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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2014	Mar. 16, 2015	Jun. 30, 2014
Document And Entity Information
Entity Registrant Name	KINGSTONE COMPANIES, INC.
Entity Central Index Key	0000033992
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 34,102,976
Entity Common Stock, Shares Outstanding		7,335,888
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014

Consolidated Balance Sheets - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Assets
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $5,395,054 at December 31, 2014 and $2,425,261 at December 31, 2013)	$ 5,128,735	$ 2,399,482
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $50,083,441 at December 31, 2014 and $28,079,902 at December 31, 2013)	51,120,859	28,436,022
Equity securities, available-for-sale, at fair value (cost of $7,621,309 at December 31, 2014 and $6,690,338 at December 31, 2013)	8,017,729	6,796,673
Total investments	64,267,323	37,632,177
Cash and cash equivalents	9,906,878	19,922,506
Premiums receivable, net of provision for uncollectible amounts	8,946,899	7,590,074
Receivables - reinsurance contracts	1,301,549	974,989
Reinsurance receivables, net of provision for uncollectible amounts	35,575,276	37,560,825
Deferred policy acquisition costs	8,985,981	6,860,263
Intangible assets, net	2,233,530	2,709,244
Property and equipment, net of accumulated depreciation	2,448,042	2,038,755
Other assets	1,330,944	1,494,989
Total assets	134,996,422	116,783,822
Liabilities
Loss and loss adjustment expense reserves	39,912,683	34,503,229
Unearned premiums	40,458,041	32,335,614
Advance premiums	1,006,582	776,099
Reinsurance balances payable	2,096,363	2,566,729
Deferred ceding commission revenue	5,956,540	6,984,166
Accounts payable, accrued expenses and other liabilities	3,928,137	3,215,487
Deferred income taxes	1,137,180	693,087
Total liabilities	94,495,526	81,074,411
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $.01 par value; authorized 2,500,000 shares
Common stock, $.01 par value; authorized 20,000,000 shares; issued 8,235,095 shares at December 31, 2014 and 8,186,031 shares at December 31, 2013; outstanding 7,308,757 shares at December 31, 2014 and 7,266,573 shares at December 31, 2013	82,351	81,860
Capital in excess of par	32,873,383	32,692,568
Accumulated other comprehensive income	946,332	305,219
Retained earnings	8,203,003	4,187,209
Total	42,105,069	37,266,856
Treasury stock, at cost, 926,338 shares at December 31, 2014 and 919,458 shares at December 31, 2013	(1,604,173)	(1,557,445)
Total stockholders' equity	40,500,896	35,709,411
Total liabilities and stockholders' equity	$ 134,996,422	$ 116,783,822

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Consolidated Balance Sheets Parenthetical
Fixed-maturity securities, held to maturity, fair value	$ 5,395,054	$ 2,425,261
Fixed-maturity securities, available for sale, amortized cost	50,083,441	28,079,902
Equity securities, available-for-sale, cost	$ 7,621,309	$ 6,690,338
Stockholders' Equity
Preferred stock,par value	$ 0.01	$ 0.01
Preferred stock,authorized shares	2,500,000	2,500,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued shares	8,235,095	8,186,031
Common stock, outstanding shares	7,308,757	7,266,573
Treasury stock, Shares	926,338	919,458

Consolidated Statements of Income and Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Revenues
Net premiums earned	$ 32,628,484	$ 22,225,167
Ceding commission revenue	13,910,111	11,673,103
Net investment income	1,799,768	1,170,051
Net realized gains on sales of investments	707,027	575,792
Other income	1,006,102	922,072
Total revenues	50,051,492	36,566,185
Expenses
Loss and loss adjustment expenses	17,032,188	13,586,533
Commission expense	12,125,328	9,362,793
Other underwriting expenses	10,656,265	9,018,685
Other operating expenses	1,487,345	1,099,370
Depreciation and amortization	874,907	646,483
Interest expense		75,734
Total expenses	42,176,033	33,789,598
Income from operations before taxes	7,875,459	2,776,587
Income tax expense	2,547,040	764,269
Net income	5,328,419	2,012,318
Other comprehensive income (loss), net of tax
Gross change in unrealized gains (losses) on available-for-sale-securities	1,678,410	(1,664,443)
Reclassification adjustment for gains included in net income	(707,027)	575,792
Net change in unrealized unrealized gains (losses)	971,383	(1,088,651)
Income tax (expense) benefit related to items of other comprehensive income (loss)	(330,270)	370,141
Other comprehensive income (loss), net of tax	641,113	(718,510)
Comprehensive income	$ 5,969,532	$ 1,293,808
Earnings per common share:
Basic	$ 0.73	$ 0.51
Diluted	$ 0.72	$ 0.50
Weighted average common shares outstanding
Basic	7,287,657	3,975,115
Diluted	7,356,962	4,059,724
Dividends declared and paid per common share	$ 0.18	$ 0.16

Consolidated Statement of Stockholders' Equity - USD ($)	Common Stock	Capital in Excess of Par	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock	Total
Beginning Balance, Amount at Dec. 31, 2012	$ 47,304	$ 13,851,036	$ 1,023,729	$ 2,787,292	$ (1,427,545)	$ 16,281,816
Beginning Balance, Shares at Dec. 31, 2012	4,730,357				889,458
Proceeds from public offering, net offering costs of $1,723,121, Shares	3,450,000
Proceeds from public offering, net offering costs of $1,723,121, Amount	$ 34,500	$ 18,769,879				18,804,379
Stock-based compensation, Shares
Stock-based compensation, Amount		59,959				59,959
Exercise of stock options, Shares	5,674
Exercise of stock options, Amount	$ 56	11,694				11,750
Acquisition of treasury stock, Amount					$ (129,900)	(129,900)
Acquisition of treasury stock, Shares					30,000
Dividends				(612,401)		(612,401)
Net income				2,012,318		2,012,318
Change in unrealized gains on available for sale securities, net of tax			(718,510)			(718,510)
Ending Balance, Amount at Dec. 31, 2013	$ 81,860	$ 32,692,568	$ 305,219	$ 4,187,209	$ (1,557,445)	35,709,411
Ending Balance, Shares at Dec. 31, 2013	8,186,031				919,458
Stock-based compensation, Shares
Stock-based compensation, Amount		$ 171,876				171,876
Exercise of stock options, Shares	66,229
Exercise of stock options, Amount	$ 663	$ 5,214				5,877
Shares deducted from exercise of stock options for payment of withholding taxes, Shares	(17,165)
Shares deducted from exercise of stock options for payment of withholding taxes, Amount	$ (172)	$ (133,246)				(133,418)
Excess tax benefit from exercise of stock options		136,971				136,971
Tax benefit from exercise of stock options
Acquisition of treasury stock, Amount					$ (46,728)	(46,728)
Acquisition of treasury stock, Shares					6,880
Dividends				$ (1,312,625)		(1,312,625)
Net income				5,328,419		5,328,419
Change in unrealized gains on available for sale securities, net of tax			641,113			641,113
Ending Balance, Amount at Dec. 31, 2014	$ 82,351	$ 32,873,383	$ 946,332	$ 8,203,003	$ (1,604,173)	$ 40,500,896
Ending Balance, Shares at Dec. 31, 2014	8,235,095				926,338

Condensed Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows provided by operating activities:
Net income	$ 5,328,419	$ 2,012,318
Adjustments to reconcile net income to net cash flows provided by operating activities:
Net realized gains on sale of investments	(707,027)	(575,792)
Depreciation and amortization	874,907	646,483
Amortization of bond premium, net	260,996	203,851
Stock-based compensation	171,876	59,959
Excess tax benefit from exercise of stock options	(136,971)
Deferred income tax expense	113,823	(724,053)
Increase (decrease) in operating liabilities:
Premiums receivable, net	(1,356,825)	176,751
Receivables - reinsurance contracts	(326,560)	(974,989)
Reinsurance receivables, net	1,985,549	1,341,957
Deferred policy acquisition costs	(2,125,718)	(1,290,385)
Other assets	273,481	358,414
(Decrease) increase in operating liabilities:
Loss and loss adjustment expense reserves	5,409,454	4,017,697
Unearned premiums	8,122,427	6,323,251
Advance premiums	230,483	165,227
Reinsurance balances payable	(470,366)	746,202
Advance payments from catastrophe reinsurers		(7,358,391)
Deferred ceding commission revenue	(1,027,626)	2,107,136
Accounts payable, accrued expenses and other liabilities	712,650	147,901
Net cash flows provided by operating activities	17,332,972	7,383,537
Cash flows used in investing activities:
Purchase - fixed-maturity securities held-to-maturity	(2,715,540)	(1,791,702)
Purchase - fixed-maturity securities available-for-sale	(28,826,537)	(9,124,949)
Purchase - equity securities available-for-sale	(8,520,581)	(6,073,138)
Sale or maturity - fixed-maturity securities available-for-sale	6,823,015	5,850,770
Sale - equity securities available-for-sale	7,970,324	4,868,193
Recovery of loss from failed bank	51,587
Other investing activities	(780,945)	(307,045)
Net cash flows used in investing activities	(25,998,677)	(6,577,871)
Cash flows (used in) provided by financing activities:
Net proceeds from issuance of common stock		18,804,379
Proceeds from line of credit		310,000
Principal payments on line of credit		(760,000)
Principal payments on notes payable (includes $378,000 to related parties)		(747,000)
Proceeds from exercise of stock options	5,877	11,750
Withholding taxes paid on net exercise of stock options	(133,418)
Excess tax benefit from exercise of stock options	136,971
Purchase of treasury stock	(46,728)	(129,900)
Dividends paid	(1,312,625)	(612,401)
Net cash flows (used in) provided by financing activities	(1,349,923)	16,876,828
(Decrease) increase in cash and cash equivalents	(10,015,628)	17,682,494
Cash and cash equivalents, beginning of period	19,922,506	2,240,012
Cash and cash equivalents, end of period	9,906,878	19,922,506
Supplemental disclosures of cash flow information:
Cash paid for income taxes	2,555,400	2,174,000
Cash paid for interest		108,839
Supplemental schedule of non-cash investing and financing activities:
Value of shares deducted from exercise of stock options for payment of withholding taxes	$ 133,418

1. Nature of Business	12 Months Ended
1. Nature of Business	Dec. 31, 2014
Notes to Financial Statements
1. Nature of Business	Kingstone Companies, Inc. (referred to herein as "Kingstone" or the “Company”), through its subsidiary Kingstone Insurance Company (“KICO”), underwrites property and casualty insurance to small businesses and individuals exclusively through independent agents and brokers. KICO is a licensed insurance company in the State of New York and the Commonwealth of Pennsylvania; however, KICO writes substantially all of its business in New York. Kingstone, through its subsidiary, Payments, Inc., a licensed premium finance company in the State of New York, receives fees for placing contracts with a third party licensed premium finance company (see Note 19 – Premium Finance Placement Fees).

2. Accounting Policies and Basis of Presentation

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

2. Accounting Policies and Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Principles of Consolidation

The consolidated financial statements consist of Kingstone and its wholly owned subsidiaries. Subsidiaries include: (1) KICO and its wholly owned subsidiaries, CMIC Properties, Inc. (“Properties”) and 15 Joys Lane, LLC (“15 Joys Lane”), which together own the land and building from which KICO operates, and (2) Payments Inc. All significant inter-company transactions have been eliminated in consolidation.

Revenue Recognition

Net Premiums Earned

Insurance policies issued by the Company are short-duration contracts. Accordingly, premium revenues, net of premiums ceded to reinsurers, are recognized as earned in proportion to the amount of insurance protection provided, on a pro-rata basis over the terms of the underlying policies. Unearned premiums represent premiums applicable to the unexpired portions of in-force insurance contracts at the end of each year.

Ceding Commission Revenue

Commissions on reinsurance premiums ceded are earned in a manner consistent with the recognition of the costs of the reinsurance, generally on a pro-rata basis over the terms of the policies reinsured. Unearned amounts are recorded as deferred ceding commission revenue. Certain reinsurance agreements contain provisions whereby the ceding commission rates vary based on the loss experience under the agreements. The Company records ceding commission revenue based on its current estimate of subject losses. The Company records adjustments to the ceding commission revenue in the period that changes in the estimated losses are determined.

Premium Finance Placement Fees

Premium finance placement fees are earned in the period when the contracts are placed with the third party premium finance company. Premium finance placement fees are included in “Other income” in the accompanying consolidated statements of income and comprehensive income (see Note 19 – Premium Finance Placement Fees).

Liability for Loss and Loss Adjustment Expenses (“LAE”)

The liability for loss and LAE represents management’s best estimate of the ultimate cost of all reported and unreported losses that are unpaid as of the balance sheet date. The liability for losses and LAE is estimated on an undiscounted basis, using individual case-basis valuations, statistical analyses and various actuarial procedures. The projection of future claim payment and reporting is based on an analysis of the Company’s historical experience, supplemented by analyses of industry loss data. Management believes that the reserves for loss and LAE are adequate to cover the ultimate cost of losses and claims to date; however, because of the uncertainty from various sources, including changes in reporting patterns, claims settlement patterns, judicial decisions, legislation, and economic conditions, actual loss experience may not conform to the assumptions used in determining the estimated amounts for such liability at the balance sheet date. As adjustments to these estimates become necessary, such adjustments are reflected in expense for the period in which the estimates are changed. Because of the nature of the business historically written, the Company’s management believes that the Company has limited exposure to environmental claim liabilities. The Company recognizes recoveries from salvage and subrogation when received.

Reinsurance

In the normal course of business, the Company seeks to reduce the loss that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers.

Reinsurance receivables represents management’s best estimate of paid and unpaid loss and LAE recoverable from reinsurers, and ceded losses receivable and unearned ceded premiums under reinsurance agreements. Ceded losses receivable are estimated using techniques and assumptions consistent with those used in estimating the liability for loss and LAE. Management believes that reinsurance receivables as recorded represent its best estimate of such amounts; however, as changes in the estimated ultimate liability for loss and LAE are determined, the estimated ultimate amount receivable from the reinsurers will also change. Accordingly, the ultimate receivable could be significantly in excess of or less than the amount indicated in the consolidated financial statements. As adjustments to these estimates become necessary, such adjustments are reflected in current operations. Loss and LAE incurred as presented in the consolidated statement of income and comprehensive income are net of reinsurance recoveries.

The Company accounts for reinsurance in accordance with GAAP guidance for accounting and reporting for reinsurance of short-duration contracts. Management has evaluated its reinsurance arrangements and determined that significant insurance risk is transferred to the reinsurers. Reinsurance agreements have been determined to be short-duration prospective contracts and, accordingly, the costs of the reinsurance are recognized over the life of the contract in a manner consistent with the earning of premiums on the underlying policies subject to the reinsurance contract.

In preparing the consolidated financial statements, management estimates uncollectible amounts receivable from reinsurers based on an assessment of factors including the creditworthiness of the reinsurers and the adequacy of collateral obtained, where applicable. There was no allowance for uncollectible reinsurance as of December 31, 2014 and 2013. The Company did not expense any uncollectible reinsurance for the years ended December 31, 2014 and 2013. Significant uncertainties are inherent in the assessment of the creditworthiness of reinsurers and estimates of any uncollectible amounts due from reinsurers. Any change in the ability of the Company’s reinsurers to meet their contractual obligations could have a detrimental impact on the consolidated financial statements and KICO’s ability to meet their regulatory capital and surplus requirements.

Cash and Cash Equivalents

Cash and cash equivalents are presented at cost, which approximates fair value. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company maintains its cash balances at several financial institutions. The Federal Deposit Insurance Corporation (“FDIC”) secures accounts up to $250,000 at these institutions.

Investments

The Company accounts for its investments in accordance with GAAP guidance for investments in debt and equity securities, which requires that fixed-maturity and equity securities that have readily determined fair values be segregated into categories based upon the Company’s intention for those securities.

In accordance with this guidance, the Company has classified its fixed-maturity securities as either held-to- maturity or available-for-sale and its equity securities as available-for-sale. The Company may sell its available-for-sale securities in response to changes in interest rates, risk/reward characteristics, liquidity needs or other factors. Fixed-maturity securities that the Company has the specific intent and ability to hold until maturity are classified as such and carried at amortized cost.

Available-for-sale securities are reported at their estimated fair values based on quoted market prices from a recognized pricing service, with unrealized gains and losses, net of tax effects, reported as a separate component of accumulated other comprehensive income in stockholders’ equity. Realized gains and losses are determined on the specific identification method and recognized in the statement of income and comprehensive income.

Investment income is accrued to the date of the consolidated financial statements and includes amortization of premium and accretion of discount on fixed-maturities. Interest is recognized when earned, while dividends are recognized when declared. As of December 31, 2014 and 2013, due and accrued investment income was $644,061 and $414,210, respectively, and is included in other assets on the accompanying consolidated balance sheets.

Impairment of investment securities results in a charge to operations when a market decline below cost is deemed to be other-than-temporary. The Company regularly reviews its fixed-maturity and equity securities portfolios to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of investments. In evaluating potential impairment, GAAP specifies (i) if management does not have the intent to sell a debt security prior to recovery and (ii) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When management does not intend to sell the security and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment (“OTTI”) of a debt security in earnings and the remaining portion in other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. For held-to-maturity debt securities, the amount of OTTI recorded in other comprehensive income for the noncredit portion of a previous OTTI is amortized prospectively over the remaining life of the security on the basis of timing of future estimated cash flows of the security. As of December 31, 2014 and 2013, none of the Company’s investments were deemed to be OTTI.

Fair Value

The fair value hierarchy in GAAP prioritizes fair value measurements into three levels based on the nature of the inputs. Quoted prices in active markets for identical assets or liabilities have the highest priority (“Level 1”), followed by observable inputs other than quoted prices, including prices for similar but not identical assets or liabilities (“Level 2”) and unobservable inputs, including the reporting entity’s estimates of the assumptions that market participants would use, having the lowest priority (“Level 3”).

For investments in active markets, the Company uses quoted market prices to determine fair value. In circumstances where quoted market prices are unavailable, the Company utilizes fair value estimates based upon other observable inputs including matrix pricing, benchmark interest rates, market comparables and other relevant inputs. The Company’s process to validate the market prices obtained from the outside pricing sources include, but are not limited to, periodic evaluation of model pricing methodologies and analytical reviews of certain prices.

Premiums Receivable

Premiums receivable are presented net of an allowance for doubtful accounts of approximately $127,000 and $145,000 as of December 31, 2014 and 2013, respectively. The allowance for uncollectible amounts is based on an analysis of amounts receivable giving consideration to historical loss experience and current economic conditions and reflects an amount that, in management’s judgment, is adequate. Uncollectible premiums receivable balances of approximately $146,000 and $88,000 were written off for the years ended December 31, 2014 and 2013, respectively.

Deferred Policy Acquisition Costs

Deferred policy acquisition costs represent the costs of writing business that vary with, and are primarily related to, the successful production of insurance business (principally commissions, premium taxes and certain underwriting salaries). Policy acquisition costs are deferred and recognized as expense as related premiums are earned.

Intangible Assets

The Company has recorded acquired identifiable intangible assets. In accounting for such assets, the Company follows GAAP guidance for intangible assets. The cost of a group of assets acquired in a transaction is allocated to the individual assets including identifiable intangible assets based on their relative fair values. Identifiable intangible assets with a finite useful life are amortized over the period that the asset is expected to contribute directly or indirectly to the future cash flows of the Company. Intangible assets with an indefinite life are not amortized, but are subject to annual impairment testing. All identifiable intangible assets are tested for recoverability whenever events or changes in circumstances indicate that a carrying amount may not be recoverable. Based on the results of the Company’s annual impairment testing, no impairment losses from intangible assets were recognized for the years ended December 31, 2014 and 2013.

Property and Equipment

Building and building improvements, furniture, computer equipment, and software are reported at cost less accumulated depreciation. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. The Company estimates the useful life for computer equipment, computer software, automobile, furniture and other equipment is three years, and building and building improvements is 39 years.

