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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Mar. 02, 2017	Jun. 30, 2016
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, 2016
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			$ 0
Entity Common Stock, Shares Outstanding		0
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2016

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Assets
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $5,298,119 at December 31, 2016 and $5,241,095 at December 31, 2015)	$ 5,094,902	$ 5,138,872
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $80,596,628 at December 31, 2016 and $62,221,129 at December 31, 2015)	80,428,828	62,502,064
Equity securities, available-for-sale, at fair value (cost of $9,709,385 at December 31, 2016 and $8,751,537 at December 31, 2015)	9,987,686	9,204,270
Total investments	95,511,416	76,845,206
Cash and cash equivalents	12,044,520	13,551,372
Premiums receivable, net	11,649,398	10,621,655
Reinsurance receivables, net	32,197,765	31,270,235
Deferred policy acquisition costs	12,239,781	10,835,306
Intangible assets, net	1,350,000	1,757,816
Property and equipment, net	3,011,373	3,152,266
Other assets	1,442,209	1,095,894
Total assets	169,446,462	149,129,750
Liabilities
Loss and loss adjustment expense reserves	41,736,719	39,876,500
Unearned premiums	54,994,375	48,890,241
Advance premiums	1,421,560	1,199,376
Reinsurance balances payable	2,146,017	1,688,922
Deferred ceding commission revenue	6,851,841	6,435,068
Accounts payable, accrued expenses and other liabilities	5,448,448	4,826,603
Income taxes payable	0	263,622
Deferred income taxes	166,949	672,190
Total liabilities	112,765,909	103,852,522
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $.01 par value; authorized 2,500,000 shares	0	0
Common stock, $.01 par value; authorized 20,000,000 shares; issued 8,896,335 shares at December 31, 2016 and 8,289,606 at December 31, 2015; outstanding 7,921,866 shares at December 31, 2016 and 7,328,637 shares at December 31, 2015	88,963	82,896
Capital in excess of par	37,950,401	32,987,082
Accumulated other comprehensive income	72,931	484,220
Retained earnings	20,563,720	13,605,225
Total	58,676,015	47,159,423
Treasury stock, at cost, 974,469 shares at December 31, 2016 and 960,969 shares at December 31, 2015	(1,995,462)	(1,882,195)
Total stockholders' equity	56,680,553	45,277,228
Total liabilities and stockholders' equity	$ 169,446,462	$ 149,129,750

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Consolidated Balance Sheets Parenthetical
Fixed-maturity securities, held to maturity, fair value	$ 5,298,119	$ 5,241,095
Fixed-maturity securities, available for sale, amortized cost	80,596,628	62,221,129
Equity securities, available-for-sale, cost	$ 9,709,385	$ 8,751,537
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	8,896,335	8,289,606
Common stock, outstanding shares	7,921,866	7,328,637
Treasury stock, Shares	974,469	960,969

Consolidated Statements of Income and Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenues
Net premiums earned	$ 61,407,906	$ 48,612,082
Ceding commission revenue	11,268,241	11,473,117
Net investment income	3,115,583	2,563,890
Net realized gains (losses) on sales of investments	529,448	(50,546)
Other income	1,115,486	1,577,191
Total revenues	77,436,664	64,175,734
Expenses
Loss and loss adjustment expenses	27,789,661	23,180,000
Commission expense	18,327,190	15,317,140
Other underwriting expenses	14,866,646	12,833,391
Other operating expenses	1,909,779	1,504,121
Depreciation and amortization	1,124,921	1,032,009
Total expenses	64,018,197	53,866,661
Income from operations before taxes	13,418,467	10,309,073
Income tax expense	4,518,701	3,349,453
Net income	8,899,766	6,959,620
Other comprehensive income (loss), net of tax
Gross change in unrealized gains (losses) on available-for-sale-securities	(93,718)	(750,716)
Reclassification adjustment for (gains) losses included in net income	(529,448)	50,546
Net change in unrealized unrealized gains (losses)	(623,166)	(700,170)
Income tax benefit (expense) related to items of other comprehensive income (loss)	211,877	238,058
Other comprehensive income (loss), net of tax	(411,289)	(462,112)
Comprehensive income	$ 8,488,477	$ 6,497,508
Earnings per common share:
Basic	$ 1.15	$ 0.95
Diluted	$ 1.14	$ 0.94
Weighted average common shares outstanding
Basic	7,736,594	7,331,114
Diluted	7,807,263	7,377,880
Dividends declared and paid per common share	$ 0.25	$ 0.2125

