# EDGAR Filing Document

**Accession Number:** 0001463913
**File Stem:** 0001437749-26-008631
**Filing Date:** 2026-3
**Character Count:** 424291
**Document Hash:** d6f4b1b3af2660f16950a18dc314003e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-008631.hdr.sgml**: 20260317

**ACCESSION NUMBER**: 0001437749-26-008631

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 120

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260317

**DATE AS OF CHANGE**: 20260317

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** US Alliance Corp
- **CENTRAL INDEX KEY:** 0001463913
- **STANDARD INDUSTRIAL CLASSIFICATION:** LIFE INSURANCE [6311]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 264824142
- **STATE OF INCORPORATION:** KS
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-55627
- **FILM NUMBER:** 26762920

**BUSINESS ADDRESS:**
- **STREET 1:** 4123 SW GAGE CENTER DRIVE
- **STREET 2:** SUITE 240
- **CITY:** TOPEKA
- **STATE:** KS
- **ZIP:** 66604
- **BUSINESS PHONE:** 816-460-5807

**MAIL ADDRESS:**
- **STREET 1:** 4123 SW GAGE CENTER DRIVE
- **STREET 2:** SUITE 240
- **CITY:** TOPEKA
- **STATE:** KS
- **ZIP:** 66604

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** U. S. Alliance Corp
- **DATE OF NAME CHANGE:** 20090512

?xml version='1.0' encoding='ASCII'? usac20251231_10k.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

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**FORM 10-K**

☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, 2025

or

☐Transition Report Pursuant to Section 13 of 15(d) of the Securities Exchange Act of 1934

For the transition period from ________ to __________

Commission File Number 000-55627

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**US ALLIANCE CORPORATION** 

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| | |
|:---|:---|
| Kansas | 26-4824142 |
| State of Incorporation | IRS Employer Identification Number |
| 1303 SW First American Place, Suite 200<br> Topeka, Kansas 66604 | (785) 228-0200 |
| Address, including zip code, of principal executive offices | Registrant's telephone number, including area code |

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Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.10 par value per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☑

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☑&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☑&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.&nbsp;&nbsp;&nbsp;&nbsp;☑

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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|:---|:---|:---|:---|
| Large accelerated filer ☐  | Accelerated filer ☐  | Non-accelerated filer ☑ | Smaller reporting company ☑  |
|  |  |  | Emerging growth company ☐  |

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[**Table of Contents**](#toc)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☑

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

As of March 1, 2026 the aggregate market value of voting and non-voting common equity held by non-affiliates of US Alliance could not be calculated as no established public trading market for our equity exists.

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[**Table of Contents**](#toc)

**Applicable only to registrants involved in bankruptcy proceedings during the preceding five years**

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☐

No established public trading market for our common stock currently exists. As of March 1, 2026, 7,788,922 shares of our common stock were outstanding.

**Documents Incorporated By Reference**

Information required by Part III of this Annual Report on Form 10-K is incorporated by reference to portions of our definitive proxy statement for our 2026 annual meeting of stockholders which we will file with the Securities and Exchange Commission within 120 days after the end of our fiscal year ended December 31, 2025.

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[**Table of Contents**](#toc)

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| [**<u>PART I</u>**](#part_1) |  |  |
| Item 1. | [<u>Business</u>](#business) | [1](#business) |
| Item 1A. | [<u>Risk Factors</u>](#risk_factors) | [6](#risk_factors) |
| Item 1B. | [<u>Unresolved Staff Comments</u>](#unresolved) | [11](#unresolved) |
| Item 2. | [<u>Properties</u>](#properties) | [11](#properties) |
| Item 3. | [<u>Legal Proceedings</u>](#legal_proceedings) | [11](#legal_proceedings) |
| Item 4. | [<u>Mine Safety Disclosures</u>](#mine_safety) | [11](#mine_safety) |
| [**<u>PART II</u>**](#part_2) |  |  |
| Item 5. | [<u>Market for Registrant</u><u>'</u><u>s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</u>](#market_for_reg) | [11](#market_for_reg) |
| Item 6. | [<u>Selected Financial Data</u>](#selected_financial) | [12](#selected_financial) |
| Item 7. | [<u>Management</u><u>'</u><u>s Discussion and Analysis of Financial Condition and Results of Operations</u>](#management_disc) | [13](#management_disc) |
| Item 7A. | [<u>Quantitative And Qualitative Disclosures About Market Risk</u>](#qual_and_quant) | [25](#qual_and_quant) |
| Item 8. | [<u>Financial Statements and Supplementary Data</u>](#financial_statements) | [25](#financial_statements) |
| Item 9. | [<u>Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</u>](#changes_in_and_disagree) | [25](#changes_in_and_disagree) |
| Item 9A. | [<u>Controls and Procedures</u>](#controls_and_procs) | [25](#controls_and_procs) |
| Item 9B. | [<u>Other Information</u>](#other_info) | [26](#other_info) |
| [**<u>PART III</u>**](#part_3) |  |  |
| Item 10. | [<u>Directors, Executive Officers and Corporate Governance</u>](#directors_exec) | [26](#directors_exec) |
| Item 11. | [<u>Executive Compensation</u>](#exec_comp) | [26](#exec_comp) |
| Item 12 | [<u>Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</u>](#security_ownership) | [26](#security_ownership) |
| Item 13. | [<u>Certain Relationships and Related Transactions and Director Independence</u>](#relationships) | [26](#relationships) |
| Item 14. | [<u>Principal Accountant Fees and Services</u>](#principal_acc) | [26](#principal_acc) |
| [**<u>PART IV</u>**](#part_4) |  |  |
| Item 15. | [<u>Exhibits and Financial Statement Schedules</u>](#exhibits) | [27](#exhibits) |
|  | [<u>Exhibit Index</u>](#index) | [27](#index) |
|  | [<u>Signatures</u>](#sigs) | [31](#sigs) |

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**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

This report, and the Annual Report to Shareholders of which this report is a part, contain forward-looking statements within the meaning of the U.S. federal securities laws. You can identify forward-looking statements by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "projects," "may," "will" or "should," or the negative or other variation of these or similar words, or by discussions of strategy or risks and uncertainties, and similar references to future periods.

We base these and other forward-looking statements on our current expectations and assumptions regarding our business, the economy and other future conditions; however, our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, that you should not rely on any of these forward-looking statements as statements of historical fact or as guarantees or assurances of future performance. Forward-looking statements, which by their nature relate to the future, are subject to inherent uncertainties, risks and changes in circumstances which we cannot easily predict. Important factors that could cause actual results to differ materially and adversely from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory, and health conditions.

Any forward-looking statement made by us in this report speaks only as of the date of this report. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

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**PART I**

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| | |
|:---|:---|
| **ITEM 1.** | **BUSINESS.** |

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**<u>Overview and History</u> *-*** US Alliance Corporation ("USAC") was formed as a Kansas corporation on April 24, 2009 to raise capital to form a new Kansas-based life insurance company. Our offices are located at 1303 SW First American Place, Suite 200, Topeka, Kansas 66604. Our telephone number is 785-228-0200 and our website address is <u>www.usalliancecorporation.com</u>.

USAC has four wholly-owned operating subsidiaries. US Alliance Life and Security Company ("USALSC") was incorporated June 9, 2011, to serve as our life insurance company. US Alliance Marketing Corporation ("USAMC") was incorporated April 23, 2012, to serve as a marketing resource. US Alliance Investment Corporation ("USAIC") was incorporated April 23, 2012 to serve as investment manager for USAC and its subsidiaries. Dakota Capital Life Insurance Company ("DCLIC"), was acquired on August 1, 2017 when USAC merged with Northern Plains Capital Corporation ("NPCC") and subsequently merged into USALSC on December 31, 2023. US Alliance Life and Security Company - Montana ("USALSC-Montana"), was acquired December 14, 2018. USALSC-Montana is a wholly-owned subsidiary of USALSC. Unless the context otherwise indicates, references in this registration statement to "we", "us", "our", or the "Company" refer collectively to USAC and its subsidiaries.

We initially capitalized our subsidiaries with proceeds from intrastate public offering(s) registered by qualification with the office of Kansas Securities Commissioner.

USALSC received a Certificate of Authority from the Kansas Insurance Department ("KID") effective January 2, 2012, and sold its first insurance product on May 1, 2013. USALSC re-domesticated to North Dakota in 2023. USALSC currently offers the following nine product categories:

Solid Solutions Term Life Series®, Registered Trademark No. 4,740,828. This simplified issue term life insurance product is designed to provide coverage with a face value of $250,000 or less. This product features limited underwriting and is offered with 10, 20, 25, and 30 year terms.<br>

Sound Solutions Term Life Series®, Registered Trademark No. 4,740,827. This is a fully underwritten term life insurance product designed to provide coverage for higher face amounts. This product features multiple risk classifications and is offered with 15, 20, 25 and 30 year terms.<br>

Pioneer Whole Life. This is a traditional whole life insurance product designed to provide permanent coverage with a limited premium paying period. This product is sold with death benefits typically ranging from $25,000 to $100,000.<br>

Legacy Juvenile Series®, Registered Trademark No. 4,577,835. This product is term life insurance to age 25 available for purchase on children up to the age of 16 in an amount of $10,000 or $20,000 with a one-time premium payment.<br>

American Annuity Series®, Registered Trademark No. 4,582,074. This product is a flexible premium deferred annuity with initial rates guaranteed for five years by company practice.<br>

Thoughtful Pre-Need Series®, Registered Trademark No. 4,620,073. This series of products includes a single or multiple pay premium pre-need whole life insurance policy sold by funeral directors who are licensed by the KID in conjunction with a preplanned funeral. This product is typically sold with smaller death benefits than our traditional Pioneer Whole Life.<br>

Group Products. This is a series of group non-medical insurance products developed for the small group marketplace. These products are sold to employers and provide benefits for their employees. Our group suite of products includes group term life insurance, group long term disability, and group short term disability.<br>

Critical Illness. This individual policy provides cash benefits to the insured should certain defined illnesses or injuries occur.<br>

Wealth-Bridg Single Premium Whole Life ("SPWL"). This is a SPWL policy for individuals age 50 to 85 with premiums from $5,000 to $250,000.<br>

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USALSC-Montana is actively marketing products in conjunction with the Montana Funeral Directors Association.

Our single pay life products (which include our Juvenile, Pre-Need products, and SPWL) accounted for 71% of 2025 direct premium revenue. Our individual life and Critical Illness products (which include Term Life and Whole Life products) accounted for 14% of 2025 direct premium revenue. Our group products accounted for 15% of 2025 direct written premiums.

USALSC seeks opportunities to develop and market additional products.

Our business model also seeks the acquisition by USAC and/or its subsidiaries of other insurance and insurance related companies, including third-party administrators, marketing organizations, and rights to blocks of insurance business through reinsurance or other transactions.

**Material Agreements and Partners -** Effective January 1, 2013, USALSC entered into a reinsurance agreement with Unified Life Insurance Company ("ULIC") to assume 20% of a certain block of health insurance policies. This agreement renews annually unless either party provides written notice of its intent not to renew at least 120 days prior to the expiration of the then-current term. The agreement provides for monthly settlement. For the year ended December 31, 2025, USALSC assumed premiums of $5,042,743. This agreement was terminated effective December 31, 2025.

On September 1, 2015, USALSC entered into an agreement to provide certain insurance administrative functions, data processing systems, daily operational services, management consulting, and marketing development to DCLIC. This agreement had an initial term of 60 months (beginning on September 1, 2015), continues month to month after the initial 60 month period, and requires 90-day advance written notice to terminate. In addition, the agreement requires that certain products will be exclusively administered by USALSC and administrative services with respect to such products may not be transferred without our consent. The agreement provides for monthly settlement. On August 1, 2017, DCLIC became a wholly-owned subsidiary of USALSC as described below. Subsequent to the acquisition of DCLIC, this agreement became an intra-company agreement and is eliminated as a part of the consolidation of the financial statements of the companies. On December 31, 2023, DCLIC was merged into USALSC.

On August 1, 2017 the Company acquired NPCC pursuant to a Plan and Agreement of Merger dated May 23, 2017, under which Alliance Merger Sub, Inc. ("Acquisition"), a wholly owned subsidiary of the Company, merged with and into Northern Plains ("Merger") with Acquisition being the surviving company. Pursuant to the agreement, the Company exchanged .5841 shares of the Company's common stock for each share of Northern Plains common stock, or 1,644,458 shares. Subsequent to the merger, Acquisition was merged into the Company and DCLIC was contributed to USALSC.

On September 30, 2017, USALSC entered into a coinsurance agreement with American Life and Security Corporation ("ALSC") to assume 100% of a certain block of life insurance policies (the "2017 ALSC Agreement"). USALSC is also the servicer of this block of policies. USALSC paid a ceding commission of $1,850,000 and received $7,153,663 from ALSC. The 2017 ALSC Agreement will remain in effect until all liabilities associated with this block of policies have been satisfied.

On December 14, 2018, USALSC acquired Great Western Life Insurance Company ("GWLIC") pursuant to a Stock Purchase agreement entered into on October 11, 2018 with Great Western Insurance Company, a wholly-owned subsidiary of American Enterprise Group, Inc. USALSC paid $500,000 to acquire all outstanding shares of GWLIC. Subsequent to the acquisition, GWLIC was renamed US Alliance Life and Security Company – Montana.

On April 15, 2020, with an effective date of January 1, 2020, USALSC entered into a second coinsurance agreement with ALSC (the "2020 ALSC Agreement") to assume a quota share percentage of a block of annuity policies. As of December 31, 2025, the Company had $33.7 million in assumed annuity deposits under the 2020 ALSC Agreement.

On December 31, 2020, USALSC and ALSC agreed to terminate a portion of the 2017 ALSC Agreement, pursuant to an amendment to the 2017 ALSC Agreement. USALSC transferred assets of $9,282,836 and received a ceding commission of $927,000. On December 31, 2020, USALSC and ALSC agreed to terminate a portion of the 2017 ALSC Agreement, pursuant to an amendment to the 2017 ALSC Agreement. USALSC transferred assets of $9,282,836 and received a ceding commission of $927,000.

On December 31, 2020, DCLIC entered into an assumption agreement with ALSC where it acquired a certain block of life insurance policies (the "ALSC Assumption Agreement"). Under the ALSC Assumption Agreement, DCLIC becomes directly liable to the policyholders of this block of business. DCLIC received assets equaling $9,282,836 and paid a ceding commission of $927,000 to ALSC.

On December 31, 2023, USALSC entered into a coinsurance agreement to acquire a block of life and annuity policies from Lewer Life Insurance Company.

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On October 1, 2025, USALSC-Montana entered into an agreement with the Montana Funeral Trust, resulting in the issuance of $17,354,974 of annuity contracts. USALSC-Montana and USALSC entered into a reinsurance agreement on this block of policies, the effects of which are eliminated during the consolidation of the Company's financial results.

**Investments** – USAC and USAIC contracted in 2013 with New England Asset Management, Inc. ("NEAM"), a Berkshire Hathaway subsidiary, to manage the investments of USALSC and a portion of the investments of USAC. USALSC and USALSC-Montana have investment management agreements with USAIC, who has a sub-advisory agreement with NEAM. USALSC-Montana was added to this agreement on December 14, 2018. The investment parameters are determined by North Dakota law, the NDID, and the Montana Insurance Department, as well as the internal investment policies of USALSC, USALSC-Montana and USAC.

As a part of its 2020 ALSC Agreement, USALSC contracted with 1505 Capital LLC to provide investment services on the assets, including mortgage loan participations, supporting this agreement. USALSC also sources mortgage loan participations from American Savings Life Insurance Company and Maxim Capital Group.

USAC internally manages a portfolio of equities within its investment policy guidelines (as modified from time to time, "Investment Policy"), which consider type of investments and investment instruments, and establishes diversification benchmarks to help manage investment risk. USAC's investment in its subsidiaries is managed outside of its Investment Policy.

The USAC Investment Policy may be modified by USAC's Board of Directors (the "Board" or "Board of Directors") in compliance with applicable law.

The following summarizes USAC's Investment Policy, effective September 13, 2018 as amended:

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| ![arrow.jpg](arrow.jpg) | *Approved Investment Instruments.* We may invest in the following approved investment classes in accordance with the restrictions and subject to the benchmark ranges set forth in our Investment Policy and described below: |

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| ![diamond.jpg](diamond.jpg) | United States Government Securities — bonds or other evidences of indebtedness that are fully guaranteed or insured by the U.S. Government or any agency or instrumentality thereof. |

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| ![diamond.jpg](diamond.jpg) | Securities of the District of Columbia, State, Insular or Territorial Possession Government of the United States —bonds or other evidences of indebtedness, without limitation, of the District of Columbia, State, or any political subdivision of such, or Insular or Territorial Possession of the United States. |

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| ![diamond.jpg](diamond.jpg) | Canadian Government, Provincial and Municipal Obligations —bonds or other evidences of indebtedness issued by the Dominion of Canada, or by any Province thereof, or by any municipality, agency or instrumentality thereof. |

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| ![diamond.jpg](diamond.jpg) | Fixed Income Obligations — bonds or other evidence of indebtedness issued, assumed or guaranteed by a corporation. |

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| ![diamond.jpg](diamond.jpg) | Equity Interests - preferred stocks, common stocks, mutual funds, exchange traded funds, master limited partnerships and other securities representing equity ownership interests in a corporation, provided that we may not own more than 2% of any corporation, mutual fund, exchange traded fund, master limited partnership or other equity security. |

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| ![diamond.jpg](diamond.jpg) | Real Estate - real estate for use in the operations of the Company, which we refer to as "Home Office Real Estate," or for the production of income. We may also invest in shares of beneficial interest in or obligations issued by a Real Estate Investment Trust qualified under pertinent sections of the United States Internal Revenue Code. |

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| ![diamond.jpg](diamond.jpg) | Mortgage Loans - first-lien mortgage loans on commercial or residential property with loan to value of no greater than 80% at the time of purchase. |

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| ![diamond.jpg](diamond.jpg) | Mortgage - Backed Securities - mortgage-backed securities issued by the Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), or a private entity. Any such securities must be rated investment grade by Moody's, S&P or Fitch. |

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| ![diamond.jpg](diamond.jpg) | Asset-Backed Securities - asset-backed securities designated as investment grade by Moody's, S&P or Fitch or the equivalent rating by another nationally recognized statistical rating organization. |

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| ![diamond.jpg](diamond.jpg) | Certificates of Deposit, Time Deposits, Overnight Bank Deposits, Banker's Acceptances and Repurchase Agreements - certificates of deposit, time deposits, overnight bank deposits, banker's acceptances issued by federally insured banks with maturities of 270 days or less from the date of acquisition, repurchase agreements with acceptable collateral and maturities of 270 days or less from date of acquisition. |

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| ![diamond.jpg](diamond.jpg) | Commercial Paper - commercial paper of US corporations that are rated at least "A-2" by S&P or "P-2" by Moody's or the equivalent rating of another nationally recognized statistical rating organization if S&P or Moody's cease publishing ratings of these securities, and have maturities of 270 days or less from the date of acquisition. |

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| ![diamond.jpg](diamond.jpg) | Money Market Accounts or Funds - money market accounts or funds that meet the following criteria: |

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| ■ | A substantial portion of the assets of the money market account or fund must be comprised of certain qualifying investments instruments; |

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| ■ | Issuers of the fund or account's investments must have a combined capital and surplus in excess of $500,000,000; |

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| ■ | Maturities of 270 days or less from the date of acquisition; |

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| ■ | Have net assets of not less than $500,000,000; and |

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| ■ | Have the highest rating available of S&P, Moody's, or Fitch, or carry an equivalent rating by a nationally recognized statistical rating organization if the named rating agencies cease publishing ratings of investments. |

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| ![arrow.jpg](arrow.jpg) | *Diversification.* Our portfolio is constructed to diversify risk with respect to asset class, geographical location, quality, maturity, business sector and individual issuer and issue concentrations. |

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| ![arrow.jpg](arrow.jpg) | *Benchmarks.* We benchmark the allocation of our investments based on the criteria set forth in the table below to help assure our investments are appropriately diversified. The benchmarks may change to respond to market conditions. Based on market conditions and other considerations, investments in the approved investment instruments described are maintained in the following ranges: |

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| **% of Portfolio Cost Value** | **% of Portfolio Cost Value** | **% of Portfolio Cost Value** |
| **Asset Class** | **Minimum** | **Maximum** |
| Cash/Short Term | 0% | 100% |
| Investment Grade Fixed Income | 20% | 100% |
| High Yield Fixed Income | 0% | 15% |
| Equity | 0% | 50% |
| Mortgage and Mortgage related | 0% | 50% |
| Real Estate (including REITs) | 0% | 20% |

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The Executive Committee of our Board of Directors may modify the above benchmark ranges at any time deemed appropriate based on current conditions. Any such modifications will be subject to approval by the full Board of Directors at its next regularly scheduled meeting. USALSC's, and USALSC-Montana's investment policy, as a regulated insurance entity, contains additional investment limitations as required by law.

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| ![arrow.jpg](arrow.jpg) | *Reporting.* The President, CEO, or their respective designees provide monthly reports to the Board of Directors reflecting the securities purchased and sold during the quarter, securities held at the end of the quarter, current benchmarks and an overall evaluation of the portfolio's investment performance. |

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**Marketing and Distribution -** USALSC uses independent consultants and referrals to market their products and build distribution channels among funeral homes, banks, accountants, independent insurance agencies, agents, insurance brokerage firms, business owners and other distribution channels as opportunities arise. USALSC works with other insurance companies who have captive or non-captive agents to broaden their product offerings.

**Employees -** As of December 31, 2025, USAC and its subsidiaries have fifteen full-time employees and one part-time employee.

**Reports to Security Holders -** We provide reports to our stockholders, along with our audited year-end financial statements. In addition, all periodic reports and other information we file with the U.S. Securities and Exchange Commission (the "SEC") are available for inspection and copying at the public reference facilities of the Securities and Exchange Commission located at 100 F Street N E, Washington, D C 20549.

Copies of such material may be obtained by mail from the Public Reference Section of the Securities and Exchange Commission, 100 F Street, N E, Washington, D.C. 20549, at prescribed rates.

Information on the operation of the Public Reference Room may be obtained by calling the SEC at l-800-SEC-0330. In addition, the Commission maintains a World Wide Website on the Internet at: <u>http://www.sec.gov</u> that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. You may also find this information on our website (<u>http://www.usalliancecorporation.com</u>).

**Implications of Having Been an Emerging Growth Company and Loss of Emerging Growth Company Status** – We ceased being an emerging growth company on December 31, 2022, the last day of our fiscal year following the fifth anniversary of the completion of our initial public offering in 2017. Under the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"), emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We elected to use this extended transition period to comply with new or revised accounting standards that have different effective dates for public and private companies during the period in which we were an emerging growth company. As a result, our financial statements while we were an emerging growth company may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

As a result of our ceasing to qualify as an emerging growth company, beginning in the fiscal year 2023, we are no longer able to take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to SEC reporting companies. Specifically, we are now required to:

• Comply with requirements that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);

• Submit certain executive compensation matters to stockholder non-binding advisory votes;

• Submit for stockholder approval golden parachute payments not previously approved;

• Disclose certain executive compensation related items, although we remain subject to the scaled disclosure requirements of a smaller reporting company with respect to executive compensation disclosure.

Because the worldwide market value of our common stock held by non-affiliates, or public float, is below $250 million, we continue to qualify as a "smaller reporting company" as defined under the Exchange Act. Although we are no longer an emerging growth company, certain reduced disclosure and other requirements continue to be available to us because we are a smaller reporting company. As a smaller reporting company we are not required to:

• Have an auditor report on our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act; and

• Present more than two years of audited financial statements in our registration statements and annual reports on Form 10-K and present any selected financial data in such registration statements and annual reports.

The additional compliance and reporting requirements resulting from the loss of our emerging growth company status has resulted in increases our legal and financial compliance costs and demands on management resources. However, our continuing status as a smaller reporting company has, and will continue to, reduce some of the additional expense and management attention necessary to be dedicated to such increased compliance obligations.

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| **ITEM 1A.** | **RISK FACTORS.** |

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**Risks Associated with an Investment in USAC Stock**

We face many significant risks in the operating of our business and may face significant unforeseen risks as well. Our significant material risks are set forth below:

**SHARE OWNERSHIP RISK -** An investment in our voting common stock is speculative. Shares of our voting common stock constitute a high-risk investment in a business that has experienced profit in 5 of the last 7 years with accumulated losses of $10,738,528 since inception. No assurance or guaranty has been or can be given that any of the benefits envisioned by our business plan will prove to be available to our stockholders, nor can any assurance or guaranty be given as to the actual amount of financial return, if any, which may result from ownership of our voting Common Stock. **The entire value of the shares of USAC Common Stock may be lost.**

**OPERATING RISK -** We faced the risks inherent in our business, including limited ability to raise additional capital, challenging product markets, limited revenues, as well as competition from better-capitalized and more seasoned companies. We have no control over general economic conditions, competitors' products or their pricing, customer demand, costs of marketing or advertising, hacking of our administrative systems, and any impact from artificial intelligence. While we have been profitable for 5 of the last 7 years, there can be no assurance that our profitability will continue. The likelihood of future success must be considered in light of our history of operations with the cumulative accumulated operating losses. These risks make it difficult to predict our future revenues or results of operations accurately. Recent changes to accounting guidance and regulatory pronouncements have increased our operating results' volatility. The accounting guidance and regulatory pronouncements contribute to fluctuations in our financial results. The Company evaluates the financial condition of its reinsurers to minimize its exposure to losses from reinsurer insolvencies. Management believes any liabilities arising from this contingency would not be material to the Company's financial position.

**BREACH OF INTERNAL CONTROLS/FRAUD** – Internal controls are established on all aspects of the business. If internal controls are breached, fraud, incorrect payment of funds, incorrect claim processing, or other material issues within the Company could result. Fraud from internal or external sources will hurt profitability and strain and limit financial resources needed for company to grow.

**GENERATIVE AI RISK** – Generative AI challenges quality and accuracy; repeatability; data privacy; auditability; copyright; data quality; fraudulent use; skill of prompt engineering to derive useful outputs; as well as ethical considerations regarding bias, transparency, accessibility, accountability, and regulation. The Company continues to monitor this evolving risk.

**CYBER ATTACK**—A variety of cyber attacks can leave any Company vulnerable to data loss or theft, system shutdown, and a large-scale timeframe of being unable to conduct business-related activities.

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**DEFICIENCY OF INTERNAL CONTROLS OVER FINANCIAL REPORTING**—A deficiency of internal controls could leave assets vulnerable to accidental loss or loss from fraud. The integrity of the information used to make accurate business decisions could be compromised, and the business may not be in compliance with many federal, state, and local laws and regulations affecting its operation.

**STRUCTURAL RISK/SYSTEMS RISK** – The loss of primary, secondary, and backup power systems at the office or at cloud data facilities, failure of networking devices, file servers, server crashes, or undiagnosed errors masked by automated failure detection systems can lead to catastrophic failure of core systems and large scale downtime events.

**REINSURANCE RELATIONSHIP RISK** – The Company relies upon its reinsurers to provide expertise, financial strength, and growth opportunities and they play a key role in the success of the Company. The loss of a key reinsurance relationship could impact the future success of the Company.

**LIQUIDITY RISK** – While USAC is considered a "public company" by the SEC, there is no public market for USAC Common Stock and no assurance that one will develop or be sustained or that USAC Common Stock will become publicly traded. Our securities are not listed for trading on any national securities exchange, nor are bid or asked quotations reported in any over-the-counter quotation service, and we do not intend to seek any such listing in the foreseeable future.

**PROFITABILITY -** As is common among small life insurance companies, we have historically incurred significant losses. As of December 31, 2025, we had a consolidated accumulated deficit of approximately $11.0 million. These losses were attributable primarily to costs of administration, volatility in net investment gains and losses, the substantial costs of writing new life insurance (which are deferred and amortized in accordance with our deferred acquisition policy) and include first year commissions payable to insurance agents, medical and investigation expenses as well as other expenses incidental to the issuance of new policies as well as with the reserves required to be established for each policy. However, the Company has been profitable in 2019, 2020, 2021, 2023, and 2024.

**DIVIDENDS -** We have not paid a cash dividend on USAC Common Stock and do not anticipate paying a cash dividend in the foreseeable future. We intend to retain available funds to be used to expand operations. The success of any investment in USAC Common Stock will depend upon any future appreciation of its value, which will depend on the success of our life insurance subsidiaries. We cannot guarantee that our common stock will appreciate in value or achieve or maintain a value equal to the price at which shares were purchased. Further, a market may never develop to sell shares of USAC Common Stock.

**CAPITAL RISK -** The law requires adequate capital and surplus calculated following statutory accounting principles prescribed by state insurance regulatory authorities to meet regulatory requirements. The amount of capital and surplus required is based on certain "risk-based capital" standards established by statute and regulation and administered by regulators. The "risk-based capital" system establishes a framework for evaluating the adequacy of the minimum amount of capital and surplus, calculated following statutory accounting principles, necessary for an insurance company to support its overall business operations. If we fail to maintain the required capital levels, our ability to conduct business would be compromised. Recent regulatory changes to bond classifications and other rules increase volatility and cause immediate changes to our required capital.

**DILUTION RISK -** The Company may issue additional shares of Common Stock in the future, at such times and in such amounts as the Board may may determine. Any additional offerings of USAC securities that we may conduct in the future will reduce the ownership percentage of existing shareholders.

**KEY EXECUTIVE RISK -** The loss of services from a key executive could adversely affect our ability to execute our business plan. This could hamper profitability, response time, productivity, image, reputation, and confidence. USAC has entered into employment agreements with its principal executive officer and principal financial officer. Still, such agreements cannot guarantee that such officers may not separate from the Company during the terms of their respective employment agreements or thereafter. The death or disability of either of our executive officers would also harm the Company.

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**SEC REGISTRATION -** USAC is a "public company" as defined by the Securities and Exchange Commission. As such, we incur significant legal, accounting, and other expenses under the Exchange Act and the Sarbanes-Oxley Act of 2002 and rules subsequently implemented by the SEC. These rules impose various requirements on public companies, including establishing and maintaining effective disclosure and financial controls and appropriate corporate governance practices. Our board, management, and other personnel must devote a substantial amount of time to these compliance requirements. Moreover, these rules and regulations increase our legal and financial compliance costs and are time-consuming and costly.

**LOSS OF EMERGING GROWTH COMPANY STATUS** - The Company ceased to be deemed an "emerging growth company" as of December 31, 2022. As a result, the costs and demands placed upon management may increase, as beginning with the fiscal year ended December 31, 2023, the Company is now required to comply with additional disclosure and accounting requirements. However, as long as the aggregate value of the Company's common stock held by non-affiliates remains less than $250 million, the Company will qualify as a "smaller reporting company" as well as a "non-accelerated filer" eligible for relief from certain disclosure and reporting requirements.

Smaller reporting companies can provide simplified executive compensation disclosure, are exempt from the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, and have certain other reduced disclosure obligations.

**POTENTIAL ACQUISITION RISK -** In addition to our organic growth, we pursue strategic acquisitions of insurance-related companies that meet our acquisition criteria. However, suitable acquisition candidates may not be available on terms and conditions that are economically beneficial to us. In pursuing acquisitions, we compete with other companies, who may have greater financial and other resources than us. Further, if we succeed in consummating acquisitions, our business, financial condition, and results of operations may be negatively affected.

● An acquired business may not achieve anticipated revenues, earnings, or cash flows;

● We may assume liabilities that were not disclosed or exceed estimates;

● We may be unable to integrate acquired businesses successfully and realize anticipated economic, operational, and other benefits in a timely manner;

● Acquisitions could disrupt our ongoing business, distract our management, and divert our financial and human resources;

● We may experience difficulties operating in markets in which we have no or only limited direct experience, and

● There is the potential for loss of customers and key employees of any acquired company.

**MARKETING STRATEGY RISK -** Premium written depends primarily on our products, product pricing and ability to choose and timely and adequately train and motivate agents, producers, and brokers to sell our products.

Large life companies with greater financial resources, longer business histories, and possibly more products present significant competition to smaller insurance companies. These larger companies also generally have large distribution capabilities, which adds to the difficulty in building our company.

Independent agents are not required to sell the Company's products and are free to sell products from other licensed companies. We are committed to working to educate and incentivize independent agents to sell our products.

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**THE COMPANY**'**S INVESTMENTS ARE SUBJECT TO MARKET AND CREDIT RISKS -** Our invested assets are subject to customary risks of credit defaults and changes in fair value and/or market value. Factors that may affect the overall default rate on and fair value of the Company's invested assets include interest rate levels and changes, availability, and cost of liquidity, financial market performance, regulatory pronouncements, and general economic conditions. The Company has experienced losses in its investment portfolio and could experience losses in the future.

**NO INSURANCE RATING RISK** – USACSC and USALSC-Montana have not been rated by a rating agency. The lack of a rating could result in loss of faith from producers, E&O carriers and consumers seeking products from a rated company, as well as a negative impact on ability to compete with rated companies.

Insurance ratings reflect the rating agencies' opinion of an insurance company's history, financial strength, operating performance, and ability to meet its obligations to policyholders. There can be no assurance that a rating agency would rate USALSC or USALSC-Montana or that any rating, if and when received, will be favorable.

**Risks Associated with Companies in the Life Insurance Industry, including USAC and its subsidiaries** 

**GENERAL REGULATORY RISK** -All insurance operations are subject to government regulation in each state where they conduct business. Such regulatory authority is vested in state agencies having broad administrative power dealing with all aspects of the insurance business, including premium rates, policy forms, and capital adequacy, and is concerned with the protection of policyholders rather than stockholders. Among other matters, the regulations require prior approval of acquisitions of insurance companies, solvency standards, licensing of insurers and their agents, investment restrictions, deposits of securities for the benefit of policyholders, approval of policy forms and premium rates, periodic examinations, and reserves for unearned premiums, losses, and other matters.

Compliance with insurance regulation is costly and time-consuming, requiring the filing of detailed annual reports, and the business and accounts are subject to examination by the applicable state insurance regulator.

Increased scrutiny has been placed upon the insurance regulatory framework during the past several years, and certain state legislatures have considered or enacted laws that alter, and in many cases increase, state authority to regulate insurance companies and insurance holding company systems. The National Association of Insurance Commissioners ("NAIC") and state insurance regulators reexamine existing laws and regulations on an ongoing basis and focus on insurance company investments and solvency issues, risk-based capital guidelines, interpretations of existing laws, the development of new laws, the implementation of non-statutory guidelines and the circumstances under which dividends may be paid. Future NAIC initiatives and other regulatory changes may have a material adverse impact on the insurance industry. There is no assurance that the regulatory requirements of the insurance departments of their respective state of domicile or a similar department in any other state in which they may wish to transact business can be satisfied.

Individual state guaranty associations assess insurance companies to pay benefits to policyholders of insolvent or failed insurance companies. The amount of any future assessments to be made from known insolvencies cannot be predicted.

**REGULATORY FACTORS RISK** – Broad insurance laws in the states where we do business give insurance regulators broad regulatory authority. Combined with the Dodd-Frank Wall Street Reform and Consumer Protection Act, this authority can allow regulators to interpret and implement additional rules that may take several years to complete. The ultimate outcome of regulatory rulemaking proceedings cannot be predicted with certainty, and the regulations promulgated could have a material impact on consolidated financial results or financial conditions.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Reform Act") reshaped financial regulations in the United States by creating new regulators, regulating new markets and firms, and providing additional enforcement powers to regulators. Virtually all major areas of the Reform Act remain subject to regulatory interpretation and implementation rules requiring rulemaking. The ultimate outcome of the regulatory rulemaking proceedings cannot be predicted. The regulations promulgated could have a material impact on consolidated financial results or financial condition.

**COMPETITION RISK -** Large life insurance companies that have greater financial resources, longer business histories, and may have more products present significant competition to smaller insurance companies. These larger companies also generally have large distribution opportunities, making product distribution difficult in building a small company.

**ASSUMPTION RISK -** In the life insurance business, assumptions about expected mortality, lapse rates, and other factors are made when developing the pricing and other terms of life insurance products. These assumptions are based on industry experience and are reviewed and revised regularly by an outside actuary to reflect actual experience on a current basis. Variation of actual experience from that assumed in developing such terms may affect a product's profitability or sales volume and adversely impact revenues.

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**LIABILITY RISK**—Underestimating future policy benefits results in incurring additional expenses when a company becomes aware of the inadequacy. As a result, the ability to achieve profits would suffer.

**INTEREST RATE RISK**—Spread is the difference between the amounts that the insurance company is required to pay under the contracts and the amounts it can earn on its investments intended to support its obligations under the contracts. Interest rate fluctuations affect an insurance company's ability to pay policyholder benefits with operating and investment cash flows, cash on hand, and other cash sources. Annuity products expose the risk that interest rate changes will reduce spread. Spread is a key component of net income.

To the extent that interest rates credited are less than those generally available in the marketplace, policyholder lapses, policy loans and surrenders, and withdrawals of life insurance policies and annuity contracts may increase as contract holders seek to purchase products with higher returns. This process may result in cash outflows requiring that an insurance subsidiary sell investments at a time when the prices of those investments are adversely affected by the increase in market interest rates, which may result in realized investment losses.

Increases in market interest rates may negatively affect profitability in periods of increasing interest rates. The ability to replace invested assets with higher-yielding assets is needed to fund higher crediting rates, which may be necessary to keep interest-sensitive products competitive.

**LAPSE AND WITHDRAWAL RISK -** Policy lapses above those actuarially anticipated would have a negative impact on financial performance. Profitability would be reduced if lapse and surrender rates exceed the assumptions upon which the insurance policies were priced. Policy sales costs are deferred and recognized over the life of a policy. Excess policy lapses cause the immediate expensing or amortizing of deferred policy sales costs. In addition, some of our policies allow holders to withdraw all or some of the policy's value, and withdrawals beyond those anticipated could impact our business.

**OPERATIONAL RISK -** In the insurance industry, successful incorporation and functionality of the internal audit function, the evolution of financial and administrative internal controls to safeguard human, facility, and financial assets electronically, including anti-fraud initiatives and compliance with anti-money laundering requirements as well as an effective disaster recovery program and effective business continuity programs, are necessary.

**TAX LAW RISK -** Congress considers legislation that could adversely affect the sale of life insurance products compared with other financial products. There can be no assurance as to whether such adverse legislation will be enacted or, if passed, whether such legislation would contain provisions with possible adverse effects on any annuity and life insurance products we and our operating subsidiaries develop.

Under the Internal Revenue Code, income taxes payable by policyholders on investment earnings is deferred during the accumulation period of certain life insurance and annuity products. This favorable tax treatment may give certain insurance products a competitive advantage over other non-insurance products. To the extent that the Internal Revenue Code may be revised to reduce the tax-deferred status of life insurance and annuity products or to increase the tax-deferred status of competing products, insurance companies would be adversely affected with respect to their ability to sell products. Also, depending on grandfathering provisions, the surrenders of existing annuity contracts and life insurance policies might increase. In addition, life insurance products are often used to fund estate tax obligations. We cannot predict what future tax initiatives may be proposed with respect to the estate tax or other taxes that may adversely affect us.

**REINSURANCE RISK -**In order to manage the risk of financial exposure to adverse underwriting results, reinsurers accept a portion of the risk of other insurance companies. However, the direct insurer remains liable with respect to ceded insurance should any reinsurer fail to meet the obligations assumed by the reinsurer.