The Company reviews its real estate assets used as its headquarters to evaluate the necessity of recording impairment losses for market changes due to declines in the fair value of the property. In evaluating potential impairment, management considers the current estimated fair value compared to the carrying value of the asset. The fair value of the real estate assets is estimated to be in excess of the carrying value.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company files a consolidated tax return with its subsidiaries. The Company follows the relevant provisions of GAAP concerning uncertainties in income taxes and through December 31, 2014, the Company had no material unrecognized tax benefits and no adjustments to liabilities or operations were required.

Assessments

Insurance related assessments are accrued in the period in which they have been incurred. A typical obligating event would be the issuance of an insurance policy or the occurrence of a claim. The Company is subject to a variety of assessments.

Concentration and Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk are primarily cash and cash equivalents, investments, and premium and reinsurance receivables. Investments are diversified through many industries and geographic regions based upon KICO’s Investment Committee’s guidelines, which employs different investment strategies. The Company believes that no significant concentration of credit risk exists with respect to investments. As of December 31, 2014 and 2013, the Company had cash deposits in excess of the FDIC secured limit of $250,000 per account at financial institutions of approximately $6,041,000 and $3,046,000, respectively. Cash equivalents are not insured by the FDIC.

As of December 31, 2014 and 2013, the Company had deposits of cash equivalents as follows:

	December 31,		December 31,
	2014		2013
Collateralized bank repurchase agreement (1)	$	1,130,154	$	17,280,027
Money market fund		4,288,876		953,504
Total	$	5,419,030	$	18,233,531

(1) The Company has a security interest in certain of the bank's holdings of direct obligations of the United States or one or more agencies thereof. The collateral is held in a hold-in-custody arrangement with a third party who maintains physical possession of the collateral on behalf of the bank.

At December 31, 2014, the outstanding premiums receivable balance is generally diversified due to the number of insureds comprising the Company’s customer base, which is largely concentrated in the area of New York City and adjacent Long Island. The Company also has receivables from its reinsurers. Reinsurance contracts do not relieve the Company from its obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company periodically evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. See Note 7 for reinsurance recoverables on unpaid and paid losses by reinsurer. Management’s policy is to review all outstanding receivables at period end as well as the bad debt write-offs experienced in the past and establish an allowance for doubtful accounts, if deemed necessary.

Direct premiums earned from lines of business that subject the Company to concentration risk for the years ended December 31, 2014 and 2013 are as follows:

	Years ended December 31,
	2014			2013
Personal Lines		73.3	%		70.0	%
Commercial Lines		15.3	%		16.0	%
Total premiums earned subject to concentration		88.6	%		86.0	%
Premiums earned not subject to concentration		11.4	%		14.0	%
Total premiums earned		100.0	%		100.0	%

Use of Estimates

The preparation of financial statements in conformity with GAAP 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. Such estimates and assumptions, which include the reserves for losses and loss adjustment expenses, are subject to considerable estimation error due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of several years. In addition, estimates and assumptions associated with receivables under reinsurance contracts related to contingent ceding commission revenue require considerable judgment by management. On an on-going basis, management reevaluates its assumptions and the methods of calculating its estimates. Actual results may differ significantly from the estimates and assumptions used in preparing the consolidated financial statements.

Earnings per share

Basic earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding. Diluted earnings per common share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options. The computation of diluted earnings per share excludes those with an exercise price in excess of the average market price of the Company’s common shares during the periods presented.

Advertising Costs

Advertising costs are charged to operations when the advertising first takes place. Included in other underwriting expenses in the accompanying consolidated statements of income and comprehensive income are advertising costs approximating $71,000 and $55,000 for the years ended December 31, 2014 and 2013, respectively.

Stock-based Compensation

The Company records compensation expense associated with stock options and other equity-based compensation in accordance with guidance established by GAAP. Stock-based compensation expense in 2014 and 2013 is the estimated fair value of options granted amortized on a straight-line basis over the requisite service period for the entire portion of the award less an estimate for anticipated forfeitures.

Comprehensive Income

Comprehensive income refers to revenue, expenses, gains and losses that under GAAP are included in comprehensive income but are excluded from net income as these amounts are recorded directly as an adjustment to stockholders' equity, primarily from changes in unrealized gains/losses on available-for-sale securities.

Recent Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“ASU 2014-08”). ASU 2014-08 revised guidance to only allow disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity’s operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. ASU 2014-08 is effective for interim and annual reporting periods beginning after December 15, 2014. The Company is evaluating whether the adoption of ASU 2014-08 will have a significant impact on its consolidated results of operations, financial position or cash flows.

In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2016. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its consolidated results of operations, financial position or cash flows.

3. Investments

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

3. Investments

Available-for-Sale Securities

The amortized cost and fair value of investments in available-for-sale fixed-maturity securities and equity securities as of December 31, 2014 and December 31, 2013 are summarized as follows:

	December 31, 2014
													Net
	Cost or		Gross		Gross Unrealized Losses								Unrealized
	Amortized		Unrealized		Less than 12			More than 12			Fair		Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)

Fixed-Maturity Securities:
Political subdivisions of States,
Territories and Possessions	$	13,862,141	$	412,490	$	(23,813	)	$	(6,379	)	$	14,244,439	$	382,298

Corporate and other bonds
Industrial and miscellaneous		36,221,300		803,440		(118,092	)		(30,228	)		36,876,420		655,120
Total fixed-maturity securities		50,083,441		1,215,930		(141,905	)		(36,607	)		51,120,859		1,037,418

Equity Securities:
Preferred stocks		3,172,632		19,180		(2,647	)		(62,886	)		3,126,280		(46,352	)
Common stocks		4,448,677		444,950		-			(2,177	)		4,891,449		442,772
Total equity securities		7,621,309		464,130		(2,647	)		(65,063	)		8,017,729		396,420

Total	$	57,704,750	$	1,680,060	$	(144,552	)	$	(101,670	)	$	59,138,588	$	1,433,838

	December 31, 2013
													Net
	Cost or		Gross		Gross Unrealized Losses								Unrealized
	Amortized		Unrealized		Less than 12			More than 12			Fair		Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)

Fixed-Maturity Securities:
Political subdivisions of States,
Territories and Possessions	$	7,000,222	$	162,616	$	(49,491	)	$	(45,140	)	$	7,068,207	$	67,985

Corporate and other bonds
Industrial and miscellaneous		21,079,680		569,139		(179,810	)		(101,194	)		21,367,815		288,135
Total fixed-maturity securities		28,079,902		731,755		(229,301	)		(146,334	)		28,436,022		356,120

Equity Securities:
Preferred stocks		2,899,301		2,503		(251,525	)		(62,551	)		2,587,728		(311,573	)
Common stocks		3,791,037		470,606		(38,785	)		(13,913	)		4,208,945		417,908
Total equity securities		6,690,338		473,109		(290,310	)		(76,464	)		6,796,673		106,335

Total	$	34,770,240	$	1,204,864	$	(519,611)		$	(222,798)		$	35,232,695	$	462,455

A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of December 31, 2014 and 2013 is shown below:

	December 31, 2014				December 31, 2013
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	482,833	$	487,507	$	758,281	$	768,954
One to five years		11,640,381		11,943,127		9,025,386		9,466,973
Five to ten years		32,283,921		32,865,231		14,070,003		14,114,271
More than 10 years		5,676,306		5,824,994		4,226,232		4,085,824
Total	$	50,083,441	$	51,120,859	$	28,079,902	$	28,436,022

The actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without penalties.

Held-to-Maturity Securities

The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of December 31, 2014 and 2013 are summarized as follows:

	December 31, 2014
													Net
	Cost or		Gross		Gross Unrealized Losses								Unrealized
	Amortized		Unrealized		Less than 12			More than 12			Fair		Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)


U.S. Treasury securities	$	606,353	$	183,200	$	-		$	-		$	789,553	$	183,200

Political subdivisions of States,
Territories and Possessions		1,413,303		49,981		-			(12,247	)		1,451,037		37,734

Corporate and other bonds
Industrial and miscellaneous		3,109,079		98,306		(52,921	)		-			3,154,464		45,385

Total	$	5,128,735	$	331,487	$	(52,921)		$	(12,247)		$	5,395,054	$	266,319

	December 31, 2013
												Net
	Cost or		Gross		Gross Unrealized Losses							Unrealized
	Amortized		Unrealized		Less than 12			More than 12		Fair		Gains/
Category	Cost		Gains		Months			Months		Value		(Losses)


U.S. Treasury securities	$	606,138	$	46,915	$	-		$	-	$	653,053	$	46,915

Political subdivisions of States,
Territories and Possessions		208,697		-		(25,359	)		-		183,338		(25,359	)

Corporate and other bonds
Industrial and miscellaneous		1,584,647		4,223		-			-		1,588,870		4,223

Total	$	2,399,482	$	51,138	$	(25,359)		$	-	$	2,425,261	$	25,779

Held-to-maturity securities U.S. Treasury securities are held in trust pursuant to the New York State Department of Financial Services’ minimum funds requirement.

A summary of the amortized cost and fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of December 31, 2014 and 2013 is shown below:

	December 31, 2014				December 31, 2013
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	-	$	-	$	-	$	-
One to five years		-		-		-		-
Five to ten years		3,522,927		3,563,401		1,793,344		1,772,208
More than 10 years		1,605,808		1,831,653		606,138		653,053
Total	$	5,128,735	$	5,395,054	$	2,399,482	$	2,425,261

Investment Income

Major categories of the Company’s net investment income are summarized as follows:

	Year ended
	December 31,
	2014			2013

Income:
Fixed-maturity securities	$	1,665,534		$	1,018,857
Equity securities		483,175			390,818
Cash and cash equivalents		23,750			41
Other		(481	)		16,507
Total		2,171,978			1,426,223
Expenses:
Investment expenses		372,210			256,172
Net investment income	$	1,799,768		$	1,170,051

Proceeds from the sale and maturity of fixed-maturity securities were $6,823,015 and $5,850,770 for the years ended December 31, 2014 and 2013, respectively.

Proceeds from the sale of equity securities were $7,970,324 and $4,868,193 for the years ended December 31, 2014 and 2013, respectively.

The Company’s net realized gains and losses on investments are summarized as follows:

	Year ended
	December 31,
	2014			2013

Fixed-maturity securities:
Gross realized gains	$	323,455		$	237,886
Gross realized losses		(48,729	)		(73,910	)
		274,726			163,976

Equity securities:
Gross realized gains		497,023			551,912
Gross realized losses		(116,309	)		(140,096	)
		380,714			411,816

Cash and short term investments (1)		51,587			-

Net realized gains	$	707,027		$	575,792

(1) Realized gain on cash and short term investments is a partial recovery from the FDIC of an amount previously written off in 2009 due to the failure of Waterfield Bank.

Impairment Review

Impairment of investment securities results in a charge to operations when a market decline below cost is deemed to be other-than-temporary. The Company regularly reviews its fixed-maturity securities and equity securities portfolios to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of investments. In evaluating potential impairment, GAAP specifies (i) if the Company does not have the intent to sell a debt security prior to recovery and (ii) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When the Company does not intend to sell the security and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment (“OTTI”) of a debt security in earnings and the remaining portion in other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. For held-to-maturity debt securities, the amount of OTTI recorded in other comprehensive income for the noncredit portion of a previous OTTI is amortized prospectively over the remaining life of the security on the basis of timing of future estimated cash flows of the security.

OTTI losses are recorded in the consolidated statements of income and comprehensive income as net realized losses on investments and result in a permanent reduction of the cost basis of the underlying investment. The determination of OTTI is a subjective process and different judgments and assumptions could affect the timing of loss realization. At December 31, 2014, there were 35 securities that accounted for the gross unrealized loss. The Company determined that none of the unrealized losses were deemed to be OTTI for its portfolio of fixed-maturity investments and equity securities for the years ended December 31, 2014 and 2013. Significant factors influencing the Company’s determination that unrealized losses were temporary included the magnitude of the unrealized losses in relation to each security’s cost, the nature of the investment and management’s intent and ability to retain the investment for a period of time sufficient to allow for an anticipated recovery of fair value to the Company’s cost basis.

The Company held securities with unrealized losses representing declines that were considered temporary at December 31, 2014 and 2013 as follows:

	December 31, 2014
	Less than 12 months							12 months or more							Total
						No. of							No. of		Aggregate
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses

Fixed-Maturity Securities:
Political subdivisions of States, Territories andPossessions	$	3,013,648	$	(23,813	)		9	$	126,658	$	(6,379	)		1	$	3,140,306	$	(30,192	)

Corporate and otherbonds industrial and miscellaneous		6,325,579		(118,092	)		15		714,640		(30,228	)		2		7,040,219		(148,320	)

Total fixed-maturity securities	$	9,339,227	$	(141,905	)		24	$	841,298	$	(36,607	)		3	$	10,180,525	$	(178,512	)

Equity Securities:
Preferred stocks	$	656,325	$	(2,647	)		1	$	1,448,376	$	(62,886	)		6	$	2,104,701	$	(65,533	)
Common stocks		-		-			-		267,000		(2,177	)		1		267,000		(2,177	)

Total equity securities	$	656,325	$	(2,647	)		1	$	1,715,376	$	(65,063	)		7	$	2,371,701	$	(67,710	)

Total	$	9,995,552	$	(144,552)			25	$	2,556,674	$	(101,670)			10	$	12,552,226	$	(246,222)

	December 31, 2013
	Less than 12 months							12 months or more							Total
						No. of							No. of		Aggregate
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses

Fixed-Maturity Securities:

Political subdivisions of States, Territories andPossessions	$	2,015,437	$	(49,491	)		6	$	415,866	$	(45,140	)		2	$	2,431,303	$	(94,631	)

Corporate and other bonds industrial and miscellaneous		6,447,605		(179,810	)		24		1,430,377		(101,194	)		5		7,877,982		(281,004	)

Total fixed-maturity securities	$	8,463,042	$	(229,301	)		30	$	1,846,243	$	(146,334	)		7	$	10,309,285	$	(375,635	)

Equity Securities:
Preferred stocks	$	1,835,958	$	(251,525	)		8	$	444,100	$	(62,551	)		2	$	2,280,058	$	(314,076	)
Common stocks		879,525		(38,785	)		4		145,625		(13,913	)		1		1,025,150		(52,698	)

Total equity securities	$	2,715,483	$	(290,310	)		12	$	589,725	$	(76,464	)		3	$	3,305,208	$	(366,774	)

Total	$	11,178,525	$	(519,611)			42	$	2,435,968	$	(222,798)			10	$	13,614,493	$	(742,409)

4. Fair Value Measurements

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

4. Fair Value Measurements

The Company follows GAAP guidance regarding fair value measurements. The valuation technique used to fair value the financial instruments is the market approach which uses prices and other relevant information generated by market transactions involving identical or comparable assets.

This guidance establishes a three-level hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets or liabilities fall within different levels of the hierarchy, the classification is based on the lowest level input that is significant to the fair value measurement of the asset or liability. Classification of assets and liabilities within the hierarchy considers the markets in which the assets and liabilities are traded, including during period of market disruption, and the reliability and transparency of the assumptions used to determine fair value. The hierarchy requires the use of observable market data when available. The levels of the hierarchy and those investments included in each are as follows:

Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities traded in active markets. Included are those investments traded on an active exchange, such as the NASDAQ Global Select Market, U.S. Treasury securities and obligations of U.S. government agencies, together with corporate debt securities that are generally investment grade.

Level 2—Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Municipal and corporate bonds that are traded in less active markets are classified as Level 2. These securities are valued using market price quotations for recently executed transactions.

Level 3—Inputs to the valuation methodology are unobservable for the asset or liability and are significant to the fair value measurement. Material assumptions and factors considered in pricing investment securities and other assets may include appraisals, projected cash flows, market clearing activity or liquidity circumstances in the security or similar securities that may have occurred since the prior pricing period.

The availability of observable inputs varies and is affected by a wide variety of factors. When the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. The degree of judgment exercised by management in determining fair value is greatest for investments categorized as Level 3. For investments in this category, the Company considers prices and inputs that are current as of the measurement date. In periods of market dislocation, as characterized by current market conditions, the observability of prices and inputs may be reduced for many instruments. This condition could cause a security to be reclassified between levels.

The Company’s investments are allocated among pricing input levels at December 31, 2014 and 2013 as follows:

	December 31, 2014
($ in thousands)	Level 1		Level 2		Level 3		Total

Fixed-maturity investments available for sale

Political subdivisions of States, Territories and Possessions	$	-	$	14,244,439	$	-	$	14,244,439

Corporate and other bonds industrial and miscellaneous		29,257,850		7,618,570		-		36,876,420
Total fixed maturities		29,257,850		21,863,009		-		51,120,859
Equity investments		8,017,729		-		-		8,017,729
Total investments	$	37,275,579	$	21,863,009	$	-	$	59,138,588

	December 31, 2013
($ in thousands)	Level 1		Level 2		Level 3		Total

Fixed-maturity investments available for sale
Political subdivisions of States, Territories and Possessions	$	-	$	7,068,207	$	-	$	7,068,207

Corporate and other bonds industrial and miscellaneous		20,731,952		636,863		-		21,368,815
Total fixed maturities		20,731,952		7,705,070		-		28,437,022
Equity investments		6,796,673		-		-		6,796,673
Total investments	$	27,528,625	$	7,705,070	$	-	$	35,233,695

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

5. Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

5. Fair Value of Financial Instruments

GAAP requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the balance sheet, for which it is practicable to estimate fair value. The Company uses the following methods and assumptions in estimating its fair value disclosures for financial instruments:

Equity securities and fixed income securities available-for-sale: Fair value disclosures for these investments are included in “Note 3 - Investments.”

Cash and cash equivalents: The carrying values of cash and cash equivalents approximate their fair values because of the short-term nature of these instruments.

Premiums receivable, reinsurance receivables: The carrying values reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values due to the short term nature of the assets.

Real Estate: The fair value of the land and building included in property and equipment, which is used in the Company’s operations, approximates the carrying value. The fair value was based on an appraisal prepared using the sales comparison approach, and accordingly the real estate is a Level 3 asset under the fair value hierarchy.

Reinsurance balances payable: The carrying value reported in the consolidated balance sheets for these financial instruments approximates fair value.

The estimated fair values of the Company’s financial instruments are as follows:

	December 31, 2014				December 31, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value

Fixed-maturity securitied-held-to maturity	$	5,128,735	$	5,395,054	$	2,399,482	$	2,425,261
Cash and cash equivalents	$	9,906,878	$	9,906,878	$	19,922,506	$	19,922,506
Premiums receivable	$	8,946,899	$	8,946,899	$	7,590,074	$	7,590,074
Receivables - reinsurance contracts	$	1,301,549	$	1,301,549	$	974,989	$	974,989
Reinsurance receivables	$	35,575,276	$	35,575,276	$	37,560,825	$	37,560,825
Real estate, net of accumulated depreciation	$	1,762,345	$	1,816,122	$	1,777,942	$	1,816,122
Reinsurance balances payable	$	2,096,363	$	2,096,363	$	2,566,729	$	2,566,729

6. Intangibles

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

6. Intangibles

Intangible assets consist of finite and indefinite life assets. Finite life intangible assets include customer and producer relationships and other identifiable intangibles. Insurance company license is considered an indefinite life intangible asset subject to annual impairment testing. The weighted average amortization period of identified intangible assets of finite useful life is approximately 4.1 years as of December 31, 2014.

The components of intangible assets and their useful lives, accumulated amortization, and net carrying value as of December 31, 2014 and 2013 are summarized as follows:

		December 31, 2014						December 31, 2013
	Useful	Gross				Net		Gross				Net
	Life	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	(in yrs)	Value		Amortization		Amount		Value		Amortization		Amount
Insurance license	-	$	500,000	$	-	$	500,000	$	500,000	$	-	$	500,000
Customer relationships	10		3,400,000		1,870,000		1,530,000		3,400,000		1,530,000		1,870,000
Other identifiable intangibles	7		950,000		746,470		203,530		950,000		610,756		339,244
Total		$	4,850,000	$	2,616,470	$	2,233,530	$	4,850,000	$	2,140,756	$	2,709,244

Intangible asset impairment testing and amortization

The Company performs an analysis annually as of December 31 to identify potential impairment of intangible assets with both finite and indefinite lives and measures the amount of any impairment loss that may need to be recognized. Intangible asset impairment testing requires an evaluation of the estimated fair value of each identified intangible asset to its carrying value. An impairment charge would be recorded if the estimated fair value is less than the carrying amount of the intangible asset. No impairments have been identified in the years ended December 31, 2014 and 2013.

