First Acceptance : Annual Statutory Basis Financial Statements - FAIC - GA

*11508202120100100*

PROPERTY AND CASUALTY COMPANIES-ASSOCIATION EDITION

ANNUAL STATEMENT

For the Year Ended December 31, 2021

OF THE CONDITION AND AFFAIRS OF THE

First Acceptance Insurance Company of Georgia, Inc.

NAIC Group Code

3362

,

3362

NAIC Company Code

11508

Employer's ID Number

75-3060573

(Current Period)

(Prior Period)

Organized under the Laws of

Georgia

, State of Domicile or Port of Entry

Georgia

Country of Domicile

United States

Incorporated/Organized

09/19/2002

Commenced Business

10/03/2002

Statutory Home Office

4290 Bells Ferry Road, Suite 142

,

Kennesaw, GA, US 30144

(Street and Number)

(City or Town, State, Country and Zip Code)

Main Administrative Office

3813 Green Hills Village Drive

Nashville, TN, US 37215

615-327-4888

(Street and Number)

(City or Town, State, Country and Zip Code)

(Area Code)

(Telephone Number)

Mail Address

3813 Green Hills Village Drive

,

Nashville, TN, US 37215

(Street and Number or P.O. Box)

(City or Town, State, Country and Zip Code)

Primary Location of Books and Records

3813 Green Hills Village Drive

Nashville, TN, US 37215

615-327-4888

(Street and Number)

(City or Town, State, Country and Zip Code)

(Area Code) (Telephone Number)

Internet Web Site Address

N/A

Statutory Statement Contact

Michael John Bodayle

615-844-2907

[e-mail]

(Name)

(Area Code) (Telephone Number) (Extension)

615-844-2806

(E-Mail Address)

(Fax Number)

OFFICERS

Name

Title

Name

Title

Larry Emmett Willeford

,

President

Michael John Bodayle

,

Treasurer

Michael John Bodayle

,

Secretary

,

,

OTHER OFFICERS

,

DIRECTORS OR TRUSTEES

Larry Emmett Willeford

Michael John Bodayle

Christopher Patrick Wills

State of

Tennessee

ss

County of

Davidson

The officers of this reporting entity, being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.

	Larry Emmett Willeford				Michael John Bodayle				Michael John Bodayle
	President				Treasurer	a. Is this an original filing?	Secretary
									Yes [ X ] No [ ]
Subscribed and sworn to before me					b. If no:
this		day of	February, 2022		1.	State the amendment number
								2.	Date filed
								3. Number of pages attached

Jennifer L. Johnson, Director-Operations Services

March 7, 2023

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE First Acceptance Insurance Company of Georgia, Inc.

ASSETS

		Current Year		Prior Year
	1	2	3	4
			Net Admitted Assets	Net Admitted
	Assets	Nonadmitted Assets	(Cols. 1 - 2)	Assets
1. Bonds (Schedule D)	33,499,462		33,499,462	41,473,075

2. Stocks (Schedule D):

2.1	Preferred stocks	2,750,000	2,750,000	2,932,600
2.2	Common stocks	1,665,000	1,665,000	1,137,000

3. Mortgage loans on real estate (Schedule B):

3.1	First liens	0	0
3.2	Other than first liens	0	0

4. Real estate (Schedule A):

4.1 Properties occupied by the company (less

	$	encumbrances)			0	0
	4.2 Properties held for the production of income
	(less $	encumbrances)			0	0
	4.3 Properties held for sale (less
	$	encumbrances)			0	0
5.	Cash ($	6,710,542 , Schedule E-Part 1), cash equivalents
	($	14,359,437 , Schedule E-Part 2) and short-term
	investments ($	0	, Schedule DA)	21,069,979		21,069,979	7,743,265
6.	Contract loans (including $	premium notes)			0	0
7.	Derivatives (Schedule DB)		0		0	0
8.	Other invested assets (Schedule BA)		0		0	0
9.	Receivables for securities				0	0
10.	Securities lending reinvested collateral assets (Schedule DL)			0	0
11.	Aggregate write-ins for invested assets		0	0	0	0
12.	Subtotals, cash and invested assets (Lines 1 to 11)	58,984,441	0	58,984,441	53,285,941
13.	Title plants less $		charged off (for Title insurers
	only)					0	0
14.	Investment income due and accrued		164,640		164,640	181,082