**COVID-19 RISK** - The outbreak and world-wide spread of the COVID-19 pandemic negatively impacted the global economy, disrupted global supply chains, and created significant volatility and disruption in financial market. While we have not experienced significant disruptions to our business as a result of the COVID-19 pandemic, we have experienced higher claims on our insurance products, which may be due in part to the COVID-19 pandemic. The prolonged impact of COVID-19 pandemic, the resurgence of theCOVID-19 pandemic, or the occurrence of any other pandemic, could affect various aspects of our business. In addition, our investment portfolio may be adversely affected as a result of uncertainty surrounding the resurgence or occurence of a pandemic and its outcome.

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| **ITEM 1B.** | **UNRESOLVED STAFF COMMENTS.** |

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Not applicable.

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| **ITEM 1C.** | **CYBERSECURITY.** |

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Risk management is an essential component of our culture and business model. Guarding against the specific risks posed by cybersecurity threats has been and will continue to be very dynamic in nature, requiring that we remain agile and aware of internal and external changes. We recognize that cybersecurity threats can be among the most critical risks facing large companies. As a result, cybersecurity is treated as a Board-level matter and overseen by the Board. However, both the Board and management have an integral role in the identification, assessment and management of cybersecurity risk.

Management engages third parties with relevant expertise in assessing and managing cybersecurity threats. As a general matter, we take a proactive approach to assessing and monitoring cybersecurity-specific risks that is oriented around monitoring emerging external threats, ensuring controls are in place to identify and manage risk within our technology environment and creating a culture of vigilance across the organization. Annually we hire a third party to test for and resolve weaknesses and vulnerabilities within our systems and applications by using network and infrastructure vulnerability testing.

Our awareness and training program creates a risk-aware culture to ensure employees understand cybersecurity threats and are accountable for completing required training. We have an enterprise incident management plan that provides a framework for preparing for, managing and responding to cybersecurity incidents that may arise.

No risks from any known cybersecurity incidents have materially affected or are reasonably likely to materially affect our business strategy, results of operations or financial condition. For further discussion related to how cybersecurity risks may impact our performance in the future, see Item 1A. "Risk Factors."

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| **ITEM 2.** | **PROPERTIES.** |

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USAC and its subsidiaries share offices located at 1303 SW First American Place, Suite 200, Topeka, Kansas 66604 in a building purchased by DCLIC on November 15, 2020.

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| **ITEM 3.** | **LEGAL PROCEEDINGS** |

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Neither the Company nor any of its principals is presently engaged in any material pending litigation that might adversely impact its net assets.

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| **ITEM 4.** | **MINE SAFETY DISCLOSURES** |

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Not applicable.

**PART II**

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| **ITEM 5.** | **MARKET FOR REGISTRANT**'**S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.** |

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**(a)** **Market Information**

There is no established trading market for our voting common stock. Our securities are not listed for trading or quoted on any national securities exchange nor are bid or asked quotations reported in any over-the-counter quotation system.

As of December 31, 2025, we had issued and outstanding 7,788,922 shares of our voting common stock. In addition, we have issued 160,000 shares of restricted common stock to members of Board of Directors, which vest in accordance with the terms of the Restricted Stock Agreements entered into with each of the Directors. No other equity securities of the Company have been issued.

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**(b)** **Holders of Record**

As of March 1, 2026, there are approximately 3,500 holders of record of our voting common stock.

**(c)** **Dividends**

We have not paid dividends on USAC Common Stock and do not anticipate paying dividends in the foreseeable future. We intend to retain any future earnings for reinvestment into our business.

**(d)** **Securities Authorized for Issuance Under Equity Compensation Plans**

During the year ended December 31, 2024, the Company issued 250,000 shares of restricted stock to members of its Board of Directors under individual Restricted Stock Agreements ("RSAs") as part of the Company's compensation program. These awards are intended to align the interests of the Board with those of the Company's shareholders and to retain experienced leadership. A summary of the Company's non-vested restricted stock awards as of December 31, 2025 and changes for the year then ended is presented below:

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| Plan category (1) | Number of<br> securities to be<br> issued upon<br> vesting (lapse of<br> restrictions) |  | Weighted-average<br> grant date fair<br> value | Number of securities available<br> for future issuance under equity<br> compensation plans (2) |
|  |  |  |  | N/A |
| Individual compensation arrangement (restricted stock award) | 250000 | (2) | $1.00 |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Individual restricted stock awards were authorized by the Board and not submitted for approval by the Company's shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) 50,000 shares of restricted stock issued to Jennifer Schmidt were forfeited upon her resignation for the Company's Board of Directors in accordance with the terms of her RSA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Company has issued restricted stock to its Directors under individual Restricted Stock Agreements and has not adopted any equity compensation plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of the RSAs provide that the restricted shares awarded to the Company's Directors vest equally in 20% increments over each of the following five fiscal years, beginning with the year ended December 31, 2024 and continuing through December 31, 2029. A total of 40,000 shares vested in 2025 and are included in the Company's outstanding common stock. Any unvested shares of restricted stock are subject to forfeiture in the event of termination of service before the shares have vested, except in cases of death, disability, or a change in control of the Company.

**(e)** **Recent Sales of Unregistered Securities**

During the year ended December 31, 2025, the Company did not issue any shares pursuant to any unregistered offering.

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| **ITEM 6.** | **[Reserved.]** |

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| **ITEM 7.** | **MANAGEMENT**'**S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.** |

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*The following discussion should be read in conjunction with our consolidated financial statements and notes thereto included in this Form 10-K. In connection with, and because we desire to take advantage of, the* "*safe harbor*" *provisions of the Private Securities Litigation Reform Act of 1995, we caution readers regarding certain forward looking statements in the following discussion and elsewhere in this report and in any other statement made by, or on our behalf, whether or not in future filings with the Securities and Exchange Commission. Forward looking statements are statements not based on historical information and which relate to future operations, strategies, financial results or other developments. Forward looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, including those relating to the Covid-19 pandemic, many of which are beyond our control and many of which, with respect to future business decisions, are subject to change. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward looking statements made by, or on our behalf. We disclaim any obligation to update forward looking statements.*

***Overview***

USAC was formed as a Kansas corporation on April 24, 2009 to raise capital to form a new life insurance company. We presently conduct our business through our four wholly-owned subsidiaries: USALSC, a life insurance corporation; USALSC-Montana, a life insurance corporation; USAMC, an insurance marketing corporation; and USAIC, an investment management corporation

On January 2, 2012, USALSC was issued a Certificate of Authority to conduct life insurance business in the State of Kansas. We began third-party administrative services in 2015. USALSC re-domesticated to North Dakota in 2023. USALSC is currently authorized to conduct business in 18 states.

On August 1, 2017, the Company merged with Northern Plains Capital Corporation with the Company being the surviving entity. As a result of the merger, the Company acquired Dakota Capital Life Insurance Company which became a wholly owned subsidiary of USALSC. In 2023, Dakota Capital Life Insurance Company was merged into USALSC.

On December 14, 2018, the Company acquired Great Western Life Insurance Company. Great Western Life Insurance Company was renamed US Alliance Life and Security Company – Montana and is a subsidiary of USALSC.

The Company assumes business under reinsurance treaties. On January 1, 2013, the Company entered into an agreement to assume 20% of a certain block of health insurance policies from Unified Life Insurance Company. This agreement was terminated on December 31, 2025. On September 30, 2017, the Company entered into an agreement (the "2017 ALSC Agreement") to assume 100% of a certain block of life insurance policies from American Life & Security Company ("ALSC"). On April 15, 2020, with an effective date of January 1, 2020, the Company entered into an agreement with ALSC (the "2020 ALSC Agreement ") to assume a quota share percentage of a block of annuity policies. Effective December 31, 2020 USALSC entered into an agreement with ALSC, which provided for ALSC to recapture all reserves previously ceded to USALSC with respect to a portion of the 2017 ALSC Agreement.

On December 31, 2023 USALSC entered into an agreement with Lewer Life Insurance LLIC to assume a block of life and annuity policies.

On October 1, 2025, USALSC-Montana entered into an agreement with the Montana Funeral Trust, resulting in the issuance of $17,354,974 of annuity contracts.

***Mergers and Acquisitions***

On May 23, 2017 the Company entered into a definitive merger agreement with Northern Plains Capital Corporation. The merger transaction closed on August 1, 2017. NPCC shareholders received .5841 shares of US Alliance Corporation stock for each share of NPCC stock owned. USAC issued 1,644,458 shares of common stock to holders of NPCC shares.

On October 11, 2018 the Company entered into a stock purchase agreement with Great Western Insurance Company to acquire Great Western Life Insurance Company. The transaction closed on December 14, 2018. USALSC paid $500,000 to acquire the outstanding shares of GWLIC.

Effective December 31, 2020, DCLIC acquired a block of life insurance policies according to the terms of an assumption agreement with ALSC. The Company acquired fixed maturity securities and cash of $9,181,100, assumed liabilities of $10,972,785 and recorded VOBA of $2,163,541.

On December 31, 2023, DCLIC was merged into its parent company, USALSC.

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***Critical Accounting Policies and Estimates***

Our accounting and reporting policies are in accordance with GAAP. Preparation of the consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The following is an explanation of our accounting policies and the estimates considered most significant by management. These accounting policies inherently require significant judgment and assumptions and actual operating results could differ significantly from management's estimates determined using these policies. We believe the following accounting policies, judgments and estimates are the most critical to the understanding of our results of operations and financial position. A detailed discussion of significant accounting policies is provided in this report in the Notes to Consolidated Financial Statements included with this quarterly report.

***Valuation of Investments***

The Company's principal investments are in fixed maturity, mortgage participations, and equity securities. Fixed maturity, classified as available for sale, are carried at their fair value in the consolidated balance sheets, with unrealized gains or losses recorded in comprehensive income (loss). Our fixed income investment manager utilizes external independent third-party pricing services to determine the fair values of investment securities available for sale. Equity securities are carried at their fair value in the consolidated balance sheets, with unrealized gains or losses recorded in net income. Mortgages, including mortgage loan participations, are carried at unpaid principal balances, net of any unamortized premium or discount and valuation allowances.

The recognition of credit losses on debt securities is dependent on the facts and circumstances related to the specific security. If we determine a credit loss exists, the difference between amortized cost and fair value is recognized in the consolidated statements of comprehensive income. Our membership in the Federal Home Loan Bank ("FHLB") provides additional liquidity which further reduces the likelihood that we would be required to sell a security prior to recovery for liquidity purposes.

Mortgage loans on real estate, including mortgage loan participations, are carried at unpaid principal balances, net of any unamortized premium or discount and valuation allowances. Interest income is accrued on the principal amount of the mortgage loans based on its contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. The Company accrues interest on loans until probable the Company will not receive interest or the loan is 90 days past due. Interest income, amortization of premiums, accretion of discounts and prepayment fees are reported in investment income, net of related expenses in the consolidated statements of comprehensive income.

A mortgage loan is considered to be impaired when, based on the current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the mortgage agreement.

Valuation allowances on mortgage loans are established based upon inherent losses expected by management to be realized in connection with future dispositions or settlement of mortgage loans, including foreclosures. The Company establishes valuation allowances for estimated impairments on an individual loan basis as of the balance sheet date. Such valuation allowances are based on the excess carrying value of the loan over the present value of expected future cash flows discounted at the loan's original effective interest rate, the value of the loan's collateral if the loan is in the process of foreclosure or is otherwise collateral-dependent, or the loan's market value if the loan is being sold. These evaluations are revised as conditions change and new information becomes available. In addition to historical experience, management considers qualitative factors that include the impact of changing macro-economic conditions, which may not be currently reflected in the loan portfolio performance, and the quality of the loan portfolio.

Interest accrued or received on the net carrying amount of the impaired loan will be included in investment income or applied to the principal of the loan, depending on the assessment of the collectability of the loan. Mortgage loans deemed to be uncollectible or that have been foreclosed would be charged off against the valuation allowances and subsequent recoveries, if any, are credited to the valuation allowances. Changes in valuation allowances are reported in net investment gains (losses) on the consolidated statements of comprehensive income.

Other invested assets include collateral loans and private credit investments. The collateral loans and private credit investments are carried at fair value. The inputs used to measure these assets are classified as Level 3 within the fair value hierarchy.

Limited partnership interests consist of an investment in Mutual Capital Investment Fund. Limited partnerships interests are carried at net asset value as determined by a third-party valuation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Deferred Acquisition Costs***

The Company capitalizes and amortizes over the life of the premiums produced incremental direct costs that result directly from and are essential to the contract acquisition transaction and would not have been incurred by the Company had the contract acquisition not occurred. An entity may defer incremental direct costs of contract acquisition that are incurred in transactions with independent third parties or employees as well as the portion of employee compensation and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts. Additionally, an entity may capitalize as a deferred acquisition cost only those advertising costs meeting the capitalization criteria for direct-response advertising. Our insurance contracts are grouped by product type and contract issue year into cohorts consistent with the grouping used to estimate the related contract liabilities. DAC is amortized on a constant level basis over the life of the policy. For all products, in-force volume metrics are used as the constant level basis. The lapse and mortality assumptions used to amortize DAC are consistent with the assumptions used to estimate the liability for future policy benefits. The underlying assumptions used to determine DAC amortization are updated concurrently with any related assumption changes for the liability for future policy benefits and changes in estimates are recognized prospectively over the remaining expected term of the related contracts. An experience adjustment is applied if actual terminations are greater than expected.

***Policyholder Benefits***

Liabilities for future policy benefits represent the cost of claims that we estimate we will eventually pay to our policyholders which includes policy liabilities for claims not yet incurred and for claims that have been incurred or are estimated to have been incurred but not yet reported to us. The liability for future policy benefits is calculated based on the present value of the estimated future policy benefits less the present value of estimated future net premiums collected. Net premiums represent the portion of the gross premium required to provide for all benefits and expenses, excluding acquisition costs or any costs that are required to be charged to expense as incurred. In calculating the liability for future policy benefits, our long-duration contracts are grouped into cohorts by product type, contract issue year for direct business, and assumption year for assumed business.

The calculation of the liability for future policy benefits involves numerous assumptions including assumptions related to discount rate, lapses, mortality, and morbidity. Effective January 1, 2025, the Company has adopted an accounting pronouncement related to targeted improvements to to the accounting for long-duration contracts ("LDTI"), with a January 1, 2024 transition date (the "LDTI Transition Date"). The discount rate assumptions were initially set based on the expected investment yield of the assets supporting the reserves at the LDTI Transition Date, for policies originally issued on or before the LDTI Transition Date. The discount rate assumptions for new cohorts established after the transition date, are initially set based on the policy issuance date or policy renewal date, and are based on an upper-medium grade fixed-income instrument, which is generally equivalent to a single-A interest rate matched to the duration of our insurance liabilities. The initial, also referred to as the original, discount rate assumptions established for each cohort are used to determine interest accretion which is reported as a component of policy benefits on the statements of comprehensive income. After policy issuance or policy renewal, the discount rate assumptions are updated quarterly and used to update the liability at each reporting date to the current discount rate, with the corresponding change reflected as the change in the effect of discount rate assumptions on the liability for future policy benefits, net of reinsurance, on the statement of changes in other comprehensive income (loss). According to actuarial sensitivity tests, a 1% increase or decrease in interest rates is estimated to decrease or increase our policyholder benefit reserve by approximately $3 million. A 5% change in mortality is estimated to change our policyholder benefit reserve by approximately $70,000.

**New Accounting Standards**

A detailed discussion of new accounting standards is provided in the Notes to Consolidated Financial Statements beginning on p. F-7 of this annual report.

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**Discussion of Consolidated Results of Operations**

<u>Total Income.</u> Insurance revenues are primarily generated from premium revenues and investment income. Total income for the years ended December 31, 2025 and 2024 are summarized in the table below.

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | 2024 |
| Income: |  |  |
| Premium income | $**17347856** | $15338053 |
| Net investment income | **7308468** | 7597762 |
| Net investment (losses) gains | **(491476)** | 283423 |
| Other income | **408590** | 553035 |
| **Total income** | **24573438** | 23772273 |

---

Our 2025 total income increased to $24,573,438, an increase of $801,165 or 3% from the 2024 total income of $23,772,273. The increase is driven by increases in premium income. The Company records unrealized gains and losses on equity securities in total income in accordance with accounting standards. This standard continues to result in increased volatility in total income.

The following graph summarizes our five-year trend of total income:

![chart01.jpg](chart01.jpg)

*Premium income:* Premium income for 2025 was $17,347,856 compared to $15,338,053 in 2024, an increase of $2,009,803 or 13%. The increase was driven by an increase in direct single and recurring premiums. Even though it is a reduction in revenue, ceded premium increases reflect the growth of our group policy premiums as we focused on small companies to assist them with their employee benefits.

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Direct, assumed and ceded premiums for the years ended December 31, 2025 and 2024 are summarized in the following table:

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** |
| Direct | $**13750097** | $11928460 |
| Assumed | **5193631** | 4956205 |
| Ceded | **(1595872)** | (1546612) |
| Total | $**17347856** | $15338053 |

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The Company continuously searches for new product and distribution opportunities to continue to increase premium production on a direct and assumed basis.

*Investment income, net of expenses:* The components of net investment income for the years ended December 31, 2025 and 2024 are as follows:

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| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
| Fixed maturities | $**5460250** | $5985869 |
| Mortgages | **2067165** | 1680515 |
| Equity securities | **257693** | 313416 |
| Other invested assets | **128994** | 197760 |
| Cash and cash equivalents | **284938** | 322841 |
|  | **8199040** | 8500401 |
| Less investment expenses | **(890572)** | (902639) |
|  | $**7308468** | $7597762 |

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Net investment income for 2025 was $7,308,468, compared to $7,597,762 in 2024, a decrease of $289,294, or 4%. The decrease is due to reduced income on fixed maturity securities.

*Net investment gains (losses):* Accounting standards require that the unrealized gains and losses on equity securities be reported as income on the consolidated statements of comprehensive income. For the years ended December 31, 2025 and 2024, net investment gains (losses) are summarized in the following table.

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | 2024 |
| Recognized gains on sale of investments | $**143823** | $13031 |
| Realized loss on charge offs of investments | **(1065246)** |  |
| Change in allowance for credit loss recognized in earnings | **(43433)** | (34041) |
| Unrealized net gains recognized in earnings | **742754** | 8414 |
| Embedded derivative | **(269374)** | 296019 |
| Net investment (losses) gains | $**(491476)** | $283423 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment losses for 2025 were $491,476 compared to gains of $283,423 in 2024, a decrease of $774,899 or 273%. The decrease was driven by realized losses on investment write-downs.

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*Realized gains (losses):* Realized gains and losses related to the sale of securities and mortgage loan participations for the years ended December 31, 2025 and 2024 are summarized as follows:

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | 2024 |
| Gross gains | $**355547** | $201481 |
| Gross losses | **(1276970)** | (188450) |
| Net security losses | $**(921423)** | $13031 |
| Mortgage loans on real estate | **(43433)** | (34041) |
| (Increase) Decrease in allowance for credit losses | $**(43433)** | $(34041) |

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The net security losses were driven by realized losses on charge-offs of investments in 2025.

*Other income:* Other income for the year ended December 31, 2025 was $408,590 compared to $553,035 in 2024, a decrease of $144,445 or 26%. The decrease was the result of implementation fees for a third-party administration agreement in 2024 which did not recur in 2025.

<u>Expenses</u>. Expenses for the year ended December 31, 2025 and 2024 are summarized in the table below. With the implementation of LDTI, 2024 results have been restated from those previously reported in our 10-K for the year ended December 31, 2024 to comply with the new accounting standard. Please see the notes in the financial statement beginning on page F-7 for more details on the impact of this implementation.

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| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | 2024 |
| Expenses: |  |  |
| Death claims | **5252801** | 3983405 |
| Policyholder benefits | **7324481** | 6883283 |
| Increase in policyholder reserves | **6705244** | 5973329 |
| Commissions, net of deferrals | **962231** | 947548 |
| Amortization of deferred acquisition costs | **748446** | 945922 |
| Amortization of value of business acquired | **92420** | 92420 |
| Salaries & benefits | **1839528** | 1701745 |
| Other operating expenses | **2753822** | 2624371 |
| **Total expenses** | **25678973** | 23152023 |

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The following chart and graph summarizes our five-year expense trend:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Year | Increase in<br> Policyholder<br> Reserves | Other<br> Policy-related<br> Expenses | Operating<br> Expenses | Total<br> Expenses | % of Operating<br> Expense to<br> Total Expense |
| 2021 | 4063488 | 10627532 | 3244412 | 17935432 | **18%** |
| 2022 | 4207703 | 11623423 | 3480212 | 19311338 | **18%** |
| 2023 | 4589538 | 12111905 | 3586886 | 20288329 | **18%** |
| 2024 | 5566210 | 13347176 | 4326116 | 23239502 | **19%** |
| 2025 | 6705244 | 14380379 | 4593350 | 25678973 | **18%** |

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![chart02.jpg](chart02.jpg)

Increases in policyholder reserves represents funds that we maintain and invest for the future benefit of our policyholders. Other policy-related expenses represent the other expenses associated with fulfilling our obligations to our policyholders and producers. Operating expenses represent the costs to operate the company and consists of salaries and benefits and other operating expenses.

*Death claims:* Death benefits were $5,252,801 in the year ended December 31, 2025 compared to $3,983,405 for 2024, an increase of $1,269,396 or 32%. This increase is attributable to our growing block of in-force pre-need life insurance policies. We expect these claims to grow as we continue to increase the size of our in-force business.

*Policyholder benefits:* Policyholder benefits were $7,324,481 in the year ended December 31, 2025 compared to $6,883,283 in 2024, an increase of $441,198 or 6%. The primary driver of this increase is interest credited on our annuity contracts.

*Increase in policyholder reserves:* Policyholder reserves increased $6,705,244 in the year ended December 31, 2025, compared to $5,973,329, as adjusted, in 2024, an increase of $731,915 or 12%. The growth in reserves is the result of increased pre-need in-force policies.

*Commissions, net of deferrals:* The Company pays commissions to the ceding company on a block of assumed policies as well as commissions to agents on directly written business. Commissions, net of deferrals, were $962,231 in the year ended December 31, 2025, compared to $947,548 in 2024, an increase of $14,683 or 2%. This increase is due to an increase in and changing mix of premiums.

*Amortization of deferred acquisition costs:* The amortization of deferred acquisition costs ("DAC") was $748,446 in the year ended December 31, 2025, compared to $9945,922, as adjusted, in 2024, a decrease of $197,476 or 21%. The decrease is the result of amortization changes driven by the LDTI implementation.

*Amortization of value of business acquired:* The amortization of value of business acquired ("VOBA") was $92,420 in the years ended December 31, 2025 and 2024, respectively. VOBA is being amortized straight-line over 30 years.

*Salaries and benefits:* Salaries and benefits were $1,839,528 for the year ended December 31, 2025, compared to $1,701,745 in 2024, an increase of $137,783 or 8%. The increase was driven by increased employee compensation costs and additional team members.

*Other expenses:* Other operating expenses were $2,753,822 in the year ended December 31, 2025, compared to $2,624,371 in 2024, an increase of $129,451 or 5%. The increase is driven by increased actuarial and information technology ("IT") expenses.

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*Federal income tax (expense) benefit:* In the year ended December 31, 2025, the Company recognized federal income tax benefit of $318,693. In the year ended December 31, 2024, as adjusted, the Company recognized a federal income tax expense of $79,878. These are the result of changes in the deferred tax asset and deferred tax asset valuation allowance and due to current income tax expense.

*Net Income:* Our net loss was $786,842 in the year ended December 31, 2025 compared to net income of $540,372, as adjusted, in 2024, a decrease of $1,327,214. Our net loss per share was $0.10 compared to net income per share of $0.07, as adjusted, in 2024, basic and diluted.

The following graph illustrates our five-year trend of net income (loss) per share:

![chart03.jpg](chart03.jpg)

**Discussion of Consolidated Balance Sheet**

<u>Assets</u>. Assets have increased to $148,680,102 as of December 31, 2025, an increase of $17,509,970 or 13% from December 31, 2024 assets of $131,170,132. This is primarily the result of an increase in cash and fixed maturity securities.

*Available for sale fixed maturity securities*: As of December 31, 2025, we had available for sale fixed maturity assets of $86,534,704, an increase of $6,956,525 or 9% from the December 31, 2024 balance of $79,578,179. The increase is driven by new purchases.

*Equity securities, at fair value*: As of December 31, 2025, we had equity assets of $3,542,412, a decrease of $333,673 or 9% from the December 31, 2024 balance of $3,876,085. This decrease is driven by the sales of equity securities partially offset by improved market values.

*Limited partnership interests*: As of December 31, 2025, we had limited partnership interests of $1,293,005, an increase of 864,835 or 202% from the December 31, 2024 balance of $428,170. This is related to our investment in the Mutual Capital Investment Fund.

*Mortgage loans on real estate*: As of December 31, 2025, we had mortgage loans on real estate of $23,645,037, a decrease of $1,547,712 or 6% from the December 31, 2024 balance of $25,192,749. The decrease results from maturing mortgage loan participations.

*Other invested assets:* As of December 31, 2025, we had other invested assets of $1,018,640, a decrease of $90,966 or 8% from the December 31, 2024 balance of $1,109,606. The decrease was driven by fluctuations in the value of our other invested assets.

*Policy loans:* As of December 31, 2025, our policy loans were $41,314, an increase of $9,569 or 30% from the December 31, 2024 balance of $31,745. The increase is a result of new policy loan activity.

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*Real estate, net of depreciation:* As of December 31, 2025, we had real estate assets of $1,597,979 related to our home office building, a decrease of $54,574 or 3% from the December 31, 2024 balance of $1,652,553. The decrease is the result of building depreciation.

*Cash and cash equivalents*: As of December 31, 2025, we had cash and cash equivalent assets of $18,036,904, an increase of $11,133,121 or 161% from the December 31, 2024 balance of $6,903,783. This increase was the result of cash inflows in the fourth quarter from our Montana Funeral Trust partnership.

*Investment income due and accrued*: As of December 31, 2025, our investment income due and accrued was $860,697 compared to $954,324 as of December 31, 2024, a decrease of $93,627 or 10%. This decrease is attributable to a reduction in accrued income due to interest payments.

*Reinsurance related assets*: As of December 31, 2025, our reinsurance related assets were $1,177,656 compared to $788,886 as of December 31, 2024, an increase of $388,770 or 49%. This increase is the result of pending claim reimbursements from our reinsurers.

*Deferred acquisition costs, net*: As of December 31, 2025, our deferred acquisition costs were $4,739,627 compared to $4,402,996 as of December 31, 2024, an increase of $336,631 or 8%. The increase is the result of changing amortization of DAC related to the new LDTI accounting standard.

*Value of business acquired, net*: As of December 31, 2025 our value of business acquired asset was $2,241,133 compared to $2,333,553 as of December 31, 2024, a decrease of $92,420 or 4%. The decrease is the result of amortization of VOBA.

*Property, equipment and software, net*: As of December 31, 2025 our property, equipment and software assets were $119,068, a decrease of $17,285 or 13% from the December 31, 2024 balance of $136,353. This decrease is the result of depreciation.

*Goodwill*: As of December 31, 2025 and December 31, 2024, our goodwill was $277,542. Goodwill was established as a result of our merger with NPCC. We have determined that there has been no impairment to our goodwill balance.

*Deferred tax asset, net of valuation allowance:* The Company had a net deferred tax asset of $3,000,912 as of December 31, 2025, an increase of $138,755 or 5% from the December 31, 2024 balance of $2,862,157. The increase is the result of deferred federal income tax benefits.

*Other assets*: As of December 31, 2025, our other assets were $518,100, an increase of $58,998 or 12% from the December 31, 2024 balance of $459,102. This increase is the result of normal business activity.

<u>Liabilities</u>. Our total liabilities were $135,682,748 as of December 31, 2025, an increase of $18,472,382 or 16% from our December 31, 2024 liabilities of $117,210,366. This increase is driven by an increase in our policy liabilities.

*Policy liabilities*: Our total policy liabilities as of December 31, 2025 were $132,757,740 compared to $114,734,952 as of December 31, 2024, an increase of $18,022,788 or 16%. This increase is the result of the growth of our in-force business.

*Accounts payable and accrued expenses*: As of December 31, 2025, our accounts payable and accrued expenses were $1,575,654 compared to $1,133,521 as of December 31, 2024, an increase of $442,133 or 39%. The increase is driven by changes in amounts due to our reinsurers.

*Federal Home Loan Bank advance*: As of December 31, 2025 and 2024, the Company's outstanding advances were $1,250,000.

*Other liabilities*: As of December 31, 2025, we had other liabilities of $99,354 compared to $91,863 as of December 31, 2024, an increase of $7,461 or 8%. The increase is the result of normal business activity.

<u>Shareholders</u><u>'</u> <u>Equity</u>. Our shareholders' equity was $12,997,354 as of December 31, 2025, a decrease of $962,412 or 7% from our December 31, 2024 shareholders' equity of $13,959,766. The decrease in shareholders' equity was driven by our net loss.

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**Investments**

Our investment philosophy is reflected by the allocation of our investments. We emphasize investment grade debt securities with smaller holdings in equity securities, mortgages and other investments. The following table shows the carrying value of our investments by investment category and cash and cash equivalents, and the percentage of each to total invested assets as of December 31, 2025 and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
|  | Carrying | Percent | Carrying | Percent |
|  | Value | of Total | Value | of Total |
| Fixed maturities: |  |  |  |  |
| US Treasury securities | $732892 | 0.5% | $711377 | 0.6% |
| Corporate bonds | 28299216 | 20.9% | 21491820 | 18.1% |
| Municipal bonds | 5807136 | 4.3% | 4741149 | 4.0% |
| Redeemable preferred stocks | 1998438 | 1.5% | 2411234 | 2.0% |
| Term Loans | 11005804 | 8.1% | 12788304 | 10.8% |
| Mortgage backed and asset backed securities | 38691218 | 28.4% | 37434295 | 31.4% |
| Total fixed maturities | 86534704 | 63.7% | 79578179 | 66.9% |
| Mortgage loans | 23645037 | 17.4% | 25192749 | 21.2% |
| Other invested assets | 1018640 | 0.8% | 1109606 | 0.9% |
| Limited partnership interests | 1293005 | 1.0% | 428170 | 0.4% |
| Equities: |  |  |  |  |
| Common stock | 2097203 | 1.5% | 2395195 | 2.0% |
| Preferred stock | 1445209 | 1.1% | 1480890 | 1.2% |
| Total equities | 3542412 | 2.6% | 3876085 | 3.3% |
| Real estate, net of depreciation | 1597979 | 1.2% | 1652553 | 1.4% |
| Cash and cash equivalents | 18036904 | 13.3% | 6903783 | 5.8% |
| Total | $135668681 | 100.0% | $118741125 | 100.0% |

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The total value of our investments and cash and cash equivalents increased to $135,668,681 as of December 31, 2025 from $118,741,125 at December 31, 2024, an increase of $16,927,556 or 14%. Increases in investments are primarily attributable to premium income and improved market values.

The following table shows the distribution of the credit ratings of our portfolio of fixed maturity securities by carrying value as of December 31, 2025 and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
|  | Fair | Percent | Fair | Percent |
|  | Value | of Total | Value | of Total |
| AAA and U.S. Government | $8939711 | 10.3% | $5470235 | 6.9% |
| AA | 13834491 | 16.0% | 10469465 | 13.1% |
| A | 11839821 | 13.7% | 15174048 | 19.1% |
| BBB | 30102608 | 34.8% | 35807023 | 45.0% |
| BB | 2965831 | 3.4% | 4378680 | 5.5% |
| B | 1236377 | 1.4% | 90675 | 0.1% |
| Not Rated - Certificates of Deposit | 8650000 | 10.0% |  | 0.0% |
| Not Rated - Private Placement | 8965865 | 10.4% | 8188053 | 10.3% |
| Total | $86534704 | 100.0% | $79578179 | 100.0% |

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The amortized cost and fair value of debt securities as of December 31, 2025 and 2024, by contractual maturity, are shown below. Equity securities do not have stated maturity dates and therefore are not included in the following maturity summary. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2024 | As of December 31, 2024 |
|  | Amortized Cost | Fair Value | Amortized Cost | Fair Value |
| Amounts maturing in: |  |  |  |  |
| One year or less | $1074089 | $1072360 | $2329128 | $2329128 |
| After one year through five years | 23367252 | 23263307 | 18590198 | 18410081 |
| After five years through ten years | 4878273 | 4797585 | 2032061 | 1967540 |
| More than 10 years | 19722631 | 16711796 | 20606740 | 17025901 |
| Redeemable preferred stocks | 2142141 | 1998438 | 2562893 | 2411234 |
| Mortgage backed and asset backed securities | 38852468 | 38691218 | 37664287 | 37434295 |
| Total amortized cost and fair value | $90036854 | $86534704 | $83785307 | $79578179 |

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**Market Risk of Financial Instruments**

We hold a diversified portfolio of investments that primarily includes cash, bonds, equity securities, mortgage loans, and other invested assets. Each of these investments is subject to market risks that can affect their return and their fair value. The primary market risks affecting the investment portfolio are interest rate risk, credit risk, and equity risk.

*<u>Interest Rate Risk</u>*

Interest rate risk arises from the price sensitivity of investments to changes in interest rates. Interest represents the greatest portion of an investment's return for most fixed maturity securities in stable interest rate environments. The changes in the fair value of such investments are inversely related to changes in market interest rates. As interest rates fall, the interest and dividend streams of existing fixed-rate investments become more valuable and fair values rise. As interest rates rise, the opposite effect occurs. Changes in fair value of our fixed maturity securities due to interest rates are reflected through accumulated other comprehensive income. Significant fluctuations may result in material volatility of accumulated other comprehensive income.

We work to mitigate our exposure to adverse interest rate movements through laddering the maturities of the fixed maturity investments and through maintaining cash and other short-term investments to assure sufficient liquidity to meet our obligations and to address reinvestment risk considerations. Due to the composition of our book of insurance business, we believe it is unlikely that we would encounter large surrender activity due to an interest rate increase that would force the disposal of fixed maturities at a loss. Additionally, USALSC is a member of the FHLB of Topeka, which provides access to liquidity and further reduces the likelihood of disposing of fixed maturities at a loss.

*<u>Credit Risk</u>*

We are exposed to credit risk through counterparties and within the investment portfolio. Credit risk relates to the uncertainty associated with an obligor's ability to make timely payments of principal and interest in accordance with the contractual terms of an instrument or contract. We manage our credit risk through established investment policies and guidelines which address the quality of creditors and counterparties, concentration limits, diversification practices and acceptable risk levels. These policies and guidelines are regularly reviewed and approved by senior management and USAC's Board of Directors.

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**Liquidity and Capital Resources**

Premium income, deposits to policyholder account balances, investment income, and capital raising are the primary sources of funds while withdrawals of policyholder account balances, investment purchases, policy benefits in the form of claims, and operating expenses are the primary uses of funds. To ensure we will be able to pay future commitments, the funds received as premium payments and deposits are invested in primarily fixed income securities. Funds are invested with the intent that the income from investments, plus proceeds from maturities, will in the future meet our ongoing cash flow needs. The approach of matching asset and liability durations and yields requires an appropriate mix of investments. Our investments consist primarily of marketable debt securities that could be readily converted to cash for liquidity needs. Cash flow projections and cash flow tests under various market interest scenarios are also performed annually to assist in evaluating liquidity needs and adequacy. The Company has two past due loans with principal net of allowances in the amount of $815,757. The Company does not anticipate this to have a material impact on our financial condition or liquidity. As a member of the Federal Home Loan Bank, USALSC has immediate access to additional cash liquidity, if needed.

Net cash provided by operating activities was $8,885,836 for the year ended December 31, 2025. The primary sources of cash from operating activities were premiums received from policyholders as well as investment income. The primary uses of cash for operating activities were for payments of commissions to agents and settlement of policy liabilities. Net cash used in investing activities was $5,570,136. The primary uses of cash was purchases of fixed maturity, mortgage, and equity investments. Cash provided by financing activities was $7,817,421. The primary sources of cash were receipts on deposit-type contracts.

At December 31, 2025, we had cash and cash equivalents totaling $18,036,904. We believe that our existing cash and cash equivalents are sufficient to fund the anticipated operating expenses and capital expenditures for the foreseeable future. We have based this estimate upon assumptions that may prove to be wrong and we could use our capital resources sooner than we currently expect. The growth of USALSC, our primary insurance subsidiary, is uncertain and may require additional capital as it continues to grow.

Cash flow from insurance activities is a non-GAAP financial measure. Cash flow from insurance activities combines cash flow from operations with the net cash received from deposit type contracts to show the impact of our insurance operations on our cash flows. Cash flow from deposit type contracts is primarily made up of funds received into our annuity products. The following table reconciles cash flow from operations to cash flow from insurance activities:

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| | | | |
|:---|:---|:---|:---|
| Year | Cash Flow<br> From<br> Operations | Net Cash Flow<br> From Deposit<br> Type Contracts | Cash Flow<br> from Insurance<br> Activities |
| 2021<br>| 3411873 | 2050078 | $5461951 |
| 2022 | 4787903 | 2145995 | $6933898 |
| 2023 | 7441585 | (3942581) | $3499004 |
| 2024 | 9175556 | (2034236) | $7141320 |
| 2025 | 8885836 | 7777877 | $16663713 |

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The following chart and graph illustrate our five-year trend of cash flow from insurance activities:

![chart04.jpg](chart04.jpg)

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**Impact of Inflation**

Insurance premiums are established before the amount of losses, or the extent to which inflation may affect such losses and expenses, are known. We attempt, in establishing premiums, to anticipate the potential impact of inflation. If, for competitive reasons, premiums cannot be increased to anticipate inflation, this cost would be absorbed by us. Inflation also affects the rate of investment return on the investment portfolio with a corresponding effect on investment income.

**Off-Balance Sheet Arrangements**

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

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| | |
|:---|:---|
| **ITEM 7A.** | **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK** |

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As a "smaller reporting company", the Company is not required to provide disclosure pursuant to this item.

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| | |
|:---|:---|
| **ITEM 8.** | **FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA** |

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The consolidated financial statements are included as part of this reporting beginning on page F-1.

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| | |
|:---|:---|
| **ITEM 9.** | **CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE** |

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Crowe LLP ("Crowe") served as the Company's auditor for the years ended December 31, 2025 and 2024. There are not and have not been any disagreements between USAC and its auditor, Crowe, LLP, on any matter of accounting principles, practices or financial statement disclosure.

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| | |
|:---|:---|
| **ITEM 9A.** | **CONTROLS AND PROCEDURES** |

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<u>Evaluation of Disclosure Controls</u>

We have established disclosure controls and procedures to ensure, among other things, material information relating to our Company, including our consolidated subsidiaries, is made known to our officers who certify our financial reports and to the other members of our senior management and the Board of Directors.

There were no changes to the Company's internal control over financial reporting as defined in Exchange Act Rule 13a-15(f) during the year ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, the Company's control over financial reporting.

<u>Management</u><u>'</u><u>s Report on Internal Control Over Financial Reporting</u>

Management is responsible for establishing and maintaining an adequate system of internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. The Company's system is designed to provide reasonable assurance to management and our Board of Directors regarding preparation of reliable published financial statements and safeguarding of our assets.

The Company's management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2025. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control Integrated Framework (2013). It was determined that the Company's internal control over financial reporting was effective.