The Company recorded amortization expense related to intangibles of $475,714 for each of the years ended December 31, 2014 and 2013. The estimated aggregate amortization expense for the remaining life of finite life intangibles is as follows:

2015	$	475,714
2016		407,816
2017		340,000
2018		340,000
2019		170,000
	$	1,733,530

7. Reinsurance

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

7. Reinsurance

The Company’s quota share reinsurance treaties in effect for the year ended December 31, 2014 for its Personal Lines business, which primarily consists of homeowners’ policies, were covered under the July 1, 2013/June 30, 2014 and July 1, 2014/June 30, 2015 treaty years. The Company’s quota share reinsurance treaty in effect for the year ended December 31, 2014 for its Commercial Lines business was covered under the July 1, 2013/June 30, 2014 treaty year. The Company did not renew its expiring Commercial Lines quota share reinsurance treaty on July 1, 2014. The Company’s quota share reinsurance treaties in effect for the year ended December 31, 2013 for both its Personal Lines business and Commercial Lines business were covered under the July 1, 2012/June 30, 2013 and July 1, 2013/June 30, 2014 treaty years. The Company’s personal lines quota share treaty that covered the July 1, 2013/June 30, 2014 treaty year is a two year treaty expiring on June 30, 2015. Effective July 1, 2014, the Company had the option to increase the quota share percentage from 75% to a maximum of 85% or decrease the quota share percentage from 75% to a minimum of 55% by giving no less than 30 days advance notice. On May 12, 2014, the Company notified the personal lines reinsurers of its election to reduce the ceding percentage in the personal lines quota share treaty from 75% to 55% effective July 1, 2014. In addition to the change in the personal lines quota share treaty discussed above, the Company entered into new annual treaties with different terms effective July 1, 2014. The Company’s treaties for the July 1, 2012/June 30, 2013, July 1, 2013/ June 30, 2014 and July 1, 2014/June 30, 2015 treaty years provide for the following material terms:

	Treaty Year
	July 1, 2014			July 1, 2013			July 1, 2012
	to			to			to
Line of Busines	June 30, 2015			June 30, 2014			June 30, 2013

Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded		55	%		75	%		75	%
Risk retained	$	360,000		$	300,000		$	250,000
Losses per occurrence subject to quota share reinsurance coverage	$	800,000		$	1,200,000		$	1,000,000
Excess of loss coverage above quota share coverage	$	3,200,000		$	1,700,000		$	1,900,000
	in excess of			in excess of			in excess of
	$	800,000		$	1,200,000		$	1,000,000
Total reinsurance coverage per occurrence	$	3,640,000		$	2,600,000		$	2,650,000
Losses per occurrence subject to reinsurance coverage	$	4,000,000		$	2,900,000		$	2,900,000
Expiration date	June 30, 2015			June 30, 2015			June 30, 2013

Personal Umbrella
Quota share treaty:
Percent ceded - first million dollars of coverage		90	%		90	%		90	%
Percent ceded - excess of one million dollars of coverage		100	%		100	%		100	%
Risk retained	$	100,000		$	100,000		$	100,000
Total reinsurance coverage per occurrence	$	2,900,000		$	1,900,000		$	1,900,000
Losses per occurrence subject to quota share reinsurance coverage	$	3,000,000		$	2,000,000		$	2,000,000
Expiration date	June 30, 2015			June 30, 2014			June 30, 2013

Commercial Lines:
General liability commercial policies, except for commercial auto
Quota share treaty:
Percent ceded (terminated effective July 1, 2014)	None				25	%		40	%
Risk retained	$	400,000		$	300,000		$	300,000
Losses per occurrence subject to quota share reinsurance coverage	None			$	400,000		$	500,000
Excess of loss coverage above quota share coverage	$	3,600,000		$	2,500,000		$	2,400,000
	in excess of			in excess of			in excess of
	$	400,000		$	400,000		$	500,000
Total reinsurance coverage per occurrence	$	3,600,000		$	2,600,000		$	2,600,000
Losses per occurrence subject to reinsurance coverage	$	4,000,000		$	2,900,000		$	2,900,000

Commercial Auto:
Risk retained	$	300,000		$	300,000		$	250,000
Excess of loss coverage in excess of risk retained	$	1,700,000		$	1,700,000		$	1,750,000
	in excess of			in excess of			in excess of
	$	300,000		$	300,000		$	250,000
Catastrophe Reinsurance:
Initial loss subject to personal lines quota share treaty	$	4,000,000		$	4,000,000		$	3,000,000
Risk retained per catastrophe occurrence (1)	$	1,800,000		$	1,000,000		$	750,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)	$	137,000,000		$	86,000,000		$	70,000,000

(1)	Plus losses in excess of catastrophe coverage.

(2)

Effective July 1, 2014, the Company’s catastrophe treaty also covers losses caused by severe winter weather during any consecutive 28 day period. Effective July 1, 2014, the duration of a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone has been extended to 96 consecutive hours from 72 consecutive hours.

(3)	Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.

The single maximum risks per occurrence to which the Company is subject under the treaties that expired on June 30, 2014 and the new treaties effective July 1, 2014 are as follows:

	July 1, 2014 - June 30, 2015		July 1, 2013 - June 30, 2014
Treaty	Extent of Loss	Risk Retained	Extent of Loss	Risk Retained
Personal Lines	Initial $800,000	$360,000	Initial $1,200,000	$300,000
	$800,000 - $4,000,000	None(1)	$1,200,000 - $2,900,000	None(1)
	Over $4,000,000	100%	Over $2,900,000	100%

Personal Umbrella	Initial $1,000,000	$100,000	Initial $1,000,000	$100,000
	$1,000,000 - $3,000,000	None(1)	$1,000,000 - $2,000,000	None(1)
	Over $3,000,000	100%	Over $2,000,000	100%

Commercial Lines	Initial $400,000	$400,000	Initial $400,000	$300,000
	$400,000 - $4,000,000	None(1)	$400,000 - $2,900,000	None(1)
	Over $4,000,000	100%	Over $2,900,000	100%

Commercial Auto	Initial $300,000	$300,000	Initial $300,000	$300,000
	$300,000 - $2,000,000	None(1)	$300,000 - $2,000,000	None(1)
	Over $2,000,000	100%	Over $2,000,000	100%

Catastrophe (2)	Initial $4,000,000	$1,800,000	Initial $4,000,000	$1,000,000
	$4,000,000 - $141,000,000	None	$4,000,000 - $90,000,000	None
	Over $141,000,000	100%	Over $90,000,000	100%

________________

(1)	Covered by excess of loss treaties.

(2)	Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.

The Company’s reinsurance program is structured to enable the Company to significantly grow its premium volume while maintaining regulatory capital and other financial ratios generally within or below the expected ranges used for regulatory oversight purposes. The reinsurance program also provides income as a result of ceding commissions earned pursuant to the quota share reinsurance contracts. The Company’s participation in reinsurance arrangements does not relieve the Company of its obligations to policyholders.

Approximate reinsurance recoverables on unpaid and paid losses by reinsurer are as follows:

	Unpaid		Paid
($ in thousands)	Losses		Losses		Total		Security
December 31, 2014
Maiden Reinsurace Company	$	7,946	$	598	$	8,544	$	12,847	(1)
SCOR Reinsurance Company		2,843		194		3,037		-
Swiss Reinsurance America Corporation		3,652		359		4,011		-
Motors Insurance Corporation		931		8		939		500	(1)
Sirius American Insurance Company		908		22		930		-
Allied World Assurance Company		651		15		666		-
Others		1,319		273		1,592		110	(2)
Total	$	18,250	$	1,469	$	19,719	$	13,457

December 31, 2013
Maiden Reinsurace Company	$	6,929	$	732	$	7,661	$	13,868	(1)
SCOR Reinsurance Company		3,318		294		3,612		-
Swiss Reinsurance America Corporation		2,523		454		2,977		-
Motors Insurance Corporation		1,536		48		1,584		792	(1)
Sirius American Insurance Company		1,410		44		1,454		-
Allied World Assurance Company		665		39		704		-
Others		983		185		1,168		135	(2)
Total	$	17,364	$	1,796	$	19,160	$	14,795

(1) Secured pursuant to collateralized trust agreements.

(2) Guaranteed by an irrevocable letter of credit.

Assets held in the two trusts referred to in footnote (1) in the table above are not included in the Company’s invested assets and investment income earned on these assets is credited to the two reinsurers respectively. In addition to reinsurance recoverables on unpaid and paid losses, reinsurance receivables as of December 31, 2014 and 2013 include unearned ceded premiums of $15,856,387 and $18,400,338, respectively.

Ceding Commission Revenue

The Company earns ceding commission revenue under its quota share reinsurance agreements based on: (i) a fixed provisional commission rate at which provisional ceding commissions are earned, and (ii) a sliding scale of commission rates and ultimate treaty year loss ratios on the policies reinsured under each of these agreements based upon which contingent ceding commissions are earned. The sliding scale includes minimum and maximum commission rates in relation to specified ultimate loss ratios. The commission rate and contingent ceding commissions earned increases when the estimated ultimate loss ratio decreases and, conversely, the commission rate and contingent ceding commissions earned decreases when the estimated ultimate loss ratio increases.

The Company’s estimated ultimate treaty year loss ratios for treaties in effect for the year ended December 31, 2014 are attributable to contracts for the July 1, 2014/June 30, 2015 treaty year (“2014/2015 Treaties”) and the July 1, 2013/June 30, 2014 treaty year (“2013/2014 Treaties”). The Company’s estimated ultimate treaty year loss ratios for treaties in effect for the year ended December 31, 2013 are attributable to contracts for the July 1, 2012/June 30, 2013 treaty year (“2012/2013 Treaties”) and the 2013/2014 Treaties.

Treaties in effect for the year ended December 31, 2014

The Company’s estimated ultimate loss ratios (“Loss Ratios”) for the period July 1, 2014 through December 31, 2014, which are attributable to contracts for the 2014/2015 Treaties were lower than the contractual Loss Ratios at which the provisional ceding commissions are earned. Accordingly, for the six month period ended December 31, 2014, the Company recorded contingent ceding commission earned with respect to the 2014/2015 Treaties.

The Company’s estimated ultimate Loss Ratios for the period January 1, 2014 through December 31, 2014 attributable to contracts for the 2013/2014 Treaties were lower than the contractual Loss Ratios at which the provisional ceding commissions are earned. Accordingly, for the year ended December 31, 2014, the Company recorded contingent ceding commission earned with respect to the 2013/2014 Treaties.

Treaties in effect for year ended December 31, 2013

The Company’s estimated ultimate Loss Ratios for the period July 1, 2013 through December 31, 2013, which are attributable to contracts for the 2013/2014 Treaties, were lower than the contractual Loss Ratios at which the provisional ceding commissions were earned. Accordingly, for the six month period ended December 31, 2013, the Company’s recorded contingent ceding commission earned with respect to the 2013/2014 Treaties.

The Company’s estimated ultimate Loss Ratios for the period January 1, 2013 through December 31, 2013 attributable to contracts for the 2012/2013 Treaties were greater than the contractual Loss Ratios at which the provisional ceding commissions were earned. Accordingly, for the year ended December 31, 2013, the Company recorded negative contingent ceding commissions earned with respect to the 2012/2013 Treaties.

In addition to the treaties that were in effect for years ended December 31, 2014 and 2013, the estimated ultimate loss ratios from prior years’ treaties are subject to change as loss reserves from those periods increase or decrease, resulting in an increase or decrease in the commission rate and contingent ceding commissions earned.

Ceding commissions earned consists of the following:

	Years ended
	December 31,
	2014		2013

Provisional ceding commissions earned	$	12,456,411	$	11,007,342
Contingent ceding commissions earned		1,453,700		665,761
	$	13,910,111	$	11,673,103

Provisional ceding commissions are settled monthly. Balances due from reinsurers for contingent ceding commissions on quota share treaties are settled annually based on the loss ratio of each treaty year that ends on June 30. As discussed above, for the year ended December 31, 2013, the Company recorded negative contingent ceding commissions earned with respect to the 2012/2013 Treaties, which resulted in ceding commissions payable to reinsurers. There was no net contingent ceding commissions payable to reinsurers as of December 31, 2014 and 2013.

- Definition

The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6480758&loc=d3e6816-158387

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6486672&loc=d3e27374-158547

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.6,13)
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6480758&loc=d3e6811-158387

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6486672&loc=d3e27261-158547

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 55
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=34714010&loc=d3e27795-158548

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 605
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=34714010&loc=d3e27703-158548

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 310
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6485557&loc=d3e21549-158491

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 6
-Article 7

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 13
-Article 7

+ Details

8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

Policy acquisition costs incurred and policy-related ceding commission revenue are deferred, and amortized to income on property and casualty insurance business as follows:

	Year ended
	December 31,
	2014		2013

Net deferred policy acquisition costs net of ceding
commission revenue, beginning of year	$	(123,903)	$	692,848

Cost incurred and deferred:
Commissions and brokerage		13,612,109		10,500,068
Other underwriting and policy acquisition costs		4,426,614		3,193,910
Ceding commission revenue		(11,428,785)		(13,114,478)
Net deferred policy acquisition costs		6,609,938		579,500
Amortization		(3,456,594)		(1,396,251)
		3,153,344		(816,751)

Net deferred policy acquisition costs net of ceding
commission revenue, end of year	$	3,029,441	$	(123,903)

Ending balances for deferred policy acquisition costs and deferred ceding commission revenue as of December 31, 2014 and 2013 follows:

	December 31,
	2014		2013

Deferred policy acquisition costs	$	8,985,981	$	6,860,263
Deferred ceding commission revenue		(5,956,540)		(6,984,166)
Balance at end of period	$	3,029,441	$	(123,903)

9. Property and Equipment

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

9. Property and Equipment

The components of property and equipment are summarized as follows:

			Accumulated
	Cost		Depreciation			Net

December 31, 2014
Building	$	1,887,347	$	(253,624	)	$	1,633,723
Land		153,097		-			153,097
Furniture office equipment		366,392		(151,983	)		214,409
Computer equipment and software		1,019,647		(570,955	)		448,692
Automobile		81,394		(83,273	)		(1,879	)
Total	$	3,507,877	$	(1,059,835)		$	2,448,042

December 31, 2013
Building	$	1,760,435	$	(195,363	)	$	1,565,072
Land		153,097		-			153,097
Furniture		170,505		(79,885	)		90,620
Computer equipment and software		533,966		(307,382	)		226,584
Automobile		81,394		(78,012	)		3,382
Total	$	2,699,397	$	(660,642)		$	2,038,755

Depreciation expense for the years ended December 31, 2014 and 2013 was $399,193 and $170,769, respectively.

10. Property and Casualty Insurance Activity

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

10. Property and Casualty Insurance Activity

Premiums written, ceded and earned are as follows:

	Direct			Assumed			Ceded			Net

Year ended December 31, 2014
Premiums written	$	76,255,426		$	48,856		$	(33,009,420	)	$	43,294,862
Change in unearned premiums		(8,119,029	)		(3,398	)		(2,543,951	)		(10,666,378	)
Premiums earned	$	68,136,397		$	45,458		$	(35,553,371	)	$	32,628,484

Year ended December 31, 2013
Premiums written	$	60,449,077		$	45,746		$	(35,656,060	)	$	24,838,763
Change in unearned premiums		(6,341,750	)		18,499			3,709,655			(2,613,596	)
Premiums earned	$	54,107,327		$	64,245		$	(31,946,405	)	$	22,225,167

Premium receipts in advance of the policy effective date are recorded as advance premiums. The balance of advance premiums as of December 31, 2014 and 2013 was approximately $1,007,000 and $776,000, respectively.

The components of the liability for loss and LAE expenses and related reinsurance receivables as of December 31, 2014 and 2013 are as follows:

	Gross		Reinsurance
	Liability		Receivables
December 31, 2014
Case-basis reserves	$	24,064,175	$	11,930,330
Loss adjustment expenses		5,663,856		1,920,437
IBNR reserves		10,184,652		4,398,759
Recoverable on unpaid losses				18,249,526
Recoverable on paid losses		-		1,469,363
Total loss and loss adjustment expenses	$	39,912,683		19,718,889
Unearned premiums				15,856,387
Total reinsurance receivables			$	35,575,276

December 31, 2013
Case-basis reserves	$	22,489,240	$	12,078,399
Loss adjustment expenses		4,200,675		1,226,763
IBNR reserves		7,813,314		4,058,813
Recoverable on unpaid losses				17,363,975
Recoverable on paid losses		-		1,796,512
Total loss and loss adjustment expenses	$	34,503,229		19,160,487
Unearned premiums				18,400,338
Total reinsurance receivables			$	37,560,825

The following table provides a reconciliation of the beginning and ending balances for unpaid losses and LAE:

	Years ended
	December 31,
	2014			2013

Balance at beginning of period	$	34,503,229		$	30,485,532
Less reinsurance recoverables		(17,363,975	)		(18,419,694	)
Net balance, beginning of period		17,139,254			12,065,838

Incurred related to:
Current year		15,268,426			11,765,420
Prior years		1,763,762			1,821,113
Total incurred		17,032,188			13,586,533

Paid related to:
Current year		6,351,920			3,709,495
Prior years		6,156,365			4,803,622
Total paid		12,508,285			8,513,117

Net balance at end of period		21,663,157			17,139,254
Add reinsurance recoverables		18,249,526			17,363,975
Balance at end of period	$	39,912,683		$	34,503,229

Incurred losses and LAE are net of reinsurance recoveries under reinsurance contracts of $14,878,551 and $17,167,407 for the years ended December 31, 2014 and 2013, respectively.

Prior year incurred loss and LAE development is based upon estimates by line of business and accident year. The Company’s management continually monitors claims activity to assess the appropriateness of carried case and incurred but not reported (“IBNR”) reserves, giving consideration to Company and industry trends.

Loss and LAE reserves

The reserving process for loss and LAE reserves provides for the Company’s best estimate at a particular point in time of the ultimate unpaid cost of all losses and LAE incurred, including settlement and administration of losses, and is based on facts and circumstances then known and including losses that have been incurred but not yet been reported. The process includes using actuarial methodologies to assist in establishing these estimates, judgments relative to estimates of future claims severity and frequency, the length of time before losses will develop to their ultimate level and the possible changes in the law and other external factors that are often beyond the Company’s control. Several actuarial reserving methodologies are used to estimate required loss reserves. The process produces carried reserves set by management based upon the actuaries’ best estimate and is the result of numerous best estimates made by line of business, accident year, and loss and LAE. The amount of loss and LAE reserves for reported claims (“case reserve”) is based primarily upon a case-by-case evaluation of coverage, liability, injury severity, and any other information considered pertinent to estimating the exposure presented by the claim. The amounts of loss and LAE reserves for unreported claims and development on known claims (IBNR reserves) are determined using historical information by line of insurance as adjusted to current conditions. Since this process produces loss reserves set by management based upon the actuaries’ best estimate, there is no explicit or implicit provision for uncertainty in the carried loss reserves.

Due to the inherent uncertainty associated with the reserving process, the ultimate liability may differ, perhaps substantially, from the original estimate. Such estimates are regularly reviewed and updated and any resulting adjustments are included in the current year’s results. Reserves are closely monitored and are recomputed periodically using the most recent information on reported claims and a variety of statistical techniques. On at least a quarterly basis, the Company reviews by line of business existing reserves, new claims, changes to existing case reserves and paid losses with respect to the current and prior years. Several methods are used, varying by product line and accident year, in order to select the estimated year-end loss reserves. These methods include the following:

Paid Loss Development – historical patterns of paid loss development are used to project future paid loss emergence in order to estimate required reserves.

Incurred Loss Development – historical patterns of incurred loss development, reflecting both paid losses and changes in case reserves, are used to project future incurred loss emergence in order to estimate required reserves.

