basis (Page 3, Line 37, Columns 1 & 2)

XXX

XXX

XXX

$

5,000,000

$

5,000,000

(6)

State Prescribed Practices that are an increase/

-

-

(decrease) from NAIC SAP:

(7)

State Permitted Practices that are an increase/

-

-

(decrease) from NAIC SAP:

(8)

NAIC SAP (5-6-7=8)

XXX

XXX

XXX

$

5,000,000

$

5,000,000

127(672),1$1&,$/67$7(0(176

Gross (Admitted & Nonadmitted) Restricted

Current Year

Current Year

Percentage

1

2

3

4

5

6

7

8

9

10

11

G/A

Total

Protected

Cell

Admitted

Total

Supporting

Protected

Account

Total

Gross

Protected

Cell

Assets

Increase/

Total

Restricted

Restricted Asset Category

General

Cell

Account

Supporting

Total

Total From

Admitted

Restricted

to Total

Account

Account

Restricted

G/A

(Decrease)

Nonadmitted

Restricted

to Total

Admitted

(G/A)

Activity (a)

Assets

Activity (b)

(1 plus 3)

Prior Year

(5 minus 6)

Restricted

(5 minus 8)

Assets (c)

Assets (d)

a. Subject to contractual

obligation for which

liability is not shown

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

-

-

b. Collateral held under

security lending

agreements

-

-

-

-

-

-

-

-

$

-

-

-

c. Subject to repurchase

agreements

-

-

-

-

-

-

-

-

$

-

-

-

d. Subject to reverse

repurchase agreements

-

-

-

-

-

-

-

-

$

-

-

-

e. Subject to dollar

repurchase agreements

-

-

-

-

-

-

-

-

$

-

-

-

f. Subject to dollar

-

-

-

-

-

-

-

-

$

-

-

-

reverse repurchase

agreements

g. Placed under option

contracts

-

-

-

-

-

-

-

-

$

-

-

-

h. Letter stock or

securities restricted as

to sale - excluding FHLB

capital stock

-

-

-

-

-

-

-

-

$

-

-

-

i. FHLB capital stock

-

-

-

-

-

-

-

-

$

-

-

-

j. On deposit with states

834,965

-

-

-

834,965

850,003

(15,038)

-

$

834,965

4.0 %

4.0 %

k. On deposit with other

regulatory bodies

-

-

-

-

-

-

-

-

$

-

-

-

l. Pledged as collateral

to FHLB (including

assets backing funding

agreements)

-

-

-

-

-

-

-

-

$

-

-

-

m. Pledged as collateral

not captured in other

categories

-

-

-

-

-

-

-

-

$

-

-

-

n. Other restricted

assets

-

-

-

-

-

-

-

-

$

-

-

-

o. Total Restricted

Assets

$

834,965

$

-

$

-

$

-

$

834,965

$

850,003

$

(15,038)

$

-

$

834,965

4.0 %

4.0 %

127(672),1$1&,$/67$7(0(176

Interest Income Due and Accrued

Amount

1.

Gross

$

12,381

2.

Nonadmitted

$

-

3.

Admitted

$

12,381 .

127(672),1$1&,$/67$7(0(176

Note 9 - Income Taxes

A. The components of the net deferred tax asset/(liability) at June 30 are as follows:

1.

Change between years

6/30/2024

12/31/2023

Change

by tax character

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(Col 1+2)

(Col 4+5)

(Col 1-4)

(Col 2-5)

(Col 7+8)

Ordinary

Capital

Total

Ordinary

Capital

Total

Ordinary

Capital

Total

(a)

Gross Deferred Tax Assets

$

82,078

$

-

$

82,078

$

86,269

$

-

$

86,269

$

(4,191)

$

-

$

(4,191)

(b)

Statutory Valuation Allowance

79,343

-

79,343

82,692

-

82,692

(3,349)

-

(3,349)

Adjustments

(c)

Adjusted Gross Deferred Tax

2,735

-

2,735

3,577

-

3,577

(842)

-

(842)

Assets (1a - 1b)

(d)

Deferred Tax Assets

-

-

-

-

-

-

-

-

-

Nonadmitted

(e)

Subtotal Net Admitted

2,735

-

2,735

3,577

-

3,577

(842)

-

(842)

Deferred Tax Asset (1c - 1d)

(f)

Deferred Tax Liabilities

2,735

-

2,735

3,577

-

3,577

(842)

-

(842)

(g)

Net Admitted Deferred Tax

Asset/(Net Deferred Tax

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Liability)(1e-1f)

2.

Admission Calculation

6/30/2024

12/31/2023

Change

Components SSAP No. 101

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(Col 1+2)

(Col 4+5)

(Col 1-4)

(Col 2-5)

(Col 7+8)

Ordinary

Capital

Total

Ordinary

Capital

Total

Ordinary

Capital

Total

(a)

Federal Income Taxes Paid in

Prior Years Recoverable

Through Loss Carrybacks

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

(b)

Adjusted Gross Deferred Tax

Assets Expected To Be

Realized (Lesser of 2(b)1 and

2(b)2 Below)

$

2,735

$

-

$

2,735

$

3,577

$

-

$

3,577

$

(842)

$

-

$

(842)

1.