There are inherent limitations to the effectiveness of any system of internal control over financial reporting, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective internal control over financial reporting controls can only provide reasonable assurance of achieving their control objectives.

This annual report does not include an audit attestation report from our registered public accounting firm on the Company's internal control over financial reporting. Management's report was not subject to attestation by our independent registered public accounting firm due to the rules of the SEC for non-accelerated filers.

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| | |
|:---|:---|
| **ITEM 9B.** | **OTHER INFORMATION** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the twelve months ended December 31, 2025, none our directors or officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has not adopted an insider trading policy governing the purchase, sale, or other disposition of the Company's securities by its officers, directors, and significant shareholders. The Company believes such a policy is not necessary as there is no trading market for the Company's securities.

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| | |
|:---|:---|
| **ITEM 9C.** | **DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS** |

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Not applicable.

**PART II**

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| | |
|:---|:---|
| **ITEM 10.** | **DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE** |

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The information required by this item is set forth under the captions "Proposal One-Election of Directors," "Corporate Governance," "Executive Officers" and "Beneficial Ownership Reporting Compliance" in our definitive proxy statement to be filed in connection with our 2026 annual stockholders' meeting ("2026 Proxy Statement") and is incorporated herein by reference.

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| | |
|:---|:---|
| **ITEM 11.** | **EXECUTIVE COMPENSATION** |

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The information required by this item is set forth under the captions "Director and Management Compensation" in our 2026 Proxy Statement and is incorporated herein by reference.

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| | |
|:---|:---|
| **ITEM 12.** | **SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS** |

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The information required by this item is set forth under the captions "Security Ownership" in our 2026 Proxy Statement and is incorporated herein by reference.

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| | |
|:---|:---|
| **ITEM 13.** | **CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE** |

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The information required by this item is set forth under the captions "Certain Relationships and Related Parties" in our 2026 Proxy Statement and is incorporated herein by reference.

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| | |
|:---|:---|
| **ITEM 14.** | **PRINCIPAL ACCOUNTANT FEES AND SERVICES** |

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The information required by this item is set forth under the caption "Principal Accountant Fees and Services" in our 2026 Proxy Statement and is incorporated herein by reference.

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**PART IV**

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| | |
|:---|:---|
| **ITEM 15.** | **EXHIBITS AND FINANCIAL STATEMENT SCHEDULES** |

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(1) Consolidated financial statements:

The list of financial statements filed with this Annual Report on Form 10-K is provided on page F-1.

**FINANCIAL STATEMENT SCHEDULES**

We have omitted schedules required by applicable SEC accounting regulations because they are either not required under the related instructions, are inapplicable, or we present the required information in the financial statements or notes thereto.

**<u>Exhibit Index</u>**

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| | |
|:---|:---|
| 2.1 | [<u>Plan and Agreement of Merger amount Northern Plains Capital Corporation, US Alliance Corporation and Acquisition Merger Sub, Inc., filed as Exhibit 2.1 to the Company's Registration Statement on Form S-4 filed on June 1, 2017 (File No. 333-218389), is incorporated herein by reference as Exhibit 2.1.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774917010417/ex2-1.htm) |
| 2.2 | [<u>Amendment dated May 21, 2017 to Plan and Agreement of Merger among Northern Plains Capital Corporation, US Alliance Corporation and Acquisition Merger</u> <u>Sub, Inc., filed as Exhibit 2.2 to the Company's Registration Statement on Form S-4 filed on June 1, 2017 (File No. 333-218389), is incorporated herein by reference as Exhibit 2.2.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774917010417/ex2-2.htm) |
| 2.3 | [<u>Stock Purchase Agreement dated October 11, 2018 between Great Western Insurance Company and US Alliance Life and Security Company, filed as Exhibit 10.1 to the Company'</u><u>s Current Report on Form 8-K filed on October 16, 2018 (File No. 000-55627), is incorporated herein by reference as Exhibit 2.3.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774918018334/ex_125503.htm) |
| 2.4 | [Articles of Merger dated December 29, 2023 merging Dakota Capital Life Insurance Company with and into US Alliance Life and Security Company, filed as Exhibit 2.4 to the Company's Annual Report on Form 10-K filed on April 1, 2024 (File No. 000-55627) is incorporated herein by reference as Exhibit 2.4.](ex_933339.htm) |
| 3.1 | [<u>Articles of Incorporation of US Alliance Corporation (filed as Exhibit 3.1 to the Company'</u><u>s Registration Statement on Form 10 filed on May 2, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.1.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000004/usalliance1004292016ex1.htm) |
| 3.1.1 | [<u>First Amendment to the Articles of Incorporation of US Alliance Corporation, filed as Exhibit 3.1.1 to the Company'</u><u>s Current Report on Form 8-K filed on June 9, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.1.1.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774917011055/ex3-11.htm) |
| 3.1.2 | [<u>Second Amendment to the Articles of Incorporation of US Alliance Corporation, filed as Exhibit 3.1.2 to the Company'</u><u>s Current Report on Form 8-K filed on June 9, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.1.2.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774917011055/ex3-12.htm) |
| 3.2 | [<u>Bylaws of US Alliance Corporation (filed as Exhibit 3.2 to the Company'</u><u>s Registration Statement on Form 10 filed on May 2, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.2.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000004/usalliance1004292016ex2.htm) |
| 3.2.1 | [<u>Amendment No. 1 to the Bylaws of US Alliance Corporation, filed as Exhibit 3.2.1 to the Company's Current Report on Form 8-K filed on June 9, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 3.2.1.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774917011055/ex3-2.htm) |
| 4.1 | [<u>Form of Warrant to Purchase Common Shares of US Alliance Corporation, filed as Exhibit 4.1 to the Company'</u><u>s Registration Statement on Form 10 filed on May 2, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 4.1.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000004/usalliance1004292016ex4.htm) |

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| | |
|:---|:---|
| 4.2 | [<u>Description of US Alliance Corporation'</u><u>s Securities Registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended, filed as Exhibit 4.2 to the Company</u><u>'</u><u>s Annual Report on Form 10-K filed on February 2, 2020, (File No. 000-55627), is incorporated herein by reference as Exhibit 4.2.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774920003144/ex_172529.htm) |
| 4.3 | [<u>Restricted Stock Agreement dated December 11, 2024 between US Alliance Corporation, Inc. and John Helms, filed as Exhibit 10.2 to the Company'</u><u>s Current Report on Form 8-K filed on December 18, 2024 (filed No. 000-55627, is incorporated herein by reference as Exhibit 4.3</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774924037833/ex_758840.htm) |
| 4.4 | [<u>Restricted Stock Agreement dated December 11, 2024 between US Alliance Corporation, Inc. and William Graves, filed as Exhibit 10.3 to the Company'</u><u>s Current Report on Form 8-K filed on December 18, 2024 (filed No. 000-55627, is incorporated herein by reference as Exhibit 4.4</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774924037833/ex_758841.htm) |
| 4.5 | [<u>Restricted Stock Agreement dated December 11, 2024 between US Alliance Corporation, Inc. and James Poolman, filed as Exhibit 10.4 to the Company'</u><u>s Current Report on Form 8-K filed on December 18, 2024 (filed No. 000-55627, is incorporated herein by reference as Exhibit 4.5.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774924037833/ex_758842.htm) |
| 4.6 | [<u>Restricted Stock Agreement dated December 11, 2024 between US Alliance Corporation, Inc. and Juliann Mazachek, filed as Exhibit 10.5 to the Company'</u><u>s Current Report on Form 8-K filed on December 18, 2024 (filed No. 000-55627, is incorporated herein by reference as Exhibit 4.6.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774924037833/ex_758843.htm) |
| 10.1 | [<u>Automatic Yearly Term Reinsurance Agreement between US Alliance Life and Security Company and General Re Life Insurance Corporation, filed as Exhibit 10.2 to the amended Company's Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.1.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000006/usallianceex102.htm) |
| 10.2 | [<u>Group Long Term and Short Term Disability Reinsurance Agreement between US Alliance Life and Security Company and Reliance Standard Life Insurance Company, DBA Custom Disability Solutions, filed as Exhibit 10.3 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.2.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000006/usallianceex103.htm) |
| 10.3 | [<u>Automatic Reinsurance Agreement between US Alliance Life and Security Company and Optimum Re Insurance Company (schedules omitted), filed as Exhibit 10.4 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.3.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000006/usallianceex104.htm) |
| 10.4 | [<u>Bulk Reinsurance Agreement between US Alliance Life and Security Company and Optimum Re Insurance Company, filed as Exhibit 10.5 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.5.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000006/usallianceex105.htm) |
| 10.5 | [<u>Group Medical Reinsurance Agreement between US Alliance Life and Security Company and Unified Life Insurance Company, filed as Exhibit 10.6 to the Company's</u> <u>amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.5.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000006/usallianceex106.htm) |
| 10.6.1 | [<u>Investment Management Agreement between US Alliance Investment Corporation and General Re - New England Asset Management, Inc., filed as Exhibit 10.7.1 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.6.1.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000006/usallianceex1071.htm) |
| 10.6.2 | [<u>Subadvisory</u> <u>Investment Management Agreement between US Alliance Investment Corporation and General Re - New England Asset Management, Inc., filed as Exhibit 10.17.2 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.6.2.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000006/usallianceex1072.htm) |
| 10.7 | [<u>Third Party Insurance Services Agreement between US Alliance Life and Security Company and Dakota Capital Life Insurance Company, as amended, filed as Exhibit 10.8 to the Company's amended Registration Statement on Form 10 filed June 29, 2016 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.7.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000146391316000006/usallianceex108.htm) |
| 10.8 | [<u>Critical Illness Reinsurance Treaty, Effective 9/1/16 between US Alliance Life and Security Company and General Re Life Corporation, filed as Exhibit 10.9 to the Company's Annual Report on Form 10-K filed February 17, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.8.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774917002785/ex10-9.htm) |
| 10.9 | [<u>Critical Illness Reinsurance Treaty, Effective 9/1/16 between US Alliance Life and Security Company and Unified Life Insurance Company, filed as Exhibit 10.10 to the Company's Annual Report on Form 10-K filed February 17, 2017 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.9.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774917002785/ex10-10.htm) |
| 10.10 | [<u>Coinsurance Agreement between US Alliance Life and Security Company and American Life & Security Company of Nebraska effective as of September 30, 2017, filed as Exhibit 10.11 to the Company Annual Report filed on February 21, 2018 (File No. 000-55627) is incorporated herein by reference as Exhibit 10.10</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774918002993/ex_105266.htm) |

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|:---|:---|
| 10.10.1 | [<u>Amendment No. 1 to ALSC 2017 Coinsurance Agreement effective as of June 1, 2020, filed as Exhibit 10.10.1 to the Company's Annual Report on Form 10-K filed on February 23,</u> <u>2021 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.10.1.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774921003666/ex_226179.htm) |
| 10.10.2 | [<u>Second Amendment to ALSC 2017 Coinsurance Agreement effective as of December 31, 2020, filed as Exhibit 10.10.2</u> <u>to the Company's Annual Report on Form 10-K filed on February 23,</u> <u>2021 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.10.2.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774921003666/ex_226180.htm) |
| 10.11\* | [<u>Employment Agreement dated June 4, 2018 between US Alliance Corporation and Jeffrey Brown, filed as Exhibit 10.1 to the Company'</u><u>s Current Report on Form 8-K filed on June 7, 2018 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.11.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774918011404/ex_116016.htm) |
| 10.12 | [<u>Coinsurance Agreement effective January 1, 2020 between US Alliance Life and Security Company and American Life & Security Corporation, filed as Exhibit 10.12 to the Company'</u><u>s Quarterly Report on Form 10-Q filed on May 12, 2020, (File No. 000-55627), is incorporated herein by reference as Exhibit 10.12.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774920010391/ex_183842.htm) |
| 10.13 | [<u>Commercial Real Estate Contract dated November 16, 2020 between Dakota Life Insurance Company and Trinity Life Insurance Company, filed as Exhibit 10.1 to the Company'</u><u>s Current Report on Form 8-K filed on November 20, 2020, (File No. 000-55627), is incorporated herein by reference as Exhibit 10.13.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774920024279/ex_215178.htm) |
| 10.14 | [<u>Assumption Reinsurance Agreement effective December 31, 2020 between Dakota Life Insurance Company and American Life & Security Corporation, filed as Exhibit 10.14</u> <u>to the Company's Annual Report on Form 10-K filed on February 23,</u> <u>2021 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.14.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774921003666/ex_226181.htm) |
| 10.15\* | [<u>Employment Agreement dated March 15, 2021 between US Alliance</u> <u>Corporation and Jeffrey Brown, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on March 18, 2021 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.15.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774921006440/ex_235167.htm) |
| 10.15.1\* | [<u>Amendment to Employment Agreement dated April 12, 2024 between US Alliance Corporation and Jeffrey Brown, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 12, 2024 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.15.1.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774921023074/ex_288507.htm) |
| 10.16\* | [<u>Employment Agreement dated September 28, 2021 between US Alliance</u> <u>Corporation and Jack Brier, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on October 1, 2021 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.16.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774923000628/ex_461627.htm) |
| 10.16.1\* | [<u>Amendment to Employment Agreement dated January 1, 2023 between US Alliance Corporation and Jack Brier, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on January 6, 2023 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.16.1.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774923000628/ex_461627.htm) |
| 10.16.2\* | [<u>Amendment to Employment Agreement dated December 16, 2024 between US Alliance Corporation and Jack Brier, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on December 16, 2024 (File No. 000-55627), is incorporated herein by reference as Exhibit 10.16.2.</u>](http://www.sec.gov/Archives/edgar/data/1463913/000143774924037803/ex_758298.htm) |
| 10.21 | [Life Insurance and Annuity Reinsurance and Administration Agreement dated December 31, 2023 between US Alliance Life and Security Company and Lewer Life Insurance LLIC, filed as Exhibit 10.18 to the Company's Annual Report on Form 10-K (File No. 000-55627), is incorporated herein by reference as Exhibit 10.21.](ex_933340.htm) |
| 10.22\*\* | [Amended and Restated Trust Agreement for the Montana Funeral Trust dated February 6, 2026 among US Alliance Life and Security Company - Montana and the Montana Funeral Directors Association, Inc. and the eligible Montana-based Participating Mortuaries](ex_933118.htm) |
| 21.1\*\* | [List of Subsidiaries](ex_925696.htm) |
| 24.1 | [<u>Power of Attorney (contained in the signature page herein)</u>](#poa) |
| 31.1\*\* | [Certification of Chief Executive Officer of US Alliance Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex_925697.htm) |
| 31.2\*\* | [Certification of Principal Financial Officer of US Alliance Corporation pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex_925698.htm) |
| 32.1\*\* | [Certifications of the Chief Executive Officer of US Alliance pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex_925699.htm) |
| 32.2\*\* | [Certifications of the Principal Financial Officer of US Alliance pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex_925700.htm) |

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| | |
|:---|:---|
| 101.INS\*\*\* | Inline XBRL Instance |
| 101.SCH\*\*\* | Inline XBRL Taxonomy Extension Schema |
| 101.CAL\*\*\* | Inline XBRL Taxonomy Extension Calculation |
| 101.DEF\*\*\* | Inline XBRL Taxonomy Extension Definition |
| 101.LAB\*\*\* | Inline XBRL Taxonomy Extension Labels |
| 101.PRE\*\*\* | Inline XBRL Taxonomy Extension Presentation |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

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\* Management or Compensatory Contract

\*\* Filed herewith

\*\*\* XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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|:---|:---|:---|
|  |  | **US ALLIANCE CORPORATION** |
|  |  | (Registrant) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Date: March 17, 2026** | **By:** | */s/ Jack H. Brier* |
|  |  | Jack H. Brier |
|  |  | *President and Chairman* |
|  |  | (principal executive officer) |

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**POWER OF ATTORNEY**

Know all people by these presents, that each person whose signature appears below constitutes and appoints Jack H. Brier his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any amendments to this annual report on Form 10-K, and to file the same, with all exhibits thereto, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully and to all intents and purposes as he or she might or could do in person, hereby confirming all that said attorneys-in-fact and agents or either of them, or his or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Company and in the capacities indicated on February 1, 2026.

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| | |
|:---|:---|
| **<u>Signature</u>** | **<u>Title</u>** |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;Jack H. Brier | President and Chairman |
| Jack H. Brier |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;Jeff Brown | Vice-President, Principal Financial Officer and Treasurer |
| Jeff Brown |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;Jim Poolman | Director |
| Jim Poolman |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;John Helms | Director |
| John Helms |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;William Graves | Director |
| William Graves |  |
| /S/&nbsp;&nbsp;&nbsp;&nbsp;JuliAnn Mazachek | Director |
| JuliAnn Mazachek |  |

---

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**US Alliance Corporation**

Consolidated Financial Statements

December 31, 2025 and 2024

(With Independent Auditor's Report Thereon)

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[**Table of Contents**](#toc)

**Contents**

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| | |
|:---|:---|
| [<u>Report of Independent Registered Public Accounting Firm</u>](#REPORT) <u>(PCAOB ID</u> <u>173)</u> | [F-1](#REPORT) |
| [<u>Consolidated</u> <u>Financial Statements</u>](#consolidated) |  |
| &nbsp;&nbsp;&nbsp; [<u>Consolidated Balance Sheets</u>](#balance) | <u>[F-4](#balance)</u> |
| &nbsp;&nbsp;&nbsp; [<u>Consolidated Statements of Comprehensive Loss</u>](#comp_loss) | <u>[F-5](#comp_loss)</u> |
| &nbsp;&nbsp;&nbsp; [<u>Consolidated Statements of Changes in Shareholders</u><u>'</u> <u>Equity</u>](#equity) | <u>[F-6](#equity)</u> |
| &nbsp;&nbsp;&nbsp; [<u>Consolidated Statements of Cash Flows</u>](#cash_flow) | <u>[F-7](#cash_flow)</u> |
| &nbsp;&nbsp;&nbsp; [<u>Notes to Consolidated Financial Statements</u>](#notes_to_consolidated) | <u>[F-8](#notes_to_consolidated)</u> – <u>[F-42](#end_of_notes)</u> |

---

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Shareholders and the Board of Directors of US Alliance Corporation

Topeka, Kansas

***Opinion***

We have audited the consolidated financial statements of US Alliance Corporation (the "Company"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements (collectively referred to as the "financial statements").

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

***Change in Accounting Principle***

As discussed in Note 1 to the consolidated financial statements, the Company changed its method of accounting, measurement and disclosure of long-duration contracts effective January 1, 2025, using the modified retrospective method applied as of the transition date of January 1, 2024, due to the adoption of ASU 2018-12, *Financial Services* – *Insurance (Topic 944): Targeted Improvements to the Accounting for Long Duration Contracts* ("ASU 2018-12"). The adoption is also communicated as a critical audit matter below.

***Critical Audit Matters***

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

*Valuation of Level 3 Investments* – *Refer to Notes 1 and 4 to the Financial Statements*

Investments in certain fixed maturity securities and other invested assets classified as available-for-sale are reported in the financial statements. These investments are classified under Level 3 in the fair value hierarchy and their fair values are based on unobservable inputs that reflect management's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Management utilized a third-party pricing service in developing their fair value estimates. These Level 3 investments had an estimated fair value of $12,513,794, as of December 31, 2025. We considered the fair value of Level 3 fixed maturity securities and other invested assets as a critical audit matter because of the unobservable inputs used by management to estimate fair value and the high degree of measurement uncertainty. Auditing these inputs required especially subjective judgment and the audit effort was extensive, including the use of our fair value specialist to assist in fully evaluating the inputs.

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[**Table of Contents**](#toc)

How the Critical Audit Matter Was Addressed in the Audit:

Our audit procedures related to the valuation of Level 3 fixed maturity securities and other invested assets determined using discounted cash flow techniques included, among others, the following:

● We tested the accuracy and completeness of relevant security attributes, including structure, maturity dates and interest rates, used in the determination of Level 3 fair values.

● With the involvement of our fair value specialists, we developed independent fair value estimates for a sample of securities and compared our estimates to the Company's estimates and evaluated differences. We developed our estimate by evaluating the observable and unobservable inputs used by management or developing independent inputs.

*Valuation of Reserves for Deposit Type Contracts and Policyholder Benefit Liabilities and Amortization of Deferred Acquisition Costs* – *Refer to Note 1 to the Financial Statements* 

The Company's management sets assumptions in (1) recording the reserves for deposit type contracts and policyholder benefit liabilities and (2) determining amortization of deferred acquisition costs. The Company adopted ASU 2018-12 on January 1, 2025 using the modified retrospective application as of the transition date of January 1, 2024. The adoption of ASU 2018-12 significantly modified the Company's accounting for and disclosure of long-duration contracts. The most significant assumptions in recording these liabilities include discount rates, mortality and morbidity. Discount rates are determined based upon upper-medium grade fixed income instrument yields matched to cohort duration, and mortality and morbidity assumptions are based on published mortality tables, adjusted for changes in experience. We considered auditing these assumptions as a critical audit matter because of the inherent uncertainty of these significant assumptions and auditing the development of these assumptions involved especially subjective auditor judgment.

How the Critical Audit Matter Was Addressed in the Audit:

Our audit procedures related to management's judgments regarding the assumptions used in the development of the reserves for deposit type contracts and policyholder benefit liabilities and the amortization of deferred acquisition costs included the following, among others:

● We tested the underlying data used in the development of the assumptions as well as in the determination of the reserves for deposit type contracts and policyholder benefit liabilities and the amortization of deferred acquisition costs.

● We evaluated management's selected actuarial assumptions, including testing the accuracy and completeness of the supporting experience studies.

● With the assistance of our actuarial specialists, we evaluated management's judgments regarding the assumptions used in the development of reserves for deposit type contracts and policyholder benefit liabilities and the amortization of deferred acquisition costs.

● We evaluated whether the assumptions used were consistent with evidence obtained in other areas of the audit.

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*Adoption of Accounting Pronouncement* – *Targeted Improvements to the Accounting for Long-Duration Contracts* – *Refer to Note 1 of the Financial Statements (also see Change in Accounting Principle explanatory paragraph above)*

The Company adopted ASU 2018-12 on January 1, 2025 using the modified retrospective application as of the transition date of January 1, 2024. The adoption of ASU 2018-12 significantly modified the Company's accounting for and disclosure of long-duration life contracts. We identified the adoption of ASU 2018-12 as a critical audit matter because of the need to involve actuarial specialists to evaluate assumptions and valuation models, the extent of audit effort required, and the inherent complexity involved in the selection and application of new accounting policies.

How the Critical Audit Matter Was Addressed in the Audit:

Our audit procedures related to the adoption of ASU 2018-12 included the following:

● We evaluated the appropriateness of the Company's selection and application of accounting policies in connection with the adoption of ASU 2018-12 including but not limited to transition mechanics and modified retrospective application.

● With the assistance of our actuarial specialists, we evaluated the reasonableness of the valuation models and assumptions used to estimate the liability for future policy benefits and amortization of deferred acquisition costs including but not limited to transition mechanics and modified retrospective application of the new accounting policies.

/s/ Crowe LLP

We have served as the Company's auditor since 2023.

Fort Lauderdale, Florida

March 17, 2026

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**US Alliance Corporation**

**Consolidated Balance Sheets**

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| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| **Assets** |  |  |
| Investments: |  |  |
| Available for sale fixed maturity securities (amortized cost: $90,036,854 and $83,785,307, net of allowances for credit losses of $0, as of December 31, 2025 and 2024) | $**86534704** | $79578179 |
| Equity securities, at fair value | **3542412** | 3876085 |
| Limited partnership interests | **1293005** | 428170 |
| Mortgage loans on real estate (net of allowance for credit losses of $99,118 and $55,685 as of December 31, 2025 and 2024, respectively) | **23645037** | 25192749 |
| Other invested assets | **1018640** | 1109606 |
| Policy loans | **41314** | 31745 |
| Real estate, net of depreciation | **1597979** | 1652553 |
| Total investments | **117673091** | 111869087 |
| Cash and cash equivalents | **18036904** | 6903783 |
| Investment income due and accrued | **860697** | 954324 |
| Reinsurance related assets | **1177656** | 788886 |
| Deferred acquisition costs, net | **4739627** | 4402996 |
| Value of business acquired, net | **2241133** | 2333553 |
| Property, equipment and software, net | **119068** | 136353 |
| Goodwill | **277542** | 277542 |
| Federal and state income tax receivable | **35372** | 182349 |
| Deferred tax asset, net of valuation allowance | **3000912** | 2862157 |
| Other assets | **518100** | 459102 |
| **Total assets** | $**148680102** | $131170132 |
| **Liabilities and Shareholders' Equity** |  |  |
| Liabilities: |  |  |
| Policy liabilities |  |  |
| Deposit-type contracts | $**87824261** | $77940378 |
| Policyholder benefit reserves | **44559453** | 36444940 |
| Dividend accumulation | **102050** | 100885 |
| Advance premiums | **271976** | 248749 |
| Total policy liabilities | **132757740** | 114734952 |
| Accounts payable and accrued expenses | **1575654** | 1133521 |
| Federal Home Loan Bank advance | **1250000** | 1250000 |
| Other liabilities | **99354** | 91893 |
| **Total liabilities** | **135682748** | 117210366 |
| Shareholders' Equity: |  |  |
| Common stock, $0.10 par value. Authorized 20,000,000 shares; issued and outstanding 7,788,922 and 7,748,922 shares as of December 31, 2025 and 2024, respectively | **778893** | 774893 |
| Additional paid-in capital | **23002201** | 22966657 |
| Accumulated deficit | **(10739528)** | (9952686) |
| Accumulated other comprehensive (loss) income | **(44212)** | 170902 |
| **Total shareholders' equity** | **12997354** | 13959766 |
| **Total liabilities and shareholders' equity** | $**148680102** | $131170132 |

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See Notes to Consolidated Financial Statements.

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**US Alliance Corporation**

**Consolidated Statements of Comprehensive Income (loss)**

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | 2024 |
| Income: |  |  |
| Premium income | $**17347856** | $15338053 |
| Net investment income | **7308468** | 7597762 |
| Net investment (losses) gains | **(491476)** | 283423 |
| Other income | **408590** | 553035 |
| **Total income** | **24573438** | 23772273 |
| Expenses: |  |  |
| Death claims | **5252801** | 3983405 |
| Policyholder benefits | **7324481** | 6883283 |
| Increase in policyholder reserves | **6705244** | 5973329 |
| Commissions, net of deferrals | **962231** | 947548 |
| Amortization of deferred acquisition costs | **748446** | 945922 |
| Amortization of value of business acquired | **92420** | 92420 |
| Salaries & benefits | **1839528** | 1701745 |
| Other operating expenses | **2753822** | 2624371 |
| **Total expenses** | **25678973** | 23152023 |
| **Net (loss) income before tax** | $**(1105535)** | $620250 |
| **Current federal income tax expense** | **(92832)** | (25646) |
| **Deferred federal income tax benefit (expense)** | **411525** | (54232) |
| **Total federal income tax benefit (expense)** | **318693** | **(79878)** |
| **Net (loss) income** | $**(786842)** | $**540372** |
| **Net (loss) income per common share, basic and diluted** | $**(0.10)** | $**0.07** |
| Unrealized net holding gains (losses) arising during the period, net of tax | **385952** | (213036) |
| Effects of discount rate changes, net of tax | **(538633)** | 1146537 |
| Reclassification adjustment for losses included in net (gain) loss income | **(62433**) | 39232 |
| Other comprehensive (loss) income | **(215114)** | 972733 |
| **Comprehensive (loss) income** | $**(1001956)** | $**1513105** |

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See Notes to Consolidated Financial Statements.

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**US Alliance Corporation**

**Consolidated Statements of Changes in Shareholders' Equity**

**Years Ended December 31, 2025 and 2024**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | Accumulated |  |  |
|  | Number of |  |  | Other |  |  |
|  | Shares of | Common | Additional | Comprehensive | Accumulated |  |
|  | Common Stock | Stock | Paid-in Capital | Loss | Deficit | Total |
| **Balance, December 31, 2023** | **7748922** | $**774893** | $**22964490** | $**(2916372)** | $**(10491934)** | $**10331077** |
| Impact of adoption of long duration targeted improvements |  |  |  | 2114541 | (1124) | 2113417 |
| **Balance, January 1, 2024** | **7748922** | $**774893** | $**22964490** | $**(801831)** | $**(10493058)** | $**12444494** |
| Other comprehensive income |  |  |  | 972733 |  | 972733 |
| Stock based compensation on restricted stock awards |  |  | 2167 |  |  | 2167 |
| Net income |  |  |  |  | 540372 | 540372 |
| **Balance, December 31, 2024** | **7748922** | $**774893** | $**22966657** | $**170902** | $**(9952686)** | $**13959766** |
| Other comprehensive income |  |  |  | (215114) |  | (215114) |
| Stock based compensation on restricted stock awards | 40000 | 4000 | 35544 |  |  | 39544 |
| Net loss |  |  |  |  | (786842) | (786842) |
| **Balance, December 31, 2025** | **7788922** | $**778893** | $**23002201** | $**(44212)** | $**(10739528)** | $**12997354** |

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See Notes to Consolidated Financial Statements.

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**US Alliance Corporation**

**Consolidated Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | 2024 |
| Cash flows from operating activities: |  |  |
| Net (loss) income | $**(786842)** | $540372 |
| Adjustments to reconcile net income to net cash |  |  |
| provided by operating activities: |  |  |
| Depreciation and amortization | **83079** | 79713 |
| Net losses realized on the sale of securities and net credit losses recognized in operations | **964856** | 21010 |
| Unrealized losses on equity securities | **(742754)** | (8414) |
| Change in fair value of embedded derivative | **269374** | (296019) |
| (Accretion) amortization of investment securities, net | **(198245)** | (606487) |
| Deferred acquisition costs capitalized | **(1085078)** | (597421) |
| Deferred acquisition costs amortized | **748447** | 945922 |
| Value of business acquired amortized | **92420** | 92420 |
| Interest credited on deposit type contracts | **2106006** | 1910726 |
| (Increase) decrease in operating assets: |  |  |
| Investment income due and accrued | **93627** | 924296 |
| Reinsurance related assets | **(658144)** | 546407 |
| Deferred tax assets, net of valuation allowance | **(138755)** | 1287382 |
| Other assets | **87979** | 6010 |
| Increase (decrease) in operating liabilities: |  |  |
| Policyowner benefit reserves | **7575880** | 5211077 |
| Dividend accumulation | **1165** | (13957) |
| Advance premiums | **23227** | 97038 |
| Other liabilities | **7461** | (44677) |
| Accounts payable and accrued expenses | **442133** | (919842) |
| **Net cash provided by operating activities** | **8885836** | 9175556 |
| Cash flows from investing activities: |  |  |
| Purchase of fixed income investments | **(23830954)** | (22557297) |
| Purchase of equity investments | **(1173642)** | (499182) |
| Purchase of mortgage investments | **(7277380)** | (15792479) |
| Purchase of other invested assets | **(106447)** | (230914) |
| Proceeds from fixed income sales and repayments | **19838674** | 17050777 |
| Proceeds from equity sales | **1505945** | 1383796 |
| Proceeds from mortgage repayments | **5494457** | 10078024 |
| Proceeds from other invested assets | **-** | 1144741 |
| Increase in policy loans | **(9569)** | (5613) |
| Purchase of property, equipment and software | **(11220)** | (43695) |
| **Net cash used in investing activities** | **(5570136)** | (9471842) |
| Cash flows from financing activities: |  |  |
| Receipts on deposit-type contracts | **23169682** | 5984026 |
| Withdrawals on deposit-type contracts | **(15391805)** | (8018262) |
| Net proceeds from FHLB advance | **-** | 250000 |
| Restricted stock awards | **39544** | 2167 |
| **Net cash used in financing activities** | **7817421** | (1782069) |
| **Net increase (decrease) in cash and cash equivalents** | **11133121** | (2078355) |
| Cash and cash equivalents: |  |  |
| Beginning | **6903783** | 8982138 |
| Ending | $**18036904** | $6903783 |

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See Notes to Consolidated Financial Statements.

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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| | |
|:---|:---|
| **Note 1.** | **Description of Business and Significant Accounting Policies** |

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<u>Description of business</u>: US Alliance Corporation ("USAC") was formed as a Kansas corporation on April 24, 2009 to raise capital to form a new Kansas-based life insurance company. Our offices are located at 1303 SW First American Place, Suite 200, Topeka, Kansas 66604. Our telephone number is 785-228-0200 and our website address is <u>www.usalliancecorporation.com</u>.

USAC has four wholly-owned operating subsidiaries. US Alliance Life and Security Company ("USALSC") was formed June 9, 2011, to serve as our life insurance company. US Alliance Marketing Corporation ("USAMC") was formed April 23, 2012, to serve as a marketing resource. US Alliance Investment Corporation ("USAIC") was formed April 23, 2012 to serve as investment manager for USAC. Dakota Capital Life Insurance Company ("DCLIC"), was acquired on August 1, 2017 when USAC merged with Northern Plains Capital Corporation ("NPCC") and was merged into USALSC on December 31, 2023. US Alliance Life and Security Company - Montana (USALSC-Montana), was acquired December 14, 2018. USALSC-Montana is a wholly-owned subsidiary of USALSC. Unless the context indicates otherwise, references herein to the "Company" refer to USAC and its consolidated subsidiaries.

The Company terminated its initial public offering on February 24, 2013. During the balance of 2013, the Company achieved approval of an array of life insurance and annuity products, began development of various distribution channels and commenced insurance operations and product sales. The Company sold its first insurance product on May 1, 2013. The Company continued to expand its product offerings and distribution channels throughout 2014 and 2015. On February 24, 2015, the Company commenced a warrant exercise offering set to expire on February 24, 2016. On February 24, 2016, the Company extended the offering until February 24, 2017 and made additional shares available for purchase. All outstanding warrants expired on April 1, 2016. The Company further extended this offering to February 24, 2024. During the 4th quarter of 2017, the Company began a private placement offering to accredited investors in the state of North Dakota. Both offerings were terminated in the second quarter of 2024.

USALSC received a Certificate of Authority from the Kansas Insurance Department ("KID") effective January 2, 2012, and sold its first insurance product on May 1, 2013. In 2023, USALSC re-domesticated to North Dakota with approval of the North Dakota Insurance Department ("NDID").

USALSC seeks opportunities to develop and market additional products.

The Company's business model also anticipates the acquisition by USAC and/or USALSC of other insurance and insurance related companies, including third-party administrators, marketing organizations, and rights to other blocks of insurance business through reinsurance or other transactions.

<u>Basis of presentation</u>: The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted ("GAAP") in the United States of America.

<u>Principles of consolidation</u>: The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated from the consolidated financial statements.

<u>Area of operation:</u> US Alliance Life and Security Company is authorized to operate in the states of Kansas, North Dakota, Missouri, Nebraska, Oklahoma, Wyoming, South Dakota, Montana, Kentucky, Utah, Alabama, Ohio, Mississippi, New Mexico, Texas, Arizona, Nevada, and Idaho. USALSC-Montana is authorized to operate in the state of Montana.

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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| | |
|:---|:---|
| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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<u>Investments</u>: Investments in available-for-sale securities are carried in the consolidated financial statements at fair value. Net unrealized holding gains (losses), net of applicable income taxes, on fixed maturity securities are included in accumulated other comprehensive income. Bond premiums and discounts are amortized using the scientific-yield method over the term of the bonds. Net unrealized holding gains (losses) on equity securities are included as a component of net investment gains (losses).

Realized gains and losses on securities sold during the year are determined using the specific identification method and included in investment income as a component of net investment gains (losses). Investment income is recognized as earned.

For available for sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis. If either of the criteria is met, the security's amortized cost basis is written down to fair value through income. For debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a ratings agency, and adverse conditions specifically related to the security. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (loss).

<u>Mortgage loans on real estate:</u> ****Mortgage loans on real estate are carried at unpaid principal balances, net of any unamortized premium or discount and valuation allowances. Interest income is accrued on the principal amount of the mortgage loans based on its contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. The Company accrues interest on loans until probable the Company will not receive interest or the loan is 90 days past due. Interest income, amortization of premiums, accretion of discounts and prepayment fees are reported in investment income, net of related expenses in the consolidated statements of comprehensive income.

Any changes in the loan valuation allowances are reported in net investment losses. The Company establishes a valuation allowance to provide for the risk of credit losses inherent in our mortgage loan portfolios. The valuation allowance is maintained at a level believed adequate by management to absorb estimated expected credit losses. The valuation allowances for each of our mortgage loan portfolios are estimated by deriving probability of default and recovery rate assumptions based on the characteristics of the loans in each portfolio, historical economic data and loss information, and current and forecasted economic conditions. Key loan characteristics impacting the estimate for our commercial mortgage loan portfolio include the current state of the borrower's credit quality, which considers factors such as loan-to-value ("LTV") ratios, loan performance, underlying collateral type, delinquency status, time to maturity, and original credit scores.

Our mortgage loans may be subject to loan modifications. Loan modifications may be granted to borrowers experiencing financial difficulty and could include principal forgiveness, interest rate reduction, an other-than-significant delay or a term extension. The Company considers the following factors in determining whether or not a borrower is experiencing financial difficulty: borrower is in default; borrower has declared bankruptcy; there is growing concern about the borrower's ability to continue as a going concern; borrower has insufficient cash flows to service debt; borrower's inability to obtain funds from other sources; and there is a breach of financial covenants by the borrower. A loan modification typically does not result in a change in valuation allowance as it is already incorporated into the allowance methodology. However, if the Company grants a borrower experiencing financial difficulty principal forgiveness, the amount of principal forgiven would be written off, which would reduce the amortized cost of the loan and result in an adjustment to the valuation allowance.

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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| | |
|:---|:---|
| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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<u>Other</u> <u>invested assets:</u> Other invested assets include collateral loans and private credit investments. The collateral loans and private credit investments are carried at fair value. The inputs used to measure these assets are classified as Level 3 within the fair value hierarchy.

<u>Embedded derivatives:</u> The Company has entered into coinsurance funds withheld arrangement which contains an embedded derivative. Under ASC 815, the Company assesses whether the embedded derivative is clearly and closely related to the host contract. The Company bifurcates embedded derivatives from the host instrument for measurement purposes when the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and a separate instrument with the same terms would qualify as a derivative instrument. The counterparty to the coinsurance arrangement is also the investment manager and manages foreign currency risk within the coinsured portfolio using derivative instruments. In accordance with the coinsurance agreement, the counterparty allocates a proportion of the derivative activity it manages to the Company, which is settled quarterly as part of the reinsurance settlement.

<u>Policy loans:</u> Policy loans are stated at aggregate unpaid principal balances.