Paid Bornhuetter-Ferguson (“BF”) – an estimated loss ratio for a particular accident year is determined, and is weighted against the portion of the accident year claims that have been paid, based on historical paid loss development patterns. The estimate of required reserves assumes that the remaining unpaid portion of a particular accident year will pay out at a rate consistent with the estimated loss ratio for that year. This method can be useful for situations where an unusually high or low amount of paid losses exists at the early stages of the claims development process.

Incurred Bornhuetter-Ferguson (“BF”) - an estimated loss ratio for a particular accident year is determined, and is weighted against the portion of the accident year claims that have been reported, based on historical incurred loss development patterns. The estimate of required reserves assumes that the remaining unreported portion of a particular accident year will pay out at a rate consistent with the estimated loss ratio for that year. This method can be useful for situations where an unusually high or low amount of reported losses exists at the early stages of the claims development process.

Management’s best estimate of required reserves is generally based on an average of the methods above, with appropriate weighting of the various methods based on the line of business and accident year being projected. In some cases, additional methods or historical data from industry sources are employed to supplement the projections derived from the methods listed above.

Two key assumptions that materially affect the estimate of loss reserves are the loss ratio estimate for the current accident year used in the BF methods described above, and the loss development factor selections used in the loss development methods described above. The loss ratio estimates used in the BF methods are selected after reviewing historical accident year loss ratios adjusted for rate changes, trend, and mix of business.

The Company is not aware of any claims trends that have emerged or that would cause future adverse development that have not already been considered in existing case reserves and in its current loss development factors.

In New York State, lawsuits for negligence are subject to certain limitations and must be commenced within three years from the date of the accident or are otherwise barred. Accordingly, the Company’s exposure to unreported claims (‘pure’ IBNR) for accident years 2011 and prior is limited although there remains the possibility of adverse development on reported claims (‘case development’ IBNR).

The Company was previously a one-third participant in a pool arrangement. Effective November 1, 1997, the Company withdrew from its participation in the pool arrangement. Accordingly, the Company will only be participating in losses and allocated loss adjustment expenses that occurred prior to that date.

Commercial Auto Line of Business

Effective October 1, 2014 the Company decided that it will no longer accept applications for new commercial auto policies. The action was taken following a series of underwriting and pricing measures which were intended to improve the profitability of this line of business. The actions taken did not yield the hoped for results. In February 2015, the Company made the decision that it will no longer offer renewals on its existing commercial auto policies beginning with those that expire on or after May 1, 2015. The Company had 730 and 1,161 commercial auto policies in force as of December 31, 2014 and 2013, respectively.

11. Bank Line of Credit

12 Months Ended

Dec. 31, 2014

Bank Line Of Credit

11. Bank Line of Credit

On December 27, 2011, Kingstone executed a Promissory Note pursuant to a line of credit (together, the “Trustco Agreement”) with Trustco Bank (“Lender”). Under the Trustco Agreement, Kingstone may receive advances from Lender not to exceed an unpaid principal balance of $500,000 (the “Credit Limit”). On January 25, 2013, the Credit Limit was increased to $600,000. Advances extended under the Trustco Agreement will bear interest at a floating rate based on the Lender’s prime rate, which was 3.75% at December 31, 2014.

Interest only payments are due monthly. The principal balance is payable on demand, and must be reduced to zero for a minimum of thirty consecutive days during each year of the term of the Trustco Agreement. The line of credit is subject annual renewal at the discretion of the Lender. Lender may set off any depository accounts maintained by Kingstone that are held by Lender. Payment of amounts due pursuant to the Trustco Agreement is secured by all of Kingstone’s cash and deposit accounts, receivables, inventory and fixed assets, and is guaranteed by Kingstone’s subsidiary, Payments, Inc.

The line of credit is used for general corporate purposes.

There were no outstanding balances under the bank line of credit as of December 31, 2014 and 2013. The weighted average interest rate on the amount outstanding during the years ended December 31, 2014 and 2013 was 0% and 3.75%, respectively. There are no other fees in connection with this credit line. Interest expense on the line of credit for the years ended December 31, 2014 and 2013 was approximately $-0- and $7,000, respectively.

12. Stockholders' Equity

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

12. Stockholders' Equity

Dividend Declared

Dividends declared and paid on Common Stock were $1,312,625 and $612,401 for the years ended December 31, 2014 and 2013, respectively. The Company’s Board of Directors approved a quarterly dividend on February 6, 2015 of $.05 per share payable in cash on March 13, 2015 to stockholders of record as of February 27, 2015 (see Note 20).

Preferred Stock

On August 13, 2013, the Company’s stockholders approved an amendment to the Certificate of Incorporation of the Company to increase the number of authorized shares of Preferred Stock from 1,000,000 to 2,500,000. The Board of Directors has the authority to issue shares of Preferred Stock from time to time in a series and to fix, before the issuance of each series, the number of shares in each series and the designation, liquidation preferences, conversion privileges, rights and limitations of each series. There was no preferred stock issued as of December 31, 2014 and 2013.

Common Stock

On August 13, 2013, the Company’s stockholders approved an amendment to the Certificate of Incorporation of the Company to increase the number of authorized shares of Common Stock from 10,000,000 to 20,000,000.

On December 13, 2013, the Company closed on an underwritten public offering of 3,450,000 shares of its Common Stock, including 450,000 shares issued pursuant to the underwriter’s 30-day over-allotment option, at a public offering price of $5.95 per share. The aggregate net proceeds to the Company was approximately $18,804,000, after deducting underwriting discounts and commissions and other offering expenses of $1,723,000.

The Company used the net proceeds of the offering to contribute capital to its insurance subsidiary, KICO, to support growth, including possible product expansion, and to repay indebtedness. A registration statement relating to these securities was filed with the SEC and became effective on December 9, 2013.

Other Equity Compensation

For the years ended December 31, 2014 and 2013, there was no other equity compensation.

Stock Options

Pursuant to the Company’s 2005 Equity Participation Plan (the “2005 Plan”), which provides for the issuance of incentive stock options, non-statutory stock options and restricted stock, a maximum of 700,000 shares of the Company’s Common Stock are permitted to be issued pursuant to options granted and restricted stock issued. Effective August 12, 2014, the Company adopted the 2014 Equity Participation Plan (the “2014 Plan”) pursuant to which, subject to shareholder approval on or before August 12, 2015 a maximum of 700,000 shares of common stock of the Company are authorized to be issued pursuant to the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock and stock bonuses. Incentive stock options granted under the 2014 Plan and 2005 Plan expire no later than ten years from the date of grant (except no later than five years for a grant to a 10% stockholder). The Board of Directors or the Stock Option Committee determines the expiration date with respect to non-statutory stock options and the vesting provisions for restricted stock granted under the 2014 Plan and 2005 Plan.

The results of operations for the years ended December 31, 2014 and 2013 include stock-based stock option compensation expense totaling approximately $172,000 and $60,000, respectively. Stock-based compensation expense related to stock options for the years ended December 31, 2014 and 2013 is net of estimated forfeitures of 20% and 21%, respectively. Such amounts have been included in the consolidated statements of income and comprehensive income within other operating expenses.

Stock-based compensation expense in 2014 and 2013 is the estimated fair value of options granted amortized on a straight-line basis over the requisite service period for the entire portion of the award. The weighted average estimated fair value of stock options granted during the years ended December 31, 2014 and 2013 were $1.60 and $1.43 per share respectively. The fair value of options at the grant date was estimated using the Black-Scholes option-pricing method. The following weighted average assumptions were used for grants during the years ended December 31, 2014 and 2013:

	Years ended
	December 31,
	2014	2013
Dividend Yield	2.97%	2.42% - 3.14%
Volatility	40.53%	45.73% - 46.71%
Risk-Free Interest Rate	0.92%	0.61% - 0.79%
Expected Life	3.25 years	3.25 years

The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because the Company’s stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its stock options.

A summary of option activity under the Company’s 2005 Plan for the year ended December 31, 2014 is as follows:

Stock Options	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value

Outstanding at January 1, 2014		321,365		$	3.36		2.26	$	1,257,936

Granted (1)		200,000		$	6.73		-	$	284,000
Exercised		(100,115	)	$	2.49		-	$	466,816
Forfeited		-		$	-		-	$	-

Outstanding at December 31, 2014 (1)		421,250		$	5.16		3.13	$	1,258,013

Vested and Exercisable at December 31, 2014		232,500		$	4.22		2.15	$	912,913

(1)	On August 12, 2014, an additional 50,000 options were granted under the 2014 Plan, which is subject to shareholder approval.

The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2014 is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s Common Stock for the options that had exercise prices that were lower than the $8.15 closing price of the Company’s Common Stock on December 31, 2014. The total intrinsic value of options exercised in year ended December 31, 2014 was $466,816, determined as of the date of exercise.

Participants in the 2014 Plan and 2005 Plan may exercise their outstanding vested options, in whole or in part, by having the Company reduce the number of shares otherwise issuable by a number of shares having a fair market value equal to the exercise price of the option being exercised (“Net Exercise”). The Company received cash proceeds of $5,877 from the exercise of options for the purchase of 2,500 shares of Common Stock in the year ended December 31, 2014. The remaining 97,615 options exercised in 2014 were Net Exercises. The Company received cash proceeds of $11,750 from the exercise of options for the purchase of 5,000 shares of Common Stock in the year ended December 31, 2013. The remaining 1,250 options exercised in 2013 were Net Exercises.

As of December 31, 2014 and 2013, the fair value of unamortized compensation cost related to unvested stock option awards was approximately $156,000 and $71,000, respectively. Unamortized compensation cost as of December 31, 2014 is expected to be recognized over a remaining weighted-average vesting period of 1.08 years.

As of December 31, 2014, there were 1,135 shares reserved under the 2005 Plan and 650,000 shares reserved under the 2014 Plan.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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+ Details

13. Statutory Financial Information and Accounting Policies

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

13. Statutory Financial Information and Accounting Policies

For regulatory purposes, KICO prepares its statutory basis financial statements in accordance with Statements of Statutory Accounting Principles (“statutory basis” or “SAP”) as promulgated by the National Association of Insurance Commissioners (the “NAIC”) and the prescribed or permitted practices of the New York State Department of Financial Services (the “DFS”). The more significant SAP variances from GAAP are as follows:

●	Policy acquisition costs are charged to operations in the year such costs are incurred, rather than being deferred and amortized as premiums are earned over the terms of the policies.

●	Ceding commission revenues are earned when ceded premiums are written except for ceding commission revenues in excess of anticipated acquisition costs, which are deferred and amortized as ceded premiums are earned. GAAP requires that all ceding commission revenues be earned as the underlying ceded premiums are earned over the term of the reinsurance agreements.

●	Certain assets including certain receivables, a portion of the net deferred tax asset, prepaid expenses and furniture and equipment are not admitted.

●	Investments in fixed-maturity securities are valued at NAIC value for statutory financial purposes, which is primarily amortized cost. GAAP requires certain investments in fixed-maturity securities classified as available for sale, to be reported at fair value.

●	Certain amounts related to ceded reinsurance are reported on a net basis within the statutory basis financial statements. GAAP requires these amounts to be shown gross.

●	For SAP purposes, changes in deferred income taxes relating to temporary differences between net income for financial reporting purposes and taxable income are recognized as a separate component of gains and losses in surplus rather than included in income tax expense or benefit as required under GAAP.

State insurance laws restrict the ability of KICO to declare dividends. These restrictions are related to surplus and net investment income. Dividends are restricted to the lesser of 10% of surplus or 100% of investment income (on a statutory accounting basis) for the trailing 12 quarters. State insurance regulators require insurance companies to maintain specified levels of statutory capital and surplus. Generally, dividends may only be paid out of unassigned surplus, and the amount of an insurer’s unassigned surplus following payment of any dividends must be reasonable in relation to the insurer’s outstanding liabilities and adequate to meet its financial needs. For the years ended December 31, 2014 and 2013, KICO paid dividends of $1,500,000 and $700,000, respectively. On February 26, 2015, KICO’s Board of Directors approved a cash dividend of $400,000 to Kingstone, which was paid on February 28, 2015. For the years ended December 31, 2014 and 2013, KICO had statutory basis net income of $3,617,139 and $3,057,740, respectively. At December 31, 2014 and 2013, KICO had reported statutory basis surplus as regards policyholders of $34,425,381 and $31,829,876, respectively, as filed with the DFS.

14. Risk Based Capital

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

14. Risk Based Capital

State insurance departments impose risk-based capital (“RBC”) requirements on insurance enterprises. The RBC Model serves as a benchmark for the regulation of insurance companies by state insurance regulators. RBC provides for targeted surplus levels based on formulas, which specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk, and are set forth in the RBC requirements. Such formulas focus on four general types of risk: (a) the risk with respect to the company’s assets (asset or default risk); (b) the risk of default on amounts due from reinsurers, policyholders, or other creditors (credit risk); (c) the risk of underestimating liabilities from business already written or inadequately pricing business to be written in the coming year (underwriting risk); and, (d) the risk associated with items such as excessive premium growth, contingent liabilities, and other items not reflected on the balance sheet (off-balance sheet risk). The amount determined under such formulas is called the authorized control level RBC (“ACLC”).

The RBC guidelines define specific capital levels based on a company’s ACLC that are determined by the ratio of the company’s total adjusted capital (“TAC”) to its ACLC. TAC is equal to statutory capital, plus or minus certain other specified adjustments. The Company is in compliance with RBC requirements as of December 31, 2014 and 2013.

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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+ Details

15. Income Taxes

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

15. Income Taxes

The Company files a consolidated U.S. federal income tax return that includes all wholly owned subsidiaries. State tax returns are filed on a consolidated or separate basis depending on applicable laws. The Company records adjustments related to prior years’ taxes during the period when they are identified, generally when the tax returns are filed. The effect of these adjustments on the current and prior periods (during which the differences originated) is evaluated based upon quantitative and qualitative factors and are considered in relation to the financial statements taken as a whole for the respective periods. The Company has evaluated this year’s amounts in relation to the current and prior reporting periods and determined that a restatement of those prior reporting periods is not appropriate.

The provision for income taxes is comprised of the following:

Years ended December 31,	2014		2013

Current federal income tax expense	$	2,418,621	$	1,473,370
Current state income tax expense		14,596		14,952
Deferred federal and state income tax expense (benefit)		113,823		(724,053	)
Provision for income taxes	$	2,547,040	$	764,269

A reconciliation of the federal statutory rate to the effective tax rate is as follows:

Years ended December 31,	2014					2013
Computed expected tax expense	$	2,677,656		34.0	%	$	944,040		34.0	%
State taxes, net of Federal benefit		(99,356	)	(1.3	)		(48,411	)	(1.8	)
State valuation allowance		139,137		1.8			85,821		3.1
Permanent differences
Dividends received deduction		(114,996	)	(1.5	)		(91,163	)	(3.3	)
Non-taxable investment income		(92,283	)	(1.2	)		(43,905	)	(1.5	)
Other permanent differences		86,193		1.1			25,709		0.9
Prior year tax matters		(53,556	)	(0.7	)		(52,145	)	(1.9	)
Other		4,245		0.1			(55,677	)	(2.0	)
Total tax	$	2,547,040		32.3	%	$	764,269		27.5	%

Deferred tax assets and liabilities are determined using the enacted tax rates applicable to the period the temporary differences are expected to be recovered. Accordingly, the current period income tax provision can be affected by the enactment of new tax rates. The net deferred income taxes on the balance sheet reflect temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and income tax purposes, tax effected at a various rates depending on whether the temporary differences are subject to federal taxes, state taxes, or both. Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,			December 31,
	2014			2013

Deferred tax asset:
Net operating loss carryovers (1)	$	211,550		$	246,476
Claims reserve discount		562,941			445,384
Unearned premium		1,741,360			1,000,372
Deferred ceding commission revenue		2,025,224			2,374,616
Other		88,148			17,087
Total deferred tax assets		4,629,223			4,083,935

Deferred tax liability:
Investment in KICO (2)		1,169,000			1,169,000
Deferred acquisition costs		3,055,234			2,332,489
Intangibles		759,400			921,143
Depreciation and amortization		291,689			197,223
Net unrealized appreciation of securities - available for sale		491,080			157,167
Total deferred tax liabilities		5,766,403			4,777,022

Net deferred income tax liability	$	(1,137,180	)	$	(693,087	)

(1)	The deferred tax assets from net operating loss carryovers are as follows:

	December 31,			December 31,
Type of NOL	2014			2013			Expiration
State only (A)	$	567,188		$	459,989		December 31, 2034
Valuation allowance		(372,638	)		(240,713	)
State only, net of valuation allowance		194,550			219,276
Amount subject to Annual Limitation, federal only (B)		17,000			27,200		December 31, 2019
Total deferred tax asset from net operating loss carryovers	$	211,550		$	246,476

(A) Kingstone generates operating losses for state purposes and has prior year net operating loss carryovers available. The state net operating loss carryover as of December 31, 2014 and December 31, 2013 was approximately $6,834,000 and $5,416,000, respectively. KICO, the Company’s insurance underwriting subsidiary, is not subject to state income taxes. KICO’s state tax obligations are paid through a gross premiums tax, which is included in the consolidated statements of income and comprehensive income within other underwriting expenses. A valuation allowance has been recorded due to the uncertainty of generating enough state taxable income to utilize 100% of the available state net operating loss carryovers over their remaining lives, which expire between 2027 and 2034.

(B) The Company has an NOL of $50,000 that is subject to Internal Revenue Code Section 382, which places a limitation on the utilization of the federal net operating loss to approximately $10,000 per year (“Annual Limitation”) as a result of a greater than 50% ownership change of the Company in 1999. The losses subject to the Annual Limitation will be available for future years, expiring through December 31, 2019.

(2)	Deferred tax liability - investment in KICO

On July 1, 2009, the Company completed the acquisition of 100% of the issued and outstanding common stock of KICO (formerly known as Commercial Mutual Insurance Company (“CMIC”)) pursuant to the conversion of CMIC from an advance premium cooperative to a stock property and casualty insurance company. Pursuant to the plan of conversion, the Company acquired a 100% equity interest in KICO, in consideration for the exchange of $3,750,000 principal amount of surplus notes of CMIC. In addition, the Company forgave all accrued and unpaid interest on the surplus notes as of the date of conversion. As of the date of acquisition, unpaid accrued interest on the surplus notes along with the accretion of the discount on the original purchase of the surplus notes totaled $2,921,319 (together “Untaxed Interest”). As of the date of acquisition, the deferred tax liability on the Untaxed Interest was $1,169,000. Under GAAP guidance for business combinations, a temporary difference with an indefinite life exists when the parent has a lower carrying value of its subsidiary for income tax purposes. The Company is required to maintain its deferred tax liability of $1,169,000 related to this temporary difference until the stock of KICO is sold, or the assets of KICO are sold or KICO and the parent are merged.

The table below reconciles the changes in net deferred income tax liability to the deferred income tax provision for the year ended December 31, 2014:

Change in net deferred income tax liabilities	$	444,093
Deferred tax expense allocated to other comprehensive income		330,270
Deferred income tax provision	$	113,823

In assessing the valuation of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. No valuation allowance against deferred tax assets has been established, except for NOL limitations, as the Company believes it is more likely than not the deferred tax assets will be realized based on the historical taxable income of KICO, or by offset to deferred tax liabilities.

The Company had no material unrecognized tax benefit and no adjustments to liabilities or operations were required. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the years ended December 31, 2014 and 2013. If any had been recognized these would be reported in income tax expense.

IRS Tax Audit

The tax returns for years ended December 31, 2011 through 2013 are subject to examination, generally for three years after filing.

In March 2014, the Company received a notice that its federal income tax returns for the years ended December 31, 2011 and 2012 were selected for examination by the Internal Revenue Service. On March 31, 2014, the Company was notified that the examination was cancelled.