15. Premiums and considerations:

15.1 Uncollected premiums and agents' balances in the course of

	collection	241,692		241,692	171,342
	15.2	Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including $	earned
	but unbilled premiums)	15,189,121		15,189,121	17,527,451
	15.3 Accrued retrospective premiums ($	) and
	contracts subject to redetermination ($	)		0	0
16.	Reinsurance:
	16.1	Amounts recoverable from reinsurers	3,676,555		3,676,555	2,784,550
	16.2	Funds held by or deposited with reinsured companies			0	0
	16.3	Other amounts receivable under reinsurance contracts			0	0
17.	Amounts receivable relating to uninsured plans			0	0
18.1	Current federal and foreign income tax recoverable and interest thereon		0	0
18.2	Net deferred tax asset	2,419,518	1,445,077	974,441	1,343,877
19.	Guaranty funds receivable or on deposit			0	0
20.	Electronic data processing equipment and software			0	0

21. Furniture and equipment, including health care delivery assets

	($	)			0	0
22.	Net adjustment in assets and liabilities due to foreign exchange rates			0	0
23.	Receivables from parent, subsidiaries and affiliates			0	4,415,622
24.	Health care ($	) and other amounts receivable			0	0
25.	Aggregate write-ins for other-than-invested assets	259,846	259,846	0	0

26. Total assets excluding Separate Accounts, Segregated Accounts and

Protected Cell Accounts (Lines 12 to 25)

80,935,813

1,704,923

79,230,890

79,709,865

27. From Separate Accounts, Segregated Accounts and Protected

	Cell Accounts			0	0
28.	Total (Lines 26 and 27)	80,935,813	1,704,923	79,230,890	79,709,865
DETAILS OF WRITE-INS
1101.				0	0
1102.				0	0
1103.				0	0
1198.	Summary of remaining write-ins for Line 11 from overflow page	0	0	0	0
1199.	Totals (Lines 1101 through 1103 plus 1198) (Line 11 above)	0	0	0	0
2501.	Prepaid Expenses	256,491	256,491	0	0
2502.	Rounding			0	0
2503.	Due from Vendors	3,355	3,355	0	0
2598.	Summary of remaining write-ins for Line 25 from overflow page	0	0	0	0
2599.	Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)	259,846	259,846	0	0

2

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE First Acceptance Insurance Company of Georgia, Inc.

LIABILITIES, SURPLUS AND OTHER FUNDS

							1	2
							Current Year	Prior Year
1.	Losses (Part 2A, Line 35, Column 8)				20,801,431	20,848,463
2.	Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part 1, Column 6)	4,099,834	3,407,577
3.	Loss adjustment expenses (Part 2A, Line 35, Column 9)				5,272,713	4,776,534
4.	Commissions payable, contingent commissions and other similar charges				0
5.	Other expenses (excluding taxes, licenses and fees)				99,338	179,361
6.	Taxes, licenses and fees (excluding federal and foreign income taxes)			1,349,437	1,497,515
7.1	Current federal and foreign income taxes (including $			on realized capital gains (losses))		0
7.2	Net deferred tax liability						0
8.	Borrowed money $	and interest thereon $				0
9.	Unearned premiums (Part 1A, Line 38, Column 5) (after deducting unearned premiums for ceded reinsurance of
	$	17,802,829	and including warranty reserves of $			and accrued accident and
	health experience rating refunds including $	for medical loss ratio rebate per the Public Health
	Service Act)						17,719,062	18,024,983
10.	Advance premium					78,198	82,417
11.	Dividends declared and unpaid:
	11.1 Stockholders						0
	11.2 Policyholders						0
12.	Ceded reinsurance premiums payable (net of ceding commissions)				0
13.	Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 20)		0
14.	Amounts withheld or retained by company for account of others					0
15.	Remittances and items not allocated					0
16.	Provision for reinsurance (including $	certified) (Schedule F, Part 3, Column 78)		0
17.	Net adjustments in assets and liabilities due to foreign exchange rates				0
18.	Drafts outstanding						0
19.	Payable to parent, subsidiaries and affiliates				1,429,480	1,256,660
20.	Derivatives						0	0
21.	Payable for securities						0
22.	Payable for securities lending					0
23.	Liability for amounts held	under uninsured plans					0
24.	Capital notes $	and interest thereon $				0
25.	Aggregate write-ins for liabilities				74,565	31,761
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)			50,924,058	50,105,271
27.	Protected cell liabilities						0
28.	Total liabilities (Lines 26 and 27)				50,924,058	50,105,271
29.	Aggregate write-ins for special surplus funds				0	0
30.	Common capital stock					1,500,000	1,500,000
31.	Preferred capital stock						0
32.	Aggregate write-ins for other-than-special surplus funds				0	0
33.	Surplus notes							0
34.	Gross paid in and contributed surplus				35,866,573	35,866,573
35.	Unassigned funds (surplus)				(9,059,741)	(7,761,979)
36.	Less treasury stock, at cost:
	36.1		shares common (value included in Line 30	$	)		0
	36.2		shares preferred (value included in Line 31	$	)		0
37.	Surplus as regards policyholders (Lines 29 to 35, less 36) (Page 4, Line 39)			28,306,832	29,604,594
38.	Totals (Page 2, Line 28, Col. 3)				79,230,890	79,709,865
DETAILS OF WRITE-INS
2501.	Unclaimed Checks					74,565	31,762
2502.	Rounding							(1)
2503.								0
2598.	Summary of remaining write-ins for Line 25 from overflow page				0	0
2599.	Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)				74,565	31,761
2901.								0
2902.								0
2903.								0
2998.	Summary of remaining write-ins for Line 29 from overflow page				0	0
2999.	Totals (Lines 2901 through 2903 plus 2998) (Line 29 above)				0	0
3201.	Rounding							0
3202.								0
3203.								0
3298.	Summary of remaining write-ins for Line 32 from overflow page				0	0
3299.	Totals (Lines 3201 through 3203 plus 3298) (Line 32 above)				0	0