<u>Investment real estate:</u> Real estate is stated at cost, less allowances for depreciation and, as appropriate, provisions for possible losses. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<u>Cash and cash equivalents</u>: For purposes of the statement of cash flows, the Company considers demand deposits and highly liquid investments with original maturities of three months or less when purchased to be cash and cash equivalents. The Company maintains its cash balances in one financial institution located in Topeka, Kansas. The FDIC insures aggregate balances, including interest-bearing and noninterest-bearing accounts, of $250,000 per depositor per insured institution. The Company's financial institution is a member of a network that participates in the Insured Cash Sweep (ICS) program. By participating in ICS, the Company's deposits in excess of the insured limit are apportioned and placed in demand deposit accounts at other financial institutions in amounts under the insured limit. As a result, the Company can access insurance coverage from multiple financial institutions while working directly with one. The Company had no amounts uninsured as of December 31, 2025. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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| | |
|:---|:---|
| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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<u>Reinsurance</u>: In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on risks by purchasing reinsurance. The amounts reported in the consolidated balance sheets as reinsurance recoverable include amounts billed to reinsurers on losses paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities that have not yet been paid. Reinsurance recoverable on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Insurance liabilities are reported gross of reinsurance recoverable. Management believes the recoverables are appropriately established. Reinsurance premiums are generally reflected in income in a manner consistent with the recognition of premiums on the reinsured contracts. Reinsurance does not extinguish the Company's primary liability under the policies written. Estimated losses on reinsurance recoverable balances are calculated by quantitative analysis using a rating-based method to estimate expected credit losses for reinsurance recoverable. The analysis is based on industry historical loss experience and forecasted environmental factors management believes to be relevant, which primarily include probability of default, loss given default and exposure at default. There were no allowances as of December 31, 2025 and 2024.

<u>Deferred acquisition costs</u>: The Company capitalizes and amortizes over the life of the premiums produced incremental direct costs that result directly from and are essential to the contract acquisition transaction and would not have been incurred by the Company had the contract acquisition not occurred. An entity may defer incremental direct costs of contract acquisition that are incurred in transactions with independent third parties or employees as well as the portion of employee compensation and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts. Additionally, an entity may capitalize as a deferred acquisition cost only those advertising costs meeting the capitalization criteria for direct-response advertising. Our insurance contracts are grouped by product type and contract issue year into cohorts consistent with the grouping used to estimate the related contract liabilities. DAC is amortized on a constant level basis over the life of the policy. For all products, in-force volume metrics are used as the constant level basis. The lapse and mortality assumptions used to amortize DAC are consistent with the assumptions used to estimate the liability for future policy benefits. The underlying assumptions used to determine DAC amortization are updated concurrently with any related assumption changes for the liability for future policy benefits and changes in estimates are recognized prospectively over the remaining expected term of the related contracts.an An experience adjustment is applied if actual terminations are greater than expected.

For certain products, policyholders can elect to modify product benefits, features, rights, or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacement transactions. Internal replacement transactions wherein the modification does not substantially change the policy are accounted for as continuations of the replaced contracts. The original policy continues to be reflected as an in force policy within its original cohort. The policy's expected life then impacts the amortization of remaining unamortized deferred acquisition costs within its cohort. The costs of replacing the policy are accounted for as policy maintenance costs and expensed as incurred. Internal replacement transactions that result in a policy that is substantially changed are accounted for as an extinguishment of the original policy and the issuance of a new policy. The original policy that was replaced is terminated from its original cohort and this termination is reflected in the amortization rate of remaining unamortized deferred acquisition costs for the cohort. The costs of acquiring the new policy are capitalized and amortized as part of a new cohort.

<u>Value of business acquired</u>: Value of business acquired (VOBA) represents the estimated value assigned to purchased companies or insurance in- force of the assumed policy obligations at the date of acquisition of a block of policies. At least annually, a review is performed of the models and the assumptions used to develop expected future profits, based upon management's current view of future events. VOBA is reviewed on an ongoing basis to determine that the unamortized portion does not exceed the expected recoverable amounts. Management's view primarily reflects our experience but can also reflect emerging trends within the industry. Short-term deviations in experience affect the amortization of VOBA in the period, but do not necessarily indicate that a change to the long-term assumptions of future experience is warranted. If it is determined that it is appropriate to change the assumptions related to future experience, then an unlocking adjustment is recognized for the block of business being evaluated. Certain assumptions, such as interest spreads and surrender rates, may be interrelated. As such, unlocking adjustments often reflect revisions to multiple assumptions. The VOBA balance is immediately impacted by any assumption changes, with the change reflected through the statements of comprehensive income as an unlocking adjustment in the amount of VOBA amortized. These adjustments can be positive or negative with adjustments reducing amortization limited to amounts previously deferred plus interest accrued through the date of the adjustment. VOBA is amortized on a straight-line method over 30 years.

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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| | |
|:---|:---|
| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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In addition, we may consider refinements in estimates due to improved capabilities resulting from administrative or actuarial system upgrades. We consider such enhancements to determine whether and to what extent they are associated with prior periods or simply improvements in the projection of future expected gross profits due to improved functionality. To the extent they represent such improvements, these items are applied to the appropriate financial statement line items in a manner similar to unlocking adjustments.

<u>Property, equipment and software</u>: Property, equipment and software are stated at cost less accumulated depreciation. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to income currently. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included in income.

Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Computer equipment is depreciated over no longer than a 5-year period. Furniture and equipment are depreciated over no longer than a 10-year period. Major categories of depreciable assets and the respective book values as of December 31, 2025 and 2024 are represented below.

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| | | |
|:---|:---|:---|
|  | **Year Ended** | Year Ended |
|  | **December 31,** | December 31, |
|  | **2025** | 2024 |
| Computer | $**70000** | $59404 |
| Furniture and equipment | **156604** | 155979 |
| Accumulated depreciation | **(107536)** | (79030) |
| Balance at end of period | $**119068** | $136353 |

---

<u>Goodwill</u>: Goodwill represents the excess of the amounts paid to acquire subsidiaries and other businesses over the fair value of their net assets at the date of acquisition. Goodwill is tested for impairment at least annually in the fourth quarter or more frequently if events or circumstances change that would indicate that a triggering event has occurred. We assess the recoverability of indefinite-lived intangible assets at least annually or whenever events or circumstances suggest that the carrying value of an identifiable indefinite-lived intangible asset may exceed the sum of the future discounted cash flows expected to result from its use and eventual disposition. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset.

<u>Income taxes</u>: The Company is subject to U.S. federal and state taxes. The provision for income taxes is based on income as reported in the consolidated financial statements. The income tax provision is calculated using the asset and liability method. Deferred income taxes are recorded based on the differences between the financial statement and tax basis of assets and liabilities at the enacted rates expected to apply to taxable income in the years in which the differences are expected to reverse. A valuation allowance is established for the amount of any deferred tax asset that exceeds the amount of the estimated future taxable income needed to utilize the future tax benefits.

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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|:---|:---|
| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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All of the Company's tax returns are subject to U.S. federal, state and local income tax examinations by tax authorities. The Company had no known uncertain tax benefits included in its provision for income taxes as of December 31, 2025 and 2024. The Company's policy is to recognize interest and penalties (if applicable) as an element of the provision for income taxes in the consolidated statements of income.

The tax years which remain subject to examination by taxing authorities are the years ended December 31, 2021 through 2024.

<u>Pre-paid expenses:</u> The Company recognizes pre-paid expenses as the expenses are incurred. Pre-paid expenses consist of systems consulting hours, insurance, and pre-paid benefit expense. Systems consulting hours are charged as they are incurred on projects. Insurance expenses are charged straight line over the life of the contract. Benefit expenses are charged as they are incurred.

<u>Deposit-type contracts</u>: Deposit-type contracts consist of amounts on deposit associated with deferred annuity contracts and premium deposit funds. The deferred annuity contracts credit interest based upon a fixed interest rate set by the Company. The Company has the ability to change this rate annually subject to minimums established by law or administrative regulation.

Liabilities for deferred annuity deposit-type contracts are included without reduction for potential surrender charges. This liability is equal to the accumulated account deposits, plus interest credited, and less policyholder withdrawals.

<u>Policyholder benefits</u>: Liabilities for future policy benefits represent the cost of claims that we estimate we will eventually pay to our policyholders which includes policy liabilities for claims not yet incurred and for claims that have been incurred or are estimated to have been incurred but not yet reported to us. The liability for future policy benefits is calculated based on the present value of the estimated future policy benefits less the present value of estimated future net premiums collected. Net premiums represent the portion of the gross premium required to provide for all benefits and expenses, excluding acquisition costs or any costs that are required to be charged to expense as incurred. In calculating the liability for future policy benefits, our long-duration contracts are grouped into cohorts by product type, contract issue year for direct business, and assumption year for assumed business.

<u>Policy claims</u>: Policy claims are based on reported claims plus estimated incurred but not reported claims developed from trends of historical data applied to current exposure. The Company's current estimate of incurred but not reported claims as of December 31, 2025 and 2024 is $313,781 and $187,527 and is included as a part of policyholder benefit reserves.

<u>Revenue recognition and related expenses</u>: Revenues on traditional life insurance products consist of direct premiums reported as earned when due. Premium income includes reinsurance assumed and is reduced by premiums ceded.

Amounts received as payment for annuity contracts without life contingencies are recognized as deposits to policyholder account balances and included in future insurance policy benefits. Revenues from these contracts are comprised of fees earned for contract-holder services, which are recognized over the period of the contracts, and included in revenue. Deposits are shown as a financing activity in the Consolidated Statements of Cash Flows.

Liabilities for future policy benefits are provided and acquisition costs are amortized by associating benefits and expenses with earned premiums to recognize related profits over the life of the contracts.

<u>Leases</u>: The Company, as lessor, has entered into an operating lease agreement for office space. The Company recognizes lease income for operating leases on a straight-line basis over the lease term. At contract inception, the Company defers any initial direct costs and amortizes the costs over the life of the lease on the same basis as lease income.

<u>Restricted stock awards</u>: Restricted stock award shares are measured at fair market value on the date of grant and stock-based compensation expense is recognized on a straight-line basis over the vesting period with a corresponding offset credited to additional paid-in-capital.

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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|:---|:---|
| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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<u>Common stock and earnings per share:</u> The par value for common stock is $0.10 per share with 20,000,000 shares authorized. As of December 31, 2025 and 2024 the company had 7,788,922 and 7,748,922 common shares issued and outstanding, respectively.

Earnings per share attributable to the Company's common stockholders were computed based on the net income and the weighted average number of shares outstanding during each year. The weighted average number of shares outstanding during the years ended December 31, 2025 and 2024 were 7,750,589 and 7,748,922 shares, respectively. Potential common shares are excluded from the computation when their effect is anti-dilutive. Basic and diluted net gain per common share is the same for the years ended December 31, 2025 and 2024.

<u>Comprehensive Income</u>: Comprehensive income is comprised of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses from marketable fixed maturity securities classified as available for sale, net of applicable taxes and changes in policyholder benefit reserves due to discount rates, net of applicable taxes.

<u>Risk and uncertainties:</u> Certain risks and uncertainties are inherent in the Company's day-to-day operations and in the process of preparing its consolidated financial statements. The more significant of those risks and uncertainties, as well as the Company's method for mitigating the risks, are presented below and throughout the notes to the consolidated financial statements.

<u>Use of Estimates:</u> The preparation of consolidated financial statements in conformity with US GAAP, generally accepted accounting principles in the United States, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

<u>Regulatory Factors:</u> The insurance laws North Dakota, Montana, and our other authorized states give insurance regulators broad regulatory authority, including powers to (i) grant and revoke licenses to transact business; (ii) regulate and supervise trade practices and market conduct, (iii) establish guaranty associations; (iv) license agents; (v) approve policy forms; (vi) approve premium rates for some lines of business; (vii) establish reserve requirements; (viii) prescribe the form and content of required financial statements and reports; (ix) determine the reasonableness and adequacy of statutory capital and surplus; and (x) regulate the type and amount of permitted investments.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Reform Act") reshapes financial regulations in the United States by creating new regulators, regulating new markets and firms, and providing new enforcement powers to regulators. Virtually all major areas of the Reform Act continue to be subject to regulatory interpretation and implementation rules requiring rulemaking that may take several years to complete. The ultimate outcome of the regulatory rulemaking proceedings cannot be predicted with certainty. The regulations promulgated could have a material impact on consolidated financial results or financial condition.

<u>Reinsurance:</u> In order to manage the risk of financial exposure to adverse underwriting results, the Company reinsures a portion of its individual and group life risks with other insurance companies. The Company retains $35,000 on its Whole Life products and $25,000 on its term life products. The Company also reinsures 100% of the risk on its individual accidental death benefit rider. The Company retains 25% of the risk for each covered life on its group life product to a maximum of $100,000 on any individual person. The Company retains 25% of the risk for each covered life on its group accidental death and dismemberment product to a maximum of $25,000 on any individual person. The Company also has catastrophic reinsurance coverage to protect against three or more group life deaths resulting from a single event. The Company also reinsures 90% of the risk on its group disability products. The Company reinsures 66% of the risk on its critical illness product. The Company cedes 90% of the net amount of risk on its SPWL product. Optimum Re Insurance Company (a subsidiary of Optimum Group), General Reinsurance Corporation (a subsidiary of Berkshire Hathaway), Reliance Standard Life Insurance Company (a subsidiary of Tokio Marine Holdings), Hartford Life and Accident Company, and Unified Life Insurance Company provide reinsurance for USALSC. The Company evaluates the financial condition of its reinsurers to minimize its exposure to losses from reinsurer insolvencies. Management believes that any liabilities arising from this contingency would not be material to the Company's financial position.

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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|:---|:---|
| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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<u>Interest Rate Risk:</u> Interest rate fluctuations could impair an insurance company's ability to pay policyholder benefits with operating and investment cash flows, cash on hand and other cash sources. Annuity products expose the risk that changes in interest rates will reduce any spread, or the difference between the amounts that the insurance company is required to pay under the contracts and the amounts the insurance subsidiary is able to earn on its investments intended to support its obligations under the contracts. Spread is a key component of revenues.

To the extent that interest rates credited are less than those generally available in the marketplace, policyholder lapses, policy loans and surrenders, and withdrawals of life insurance policies and annuity contracts may increase as contract holders seek to purchase products with perceived higher returns. This process may result in cash outflows requiring that an insurance subsidiary sell investments at a time when the prices of those investments are adversely affected by the increase in market interest rates, which may result in realized investment losses.

Increases in market interest rates may also negatively affect profitability in periods of increasing interest rates. The ability to replace invested assets with higher yielding assets needed to fund the higher crediting rates that may be necessary to keep interest sensitive products competitive. The Company therefore may have to accept a lower spread and thus lower profitability or face a decline in sales and greater loss of existing contracts.

Conversely, in a period of prolonged low interest rates it is difficult to invest assets and earn the rate of return necessary to support insurance products.

Policy lapses in excess of those actuarially anticipated would have a negative impact on our financial performance.

Profitability could be reduced if lapse and surrender rates exceed the assumptions upon which the insurance policies were priced. Policy sales costs are deferred and recognized over the life of a policy. Excess policy lapses, however, cause the immediate expensing or amortizing of deferred policy sales costs.

<u>Investment Risk:</u> Our invested assets are subject to customary risks of defaults and changes in market values. Factors that may affect the overall default rate on, and market value of, the invested assets include interest rate levels, financial market performance, and general economic conditions.

<u>Assumptions Risk:</u> In the life insurance business, assumptions as to expected mortality, lapse rates and other factors in developing the pricing and other terms of life insurance products are made. These assumptions are based on industry experience and are reviewed and revised regularly by an outside actuary to reflect actual experience on a current basis. However, variation of actual experience from that assumed in developing such terms may affect a product's profitability or sales volume and in turn adversely impact our revenues.

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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|:---|:---|
| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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<u>Reclassifications</u>: Certain reclassifications of a minor nature, independent of long duration targeted improvements, have been made to prior-year balances to conform to current-year presentation with no net impact to net (loss) income or total shareholders' equity.

<u>New accounting standards</u>:

*Improvements to Income Tax Disclosures*

In December 2023, the FASB issued Accounting Standards Update 2023-09 "*Income Taxes (Topic 740): Improvements to Income Tax Disclosures*" ("ASU 2023-09"). ASU 2023-09 is intended to improve the effectiveness of income tax disclosures by requiring, among other things, the disclosure on an annual basis of: (i) specific categories in the rate reconciliation; and (ii) additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires disclosure (on an annual basis) of the following information about income taxes paid: (i) the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes; and (ii) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5 percent of total income taxes paid (net of refunds received). ASU 2023-09 is effective for annual periods beginning January 1, 2025, to be applied prospectively with an option for retrospective application (with early adoption permitted). The adoption of ASU 2023-09 will modify our disclosures but did not have an impact on our financial position or results of operations.

*Improvements to Reportable Segment Disclosures*

In November 2023, the FASB issued ASU 2023-07 ("*Improvements to Reportable Segment Disclosures*") which requires disclosures of significant expenses by segment and interim disclosure of items that were previously required on an annual basis. ASU 2023-07 is to be applied on a retrospective basis and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The adoption of this ASU modified our disclosures but did not have an impact on our financial position or results of operations. Refer to in Note 10 of the consolidated financial statements for the disclosure.

*ASU 2024-03, Disaggregation of Income Statement Expenses: Income Statement - Reporting Comprehensive Income* – *Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and Related Amendment*

The amendments in this update require the disclosure of disaggregation of certain income statement expense line items. Specifically, the guidance requires the disclosure of additional information related to certain expenses, including employee compensation, depreciation and amortization, and certain other expenses included in each income statement line item. The amendments also require the disclosure of both the total amount of selling expenses and a definition of selling expenses.

We will adopt this update effective for the annual period beginning January 1, 2027, and interim periods beginning January 1, 2028. The adoption of this update is permitted on a prospective basis or a retrospective basis. The adoption of this update will expand our disclosures but will not have an impact on our financial position or results of operations.

*ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software: Intangibles - Goodwill and Other-Internal-Use Software (Subtopic 350-40)*

The amendments in this update modernize the recognition framework for the capitalization of internal-use software and remove all references to software development project stages. The guidance requires software development costs to be capitalized when both of the following criteria are met: (i) management has authorized and committed to funding the project, and (ii) it is probable that the project will be completed and the software will be used to perform its intended function. Additionally, the update aligns disclosure requirements for capitalized software costs with those under ASC 360-10, "*Property, Plant, and Equipment*."

The amendments in this update are effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual periods. Early adoption of this update is permitted as of the beginning of an annual reporting period. Adoption of this update is permitted on a prospective, retrospective, or a modified retrospective basis. We are currently evaluating the impact the adoption of this update will have on our financial position, results of operations, and disclosures*.*

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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*Targeted Improvements to the Accounting for Long-Duration Contracts*

In August 2018, the FASB issued ASU 2018-12 "*Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts*". This update is aimed at improving the Codification related to long-duration contracts, which will improve the timeliness of recognizing changes in the liability for future policy benefits, simplify accounting for certain market-based options, simplify the amortization of deferred acquisition costs, and improve the effectiveness of required disclosures. These updates were originally required to be applied retrospectively to the earliest period presented in the financial statements for periods beginning after December 15, 2020. The FASB subsequently delayed the effective date of ASU 2018-12 to periods beginning after December 15, 2024 for smaller reporting companies, with early adoption permitted.

In December 2022, the FASB issued amendment ASU 2022-05 "*Targeted Improvements for Long-Duration Contracts*" collectively, "LDTI" that originally required an insurance entity to apply a retrospective transition method as of the beginning of the earliest period presented or the beginning of the prior fiscal year if early adoption was elected. This updated guidance reduces implementation costs and complexity associated with the adoption of targeted improvements in accounting for long-duration contracts that have been derecognized in accordance with ASU 2018-12 before the delayed effective date. Without the amendments in this ASU, an insurance entity would be required to reclassify a portion of gains or losses previously recognized in the sale or disposal of insurance contracts or legal entities because of the adoption of a new accounting standard.

We adopted this guidance effective January 1, 2025, using the modified retrospective approach with changes applied as of January 1, 2024, also referred to as the transition date. The following tables summarize the impacts of the adoption of LDTI on the liability for future policy benefits, deferred acquisition costs, and stockholders' equity as of the transition date as well as impacted historical condensed consolidated financial statement line items for historical comparison.

We adopted this guidance effective January 1, 2025, using the modified retrospective approach with changes applied as of January 1, 2024, also referred to as the transition date. The following tables summarize the impacts of the adoption of LDTI on the liability for future policy benefits, deferred acquisition costs, and stockholders' equity as of the transition date as well as impacted historical condensed consolidated financial statement line items for historical comparison.

***Impact of the Adoption of LDTI as of the Transition Date:***

***Stockholders' Equity***

The following table summarizes the changes in stockholders' equity due to the adoption of LDTI and the resulting adjusted balances at January 1, 2024:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Number of**  |  |  |  | **Accumulated Other**  |  |
|  | **Shares of** | **Common**  | **Additional** | **Accumulated** | **Comprehensive** | **Total Shareholders'** |
|  | **Common Stock** | **Stock** | **Paid-in Capital** | **Deficit** | **Loss** | **Equity** |
| Balance at December 31, 2023 | $7748922 | $774893 | $22964490 | $(10491934) | $(2916372) | $10331077 |
| Impact of Adoption of ASU 2018-12, net of income taxes |  |  |  | (1124) | 2114541 | 2113417 |
| **Balance at January 1, 2024** | $**7748922** | $**774893** | $**22964490** | $**(10493058)** | $**(801831)** | $**12444494** |

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The increase in accumulated other comprehensive income in our recast of 2024 is driven primarily by the difference between the discount rate applied under the historical accounting method, which was based on an expected investment yield from our current investment strategy, and the single-A discount rate that is required as a part of the adoption of LDTI. The net favorable impact to net income and accumulated deficit is primarily due to slower amortization of deferred acquisition costs on single pay products.

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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|:---|:---|
| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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The following table presents the transition impacts as of January 1, 2024, to the Company's accumulated other comprehensive income (loss) and accumulated deficit as a result of the adoption of LDTI by product type, using the modified retrospective transition method:

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| | | |
|:---|:---|:---|
|  |  | **Impact to** |
|  |  | **Accumulated Other**  |
|  | **Impact to** | **Comprehensive** |
|  | **Accumulated Deficit** | **Income (Loss)** |
| Long-Duration - Fixed Annuity | $- | $- |
| Long-Duration - Universal Life |  |  |
| Long-Duration - Individual Life | (1424) | 2677633 |
| Long-Duration - Critical Illness | 1 | (999) |
| Total Impact of Adoption of ASU 2018-12, before Income Taxes | (1423) | 2676634 |
| Less: income taxes | 299 | (562093) |
| Total Impact of Adoption of ASU 2018-12, net of Income Taxes | $(1124) | $2114541 |

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***Liability for Future Policy Benefits***

The following tables summarize the changes in the liability for future policy benefits by product type due to the adoption of LDTI and the resulting adjusted balance as of January 1, 2024:

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| | | | |
|:---|:---|:---|:---|
|  | **Individual Life** | **Critical Illness** | **Total** |
| **Balance at December 31, 2023** | $1702286 | $11632 | $1713918 |
| Impact to retained earnings (accumulated deficit) from capping of net premium ratio at transition date |  |  |  |
| Impact of deferred profit liability | 1 | (1) |  |
| Beginning balance at original discount rate | 1702287 | 11631 | 1713918 |
| Impact of flooring | 18217 | 78 | 18295 |
| Effect of change in discount rate assumptions | (173418) | (822) | (174240) |
| **Balance at January 1, 2024** | $1547086 | $10887 | $1557973 |
| **Present Value of Expected Future Policy Benefits** |  |  |  |
|  | **Individual Life** | **Critical Illness** | **Total** |
| **Balance at December 31, 2023** | $35351428 | $12501 | $35363929 |
| Effect of change in discount rate assumptions | (2878888) | (1286) | (2880174) |
| **Balance at January 1, 2024** | $32472540 | $11215 | $32483755 |
| **Net liability for future policy benefits** | $30925454 | $328 | $30925782 |
| Less: Reinsurance recoverable | 69160 | (1015) | 68145 |
| **Net liability for future policy benefits, after reinsurance recoverable** | $30856294 | $1343 | $30857637 |

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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***Impact of the Adoption of LDTI on Historical Financial Statements:***

The following tables present the effect of the adoption of LDTI on our historical consolidated financial statements:

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Historical Accounting** |  |  |
| ***Balance Sheet*** | **Method** | **As Adjusted** | **Effect of Change** |
| **Assets** |  |  |  |
| Reinsurance related assets | $522142 | $788886 | $266744 |
| Deferred acquisition costs, net | 3908636 | 4402995 | 494359 |
| Deferred tax asset, net of valuation allowance | 3747111 | 2862157 | (884954) |
| **Total** | $8177889 | $8054038 | $(123851) |
| **Liabilities** |  |  |  |
| Policyholder benefit reserves | $39898138 | $36444940 | $(3453198) |
| Deposit-type contracts | 77940378 | 77940378 | (0) |
| **Total** | $117838516 | $114385318 | $(3453198) |
| **Shareholders' Equity** |  |  |  |
| Accumulated deficit | $(10020956) | $(9952686) | $68270 |
| Accumulated other comprehensive (loss) income | (3090176) | 170902 | 3261078 |
| **Total** | $(13111132) | $(9781784) | $3329348 |

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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| **Note 1.** | **Description of Business and Significant Accounting Policies (Continued)** |

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| | | | |
|:---|:---|:---|:---|
|  | **Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2024** | **Twelve Months Ended December 31, 2024** |
|  | **Historical Accounting** |  |  |
|  | **Method** | **As Adjusted** | **Effect of Change** |
| ***Statement of Income*** |  |  |  |
| Premium income | $15338053 | $15338053 | $- |
| Policy benefits | 6883283 | 6883283 |  |
| Increase in policyholder reserves | 5566210 | 5973329 | 407119 |
| Amortization of deferred acquisition costs | 1440520 | 945922 | (494598) |
| Deferred income tax benefit (expense) | (36147) | (54232) | (18085) |
| Net income (loss) | 470978 | 540372 | 69394 |
| Net income per common share, basic and diluted | $0.06 | $0.07 | $0.01 |
| ***Statement of Comprehensive Income (Loss)*** |  |  |  |
| Net Income | $470978 | $540372 | $69394 |
| Change in the effect of discount rate assumptions on the liability for future policy benefits, net of reinsurance, net of tax |  | 1146537 | 1146537 |
| Comprehensive income (loss) | $297174 | $1513105 | $1215931 |
| ***Statement of Shareholders' Equity*** |  |  |  |
| Accumulated other comprehensive income (loss) balance at beginning of year | $(2916372) | $(801831) | $2114541 |
| Other comprehensive income (loss) | (173804) | 1146537 | 1320341 |
| Shareholders' equity balance at beginning of year | $10630418 | $12444494 | $1814076 |
| Net income (loss) | 470978 | 540372 | 69394 |
| ***Statement of Cash Flows*** |  |  |  |
| Cash flows from operating activities | $9175556 | $9175556 | $- |
| Net income | 470978 | 540372 | 69394 |
| Deferred acquisition costs amortized | 1440520 | 946160 | (494360) |
| Deferred income taxes | 141796 | 1287382 | 1145586 |
| Change in reinsurance related assets | 813151 | 1084905 | 271754 |
| Change in policy owner benefit reserves | 5664953 | 5211077 | (453876) |

---

------

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 2.** | **Investments** |

---

**Fixed Maturity**

The amortized cost and fair value of available for sale investments as of December 31, 2025 and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31 2025** | **December 31 2025** | **December 31 2025** | **December 31 2025** |
|  | **Cost or** | **Gross** | **Gross** |  |
|  | **Amortized** | **Unrealized** | **Unrealized** |  |
|  | **Cost** | **Gains** | **Losses** | **Fair Value** |
| **Available for sale:** |  |  |  |  |
| **Fixed maturities:** |  |  |  |  |
| **US Treasury securities** | $**810255** | $**1562** | $**(78925)** | $**732892** |
| **Corporate bonds** | **30702897** | **218634** | **(2622315)** | **28299216** |
| **Municipal bonds** | **6341809** | **1735** | **(536408)** | **5807136** |
| **Redeemable preferred stock** | **2142141** | **3788** | **(147491)** | **1998438** |
| **Term loans** | **11187284** | **10032** | **(191512)** | **11005804** |
| **Mortgage backed and asset backed securities** | **38852468** | **638213** | **(799463)** | **38691218** |
| **Total available for sale** | $**90036854** | $**873964** | $**(4376114)** | $**86534704** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Cost or** | **Gross** | **Gross** |  |
|  | **Amortized** | **Unrealized** | **Unrealized** |  |
|  | **Cost** | **Gains** | **Losses** | **Fair Value** |
| **Available for sale:** |  |  |  |  |
| **Fixed maturities:** |  |  |  |  |
| **US Treasury securities** | $**799543** | $**-** | $**(88166)** | $**711377** |
| **Corporate bonds** | **24370244** | **111868** | **(2990292)** | **21491820** |
| **Municipal bonds** | **5416888** | **-** | **(675739)** | **4741149** |
| **Redeemable preferred stock** | **2562893** | **36** | **(151695)** | **2411234** |
| **Term loans** | **12971452** | **28936** | **(212084)** | **12788304** |
| **Mortgage backed and asset backed securities** | **37664287** | **715541** | **(945533)** | **37434295** |
| **Total available for sale** | $**83785307** | $**856381** | $**(5063509)** | $**79578179** |

---

The amortized cost and fair value of debt securities as of December 31, 2025 and 2024, by contractual maturity, is as follows. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2024 | As of December 31, 2024 |
|  | Amortized Cost | Fair Value | Amortized Cost | Fair Value |
| Amounts maturing in: |  |  |  |  |
| One year or less | $1074089 | $1072360 | $2329128 | $2329128 |
| After one year through five years | 23367252 | 23263307 | 18590198 | 18410081 |
| After five years through ten years | 4878273 | 4797585 | 2032061 | 1967540 |
| More than 10 years | 19722631 | 16711796 | 20606740 | 17025901 |
| Redeemable preferred stocks | 2142141 | 1998438 | 2562893 | 2411234 |
| Mortgage backed and asset backed securities | 38852468 | 38691218 | 37664287 | 37434295 |
| Total amortized cost and fair value | $90036854 | $86534704 | $83785307 | $79578179 |

---

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 2.** | **Investments (continued)** |

---

Proceeds from the sale of securities, maturities, and asset paydowns in 2025 and 2024 were $26,839,076 and $29,657,388, respectively. With the revision of ASC 326, changes in the allowance for credit losses is included in net gains (losses). Realized gains and losses related to the sale of securities and net credit losses recognized in income are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | 2024 |
| Gross gains | $**355547** | $201481 |
| Gross losses | **(1276970)** | (188450) |
| Net security losses | $**(921423)** | $13031 |
| Mortgage loans on real estate | **(43433)** | (34041) |
| (Increase) Decrease in allowance for credit losses | $**(43433)** | $(34041) |

---

Gross unrealized losses by duration are summarized as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Less than 12 months** | **Less than 12 months** | **Greater than 12 months** | **Greater than 12 months** | **Total** | **Total** |
|  | **Fair** | **Unrealized** | **Fair** | **Unrealized** | **Fair** | **Unrealized** |
|  | **Value** | **Loss** | **Value** | **Loss** | **Value** | **Loss** |
| **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Available for sale:** |  |  |  |  |  |  |
| **Fixed maturities:** |  |  |  |  |  |  |
| **US Treasury securities** | $**-** | $**-** | $**280278** | $**(78925)** | $**280278** | $**(78925)** |
| **Corporate bonds** | **8857877** | **(122197)** | **12403317** | **(2500118)** | **21261194** | **(2622315)** |
| **Municipal bonds** | **1163445** | **(27032)** | **4293247** | **(509376)** | **5456692** | **(536408)** |
| **Redeemable preferred stock** | **-** | **-** | **1521302** | **(147491)** | **1521302** | **(147491)** |
| **Term loans** | **897477** | **(1338)** | **6843379** | **(190174)** | **7740856** | **(191512)** |
| **Mortgage backed and asset backed securities** | **13117705** | **(178342)** | **6120275** | **(621121)** | **19237980** | **(799463)** |
| **Total fixed maturities** | $**24036504** | $**(328909)** | $**31461798** | $**(4047205)** | $**55498302** | $**(4376114)** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Less than 12 months** | **Less than 12 months** | **Greater than 12 months** | **Greater than 12 months** | **Total** | **Total** |
|  | **Fair** | **Unrealized** | **Fair** | **Unrealized** | **Fair** | **Unrealized** |
|  | **Value** | **Loss** | **Value** | **Loss** | **Value** | **Loss** |
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Available for sale:** |  |  |  |  |  |  |
| **Fixed maturities:** |  |  |  |  |  |  |
| **US Treasury securities** | $**444105** | $**(7244)** | $**267272** | $**(80922)** | $**711377** | $**(88166)** |
| **Corporate bonds** | **1959130** | **(52671)** | **12336095** | **(2937621)** | **14295225** | **(2990292)** |
| **Municipal bonds** | **1190019** | **(56801)** | **3551130** | **(618938)** | **4741149** | **(675739)** |
| **Redeemable preferred stock** | **-** | **-** | **2337770** | **(151695)** | **2337770** | **(151695)** |
| **Term loans** | **-** | **-** | **2609831** | **(212084)** | **2609831** | **(212084)** |
| **Mortgage backed and asset backed securities** | **10201273** | **(241577)** | **4708468** | **(703956)** | **14909741** | **(945533)** |
| **Total fixed maturities** | $**13794527** | $**(358293)** | $**25810566** | $**(4705216)** | $**39605093** | $**(5063509)** |

---

Unrealized losses occur from market price declines due to changes in interest rates. The total number of available for sale fixed maturity securities in the investment portfolio in an unrealized loss position as of December 31, 2025 was 195, which represented an unrealized loss of $4,376,114 of the aggregate carrying value of those securities. The 195 securities include 34 in the less than 12 months category and 161 in the greater than 12 months category. The 195 securities breakdown as follows: 111 bonds, 68 mortgage and asset backed securities, 9 term loans, and 7 redeemable preferred stock. Management does not intend to sell these securities and it is likely that management will not be required to sell before their anticipated recovery.

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 2.** | **Investments (continued)** |

---

**Mortgage Loans on Real Estate**

The Company has invested in various mortgage loans through participation agreements with the original issuing entity. The Company's mortgage loans by property type as of December 31, 2025 and December 31, 2024 are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Commercial mortgage loans by property type |  |  |
| Mixed use | $4352463 | $2159630 |
| Lodging | 2819346 | 2486961 |
| Multi-property | 866514 | 2188704 |
| Multi-family | 2678271 | 3202740 |
| Single-family | 61000 |  |
| Industrial | 800000 | 1800000 |
| Retail/Office | 12166561 | 13410399 |
| Total commercial mortgages | $23744155 | $25248434 |
| Allowance for credit losses | (99118) | (55685) |
| Carrying value | $23645037 | $25192749 |

---

The Company's mortgage loans by loan-to-value ratio as of December 31, 2025 and December 31, 2024 are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Loan to value ratio |  |  |
| Over 80% | $265283 | $- |
| Over 70 to 80% | 892800 | 892800 |
| Over 60 to 70% | 8868648 | 6399210 |
| Over 50 to 60% | 5700000 | 10215293 |
| Over 40 to 50% | 4312074 | 1820562 |
| Over 30 to 40% | 1705350 | 3231865 |
| Over 20 to 30% | 1500000 | 2188704 |
| Over 10 to 20% | 500000 | 500000 |
| Total | $23744155 | $25248434 |
| Allowance for credit losses | (99118) | (55685) |
| Carrying value | $23645037 | $25192749 |

---

The Company's mortgage loans by maturity date as of December 31, 2025 and December 31, 2024 are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Maturity Date | (unaudited) |  |
| One year or less | $8728034 | $6566055 |
| After one year through five years | 15016121 | 18682379 |
| Total | $23744155 | $25248434 |
| Allowance for credit losses | (99118) | (55685) |
| Carrying value | $23645037 | $25192749 |

---

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 2.** | **Investments (continued)** |

---

The Company evaluates commercial mortgage loans on a collective basis when similar risk characteristics exist and on an individual basis when such characteristics are not present. For individually evaluated loans where it is determined that it is not probable that all amounts due under the contractual terms will be collected, the Company measures expected credit losses based on the present value of expected future cash flows, discounted at the loan's original effective interest rate. If repayment is expected to be provided solely through the sale or operation of the collateral, expected credit losses are measured based on the fair value of the collateral, adjusted for estimated costs to sell when appropriate. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the loans to present the net carrying value expected to be collected. Changes in the allowance are recognized through earnings as credit loss expense. Loans are written off against the allowance when deemed uncollectible.

The Company recorded realized losses by writing down two mortgage loans during the year ending December 31, 2025. The first mortgage loan has a principal amount of $265,283 that is secured by real estate. The loan originated on March 28, 2022 and has an original maturity date of April 10, 2024. We no longer accrue interest on this asset. It previously carried an interest rate of 6.95%. As of the reporting date, the borrower is 630 days past due on payments. Specifically, the borrower has missed payments for the following periods:

- Payment due on April 10, 2024 - $755,663 Principal Amount

As of the reporting date, the loan has past due payments totaling $755,663, which includes both principal and accrued interest. In accordance with FASB ASC 326, the Company has evaluated the loan for expected credit losses by considering the borrower's historical payment behavior, current financial condition, and the fair value of the collateral securing the loan. Based on this assessment, the loan is determined to be collateral-dependent, as repayment is expected to be provided primarily through the operation or sale of the underlying collateral. The fair value of the collateral, net of estimated selling costs where applicable, is $490,380 less than the loan's amortized cost basis. The Company established an initial allowance for this loan in March of 2025 and increased it in November of 2025. An increase in allowance for credit losses in the amount of $490,380 was recorded and was subsequently recorded as a charge-off.

The second mortgage loan has a principal amount of $550,514 that is secured by real estate. This asset represents a pool of individual loans. The loan was originated on October 22, 2020 and has various maturity dates and interest rates. We no longer accrue interest on this asset. As of the reporting date, there are 13 loans. Five out of the 13 loans are delinquent with a total outstanding loan amount of $169,125, and 6 real estate owned properties with an outstanding loan amount of $381,963. Specifically, the borrower has missed payments totaling $551,088. No interest is being accrued on these loans.

The Company has evaluated the loan for expected credit losses in accordance with FASB ASC 326. This evaluation considered the borrower's historical payment performance, current financial condition, and the value of the collateral securing the loan. As part of this assessment, the Company determined that the loan is collateral-dependent, as repayment is expected to be provided primarily through the operation or sale of the underlying collateral. The fair value of the collateral, net of estimated costs to sell when applicable, is $193,473 less than the amortized cost basis of the loan. As a result, an allowance for credit losses of $193,473 was established in December of 2025 and was subsequently recorded as a charge-off.

Additionally, the Company had one mortgage loan participation with a specific allowance for credit losses of $250,000 as of March 31, 2025. This allowance was reversed based upon an updated third-party appraisal of the property, which showed the collateral value exceeded the amortized cost basis of the loan. The mortgage loan has a principal amount of $1,000,000 that is secured by real estate. The loan was originated on November 4, 2022 and had an original maturity date of December 1, 2025. The loan has been extended an additional three months. It previously carried an interest rate of 8%. Payments due in the second quarter have been modified to a reduced interest rate of 5% with the lost interest capitalized into the principal of the loan. It is uncertain if the borrower will be able to continue to make payments.

The Company has evaluated the loan for expected credit losses in accordance with FASB ASC 326. As part of this assessment, the Company considered relevant information about the borrower's current financial condition, historical payment performance, and the value of the collateral securing the loan. Based on this evaluation, the loan is determined to be collateral-dependent, and repayment is expected to be derived primarily from the operation or sale of the collateral. The fair value of the collateral, net of estimated costs to sell when applicable, exceeds the amortized cost basis of the loan by 40%. As such, no allowance for credit losses has been recorded as of the reporting date.