16. Employee Benefit Plans	12 Months Ended
16. Employee Benefit Plans	Dec. 31, 2014
Notes to Financial Statements
16. Employee Benefit Plans	KICO maintains a salary reduction plan under Section 401(k) of the Internal Revenue Code (“the 401(k) Plan”) for its qualified employees. KICO matches 100% of each participant’s contribution up to 4% of the participant’s eligible contribution. The Company, at its discretion, may allocate an amount for additional contributions (“Additional Contributions”) to the 401(k) Plan. The Company incurred approximately $367,000 and $270,000 of expense for the years ended December 31, 2014 and 2013, respectively, related to the 401(k) Plan. For the years ended December 31, 2014 and 2013, Additional Contributions totaled approximately $229,000 and $156,000, respectively.

17. Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

17. Commitments and Contingencies

Litigation

From time to time, the Company is involved in various legal proceedings in the ordinary course of business. For example, to the extent a claim asserted by a third party in a lawsuit against one of the Company’s insureds covered by a particular policy, the Company may have a duty to defend the insured party against the claim. These claims may relate to bodily injury, property damage or other compensable injuries as set forth in the policy. Such proceedings are considered in estimating the liability for loss and LAE expenses. The Company is not subject to any other pending legal proceedings that management believes are likely to have a material adverse effect on the financial statements.

State Insurance Regulation

In the aftermath of Superstorm Sandy, the DFS adopted various regulations that affect insurance companies that operate in the state of New York. Included among the regulations are accelerated claims investigation and settlement requirements and mandatory participation in non-binding mediation proceedings funded by the insurer. Further, in February 2013, the state of New York announced that the DFS commenced an investigation into the claims practices of three insurance companies, including KICO, in connection with Superstorm Sandy claims. The DFS stated that the three insurers had a much larger than average consumer complaint rate with regard to Superstorm Sandy claims and indicated that the three insurers were being investigated for (i) failure to send adjusters in a timely manner; (ii) failure to process claims in a timely manner; and (iii) inability of homeowners to contact insurance company representatives. KICO received a letter from the DFS seeking information and data with regard to the foregoing. KICO has cooperated with the DFS in connection with its investigation. On March 14, 2013, KICO supplied requested information and met with the DFS on May 23, 2013. KICO has not received a response from the DFS since its meeting on May 23, 2013 and believes that such matter will not have any effect on the Company’s financial position or results of operations.

Employment Agreements

Chief Executive Officer (Kingstone)

Effective August 12, 2014, the Company entered into an amendment to its employment agreement with Barry Goldstein, its President, Chairman of the Board and Chief Executive Officer (as amended, the “Goldstein Employment Agreement”), pursuant to which the term of the employment agreement was extended from December 31, 2014 to December 31, 2016 and, effective July 1, 2014 and continuing through the term of the agreement, Mr. Goldstein’s annual base salary was increased to $575,000 and his bonus was revised to equal 6% of the Company’s consolidated income from operations before taxes, net of the Company’s consolidated net investment income and net realized gains on sales of investments. In addition, in consideration of Mr. Goldstein entering into the amendment, the Company paid him a bonus in the amount of $62,500.

Concurrently with the amendment, the Company granted to Mr. Goldstein, pursuant to the 2005 Plan, a five year option for the purchase of 200,000 shares of common stock at an exercise price of $6.73 per share, exercisable to the extent of 62,500 shares on the date of grant and each of the initial two anniversary dates of the grant and 12,500 shares on the third anniversary date of the grant. In addition, the Company granted to Mr. Goldstein, pursuant to the 2014 Plan, a five year option for the purchase of 50,000 shares of common stock at an exercise price of $6.73 per share, exercisable on the third anniversary of the date of the grant. The 50,000 share option grant is subject to shareholder approval of the 2014 Plan. Pursuant to the stock option agreements with Mr. Goldstein, the Company agreed that, under certain circumstances following a change of control of the Company, and the termination of his employment, or in the event Mr. Goldstein’s employment with the Company is terminated by the Company without cause or he resigns with good reason (each as defined in his employment agreement), all of the options granted to Mr. Goldstein would become exercisable and would remain exercisable until the first anniversary of the termination date.

Pursuant to the Goldstein Employment Agreement, the Company also agreed that, under certain circumstances following a change of control of Kingstone Companies, Inc. and the termination of his employment, Mr. Goldstein would be entitled to a payout equal to one and one-half times his then annual salary. In the event of termination of Mr. Goldstein’s employment by the Company without cause or he resigns with good reason (as each term is defined in the Goldstein Employment Agreement), Mr. Goldstein would be entitled to receive his base salary and bonuses from the Company for the remainder of the term, and his outstanding options would become exercisable and would remain exercisable until the first anniversary of the termination date. In addition, in the event Mr. Goldstein’s employment with KICO is terminated by KICO with or without cause, he would be entitled to receive a lump sum payment from KICO equal to six months base salary.

Executive Vice President (KICO)

John D. Reiersen, KICO’s Executive Vice President, is employed pursuant to an employment agreement effective as of November 13, 2006 and amended as of January 25, 2008, February 28, 2011 and October 14, 2013 (together, the “Reiersen Agreement”). The Reiersen Agreement expires on December 31, 2016 and may be terminated by KICO at any time with or without cause upon written notice. In the event of termination by KICO, Mr. Reiersen will be entitled to receive severance in an amount equal to the lesser of $50,000 or the remaining salary payable to him through the term of his agreement. Pursuant to the Reiersen Agreement, Mr. Reiersen’s minimum annual salary effective from January 1, 2012 through December 31, 2014 is $100,000. His minimum annual salary effective January 1, 2015 will be $105,000. His minimum salary in both periods is subject to increase based upon the provision of more than 500 hours of service per year on behalf of KICO. Mr. Reiersen also receives additional customary benefits and a $2,000 annual fee for his position as a director of KICO.

Approval Required for Transactions with Subsidiary

On July 1, 2009, Kingstone completed the acquisition of 100% of the issued and outstanding common stock of KICO (formerly known as Commercial Mutual Insurance Company (“CMIC”)) pursuant to the conversion of CMIC from an advance premium cooperative to a stock property and casualty insurance company. Pursuant to the plan of conversion, Kingstone acquired a 100% equity interest in KICO. In connection with the plan of conversion of CMIC, the Company has agreed with the Department of Financial Services that any intercompany transaction between itself and KICO must be filed with the Department 30 days prior to implementation.

18. Earnings Per Common Share

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

18. Earnings Per Common Share

Basic net earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options. The computation of diluted earnings per share excludes those options with an exercise price in excess of the average market price of the Company’s common shares during the periods presented.

The computation of diluted earnings per share excludes outstanding options in periods where the exercise of such options would be anti-dilutive. For the years ended December 31, 2014 and 2013, the inclusion of 63,356 and 27,094 options in the computation of diluted earnings per share would have been anti-dilutive for the periods and, as a result, the weighted average number of common shares used in the calculation of diluted earnings per common has not been adjusted for the effect of such options.

The reconciliation of the weighted average number of shares of Common Stock used in the calculation of basic and diluted earnings per common share for the years ended December 31, 2014 and 2013 follows:

	Year ended
	December 31,
	2014		2013

Weighted average number of shares outstanding		7,287,657		3,975,115
Effect of dilutive securities, common share equivalents		69,305		84,609

Weighted average number of shares outstanding,
used for computing diluted earnings per share		7,356,962		4,059,724

19. Premium Finance Placement Fees

12 Months Ended

Dec. 31, 2014

Premium Finance Placement Fees

19. Premium Finance Placement Fees

The Company’s wholly owned subsidiary, Payments Inc. (“Payments”), is licensed as a premium finance agency in the state of New York. Prior to February 1, 2008, Payments provided premium financing in connection with the obtaining of insurance policies. Effective February 1, 2008, Payments sold its outstanding premium finance loan portfolio. The purchaser of the portfolio (the “Purchaser”) agreed that, during the five year period ended February 1, 2013 (which period was extended to February 1, 2015), it will purchase, assume and service all eligible premium finance contracts originated by Payments in the state of New York (the “Agreement”). In connection with such purchases, Payments will be entitled to receive a fee generally equal to a percentage of the amount financed.

On July 17, 2014, the Purchaser terminated the Agreement effective February 1, 2015. Following any expiration or termination of the obligation of the Purchaser to purchase premium finance contracts, Payments will be entitled to receive the fees for an additional two years with regard to contracts for policies from the Company’s producers. The Company’s premium financing business currently consists of the placement fees that Payments earns from placing contracts.

Placement fee revenue included in other income and the related direct expenses included in other operating expenses in the consolidated statements of net income and comprehensive income are as follows:

	For the Year Ended
	December 31,
	2014		2013

Placement fee revenue	$	229,738	$	302,078
Direct expenses		62,610		63,949
Net income before taxes from placement fees	$	167,128	$	238,129

20. Subsequent Event

12 Months Ended

Dec. 31, 2014

Notes to Financial Statements

20. Subsequent Event

The Company has evaluated events that occurred subsequent to December 31, 2014 through the date these consolidated financial statements were issued for matters that required disclosure or adjustment in these consolidated financial statements.

Dividends Declared and Paid

On February 6, 2015, the Company’s Board of Directors approved a dividend of $.05 per share, or $365,505, payable in cash on March 13, 2015 to stockholders of record as of February 27, 2015.

Commercial Auto Line of Business

The Company had previously decided effective October 1, 2014, that it will no longer accept applications for new commercial auto policies. The action was taken following a series of underwriting and pricing measures which were intended to improve the profitability of this line of business. The actions taken did not yield the hoped for results. In February 2015, the Company made the decision that it will no longer offer renewals on its existing commercial auto policies, beginning with those that expire on or after May 1, 2015.

21. Quarterly Financial Data

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

21. Quarterly Financial Data

The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2014 and 2013:

	2014
	March 31,	June 30,	September 30,	December 31,	Total

Net premiums earned	$ 5,926,311	$ 6,429,373	$ 9,895,000	$ 10,377,800	$ 32,628,484
Ceding commission revenue	3,381,283	3,706,049	3,278,319	3,544,460	13,910,111
Net investment income	378,788	451,915	463,513	505,552	1,799,768
Net realized gain on sale of investments	188,348	134,602	115,176	268,901	707,027
Total revenues	10,102,287	10,972,847	14,015,734	14,960,624	50,051,492
Loss and loss adjustment expenses	4,324,954	3,007,939	4,538,167	5,161,128	17,032,188
Commission expense and other underwriting expenses	4,864,257	5,432,867	5,951,772	6,532,697	22,781,593
Net income	327,133	1,354,502	1,883,681	1,763,103	5,328,419
Basic earnings per share	$ 0.05	$ 0.19	$ 0.26	$ 0.24	$ 0.73
Diluted earnings per share	$ 0.04	$ 0.18	$ 0.26	$ 0.24	$ 0.72


	2013
	March 31,	June 30,	September 30,	December 31,	Total

Net premiums earned	$ 4,623,215	$ 4,676,282	$ 6,125,584	$ 6,800,086	$ 22,225,167
Ceding commission revenue	2,293,711	2,334,431	3,611,544	3,433,417	11,673,103
Net investment income	283,287	275,031	294,348	317,385	1,170,051
Net realized gain on sale of investments	105,125	249,893	94,456	126,318	575,792
Total revenues	7,519,328	7,779,462	10,339,137	10,928,258	36,566,185
Loss and loss adjustment expenses	2,469,641	3,241,797	2,439,132	5,435,963	13,586,533
Commission expense and other underwriting expenses	4,329,165	4,010,695	5,174,791	4,866,827	18,381,478
Net income	191,008	68,101	1,662,224	90,985	2,012,318
Basic earnings per share	$ 0.05	$ 0.02	$ 0.44	$ 0.02	$ 0.51
Diluted earnings per share	$ 0.05	$ 0.02	$ 0.43	$ 0.02	$ 0.50

Due to changes in number of shares outstanding from quarter to quarter, the total earnings per share of the four quarters may not necessarily equal the earnings per share for the year.

2. Accounting Policies and Basis of Presentation (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies And Basis Of Presentation Policies

Principles of Consolidation

Revenue Recognition

Net Premiums Earned

Ceding Commission Revenue

Premium Finance Placement Fees

Liability for Loss and Loss Adjustment Expenses ("LAE")

Reinsurance

Cash and Cash Equivalents

Investments

Fair Value

Premiums Receivable

Deferred Policy Acquisition Costs

Intangible Assets

Property and Equipment

Income Taxes

Assessments

Concentration and Credit Risk

As of December 31, 2014 and 2013, the Company had deposits of cash equivalents as follows:

	December 31,		December 31,
	2014		2013
Collateralized bank repurchase agreement (1)	$	1,130,154	$	17,280,027
Money market fund		4,288,876		953,504
Total	$	5,419,030	$	18,233,531

Direct premiums earned from lines of business that subject the Company to concentration risk for the years ended December 31, 2014 and 2013 are as follows:

	Years ended December 31,
	2014			2013
Personal Lines		73.3	%		70.0	%
Commercial Lines		15.3	%		16.0	%
Total premiums earned subject to concentration		88.6	%		86.0	%
Premiums earned not subject to concentration		11.4	%		14.0	%
Total premiums earned		100.0	%		100.0	%

Use of Estimates

Earnings per share

Advertising Costs

Stock-based Compensation

Comprehensive Income

Recent Accounting Pronouncements

2. Accounting Policies and Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies And Basis Of Presentation Tables

Summary of deposits of cash equivalents

As of December 31, 2014 and 2013, the Company had deposits of cash equivalents as follows:

	December 31,		December 31,
	2014		2013
Collateralized bank repurchase agreement (1)	$	1,130,154	$	17,280,027
Money market fund		4,288,876		953,504
Total	$	5,419,030	$	18,233,531

Schedule of Concentration Risk

Direct premiums earned from lines of business that subject the Company to concentration risk for the years ended December 31, 2014 and 2013 are as follows:

	Years ended December 31,
	2014			2013
Personal Lines		73.3	%		70.0	%
Commercial Lines		15.3	%		16.0	%
Total premiums earned subject to concentration		88.6	%		86.0	%
Premiums earned not subject to concentration		11.4	%		14.0	%
Total premiums earned		100.0	%		100.0	%

3. Investments (Tables)

12 Months Ended

Dec. 31, 2014

Investments Tables

Schedule of Availalbe for Sale Securities

The amortized cost and fair value of investments in available-for-sale fixed-maturity securities and equity securities as of December 31, 2014 and December 31, 2013 are summarized as follows:

	December 31, 2014
													Net
	Cost or		Gross		Gross Unrealized Losses								Unrealized
	Amortized		Unrealized		Less than 12			More than 12			Fair		Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)

Fixed-Maturity Securities:
Political subdivisions of States,
Territories and Possessions	$	13,862,141	$	412,490	$	(23,813	)	$	(6,379	)	$	14,244,439	$	382,298

Corporate and other bonds
Industrial and miscellaneous		36,221,300		803,440		(118,092	)		(30,228	)		36,876,420		655,120
Total fixed-maturity securities		50,083,441		1,215,930		(141,905	)		(36,607	)		51,120,859		1,037,418

Equity Securities:
Preferred stocks		3,172,632		19,180		(2,647	)		(62,886	)		3,126,280		(46,352	)
Common stocks		4,448,677		444,950		-			(2,177	)		4,891,449		442,772
Total equity securities		7,621,309		464,130		(2,647	)		(65,063	)		8,017,729		396,420

Total	$	57,704,750	$	1,680,060	$	(144,552)		$	(101,670)		$	59,138,588	$	1,433,838

	December 31, 2013
													Net
	Cost or		Gross		Gross Unrealized Losses								Unrealized
	Amortized		Unrealized		Less than 12			More than 12			Fair		Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)

Fixed-Maturity Securities:
Political subdivisions of States,
Territories and Possessions	$	7,000,222	$	162,616	$	(49,491	)	$	(45,140	)	$	7,068,207	$	67,985

Corporate and other bonds
Industrial and miscellaneous		21,079,680		569,139		(179,810	)		(101,194	)		21,367,815		288,135
Total fixed-maturity securities		28,079,902		731,755		(229,301	)		(146,334	)		28,436,022		356,120

Equity Securities:
Preferred stocks		2,899,301		2,503		(251,525	)		(62,551	)		2,587,728		(311,573	)
Common stocks		3,791,037		470,606		(38,785	)		(13,913	)		4,208,945		417,908
Total equity securities		6,690,338		473,109		(290,310	)		(76,464	)		6,796,673		106,335

Total	$	34,770,240	$	1,204,864	$	(519,611)		$	(222,798)		$	35,232,695	$	462,455

Schedule of Availalbe for Sale Securities by contractual maturity

A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of December 31, 2014 and 2013 is shown below:

	December 31, 2014				December 31, 2013
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	482,833	$	487,507	$	758,281	$	768,954
One to five years		11,640,381		11,943,127		9,025,386		9,466,973
Five to ten years		32,283,921		32,865,231		14,070,003		14,114,271
More than 10 years		5,676,306		5,824,994		4,226,232		4,085,824
Total	$	50,083,441	$	51,120,859	$	28,079,902	$	28,436,022

Schedule of Held to Maturity Securities

The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of December 31, 2014 and 2013 are summarized as follows:

	December 31, 2014
													Net
	Cost or		Gross		Gross Unrealized Losses								Unrealized
	Amortized		Unrealized		Less than 12			More than 12			Fair		Gains/
Category	Cost		Gains		Months			Months			Value		(Losses)


U.S. Treasury securities	$	606,353	$	183,200	$	-		$	-		$	789,553	$	183,200

Political subdivisions of States,
Territories and Possessions		1,413,303		49,981		-			(12,247	)		1,451,037		37,734

Corporate and other bonds
Industrial and miscellaneous		3,109,079		98,306		(52,921	)		-			3,154,464		45,385

Total	$	5,128,735	$	331,487	$	(52,921)		$	(12,247)		$	5,395,054	$	266,319

	December 31, 2013
												Net
	Cost or		Gross		Gross Unrealized Losses							Unrealized
	Amortized		Unrealized		Less than 12			More than 12		Fair		Gains/
Category	Cost		Gains		Months			Months		Value		(Losses)


U.S. Treasury securities	$	606,138	$	46,915	$	-		$	-	$	653,053	$	46,915

Political subdivisions of States,
Territories and Possessions		208,697		-		(25,359	)		-		183,338		(25,359	)

Corporate and other bonds
Industrial and miscellaneous		1,584,647		4,223		-			-		1,588,870		4,223

Total	$	2,399,482	$	51,138	$	(25,359)		$	-	$	2,425,261	$	25,779

Held-to-maturity securities U.S. Treasury securities are held in trust pursuant to the New York State Department of Financial Services’ minimum funds requirement.