3

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE First Acceptance Insurance Company of Georgia, Inc.

STATEMENT OF INCOME

				1	2
				Current Year	Prior Year
1.		UNDERWRITING INCOME
Premiums earned (Part 1, Line 35, Column 4)		58,420,282	57,817,104
	DEDUCTIONS:
2.	Losses incurred (Part 2, Line 35, Column 7)		35,230,426	28,999,799
3.	Loss adjustment expenses incurred (Part 3, Line 25, Column 1)		8,112,353	8,444,563
4.	Other underwriting expenses incurred (Part 3, Line 25, Column 2)		20,831,436	20,804,641
5.	Aggregate write-ins for underwriting deductions		2	(2)
6.	Total underwriting deductions (Lines 2 through 5)		64,174,217	58,249,001
7.	Net income of protected cells				0
8.	Net underwriting gain (loss) (Line 1 minus Line 6 plus Line 7)		(5,753,935)	(431,897)
		INVESTMENT INCOME
9.	Net investment income earned (Exhibit of Net Investment Income, Line 17)		1,003,285	779,298
10.	Net realized capital gains (losses) less capital gains tax of $	(Exhibit of Capital Gains (Losses))	(132,957)	(12,998)
11.	Net investment gain (loss) (Lines 9 + 10)		870,328	766,300
		OTHER INCOME
12.	Net gain (loss) from agents' or premium balances charged off (amount recovered $	amount
	charged off $	)			0
13.	Finance and service charges not included in premiums		3,742,199	3,674,513
14.	Aggregate write-ins for miscellaneous income		0	0
15.	Total other income (Lines 12 through 14)		3,742,199	3,674,513
16.	Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes
	(Lines 8 + 11 + 15)			(1,141,408)	4,008,916
17.	Dividends to policyholders				0
18.	Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes
	(Line 16 minus Line 17)			(1,141,408)	4,008,916
19.	Federal and foreign income taxes incurred			0
20.	Net income (Line 18 minus Line 19) (to Line 22)		(1,141,408)	4,008,916
		CAPITAL AND SURPLUS ACCOUNT
21.	Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2)	29,604,594	35,497,539
22.	Net income (from Line 20)			(1,141,408)	4,008,916
23.	Net transfers (to) from Protected Cell accounts			0
24.	Change in net unrealized capital gains or (losses) less capital gains tax of $		365,265	(37,547)
25.	Change in net unrealized foreign exchange capital gain (loss)			0
26.	Change in net deferred income tax			285,719	(829,199)
27.	Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 28, Col. 3)		(807,336)	964,887
28.	Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1)		0	0
29.	Change in surplus notes				0
30.	Surplus (contributed to) withdrawn from protected cells			0
31.	Cumulative effect of changes in accounting principles			0
32.	Capital changes:
	32.1 Paid in				0
	32.2 Transferred from surplus (Stock Dividend)			0
	32.3 Transferred to surplus				0
33.	Surplus adjustments:
	33.1 Paid in				(10,000,000)
	33.2 Transferred to capital (Stock Dividend)			0
	33.3 Transferred from capital				0
34.	Net remittances from or (to) Home Office			0
35.	Dividends to stockholders				0
36.	Change in treasury stock (Page 3, Lines 36.1 and 36.2, Column 2 minus Column 1)		0	0
37.	Aggregate write-ins for gains and losses in surplus		(2)	(2)
38.	Change in surplus as regards policyholders for the year (Lines 22 through 37)		(1,297,762)	(5,892,945)
39.	Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37)	28,306,832	29,604,594
DETAILS OF WRITE-INS
0501.	Rounding			2	(2)
0502.					0
0503.
0598.	Summary of remaining write-ins for Line 5 from overflow page		0	0
0599.	Totals (Lines 0501 through 0503 plus 0598) (Line 5 above)		2	(2)
1401.	Rounding				0
1402.					0
1403.					0
1498.	Summary of remaining write-ins for Line 14 from overflow page		0	0
1499.	Totals (Lines 1401 through 1403 plus 1498) (Line 14 above)		0	0
3701.	Rounding			(2)	(2)
3702.					0
3703.					0
3798.	Summary of remaining write-ins for Line 37 from overflow page		0	0
3799.	Totals (Lines 3701 through 3703 plus 3798) (Line 37 above)		(2)	(2)