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

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| | |
|:---|:---|
| **Note 2.** | **Investments (continued)** |

---

For mortgage loans on which collection of interest income is uncertain, we discontinue the accrual of interest and recognize it in the period when an interest payment is received. We typically do not resume the accrual of interest on mortgage loans on nonaccrual status until there are significant improvements in the underlying financial condition of the borrower. We consider a loan to be delinquent if full payment is not received in accordance with the contractual terms of the loan.

The amount of the general loan allowance is based upon management's evaluation of the collectability of the loan portfolio, historical loss experience, delinquencies, credit concentrations, underwriting standards and national and local economic conditions. The Company does not measure a credit loss allowance on accrued interest receivable as we write off any uncollectible accrued interest receivable balance to net investment income in a timely manner. The Company did not charge off any uncollectible accrued interest receivable on our commercial mortgage loan portfolio during the years ended December 31, 2025 and 2024.

The Company's commercial mortgage loans are pooled by risk rating and property collateral type and an estimated loss ratio is applied against each risk pool. The loss ratios are generally based upon historical loss experience for each risk pool and are adjusted for current and forecasted economic factors management believes to be relevant and supportable. Economic factors are forecasted for two years with immediate reversion to historical experience.

The following table presents a roll-forward of our general and specific valuation allowances for our commercial mortgage loan portfolio:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended December 31, 2025 | Year Ended December 31, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2024 |
|  | Specific Allowance | General Allowance | Specific Allowance | General Allowance |
| Beginning allowance balance | $- | $55685 | $**-** | $21644 |
| Change in provision for credit losses | 683853 | 43433 | **-** | 34041 |
| Charge-offs | (683853) |  |  |  |
| Ending Allowance | $- | $99118 | $- | $55685 |

---

The following table presents a breakdown of our mortgage loans by aging category:

---

| | | | |
|:---|:---|:---|:---|
|  | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 |
|  | Outstanding Balance | Allowance for Credit Losses | Net Carrying Amount |
| **Aging Category** |  |  |  |
| Not past due (Current) | $22928358 | $(99078) | $22829280 |
| 1-30 days past due | **-** |  |  |
| 31-60 days past due | **-** |  |  |
| 61-90 day past due | **-** |  |  |
| Over 90 days past due | 815797 | (40) | 815757 |
| Mortgage loan carrying value | $23744155 | $(99118) | $23645037 |

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

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| | |
|:---|:---|
| **Note 2.** | **Investments (continued)** |

---

The Company will record an "intent-to-sell impairment" as a reduction to the amortized cost of available for sale fixed maturities in an unrealized loss position if the Company intends to sell or it is more likely than not that the Company will be required to sell the fixed maturity before a recovery in value. A corresponding charge is recorded in net realized losses equal to the difference between the fair value on the impairment date and the amortized cost basis of the fixed maturity before recognizing the impairment.

For fixed maturity securities where a credit loss has been identified and no intent-to-sell impairment has been recorded, the Company will record an allowance for credit loss ("ACL") for the portion of the unrealized loss related to a credit loss. Any remaining unrealized loss on a fixed maturity after recording an ACL is the non-credit amount is recorded in other comprehensive income. The ACL is the excess of the amortized cost over the greater of the Company's best estimate present value of the expected future cash flows or the security's fair value. Cash flows are discounted at the effective yield that is used to record interest income. The ACL cannot exceed the unrealized loss and, therefore, it may fluctuate with the changes in the fair value of the fixed maturity if the fair is greater than the Company's best estimate of the present value of expected future cash flows. The initial ACL and any subsequent changes are recorded in net realized gains and losses. The ACL is written off against amortized cost in the period in which all or a portion of the related fixed maturity is determined to be uncollectible.

Developing the Company's best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third party sources along with certain internal assumptions regarding the future performance. The Company's considerations include a) changes in the financial condition of the issuer and/or the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security, and (e) the extent to which the fair value has been less than the amortized cost of the security. For non-structured securities, assumptions included, but are not limited to, economic and industry specific trends and fundamentals, instrument specific developments including changes in credit ratings, industry earnings multiples, and the issuer's ability to restructure, access capital markets, and execute asset sales.

The following table presents a roll-forward of allowances for our fixed maturity securities:

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
| Beginning allowance balance | $**-** | $- |
| Change in provision for credit losses | 381393 |  |
| Charge-offs | (381393) |  |
| Ending Allowance | $- | $- |

---

**Investment Income, Net of Expenses**

The components of net investment income for the years ended December 31, 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2025 | 2024 |
| Fixed maturities | $**5460250** | $5985869 |
| Mortgages | **2067165** | 1680515 |
| Equity securities | **257693** | 313416 |
| Other invested assets | **128994** | 197760 |
| Cash and cash equivalents | **284938** | 322841 |
|  | **8199040** | 8500401 |
| Less investment expenses | **(890572)** | (902639) |
|  | $**7308468** | $7597762 |

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

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| | |
|:---|:---|
| **Note 2.** | **Investments (continued)** |

---

**Net Investment Gains (losses)**

Net investment gains (losses) for the years ended December 31, 2025 and 2024 are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | 2024 |
| Recognized gains on sale of investments | $**143823** | $13031 |
| Realized loss on charge offs of investments | **(1065246)** |  |
| Change in allowance for credit loss recognized in earnings | **(43433)** | (34041) |
| Unrealized net gains recognized in earnings | **742754** | 8414 |
| Embedded derivative | **(269374)** | 296019 |
| Net investment (losses) gains | $**(491476)** | $283423 |

---

---

| | |
|:---|:---|
| **Note 3.** | **Derivative Instruments** |

---

<u>Accounting for Derivative Instruments</u>

See Note 1 for a detailed description of the accounting treatment for derivative instruments, including embedded derivatives.

<u>Types of Derivatives used by the Company</u>

The Company's derivatives consist of a reinsurance contract allocated hedge recorded through the change in value of embedded derivative on the statement of cash flows.

<u>Summary of Derivative Positions</u>

The fair value of the Company's derivative financial instruments on the consolidated balance sheets is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |  |
|  | **Derivative** | **Derivative** | **Derivative** | **Derivative** | **Balance** |
|  | **Asset** | **Liability** | **Asset** | **Liability** | **Reported In** |
| Derivatives: |  |  |  |  |  |
| Embedded derivatives: |  |  |  |  |  |
| Reinsurance contract allocated hedge | $**77197** | $**-** | $**713114** | $- | Reinsurance related assets |

---

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 3.** | **Derivative Instruments (continued)** |

---

The following table shows the change in the fair value of the derivative financial instruments in the consolidated statements of comprehensive income (loss):

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ending** | **Year Ending** | **Balance** |
|  | **December 31, 2025** | **December 31, 2024** | **Reported In** |
| Derivatives: |  |  |  |
| Embedded derivatives: |  |  |  |
| Change in reinsurance contract allocated hedge | $**(269374)** | $296019 | Net investment (losses) gains |

---

---

| | |
|:---|:---|
| **Note 4.** | **Fair Value Measurements** |

---

The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. The Company uses a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement rate.

● Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

● Level 3 inputs are unobservable for the asset or liability and reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

<u>Investments, available for sale</u>: Fair values of available for sale fixed maturity securities are provided by a third party pricing service. The pricing service uses a variety of sources to determine fair value of securities. The Company's fixed maturity securities are highly liquid, which allows for a high percentage of the portfolio to be priced through pricing sources.

<u>Equity securities:</u> Fair values for equity securities are also provided by a third party pricing service and are derived from active trading on national market exchanges.

<u>Embedded derivative</u>: The fair value of the reinsurance related assets represents the Company's allocation of the fair value of the corresponding derivative instruments used in the hedge which are based on the quoted market prices of the underlying derivate instruments. The fair value of the underlying assets for both embedded derivatives are generally based upon market observable inputs with industry standard valuation techniques. The valuation also requires certain significant inputs, which are generally not observable and accordingly, the valuation is considered Level 3 in the fair value hierarchy. The Company's utilization of a credit-valuation adjustment did not have a material effect on the change in fair value of the embedded derivatives for the years ended December 31, 2025 and December 31, 2024.

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 4.** | **Fair Value Measurements (continued)** |

---

The table below presents the amounts of assets measured at fair value on a recurring basis as of December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
| **Fixed maturities:** |  |  |  |  |
| **US Treasury securities** | $**732892** | $**732892** | $**-** | $**-** |
| **Corporate bonds** | **28299216** | **-** | **28143616** | **155600** |
| **Municipal bonds** | **5807136** | **-** | **5807136** | **-** |
| **Redeemable preferred stock** | **1998438** | **-** | **1998438** | **-** |
| **Term loans** | **11005804** | **-** | **-** | **11005804** |
| **Mortgage backed and asset backed securities** | **38691218** | **-** | **38357468** | **333750** |
| **Total fixed maturities** | **86534704** | **732892** | **74306658** | **11495154** |
| **Equities:** |  |  |  |  |
| **Common stock** | **2097203** | **1968303** | **128900** | **-** |
| **Preferred stock** | **1445209** | **-** | **1445209** | **-** |
| **Total equities** | **3542412** | **1968303** | **1574109** | **-** |
| **Other invested assets** | **1018640** | **-** | **-** | **1018640** |
| **Reinsurance contract allocated hedge** | **77197** | **-** | **-** | **77197** |
| **Limited partnership interests** | **1293005** | **-** | **-** | **1293005** |
| **Total** | $**92465958** | $**2701195** | $**75880767** | $**13883996** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
| **Fixed maturities:** |  |  |  |  |
| **US Treasury securities** | $**711377** | $**711377** | $**-** | $**-** |
| **Corporate bonds** | **21491820** | **-** | **21322220** | **169600** |
| **Municipal bonds** | **4741149** | **-** | **4741149** | **-** |
| **Redeemable preferred stock** | **2411234** | **-** | **2411234** | **-** |
| **Term loans** | **12788304** | **-** | **-** | **12788304** |
| **Mortgage backed and asset backed securities** | **37434295** | **-** | **37090545** | **343750** |
| **Total fixed maturities** | **79578179** | **711377** | **65565148** | **13301654** |
| **Equities:** |  |  |  |  |
| **Common stock** | **2395195** | **2271495** | **123700** | **-** |
| **Preferred stock** | **1480890** | **-** | **1480890** | **-** |
| **Total equities** | **3876085** | **2271495** | **1604590** | **-** |
| **Other invested assets** | **1109606** | **-** | **-** | **1109606** |
| **Reinsurance contract allocated hedge** | **713114** | **-** | **-** | **713114** |
| **Limited partnership interests** | **428170** | **-** | **-** | **428170** |
| **Total** | $**85705154** | $**2982872** | $**67169738** | $**15552544** |

---

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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---

| | |
|:---|:---|
| **Note 4.** | **Fair Value Measurements (continued)** |

---

The reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Mortgage |  | Other | Limited |
| **For the year ended December 31, 2025** | Corporate | Backed | Term | Invested | Partnership |
|  | Bonds | Securities | Loans | Assets | Interests |
| Fair value, beginning of period | $169600 | $343750 | $12788304 | $1109606 | $428170 |
| Principal payment | (14000) |  | (4919378) |  | (20408) |
| Acquisition |  |  | 2730950 | 106447 | 653814 |
| Investment related gains (losses), net |  | (10000) | 405928 | (197413) | 231429 |
| Fair value, end of period | $155600 | $333750 | $11005804 | $1018640 | $1293005 |

---

The Company discloses the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed on the previous page. The estimated fair value approximates carrying value for accrued interest. The methodologies for other financial assets and financial liabilities are discussed below:

<u>Cash and cash equivalents</u>: The carrying amounts approximate fair value because of the short maturity of these instruments.

<u>Investment income due and accrued:</u> The carrying amounts approximate fair value because of the short maturity of these instruments.

<u>Mortgage loans on real estate:</u> Mortgage loans are carried at their unpaid principal value as that is considered the fair market values for these loans. The fair values of mortgage loans on real estate are calculated using discounted expected cash flows using competitive market interest rates currently being offered for similar loans. The inputs utilized to determine fair value of all mortgage loans are unobservable market data (competitive market interest rates); therefore, fair value of mortgage loans falls into Level 3 in the fair value hierarchy.

<u>Limited partnership interests</u>: Limited partnership interests are carried at net asset value which approximates fair value.

<u>Reinsurance contract allocated hedge</u>: The carrying value of funds withheld at interest approximates fair value as funds are specifically identified in the agreement. The fair value of the specified funds is based on the fair value of the underlying assets that are held by the ceding company. The ceding company uses a variety of sources and pricing methodologies, which are not transparent to the Company and may include significant unobservable inputs to value the securities held in distinct portfolios, therefore the valuation of these funds withheld assets are considered Level 3 in the fair value hierarchy.

<u>Policy loans</u>: Policy loans are stated at unpaid principal balances. As these loans are fully collateralized by the cash surrender value of the underlying insurance policies, the carrying value of the policy loans approximates their fair value.

<u>Federal Home Loan Bank Advances:</u> FHLB advances are stated at the outstanding principal balances and the carrying value approximates fair value.

<u>Policyholder deposits in deposit-type contracts</u>: The fair value for policyholder deposits deposit-type insurance contracts (accumulation annuities) is calculated using a discounted cash flow approach. Cash flows are projected using actuarial assumptions and discounted to the valuation date using risk-free rates adjusted for credit risk and the nonperformance risk of the liabilities.

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 4.** | **Fair Value Measurements (continued)** |

---

The estimated fair values of the Company's financial assets and liabilities, measured on a non-recurring basis, as of December 31, 2025 and 2024 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** |  |  |  |
|  | **Carrying Value** | **Fair Value** | Level 1 | Level 2 | Level 3 |
| Financial Assets: |  |  |  |  |  |
| Cash and cash equivalents | $**18036904** | $**18036904** | $18036904 | $- | $- |
| Mortgage loans on real estate | **23645037** | **25123294** |  |  | 25123294 |
| Investment income due and accrued | **860697** | **860697** |  |  | 860697 |
| Policy loans | **41314** | **41314** |  |  | 41314 |
| Total Financial Assets (excluding available for sale investments) | $**42583952** | $**44062209** | $18036904 | $- | $26025305 |
| Financial Liabilities: |  |  |  |  |  |
| Federal Home Loan Bank advance | $**1250000** | $**1250000** | $- | $- | $1250000 |
| Policyholder deposits in deposit-type contracts | **87824261** | **76539273** |  |  | 76539273 |
| Total Financial Liabilities | $**89074261** | $**77789273** | $- | $- | $77789273 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** |  |  |  |
|  | **Carrying Value** | **Fair Value** | Level 1 | Level 2 | Level 3 |
| Financial Assets: |  |  |  |  |  |
| Cash and cash equivalents | $**6903783** | $**6903783** | $6903783 | $- | $- |
| Mortgage loans on real estate | **25192749** | **25192749** |  |  | 25192749 |
| Investment income due and accrued | **954324** | **954324** |  |  | 954324 |
| Policy loans | **31745** | **31745** |  |  | 31745 |
| Total Financial Assets (excluding available for sale investments) | $**33082601** | $**33082601** | $6903783 | $- | $26178818 |
| Financial Liabilities: |  |  |  |  |  |
| Federal Home Loan Bank advance | $**1250000** | $**1250000** | $- | $- | $1250000 |
| Policyholder deposits in deposit-type contracts | **77940378** | **64945983** |  |  | 64945983 |
| Total Financial Liabilities | $**79190378** | $**66195983** | $- | $- | $66195983 |

---

During the years ended December 31, 2025 and 2024, there were no transfers in or out of level 3.

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 5.** | **Liability for Future Policyholder Benefits** |

---

The liability for future policy benefits is determined as the present value of expected future policy benefits to be paid to or on the behalf of policyholders and certain related expenses less the present value of expected future net premiums receivable under the Company's insurance contracts. Future net premiums receivable are future gross premiums receivable under the contract multiplied by the NPR.

The calculation of the liability for future policy benefits involves numerous assumptions including assumptions related to discount rate, lapses, mortality, and morbidity. The discount rate assumptions were initially set based on the expected investment yield of the assets supporting the reserves at the transition date of LDTI which was January 1, 2024, for policies originally issued on or before the transition date. The discount rate assumptions for new cohorts established after the transition date, are initially set based on the policy issuance date or policy renewal date, and are based on an upper-medium grade fixed-income instrument, which is generally equivalent to a single-A interest rate matched to the duration of our insurance liabilities.

The initial, also referred to as the original, discount rate assumptions established for each cohort are used to determine interest accretion which is reported as a component of policy benefits on the statements of comprehensive income. After policy issuance or policy renewal, the discount rate assumptions are updated quarterly and used to update the liability at each reporting date to the current discount rate, with the corresponding change reflected as the change in the effect of discount rate assumptions on the liability for future policy benefits, net of reinsurance, on the statement of changes in other comprehensive income (loss). Policyholder lapse and mortality assumptions reflect the probability that an insureds' coverage is discontinued due to lapsation or death of the insured. For our life insurance products, mortality assumptions also reflect the probability that a benefit payment occurs. Policyholder lapse and mortality assumptions are based on actual experience or industry standards, adjusted as appropriate. Claim incidence and claim resolution rate assumptions related to morbidity and mortality are based on actual experience or industry standards adjusted as appropriate to reflect our actual experience and future expectations.

Cash flow assumptions are reviewed and updated, as needed, at least annually. Assumptions may be updated more frequently if necessary based on trending experience and future expectations. On a quarterly basis, cohort level cash flow measures are updated based on the emergence of actual experience. The updated cash flows are used to determine the updated net premiums and the net premium ratio, which is the present value of benefits and related expenses divided by the present value of gross premiums. The updated net premium ratio is used to calculate the updated liability for future policy benefits as of the beginning of the year, at the original discount rate. The change in the liability for future policy benefits related to changes in the discount rate is reported in other comprehensive income. The impact of all other changes in the liability for future policy benefits are reflected as increases in policyholder benefit reserves in the consolidated statements of income.

For most products, a net premium methodology is applied to each cohort to estimate the liability for claims not yet incurred in which discounted gross benefits are compared to discounted gross premiums. In this methodology, actual experience to date is combined with projected future cash flows to determine a net premium ratio for each cohort. The future cash flows include the costs of future expected claims as well as future cash flows on claims that have already been incurred. The net premium ratio is then used to estimate the liability for future policy benefits. The liability for future policy benefits represents the present value of future claims and associated expenses less the present value of future net premiums, which is derived by multiplying the present value of future gross premium by the net premium ratio.

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 5.** | **Liability for Future Policyholder Benefits (continued)** |

---

The following tables present the changes in the present value of expected future net premiums and the present value of expected future policy benefits by product type as of and for the years ended December 31, 2025 and 2024. The present value of expected future net premiums and the present value of expected future policy benefits are presented gross of ceded reinsurance.

---

| | | | |
|:---|:---|:---|:---|
| **Present Value of Expected Future Net Premiums** |  |  |  |
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Individual Life** | **Critical Illness** | **Total** |
| &nbsp;&nbsp;&nbsp; Balance, beginning of year<br>| $399564 | $10179 | $409743 |
| Beginning balance at original discount rate | 649287 | 11560 | 660847 |
| Effect of changes in cash flow assumptions | (1239943) |  | (1239943) |
| Effect of actual variances from expected experience | (10249) | 8992 | (1257) |
| Adjusted beginning of year balance | (600905) | 20552 | (580353) |
| New issues | 9148351 | 156 | 9148507 |
| Interest accrual | 339056 | 838 | 339894 |
| Net premiums collected | (9155192) | (1728) | (9156920) |
| Derecognition (lapses) |  |  |  |
| Ending balance at original discount rate | (268690) | 19818 | (248872) |
| Effect of changes in discount rate assumptions | (131654) | (1794) | (133448) |
| Balance, end of year | $(400344) | $18024 | $(382320) |
| **Present Value of Expected Future Policy Benefits** |  |  |  |
|  | **Individual** |  |  |
|  | **Life** | **Critical Illness** | **Total** |
| Balance, beginning of year | $36222623 | $10698 | $36233321 |
| Beginning balance at original discount rate | 40651821 | 12947 | (5682746) |
| Effect of changes in cash flow assumptions | 21011 |  | (127270) |
| Effect of actual variances from expected experience | (106799) | 9457 | (97342) |
| Adjusted beginning of year balance | 40566033 | 22404 | 40588437 |
| New issues | 9735500 | 156 | 9735656 |
| Death benefits | (5672746) | (10000) | (5682746) |
| Surrender/maturity | (127270) |  | (127270) |
| Other benefits |  | (527) | (527) |
| Dividends | (2) |  | (2) |
| Return of premium |  |  |  |
| Expense included in Reserve | (64683) | (37) | (64720) |
| Interest accrued | 1932984 | 586 | 1933570 |
| Ending balance at original discount rate | 46369816 | 12582 | 46382398 |
| Effect of changes in discount rate assumptions | (3617243) | (1952) | (3619195) |
| Balance, end of year | $42752573 | $10630 | $42763203 |
| Net liability for future policy benefits | $43152917 | $(7394) | $43145523 |
| Flooring of liability at zero at cohort level |  | 7570 | 7570 |
| Net liability for future policy benefits, post-flooring | 43152917 | 176 | 43153093 |
| Less: Reinsurance recoverable (payable) | 421244 | (9962) | 411282 |
| Net liability for future policy benefits, after reinsurance recoverable | $42731673 | $10138 | $42741811 |

---

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 5.** | **Liability for Future Policyholder Benefits (continued)** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Present Value of Expected Future Net Premiums** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Individual** |  |  |
|  | **Life** | **Critical Illness** | **Total** |
| &nbsp;&nbsp;&nbsp; Balance, beginning of year<br>| $1459013 | $10810 | $1469822 |
| Beginning balance at original discount rate | 1632430 | 11632 | 1644062 |
| Effect of changes in cash flow assumptions | (1368429) |  | (1368429) |
| Effect of actual variances from expected experience | (319354) | 365 | (318989) |
| Adjusted beginning of year balance | (55352) | 11997 | (43355) |
| New issues | 8109289 | 59 | 8109348 |
| Interest accrual | 158925 | 484 | 159409 |
| Net premiums collected | (7562606) | (981) | (7563587) |
| Derecognition (lapses) |  |  |  |
| Ending balance at original discount rate | 650256 | 11560 | 681815 |
| Effect of changes in discount rate assumptions | (249713) | (1381) | (251094) |
| Balance, end of year | $400542 | $10179 | $410721 |
| **Present Value of Expected Future Policy Benefits** |  |  |  |
|  | **Individual** |  |  |
|  | **Life** | **Critical Illness** | **Total** |
| Balance, beginning of year | $32472542 | $11215 | $32483757 |
| Beginning balance at original discount rate | 35351429 | 12500 | 35363929 |
| Effect of changes in cash flow assumptions | 2370 |  | 2370 |
| Effect of actual variances from expected experience | (711655) | 369 | (711286) |
| Adjusted beginning of year balance | 34642143 | 12870 | 34655013 |
| New issues | 8483515 | 59 | 8483573 |
| Death benefits | (3677131) |  | (3677131) |
| Surrender/maturity | (144829) |  | (144829) |
| Other benefits |  | (479) | (479) |
| Dividends | (8) |  | (8) |
| Return of premium |  |  |  |
| Expense included in Reserve | (53142) | (34) | (53176) |
| Interest accrued | 1398083 | 532 | 1398615 |
| Ending balance at original discount rate | 40648631 | 12947 | 40661578 |
| Effect of changes in discount rate assumptions | (4429098) | (2249) | (4431347) |
| Balance, end of year | $36219533 | $10698 | $36230231 |
| Net liability for future policy benefits, pre-flooring | $35818991 | $519 | $35819510 |
| Flooring of liability at zero at cohort level | 6402 |  | 6402 |
| Net liability for future policy benefits, post-flooring | 35825393 | 519 | 35825912 |
| Less: Reinsurance recoverable (payable) | 374700 | (6630) | 368071 |
| Net liability for future policy benefits, after reinsurance recoverable | $35450693 | 7148 | $35457841 |

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 5.** | **Liability for Future Policyholder Benefits (continued)** |

---

The following table provides a reconciliation of future policyholder benefits reported in the table above to total future policyholder benefits:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
| Liability for future policyholder benefits | $43153093 | $35825912 |
| In course of settlements | 764862 | 104533 |
| Incurred but not reported | 372089 | 239954 |
| Other | 269409 | 274541 |
| Total liability for future policyholder benefits | $44559453 | $36444940 |

---

The following table provides the amount of undiscounted expected gross premiums and expected future benefits and expenses for the products reported in the table above:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025 (undiscounted)** | **December 31, 2025 (undiscounted)** |
|  | **Traditional** | **Disability &** |
|  | **Life** | **Critical Illness** |
| Expected future gross premiums | $15692183 | $412176 |
| Expected future benefits and expenses | $80814045 | $27063 |

---

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025 (discounted)** | **December 31, 2025 (discounted)** |
|  | **Traditional** | **Disability &** |
|  | **Life** | **Critical Illness** |
| Expected future gross premiums | $11460334 | $225911 |
| Expected future benefits and expenses | $42752896 | $11019 |

---

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024 (undiscounted)** | **December 31, 2024 (undiscounted)** |
|  | **Traditional** | **Disability &** |
|  | **Life** | **Critical Illness** |
| Expected future gross premiums | $15641809 | $442793 |
| Expected future benefits and expenses | $70521251 | $27208 |

---

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024 (discounted)** | **December 31, 2024 (discounted)** |
|  | **Traditional** | **Disability &** |
|  | **Life** | **Critical Illness** |
| Expected future gross premiums | $11290012 | $234606 |
| Expected future benefits and expenses | $36219532 | $10697 |

---

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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---

| | |
|:---|:---|
| **Note 6.** | **Deposit-type Contracts** |

---

Liabilities for deferred annuity deposit-type contracts are included without reduction for potential surrender charges. This liability is equal to the accumulated account deposits, plus interest credited, and less policyholder withdrawals. Crediting rates fall in a range of 2% to 6%. The following table provides information about deferred annuity deposit-type contracts for the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **Year ended** | **Year end** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Balance at beginning of period | $**77804068** | $77928817 |
| Deposits received | **23166671** | 5956592 |
| Interest credited | **2103447** | 1907674 |
| Withdrawals | **(15365815)** | (7989015) |
| Balance at end of period | $**87708371** | $77804068 |

---

The premium deposit funds credit interest based upon a fixed interest rate set by the Company. The Company has the ability to change this rate subject to minimums established by law or administrative regulation.

Liabilities for premium deposit fund deposit-type contracts are included without reduction for potential surrender charges. This liability is equal to the accumulated account deposits, plus interest credited, and less withdrawals. The following table provides information about premium deposit fund deposit-type contracts for the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **Year ended** | **Year end** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Balance at beginning of period | $**136310** | $135071 |
| Deposits received | **3011** | 27434 |
| Interest credited | **2559** | 3052 |
| Withdrawals | **(25990)** | (29247) |
| Balance at end of period | $**115890** | $136310 |

---

---

| | |
|:---|:---|
| **Note 7.** | **Deferred Acquisition Costs** |

---

The following tables display the changes in DAC throughout the year by product type:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fixed** | **Individual** |  |  |
|  | **Annuity** | **Life** | **Critical Illness** | **Total** |
| Balance at December 31, 2024 | $3052792 | $1350187 | $17 | $4402996 |
| Capitalization | 383869 | 701209 |  | 1085078 |
| Amortization expense | (436183) | (226302) | (17) | (662502) |
| Experience Adjustments | (85945) |  |  | (85945) |
| Balance at December 31, 2025 | $2914533 | $1825094 | $- | $4739627 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fixed** | **Individual** |  |  |
|  | **Annuity** | **Life** | **Critical Illness** | **Total** |
| Balance at December 31, 2023 | $3744583 | $1006914 | $- | $4751497 |
| Capitalization |  | 597784 | 142 | 597659 |
| Amortization expense | (457841) | (250105) | (125) | (707804) |
| Experience Adjustments | (233951) | (4404) |  | (238355) |
| Balance at December 31, 2024 | $3052792 | $1350187 | $17 | $4402996 |

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

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| | |
|:---|:---|
| **Note 8.** | **Income Tax Provision** |

---

The Company files a consolidated life insurance federal income tax return. Certain items included in income reported for financial statement purposes are not included in taxable income for the current period, resulting in deferred income taxes.

A reconciliation of federal income tax expense computed by applying the federal income tax rate of 21% to income before federal income tax expense for the years ended December 31, 2025 and 2024, respectively, is summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** |  | **2024** |  |
| Income before total federal income tax | (1105535) |  | 620250 |  |
| Tax rate |  | 21% |  | &nbsp;&nbsp;&nbsp;&nbsp;21% |
| Expected income tax expense (benefit) | (232162) |  | 129966 |  |
| Effect of tax-exempt income | (12870) | 1.2% | (15703) |) (2.5%) |
| Nondeductible expenses | 2488 | (0.2%) | 3870 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.6% |
| State income tax, net | 8795 | (0.8%) | 621 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.1% |
| Return-to-Provision adjustments | (71643) | &nbsp;&nbsp;&nbsp;&nbsp;6.5% | (6460) |) 1.0% |
| Change in valuation allowance | (13301) | &nbsp;&nbsp;&nbsp;&nbsp;1.2% | (32417) |) (5.2%) |
| Total | (318693) | 28.8% | 79878 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9% |

---

For the year ended December 31, 2025, the Company recognized total tax benefit of $318,693. This expense is comprised of current tax expense of $92,832 and a deferred tax benefit of $411,525. For the year ended December 31, 2024, the Company recognized a total tax expense of $79,878.

Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes. Significant components of the Company's deferred tax liabilities and assets as of December 31, 2025 and 2024 are summarized as follows:

---

| | | |
|:---|:---|:---|
| <u>Deferred Tax Assets</u> | **2025**  | **2024**  |
| Net operating and capital loss carryforwards | 1851118 | 2002668 |
| Unamortized start-up costs | 42201 | 63302 |
| Policyowner benefit reserves | 832229 | 1422794 |
| Unrealized Losses | 603201 | 753506 |
| Tax DAC | 1456387 | 1013358 |
| Deferred tax asset valuation allowance | (295966) | (309267) |
|  | 4489170 | 4946361 |
| <u>Deferred Tax Liabilities</u> |  |  |
| GAAP DAC | 995322 | 924629 |
| Fixed assets | 74506 | 84775 |
| 8 Year Spread | (0) | 38905 |
| Value of business acquired | 470638 | 490046 |
| Other GAAP to Tax Differences | (51638) | 545849 |
|  | 1488543 | 2084204 |
| Net Deferred Tax | 3000912 | 2862157 |

---

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 8.** | **Income Tax Provision (continued)** |

---

The Company evaluated the realizability of its deferred tax assets by considering both positive and negative evidence in accordance with ASC 740. The positive evidence included projections of future taxable income, the expected reversal of taxable temporary differences, and the availability of feasible tax-planning strategies. The negative evidence considered included cumulative historical losses in certain jurisdictions and other factors that reduce the likelihood of generating sufficient taxable income prior to the expiration of certain attributes. Based on the weight of all available evidence, management concluded that a partial valuation allowance remained appropriate as of the reporting date.

The Company has federal net operating loss ("NOL") and capital loss carryforwards of $6,489,189 and $7,128,060 as of December 31, 2025 and 2024, respectively. The federal NOLs generated in the years ended December 31, 2010 through 2018 will begin to expire in 2028 for federal income tax purposes. NOLs originating before January 1, 2018 are eligible to offset taxable income, if not otherwise limited under Internal Revenue Code ("IRC") section 382 limitations. NOLs generated after December 31, 2017, have an indefinite carryforward period and are subject to 80% deduction limitations based upon pre-NOL taxable income. The Company had no known uncertain tax benefits included in its provision for income taxes as of December 31, 2025 and 2024.

---

| | |
|:---|:---|
| **Note 9.** | **Reinsurance** |

---

A summary of significant reinsurance amounts affecting the accompanying consolidated financial statements as of years ended December 31, 2025 and 2024 and for the years ended December 31, 2025 and 2024 is listed in the following table.

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | December 31, 2024 |
| Balance Sheet |  |  |
| Benefits and claim reserves ceded | $**411282** | $90350 |
| Amounts due (to) from ceding company | **457535** | (5898) |
| Benefits and claim reserves assumed | **47568543** | 47689189 |

---

---

| | | |
|:---|:---|:---|
|  | **Years ended**  | **Years ended**  |
| Statements of Comprehensive Loss | **December 31, 2025** | December 31, 2024 |
| Ceded premium | $**1595872** | $1546612 |
| Assumed premium | **5193631** | 4956205 |
| Allowances on ceded premium | **24713** | 122809 |
| Allowances paid on assumed premium | **541450** | 595156 |
| Assumed benefits and policyholder reserve increases | **5756946** | 5516908 |

---

The company currently reinsures business in excess of its retention with General Re Life Corporation, Reliance Standard Life Insurance Company, Unified Life Insurance Company, Hartford Life and Accident Company, and Optimum Re Insurance Company. The Company also currently assumes business under agreements with Unified Life Insurance Company and American Life and Security Corporation. Management regularly monitors the performance of its reinsurers. The Company cedes business to highly rated reinsurers (General Re A++, Harford Life A+, Optimum Re A).

---

| | |
|:---|:---|
| **Note 10.** | **Related Party Transactions** |

---

Brier Development Company, Inc. is owned solely by Jack Brier, President and CEO of the Company. Brier Development Company, Inc. owns 20,000 shares of stock in USAC which are in escrow until 3 years after the termination of the public offering. The Company makes reimbursements to Brier Development Company, Inc. on behalf of Jack H. Brier for single coverage for long-term care, Medicare coverage, and an allowance for vehicle expenses. Reimbursements for these items were $26,773 for years ended December 31, 2025 and 2024, respectively.

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 11.** | **Federal Home Loan Bank Advances** |

---

One of the Company's subsidiaries, USALSC, is a member of the Federal Home Loan Bank of Topeka (FHLB), which provides access to collateralized borrowings. Any borrowings from FHLB requires the purchase of FHLB common stock in an amount equal to 4.5% of the borrowing. On October 31, 2019, USALSC received an advance of $1,000,000 based on USALSC purchasing $45,000 of FHLB common stock. This regular fixed convertible advance has a 10 year term with an FHLB option to convert to an adjustable rate on the 5th anniversary. The interest rate at issue was 1.66%. FHLB converted this note in October 2024 and the Company repaid the advance. The Company took a two year advance in October 2024 for $1,250,000. The interest rate at issue was 4.32%. As of December 31, 2025 and 2024, the Company had outstanding advances of $1,250,000.

As of December 31, 2025, USALSC had pledged $3,370,537 of mortgage backed securities and US treasuries to FHLB in support of its outstanding advance.

---

| | |
|:---|:---|
| **Note 12.** | **Restricted Funds**  |

---

As required by North Dakota law, US Alliance Life and Security Company maintains a trust account at the Bank of North Dakota which is jointly owned by the North Dakota Insurance Department. These assets were held in bonds and other invested assets with a statement value of $1,500,000 as of December 31, 2025 and 2024. Additionally, the USALSC has special deposits with the States of Missouri, New Mexico, and Nevada. US Alliance Life and Security Company – Montana has $825,000 of funds on deposit jointly owned by the Montana Department of Insurance at Capitol Federal Savings Bank.

---

| | |
|:---|:---|
| **Note 13.** | **Operating Segments** |

---

The Company operates as a single reportable segment, defined by our comprehensive business model that encompasses writing direct business and opportunistically assuming reinsurance through wholly owned subsidiaries, namely USALSC and DCLIC (which was merged into USALSC in 2023). On a direct basis, the Company underwrites a diverse range of insurance products, including term life, whole life, group life, short- and long-term disability, critical illness, juvenile term, annuities, and preneed products. Additionally, the Company assumes annuities and life policies on a coinsurance basis.

Our products are underwritten opportunistically across various channels without differentiation in profitability evaluation by product type or whether they were written directly or assumed. This cohesive strategy allows for a streamlined assessment of our overall performance.

The Company's chief executive officer and chief financial officer employ a consistent set of financial metrics and performance indicators. This approach renders it impractical to separate operations into distinct segments. Key performance indicators utilized by the chief operating decision makers (CODMs) include cash flow from insurance activities, total income, operating expenses as a percentage of total expenses, and net income per share.

Resource allocation is centralized, with all major decisions made at the corporate level rather than by separate divisions. This ensures a unified approach to managing resources and strategic initiatives across the organization.

The Company's financial results are reported collectively, as the financial performance of our operations does not vary significantly among different areas of the business. For instance, the Company does not bifurcate its investment portfolio by product type, further underscoring the integrated nature of our operations.

The CODMs assess the performance of the Company and allocate resources based on net income, which is also reported on the consolidated income statement. The measure of the Company's single segment assets is reflected in total consolidated assets on the balance sheet.

Since we operate as one segment, segment revenue, profit and loss and expenses are the same as presented in the consolidated statements of comprehensive income.

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 14.** | **Statutory Net Income and Surplus** |

---

US Alliance Life and Security Company is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the North Dakota Insurance Department. US Alliance Life and Security Company - Montana is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the Montana Insurance Department. Statutory practices primarily differ from GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis.

The following table summarizes the statutory net income (loss) and statutory capital and surplus of US Alliance Life and Security Company and US Alliance Life and Security Company - Montana for the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | Statutory Capital and Surplus as of | Statutory Capital and Surplus as of |
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| US Alliance Life and Security Company | $7381689 | $8429028 |
| US Alliance Life and Security Company - Montana | 2138961 | 1915305 |

---

---

| | | |
|:---|:---|:---|
|  | Statutory Net Income for the years ended December 31, | Statutory Net Income for the years ended December 31, |
|  | 2025 | 2024 |
| US Alliance Life and Security Company | $(971348) | $756216 |
| US Alliance Life and Security Company - Montana | (60018) | 41121 |

---

Both entities are in compliance with regulatory capital requirements and are not subject to any regulatory action-level matters. The payment of dividends to US Alliance Corporation by US Alliance Life and Security Company is subject to limitations imposed by applicable insurance laws. For example, "extraordinary" dividends may not be paid without permission of the North Dakota Insurance Department. An "extraordinary" dividend is defined, in general, as any dividend or distribution of cash or other property whose fair market value, compared with that of other dividends or distributions made within the preceding 12 months, exceeds the greater of (i) 10% of the policyholders' surplus (total statutory capital stock and surplus) as of December 31 of the preceding year or (ii) the statutory net gain from operations excluding realized gains on investments) of the insurer for the 12 month period ending December 31 of the preceding year.

The payment of dividends to US Alliance Life and Security Company by US Alliance Life and Security Company – Montana is subject to similar limitations. No dividends were paid in 2025 or 2024.

---

| | |
|:---|:---|
| **Note 15.**  | **Commitments** |

---

The Company entered into a subscription agreement with Mutual Capital Investment Fund, LP on November 11, 2022. The agreement set forth a capital commitment of $2,000,000. As of December 31, 2025, the Company had funded $1,023,232 of this commitment. The commitment expires at the end of 2026.

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[**Table of Contents**](#toc)

**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 16.**  | **Restricted Stock Awards** |

---

Restricted stock awards ("RSA") to be granted are issued and measured at fair market value on the date of grant and become vested in yearly installments from the date of grant, subject to the recipient remaining in the Company's service on specified vesting dates. Vesting of restricted stock awards is based solely on time vesting. Stock-based compensation expense is recognized on a straight-line basis over the vesting period with a corresponding offset credited to additional paid-in-capital. Forfeitures are recognized as they occur.