Adjusted Gross Deferred

Tax Assets Expected To

Be Realized Following the

$

2,735

$

-

$

2,735

$

3,577

$

-

$

3,577

$

(842)

$

-

$

(842)

Balance Sheet Date

2.

Adjusted Gross Deferred

Tax Assets Allowed per

XXX

XXX

$

750,000

XXX

XXX

$

750,000

XXX

XXX

$

-

Limitation Threshold

(c)

Adjusted Gross Deferred Tax

Assets Offset by Gross

Deferred Tax Liabilities

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

SSAP No. 101

$

2,735

$

- $

2,735

$

3,577

$

- $

3,577

$

(842)

$

- $

(842)

4. Impact of tax-planning strategies

6/30/2024

12/31/2023

Change

(1)

(2)

(3)

(4)

(5)

(6)

(Col 1-3)

(Col 2-4)

Ordinary

Capital

Ordinary

Capital

Ordinary

Capital

1 Adjusted Gross DTAs Amount From Note 9A1(c)

$

2,735

$

- $

3,577

$

- $

(842)

$

-

Strategies

-

-

-

-

-

-

3

Net Admitted Adjusted Gross DTAs Amount From

2,735

-

3,577

-

(842)

-

Note 9A1(e)

4

Percentage Of Net Admitted Adjusted Gross DTAs By

Tax Character Admitted Because Of The Impact Of

-

-

-

-

-

-

Tax Planning Strategies

(b) Does the Company's tax-planning strategies include the use of reinsurance?

No

127(672),1$1&,$/67$7(0(176

(1)

(2)

(3)

(Col 1-2)

6/30/2024

12/31/2023

Change

1.

Current Income Tax

(a)

Federal

$

-

$

-

$

-

(b)

Foreign

-

-

-

(c)

Subtotal (1a+1b)

-

-

-

(d)

Federal income tax on net capital gains

-

-

-

(e)

Utilization of capital loss carry-forwards

-

-

-

(f)

Other

-

18,808

(18,808)

(g)

Federal and foreign income taxes incurred (1c+1d+1e+1f)

$

-

$

18,808

$

(18,808)

2.

Deferred Tax Assets:

(a)

Ordinary

(1)

Discounting of unpaid losses

$

49,667

$

49,667

$

-

(2)

Unearned premium reserve

14,620

30,987

(16,367)

(3)

Policyholder reserves

-

-

-

(4)

Investments

-

-

-

(5)

Deferred acquisition costs

-

-

-

(6)

Policyholder dividends accrual

-

-

-

(7)

Fixed assets

-

-

-

(8)

Compensation and benefits accrual

-

-

-

(9)

Pension accrual

-

-

-

(10)

Receivables - nonadmitted

-

-

-

(11)

Net operating loss carry-forward

17,791

5,615

12,176

(12)

Tax credit carry-forward

-

-

-

(13)

Other

-

-

-

(99) Subtotal (sum of 2a1 through 2a13)

$

82,078

$

86,269

$

(4,191)

(b)

Statutory valuation allowance adjustment

79,343

82,692

(3,349)

(c)

Nonadmitted

-

-

-

(d)

Admitted ordinary deferred tax assets (2a99 - 2b - 2c)

$

2,735

$

3,577

$

(842)

(e)

Capital

(1)

Investments

$

-

$

-

$

-

(2)

Net capital loss carry-forward

-

-

-

(3)

Real estate

-

-

-

(4)

Other

-

-

-

(99) Subtotal (2e1+2e2+2e3+2e4)

$

-

$

-

$

-

(f)

Statutory valuation allowance adjustment

-

-

-

(g)

Nonadmitted

-

-

-

(h)

Admitted capital deferred tax assets (2e99 - 2f - 2g)

$

-

$

-

$

-

(i)

Admitted deferred tax assets (2d + 2h)

$

2,735

$

3,577

$

(842)

3.

Deferred Tax Liabilities:

(a)

Ordinary

(1)

Investments

$

-

$

-

$

-

(2)

Fixed assets

-

-

-

(3)

Deferred and uncollected premium

-

-

-

(4)

Policyholder reserves

-

-

-

(5)

Other

2,735

3,577

(842)

(99) Subtotal (3a1+3a2+3a3+3a4+3a5)

$

2,735

$

3,577

$

(842)

(b)

Capital

(1)

Investments

$

-

$

-

$

-

(2)

Real estate

-

-

-

(3)

Other

-

-

-

(99) Subtotal (3b1+3b2+3b3)

$

-

$

-

$

-

(c)

Deferred tax liabilities (3a99 + 3b99)

$

2,735

$

3,577

$

(842)

4.

Net deferred tax assets/liabilities (2i - 3c)

$

- $

- $

-