Consolidated Statement of Stockholders' Equity - USD ($)	Preferred Stock	Common Stock	Capital in Excess of Par	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock	Total
Beginning Balance, Amount at Dec. 31, 2014	$ 0	$ 82,351	$ 32,873,383	$ 946,332	$ 8,203,003	$ (1,604,173)	$ 40,500,896
Beginning Balance, Shares at Dec. 31, 2014	0	8,235,095				926,338
Stock-based compensation, Amount			134,185				134,185
Exercise of stock options, Shares		85,266
Exercise of stock options, Amount		$ 853	(853)
Shares deducted from exercise of stock options for payment of withholding taxes, Shares		(30,755)
Shares deducted from exercise of stock options for payment of withholding taxes, Amount		$ (308)	(243,354)				(243,662)
Excess tax benefit from exercise of stock options			223,721				223,721
Acquisition of treasury stock, Amount						$ (278,022)	(278,022)
Acquisition of treasury stock, Shares						34,631
Dividends					(1,557,398)		(1,557,398)
Net income					6,959,620		6,959,620
Change in unrealized gains on available for sale securities, net of tax				(462,112)			(462,112)
Ending Balance, Amount at Dec. 31, 2015	$ 0	$ 82,896	32,987,082	484,220	13,605,225	$ (1,882,195)	45,277,228
Ending Balance, Shares at Dec. 31, 2015	0	8,289,606				960,969
Proceeds from private placement, net of closing costs of $192,369, Shares		595,238
Proceeds from private placement, net of closing costs of $192,369, Amount		$ 5,952	4,801,679				4,807,631
Stock-based compensation, Amount			106,882				106,882
Exercise of stock options, Shares		11,491
Exercise of stock options, Amount		$ 115	54,195				54,310
Excess tax benefit from exercise of stock options			563				563
Acquisition of treasury stock, Amount						$ (113,267)	(113,267)
Acquisition of treasury stock, Shares						13,500
Dividends					(1,941,271)
Net income					8,899,766		8,899,766
Change in unrealized gains on available for sale securities, net of tax				(411,289)			(411,289)
Ending Balance, Amount at Dec. 31, 2016	$ 88,963		$ 37,950,401	$ 72,931	$ 20,563,720	$ (1,995,462)	$ 56,680,553
Ending Balance, Shares at Dec. 31, 2016	8,896,335					974,469

Condensed Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 8,899,766	$ 6,959,620
Adjustments to reconcile net income to net cash flows provided by operating activities:
Net realized losses (gains) on sale of investments	(529,448)	50,546
Depreciation and amortization	1,124,921	1,032,009
Amortization of bond premium, net	449,632	323,773
Stock-based compensation	106,882	134,185
Excess tax benefit from exercise of stock options	(563)	(223,721)
Deferred income tax expense	(293,364)	(226,932)
Increase (decrease) in operating liabilities:
Premiums receivable, net	(1,027,743)	(1,674,756)
Receivables - reinsurance contracts	0	1,301,549
Reinsurance receivables, net	(927,530)	4,305,041
Deferred policy acquisition costs	(1,404,475)	(1,849,325)
Other assets	(615,681)	224,211
Increase (decrease) in operating liabilities:
Loss and loss adjustment expense reserves	1,860,219	(36,183)
Unearned premiums	6,104,134	8,432,200
Advance premiums	222,184	192,794
Reinsurance balances payable	457,095	(407,441)
Deferred ceding commission revenue	416,773	478,528
Accounts payable, accrued expenses and other liabilities	358,223	1,385,809
Net cash flows provided by operating activities	15,201,025	20,401,907
Cash flows from investing activities:
Purchase - fixed-maturity securities available-for-sale	(36,551,218)	(19,152,457)
Purchase - equity securities available-for-sale	(7,464,764)	(3,766,972)
Sale or maturity - fixed-maturity securities available-for-sale	17,752,130	6,577,943
Sale - equity securities available-for-sale	7,073,773	2,689,113
Acquisition of fixed assets	(576,212)	(1,260,519)
Recovery of loss from failed bank		0
Other investing activities	250,448	10,840
Net cash flows used in investing activities	(19,515,843)	(14,902,052)
Cash flows from financing activities:
Net proceeds from issuance of common stock	4,807,631	0
Proceeds from exercise of stock options	54,310	0
Withholding taxes paid on net exercise of stock options	0	(243,662)
Excess tax benefit from exercise of stock options	563	223,721
Purchase of treasury stock	(113,267)	(278,022)
Dividends paid	(1,941,271)	(1,557,398)
Net cash flows used in financing activities	2,807,966	(1,855,361)
(Decrease) increase in cash and cash equivalents	(1,506,852)	3,644,494
Cash and cash equivalents, beginning of period	13,551,372	9,906,878
Cash and cash equivalents, end of period	12,044,520	13,551,372
Supplemental disclosures of cash flow information:
Cash paid for income taxes	6,028,671	3,596,754
Supplemental schedule of non-cash investing and financing activities:
Value of shares deducted from exercise of stock options for payment of withholding taxes	$ 0	$ 243,662