A summary of the Company's non-vested restricted stock awards as of December 31, 2025 and changes for the year then ended is presented below:

---

| | | |
|:---|:---|:---|
|  |  | **Weighted** |
|  | **Restricted Stock** | **Average Grant**  |
|  | **Awards** | **Date Fair Value** |
| Non-vested restricted stock awards, Dec. 31, 2024 | **200000** | $1.00 |
| Awarded |  |  |
| Vested | **(40000)** | 1.00 |
| Forfeited | **-** |  |
| Non-vested restricted stock awards, Dec. 31, 2025 | **160000** | $1.00 |

---

During the year ended December 31, 2024, the Board granted RSAs under the 2024 Plan of 250,000 shares of common stock to the Company directors. The RSA shares to the Company's Board of Directors vest equally over each of the following 5 fiscal years through December 31, 2029. Subsequent to the RSA awards, Director Schmidt resigned from the board and forfeited her 50,000 shares.

RSA shares are measured at fair market value on the date of grant and stock-based compensation expense is recognized on a straight-line basis on a straight-line basis over the vesting period with a corresponding offset credited to additional paid-in-capital. For the years ended December 31, 2025 and 2024, the Company recognized stock-based compensation expense of $39,545 and $2,167.

As of December 31, 2025, there was $158,288 of unrecognized stock-based compensation expense related to the RSA shares to be recognized over the remaining period of 4 years, as follows:

---

| | |
|:---|:---|
| For the fiscal year ended December 31, |  |
| 2026 | $39545 |
| 2027 | $39545 |
| 2028 | $39653 |
| 2029 | $39545 |
| Total | **158288** |

---

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**US Alliance Corporation**

**Notes to Consolidated Financial Statements**

------

---

| | |
|:---|:---|
| **Note 17.**  | **Accumulated Other Comprehensive Income (Loss)** |

---

A summary of the Company's accumulated other comprehensive income (loss) is presented in the table below:

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | Total |
|  | Available |  | Accumulated |
|  | Available | LFPB | Other |
|  | for Sale | Discount | Comprehensive |
|  | Securities | Rate Changes | Income (Loss) |
| **Balance, December 31, 2023** | $**(2916372)** | $**-** | $**(2916372)** |
| Impact of adoption of long duration targeted improvements, net of tax |  | 2114541 | 2114541 |
| **Balance, January 1, 2024** | $**(2916372)** | $**2114541** | $**(801831)** |
| Current period other comprehensive income, net of tax | (213036) | 1146537 | 933501 |
| Reclassifications, net of tax | 39232 |  | 39232 |
| **Balance, December 31, 2024** | **(3090176)** | **3261078** | **170902** |
| Current period other comprehensive income, net of tax | 385952 | (538633) | (152681) |
| Reclassifications, net of tax | (62433) |  | (62433) |
| **Balance, December 31, 2025** | $**(2766657)** | $**2722445** | $**(44212)** |

---

---

| | |
|:---|:---|
| **Note 18.**  | **Subsequent Events** |

---

All of the effects of subsequent events that provide additional evidence about conditions that existed at the balance sheet date, including the estimates inherent in the process of preparing the consolidated financial statements, are recognized in the consolidated financial statements. The Company does not recognize subsequent events that provide evidence about conditions that did not exist at the balance sheet date but arose after, but before the consolidated financial statements are issued. In some cases, unrecognized subsequent events are disclosed to keep the consolidated financial statements from being misleading.

## Exhibit 2.4

**Exhibit 2.4**

![m01.jpg](m01.jpg)

## Exhibit 10.21

**Exhibit 10.21**

**Life Insurance and Annuity** 

**Reinsurance and Administration Agreement**

between

**Lewer Life Insurance LLIC** 

**Kansas City, Missouri**

**(hereinafter referred to as the** "**LLIC**"**)**

and

**US Alliance Life and Security Company**

**Bismarck, North Dakota**

**(hereinafter referred to as the** "**US Alliance**"**)**

Effective December 31, 2023

------

Reinsurance and Administration Agreement

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **<u>Page</u>** |
| **Article 1** | **PREAMBLE** | 4 |
|  | 1.1 Parties to the Agreement |  |
|  | 1.2 Compliance |  |
|  | 1.3 Governing Law |  |
|  | 1.4 Entire Agreement |  |
|  | 1.5 Modification or Amendment |  |
|  | 1.6 Severability |  |
|  | 1.7 Office of Foreign Assets Control |  |
| **Article 2** | **BASIS OF INSURANCE** | 6 |
| **Article 3** | **US ALLIANCE**'**S LIABILITY** | 7 |
| **Article 4** | **REINSURANCE PREMIUM** | 8 |
|  | 4.1 Reinsurance Premiums |  |
|  | 4.2 Premium Taxes |  |
| **Article 5** | **SETTLEMENT OF CLAIMS** | 9 |
|  | 5.1 US Alliance's Liability for Claims |  |
|  | 5.2 Extra Contractual Damages |  |
| **Article 6** | **ADMINISTRATION** | 10 |
|  | 6.1 Administration |  |
|  | 6.2 Record Keeping |  |
|  | 6.3 Administrative Account |  |
| **Article 7** | **CONSIDERATION** | 12 |
| **Article 8** | **INSOLVENCY** | 13 |
|  | 8.1 Definition of Insolvency |  |
|  | 8.2 Insolvency of LLIC |  |
| **Article 9** | **DISPUTE RESOLUTION** | 14 |
|  | 9.1 Negotiation |  |
|  | 9.2 Arbitration |  |
|  | 9.3 Waiver of Trial by Jury |  |
| **Article 10** | **CONFIDENTIALITY** | 17 |
| **Article 11** | **ERRORS AND OMISSIONS** | 18 |

---

*12/31/2023* *Page 2 of 25*

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Reinsurance and Administration Agreement

---

| | | |
|:---|:---|:---|
|  |  | **<u>Page</u>** |
| **Article 12** | **OFFSET** | 19 |
| **Article 13** | **DAC TAX** | 20 |
| **Article 14** | **COMMENCEMENT AND TERMINATION** | 21 |
| **Article 15** | **ASSIGNMENT, NOVATION, OR TRANSFER** | 22 |
| **Article 16** | **EXECUTION** | 23 |
| **Schedule A** | **REINSURANCE COVERAGE** | 24 |
| **Schedule B** | **REPORTS** | 25 |
| **Schedule C** | **ADMINISTRATION AGREEMENT** |  |
| **Schedule D** | **MUTUAL CONFIDENTIAL DISCLOSURE AGREEMENT** |  |

---

*12/31/2023* *Page 3 of 25*

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Reinsurance and Administration Agreement

**Article 1<br> PREAMBLE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** **Parties to the Agreement** 

This is an agreement for indemnity reinsurance (the "Agreement") solely between Lewer Life Insurance Company, of Missouri (the "LLIC") and US Alliance Life and Security Company, of North Dakota (the "US Alliance"), each, a "Party" and collectively, the "Parties".

This Agreement shall be binding upon LLIC and US Alliance and their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** **Compliance** 

LLIC represents that, to the best of its knowledge, it is in compliance with all state and federal laws applicable to the business reinsured under this Agreement. In the event that LLIC is found to be in non-compliance with any law material to this Agreement, this Agreement shall remain in effect and LLIC shall indemnify US Alliance for any direct loss US Alliance suffers as a result of the non-compliance, and shall seek to remedy the non-compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3** **Governing Law** 

This Agreement shall be construed in accordance with the laws of the State of Kansas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4** **Entire Agreement** 

This Agreement shall constitute the entire agreement between the Parties with respect to the policies listed in Schedule A and there are no understandings between the Parties with respect thereto, other than as expressed in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.5** **Modification or Amendment** 

No modification or amendment of this Agreement shall be effective unless made in writing and signed by duly authorized representatives or agents of both Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.6** **Severability** 

If any term or provision of this Agreement is found by a court of competent jurisdiction to be invalid, illegal, or unenforceable in that jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.7** **Office of Foreign Assets Control (OFAC)** 

The Parties represent that they are using, and shall use, commercially reasonable efforts to comply with all applicable economic sanction laws. Neither Party shall be deemed to provide cover or be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that Party to any sanction, prohibition or restriction under the trade or economic sanctions, laws or regulations of the United States of America (the "Laws"). Neither Party shall be required to take any action under this Agreement that would violate the Laws, including, but not limited to, making any payments in violation of the Laws.

*12/31/2023* *Page 4 of 25*

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Reinsurance and Administration Agreement

Should either Party discover or otherwise become aware that a reinsurance transaction has been entered into or a payment (including beneficiary payments) has been made in violation of the Laws, the Party who first becomes aware of said violation shall notify the other Party, and the Parties shall cooperate to take all necessary corrective actions. The Parties agree that any reinsurance transaction discovered to have been made in violation of the Laws shall be null, void and of no effect from its inception, as if that reinsurance transaction had never been entered into. In such event, each Party shall be restored to the position it would have occupied if the violation had not occurred, including the return of any payments received, unless prohibited by law.

*12/31/2023* *Page 5 of 25*

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Reinsurance and Administration Agreement

**Article 2**

**BASIS OF INSURANCE**

On or after 12:01 A.M. Eastern Standard Time on the Effective Date of this Agreement, LLIC shall cede and US Alliance shall automatically accept reinsurance of, and administrative responsibility for, the policies listed in Schedule A (the "Policies").

*12/31/2023* *Page 6 of 25*

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Reinsurance and Administration Agreement

**Article 3**

**US ALLIANCE**'**S LIABILITY**

US Alliance's liability shall begin and end with the liability of LLIC. Reinsurance shall be inforce and binding on US Alliance as long as, where applicable, the reinsurance premiums continue to be paid when due while the insurance remains inforce.

US Alliance's liability shall be determined in accordance with LLIC policies issued in connection with the coverage giving rise to reinsurance. US Alliance acknowledges that LLIC has provided its retention schedule(s), underwriting guidelines, issue rules, premium rates, policy forms and claims guidelines necessary for US Alliance's reinsurance and administration of the Policies.

*12/31/2023* *Page 7 of 25*

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Reinsurance and Administration Agreement

**Article 4**

**REINSURANCE PREMIUM**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **Reinsurance Premiums** 

US Alliance shall be entitled to 100% of all premiums due LLIC and collected subsequent to the Effective Date under the terms of the Policies, including modal loadings and policy fees, less premium taxes. Reinsurance premiums are on the same mode as direct premiums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2** **Premium Taxes** 

US Alliance shall pay directly, or reimburse LLIC for, any premium taxes with respect to the Policies that first become due to state or local taxing authorities on or after the Effective Date. US Alliance

*12/31/2023* *Page 8 of 25*

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Reinsurance and Administration Agreement

**Article 5**

**SETTLEMENT OF CLAIMS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1** **US Alliance** ' **s Liability for Claims** 

US Alliance shall pay or reimburse LLIC for all Claims incurred on or after the Effective Date in accordance with the terms and conditions of the Reinsured Policies and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2** **Extra Contractual Damages** 

US Alliance shall not participate in punitive or compensatory damages or statutory penalties that are awarded against LLIC as a result of an act, omission or course of conduct committed by LLIC, its agents, or representatives in connection with claims covered under this Agreement.

LLIC shall not participate in punitive or compensatory damages or statutory penalties that are awarded against US Alliance as a result of an act, omission or course of conduct committed by US Alliance its agents, or representatives in connection with claims covered under this Agreement.

For purposes of this Article, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;■ "Punitive Damages" are those damages awarded as a penalty, the amount of which is neither governed nor fixed by statute.

&nbsp;&nbsp;&nbsp;&nbsp;■ "Compensatory Damages" are those amounts awarded to compensate for the actual damages sustained, and are not awarded as a penalty nor fixed in amount by statute.

&nbsp;&nbsp;&nbsp;&nbsp;■ "Statutory penalties" are those amounts awarded as a penalty, but are fixed in amount by statute.

*12/31/2023* *Page 9 of 25*

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Reinsurance and Administration Agreement

**Article 6** 

**ADMINISTRATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1** **Administration** 

US Alliance shall act as Administrator for the Policies on behalf of LLIC.

US Alliance shall perform all appropriate administrative, claims and other services customarily performed by a direct company in the life insurance industry, including reporting under Article 6, as well as duties customarily performed by an assuming company in the reinsurance industry. Such services shall include all required and necessary policyholder service, premium billing and collection, commission processing, claim adjudication, insurance accounting, valuation of statutory reserves and other liabilities, and valuation of assets (the "Administrative Services").

In performing the Administrative Services, US Alliance shall use reasonable care, comply with all applicable laws, and use all reasonable efforts to preserve the value of the Policies.

Specifically with regard to administering the Voya Block (as identified in Schedule A), US Alliance shall comply with all duties, obligations, and responsibilities required of Presidential in the Administration Agreement attached hereto as Schedule C, as if US Alliance stepped into the shoes of Presidential.

US Alliance shall not outsource any Administrative Services or claims administration with respect to the Policies without the written consent of LLIC and such consent shall not be unreasonably withheld. In the event LLIC consents to US Alliance outsourcing any Administrative Services or claims administration, prior to the commencement of such outsourcing, US Alliance shall ensure that it secures the right to audit and inspect the party performing such outsourced services.

All monetary considerations for such Administrative Services are explicitly reflected in the Reinsurance Premiums and Initial Consideration with no further monetary considerations owed to LLIC or US Alliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2** **Record Keeping** 

US Alliance shall maintain all records and correspondence relating to its performance of the Administrative Services in accordance with industry standards of insurance record keeping. In addition, such records shall be made available for examination, audit, and inspection by the department of insurance of any state within whose jurisdiction LLIC or US Alliance operates. US Alliance further agrees that in the event of the termination of this Agreement, any such records in US Alliance's possession shall promptly be duplicated and forwarded to the LLIC, unless otherwise instructed.

US Alliance shall establish and maintain an adequate system of internal controls and procedures for financial reporting relating to the Policies, including associated documentation and shall make such documentation available for examination and inspection by LLIC.

*12/31/2023* *Page 10 of 25*

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Reinsurance and Administration Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3** **Administrative Account** 

US Alliance shall maintain, at its own expense, a FDIC-insured checking account with sufficient funds in the name of LLIC and any other direct writers associated with the Policies for the purpose of facilitating US Alliance's performance of Administrative Services, including receiving premium and paying claims ("Administrative Account"). LLIC shall cooperate US Alliance's establishment and maintenance of said Administrative Account.

*12/31/2023* *Page 11 of 25*

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Reinsurance and Administration Agreement

**Article 7** 

**CONSIDERATION**

In consideration for US Alliance assuming full reinsurance and administrative responsibilities for the Policies as set forth herein, on the Effective Date, LLIC shall pay US Alliance the following amounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. An amount equal to the estimated statutory reserves as of 12/31/2023 calculated immediately prior to the Effective Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A one-time lump-sum payment of Ninety-Four Thousand Dollars ($94,000).

On or before January 31, 2024, the Parties will calculate the actual statutory reserves as of December 31, 2023, and a true-up payment will be made between the Parties on or before February 9, 2024, to bring the estimated statutory reserve payment in line with the actual statutory reserve amount.

*12/31/2023* *Page 12 of 25*

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Reinsurance and Administration Agreement

**Article 8** 

**INSOLVENCY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1** **Definition of Insolvency** 

A Party to this Agreement shall be deemed to be insolvent when it:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. applies for or consents to the appointment of a receiver, rehabilitator, conservator, liquidator, or statutory successor of its properties or assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. is adjudicated as bankrupt or insolvent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. files or consents to the filing of a petition in bankruptcy, seeks reorganization or an arrangement with creditors or takes advantage of any bankruptcy, dissolution, liquidation or similar law or statute; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. becomes the subject of an order to rehabilitate or an order to liquidate as defined by the insurance code of the jurisdiction of the Party's domicile.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2** **Insolvency of LLIC** 

In the event of insolvency of LLIC:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. all payments normally made to it by US Alliance shall be payable directly to the liquidator, receiver or statutory successor of LLIC on the basis of the liability of LLIC under the policies reinsured without diminution because of insolvency of LLIC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. the liquidator, receiver or statutory successor shall give the Reinsurer written notice of the pendency of a claim on a policy reinsured within a reasonable time after the claim is filed in the solvency proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Alliance may investigate a claim, and in a proceeding where the claim is to be adjudicated, US Alliance may, at US Alliance's own expense, interpose in the name of LLIC (its liquidator, receiver or statutory successor) any defense or defenses which US Alliance may deem available to LLIC or its liquidator, receiver or statutory successor. Any expense thus incurred by US Alliance shall be chargeable, subject to court approval, against LLIC as part of the expense of liquidation to the extent of a proportionate share of the amount of reinsurance that may accrue to LLIC solely as a result of the defense undertaken by US Alliance.

*12/31/2023* *Page 13 of 25*

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Reinsurance and Administration Agreement

**Article 9** 

**DISPUTE RESOLUTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1** **Negotiation** 

Within fifteen (15) calendar days after US Alliance or LLIC has given the other Party written notification of a specific dispute arising out of or relating to this Agreement, each Party will appoint a designated officer of its company to attempt to resolve such dispute. The officers will meet at a mutually agreeable location as soon as reasonably possible, and in no event more than fifteen (15) calendar days after both Parties designated their respective officer representatives, and as often as reasonably necessary, to gather and furnish the other with all appropriate and relevant information concerning the dispute. The officers will discuss the matter in dispute and will negotiate in good faith without the necessity of formal arbitration proceedings. During the negotiation process, all reasonable requests made by one officer to the other for information will be honored. The specific format for such discussions will be decided by the designated officers.

If the officers cannot resolve the dispute within thirty (30) calendar days of their first meeting, the dispute will be submitted to formal arbitration pursuant to Article 9.2, unless the Parties agree in writing to extend the negotiation period for an additional thirty (30) calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2** **Arbitration** 

The Parties intend that the customs and practices of the insurance and reinsurance industry be given full effect in the operation and interpretation of this Agreement. The Parties agree to act in all matters with the utmost good faith. However, if the Parties cannot mutually resolve a dispute that arises out of or relates to this Agreement, including, without limitation, the rights and obligations arising under, formation, interpretation, and/or validity of this Agreement, and the dispute cannot be resolved through the negotiation process set forth in Article 9.1, then, the dispute shall be submitted to arbitration in accordance with the provisions of this Article 9.2.

The Party initiating arbitration shall notify the other Party by certified mail of its desire to arbitrate, stating the nature of the dispute and the remedy sought. Each Party shall select an arbitrator within thirty (30) days of the written request for arbitration. If either Party refuses or neglects to appoint an arbitrator within thirty (30) days of the written request for arbitration, the other Party may appoint the second arbitrator. Within fifteen (15) calendar days of the appointment of the second arbitrator, the two arbitrators shall select an umpire. If the two arbitrators fail to agree on the selection of the umpire within fifteen (15) calendar days of the appointment of the second arbitrator, each arbitrator shall submit to the other a list of three umpire candidates, each arbitrator shall select one name from the list submitted by the other and the umpire shall be selected from the two names chosen by a lot drawing procedure to be agreed upon by the arbitrators.

The arbitrators and umpire shall all be disinterested, ARIAS-certified arbitrators, who are current or former executive officers of a life insurance or life reinsurance company (other than the Parties to this Agreement, their Affiliates or subsidiaries) and familiar with the prevailing customs and practices for reinsurance in the life insurance and life reinsurance industry in the United States.

*12/31/2023* *Page 14 of 25*

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Reinsurance and Administration Agreement

Each arbitration hearing under this Agreement will be held on the dates set by the umpire in Topeka, Kansas or other mutually agreed upon location. As soon as possible, the arbitrator shall establish arbitration procedures as warranted by the facts and issues of the particular case. The arbitration and this Article 9.2 shall be governed by Title 9 (Arbitration) of the United States Code.

The arbitration panel shall interpret this Agreement as an honorable engagement rather than merely as a legal obligation and shall make its decision considering the terms and conditions of this Agreement and the customs and practices of the insurance and reinsurance industries with a view to effecting the general purpose of the Agreement. The arbitration panel is released from judicial formalities and shall not be bound by strict interpretation of the law.

The decision of a majority of the arbitration panel shall be final and binding on both Parties, except to the extent otherwise provided in the Federal Arbitration Act. The arbitration panel shall render its award in writing. Judgment upon the award may be entered in any court having jurisdiction, pursuant to the Federal Arbitration Act.

The Parties agree that the federal courts in either Party's state of domicile have jurisdiction to hear any matter relating to compelling arbitration or enforcing the judgment of an arbitral panel, and the Parties hereby consent to such jurisdiction. Each Party hereby waives, to the fullest extent permitted by law, any objection it may have to such venue, or any claim that a proceeding brought in federal court in either Party's state of domicile has been brought in an inconvenient forum. In addition, the Parties hereby consent to service of process out of such courts at the addresses set forth below:

<u>if to LLIC:</u>

Lewer Life Insurance Company

9900 W. 109<sup>th</sup> Street, Suite 200

Overland Park, KS 66210

Attention: President

Phone: 800-821-7715

Email: <u>mlewer@lewer.com</u>; <u>nlewer@lewer.com</u>

<u>if to US Alliance:</u>

US Alliance Life and Security Company

1303 SW First American Pl, Suite 200

Topeka, KS 66604

Attention: Jack H. Brier, Chairman and CEO

Phone: 785-228-0200

*12/31/2023* *Page 15 of 25*

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Reinsurance and Administration Agreement

Unless the arbitration panel decides otherwise, each Party will bear the expense of its own arbitration activities, including the fees and expenses of its own arbitrator, and any outside attorney and witness fees. The Parties will jointly bear an equal share of the fees and expenses of the umpire and of the other expenses of the arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3** **Waiver of Trial by Jury** 

US Alliance and LLIC hereby waive any and all rights to trial by jury in any matter arising out of or relating to this Agreement.

*12/31/2023* *Page 16 of 25*

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Reinsurance and Administration Agreement

**Article 10** 

**CONFIDENTIALITY**

The Parties previously entered into a Mutual Confidential Disclosure Agreement ("Confidentiality Agreement"), a copy of which is attached hereto as Schedule D. The Parties agree that the terms of that agreement shall be incorporated herein and made a part hereof by reference, as if set forth in full. The Parties further agree that in incorporating that Confidentiality Agreement herein, they agree and intend that the term of the confidentiality obligations shall continue for three years beyond the termination or expiration of this Agreement.

*12/31/2023* *Page 17 of 25*

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Reinsurance and Administration Agreement

**Article 11** 

**ERRORS AND OMISSIONS**

If through unintentional error, oversight, omission, or misunderstanding (collectively referred to as "errors"), US Alliance or LLIC fails to comply with the terms of this Agreement and if, upon discovery of the error by either Party, the other Party is promptly notified, each Party shall be restored to the position it would have occupied if the error had not occurred, including interest.

If it is not possible to restore each Party to the position it would have occupied if the error had not occurred, the Parties shall endeavor in good faith to promptly resolve the situation in a manner that is fair and reasonable, and most closely approximates the intent of the Parties as evidenced by this Agreement.

However, US Alliance shall not provide reinsurance for policies that do not satisfy the parameters of this Agreement. Further neither Party shall be responsible for negligent or deliberate acts of other. If either Party discovers that LLIC has failed to cede reinsurance as provided in this Agreement, or failed to comply with its reporting requirements, US Alliance may require LLIC to audit its records for similar errors and to take actions necessary to avoid similar errors in the future.

*12/31/2023* *Page 18 of 25*

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Reinsurance and Administration Agreement

**Article 12** 

**OFFSET**

Any debts or credits, in favor of or against either US Alliance or LLIC with respect to this Agreement, are deemed mutual debts or credits and shall be offset and only the balance shall be allowed or paid.

The right of offset shall not be affected or diminished because of the insolvency of the other Party.

*12/31/2023* *Page 19 of 25*

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Reinsurance and Administration Agreement

**Article 13** 

**DAC TAX**

The Parties to this Agreement agree to the following provisions pursuant to Section 1.848-2(g)(8) of the Income Tax Regulations effective December 29, 1992, under Section 848 of the Internal Revenue Code of 1986, as amended:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The term "Party" shall refer to either LLIC or US Alliance as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The terms used in this Article are defined by reference to Regulation Section 1.848-2 in effect as of December 29, 1992.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Party with the net positive consideration for this Agreement for each taxable year shall capitalize specified policy acquisition expense with respect to this Agreement without regard to the general deductions limitation of Section 848(c)(1).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. LLIC and US Alliance agree to exchange information pertaining to the amount of the net consideration under this Agreement each year to ensure consistency or as otherwise required by the Internal Revenue Service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. LLIC shall submit a schedule to US Alliance by June 1 of each year of its calculation of the net consideration for the preceding calendar year. This schedule of calculations shall be accompanied by a statement signed by an officer of LLIC stating that LLIC shall report such net consideration in its tax return for the preceding calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. US Alliance may contest such calculation by providing an alternative calculation to LLIC in writing within thirty (30) days of US Alliance's receipt of LLIC's calculation. If US Alliance does not so notify LLIC, US Alliance shall report the net consideration as determined by LLIC in US Alliance's tax return for the previous calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. If US Alliance contests LLIC's calculation of the net consideration, the Parties shall act in good faith to reach an agreement as to the correct amount within thirty (30) days of the date US Alliance submits its alternative calculation. If LLIC and US Alliance reach agreement on an amount of net consideration, each Party shall report such amount in their respective tax returns for the previous calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Both LLIC and US Alliance represent and warrant that they are subject to United States taxation under either Subchapter L or Subpart F of Part III of Subchapter N of the Internal Revenue Code of 1986, as amended.

*12/31/2023* *Page 20 of 25*

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Reinsurance and Administration Agreement

**Article 14** 

**COMMENCEMENT AND TERMINATION**

This Agreement shall be effective for the period beginning at 12:01a.m. Central Standard Time December 31, 2023 (the "Effective Date") and is indefinite as to its duration. It is a continuous agreement that will remain in force for the entire duration of any business ceded as listed in Schedule A.1.

*12/31/2023* *Page 21 of 25*

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Reinsurance and Administration Agreement

**Article 15**

**ASSIGNMENT, NOVATION OR TRANSFER**

This Agreement shall be binding upon and inure to the benefit of LLIC and US Alliance and their respective successors and assigns; provided, however, that this Agreement may not be assigned, novated or transferred, including any attempted transfer of rights and/or obligations under any U.S. or foreign statute, legislation or jurisprudence, by either LLIC or US Alliance, or as the result of the action(s) of a parent company or an affiliated entity of either, without the prior written consent of the other. In the event of any assignment, novation, or transfer, the assignor, novator, or transferor shall remain liable under this Agreement, and further guarantees the performance of all obligations of any assignee, novatee, or transferee under this Agreement. Notwithstanding the foregoing, US Alliance will not unreasonably withhold consent for LLIC to assign this Agreement to an insurance entity controlling, controlled by, or under common control with LLIC.

*12/31/2023* *Page 22 of 25*

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Reinsurance and Administration Agreement

**Article 16** 

**EXECUTION**

This Agreement is effective as of December 31, 2023 and applies to eligible policies listed in Schedule A.1. This Agreement has been made in duplicate and is hereby executed by both Parties.

Unless otherwise agreed to in writing, this Agreement must be fully executed by both Parties within sixty (60) days of each other in order for this Agreement to become effective.

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| | | | |
|:---|:---|:---|:---|
| LEWER LIFE INSURANCE COMPANY | LEWER LIFE INSURANCE COMPANY | US ALLIANCE LIFE AND SECURITY COMPANY | US ALLIANCE LIFE AND SECURITY COMPANY |
| By: | /s/ Scott Mylin | By: | /s/ Jeff Brown |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(signature) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(signature) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(signature) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(signature) |
| &nbsp;&nbsp;&nbsp;Scott Mylin | &nbsp;&nbsp;&nbsp;Scott Mylin | &nbsp;&nbsp;&nbsp;Jeff Brown | &nbsp;&nbsp;&nbsp;Jeff Brown |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(print or type name) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(print or type name) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(print or type name) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(print or type name) |
| Title: | VP of Finance and Technology | Title: | EVP & COO |
| Date: | Dec 22, 2023 | Date: | Dec 22, 2023 |
| Place: | Overland Park, KS | Place: | Topeka, KS |

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*12/31/2023* *Page 23 of 25*

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Reinsurance and Administration Agreement

**Schedule A** 

**REINSURANCE COVERAGE**

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| | |
|:---|:---|
| **A.1** | **Plans Reinsured** |

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| | | |
|:---|:---|:---|
| **Block** | **Plans Covered** | **Policy Listing** |
| Voya | non-qualified flexible premium annuities, qualified flexible premium annuities, whole life policies and interest and income life policies | See attached Exhibit 1 |
| Lewer | non-qualified flexible premium annuities, qualified flexible premium annuities, whole life policies and interest and income life policies. | See attached Exhibit 2 |

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| | |
|:---|:---|
| **A.2** | **US Alliance's Liability** |

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With respect to the policies reinsured, US Alliance agrees to accept its share of the liability arising from coverages provided under such policies. The liability of US Alliance shall be limited to a fifty percent (50%) Quota Share of all benefits covered under the Voya block of reinsured policy forms and riders and one hundred percent (100%) of all benefits covered under the Lewer block of reinsured policy forms and riders.

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| | |
|:---|:---|
| **A.3** | **LLIC's Retention** |

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LLIC shall retain none (0%) of the total original liability arising from the issued coverages.

*12/31/2023* *Page 24 of 25*

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Reinsurance and Administration Agreement

**Schedule B** 

**REPORTS**

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| | |
|:---|:---|
| **B.1** | **Monthly Reporting** |

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US Alliance shall provide, on or before the second business day after month end, the following information by book of business:

Bank reconciliation <br> Trial balance summary <br> Trial balance detail with transactions

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| | |
|:---|:---|
| **B.2** | **Quarterly Reporting** |

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On a quarterly basis, US Alliance shall provide financial data to LLIC by Agreement number and policy form number series, both on 100% and ceded bases. US Alliance shall report the credits and adjustments, including reserve credit, resulting from the policies reinsured under this Agreement that are reflected in its statutory financial statements, and also for each calendar year for U.S. federal income tax reporting.

US Alliance shall report statutory reinsurance credits for:

&nbsp;&nbsp;&nbsp;&nbsp;■ active life reserves;

&nbsp;&nbsp;&nbsp;&nbsp;■ IBNR;

&nbsp;&nbsp;&nbsp;&nbsp;■ other.

US Alliance shall report in force data by policy form as follows:

&nbsp;&nbsp;&nbsp;&nbsp;■ number of individual policies in-force calendar end-of quarter;

&nbsp;&nbsp;&nbsp;&nbsp;■ number of individual policies issued calendar year-to-date;

&nbsp;&nbsp;&nbsp;&nbsp;■ annualized premium in-force calendar end-of-quarter;

&nbsp;&nbsp;&nbsp;&nbsp;■ annualized premium of new business issued calendar year-to-date;

&nbsp;&nbsp;&nbsp;&nbsp;■ number of new claims reported calendar year-to-date;

&nbsp;&nbsp;&nbsp;&nbsp;■ number of pending claims.

On or before the third business day after the end of each quarter, US Alliance shall provide reporting, by block, of the reserves, due, deferred, and advanced premiums.

On or before the 15<sup>th</sup> day after the end of each quarter, US Alliance shall provide notification, by block, of federal and state tax withholding on surrenders, if applicable.

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| | |
|:---|:---|
| **B.3** | **Annual Reporting** |

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US Alliance shall provide LLIC the following reporting on an annual basis, by bock, according to the due date set forth in the table below:

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| | |
|:---|:---|
| **<u>Reporting Requirement</u>** | **<u>Due Date</u>** |
| Exhibit of life | January 25th After Year End |
| Policy exhibit by state | January 25th After Year End |
| Benefits by state | January 25th After Year End |
| Fed tax reporting: 1099R | January 15th After Year End |
| Fed tax reporting: 5498 | May 15th After Year End |

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*12/31/2023* *Page 25 of 25*

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ADMINISTRATION AGREEMENT

THIS AGREEMENT is entered into this / *'t* day of *0c.r,p/31E'4,* 1981, by and between NORTHERN LIFE INSURANCE COMPANY (hereinafter "Northern") and PRESIDENTIAL LIFE INSlJRANCE COMPANY OF AMERICA (hereinafter "Presidential").

<u>RECITALS</u>

1. Northern is a life insurance company domiciled in the state of Washington. Presidential is a life insurance company domiciled in the state of Oklahoma.

2. Presidential has expertise· in the administration of life insurance products, and Northern des.ires to make use of Presidential's expertise.

3. Simultaneous with the execution of this Agreement, Northern and Presidential have entered into reinsurance agree-ments covering certain policies to be underwritten by Northern. It is the mutual desire of the parties that Presidential act as Northern's administrative agent to administer all aspects of the insurance subject to said reinsurance agreements.

NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the parties hereby agree as follows:

1. <u>APPOINTMENT,</u> Northern hereby appoints Presidential as its administrative agent to process applications, underwrite and bind risks in accordance with mutually agreed upon underwriting rules, issue policies, bill and c.ollect premiums, do policyholder service, maintain policy files and EDP information, process claim payments under Northern's direction, and in all respects admin-ister Northern business subject to this Agreement. Presidential accepts such appointment and agrees to establish policies and systems acceptable to Northern for administration of such busi-ness and to comply with such policies and administer such busi-ness on as high a standard as is applicable to Northern's self-administered business.

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2. <u>AUTHORITY OF AGENT.</u> Presidential's relationship with Northern shall be that of an independent contractor, and nothing contained herein shall be construed as creating the relationship of employer and employee between the parties or any of the offi-cers, employees, or agents of either. This. Agreement is a ser-vice contract and performance hereunder may not be subcontracted or assigned without the prior written approval of Northern, which approval will not be unreasonably withheld or delayed, and any subcontractor or assignee approved by Northern shall be bound by all of the terms contained herein. Provided, however, Presiden-tial may, without Northern's prior approval, assign or subcon-tract its duties hereunder to any entity controlling, controlled by, or under common control with Presidential. Presidential shall not have authority to (a) file policies on behalf of Northern, (b) in any manner contact state insurance commissioners on Northern's behalf and all inquiries shall be directed to Northern's home office, or (c) bind Northern to any contract or agreement other than to individual policies which are subject to this Agreement and only to the extent specifically authorized hereunder. Without limiting the generality of the foregoing, it is understood that this Agreement does not vest in Presidential any authority for or on behalf of Northern to incur any debts, modify or discharge contracts, extend the time for paying pre-miums, bind Northern by any statement, promise, or representa-tion, waive forfeitures or any of Northern's rights or customary requirements, or receive any monies due or to become due Northern except in strict accordance with the terms hereof..

<sup>3.</sup> <u>PRODUCTS.</u> The products which are subject to adminis-tration pursuant to the terms of this agreement are as follows: Individual deferred retirement annui-cy (T-128); F.P.A. {T-129); Decreasing whole life (NL:8078); Retireme!).t. Income (NL:8096). From time to time Presidential and Northern may jointly develop additional products which shall automatically become subject to the terms and conditions of this Agreement.

4. <u>UNDERWRITING.</u> At Northern's expense Northern and Presidential shall jointly perform the underwriting function. In the first quarter of 1982, Presidential and Northern shall meet and shall mutually agree with respect to the division of author-ity and responsibility for the performance of the underwriting function and division of expense allowances. Underwriting guidelines hereunder shall be established by written agreement between the parties from time to time and may be changed by written agreement signed by each party. Presidential shall provide Northern such information in such detail and at such frequency as Northern shall reasonably require to enable Northern to monitor Presidential underwriting.

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Both Northern and Presidential recognize that favorable mortality and persistency are elements essential for the mutual benefit of the parties. Therefore, the parties shall meet from time to time to discuss mortality and persistency results and shall take such action as they mutually deem necessary.

5. <u>POLICYHOLDERS.</u> Presidential shall have the respon-sibility for performing policyholder services- for policies covered hereunder including but not limited to the following:

(A) Initiate, pay, and account for refunds of premium, overpayments of premiums, and -other premium adjustments; policyholder loans; surrender paymentE;..;, .and death benefits; and

(B) Handle reissues, conversions, policy changes, reinstatements, and terminations according to agreed upon procedures.

Northern shall at its own expense investigate, process, and decide to pay or contest all claims.

6, <u>MAINTENANCE OF RECORDS, INSPECTION, AND AUDIT.</u> Presi-dential shall prepare and maintain all records with respect to the administration of the business including policy files and electronic data processing files in accordance with systems and procedures established by Presidential and approved by Northern. All records shall remain the property of Northern. All records with respect to the administration of the business shall be physically segregated from the records of Presidential and main-tained with such security and in such manner as shall be approved by Northern. All such records shall be subject to inspection by Northern during regular business hours at Northern's request. Northern's auditors shall have access to· such records and to such other business records of Presidential as such auditors shall reasonably require to enable Northern's auditors to verify the accuracy of such records. The expense of an annual audit of the business administered by Presidential pursuant to-this Agreement (including recommended followups) by Northern's independent auditors shall be paid as follows: the first $10,000 by Northern, thereafter in equal shares by the parties. All records maintained by Presidential by means of electf:onic data processing equipment shall be duplicated and a duplicate copy of the master files shall be provided Northern for safekeeping. The parties agree that any computer software and programs used to carry out the purposes of this Agreement shall remain the property of the party which developed or created such software; provided, however, that during the term of this Agreement and after its termination each party agrees to provide the other with access to the information and records contained therein and the use of such software for a reasonable time thereafter and at a reasonable cost. This provision shall not be applicable to any proprietary software belonging to a third party.

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7. <u>ACCOUNTING.</u> A trust account shall be established and maintained in Northern Is name which authorizes Presidential to deposit receipts and make disbursements in accordance with this Agreement. All premiums collected by Presidential will be deposited in this account and all disbursements from it will be made by Presidential including, but not limited to, death and surrender benefits and monies due Presidential in accordance with the aforementioned reinsurance agreements, and due Presidential hereunder in accordance with Schedule A. Procedures for the collection and deposit of premiums to the account and withdrawals from the account shall be agreed to and acceptable to Northern. All funds in the account shall remain the proper-ty of Northern until distributed in accordance with agreed upon procedures.

8, <u>FINANCIAL REPORTING.</u> Presidential shall provide North-ern with various reports in such detail, covering such matters, and with such frequency as Northern may re_a,sonably require from time to time in order to enable it to monitor the business and to prepare both its internal financial statements and its reports to reinsurers. Payment and information shall be provided on a monthly cycle on estimated results with quarterly accounting. The quarterly accounting shall be provided on a best efforts basis within ten (10) working days following the end of each calendar quarter.

9. <u>COMPENSATION,</u> In consideration for Presidential's services hereunder, Northern shall pay to Presidential the allow-ances and reimbursed expenses listed on Schedule A hereto.

10, <u>TERM OF AGREEMENT.</u>

A. <u>Commencement.</u>

This Agreement shall be retroactive to May 1, 1979.

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B. <u>Continuation.</u>

The initial term of this Agreement shall be seven (7) years from the commencement date and it shall be renewable for five (5) year terms thereafter by the mutual agreement of the parties, subject to termination according to section eleven (11). Northern and Presidential agree that after the expiration of this Agreement, Presidential shall continue to perform the adminis-trative services specified hereunder as long as policies subject to the reinsurance agreements between Presidential and Northern are in force. In the event termination is pursuant to section eleven (11), Northern may, at its option, assume the administra-tive responsibilities performed by Presidential.