A summary of the amortized cost and fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of December 31, 2014 and 2013 is shown below:

	December 31, 2014				December 31, 2013
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	-	$	-	$	-	$	-
One to five years		-		-		-		-
Five to ten years		3,522,927		3,563,401		1,793,344		1,772,208
More than 10 years		1,605,808		1,831,653		606,138		653,053
Total	$	5,128,735	$	5,395,054	$	2,399,482	$	2,425,261

Schedule of Investment Income

Major categories of the Company’s net investment income are summarized as follows:

	Year ended
	December 31,
	2014			2013

Income:
Fixed-maturity securities	$	1,665,534		$	1,018,857
Equity securities		483,175			390,818
Cash and cash equivalents		23,750			41
Other		(481	)		16,507
Total		2,171,978			1,426,223
Expenses:
Investment expenses		372,210			256,172
Net investment income	$	1,799,768		$	1,170,051

Schedule of net realized gains and losses on investments

The Company’s net realized gains and losses on investments are summarized as follows:

	Year ended
	December 31,
	2014			2013

Fixed-maturity securities:
Gross realized gains	$	323,455		$	237,886
Gross realized losses		(48,729	)		(73,910	)
		274,726			163,976

Equity securities:
Gross realized gains		497,023			551,912
Gross realized losses		(116,309	)		(140,096	)
		380,714			411,816

Cash and short term investments (1)		51,587			-

Net realized gains	$	707,027		$	575,792

Schedule of Securities with Unrealized Losses

The Company held securities with unrealized losses representing declines that were considered temporary at December 31, 2014 and 2013 as follows:

	December 31, 2014
	Less than 12 months							12 months or more							Total
						No. of							No. of		Aggregate
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses

Fixed-Maturity Securities:
Political subdivisions of States, Territories andPossessions	$	3,013,648	$	(23,813	)		9	$	126,658	$	(6,379	)		1	$	3,140,306	$	(30,192	)

Corporate and otherbonds industrial and miscellaneous		6,325,579		(118,092	)		15		714,640		(30,228	)		2		7,040,219		(148,320	)

Total fixed-maturity securities	$	9,339,227	$	(141,905	)		24	$	841,298	$	(36,607	)		3	$	10,180,525	$	(178,512	)

Equity Securities:
Preferred stocks	$	656,325	$	(2,647	)		1	$	1,448,376	$	(62,886	)		6	$	2,104,701	$	(65,533	)
Common stocks		-		-			-		267,000		(2,177	)		1		267,000		(2,177	)

Total equity securities	$	656,325	$	(2,647	)		1	$	1,715,376	$	(65,063	)		7	$	2,371,701	$	(67,710	)

Total	$	9,995,552	$	(144,552)			25	$	2,556,674	$	(101,670)			10	$	12,552,226	$	(246,222)

	December 31, 2013
	Less than 12 months							12 months or more							Total
						No. of							No. of		Aggregate
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses

Fixed-Maturity Securities:

Political subdivisions of States, Territories andPossessions	$	2,015,437	$	(49,491	)		6	$	415,866	$	(45,140	)		2	$	2,431,303	$	(94,631	)

Corporate and other bonds industrial and miscellaneous		6,447,605		(179,810	)		24		1,430,377		(101,194	)		5		7,877,982		(281,004	)

Total fixed-maturity securities	$	8,463,042	$	(229,301	)		30	$	1,846,243	$	(146,334	)		7	$	10,309,285	$	(375,635	)

Equity Securities:
Preferred stocks	$	1,835,958	$	(251,525	)		8	$	444,100	$	(62,551	)		2	$	2,280,058	$	(314,076	)
Common stocks		879,525		(38,785	)		4		145,625		(13,913	)		1		1,025,150		(52,698	)

Total equity securities	$	2,715,483	$	(290,310	)		12	$	589,725	$	(76,464	)		3	$	3,305,208	$	(366,774	)

Total	$	11,178,525	$	(519,611)			42	$	2,435,968	$	(222,798)			10	$	13,614,493	$	(742,409)

4. Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Measurements Tables

Schedule of Fair Value Measurements

The Company’s investments are allocated among pricing input levels at December 31, 2014 and 2013 as follows:

	December 31, 2014
($ in thousands)	Level 1		Level 2		Level 3		Total

Fixed-maturity investments available for sale

Political subdivisions of States, Territories and Possessions	$	-	$	14,244,439	$	-	$	14,244,439

Corporate and other bonds industrial and miscellaneous		29,257,850		7,618,570		-		36,876,420
Total fixed maturities		29,257,850		21,863,009		-		51,120,859
Equity investments		8,017,729		-		-		8,017,729
Total investments	$	37,275,579	$	21,863,009	$	-	$	59,138,588

	December 31, 2013
($ in thousands)	Level 1		Level 2		Level 3		Total

Fixed-maturity investments available for sale
Political subdivisions of States, Territories and Possessions	$	-	$	7,068,207	$	-	$	7,068,207

Corporate and other bonds industrial and miscellaneous		20,731,952		636,863		-		21,368,815
Total fixed maturities		20,731,952		7,705,070		-		28,437,022
Equity investments		6,796,673		-		-		6,796,673
Total investments	$	27,528,625	$	7,705,070	$	-	$	35,233,695

5. Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Of Financial Instruments Tables

Schedule of Fair Value of Financial Instruments

The estimated fair values of the Company’s financial instruments are as follows:

	December 31, 2014				December 31, 2013
	Carrying Value		Fair Value		Carrying Value		Fair Value

Fixed-maturity securitied-held-to maturity	$	5,128,735	$	5,395,054	$	2,399,482	$	2,425,261
Cash and cash equivalents	$	9,906,878	$	9,906,878	$	19,922,506	$	19,922,506
Premiums receivable	$	8,946,899	$	8,946,899	$	7,590,074	$	7,590,074
Receivables - reinsurance contracts	$	1,301,549	$	1,301,549	$	974,989	$	974,989
Reinsurance receivables	$	35,575,276	$	35,575,276	$	37,560,825	$	37,560,825
Real estate, net of accumulated depreciation	$	1,762,345	$	1,816,122	$	1,777,942	$	1,816,122
Reinsurance balances payable	$	2,096,363	$	2,096,363	$	2,566,729	$	2,566,729

6. Intangibles (Tables)

12 Months Ended

Dec. 31, 2014

Intangibles Tables

Schedule of components of intangible assets and their useful lives, accumulated amortization, and net carrying value

The components of intangible assets and their useful lives, accumulated amortization, and net carrying value as of December 31, 2014 and 2013 are summarized as follows:

		December 31, 2014						December 31, 2013
	Useful	Gross				Net		Gross				Net
	Life	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	(in yrs)	Value		Amortization		Amount		Value		Amortization		Amount
Insurance license	-	$	500,000	$	-	$	500,000	$	500,000	$	-	$	500,000
Customer relationships	10		3,400,000		1,870,000		1,530,000		3,400,000		1,530,000		1,870,000
Other identifiable intangibles	7		950,000		746,470		203,530		950,000		610,756		339,244
Total		$	4,850,000	$	2,616,470	$	2,233,530	$	4,850,000	$	2,140,756	$	2,709,244

Schedule of estimated aggregate amortization expense

2015	$	475,714
2016		407,816
2017		340,000
2018		340,000
2019		170,000
	$	1,733,530

7. Reinsurance (Tables)

12 Months Ended

Dec. 31, 2014

Reinsurance Tables

Line of Busines

	Treaty Year
		July 1, 2014			July 1, 2013			July 1, 2012
		to			to			to
Line of Busines		June 30, 2015			June 30, 2014			June 30, 2013

Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded			55	%		75	%		75	%
Risk retained		$	360,000		$	300,000		$	250,000
Losses per occurrence subject to quota share reinsurance coverage		$	800,000		$	1,200,000		$	1,000,000
Excess of loss coverage above quota share coverage		$	3,200,000		$	1,700,000		$	1,900,000
		in excess of			in excess of			in excess of
		$	800,000		$	1,200,000		$	1,000,000
Total reinsurance coverage per occurrence		$	3,640,000		$	2,600,000		$	2,650,000
Losses per occurrence subject to reinsurance coverage		$	4,000,000		$	2,900,000		$	2,900,000
Expiration date		June 30, 2015			June 30, 2015			June 30, 2013

Personal Umbrella
Quota share treaty:
Percent ceded - first million dollars of coverage			90	%		90	%		90	%
Percent ceded - excess of one million dollars of coverage			100	%		100	%		100	%
Risk retained		$	100,000		$	100,000		$	100,000
Total reinsurance coverage per occurrence		$	2,900,000		$	1,900,000		$	1,900,000
Losses per occurrence subject to quota share reinsurance coverage		$	3,000,000		$	2,000,000		$	2,000,000
Expiration date		June 30, 2015			June 30, 2014			June 30, 2013

Commercial Lines:
General liability commercial policies, except for commercial auto
Quota share treaty:
Percent ceded (terminated effective July 1, 2014)		None				25	%		40	%
Risk retained		$	400,000		$	300,000		$	300,000
Losses per occurrence subject to quota share reinsurance coverage		None			$	400,000		$	500,000
Excess of loss coverage above quota share coverage		$	3,600,000		$	2,500,000		$	2,400,000
		in excess of			in excess of			in excess of
		$	400,000		$	400,000		$	500,000
Total reinsurance coverage per occurrence		$	3,600,000		$	2,600,000		$	2,600,000
Losses per occurrence subject to reinsurance coverage		$	4,000,000		$	2,900,000		$	2,900,000

Commercial Auto:
Risk retained		$	300,000		$	300,000		$	250,000
Excess of loss coverage in excess of risk retained		$	1,700,000		$	1,700,000		$	1,750,000
		in excess of			in excess of			in excess of
		$	300,000		$	300,000		$	250,000
Catastrophe Reinsurance:
Initial loss subject to personal lines quota share treaty		$	4,000,000		$	4,000,000		$	3,000,000
Risk retained per catastrophe occurrence (1)		$	1,800,000		$	1,000,000		$	750,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)		$	137,000,000		$	86,000,000		$	70,000,000

(1)	Plus losses in excess of catastrophe coverage.

(2)

(3)	Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.

Single maximum risks under treaties per occurrence

The single maximum risks per occurrence to which the Company is subject under the treaties that expired on June 30, 2014 and the new treaties effective July 1, 2014 are as follows:

	July 1, 2014 - June 30, 2015		July 1, 2013 - June 30, 2014
Treaty	Extent of Loss	Risk Retained	Extent of Loss	Risk Retained
Personal Lines	Initial $800,000	$360,000	Initial $1,200,000	$300,000
	$800,000 - $4,000,000	None(1)	$1,200,000 - $2,900,000	None(1)
	Over $4,000,000	100%	Over $2,900,000	100%

Personal Umbrella	Initial $1,000,000	$100,000	Initial $1,000,000	$100,000
	$1,000,000 - $3,000,000	None(1)	$1,000,000 - $2,000,000	None(1)
	Over $3,000,000	100%	Over $2,000,000	100%

Commercial Lines	Initial $400,000	$400,000	Initial $400,000	$300,000
	$400,000 - $4,000,000	None(1)	$400,000 - $2,900,000	None(1)
	Over $4,000,000	100%	Over $2,900,000	100%

Commercial Auto	Initial $300,000	$300,000	Initial $300,000	$300,000
	$300,000 - $2,000,000	None(1)	$300,000 - $2,000,000	None(1)
	Over $2,000,000	100%	Over $2,000,000	100%

Catastrophe (2)	Initial $4,000,000	$1,800,000	Initial $4,000,000	$1,000,000
	$4,000,000 - $141,000,000	None	$4,000,000 - $90,000,000	None
	Over $141,000,000	100%	Over $90,000,000	100%

________________

(1)	Covered by excess of loss treaties.

(2)	Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.

Schedule of approximate reinsurance recoverables

Approximate reinsurance recoverables on unpaid and paid losses by reinsurer are as follows:

	Unpaid		Paid
($ in thousands)	Losses		Losses		Total		Security
December 31, 2014
Maiden Reinsurace Company	$	7,946	$	598	$	8,544	$	12,847	(1)
SCOR Reinsurance Company		2,843		194		3,037		-
Swiss Reinsurance America Corporation		3,652		359		4,011		-
Motors Insurance Corporation		931		8		939		500	(1)
Sirius American Insurance Company		908		22		930		-
Allied World Assurance Company		651		15		666		-
Others		1,319		273		1,592		110	(2)
Total	$	18,250	$	1,469	$	19,719	$	13,457

December 31, 2013
Maiden Reinsurace Company	$	6,929	$	732	$	7,661	$	13,868	(1)
SCOR Reinsurance Company		3,318		294		3,612		-
Swiss Reinsurance America Corporation		2,523		454		2,977		-
Motors Insurance Corporation		1,536		48		1,584		792	(1)
Sirius American Insurance Company		1,410		44		1,454		-
Allied World Assurance Company		665		39		704		-
Others		983		185		1,168		135	(2)
Total	$	17,364	$	1,796	$	19,160	$	14,795

(1) Secured pursuant to collateralized trust agreements.

(2) Guaranteed by an irrevocable letter of credit.

Schedule of Ceding commissions earned

Ceding commissions earned consists of the following:

	Years ended
	December 31,
	2014		2013

Provisional ceding commissions earned	$	12,456,411	$	11,007,342
Contingent ceding commissions earned		1,453,700		665,761
	$	13,910,111	$	11,673,103

8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue (Tables)

12 Months Ended

Dec. 31, 2014

Deferred Policy Acquisition Costs And Deferred Ceding Commission Revenue Tables

Schedule of acquisition costs incurred

Policy acquisition costs incurred and policy-related ceding commission revenue are deferred, and amortized to income on property and casualty insurance business as follows:

	Year ended
	December 31,
	2014		2013

Net deferred policy acquisition costs net of ceding
commission revenue, beginning of year	$	(123,903)	$	692,848

Cost incurred and deferred:
Commissions and brokerage		13,612,109		10,500,068
Other underwriting and policy acquisition costs		4,426,614		3,193,910
Ceding commission revenue		(11,428,785)		(13,114,478)
Net deferred policy acquisition costs		6,609,938		579,500
Amortization		(3,456,594)		(1,396,251)
		3,153,344		(816,751)

Net deferred policy acquisition costs net of ceding
commission revenue, end of year	$	3,029,441	$	(123,903)

Schedule of Ending balances for deferred acquisition costs and deferred ceding commission revenue

Ending balances for deferred policy acquisition costs and deferred ceding commission revenue as of December 31, 2014 and 2013 follows:

	December 31,
	2014		2013

Deferred policy acquisition costs	$	8,985,981	$	6,860,263
Deferred ceding commission revenue		(5,956,540)		(6,984,166)
Balance at end of period	$	3,029,441	$	(123,903)

9. Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2014

Property And Equipment Tables

Schedule of components of property and equipment

The components of property and equipment are summarized as follows:

			Accumulated
	Cost		Depreciation			Net

December 31, 2014
Building	$	1,887,347	$	(253,624	)	$	1,633,723
Land		153,097		-			153,097
Furniture office equipment		366,392		(151,983	)		214,409
Computer equipment and software		1,019,647		(570,955	)		448,692
Automobile		81,394		(83,273	)		(1,879	)
Total	$	3,507,877	$	(1,059,835)		$	2,448,042

December 31, 2013
Building	$	1,760,435	$	(195,363	)	$	1,565,072
Land		153,097		-			153,097
Furniture		170,505		(79,885	)		90,620
Computer equipment and software		533,966		(307,382	)		226,584
Automobile		81,394		(78,012	)		3,382
Total	$	2,699,397	$	(660,642)		$	2,038,755

10. Property and Casualty Insurance Activity (Tables)

12 Months Ended

Dec. 31, 2014

Property And Casualty Insurance Activity Tables

Schedule of Earned Premiums

Premiums written, ceded and earned are as follows:

	Direct			Assumed			Ceded			Net

Year ended December 31, 2014
Premiums written	$	76,255,426		$	48,856		$	(33,009,420	)	$	43,294,862
Change in unearned premiums		(8,119,029	)		(3,398	)		(2,543,951	)		(10,666,378	)
Premiums earned	$	68,136,397		$	45,458		$	(35,553,371	)	$	32,628,484

Year ended December 31, 2013
Premiums written	$	60,449,077		$	45,746		$	(35,656,060	)	$	24,838,763
Change in unearned premiums		(6,341,750	)		18,499			3,709,655			(2,613,596	)
Premiums earned	$	54,107,327		$	64,245		$	(31,946,405	)	$	22,225,167

Schedule of Loss and Loss Adjustment Expenses

The components of the liability for loss and LAE expenses and related reinsurance receivables as of December 31, 2014 and 2013 are as follows:

	Gross		Reinsurance
	Liability		Receivables
December 31, 2014
Case-basis reserves	$	24,064,175	$	11,930,330
Loss adjustment expenses		5,663,856		1,920,437
IBNR reserves		10,184,652		4,398,759
Recoverable on unpaid losses				18,249,526
Recoverable on paid losses		-		1,469,363
Total loss and loss adjustment expenses	$	39,912,683		19,718,889
Unearned premiums				15,856,387
Total reinsurance receivables			$	35,575,276

December 31, 2013
Case-basis reserves	$	22,489,240	$	12,078,399
Loss adjustment expenses		4,200,675		1,226,763
IBNR reserves		7,813,314		4,058,813
Recoverable on unpaid losses				17,363,975
Recoverable on paid losses		-		1,796,512
Total loss and loss adjustment expenses	$	34,503,229		19,160,487
Unearned premiums				18,400,338
Total reinsurance receivables			$	37,560,825

Schedule of Ceding Commission Revenue

The following table provides a reconciliation of the beginning and ending balances for unpaid losses and LAE:

	Years ended
	December 31,
	2014			2013

Balance at beginning of period	$	34,503,229		$	30,485,532
Less reinsurance recoverables		(17,363,975	)		(18,419,694	)
Net balance, beginning of period		17,139,254			12,065,838

Incurred related to:
Current year		15,268,426			11,765,420
Prior years		1,763,762			1,821,113
Total incurred		17,032,188			13,586,533

Paid related to:
Current year		6,351,920			3,709,495
Prior years		6,156,365			4,803,622
Total paid		12,508,285			8,513,117

Net balance at end of period		21,663,157			17,139,254
Add reinsurance recoverables		18,249,526			17,363,975
Balance at end of period	$	39,912,683		$	34,503,229

12. Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2014

Stockholders Equity Tables

Weighted average assumptions

The following weighted average assumptions were used for grants during the years ended December 31, 2014 and 2013:

	Years ended
	December 31,
	2014	2013
Dividend Yield	2.97%	2.42% - 3.14%
Volatility	40.53%	45.73% - 46.71%
Risk-Free Interest Rate	0.92%	0.61% - 0.79%
Expected Life	3.25 years	3.25 years

Schedule of Stock Options Activity

A summary of option activity under the Company’s 2005 Plan for the year ended December 31, 2014 is as follows:

Stock Options	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value

Outstanding at January 1, 2014		321,365		$	3.36		2.26	$	1,257,936

Granted (1)		200,000		$	6.73		-	$	284,000
Exercised		(100,115	)	$	2.49		-	$	466,816
Forfeited		-		$	-		-	$	-

Outstanding at December 31, 2014 (1)		421,250		$	5.16		3.13	$	1,258,013

Vested and Exercisable at December 31, 2014		232,500		$	4.22		2.15	$	912,913

(1)	On August 12, 2014, an additional 50,000 options were granted under the 2014 Plan, which is subject to shareholder approval.

15. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes Tables

Schedule of provision for income taxes from continuing operations

The provision for income taxes is comprised of the following:

Years ended December 31,	2014		2013

Current federal income tax expense	$	2,418,621	$	1,473,370
Current state income tax expense		14,596		14,952
Deferred federal and state income tax expense (benefit)		113,823		(724,053	)
Provision for income taxes	$	2,547,040	$	764,269

Schedule of a reconciliation of the federal statutory rate

A reconciliation of the federal statutory rate to the effective tax rate is as follows:

Years ended December 31,	2014					2013
Computed expected tax expense	$	2,677,656		34.0	%	$	944,040		34.0	%
State taxes, net of Federal benefit		(99,356	)	(1.3	)		(48,411	)	(1.8	)
State valuation allowance		139,137		1.8			85,821		3.1
Permanent differences
Dividends received deduction		(114,996	)	(1.5	)		(91,163	)	(3.3	)
Non-taxable investment income		(92,283	)	(1.2	)		(43,905	)	(1.5	)
Other permanent differences		86,193		1.1			25,709		0.9
Prior year tax matters		(53,556	)	(0.7	)		(52,145	)	(1.9	)
Other		4,245		0.1			(55,677	)	(2.0	)
Total tax	$	2,547,040		32.3	%	$	764,269		27.5	%

Schedule of Deferrred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,			December 31,
	2014			2013

Deferred tax asset:
Net operating loss carryovers (1)	$	211,550		$	246,476
Claims reserve discount		562,941			445,384
Unearned premium		1,741,360			1,000,372
Deferred ceding commission revenue		2,025,224			2,374,616
Other		88,148			17,087
Total deferred tax assets		4,629,223			4,083,935

Deferred tax liability:
Investment in KICO (2)		1,169,000			1,169,000
Deferred acquisition costs		3,055,234			2,332,489
Intangibles		759,400			921,143
Depreciation and amortization		291,689			197,223
Net unrealized appreciation of securities - available for sale		491,080			157,167
Total deferred tax liabilities		5,766,403			4,777,022

Net deferred income tax liability	$	(1,137,180	)	$	(693,087	)

Schedule of net operating loss carryovers

	December 31,			December 31,
Type of NOL	2014			2013			Expiration
State only (A)	$	567,188		$	459,989		December 31, 2034
Valuation allowance		(372,638	)		(240,713	)
State only, net of valuation allowance		194,550			219,276
Amount subject to Annual Limitation, federal only (B)		17,000			27,200		December 31, 2019
Total deferred tax asset from net operating loss carryovers	$	211,550		$	246,476

Schedule of changes in net deferred income tax liability to the deferred income tax provision

The table below reconciles the changes in net deferred income tax liability to the deferred income tax provision for the year ended December 31, 2014:

Change in net deferred income tax liabilities	$	444,093
Deferred tax expense allocated to other comprehensive income		330,270
Deferred income tax provision	$	113,823

18. Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2014

Earnings per common share:

Reconciliation of the weighted average number of shares of Common Stock used in the calculation of basic and diluted earnings per common share

	Year ended
	December 31,
	2014		2013

Weighted average number of shares outstanding		7,287,657		3,975,115
Effect of dilutive securities, common share equivalents		69,305		84,609

Weighted average number of shares outstanding,
used for computing diluted earnings per share		7,356,962		4,059,724

21. Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Data Tables

Schedule of Quarterly Financial Data

The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2014 and 2013:

	2014
	March 31,	June 30,	September 30,	December 31,	Total

Net premiums earned	$ 5,926,311	$ 6,429,373	$ 9,895,000	$ 10,377,800	$ 32,628,484
Ceding commission revenue	3,381,283	3,706,049	3,278,319	3,544,460	13,910,111
Net investment income	378,788	451,915	463,513	505,552	1,799,768
Net realized gain on sale of investments	188,348	134,602	115,176	268,901	707,027
Total revenues	10,102,287	10,972,847	14,015,734	14,960,624	50,051,492
Loss and loss adjustment expenses	4,324,954	3,007,939	4,538,167	5,161,128	17,032,188
Commission expense and other underwriting expenses	4,864,257	5,432,867	5,951,772	6,532,697	22,781,593
Net income	327,133	1,354,502	1,883,681	1,763,103	5,328,419
Basic earnings per share	$ 0.05	$ 0.19	$ 0.26	$ 0.24	$ 0.73
Diluted earnings per share	$ 0.04	$ 0.18	$ 0.26	$ 0.24	$ 0.72


	2013
	March 31,	June 30,	September 30,	December 31,	Total

Net premiums earned	$ 4,623,215	$ 4,676,282	$ 6,125,584	$ 6,800,086	$ 22,225,167
Ceding commission revenue	2,293,711	2,334,431	3,611,544	3,433,417	11,673,103
Net investment income	283,287	275,031	294,348	317,385	1,170,051
Net realized gain on sale of investments	105,125	249,893	94,456	126,318	575,792
Total revenues	7,519,328	7,779,462	10,339,137	10,928,258	36,566,185
Loss and loss adjustment expenses	2,469,641	3,241,797	2,439,132	5,435,963	13,586,533
Commission expense and other underwriting expenses	4,329,165	4,010,695	5,174,791	4,866,827	18,381,478
Net income	191,008	68,101	1,662,224	90,985	2,012,318
Basic earnings per share	$ 0.05	$ 0.02	$ 0.44	$ 0.02	$ 0.51
Diluted earnings per share	$ 0.05	$ 0.02	$ 0.43	$ 0.02	$ 0.50

Due to changes in number of shares outstanding from quarter to quarter, the total earnings per share of the four quarters may not necessarily equal the earnings per share for the year.

2. Accounting Policies and Basis of Presentation (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies And Basis Of Presentation Details
Collateralized bank repurchase agreement (1)	$ 1,130,154	$ 17,280,027
Money market fund	4,288,876	953,504
Total	$ 5,419,030	$ 18,233,531

2. Accounting Policies and Basis of Presentation (Details 1)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Total premiums earned subject to concentration	88.60%	86.00%
Premiums earned not subject to concentration	11.40%	14.00%
Total premiums earned	100.00%	100.00%
Personal Lines [Member]
Total premiums earned subject to concentration	73.30%	70.00%
Commercial Lines [Member]
Total premiums earned subject to concentration	15.30%	16.00%

2. Accounting Policies and Basis of Presentation (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies And Basis Of Presentation Details Narrative
Due and accrued investment income	$ 644,061	$ 414,210
Allowance for doubtful accounts	127,000	145,000
Uncollectible premiums receivable balances written off	146,000	88,000
Cash deposits in excess of the FDIC secured limit	6,041,000	3,046,000
Advertising costs	$ 71,000	$ 55,000

3. Investments (Details) - USD ($)	12 Months Ended
3. Investments (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Cost or Amortized Cost	$ 57,704,750	$ 34,770,240
Gross Unrealized Gains	1,680,060	1,204,864
Gross Unrealized Losses-Less than 12 Months	(144,552)	(519,611)
Gross Unrealized Loss-More than 12 Months	(101,670)	(222,798)
Fair Value	59,138,588	35,232,695
Net Unrealized Gains/(Losses)	1,433,838	462,455
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions
Cost or Amortized Cost	13,862,141	7,000,222
Gross Unrealized Gains	412,490	162,616
Gross Unrealized Losses-Less than 12 Months	(23,813)	(49,491)
Gross Unrealized Loss-More than 12 Months	(6,379)	(45,140)
Fair Value	14,244,439	7,068,207
Net Unrealized Gains/(Losses)	382,298	67,985
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous
Cost or Amortized Cost	36,221,300	21,079,680
Gross Unrealized Gains	803,440	569,139
Gross Unrealized Losses-Less than 12 Months	(118,092)	(179,810)
Gross Unrealized Loss-More than 12 Months	(30,228)	(101,194)
Fair Value	36,876,420	21,367,815
Net Unrealized Gains/(Losses)	655,120	288,135
Fixed Maturity Securities Total Fixed Maturity Securities
Cost or Amortized Cost	50,083,441	28,079,902
Gross Unrealized Gains	1,215,930	731,755
Gross Unrealized Losses-Less than 12 Months	(141,905)	(229,301)
Gross Unrealized Loss-More than 12 Months	(36,607)	(146,334)
Fair Value	51,120,859	28,436,022
Net Unrealized Gains/(Losses)	1,037,418	356,120
Equity Securities Preferred Stocks
Cost or Amortized Cost	3,172,632	2,899,301
Gross Unrealized Gains	19,180	2,503
Gross Unrealized Losses-Less than 12 Months	(2,647)	(251,525)
Gross Unrealized Loss-More than 12 Months	(62,886)	(62,551)
Fair Value	3,126,280	2,587,728
Net Unrealized Gains/(Losses)	(46,352)	(311,573)
Equity Securities Common Stocks
Cost or Amortized Cost	4,448,677	3,791,037
Gross Unrealized Gains	444,950	470,606
Gross Unrealized Losses-Less than 12 Months	0	(38,785)
Gross Unrealized Loss-More than 12 Months	(2,177)	(13,913)
Fair Value	4,891,449	4,208,945
Net Unrealized Gains/(Losses)	442,772	417,908
Equity Securities Total Equity Securities
Cost or Amortized Cost	7,621,309	6,690,338
Gross Unrealized Gains	464,130	473,109
Gross Unrealized Losses-Less than 12 Months	(2,647)	(290,310)
Gross Unrealized Loss-More than 12 Months	(65,063)	(76,464)
Fair Value	8,017,729	6,796,673
Net Unrealized Gains/(Losses)	$ 396,420	$ 106,335

3. Investments (Details 1) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Amortized Cost	$ 50,083,441	$ 28,079,902
Fair Value	51,120,859	28,436,022
Less Than One Year
Amortized Cost	482,833	758,281
Fair Value	487,507	768,954
One To Five Years
Amortized Cost	11,640,381	9,025,386
Fair Value	11,943,127	9,466,973
Five To Ten Years
Amortized Cost	32,283,921	14,070,003
Fair Value	32,865,231	14,114,271
More Than 10 Years
Amortized Cost	5,676,306	4,226,232
Fair Value	$ 5,824,994	$ 4,085,824

3. Investments (Details 2) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Cost or Amortized Cost	$ 5,128,735	$ 2,399,482
Gross Unrealized Gains	331,487	51,138
Gross Unrealized Losses-Less than 12 Months	(52,921)	(25,359)
Gross Unrealized Loss-More than 12 Months	(12,247)	0
Fair Value	5,395,054	2,425,261
Net Unrealized Gains/(Losses)	266,319	25,779
US Treasury Securities
Cost or Amortized Cost	606,353	606,138
Gross Unrealized Gains	183,200	46,915
Gross Unrealized Losses-Less than 12 Months	0	0
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	789,553	653,053
Net Unrealized Gains/(Losses)	183,200	46,915
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions
Cost or Amortized Cost	1,413,303	208,697
Gross Unrealized Gains	49,981	0
Gross Unrealized Losses-Less than 12 Months	0	(25,359)
Gross Unrealized Loss-More than 12 Months	(12,247)	0
Fair Value	1,451,037	183,338
Net Unrealized Gains/(Losses)	37,734	(25,359)
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous
Cost or Amortized Cost	3,109,079	1,584,647
Gross Unrealized Gains	98,306	4,223
Gross Unrealized Losses-Less than 12 Months	(52,921)	0
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	3,154,464	1,588,870
Net Unrealized Gains/(Losses)	$ 45,385	$ 4,223

3. Investments (Details 3) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Amortized Cost	$ 5,128,735	$ 2,399,482
Fair Value	5,395,054	2,425,261
Less Than One Year
Amortized Cost	0	0
Fair Value	0	0
One To Five Years
Amortized Cost	0	0
Fair Value	0	0
Five To Ten Years
Amortized Cost	3,522,927	1,793,344
Fair Value	3,563,401	1,772,208
More Than 10 Years
Amortized Cost	1,605,808	606,138
Fair Value	$ 1,831,653	$ 653,053

3. Investments (Details 4) - USD ($)	12 Months Ended
3. Investments (Details 4) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Income:
Fixed-maturity securities	$ 1,665,534	$ 1,018,857
Equity securities	483,175	390,818
Cash and cash equivalents	23,750	41
Other	(481)	16,507
Total	2,171,978	1,426,223
Expenses:
Investment expenses	372,210	256,172
Net investment income	$ 1,799,768	$ 1,170,051

3. Investments (Details 5) - USD ($)	3 Months Ended								12 Months Ended
3. Investments (Details 5) - USD ($)	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Fixed-maturity securities:
Gross realized gains									$ 323,455	$ 237,886
Gross realized losses									(48,729)	(73,910)
Total									274,726	163,976
Equity securities:
Gross realized gains									497,023	551,912
Gross realized losses									(116,309)	(140,096)
Total equity securities									380,714	411,816
Cash and short term investments (1)									51,587	0
Net realized gains	$ 268,901	$ 115,176	$ 134,602	$ 188,348	$ 126,318	$ 94,456	$ 249,893	$ 105,125	$ 707,027	$ 575,792

3. Investments (Details 6)	12 Months Ended
3. Investments (Details 6)	Dec. 31, 2014 USD ($) Security	Dec. 31, 2013 USD ($) Security
Fair Value-Less than 12 months	$ 9,995,552	$ 11,178,525
Unrealized Losses-Less than 12 Months	$ (144,552)	$ (519,611)
No. of Positions Held-Less than 12 Months \| Security	25	42
Fair Value-12 months or more	$ 2,556,674	$ 2,435,968
Unrealized Losses-12 months or more	$ (101,670)	$ (222,798)
No. of Positions Held-12 months or more \| Security	10	10
Aggregate Fair Value-Total	$ 12,552,226	$ 13,614,493
Unrealized Losses-Total	(246,222)	(742,409)
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions
Fair Value-Less than 12 months	3,013,648	2,015,437
Unrealized Losses-Less than 12 Months	$ (23,813)	$ (49,491)
No. of Positions Held-Less than 12 Months \| Security	9	6
Fair Value-12 months or more	$ 126,658	$ 415,866
Unrealized Losses-12 months or more	$ (6,379)	$ (45,140)
No. of Positions Held-12 months or more \| Security	1	2
Aggregate Fair Value-Total	$ 3,140,306	$ 2,431,303
Unrealized Losses-Total	(30,192)	(94,631)
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous
Fair Value-Less than 12 months	6,325,579	6,447,605
Unrealized Losses-Less than 12 Months	$ (118,092)	$ (179,810)
No. of Positions Held-Less than 12 Months \| Security	15	24
Fair Value-12 months or more	$ 714,640	$ 1,430,377
Unrealized Losses-12 months or more	$ (30,228)	$ (101,194)
No. of Positions Held-12 months or more \| Security	2	5
Aggregate Fair Value-Total	$ 7,040,219	$ 7,877,982
Unrealized Losses-Total	(148,320)	(281,004)
Fixed Maturity Securities Total Fixed Maturity Securities
Fair Value-Less than 12 months	9,339,227	8,463,042
Unrealized Losses-Less than 12 Months	$ (141,905)	$ (229,301)
No. of Positions Held-Less than 12 Months \| Security	24	30
Fair Value-12 months or more	$ 841,298	$ 1,846,243
Unrealized Losses-12 months or more	$ (36,607)	$ (146,334)
No. of Positions Held-12 months or more \| Security	3	7
Aggregate Fair Value-Total	$ 10,180,525	$ 10,309,285
Unrealized Losses-Total	(178,512)	(375,635)
Equity Securities Preferred Stocks
Fair Value-Less than 12 months	656,325	1,835,958
Unrealized Losses-Less than 12 Months	$ (2,647)	$ (251,525)
No. of Positions Held-Less than 12 Months \| Security	1	8
Fair Value-12 months or more	$ 1,448,376	$ 444,100
Unrealized Losses-12 months or more	$ (62,886)	$ (62,551)
No. of Positions Held-12 months or more \| Security	6	2
Aggregate Fair Value-Total	$ 2,104,701	$ 2,280,058
Unrealized Losses-Total	(65,533)	(314,076)
Equity Securities Common Stocks
Fair Value-Less than 12 months	0	879,525
Unrealized Losses-Less than 12 Months	$ 0	$ (38,785)
No. of Positions Held-Less than 12 Months \| Security	0	4
Fair Value-12 months or more	$ 267,000	$ 145,625
Unrealized Losses-12 months or more	$ (2,177)	$ (13,913)
No. of Positions Held-12 months or more \| Security	1	1
Aggregate Fair Value-Total	$ 267,000	$ 1,025,150
Unrealized Losses-Total	(2,177)	(52,698)
Equity Securities Total Equity Securities
Fair Value-Less than 12 months	656,325	2,715,483
Unrealized Losses-Less than 12 Months	$ (2,647)	$ (290,310)
No. of Positions Held-Less than 12 Months \| Security	1	12
Fair Value-12 months or more	$ 1,715,376	$ 589,725
Unrealized Losses-12 months or more	$ (65,063)	$ (76,464)
No. of Positions Held-12 months or more \| Security	7	3
Aggregate Fair Value-Total	$ 2,371,701	$ 3,305,208
Unrealized Losses-Total	$ (67,710)	$ (366,774)

3. Investments (Details Narrative) - USD ($)	12 Months Ended
3. Investments (Details Narrative) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Investments Details Narrative
Proceeds from the sale and maturity of fixed-maturity securities	$ 6,823,015	$ 5,850,770
Proceeds from the sale of equity securities	$ 7,970,324	$ 4,868,193

4. Fair Value Measurements (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Political subdivisions of States, Territories and Possessions	$ 14,244,439	$ 7,068,207
Corporate and other bonds industrial and miscellaneous	36,876,420	21,368,815
Total fixed maturities	51,120,859	28,437,022
Equity investments	8,017,729	6,796,673
Total investments	59,138,588	35,233,695
Level 1
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	29,257,850	20,731,952
Total fixed maturities	29,257,850	20,731,952
Equity investments	8,017,729	6,796,673
Total investments	37,275,579	27,528,625
Level 2
Political subdivisions of States, Territories and Possessions	14,244,439	7,068,207
Corporate and other bonds industrial and miscellaneous	7,618,570	636,863
Total fixed maturities	21,863,009	7,705,070
Equity investments	0	0
Total investments	21,863,009	7,705,070
Level 3
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	0	0
Total fixed maturities	0	0
Equity investments	0	0
Total investments	$ 0	$ 0

5. Fair Value of Financial Instruments (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Reinsurance receivables	$ 35,575,276	$ 37,560,825
Reinsurance balances payable	2,096,363	2,566,729
Carrying Value
Fixed-maturity investments held to maturity	5,128,735	2,399,482
Cash and cash equivalents	9,906,878	19,922,506
Premiums receivable	8,946,899	7,590,074
Receivables- reinsurance contracts	1,301,549	974,989
Reinsurance receivables	35,575,276	37,560,825
Real estate net of accumulated depreciation	1,762,345	1,777,942
Reinsurance balances payable	2,096,363	2,566,729
Fair Value
Fixed-maturity investments held to maturity	5,395,054	2,425,261
Cash and cash equivalents	9,906,878	19,922,506
Premiums receivable	8,946,899	7,590,074
Receivables- reinsurance contracts	1,301,549	974,989
Reinsurance receivables	35,575,276	37,560,825
Real estate net of accumulated depreciation	1,816,122	1,816,122
Reinsurance balances payable	$ 2,096,363	$ 2,566,729

6. Intangibles (Details) - USD ($)	12 Months Ended
6. Intangibles (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Gross Carrying Value	$ 4,850,000	$ 4,850,000
Accumulated Amortization	2,616,470	2,140,756
Net Carrying Amount	$ 2,233,530	2,709,244
Useful Life (in yrs)	4 years 1 month 6 days
Insurance license [Member]
Gross Carrying Value	$ 500,000	500,000
Accumulated Amortization	0	0
Net Carrying Amount	500,000	500,000
Customer relationships [Member]
Gross Carrying Value	3,400,000	3,400,000
Accumulated Amortization	1,870,000	1,530,000
Net Carrying Amount	$ 1,530,000	$ 1,870,000
Useful Life (in yrs)	10 years	10 years
Other identifiable intangibles [Member]
Gross Carrying Value	$ 950,000	$ 950,000
Accumulated Amortization	746,470	610,756
Net Carrying Amount	$ 203,530	$ 339,244
Useful Life (in yrs)	7 years	7 years

6. Intangibles (Details 1)	Dec. 31, 2014 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 475,714
2016	407,816
2017	340,000
2018	340,000
2019	170,000
Total	$ 1,733,530

6. Intangibles (Details Narrative) - USD ($)	12 Months Ended
6. Intangibles (Details Narrative) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Intangibles Details Narrative
Weighted average amortization period of identified intangible assets of finite useful life	4 years 1 month 6 days
Amortization expense, related to intangibles	$ 475,714	$ 475,714

7. Reinsurance (Details) - USD ($)	12 Months Ended
7. Reinsurance (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Personal Lines [Member]
Quota share treaty:
Percent ceded	55.00%	75.00%	75.00%
Risk retained	$ 360,000	$ 300,000	$ 250,000
Losses per occurrence subject to quota share reinsurance coverage	800,000	1,200,000	1,000,000
Excess of loss coverage above quota share coverage	3,200,000	1,700,000	1,900,000
Total	800,000	1,200,000	1,000,000
Total reinsurance coverage per occurrence	3,640,000	2,600,000	2,650,000
Losses per occurrence subject to reinsurance coverage	$ 4,000,000	$ 2,900,000	$ 2,900,000
Expiration date	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2013
Personal Umbrella [Member]
Quota share treaty:
Percent ceded - first million dollars of coverage	90.00%	90.00%	90.00%
Percent ceded - excess of one million dollars of coverage	100.00%	100.00%	100.00%
Risk retained	$ 100,000	$ 100,000	$ 100,000
Losses per occurrence subject to quota share reinsurance coverage	3,000,000	2,000,000	2,000,000
Total reinsurance coverage per occurrence	$ 2,900,000	$ 1,900,000	$ 1,900,000
Expiration date	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Commercial Lines [Member]
Quota share treaty:
Percent ceded	0.00%	25.00%	40.00%
Risk retained	$ 400,000	$ 300,000	$ 300,000
Losses per occurrence subject to quota share reinsurance coverage		400,000	500,000
Excess of loss coverage above quota share coverage	3,600,000	2,500,000	2,400,000
Total	400,000	400,000	500,000
Total reinsurance coverage per occurrence	3,600,000	2,600,000	2,600,000
Losses per occurrence subject to reinsurance coverage	4,000,000	2,900,000	2,900,000
Commercial Automobile [Member]
Quota share treaty:
Risk retained	300,000	300,000	250,000
Excess of loss coverage above quota share coverage	1,700,000	1,700,000	1,750,000
Total	300,000	300,000	250,000
Catastrophe [Member]
Quota share treaty:
Initial loss subject to personal lines quota share treaty	4,000,000	4,000,000	3,000,000
Risk retained per catastrophe occurrence (1)	1,800,000	1,000,000	750,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)	$ 137,000,000	$ 86,000,000	$ 70,000,000