1. Nature of Business	12 Months Ended
1. Nature of Business	Dec. 31, 2016
Weighted average amortization period of identified intangible assets of finite useful life
1. Nature of Business	Kingstone Companies, Inc. (referred to herein as "Kingstone" or the “Company”), through its wholly owned 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 States of New York, New Jersey, Connecticut, Pennsylvania, Rhode Island and Texas; however, KICO writes substantially all of its business in New York. Through March 31, 2015, Kingstone, through its wholly owned subsidiary, Payments Inc., a licensed premium finance company in the State of New York, received fees for placing contracts with a third party licensed premium finance company (see Note 18 – Premium Finance Placement Fees).

2. Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

2. Summary of Significant Accounting Policies

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; (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 18 – Premium Finance Placement Fees).

Loss and Loss Adjustment Expenses (“LAE”) Reserves

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 reserving methodologies. 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. Adjustments to these estimates are reflected in expense for the period in which the estimates are changed. Because of the nature of the business historically written, management believes that the Company has limited exposure to environmental claim liabilities.

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. This is done by reinsuring certain levels of risk in various areas of exposure with a panel of financially secure reinsurance carriers.

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 recorded in the consolidated financial statements. Adjustments to these estimates are reflected in the period in which the estimates are changed. Loss and LAE incurred as presented in the consolidated statement of income and comprehensive income are net of reinsurance recoveries.

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.

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, 2016 and 2015. The Company did not expense any uncollectible reinsurance for the years ended December 31, 2016 and 2015. 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 material adverse effect on the consolidated financial statements as well as KICO’s ability to meet its 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.

Investments

The Company classifies 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 the consolidated statements of stockholders’ equity. Realized gains and losses are determined on the specific identification method and recognized in the consolidated statements 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, 2016 and 2015, due and accrued investment income was approximately $694,00 for both periods and is included in other assets on the accompanying consolidated balance sheets.

Premiums Receivable

Premiums receivable are presented net of an allowance for doubtful accounts of approximately $212,000 and $231,000 as of December 31, 2016 and 2015, 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 $98,000 and $72,000 were written off for the years ended December 31, 2016 and 2015, 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. 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. No impairment losses from intangible assets were recognized for the years ended December 31, 2016 and 2015.

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. At December 31, 2016 and 2015, 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. At December 31, 2016, 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 a variety of investment strategies. The Company believes that no significant concentration of credit risk exists with respect to investments. At times, cash may be uninsured or in deposit accounts that exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The Company has not experienced any losses in such accounts and management believes the Company is not exposed to any significant credit risk. Cash equivalents are not insured by the FDIC.

As of December 31, 2016 and 2015, the Company had deposits of cash equivalents as follows:

	December 31,		December 31,
	2016		2015

Collateralized bank repurchase agreement (1)	$	6,268,647	$	3,992,509
Money market fund		3,121,155		7,505,531
Total	$	9,389,802	$	11,498,040

(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, 2016, the outstanding premiums receivable balance is generally diversified due to the large number of individual insureds comprising the Company’s customer base. The Company’s customer base 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 of 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 in excess of 10% of the total subject the Company to concentration risk for the years ended December 31, 2016 and 2015 as follows:

	Years ended December 31,
	2016			2015
Personal Lines		76.8	%		75.4	%
Commercial Lines		12.8	%		13.6	%
Livery physical damage		10.1	%	na
Total premiums earned subject to concentration		99.7	%		89.0	%
Premiums earned not subject to concentration		0.3	%		11.0	%
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 estimation errors due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of many years. In addition, estimates and assumptions associated with receivables under reinsurance contracts related to contingent ceding commission revenue require judgments by management. On an on-going basis, management reevaluates its assumptions and the methods for calculating these 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 is initiated. Advertising costs are included in other underwriting expenses in the accompanying consolidated statements of income and comprehensive income, and were approximately $169,000 and $75,000 for the years ended December 31, 2016 and 2015, respectively.