11. <u>TERMINATION.</u> Northern may terminate this Agreement by written notice if Presidential materially breaches any of its contractual obligations hereunder. Northern may terminate this Agreement without notice (1) in the event of Presidential's bankruptcy, receivership, rehabilitation, or assignment of all or a material part of its assets for the benefit of creditors, or (2) if Presidential or any officer or director of Presidential or of its affiliated corporations is found to have misappropriated Northern's funds as determined by an audit by an independent certified public accountant or is found by a court of competent jurisdiction to have committed a fraud with respect to its contractual obligations hereunder.

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Upon termination under this section, all property in the possession of Presidential belonging to Northern shall be immedi-ately delivered to Northern and Presidential will in good faith exercise its best efforts to assist Northern in the orderly assumption of the administration of the policies subject to this Agreement.

12. <u>ARBITRATION.</u> All disputes and differences between Northern and Presidential which cannot be settled amicably will be decided by arbitration. The arbitrators will regard this Agreement from the point of view of practical business and equity rather than from the letter of the law and otherwise will be empowered to interpret this Agreement as they see fit.

The court of arbitration, which will b.e held at a location agreed on by a majority of the arbitrators, will consist of three arbitrators who are officers of life insurance companies other than Northern and Presidential or any affiliate of either. One arbitrator will be appointed by Northern (at its expense), another by Presidential (at its expense) and the third by the two arbitrators named by Northern and Presidential (the expense to be shared equally). If either of these two arbitrators should decline to participate in the appointment of the third arbitrator or if these two arbitrators should be unable to agree upon the choice of a third arbitrator, the appointment will be made by the then President of the American Council of Life Insurance.

The court of arbitration will not be bound by any rules of law. They will decide by a majority of votes and there will be no appeal from their written decision. The cost of arbitration, not including the fees of the arbitrators, will be borne equally by the parties.

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The submission of disputes and differences to arbitration in accordance with the provisions of this •article will be a condi-tion precedent to the institution of a legal proceeding by either party.

13. <u>MISCELLANEOUS.</u>

A. <u>Governing Law.</u>

This Agreement shall be governed by and interpreted under the laws of the State of Washington.

B. <u>Entire Agreement.</u>

This Agreement constitutes the entire ,.f,.greement between the parties and any modification or amendment of this Agreement must be in writing and duly executed by the parties hereto.

c. <u>counterparts.</u>

This Agreement may be executed in any number of counter-parts, each of which when executed shall be an original, but all such counterparts shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

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| | | |
|:---|:---|:---|
|  | NORTHERN LIFE INSURANCE COMPANY  | NORTHERN LIFE INSURANCE COMPANY  |
|  | By:  | *........,_6, ,J.l--'----'L-tf*✓*.---"7=*��*=-=---* |
| ![thompson01.jpg](thompson01.jpg) |  |  |

---

------

---

| | |
|:---|:---|
|  | PRESIDENTIAL LIFE INSURANCE COMPANY OF AMERICA |
|  | ![ex_933340img002.jpg](ex_933340img002.jpg) |
| ![ex_933340img003.jpg](ex_933340img003.jpg) |  |

---

------

<u>Schedule A</u> 

<u>Administrative Allowances</u>

<u>Paid to Presidential at the End of</u>

<u>Each Quarter</u>

&nbsp;&nbsp;&nbsp;&nbsp;I) <u>Flexible Premium Annuity</u> (T-128 & T-129)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) <u>First Year Business</u> 

1) Four percent~(4%) of [(a)-(b)J where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Is the annualized, first year reinsured premium for all policies issued .during the quarter,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Is the annualized, first year reinsured premium for all policies not-taken during the quarter,

---

| | | |
|:---|:---|:---|
| Plus | 2)  | Twenty-two dollars and fifty cents ($22.50) for each policy that is issued during the quarter less twenty-two dollars and fifty cents ($22.50) for each policy not-taken during the quarter. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) Renewal Business

Seven dollars and fifty cents ($7.50) for each policy at each anniversary the policy is inforce, Allowance will be paid at the end of the calendar quarter for all policies having anniversaries in that quarter.<br>

------

II) Decreasing Benefit Whole Life (NL-8078 4/78) & Retirement Income Policy (NL-8096 9/79)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) First Year Business

1) Five percent (5%) of C(a)-(b)] where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) ls the annualized, first year reinsured premium for all policies issued during the quarter,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Is the annualized, first year reinsured premium for all policies not taken during the quarter

---

| | | |
|:---|:---|:---|
| Plus | 2) | Three dollars and twenty cents ($3.20) per thousand reinsured·on all policies issued during the quarter less three dollars and twenty cents per thousand ($3.20) on all policies not taken during the quarter. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) Renewal Business

Fifty cents ($.50) per thousand reinsured on each policy at each anniversary the policy is inforce', Allowance w'fii be paid at the end of the calendar quarter for all policies having anniversaries in that quarter.<br>

------

<u>ASSUMPTION CERTIFICATE</u>

It is hereby understood and agreed that, effective September 30, 1987, LEWER LIFE INSURANCE COMPANY (hereinafter, "Lewer") assumes all rights and liabilities under the Administrative Agreement (effective May 1, 1979) between

PRESIDENTIAL LIFE INSURANCE COMPANY OF AMERICA (hereinafter, "Presidential") and NORTHERN LIFE INSURANCE COMPANY in accordance with the terms and conditions thereof, including all amendments and modifica-tions thereto, as if it had been originally issued by Lewer, such assumption resulting from the merger of Presidential into Lewer pursuant to law on September 30, 1987.

Dated this */Zit:* ![ex_933340img004.jpg](ex_933340img004.jpg) , 1988, and signed in dupli-day cate original.

---

| |
|:---|
| LEWER LIFE INSURANCE COMPANY |
| ![ex_933340img005.jpg](ex_933340img005.jpg) |
| ![ex_933340img006.jpg](ex_933340img006.jpg) |

---

------

<u>**MUTUAL CONFIDENTIAL DISCLOSURE AGREEMENT**</u>

This Mutual Confidential Disclosure Agreement(" Agreement") is entered into as of 12th day of July, 2023 ("Effective Date"), by and between **The Lewer Companies** ("Lewer") having a place of business at 9900 W. 109<sup>th</sup> St. #200, Overland Park, Kansas 66210, and **US Alliance Life and Security Company** ("USAlliance") with an address at 1303 SW First American Pl #200, Topeka, KS 66604 (collectively the "Parties" and each a "Party").

&nbsp;&nbsp;&nbsp;&nbsp;1. **Background.** The Parties intend to engage in discussions and negotiations concerning the potential establishment of a mutually beneficial business relationship between them. In the course of such discussions and negotiations, it is anticipated that each Party will disclose or deliver to the other Party certain Confidential Information (as defined in Section 3). The Parties enter into this Agreement to protect their respective rights with respect to any Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;2. **Definitions.** For purposes of this Agreement, the following terms have the following definitions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **Disclosing Party** means the Party disclosing Confidential Information to a Recipient. The term Disclosing Party includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Disclosing Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the Disclosing Party's parent, subsidiaries, affiliates, and divisions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m. the directors, officers, employees, and/ or agents of any of the above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Recipient** means the Party receiving Confidential Information from the Disclosing Party. The term Recipient includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. the Recipient's parent, subsidiaries, affiliates, and divisions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;111. the directors, officers, employees and/ or agents of any of the above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. **Recipient's Representative** includes, but is not limited to, the Recipient's attorneys, accountants, consultants, financial advisors, and subcontractors.

&nbsp;&nbsp;&nbsp;&nbsp;3. **Confidential Information.** Confidential Information includes all information ascertained by or furnished to the Recipient or the Recipient's Representatives by the Disclosing Party or any of its representatives, whether in writing, orally, visually, electronically, or by any other means. Confidential Information includes, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. all analyses, compilations, data, studies, or other documents prepared by the Recipient or the Recipient's representatives either containing, or based in whole or part, on any Confidential Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. All documents reflecting the Recipient's review of, or interest in, the Disclosing Party;

Mutual_Confid_Discl-TLC-USAlliance Page 1 of 4 July, 2023

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Information about the Disclosing Party's technology, know-how, processes, software, databases, employee information, information about or from either party's vendors, trade secrets, contracts, proprietary information, historical and projected financial information, business strategies, operating data and organizational and cost structures, product descriptions, pricing information, and customer and consumer information (including without limitation names, addresses, telephone numbers, account numbers, demographic, financial and transactional information or customer lists). Customer Information is a subset of Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Disclosure of Confidential Information.** Recipient shall hold Confidential Information in strict confidence and shall not disclose Confidential Information to any third party, except as expressly permitted under this Agreement or required under the Consulting Agreement. Recipient shall only disclose Confidential Information to such employees and Recipient Representatives who have a need to know such Confidential Information in the course of the performance of their duties and who are legally bound to protect the confidentiality of such Confidential Information. Before disclosing any Confidential Information to consultants, Recipient shall obtain a written agreement substantially similar to this from said consultants.

&nbsp;&nbsp;&nbsp;&nbsp;5. **Protection of Confidential Information.** Recipient shall protect Confidential Information using the same degree of care as it uses to protect its own Confidential Information. In no event may Recipient use less than a reasonable degree of care, to prevent the dissemination, publication of, or access to Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;6. **Property Rights in Confidential Information.** Confidential Information will remain the exclusive property of the Disclosing Party notwithstanding disclosure hereunder. Disclosure of Confidential Information hereunder shall not be deemed to constitute a grant, by implication or otherwise, of a right or license to use the Confidential Information. Nothing contained in this Agreement and no disclosure of Confidential Information hereunder shall be construed as granting or conferring any rights upon the Recipient, by license or otherwise, for any invention, discovery or improvement made, conceived or acquired by the Disclosing Party. No claim to any trade secret or other protection shall be prejudiced by disclosure made pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;7. **Limitation on Obligations.** Sections 3 and 4 above shall not apply to Confidential Information which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. is otherwise in the public domain at the time of disclosure, or becomes publicly known, in either case, through no breach of this Agreement by Recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. was known by Recipient prior to its disclosure or becomes known to Recipient through disclosure by sources other than the Disclosing Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the Disclosing Party authorizes, in writing, the Recipient to release; or

Mutual_Confid_Discl-TLC-USAlliance Page 2 of 4 July, 2023

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. is independently developed by Recipient without any exposure whatsoever to Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;8. **Return of Confidential Information.** Recipient shall, upon written request of the Disclosing Party, destroy or return to the Disclosing Party all Confidential Information Recipient received pursuant to this Agreement (and all copies and reproductions thereof). Upon request for return of Confidential Information, Recipient shall also destroy all copies of analyses, compilations, studies or other documents prepared by it or for its use containing or reflecting Confidential Information, except one (1) copy thereof may be retained by Recipient's attorneys (who execute an agreement substantially similar to this Agreement) solely for the purpose of determining the extent of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;9. **Term of Confidentiality Obligations.** The confidentiality obligations and restrictions imposed by this Agreement shall commence as of the date of this Agreement and continue for three years beyond completion of the services under the Consulting Agreement, notwithstanding the return of the Confidential Information. If this Agreement is terminated for any reason, all obligations relating to the use or disclosure of Co:afidential Information shall survive its termination.

&nbsp;&nbsp;&nbsp;&nbsp;10. **General.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. By execu_ting this Agreement, Disclosing Party makes no representations or warranties as to the accuracy or completeness of the Confidential Information provided to Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. This Agreement and a Party's rights, duties and obligations under it are not transferable or assignable without the express prior written consent of the other Party. Any attempt to transfer or assign this Agreement or any rights, duties or obligations under this Agreement without such consent is void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. This Agreement can only be modified by a written agreement, signed by the persons authorized to sign agreements on behalf of the Parties. Any variance from the terms or conditions of this Agreement will be of no effect, unless pursuant to a written agreement, in conformity with this paragraph, to modify this Agr�ei:nent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. If any pfovision(s) of this Agreement is/ are held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or be impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. This Agteement shall be governed by and construed and enforced in accordance with the laws of the State of Kansas, without regard to any choice of law provisions. Any disputes arising out of or related to this Agreement shall be heard only in the state or federal courts located in the State of Kansas, to the exclusion of all other courts and fora.

Mutual_Confid_Discl-TLC-USAlliance Page 3 of 4 July, 2023

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. This Agreement is the complete and exclusive agreement between the Parties as to the subject matter hereof and supersedes all communications between the Parties related to the subject matter of this Agreement. Notwithstanding the foregoing, all rights and obligations of the Parties under previously executed agreements related to the subject matter of this agreement shall remain in effect with respect to confidential information disclosed under such previous agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Waiver of a breach or default under this Agreement shall not be a waiver of any other, . subsequent breach or default. Failure or delay in enforcing compliance with any term or condition of this Agreement shall not constitute a waiver of such term or condition unless such term or condition is expressly waived in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. In the event of a breach or threatened breach by a Party (the "Breaching Party1<sup>1</sup>) of any provision(s) of this Agreement, the other Party, in addition to any other remedies available to it under law, shall be entitled to seek an injunction restraining the Breaching Party from performing any act which constitutes a breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. This Agreement shall benefit and be binding upon the Parties hereto and their respective successors and permitted assigns.

J· This Agreement is not intended to constitute, create, or give effect to or otherwise recognize a joint venture, partnership or other form of business organization of any kind and the rights and obligations of the Parties shall be only those expressly set forth herein.

**IN WITNESS WHEREOF,** the Parties hereto have executed this Agreement effective the day and year first above written.

---

| | |
|:---|:---|
| The Lewer Companies | US Alliance Life and Security Company |
| ![sig01.jpg](sig01.jpg) | ![sig02.jpg](sig02.jpg) |
| Date: Jul 18, 2023 | ![sig02.jpg](sig02.jpg) |
|  | ![sig02.jpg](sig02.jpg) |

---

Mutual_Confid_Discl-TLC-USAlliance Page 4 of 4 July, 2023

------

**TLC USA NOA 7.2023**

Final Audit Report 2023-07-18

---

| | |
|:---|:---|
| Created: | 2023-07-18 |
| By: | Callie Pippen-Railinger (crailinger@lewer.com) |
| Status: | Signed |
| Transaction ID: | CBJCHBCAABAA_KSHYbBvSCqrkeeXwxxWOi3YIBizVnFh |

---

**"TLC_USA_NDA_?.2023" History**

---

| | |
|:---|:---|
| ![img02.jpg](img02.jpg) | Document emailed to Scott Mylin (smylin@lewer.com) for signature<br> 2023-07-18 - 2:06:28 PM GMT |

---

---

| | |
|:---|:---|
| ![img01.jpg](img01.jpg) | Email viewed by Scott Mylin (smylin@lewer.com)<br> 2023-07-18 - 6:36:09 PM GMT |

---

---

| | |
|:---|:---|
| ![img03.jpg](img03.jpg) | Document e-signed by Scott Mylin (smylin@lewer.com)<br> Signature Date: 2023-07-18 - 6:38:02 PM GMT-Time Source: server |

---

---

| | |
|:---|:---|
| ![img04.jpg](img04.jpg) | Agreement completed.<br> 2023-07-18 - 6:38:02 PM GMT |

---

![img05.jpg](img05.jpg)

------

Exhibit 1 to Life Insurance and Annuity Reinsurance and Administration Agreement

between LLIC and US Alliance

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Exhibit 1** | <br>**Exhibit 1** | <br>**Exhibit 1** | <br>**Exhibit 1** | <br>**Exhibit 1** |
| **Company** | **Policy No** | **Ins Name** | **Plan** | **Plan Desc** |
| 53 | E00128 | HARRIS III\*COY G. | 1023 | NL FPA- MALE |
| 53 | E00139 | ANDREWS\*WALTER C. | 1023 | NL FPA- MALE |
| 53 | E00287 | PARKS\*DUELL E. | 1023 | NL FPA- MALE |
| 53 | E00289 | GONZALES\*RUMALDO G. | 1023 | NL FPA- MALE |
| 53 | E00298 | LANCASTER\*TIMOTHY L. | 1023 | NL FPA- MALE |
| 53 | E00334 | KLUMP JR.\*WILLIAM LOUIS | 1023 | NL FPA- MALE |
| 53 | E00361 | PHILLIPS\*RICHARD A. | 1023 | NL FPA- MALE |
| 53 | E00454 | LITTRELL\*RONALD S. | 1023 | NL FPA- MALE |
| 53 | E00489 | RAYMOND\*MIKE D. | 1023 | NL FPA- MALE |
| 53 | E00564 | LINDSEY\*RETHIA P. | 3023 | NL FPA- FEMALE |
| 53 | E00623 | MAJOR\*EDWARD D. | 1023 | NL FPA- MALE |
| 53 | E00693 | VICKS\*LESLIE K. | 3023 | NL FPA- FEMALE |
| 53 | E00710 | GREBIL\*MICHAEL J. | 1023 | NL FPA- MALE |
| 53 | E00751 | FRISTOE\*WILL H. | 1023 | NL FPA- MALE |
| 53 | E00769 | PARISH\*GREGORY A. | 1013 | NL IRA- MALE |
| 53 | E00780 | PULLEN\*TIMOTHY M. | 1023 | NL FPA- MALE |
| 53 | E00782 | LADA\*JAMES E. | 1023 | NL FPA- MALE |
| 53 | E00783 | ST LUISE\*ROBERT L. | 1023 | NL FPA- MALE |
| 53 | E00792 | COY\*KENNETH L. | 1023 | NL FPA- MALE |
| 53 | E00810 | ROSSITER\*WESLEY S. | 1013 | NL IRA- MALE |
| 53 | E00851 | SLECHTA\*MICHAEL E. | 1013 | NL IRA- MALE |
| 53 | E00896 | MEADE\*JAMES | 1023 | NL FPA- MALE |
| 53 | E00897 | MEADE\*ANGELA M. | 3023 | NL FPA- FEMALE |
| 53 | E00924 | MINCHOW\*JAMES E. | 1023 | NL FPA- MALE |
| 53 | E00932 | SHREFFLER\*KENNETH P. | 1023 | NL FPA- MALE |
| 53 | E00940 | NORDMEYER\*MICHAEL L. | 1013 | NL IRA- MALE |
| 53 | E00955 | SUMMERS\*CHERYL A. | 3013 | NL IRA- FEMALE |
| 53 | E01117 | HARDGROVE\*THOMAS W. | 1023 | NL FPA- MALE |
| 53 | E01241 | COX\*WILLIAM D. | 1023 | NL FPA- MALE |
| 53 | E01244 | BURT\*WILLIAM T. | 1023 | NL FPA- MALE |
| 53 | E01383 | MARTIN\*JACK W. | 1023 | NL FPA- MALE |
| 53 | E01392 | HASENKAMP\*RICHARD J. | 1023 | NL FPA- MALE |
| 53 | E01411 | REESE\*DUANE E. | 1013 | NL IRA- MALE |
| 53 | E01437 | KRIENKE\*CORA J. | 3023 | NL FPA- FEMALE |
| 53 | E01478 | MCCREADY\*DIANE E. | 3023 | NL FPA- FEMALE |
| 53 | E01644 | ROBERSON\*CLIFTON H. | 1023 | NL FPA- MALE |

---

Page 1 of 5

------

Exhibit 1 to Life Insurance and Annuity Reinsurance and Administration Agreement

between LLIC and US Alliance

---

| | | | | |
|:---|:---|:---|:---|:---|
| 53 | E01646 | ROBERSON\*ELAINE E. | 3023 | NL FPA- FEMALE |
| 53 | E01694 | SHEATZLEY\*BARRY D. | 1023 | NL FPA- MALE |
| 53 | E01812 | EBERS\*HAROLD D. | 1023 | NL FPA- MALE |
| 53 | E01937 | STRICKLAN\*GEORGE P. | 1023 | NL FPA- MALE |
| 53 | E02058 | ROBINSON\*LANCE R. | 1023 | NL FPA- MALE |
| 53 | E02069 | CRAWFORD\*JAMES W. | 1023 | NL FPA- MALE |
| 53 | E02074 | HYMEL\*THOMAS C. | 1023 | NL FPA- MALE |
| 53 | E02075 | FELTZ\*DIANNE H. | 3023 | NL FPA- FEMALE |
| 53 | E02159 | THEABOLT\*ROBERT W. | 1023 | NL FPA- MALE |
| 53 | E02167 | JONES\*REX L. | 1023 | NL FPA- MALE |
| 53 | E02179 | LINDSTROM\*DARELL A. | 1023 | NL FPA- MALE |
| 53 | E02251 | GESSNER\*DALE R. | 1023 | NL FPA- MALE |
| 53 | E02260 | MCCLURE\*JOHN F. | 1023 | NL FPA- MALE |
| 53 | E02270 | LOFQUIST\*CHRISTINE M | 3023 | NL FPA- FEMALE |
| 53 | E02275 | SHEW\*TIMOTHY A. | 1023 | NL FPA- MALE |
| 53 | E02304 | WILLIAMS\*SALLY A. | 3023 | NL FPA- FEMALE |
| 53 | E02305 | WILLIAMS\*ANTHONY C. | 1023 | NL FPA- MALE |
| 53 | E02308 | YEARWOOD\*COY L. | 1023 | NL FPA- MALE |
| 53 | E02377 | SNOW\*DONALD D. | 1013 | NL IRA- MALE |
| 53 | E02466 | THOMPSON\*KENNETH L. | 1023 | NL FPA- MALE |
| 53 | E02520 | KELLIS\*MONTE M. | 1013 | NL IRA- MALE |
| 53 | E02579 | MAXWELL\*DAVID J. | 1023 | NL FPA- MALE |
| 53 | E02610 | HENDERSON\*MARK E. | 1023 | NL FPA- MALE |
| 53 | E02702 | BROCKMAN\*PAUL R. | 1013 | NL IRA- MALE |
| 53 | E02743 | KLIEWER\*MARK R. | 1023 | NL FPA- MALE |
| 53 | E02748 | BROWN\*DAVID A. | 1023 | NL FPA- MALE |
| 53 | E02802 | GARZA\*ROSALIO | 1023 | NL FPA- MALE |
| 53 | E02804 | BROWN\*DENNIS W. | 1023 | NL FPA- MALE |
| 53 | E02898 | ANDERSON\*ROGER D. | 1023 | NL FPA- MALE |
| 53 | E02907 | KAPPUS\*MICHAEL L. | 1023 | NL FPA- MALE |
| 53 | E02908 | MESSINGER JR.\*CHARLES L. | 1023 | NL FPA- MALE |
| 53 | E02938 | HAVERSTOCK\*ROGER R. | 1023 | NL FPA- MALE |
| 53 | E02966 | HAVERSTOCK\*JANE A. | 3023 | NL FPA- FEMALE |
| 53 | E02988 | KRAMBUHL\*MICHAEL J. | 1023 | NL FPA- MALE |
| 53 | E03043 | TURNER\*GARY M. | 1023 | NL FPA- MALE |
| 53 | E03059 | JOHNSTUN\*JOHN E. | 1023 | NL FPA- MALE |
| 53 | E03176 | MOON\*CHARLES H. | 1023 | NL FPA- MALE |
| 53 | E03189 | FENSKE\*NATHAN W. | 1023 | NL FPA- MALE |
| 53 | E03190 | HALL\*JEFFREY S. | 1023 | NL FPA- MALE |
| 53 | E03216 | NEWMAN\*EARL R. | 1023 | NL FPA- MALE |
| 53 | E03228 | LAIL\*HASKELL D. | 1013 | NL IRA- MALE |
| 53 | E03229 | MAZEL\*JIMMIE J. | 3023 | NL FPA- FEMALE |

---

Page 2 of 5

------

Exhibit 1 to Life Insurance and Annuity Reinsurance and Administration Agreement

between LLIC and US Alliance

---

| | | | | |
|:---|:---|:---|:---|:---|
| 53 | E03238 | BENSON\*JEFF T. | 1023 | NL FPA- MALE |
| 53 | E03252 | SPEAR\*THAD W. | 1023 | NL FPA- MALE |
| 53 | E03256 | HOWARD\*TIMOTHY M. | 1023 | NL FPA- MALE |
| 53 | E03261 | STENBERG\*STEPHEN S. | 1023 | NL FPA- MALE |
| 53 | E03267 | WALTON\*FRANK E. | 1023 | NL FPA- MALE |
| 53 | E03290 | MACE\*RUSSELL | 1023 | NL FPA- MALE |
| 53 | E03333 | MARTINEZ\*JOHN E. | 1023 | NL FPA- MALE |
| 53 | E03365 | SCHNEIDER\*KENNETH J. | 1023 | NL FPA- MALE |
| 53 | E03372 | DEAN\*BOBBY E. | 1023 | NL FPA- MALE |
| 53 | E03377 | HUBER\*JOSEPH R. | 1023 | NL FPA- MALE |
| 53 | E03417 | FOLEY\*DANIEL I. | 1023 | NL FPA- MALE |
| 53 | E03430 | BAILEY\*DARYL D. | 1023 | NL FPA- MALE |
| 53 | E03548 | STANLEY\*LOREN E. | 1023 | NL FPA- MALE |
| 53 | E03558 | ADAMS\*GLEN H. | 1023 | NL FPA- MALE |
| 53 | E03576 | BRECKLER\*DEBRA L. | 3013 | NL IRA- FEMALE |
| 53 | E03577 | BRECKLER\*VICTOR L. | 1013 | NL IRA- MALE |
| 53 | E03578 | BRECKLER\*ROBERT J. | 1013 | NL IRA- MALE |
| 53 | E03598 | LANTHRIP\*RON W. | 1013 | NL IRA- MALE |
| 53 | E03715 | TYREE\*ISAAC D. | 1013 | NL IRA- MALE |
| 53 | E03754 | GAMBRALL\*PENELOPE E PIRKLE | 3023 | NL FPA- FEMALE |
| 53 | E03774 | HAITHCOCK\*RICHARD N. | 1023 | NL FPA- MALE |
| 53 | E03793 | DIGGINS\*RICHARD N. | 1013 | NL IRA- MALE |
| 53 | E03892 | KERR\*JAMES DAVID | 1023 | NL FPA- MALE |
| 53 | E03907 | JONES\*RICKY D. | 1023 | NL FPA- MALE |
| 53 | E03918 | WOODARD\*STEVEN M. | 1023 | NL FPA- MALE |
| 53 | E04022 | HOBBS\*RANDALL L. | 1013 | NL IRA- MALE |
| 53 | E04029 | CAFFEY\*GARY J. | 1013 | NL IRA- MALE |
| 53 | E04040 | HILL\*RICHARD E. | 1023 | NL FPA- MALE |
| 53 | E04054 | RUSSELL\*DAVID A. | 1023 | NL FPA- MALE |
| 53 | E04120 | WELLS\*JOSEPH E. | 1023 | NL FPA- MALE |
| 53 | E04186 | MATHIS\*JEFF C. | 1023 | NL FPA- MALE |
| 53 | E04213 | SCHUMAN\*CAROL | 3023 | NL FPA- FEMALE |
| 53 | E04222 | THOMPSON\*GREGORY A. | 1023 | NL FPA- MALE |
| 53 | E04251 | NORDMEYER\*MICHAEL L. | 1023 | NL FPA- MALE |
| 53 | E04280 | FLICKINGER\*GARY L. | 1013 | NL IRA- MALE |
| 53 | F00016 | CLEMENTS\*RONALD V. | 1210 | II @ 65- MALE |
| 53 | F00037 | GOULD\*VAUGHN F. | 1210 | II @ 65- MALE |
| 53 | F00061 | FULTON\*RALPH E. | 1210 | II @ 65- MALE |
| 53 | F00127 | IACOZILI\*JAMES D. | 1210 | II @ 65- MALE |
| 53 | F00204 | TEMPLEN\*RICHARD I. | 1210 | II @ 65- MALE |
| 53 | F00263 | SCHULER\*SANDY K. | 3210 | II @ 65- FEMALE |
| 53 | F00533 | STREETER\*RONALD E. | 1210 | II @ 65- MALE |

---

Page 3 of 5

------

Exhibit 1 to Life Insurance and Annuity Reinsurance and Administration Agreement

between LLIC and US Alliance

---

| | | | | |
|:---|:---|:---|:---|:---|
| 53 | F00585 | SCHNEIDER\*KENNETH J. | 1210 | II @ 65- MALE |
| 53 | F00660 | MAZEL\*JIMMIE J. | 3210 | II @ 65- FEMALE |
| 53 | F00721 | DUPONT\*STEPHEN M. | 1210 | II @ 65- MALE |
| 53 | X00081 | KERR\*SHARON L. | 3310 | DOL NL-FEMALE |
| 53 | X00128 | HARRIS III\*COY G. | 1310 | DOL NL- MALE |
| 53 | X00178 | LAWSON\*MICHAEL D. | 1316 | DOL NL- REDUCED PAID UP |
| 53 | X00208 | LANGENDERFER\*ALLAN J | 1310 | DOL NL- MALE |
| 53 | X00334 | KLUMP JR.\*WILLIAM LOUIS | 1310 | DOL NL- MALE |
| 53 | X00432 | BRADY\*RONALD L. | 1310 | DOL NL- MALE |
| 53 | X00454 | LITTRELL\*RONALD S. | 1310 | DOL NL- MALE |
| 53 | X00461 | TRAWICK\*JOHN H. | 1316 | DOL NL- REDUCED PAID UP |
| 53 | X00623 | MAJOR\*EDWARD D. | 1310 | DOL NL- MALE |
| 53 | X00632 | ALSDORF\*ERVIN G. | 1316 | DOL NL- REDUCED PAID UP |
| 53 | X00769 | PARISH\*GREGORY A. | 1310 | DOL NL- MALE |
| 53 | X00775 | SUSSMAN\*GERALD L. | 1310 | DOL NL- MALE |
| 53 | X00919 | SMITH\*ROBERT G. | 1310 | DOL NL- MALE |
| 53 | X00956 | SUMMERS\*CHERYL A. | 1316 | DOL NL- REDUCED PAID UP |
| 53 | X01076 | HASSELBRING\*MARTHA A. GRAHAM | 3310 | DOL NL-FEMALE |
| 53 | X01214 | WILCOX\*RONALD D. | 1310 | DOL NL- MALE |
| 53 | X01241 | COX\*WILLIAM D. | 1310 | DOL NL- MALE |
| 53 | X01244 | BURT\*WILLIAM T. | 1310 | DOL NL- MALE |
| 53 | X01337 | MCBRIDE\*RICHARD E. | 1310 | DOL NL- MALE |
| 53 | X01364 | BECK\*WILLIAM F. | 1310 | DOL NL- MALE |
| 53 | X01393 | HEATON\*LYLE G. | 1316 | DOL NL- REDUCED PAID UP |
| 53 | X01564 | LOWE\*WILLIAM D. | 1316 | DOL NL- REDUCED PAID UP |
| 53 | X01574 | MCCOY\*CARROLL D. | 1310 | DOL NL- MALE |
| 53 | X01620 | CROCKER\*AGNES J. | 1316 | DOL NL- REDUCED PAID UP |

---

Page 4 of 5

------

Exhibit 1 to Life Insurance and Annuity Reinsurance and Administration Agreement

between LLIC and US Alliance

---

| | | | | |
|:---|:---|:---|:---|:---|
| 53 | X01625 | OBERLANDER\*JAY | 1310 | DOL NL- MALE |
| 53 | X01640 | EDWARDS\*WILLIAM R. | 1310 | DOL NL- MALE |
| 53 | X01703 | REESE\*MARSHALL J. | 1310 | DOL NL- MALE |
| 53 | X01718 | MORGAN\*EVELYN M. | 3310 | DOL NL-FEMALE |
| 53 | X01748 | WOODS\*RAYMOND E. | 1310 | DOL NL- MALE |
| 53 | X01964 | TARRENCE\*AMEL | 1310 | DOL NL- MALE |
| 53 | X02053 | SHAVER\*WAYNE B. | 1316 | DOL NL- REDUCED PAID UP |
| 53 | X02058 | ROBINSON\*LANCE R. | 1310 | DOL NL- MALE |
| 53 | X02074 | HYMEL\*THOMAS C. | 1310 | DOL NL- MALE |
| 53 | X02159 | THEABOLT\*ROBERT W. | 1310 | DOL NL- MALE |
| 53 | X02221 | THOMAS\*KATIE C. | 3310 | DOL NL-FEMALE |
| 53 | X02260 | MCCLURE\*JOHN F. | 1310 | DOL NL- MALE |
| 53 | X02346 | HUNEKE\*JAMES C. | 1310 | DOL NL- MALE |
| 53 | X02397 | REICHERT\*VALENTINE G. | 1310 | DOL NL- MALE |
| 53 | X02619 | HANNIS\*PATRICK W. | 1310 | DOL NL- MALE |
| 53 | X02735 | GLAZIER\*KEITH E. | 1316 | DOL NL- REDUCED PAID UP |
| 53 | X03075 | SOLOMON\*STEPHEN R. | 1310 | DOL NL- MALE |
| 53 | X03099 | WELLS\*WILLIAM F. | 1310 | DOL NL- MALE |
| 53 | X03110 | GIRARDIN\*JAMES L. | 1310 | DOL NL- MALE |
| 53 | X03169 | GEORGE\*RONALD D. | 1310 | DOL NL- MALE |
| 53 | X03213 | STORY\*KENNETH E. | 1310 | DOL NL- MALE |
| 53 | X03238 | BENSON\*JEFF T. | 1310 | DOL NL- MALE |
| 53 | X03376 | BUSSARD\*BARRY A. | 1310 | DOL NL- MALE |
| 53 | X03435 | SUTTON\*STANLEY D. | 1310 | DOL NL- MALE |
| 53 | X03563 | RECKELHOFF\*WILLIAM F. | 1310 | DOL NL- MALE |
| 53 | X03598 | LANTHRIP\*RON W. | 1310 | DOL NL- MALE |
| 53 | X03754 | GAMBRALL\*PENELOPE E PIRKLE | 3310 | DOL NL-FEMALE |
| 53 | X03760 | BOGGS\*DARREL L. | 1310 | DOL NL- MALE |
| 53 | X03790 | DENNEY\*JOYCE A. | 3310 | DOL NL-FEMALE |
| 53 | X03928 | BAGLEY\*JERRY G. | 1310 | DOL NL- MALE |
| 53 | X03942 | FOOTE\*RICHARD A. | 1310 | DOL NL- MALE |
| 53 | X04020 | PURVIS\*CARL | 1310 | DOL NL- MALE |
| 53 | X04040 | HILL\*RICHARD E. | 1310 | DOL NL- MALE |
| 53 | X04120 | WELLS\*JOSEPH E. | 1310 | DOL NL- MALE |
| 53 | X04171 | MADDUX\*SUSIE F. | 3310 | DOL NL-FEMALE |
| 53 | X04222 | THOMPSON\*GREGORY A. | 1310 | DOL NL- MALE |

---

Page 5 of 5

------

Exhibit 2 to Life Insurance and Annuity Reinsurance and Administration Agreement<br> between LLIC and US Alliance

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Exhibit 2** | **Exhibit 2** | **Exhibit 2** | **Exhibit 2** | **Exhibit 2** |
| **Company** | **Policy No** | **Ins Name** | **Plan** | **Plan Desc** |
| 50 | A00040 | HUX JR.\*WALTER D. | 1020 | LLIC OLD FPA- MALE |
| 50 | A00104 | JUNG\*ROGER D. | 1010 | LLIC OLD IRA- MALE |
| 50 | A00137 | HILL JR.\*CLYDE M. | 1010 | LLIC OLD IRA- MALE |
| 50 | A00163 | HENLEY\*BILLY E. | 1020 | LLIC OLD FPA- MALE |
| 50 | A00225 | HIGGINS\*RENEE M. | 3020 | LLIC OLD FPA- FEMALE |
| 50 | A00377 | STONEKING JR.\*DONALD E. | 1010 | LLIC OLD IRA- MALE |
| 50 | A00380 | QUEBEDEAUX\*GERALD P. | 1020 | LLIC OLD FPA- MALE |
| 50 | A00428 | BARTLETT\*JODIE W. | 1020 | LLIC OLD FPA- MALE |
| 50 | A00447 | LEWER\*ROBERT J. | 1020 | LLIC OLD FPA- MALE |
| 50 | A00468 | LEAK\*PEARL M. | 3009 | LLIC OLD IRA- FEMALE |
| 50 | A00469 | LEAK\*SAMUEL L. | 1010 | LLIC OLD IRA- MALE |
| 50 | A00484 | JANEWAY\*DAVID E. | 1020 | LLIC OLD FPA- MALE |
| 50 | A00499 | HUGI\*GLENN W. | 1020 | LLIC OLD FPA- MALE |
| 50 | L00343 | LEWER\*CHARLES G. | 4210 | II @ 65- NO COMMISSION |
| 50 | L00368 | DRURY\*TERRY R. | 1210 | II @ 65- MALE |
| 50 | L00402 | LEWER\*GREGORY PAUL | 4210 | II @ 65- NO COMMISSION |
| 50 | N00530 | FLASPOHLER\*FRANK WILLIAM | 1021 | LLIC NEW FPA- MALE |
| 50 | N00553 | BROOKS\*ERIC F. | 1021 | LLIC NEW FPA- MALE |
| 50 | N00581 | MELVOIN JR.\*HERBERT B. | 1021 | LLIC NEW FPA- MALE |
| 50 | VL01176021 | HALL\*ANITA B. | 3011 | LLIC WL 4000 FEMALE NS |
| 50 | VL0411951 | CARTER\*AMBER MARIE | 3011 | LLIC WL 4000 FEMALE NS |
| 50 | VL0411952 | CARTER\*GARRY WAYNE | 2011 | LLIC WL 2010 MALE S |
| 50 | VL0411973 | VAUGHN\*STEVEN RANCE JR. | 2010 | LLIC WL 2010 MALE NS |
| 50 | VL08223268 | LEACH\*JUDITH A. | 3000 | LLIC WL 4000 FEMALE NS |
| 50 | VL12112095 | BRAUN\*JEANNIE MARIE | 3001 | LLIC WL 4000 FEMALE S |
| 50 | VL12183506 | DRANE\*APRIL ALANE | 3000 | LLIC WL 4000 FEMALE NS |
| 50 | VL12183525 | JONES\*VERNON GEORGE | 2011 | LLIC WL 2010 MALE S |
| 50 | VL12183526 | JONES\*JANETTA | 3010 | LLIC WL 2010 FEMALE NS |
| 50 | VL12184821 | MEDINA\*ABRAHAM | 2011 | LLIC WL 2010 MALE S |
| 50 | VL12184854 | ESPINOZA\*CHRISTINE F. | 3010 | LLIC WL 2010 FEMALE NS |
| 50 | VL20117000 | KELEHER\*KEVIN LEO | 2011 | LLIC WL 2010 MALE S |
| 50 | VL61183107 | LANDRY\*CARL J. | 2010 | LLIC WL 2010 MALE NS |

---

Page 1 of 1

## Exhibit 10.22

**Exhibit 10.22**

**AMENDED AND RESTATED TRUST AGREEMENT FOR THE**

**MONTANA FUNERAL TRUST**

**THIS AMENDED AND RESTATED TRUST AGREEMENT,** made effective as of the ____ day of February, 2025, by and among the Montana Funeral Directors Association, Inc.; those eligible Montana-based Participating Mortuaries ("Participating Mortuaries") that agree to participate in the Montana Funeral Trust; and US Alliance Life and Security Company -- Montana in its capacity as Trustee of the Montana Funeral Trust (solely and together with any successor Trustee or Trustees collectively "Trustee"):

<u>WITNESSETH:</u>

**WHEREAS,** the Montana Funeral Directors Association, Inc. ("the Association") is a domestic not-for-profit corporation having its principal place of business at 1812 11<sup>th</sup> Avenue, Helena, Montana:

**WHEREAS** Montana-based Participating Mortuaries ("Participating Mortuaries") who are eligible as determined by the Association and agree to participate in the Montana Funeral Trust, and who's licensed and employed Morticians ("Funeral Director" and collectively "Funeral Directors") are agents of the Participating Mortuaries.