4

ANNUAL STATEMENT FOR THE YEAR 2021 OF THE First Acceptance Insurance Company of Georgia, Inc.

CASH FLOW

				1	2
				Current Year	Prior Year
1.		Cash from Operations
Premiums collected net of reinsurance		60,378,122	54,853,167
2.	Net investment income		1,258,438	1,001,790
3.	Miscellaneous income		3,742,199	3,674,513
4.	Total (Lines 1 through 3)		65,378,759	59,529,470
5.	Benefit and loss related payments		35,477,206	36,275,611
6.	Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts	0	0
7.	Commissions, expenses paid and aggregate write-ins for deductions		28,675,713	29,032,817
8.	Dividends paid to policyholders		0	0
9.	Federal and foreign income taxes paid (recovered) net of $	tax on capital gains (losses)	0	0
10.	Total (Lines 5 through 9)		64,152,919	65,308,428
11.	Net cash from operations (Line 4 minus Line 10)		1,225,840	(5,778,958)
12.		Cash from Investments
Proceeds from investments sold, matured or repaid:
	12.1	Bonds		7,623,841	3,169,159
	12.2	Stocks		0	0
	12.3	Mortgage loans		0	0
	12.4	Real estate		0	0
	12.5	Other invested assets		0	0
	12.6	Net gains or (losses) on cash, cash equivalents and short-term investments		0	0
	12.7	Miscellaneous proceeds		1	0
13.	12.8	Total investment proceeds (Lines 12.1 to 12.7)		7,623,842	3,169,159
Cost of investments acquired (long-term only):
	13.1	Bonds		2,030	20,462,188
	13.2	Stocks		0	1,049,082
	13.3	Mortgage loans		0	0
	13.4	Real estate		0	0
	13.5	Other invested assets		0	0
	13.6	Miscellaneous applications		0	1
14.	13.7	Total investments acquired (Lines 13.1 to 13.6)		2,030	21,511,271
Net increase (decrease) in contract loans and premium notes		0	0
15.	Net cash from investments (Line 12.8 minus Line 13.7 minus Line 14)		7,621,812	(18,342,112)
16.		Cash from Financing and Miscellaneous Sources
Cash provided (applied):
	16.1	Surplus notes, capital notes		0	0
	16.2	Capital and paid in surplus, less treasury stock		0	(10,000,000)
	16.3	Borrowed funds		0	0
	16.4	Net deposits on deposit-type contracts and other insurance liabilities			0
	16.5	Dividends to stockholders		0	0
17.	16.6	Other cash provided (applied)		4,479,062	131,175
Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)	4,479,062	(9,868,825)
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)	13,326,714	(33,989,895)
19.	Cash, cash equivalents and short-term investments:
	19.1	Beginning of year		7,743,265	41,733,160
	19.2	End of year (Line 18 plus Line 19.1)		21,069,979	7,743,265

5