7. Reinsurance (Details 1)	12 Months Ended
7. Reinsurance (Details 1)	Dec. 31, 2014	Dec. 31, 2013
Personal Lines [Member] \| Initial $1,200,000 [Member]
Risk Retained		$300,000
Personal Lines [Member] \| $1,200,000 - $2,900,000 [Member]
Risk Retained		None
Personal Lines [Member] \| Over $2,900,000 [Member]
Risk Retained (Percentage)		100.00%
Personal Lines [Member] \| Initial $800,000 [Member]
Risk Retained	360,000
Personal Lines [Member] \| $800,000 - $4,000,000 [Member]
Risk Retained	None
Personal Lines [Member] \| Over $4,000,000 [Member]
Risk Retained (Percentage)	100.00%
Personal Umbrella [Member] \| Initial $1,000,000 [Member]
Risk Retained		$100,000
Personal Umbrella [Member] \| $1,000,000 - $2,000,000 [Member]
Risk Retained		None
Personal Umbrella [Member] \| Over $2,000,000 [Member]
Risk Retained (Percentage)		100.00%
Personal Umbrella [Member] \| Initial $1,000,000 [Member]
Risk Retained	100,000
Personal Umbrella [Member] \| $1,000,000 - $3,000,000 [Member]
Risk Retained	None
Personal Umbrella [Member] \| Over $3,000,000 [Member]
Risk Retained (Percentage)	100.00%
Commercial Lines [Member] \| Initial $400,000 [Member]
Risk Retained		$300,000
Commercial Lines [Member] \| $400,000 - $2,900,000 [Member]
Risk Retained		None
Commercial Lines [Member] \| Over $2,900,000 [Member]
Risk Retained (Percentage)		100.00%
Commercial Lines [Member] \| Initial $400,000 [Member]
Risk Retained	400,000
Commercial Lines [Member] \| $400,000 - $4,000,000 [Member]
Risk Retained	None
Commercial Lines [Member] \| Over $4,000,000 [Member]
Risk Retained (Percentage)	100.00%
Commercial Automobile [Member] \| Initial $300,000 [Member]
Risk Retained		$300,000
Commercial Automobile [Member] \| $300,000 - $2,000,000 [Member]
Risk Retained		None
Commercial Automobile [Member] \| Over $2,000,000 [Member]
Risk Retained (Percentage)		100.00%
Commercial Automobile [Member] \| Initial $300,000 [Member]
Risk Retained	300,000
Commercial Automobile [Member] \| $300,000 - $2,000,000 [Member]
Risk Retained	None
Commercial Automobile [Member] \| Over $2,000,000 [Member]
Risk Retained (Percentage)	100.00%
Catastrophe [Member] \| Initial $4,000,000 [Member]
Risk Retained		$1,000,000
Catastrophe [Member] \| $4,000,000 - $90,000,000 [Member]
Risk Retained		None
Catastrophe [Member] \| Over $90,000,000 [Member]
Risk Retained (Percentage)		100.00%
Catastrophe [Member] \| Initial $4,000,000 [Member]
Risk Retained	1,800,000
Catastrophe [Member] \| $4,000,000 - $141,000,000 [Member]
Risk Retained	None
Catastrophe [Member] \| Over $141,000,000 [Member]
Risk Retained (Percentage)	100.00%

7. Reinsurance (Details 2) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Unpaid Losses	$ 18,250	$ 17,364
Paid Losses	1,469	1,796
Total	19,719	19,160
Security	13,457	14,795
Maiden Reinsurace Company [Member]
Unpaid Losses	7,946	6,929
Paid Losses	598	732
Total	8,544	7,661
Security	12,847	13,868
SCOR Reinsurance Company [Member]
Unpaid Losses	2,843	3,318
Paid Losses	194	294
Total	3,037	3,612
Security	0	0
Swiss Reinsurance America Corporation [Member]
Unpaid Losses	3,652	2,523
Paid Losses	359	454
Total	4,011	2,977
Security	0	0
Motors Insurance Corporation [Member]
Unpaid Losses	931	1,536
Paid Losses	8	48
Total	939	1,584
Security	500	792
Sirius American Insurance Company [Member]
Unpaid Losses	908	1,410
Paid Losses	22	44
Total	930	1,454
Security	0	0
Allied World Assurance Company [Member]
Unpaid Losses	651	665
Paid Losses	15	39
Total	666	704
Security	0	0
Others [Member]
Unpaid Losses	1,319	983
Paid Losses	273	185
Total	1,592	1,168
Security	$ 110	$ 135

7. Reinsurance (Details 3) - USD ($)	3 Months Ended								12 Months Ended
7. Reinsurance (Details 3) - USD ($)	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Reinsurance Details 3
Provisional ceding commissions earned									$ 12,456,411	$ 11,007,342
Contingent ceding commissions earned									1,453,700	665,761
Ceding commission revenue	$ 3,544,460	$ 3,278,319	$ 3,706,049	$ 3,381,283	$ 3,433,417	$ 3,611,544	$ 2,334,431	$ 2,293,711	$ 13,910,111	$ 11,673,103

7. Reinsurance (Details Narrative) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Reinsurance Details Narrative
Reinsurance receivables	$ 15,856,387	$ 18,400,338

8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Deferred Acquisition Costs And Deferred Ceding Commission Revenue Details
Net deferred policy acquisition costs net of ceding commission revenue, beginning of year	$ (123,903)	$ 692,848
Cost incurred and deferred:
Commissions and brokerage	13,612,109	10,500,068
Other underwriting and policy acquisition costs	4,426,614	3,193,910
Ceding commission revenue	(11,428,785)	(13,114,478)
Net deferred policy acquisition costs	6,609,938	579,500
Amortization	(3,456,594)	(1,396,251)
Deferred acquisition costs	3,153,344	(816,751)
Net deferred policy acquisition costs net of ceding commission revenue, end of year	$ 3,029,441	$ (123,903)

8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue (Details 1) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Deferred Acquisition Costs And Deferred Ceding Commission Revenue Details 1
Deferred policy acquisition costs	$ 8,985,981	$ 6,860,263
Deferred ceding commission revenue	(5,956,540)	(6,984,166)
Balance at end of period	$ 3,029,441	$ (123,903)

9. Property and Equipment (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Cost	$ 3,507,877	$ 2,699,397
Accumulated Depreciation	(1,059,835)	(660,642)
Net	2,448,042	2,038,755
Building
Cost	1,887,347	1,760,435
Accumulated Depreciation	(253,624)	(195,363)
Net	1,633,723	1,565,072
Land
Cost	153,097	153,097
Accumulated Depreciation	0	0
Net	153,097	153,097
Furniture office equipment
Cost	366,392	170,505
Accumulated Depreciation	(151,983)	(79,885)
Net	214,409	90,620
Computer equipment and software
Cost	1,019,647	533,966
Accumulated Depreciation	(570,955)	(307,382)
Net	448,692	226,584
Automobile
Cost	81,394	81,394
Accumulated Depreciation	(83,273)	(78,012)
Net	$ (1,879)	$ 3,382

9. Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
9. Property and Equipment (Details Narrative) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Property And Equipment Details Narrative
Depreciation expense	$ 399,193	$ 170,769

10. Property and Casulty Insurance Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Premiums Written
Direct	$ 76,255,426	$ 60,449,077
Assumed	48,856	45,746
Ceded	(33,009,420)	(35,656,060)
Net	43,294,862	24,838,763
Changes In Unearned Premiums
Direct	(8,119,029)	(6,341,750)
Assumed	(3,398)	18,499
Ceded	(2,543,951)	3,709,655
Net	(10,666,378)	(2,613,596)
Premiums Earned
Direct	68,136,397	54,107,327
Assumed	45,458	64,245
Ceded	(35,553,371)	(31,946,405)
Net	$ 32,628,484	$ 22,225,167

10. Property and Casulty Insurance Activity (Details 1) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Unearned premiums	$ 40,458,041	$ 32,335,614
Gross Liability
Case-basis reserves	24,064,175	22,489,240
Loss adjustment expenses	5,663,856	4,200,675
IBNR reserves	10,184,652	7,813,314
Recoverable on paid losses	0	0
Total loss and loss adjustment expenses	39,912,683	34,503,229
Reinsurance Receivables
Case-basis reserves	11,930,330	12,078,399
Loss adjustment expenses	1,920,437	1,226,763
IBNR reserves	4,398,759	4,058,813
Recoverable on unpaid losses	18,249,526	17,363,975
Recoverable on paid losses	1,469,363	1,796,512
Total loss and loss adjustment expenses	19,718,889	19,160,487
Unearned premiums	15,856,387	18,400,338
Total reinsurance receivables	$ 35,575,276	$ 37,560,825

10. Property and Casulty Insurance Activity (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Property And Casulty Insurance Activity Details 2
Balance at beginning of period	$ 34,503,229	$ 30,485,532
Less reinsurance recoverables	(17,363,975)	(18,419,694)
Net balance, beginning of period	17,139,254	12,065,838
Incurred related to:
Current year	15,268,426	11,765,420
Prior years	1,763,762	1,821,113
Total incurred	17,032,188	13,586,533
Paid related to:
Current year	6,351,920	3,709,495
Prior years	6,156,365	4,803,622
Total paid	12,508,285	8,513,117
Net balance at end of period	21,663,157	17,139,254
Add reinsurance recoverables	18,249,526	17,363,975
Balance at end of period	$ 39,912,683	$ 34,503,229

10. Property and Casulty Insurance Activity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Property And Casulty Insurance Activity Details Narrative
Advance premiums	$ 1,007,000	$ 776,000
Incurred Losses and Loss Adjustment Expenses are net of reinsurance recoveries under reinsurance contracts	$ 14,878,551	$ 17,167,407

11. Bank Line of Credit (Details Narrative) - USD ($)	12 Months Ended
11. Bank Line of Credit (Details Narrative) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Bank Line Of Credit Details Narrative
Line of credit	$ 0	$ 0
Interest Rate	3.75%	0.00%
Interest Expene-Notes	$ 0	$ 7,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

12. Stockholders' Equity (Details)	12 Months Ended
12. Stockholders' Equity (Details)	Dec. 31, 2014	Dec. 31, 2013
Dividend Yield	2.97%
Volatility	40.53%
Risk-Free Interest Rate	0.92%
Expected Life	3 years 3 months	3 years 3 months
Minimum [Member]
Dividend Yield		2.42%
Volatility		45.73%
Risk-Free Interest Rate		0.61%
Maximum [Member]
Dividend Yield		3.14%
Volatility		46.71%
Risk-Free Interest Rate		0.79%

12. Stockholders' Equity (Details 1)	12 Months Ended
12. Stockholders' Equity (Details 1)	Dec. 31, 2014 USD ($) $ / shares shares
Stockholders Equity Details 1
Number of Options Outstanding, Beginning \| shares	321,365
Number of Options Granted \| shares	200,000
Number of Options Exercised \| shares	(100,115)
Number of Options Forfeited \| shares	0
Number of Options Outstanding, Ending \| shares	421,250
Number of Options Vested and Exercisable \| shares	232,500
Weighted Average Exercise Price Outstanding, Beginning	$ 3.36
Weighted Average Exercise Price Granted	6.73
Weighted Average Exercise Price Exercised	2.49
Weighted Average Exercise Price Forfeited	0
Weighted Average Exercise Price Outstanding, Ending	5.16
Weighted Average Exercise Price Vested and Exercisable	$ 4.22
Weighted Average Remaining Contractual Life (in years) Outstanding Beginning	2 years 3 months 4 days
Weighted Average Remaining Contractual Life (in years) Outstanding Ending	3 years 1 month 17 days
Weighted Average Remaining Contractual Life (in years) Vested and Exercisable	2 years 1 month 24 days
Aggregate Intrinsic Value Outstanding, Beginning \| $	$ 1,257,936
Aggregate Intrinsic Value Granted	$ 284,000
Aggregate Intrinsic Value Exercised \| $	$ 466,816
Aggregate Intrinsic Value Forfeited/canceled	$ 0
Aggregate Intrinsic Value Outstanding, Ending \| $	$ 1,258,013
Aggregate Intrinsic Value Vested and Exercisable \| $	$ 912,913

12. Stockholders' Equity (Details Narrative) - USD ($)	12 Months Ended
12. Stockholders' Equity (Details Narrative) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Employee Benefit Plans Details Narrative
Dividends Declared	$ 1,312,625	$ 612,401
Compensation Expense	$ 172,000	$ 60,000
Stock-based compensation expense related to stock options is net of estimated forfeitures	20.00%	21.00%
Weighted average estimated fair value of stock options granted	$ 1.60	$ 1.43
Intrisic Value-Options Exercised	$ 466,816
Options Exercised - Cash proceeds	$ 5,877	$ 11,750
Options for the purchase of shares of Common Stock	2,500	5,000
Unamortized compensation cost related to unvested stock option awards	$ 156,000	$ 71,000
Unamortized compensation cost vesting period	1 year 29 days
Shares reserved under the 2005 Plan	650,000

13. Statutory Financial Information and Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Statutory Financial Information And Accounting Policies Details Narrative
Dividends paid	$ 1,500,000	$ 700,000
Statutory basis net income	3,617,139	3,057,740
Statutory basis surplus	$ 34,425,381	$ 31,829,876

15. Income Taxes (Details) - USD ($)	12 Months Ended
15. Income Taxes (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Income Taxes Details
Current federal income tax expense	$ 2,418,621	$ 1,473,370
Current state income tax expense	14,596	14,952
Deferred federal and state income tax expense (benefit)	113,823	(724,053)
Provision for income taxes	$ 2,547,040	$ 764,269

15. Income Taxes (Details 1) - USD ($)	12 Months Ended
15. Income Taxes (Details 1) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Income Taxes Details 1
Computed expected tax expense	$ 2,677,656	$ 944,040
State taxes, net of Federal benefit	(99,356)	(48,411)
State valuation allowance	139,137	85,821
Permanent differences
Dividends received deduction	(114,996)	(91,163)
Non-taxable investment income	(92,283)	(43,905)
Other permanent differences	86,193	25,709
Prior year tax matters	(53,556)	(52,145)
Other	4,245	(55,677)
Total tax	$ 2,547,040	$ 764,269
Computed expected tax expense	34.00%	34.00%
State taxes, net of Federal benefit	(1.30%)	(1.80%)
State valuation allowance	1.80%	3.10%
Permanent differences
Dividends received deduction	(1.50%)	(3.30%)
Non-taxable investment income	(1.20%)	(1.50%)
Other permanent differences	1.10%	0.90%
Prior year tax matters	(0.70%)	(1.90%)
Other	0.10%	(2.00%)
Total tax	32.30%	27.50%

15. Income Taxes (Details 2) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Deferred tax asset:
Net operating loss carryovers (1)	$ 211,550	$ 246,476
Claims reserve discount	562,941	445,384
Unearned premium	1,741,360	1,000,372
Deferred ceding commission revenue	2,025,224	2,374,616
Other	88,148	17,087
Total deferred tax assets	4,629,223	4,083,935
Deferred tax liability:
Investment in KICO (2)	1,169,000	1,169,000
Deferred acquisition costs	3,055,234	2,332,489
Intangibles	759,400	921,143
Depreciation and amortization	291,689	197,223
Net unrealized appreciation of securities - available for sale	491,080	157,167
Total deferred tax liabilities	5,766,403	4,777,022
Net deferred income tax liability	$ (1,137,180)	$ (693,087)

15. Income Taxes (Details 3) - USD ($)	12 Months Ended
15. Income Taxes (Details 3) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Income Taxes Details 2
State only (A)	$ 567,188	$ 459,989
Valuation allowance	(372,638)	(240,713)
State only, net of valuation allowance	194,550	219,276
Amount subject to Annual Limitation, Federal only (B)	17,000	27,200
Total deferred tax asset from net operating loss carryovers	$ 211,550	$ 246,476
State only (A) expiration date	31-Dec-34
Amount subject to Annual Limitation, Federal only (B) expiration date	31-Dec-19

15. Income Taxes (Details 4) - USD ($)	12 Months Ended
15. Income Taxes (Details 4) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Income Taxes Details 4
Change in net deferred income tax liabilities	$ 444,093
Deferred tax expense allocated to other comprehensive income	330,270
Deferred income tax provision	$ 113,823	$ (724,053)

15. Income Taxes (Details Narrative) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Income Taxes Details Narrative
Net operating loss carryover	$ 6,834,000	$ 5,416,000

16. Employee Benefit Plans (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
EmployeeBenefitPlansDetailsNarrativeAbstract
Compensation expense	$ 367,000	$ 270,000
Additional contributions expense	$ 229,000	$ 156,000

18. Earnings Per Common Share (Details) - USD ($)	12 Months Ended
18. Earnings Per Common Share (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Net Income Per Common Share Details
Weighted average number of shares outstanding	7,287,657	3,975,115
Effect of dilutive securities, common share equivalents	$ 69,305	$ 84,609
Weighted average number of shares outstanding, used for computing diluted earnings per share	7,356,962	4,059,724

18. Earnings Per Common Share (Details Narrative) - shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Common Share Details Narrative
Options computation of diluted earnings per share	63,356	27,094

19. Premium Finance Placement Fees (Details) - USD ($)	12 Months Ended
19. Premium Finance Placement Fees (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Premium Finance Placement Fees Details
Placement fee revenue	$ 229,738	$ 302,078
Direct expenses	62,610	63,949
Net income before taxes from placement fees	$ 167,128	$ 238,129

21. Quarterly Financial Data (Details) - USD ($)	3 Months Ended								12 Months Ended
21. Quarterly Financial Data (Details) - USD ($)	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Data Tables
Net premiums earned	$ 10,377,800	$ 9,895,000	$ 6,429,373	$ 5,926,311	$ 6,800,086	$ 6,125,584	$ 4,676,282	$ 4,623,215	$ 32,628,484	$ 22,225,167
Ceding commission revenue	3,544,460	3,278,319	3,706,049	3,381,283	3,433,417	3,611,544	2,334,431	2,293,711	13,910,111	11,673,103
Net investment income	505,552	463,513	451,915	378,788	317,385	294,348	275,031	283,287	1,799,768	1,170,051
Net realized gains on sale of investments	268,901	115,176	134,602	188,348	126,318	94,456	249,893	105,125	707,027	575,792
Total revenues	14,960,624	14,015,734	10,972,847	10,102,287	10,928,258	10,339,137	7,779,462	7,519,328	50,051,492	36,566,185
Loss and loss adjustment expenses	5,161,128	4,538,167	3,007,939	4,324,954	5,435,963	2,439,132	3,241,797	2,469,641	17,032,188	13,586,533
Commission expense and other underwriting expenses	6,532,697	5,951,772	5,432,867	4,864,257	4,866,827	5,174,791	4,010,695	4,329,165	22,781,593	18,381,478
Net income	$ 1,763,103	$ 1,883,681	$ 1,354,502	$ 327,133	$ 90,985	$ 1,662,224	$ 68,101	$ 191,008	$ 5,328,419	$ 2,012,318
Basic earnings per share	$ 0.24	$ 0.26	$ 0.19	$ 0.05	$ 0.02	$ 0.44	$ 0.02	$ 0.05	$ 0.73	$ 0.51
Diluted earnings per share	$ 0.24	$ 0.26	$ 0.18	$ 0.04	$ 0.02	$ 0.43	$ 0.02	$ 0.05	$ 0.72	$ 0.50