**WHEREAS Montana** Funeral Services, Inc. previously established the Montana Funeral Trust ("Trust") under the 1986 Trust Agreement, having been most recently amended and restated effective as of October 1, 2014, of which this Trust Agreement is a complete amendment and restatement.

**WHEREAS** the Montana Funeral Directors Association ("Association") maintains certain interests and obligations assigned to it by the Montana Funeral Services, Inc. under the 1986 Trust Agreement, which assignment is integrated into and recognized by this Agreement and as stated in the Association bylaws, by which the Association oversees the administration of the Trust and has the power to hire and fire the Trustee through its Trust Committee.

**WHEREAS** the Association desires to continue to make the benefits of participation in a coordinated, professionally managed and administered prepaid funeral services plan under the Trust available to Participating Mortuaries so that they may better serve the public in the provision of funeral services and merchandise within the State of Montana.

**WHEREAS** the Association has requested that the Trustee enter into this Trust Agreement for the benefit of eligible Participating Mortuaries.

**WHEREAS** the Trustee is US Alliance Life and Security Company – Montana, a duly registered and licensed insurance corporation with its principal place of business located at 203 North Ewing Street. Helena, Montana.

**WHEREAS** the Trustee is willing to act as Trustee pursuant to the terms and conditions of this Trust Agreement;

------

**WHEREAS** the Trustee has entered into this Agreement with the Association and Participating Mortuaries to act as Trustee of the Trust and to administer the Trust in coordination with the Association.

**WHEREAS** the Trust has been, is, and will continue to be an irrevocable trust under this Agreement; and

**WHEREAS** this Trust Agreement supersedes and replaces all prior Agreements and Amendments of any prior versions of the Trust.

**NOW, THEREFORE,** in reliance upon and in consideration of recitals which are incorporated into this Agreement as fully stated above and the mutual promises and covenants set forth in this Agreement, and other good and valuable consideration, the parties agree as follows:

**<u>ARTICLE I Definitions</u>**

The capitalized terms set forth below have the following meanings when used in this Trust Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)** **Agreement or Trust Agreement:** This Trust Agreement as adopted by the Association and the Trustee and as it subsequently may be amended as provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)** **Applicable Date:** As to each Preneed Account, the date upon which the merchandise for which Preneed Funds have been deposited is delivered or the funeral services for which Preneed Funds have been deposited are rendered in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)** **A.R.M.:** Administrative Rules of Montana

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)** **Association:** Montana Funeral Directors Association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)** **Authorization:** Written authorization executed by a Purchaser on a form approved by the Trustee and made available by the Trustee requesting the payment to or withdrawal from the Purchaser's Preneed Account. Authorization executed by a Purchaser is required by the Trustee for all withdrawals or transfers from a Purchaser's Preneed Account. The Authorization may be executed by the Funeral Director after the death of the Beneficiary provided that appropriate proof of death accompanies the Authorization, and the Funeral Director has provided the funeral services and merchandise. In all other cases, the Authorization must be executed by the Purchaser or the Purchaser's duly authorized representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(F)** Authorized Investment: See section 4.4

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(G)** **Beneficiary:** The person upon whose death funeral services and merchandise are to be provided by a Funeral Director pursuant to the Preneed Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(H)** **Enrollment Agreement:** The agreement that each eligible Participating Mortuary will execute in order to participate in the Montana Funeral Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I)** **Funeral Director:** A licensed and employed Mortician who is an agent of a Participating Mortuary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(J)** **Materials:** Forms, manuals and other materials developed for participation in the Trust and to be delivered to each Funeral Director by the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(K)** **MCA:** The Montana Code Annotated as it may be amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(L)** **Mortuary:** Any entity that is licensed as a funeral establishment pursuant to Title 37, Chapter 19 of the Montana Code Annotated and that executes an Enrollment Agreement with the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(M)** **Participating Mortuary:** Mortuaries which are eligible to participate in the Trust, either because they are members of the Association, or because they have been otherwise approved by official action of the Association's Trust Committee to participate in the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(N)** **Preneed Account:** A distinct account established for a Beneficiary pursuant to instructions from a Purchaser for depositing and investing all Preneed Funds received from a Purchaser for a designated Beneficiary, together with any interest on the funds and less any distributions or deductions made from or allocated to the funds. A distinct Preneed Account shall be maintained for each designated Beneficiary. If, for example, a Purchaser has made deposits on behalf of two distinct designated Beneficiaries, the Purchaser would have two Preneed Accounts, each reflecting their respective contributions, interest distributions and deductions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(O)** **Preneed Consumer:** Any person who executes a Preneed Contract with a Funeral Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(P)** **Preneed Contract:** Any contract between a Funeral Director and a Preneed Consumer which is subject to Title 37, Chapter 19, part 8 of the Montana Code Annotated and pursuant to which the Funeral Director will deliver funeral goods and or services upon the future death of the Beneficiary of the Preneed Contract. The Preneed Contract may be revocable or irrevocable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(Q)** **Preneed Funds:** All moneys paid by a Purchaser to a Funeral Director under or in connection with a Preneed Contract and deposited into a Preneed Account.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(R)** **Principal:** The total of all Preneed Accounts being held in the Trust administered by the Trustee under the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(S)** **Purchaser:** The person who has delivered Preneed Funds to a Funeral Director under or in connection with a Preneed Contract for a Beneficiary. The Purchaser and the Beneficiary are not required to be the same person. There may be more than one Purchaser for a Beneficiary and a Purchaser may establish a distinct Preneed Account for more than one Beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(T)** **Trust:** The Montana Funeral Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(U)** **Trust Committee:** The Committee appointed by the Association to oversee and manage the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(V)** **Trust Fund Investment Accounts:** The investment accounts offered by the Trust into which the Preneed Funds deposited into the Trust can be invested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(W)** **Trustee:** US Alliance Life and Security Company -- Montana.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(X)** **Valuation Date**: The date upon which each distinct Preneed Account is valued as to Principal and interest, which must be at least semi-annually on a calendar basis.

<u>ARTICLE II Administration of Montana Funeral Trust</u>

---

| | |
|:---|:---|
| **Section 2.1** | **Purpose.** The purpose of the Montana Funeral Trust is to provide Participating Mortuaries with the opportunity to invest funds that the Participating Mortuaries, and or their Funeral Director agents, receive from Preneed Contracts in a common Trust account to enable the Preneed Contracts to participate in investments and achieve rates of return that may be unavailable to them in their individual capacity. The Trust constitutes a Preneed Funeral Trust for Preneed Funeral Contracts within the meanings of 37-19-828, MCA and A.R.M. 24.147.1502-1505 of the Montana Board of Funeral Service. |

---

---

| | |
|:---|:---|
| **Section 2.2** | **Declaration of Trust.** The Trustee is hereby appointed to hold and agrees to hold the Preneed Funds in the Preneed Accounts in the Trust upon the terms and conditions and for the use and benefit of the Purchasers as set forth in this Agreement. Each Participating Mortuary that participates in the Trust authorizes the Trustee to receive and hold Preneed Funds in trust as required by applicable law. The Trustee expressly undertakes and assumes the Trust created in this Agreement and agrees to carry out the provisions of this Agreement. The Trust shall not engage in any activities other than those required or authorized by the terms of this Agreement or incidental and necessary to accomplish permitted activities. |

---

------

---

| | |
|:---|:---|
| **Section 2.3** | **Operation.** Pursuant to 37-19-828, MCA, Preneed Funds must be deposited in a banking institution, savings or building and loan association, or credit union with an office in the state of Montana, and organized under the laws of Montana, of another state, or of the United States. |

---

A distinct Preneed Account within the Trust will be established whenever a Participating Mortuary executes a distinct Preneed Contract with a Preneed Consumer, and the Participating Mortuary deposits the Preneed Funds from that Preneed Contract into the Trust. Because a Preneed Contract may be paid for by a Preneed Consumer in installments, it is contemplated that Participating Mortuaries may make periodic deposits into a Preneed Account to fund a particular Preneed Contract.<br>

The Trustee shall offer an investment option in which the funds received by the Trust will be deposited in an Authorized Investment with the Trustee as owner and beneficiary of the Authorized Investment. Other individual accounts may be established to continue the administration of Preneed Accounts and Contracts entered into prior to the date of this Agreement and to implement the conversion of those Principal Funds Accounts to individual annuity funded Preneed Accounts under Sections 4.4(B)(1) and 8.2.<br>

In the case of an irrevocable Preneed Contract, the Preneed Consumer has the right to transfer the funding for that Preneed Contract to another mortuary, whether or not that mortuary is a Participating Mortuary. Additionally, a Participating Mortuary may transfer any or all of its Preneed Accounts maintained in the Trust to another preneed funeral trust established under Montana law. The revocation of a Preneed Contract and the refunding of the proceeds of that Preneed Account to the Preneed Consumer, the transfer of the funding of a Preneed Account to another Mortuary, or the transfer of one or more Preneed Accounts from the Trust by a Participating Mortuary, or formerly Participating Mortuary, shall not be deemed a termination of this Trust Agreement.<br>

---

| | |
|:---|:---|
| **Section 2.4** | **Administration of Montana Funeral Trust.** Except as otherwise provided in this Trust Agreement, all operational and administrative actions regarding the Trust shall be performed by the Trustee. The Trustee will hold all Preneed Funds transferred and delivered to the Trustee under this Agreement in trust; will manage, invest, and reinvest the Principal of the Trust; will collect and receive the income of the Trust; and will distribute the income and Principal of the Trust as follows: |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)** **Initial Deposits and Additions to a Preneed Account.** An initial deposit shall be made to establish a Preneed Account. Any additional deposits to any Preneed Account may be in any amount. All additions will be administered as part of the Trust and shall be subject to the terms and conditions of this Agreement. The Trustee will not, at any time, receive and accept any additions to the Trust if the additions do not represent Preneed Funds.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)** **Accumulation of Income:** Except as otherwise provided in this Article III, the Trustee will accumulate any net income in the Trust allocated to each Preneed Account. The accumulated net income will periodically be added to and will be treated as Principal, for investment purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)** Right of Withdrawal by Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If the Purchaser signs a revocable Preneed Contract, the Purchaser or the Purchaser's legal representative shall have the absolute right, upon delivery of the Authorization to the Trustee, to make a withdrawal from the Purchaser's Preneed Account at any time prior to the Applicable Date. Any Authorization received by a Funeral Director shall be promptly forwarded to the Trustee. Promptly upon receipt of a properly completed and executed Authorization and all required documentation and information, the Trustee shall withdraw the Preneed Funds from the designated Preneed Account in accordance with the Authorization and transmit the Preneed Funds to the Purchaser pursuant to the Authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Purchaser signs an irrevocable Preneed Contract, no withdrawal by the Purchaser shall be permitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)** Right of Withdrawal by Participating Mortuary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) After the occurrence of the Applicable Date, a Participating Mortuary shall have the right to make a withdrawal from any Preneed Account for which the Participating Mortuary has provided funeral services or merchandise pursuant to the Preneed Contract by notifying the Trustee of the occurrence of the Applicable Date. The notice shall include: (1) the Authorization; and (2) a certified copy of the death certificate of the Beneficiary or other appropriate proof of death of the Beneficiary. Payment from the Preneed Account will be made to the Participating Mortuary within thirty (30) business days after the Trustee's receipt of the notification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Purchaser signed a revocable Preneed contract and the Preneed Account exceeds the cost of the services performed and the merchandise provided, the Participating Mortuary (a) shall refund the excess to the Purchaser; or (b) if the Purchaser and the Beneficiary are the same person, shall cause a proper representative of the Purchaser to execute an appropriate affidavit or other documents, and deliver the excess funds to the representative. The Trust, the Trustee, the Association shall not be liable to the Participating Mortuary in the event the Preneed Account is insufficient to pay the whole of the amount owing to the Participating Mortuary. The Trust, the Trustee, and the Association shall not be liable to any Purchaser or representative of a Purchaser if a Participating Mortuary does not refund the excess funds to the proper party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If the Purchaser signed an irrevocable Preneed Contract and the value of the Preneed Account exceeds the cost of the services performed and merchandise provided, the excess funds shall be paid by the Participating Mortuary to the Purchaser, the Purchaser's representative, or other recipient pursuant to the laws of the State of Montana. The Trust, the Trustee, and the Association shall not be liable to any Purchaser, the Purchaser's representative, or other recipient if a Participating Mortuary does not pay the excess funds to the proper party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)** **Payment of Withdrawal from Accounts:** The Trustee shall pay Preneed Funds originally deposited to the Trust Principal in segregated accounts under Section 4.4(B)(1) (Fund A) and interest earned at the next withdrawal date following receipt of Authorization. Upon payment, the obligations of the Trustee to the Preneed Account shall terminate and the Preneed Account closed. The distribution of earnings may be in two installments, the first covering all interest earned through the nearest preceding Valuation Date and the last from the Valuation Date to the investment withdrawal date.

<u>ARTICLE III Information Required</u>

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|:---|:---|
| **Section 3.1** | **Information Required Upon Contribution or Withdrawal from a Preneed Account.** The following information on forms provided by the Trustee shall accompany Preneed Funds transmitted by a Participating Mortuary for deposit in a Preneed Account or a request for withdrawal of Preneed Funds from a Preneed Account: |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)** The name and address of the Purchaser for which the Preneed Account deposit or withdrawal is being made and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)** The name and address of the Participating Mortuary and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)** The social security number of the Purchaser and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)** The identification number of the Participating Mortuary and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)** The dollar amount which is being deposited or withdrawn and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(F)** The name and social security number of the Beneficiary, if any, designated by the Purchaser in the Preneed Contract if different from the Purchaser and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(G)** The type of Preneed Account (Revocable or Irrevocable) and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(H)** If a request for a withdrawal is submitted by a power of attorney for a Purchaser, a certified copy of the Power of Attorney; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I)** Other information as may be required by the Trustee.

Section 3.2 Information required for Transfer of Funds from Irrevocable Accounts.

The following information shall accompany a request for transfer of funds from an irrevocable Preneed Account:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)** The names and addresses of the Purchaser and the Beneficiary for which the Preneed Account has been established and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)** The social security numbers of the Purchaser and the Beneficiary and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)** The name and address of the originating Participating Mortuary and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)** The name and address of the Participating Mortuary or funeral preneed trust to which the funds are to be transferred and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)** A written request of the Purchaser directing the transfer, signed by the Purchaser and notarized and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(F)** If the request for a transfer of funds, or a request to change a revocable account to an irrevocable account, is submitted by a power of attorney for a Purchaser, a certified copy of the Power of Attorney; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(G)** Other information as may be required by the Trustee.

<u>ARTICLE IV Trustee</u><u>'</u><u>s Powers; Investment Provisions</u>

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| **Section 4.1** | **Trustee's Authorities and Powers.** The Trustee has all powers granted to Trustees by Title 72 of the Montana Code Annotated. |

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The Trustee will invest and reinvest the principal and income of the Trust only in an Authorized Investment as defined in this Agreement. The selection and retention or disposition of any investment will be determined by the Trustee, who will have exclusive authority to manage and control the assets of the Trust.<br>

The Trustee is granted all powers, authority, and discretion to administer each Preneed Account established under this Agreement to hold Preneed Funds. The Trustee shall administer the Preneed Accounts in compliance with Tit. 37, ch. 19, pt. 8, MCA, and Tit. 24, ch. 147, pt. 15, A.R.M.

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| **Section 4.2** | **Additional Powers.** The Trustee will have the following additional powers and authority in the administration of the Trust. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)** To purchase or subscribe for any Authorized Investment and to retain the Authorized Investment in the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)** To sell for cash, convert, redeem, or exchange for another Authorized Investment, any Authorized Investment at any time held by the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)** To purchase any Authorized Investment at a premium or discount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)** To adjust, compromise or arbitrate claims or demands of, or against, the Trust or any Preneed Account, whether the claims are due or shall become due in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)** In any case where the applicable law is unclear or uncertain, to allocate to income or to Principal, or to apportion between income and Principal, receipts and disbursements in the manner the Trustee deems proper.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(F)** To execute and deliver all documents, contracts, and instruments necessary or advisable in connection with the administration of the Trust and any Preneed Account established under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(G)** To do all acts which the Trustee may deem necessary or proper and to exercise any and all powers of the Trustee under this Agreement upon the terms and conditions which the Trustee deems are for the best interests of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(H)** To commingle all Preneed Funds and to invest all the Preneed Funds in lump sums or otherwise without segregation, provided, however, that the Preneed Funds shall not be commingled with other monies of any Participating Mortuary or as prohibited by any law of the State of Montana.

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| **Section 4.3** | **No Implied Duties.** The Trustee shall not have any duty or obligation to manage, control, use, sell, dispose of or otherwise deal with the funds of the Trust, or otherwise to take or refrain from taking any action under or in connection with this Agreement, except as expressly required by the terms of this Agreement and no implied duties or obligations shall be read into this Agreement against the Trustee. |

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| **Section 4.4** | **Authorized Investment.**  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)** As used in this Article IV, "Authorized Investment" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)** interest-bearing deposits in a bank, national bank, federal savings bank, federal savings and loan association, savings bank, savings and loan association, credit union or federal credit union in a jurisdiction permitted by the then existing laws of the State of Montana, whether the deposits be in regular passbook savings accounts, regular non-passbook savings accounts, interest-bearing checking accounts, certificates of deposit, money market accounts or any other deposit with the banking institution, provided that the deposits shall bear interest at a rate which shall be not less than the prevailing rate of interest earned by other such deposits in the banks, savings banks, savings and loan associations, or credit unions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)** The Trustee shall not be required to ascertain whether any Purchaser or Beneficiary may maintain investments or deposit accounts at any depository of funds of the Trust which may affect the amount of insurance available to a Preneed Account. All investments made hereunder shall be made in accordance with applicable laws of the State of Montana. Should such statute, or any successor statute, ever be interpreted to include investments other than those herein enumerated, "Authorized Investment" as used in this agreement shall be expanded to include any and all such investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)** investments backed by the United States Government; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4)** investments in contracts purchased on the life of an individual Beneficiary with the Trustee as owner and beneficiary of the annuity contract. The annuity shall be issued by Montana Domiciled Life Insurance Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)** The Trustee may establish Trust Fund Accounts as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)** **Segregated Account (Fund A)**. A segregated fund (Fund A) will be established from which the Principal shall be invested in separate annuity contracts purchased on the life of an individual Beneficiary with the Trustee as owner and beneficiary of the contracts. With this investment option, the Trustee shall establish a distinct Preneed Account for the principal of each Preneed Contract executed between Funeral Director and Beneficiary and naming US Alliance Life and Security Company of MT as Trustee under this Agreement. The principal of each Preneed Account shall be invested under the terms of this Agreement, with all income earned on the Preneed Account added to its principal after payment of expenses as provided in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)** **Other Funded Accounts.** Other individual accounts may be established to continue the administration of Preneed Accounts and Contracts entered into prior to the date of this Agreement ("Preexisting Accounts") and to implement the conversion of those Principal Funds Accounts to individual annuity funded Preneed Accounts under ¶ 4.4(B)(1). Until conversion to annuity funded Segregated Preneed Accounts, the Preexisting Accounts shall be administered under the preexisting Preneed Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)** All investments made under this Agreement shall be made in accordance with applicable laws of the State of Montana.

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<u>ARTICLE V Duties of the Association</u>

Section 5.1 Except as Trustee advises to maintain, the Association shall terminate all existing agreements no later than October 1, 2025 with any entity or person providing services to the Trust as trustee, auditor, administrator, or any other service provider.

Section 5.2 The Association shall serve in an advisory capacity to the Trustee.

Section 5.3 The Association, at its cost, shall sponsor and endorse the Trust to all Association members eligible to become Participating Mortuaries in the Trust, and shall encourage participation by all eligible mortuaries in the Trust.

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| Section 5.4 | The Association shall assist, at its cost, as requested by the Trustee, in marketing and promotion of the Trust to mortuaries that are eligible to become Participating Mortuaries in the Trust, and from time to time, as requested by the Trustee, the Association shall publish updates and articles concerning the benefits of the Trust in its magazines and other communications and publications to its members. |

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Section 5.5 The Association shall act as a liaison between Participating Mortuaries and the Trustee with respect to the operation and administration of the Trust.

Section 5.6 The Association shall provide all appropriate information requested by the Trustee regarding the current membership of the Association, the names of all Participating Mortuaries, and any other information needed for the administration of the Trust.

Section 5.7 The Association shall report to the Trustee the following information on a regular and continuing basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(A)** The name, address and social security number of each new Purchaser who delivers Preneed Funds in connection with a Preneed Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(B)** The name, address, and social security number of each new Preneed Consumer who executes into a Preneed Contract.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(C)** The date of execution of the Preneed Contract and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(D)** The name, address, and social security number of the Beneficiary and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(E)** The dollar amount of the payment made by the Purchaser under the Preneed Contract.

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| Section 5.8 | The Association shall remit to the Trustee, in receipt and in timely fashion, all funds received by it and paid in establishing a Preneed Account. Any deposit of funds with the Trustee shall be invested and become a part of the Trust Principal, and a deposit will begin to accrue interest as part of principal upon deposit. |

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<u>ARTICLE VI Reports of Trustee</u> 

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| **Section 6.1** | **Preneed Account Information.** The Trustee shall maintain accurate and detailed records of each Preneed Account, including records of principal, accrued interest, receipts, and disbursements, and all other transactions required in connection with each Preneed Account. |

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| **Section 6.2** | **Information for Purchaser.** The Trustee shall deliver to each Purchaser the information required by Section 6.1 upon any addition to or withdrawal from the Purchaser's Preneed Account and within thirty (30) days following the end of each calendar year. |

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| **Section 6.3** | **Information for Participating Mortuaries.** At least quarterly, the Trustee shall deliver to each Participating Mortuary reports setting forth the information required by Section 6.1 for each Preneed Account generated by the Participating Mortuary. |

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| **Section 6.4** | **Tax Reports.** The Trustee shall deliver to each Purchaser the tax records and information with respect to the Purchaser's Preneed Account as may be required by law. |

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<u>ARTICLE VII General Matters Relating to the Trust</u>

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| **Section 7.1** | **Responsibility of Trustee; Prudent Investor Standard.** The Trustee shall administer the trust and invest and reinvest the Principal and income of the Trust in compliance with the <u>Uniform Prudent Investor Act, Mont. Code Ann. Tit. 72, ch.38, pt. 9.</u> In satisfying this standard, the Trustee shall exercise reasonable care, skill, and caution, provided, however, that the Trustee shall not be liable for any action taken or omitted by Trustee in good faith and believed by Trustee to be authorized in this Agreement or within the rights or powers conferred upon Trustee under this Agreement, or for action taken or omitted by Trustee in good faith and in accordance with advice of legal counsel (which counsel may be of the Trustee's own choosing) and shall not be liable for any mistake of fact or error of judgment or for any acts or omissions of any kind unless caused by willful misconduct or gross negligence. |

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Notwithstanding the foregoing, the Trustee will not be absolved of liability for fraudulent or willful misuse, misapplication, or improper withdrawal of any funds from a Preneed Account by Trustee. The Trustee shall incur no liability to any Participating Mortuary for any action taken pursuant to the direction, request, or approval given by a Participating Mortuary, a Purchaser, or the legal representative of the Purchaser. The Trustee shall incur no liability to any Participating Mortuary for any action taken because of (i) a failure of the Participating Mortuary to provide timely notice of any claim, (ii) the untimely transmission of any Preneed Funds to the Trustee by the Participating Mortuary, or (iii) the misuse, misapplication, or improper withdrawal by a Participating Mortuary of any Preneed Funds delivered to the Trustee pursuant to this Agreement. The Trust, the Trustee, and the Association have no liability whatsoever in connection with any matter, issue, or thing relating to a Preneed Contract, it being understood and agreed that a Preneed Contract is an agreement between a Participating Mortuary and a Purchaser.<br>

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| **Section 7.2** | **Employment of Third Parties.** In the administration of the Trust and the exercise of powers under this Agreement, the Trustee shall, at the expense of the Trust, employ or enter into agreements with agents, attorneys, accountants, auditors and other financial and data processing consultants as Trustee deems necessary to carry out Trustee's obligations under this Agreement. The Trustee shall not be answerable for the default or misconduct of any agents, attorneys, accountants, auditors, or other consultants if the agents, attorneys, accountants, auditors, or consultants have been selected with reasonable care. |

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| **Section 7.3** | **Custodian and Investment Advisor.** The Trustee may appoint a custodian and an investment advisor to hold and invest the assets of the Trust. The custodian and the investment advisor shall serve at the pleasure of the Trustee, who may remove any one or more custodians and investment advisors and add one or more custodians and investment advisors at any time. The compensation of the custodians and investment advisors shall be determined from time to time by the Trustee, in the Trustee's sole discretion and cost. |

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| **Section 7.4** | **Reliance on Papers or Documents.** The Trustee may conclusively rely and shall be protected in acting or refraining from acting on any Authorization, written notice, instrument, or signature believed by Trustee to be genuine and to have been signed or presented by the party duly authorized to do so. The Trustee shall have no responsibility for the contents of any writing transmitted to Trustee by a Participating Mortuary and may rely without any liability upon any such writing. |

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| **Section 7.5** | **Indemnification.** Each Participating Mortuary participating in the Trust, for itself, its subsidiaries and affiliates, and their successors and assigns, agree to hold harmless and indemnify the Trustee, or any agent engaged by Trustee to assist in the administration or management of the Trust, from and against any and all claims, losses, damages, judgments, costs, expenses, and liabilities (including attorney fees and settlement costs) incurred in connection with any litigation or threatened litigation relating to the Trust to the extent the litigation arises out of events occurring by reason of the Trustee having followed the instructions of the Participating Mortuary a Funeral Director agent of any Participating Mortuary. This section shall survive termination of this Agreement. |

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<u>ARTICLE VIII Distribution of Earnings on Investments</u>

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| **Section 8.1** | **Declared Rate of Interest.** Beginning with the effective date of this agreement each Preneed Annuity Contract will have an annual declared rate of interest (the "Declared Rate"). The Declared Rate is guaranteed for five (5) years from the date of issue of the Preneed Annuity Contract. The Trustee shall make a partial withdrawal quarterly of the interest credited for the preceding [month][quarter][year] from each Preneed Annuity Contract and the Association shall receive the withdrawn funds within fifteen (15) days after close of the [month][quarter][year]. The Declared Rate at inception of this Agreement is 3.99%, subject to change pursuant to Section 8.3. The allocation will be as follows: 1% credited to the Association and 2.99% credited to the Preneed Annuity Contract for the Beneficiary. |

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| Section 8.2 | **In-force Preneed Contracts at Inception of Agreement.** All Preneed Contracts in force as of the effective date of this Agreement shall be credited at the same rate described in Section 8.1 upon conversion to a Preneed Annuity Contract once funds are received by the Trustee. |

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| Section 8.3 | **Change in Declared Rate.** The Declared Rate may change as economic or other circumstances dictate. Changes in Declared Rate will apply only to newly issued Preneed Annuity Contracts or to existing Preneed Annuity Contracts more than five (5) years past the Contract issue date. |

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| Section 8.4 | **Compensation payable to US Alliance.** <sup>For all of the</sup> administrative and management services to be provided by US Alliance to the Montana Funeral Trust as described in this Agreement, the Trustee shall pay to US Alliance as compensation a fee equal to fifty one-hundredths of one percent (.50%) of the funds held in the Montana Funeral Trust calculated as of the last business day of each calendar month during the term of this Agreement. Such fees shall be paid in monthly installments (equal to one- twelfth of .50% of the assets of the Montana Funeral Trust) with such payment being made within three (3) business days of the end of the calendar month for which the calculation is made. This form of compensation will continue until such time as Montana law changes to allow US Alliance's traditional form of compensation to be applicable to this Trust. |

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| Section 8.5 | **Fee Payable to the Montana Funeral Directors Association.** For all of its services in connection with the operation, promotion and establishment of the Montana Funeral Trust, US Alliance shall pay from the Trust a fee to the Montana Funeral Directors Association, in the same amount and at the same time, as the fee payable to US Alliance as described in the paragraph above. |

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<u><sup>ARTICLE IX</sup></u> <u>Amendment and Termination</u>

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| **Section 9.1** | **Amendment of Trust Agreement.** This Agreement may be amended at any time and from time to time by a vote of a majority of the Trustee and a majority vote of the Trust Committee. Notwithstanding the foregoing, no Amendment of this Agreement shall operate to deprive a Purchaser of any right or benefit to which the Purchaser is entitled under the terms of this Agreement prior to the Amendment. |

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| **Section 9.2** | **Termination of this Agreement upon Removal of Trustee.** This Agreement may be terminated without cause pursuant to the majority vote of the Trustee or the majority vote of the Trust Committee with six (6) months prior written notice by the terminating party to the other party. Trustee may resign at any time by providing sixty (60) days written notice to the Association. The Trustee may be removed as Trustee without cause by the Association, through action of the unanimous vote of the Trust Committee or by majority vote of the Association membership followed by the provision of sixty (60) days written notice to the Trustee of the removal; but in the case of more than one Trustee, neither the Association nor its Trust Committee may remove any single Trustee except by agreement of the majority of the remaining Trustees. Notwithstanding the above-stated notice provisions, the resignation or removal of a Trustee shall immediately take effect at the time a successor Trustee has been appointed and accepted the appointment. Upon termination of this Agreement or removal of Trustee, the Trust shall only be liable to the Trustee for Trustee's normal and customary fees and expenses incurred through the date of transfer of all Trust Funds to the successor Trustee, if the transfer is necessary and proper under the circumstances, and the Trustee shall provide a complete and satisfactory accounting of the status and condition of the Trust Funds as of the date of any transfer of the Trust Funds effectuated under this Article. |

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|:---|:---|
| **Section 9.3** | **Termination of Trust.** In the event of the termination of this Agreement and the Trust created in this Agreement, the Trustee will continue to hold the Preneed Funds in trust to be applied and distributed in accordance with the Preneed Contract. |

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|:---|:---|
| **Section 9.4** | **Appointment of Successor under this Article.** Upon resignation or removal of all Trustees pursuant to Section 9.2, a successor Trustee shall be appointed by the Association. If no successor Trustee is named by the Association within three (3) months after receipt of an instrument of resignation or an instrument of removal by the Trustee or the Association the Trustee may apply to a court of competent jurisdiction to name a successor Trustee under this Agreement. Any successor Trustee appointed under this Agreement shall execute, acknowledge, and deliver to the Association an instrument in writing accepting the appointment, and thereupon the successor Trustee, without any further act, deed, or conveyance, shall become vested with all of the estate, properties, rights, powers and duties of the Trustee's predecessor in the Trust with like effect as if originally named as Trustee in this Agreement. |

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<u><sup>ARTICLE X</sup></u> <u>Effect of Association Membership and Performance under this Agreement on Eligibility to Participate in Trust</u>

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|:---|:---|
| **Section 10.1** | **Membership in Association.** Eligibility for participation in the Trust is automatically afforded to members of the Association in good standing who have paid all fees required to be paid under this Agreement or to the Association. At the election of the unanimous vote of the Trust Committee, the failure of a Participating Mortuary to maintain its membership in good standing with the Association may act as a termination of this Agreement with the Participating Mortuary, only upon notice to the Participating Mortuary from the Association. The failure of a Participating Mortuary to observe and perform all the terms and conditions of this Agreement, or any rules or regulations promulgated by the Trustee, shall act as a termination of this Agreement as to the Participating Mortuary, only upon notice from the Trustee. Except as otherwise expressly provided in this Agreement, upon the termination neither the Participating Mortuary nor its Funeral Directors, nor any of their subsidiaries or affiliates shall have any further rights or be entitled to any benefits under this Agreement and they shall no longer participate in the Preneed program or the Trust unless otherwise reinstated in writing as a Participating Mortuary by the Association and the Trustee. |

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|:---|:---|
| **Section 10.2** | **Non-participation in Trust.** In the event a Participating Mortuary ceases to participate in the Trust for any reason, no further deposits from Purchasers into a Preneed Account will be accepted from the formerly Participating Mortuary or its Funeral Directors, provided, however, that the Preneed Accounts of Purchasers who contracted with the Participating Mortuary shall continue to be maintained by the Trustee at an annual fee to be paid by the Participating Mortuary to be determined by the Trustee in Trustee's sole and absolute discretion. The formerly Participating Mortuary shall be permitted to effect withdrawals and payments from Preneed Accounts by properly executed Authorizations pursuant to the provisions of Section 2.4(D). This Section shall survive the termination of this Agreement. |

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<u>ARTICLE XI General Provisions</u> 

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|:---|:---|
| **Section11.1** | **Reliance on Copies of Agreement.** Any person dealing with the Trustee may rely upon a copy of this Agreement and any amendments of it, certified to be a true and correct copy by the Trustee. |

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|:---|:---|
| **Section11.2** | **Counterparts.** This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, and all of which together will constitute one agreement binding on all parties hereto, notwithstanding that the parties have not signed the same counterpart. Specifically, a Funeral Director or Mortuary may become a party to this Agreement by signing an instrument which indicates that the Funeral Director or Mortuary intends to become a party and a Participating Member in the Trust, which instrument will be annexed to this Agreement and become a part of it. |

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|:---|:---|
| **Section11.3**  | **Interpretation of Laws.** Should any federal, state, or local law, rule, or regulation concerning the Preneed program, the Trust, or the Trustee be interpreted, enacted, or amended to change the duties or obligations of the Trustee, the Association, the Funeral Directors, the Participating Mortuaries, or the Preneed program as provided in this Agreement, the Trustee shall be entitled to make the modifications to this Agreement as may be necessary to conform to or include the interpretation, amendments, or changes. |

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|:---|:---|
| **Section11.4** | **Montana Law**. This Agreement and the Trust maintained under it shall be governed by and construed in accordance with the laws of the State of Montana. Insofar as is legally permissible, the parties designate the District Court of the First Judicial District of the State of Montana, In and For the County of Lewis and Clark, as the court having exclusive jurisdiction over the enforcement, modification, or interpretation of this Agreement. |

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|:---|:---|
| **Section11.5** | **Binding Agreement.** This Agreement shall be binding upon the Trustee and the Association and the successors and assigns of each. |

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|:---|:---|
| **Section11.6** | **Notice.** All notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally or electronically, or mailed (registered or certified mail, return receipt requested, postage prepaid) to the following addresses (unless all parties have been notified in writing by a party that it has changed such address): For Montana Funeral Directors Association PO Box 1003, Dillon, MT, 59725, <u>info@montanfda.org</u> |

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For US Alliance

1303 SW First American Pl, Suite 200, Topeka, KS 66604

<u>jack@usalliancelife.com</u>, <u>jeff.brown@usalliancelife.com</u>

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|:---|:---|
| **Section11.7**  | **Merger and Modification.** This Agreement merges all previous negotiations between the parties to this Agreement and constitutes the entire understanding of the parties with respect to the subject matter of this Agreement. An alteration, modification, or change of this Agreement is not valid except by an agreement in writing executed by the parties with the same formality as this Agreement. |

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|:---|:---|
| **Section11.8** | **Waiver.** A failure or delay by any party in exercising any right, power, or privilege under this Agreement (and no course of dealing between or among any of the parties) may not operate as a waiver of any such right, power, or privilege. A waiver of any default on any one occasion may not constitute a waiver of any subsequent or other default. A single or partial exercise of any right, power, or privilege may not preclude the further or full exercise of the right, power, or privilege. |

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|:---|:---|
| **Section11.9** | **Severability.** If any provision of this Agreement or the application of it to any person, entity, or circumstance is found to be invalid or unenforceable to any extent, the remainder of this Agreement and the application of the provision to other persons, entities, or circumstances are not affected and shall be enforced to the greatest extent permitted by law. |

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|:---|:---|
| **Section11.10** | **Representation by Counsel.** The Association has retained and been represented by Scott Peterson, Morrison Sherwood Wilson Deola, PLLP,401 North Last Chance Gulch, Helena, Montana 59601, in connection with the negotiations for and the drafting of this Agreement. Trustee has retained and been represented by Craig Charlton of Smith Law Firm, P.C. 26 W Sixth Avenue, Helena MT 59624, in connection with the negotiations for and the drafting of this Agreement. |

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**IN WITNESS WHEREOF,** the Parties have executed this Agreement effective as of the day and year first above written.

Montana Funeral Directors Association, Inc.

By: _________________________________

Its: ___________________________

US Alliance Life and Security Company

By: _________________________________

Its: ___________________________

## Exhibit 21.1

**EXHIBIT 21.1**

**US Alliance Corporation**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; Subsidiary | &nbsp;&nbsp;&nbsp; Jurisdiction | &nbsp;&nbsp;&nbsp; Percentage Ownership |
| &nbsp;&nbsp;&nbsp; US Alliance Life and Security Company | &nbsp;&nbsp;&nbsp; North Dakota | &nbsp;&nbsp;&nbsp; 100% |
| &nbsp;&nbsp;&nbsp; US Alliance Marketing Corporation | &nbsp;&nbsp;&nbsp; Kansas | &nbsp;&nbsp;&nbsp; 100% |
| &nbsp;&nbsp;&nbsp; US Alliance Investment Corporation | &nbsp;&nbsp;&nbsp; Kansas | &nbsp;&nbsp;&nbsp; 100% |
| &nbsp;&nbsp;&nbsp; US Alliance Life and Security Company - Montana | &nbsp;&nbsp;&nbsp; Montana | &nbsp;&nbsp;&nbsp; 100% |

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## Exhibit 31.1

**Exhibit 31.1**

**PRINCIPAL EXECUTIVE OFFICER'S CERTIFICATION** 

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, Jack H. Brier, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K of US Alliance Corporation (the "registrant");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| |
|:---|
| /s/ Jack H. Brier |
| Jack H. Brier |
| President and Chief Executive Officer |

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Date: March 17, 2026

## Exhibit 31.2

**Exhibit 31.2**

**PRINCIPAL FINANCIAL OFFICER**'**S CERTIFICATION** 

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, Jeff Brown, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K of US Alliance Corporation (the "registrant");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| |
|:---|
| /s/ Jeff Brown |
| Jeff Brown |
| Vice-President and Principal Financial Officer |

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Date: March 17, 2026

## Exhibit 32.1

**Exhibit 32.1**

**PRINCIPAL EXECUTIVE OFFICER**'**S CERTIFICATION** 

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

In connection with the Annual Report of US Alliance Corporation (the "Company") on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jack H. Brier, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| |
|:---|
| /s/ Jack H. Brier |
| Jack H. Brier |
| President and Chief Executive Officer |

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Date: March 17, 2026

## Exhibit 32.2

**Exhibit 32.2**

**PRINCIPAL FINANCIAL OFFICER**'**S CERTIFICATION** 

**PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002** 

In connection with the Annual Report of US Alliance Corporation (the "Company") on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jeff Brown, Vice-President and Principal Financial Officer of US Alliance Life and Security Company, a wholly-owned subsidiary of US Alliance Corporation, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

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| |
|:---|
| /s/ Jeff Brown |
| Jeff Brown |
| Vice-President and Principal Financial Officer |

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Date: March 17, 2026