Stock-based Compensation

Comprehensive Income

Comprehensive income refers to revenue, expenses, gains and losses that 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 and losses on available-for-sale securities.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 – Revenue from Contracts with Customers (Topic 606). 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. ASU 2014-09, as amended by ASU 2015-14, ASU 2016-08 and ASU 2016-10, is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted for annual 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 financial statements.

In January 2016, FASB issued ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The updated accounting guidance requires changes to the reporting model for financial instruments. The primary change for the Company is expected to be the requirement for equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The updated guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements.

In February 2016, FASB issued ASU 2016-02 – Leases (Topic 842). Under this ASU, lessees will recognize a right-of-use asset and corresponding liability on the balance sheet for all leases, except for leases covering a period of fewer than 12 months. The liability is to be measured as the present value of the future minimum lease payments taking into account renewal options if applicable plus initial incremental direct costs such as commissions. The minimum payments are discounted using the rate implicit in the lease or, if not known, the lessee’s incremental borrowing rate. The lessee’s income statement treatment for leases will vary depending on the nature of what is being leased. A financing type lease is present when, among other matters, the asset is being leased for a substantial portion of its economic life or has an end-of-term title transfer or a bargain purchase option as in today’s practice. The payment of the liability set up for such leases will be apportioned between interest and principal; the right-of use asset will be generally amortized on a straight-line basis. If the lease does not qualify as a financing type lease, it will be accounted for on the income statement as rent on a straight-line basis. The guidance will be effective for the Company for reporting periods beginning after December 15, 2018. The Company will apply the guidance using a modified retrospective approach. Early application is permitted. The Company does not expect the adoption of ASU 2016-02 to have a significant impact on its consolidated results of operations, financial position or cash flows.

In March 2016, FASB issued ASU 2016-09 – Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments are intended to improve the accounting for employee share-based payments. These amendments to current accounting guidance will require all income tax effects of awards to be recognized in the income statement when the awards vest or are settled rather than through additional paid in capital in the equity section of the balance sheet. The amendments also permit an employer to repurchase an employee’s shares at the maximum statutory tax rate in the employee’s applicable jurisdiction for tax withholding purposes without triggering liability accounting. Finally, the amendments permit entities to make a one-time accounting policy election to account for forfeitures as they occur. Specific adoption methods depend on the issue being adopted and range from prospective to retrospective adoption. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted; however all amendments must be adopted in the same period. The Company is evaluating whether the adoption of ASU 2016-09 will have a significant impact on its consolidated results of operations, financial position or cash flows.

In June 2016, FASB issued ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The revised accounting guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses of available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020. The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements.

In August 2016, FASB issued ASU 2016-15 - Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The revised ASU provides accounting guidance for eight specific cash flow issues. FASB issued the standard to clarify areas where GAAP has been either unclear or lacking in specific guidance. ASU 2016-15 will be effective for the Company for reporting periods beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect the updated guidance will have on its consolidated statement of cash flows.

In December 2016, FASB issued ASU 2016-19 – Technical Corrections and Improvements (Amendment to a Number of Topics in FASB Accounting Standards Codification). ASU 2016-19 is part of an ongoing FASB project to facilitate Codification updates for non-substantive technical corrections, clarifications, and improvements that are not expected to have a significant effect on accounting practice or create a significant administrative cost to most entities. The ASU will apply to all reporting entities within the scope of the affected accounting guidance. The amendments that require transition guidance are effective for all entities for annual and interim reporting periods beginning after December 15, 2016. Early adoption is permitted for the amendments that require transition guidance. All other amendments were effective on issuance. The Company does not expect the adoption of ASU 2016-19 to have a significant impact on its consolidated results of operations, financial position or cash flows.

The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

3. Investments

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

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, 2016 and December 31, 2015 are summarized as follows:

	December 31, 2016
													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	$	8,053,449	$	199,028	$	(46,589	)	$	-		$	8,205,888	$	152,439

Corporate and other bonds
Industrial and miscellaneous		53,728,395		600,519		(638,113	)		(5,612	)		53,685,189		(43,206	)

Residential mortgage backed
securities		18,814,784		70,682		(309,273	)		(38,442	)		18,537,751		(277,033	)
Total fixed-maturity securities		80,596,628		870,229		(993,975	)		(44,054	)		80,428,828		(167,800	)

Equity Securities:
Preferred stocks		5,986,588		10,317		(241,333	)		(70,571	)		5,685,001		(301,587	)
Common stocks		3,722,797		691,324		(13,968	)		(97,468	)		4,302,685		579,888
Total equity securities		9,709,385		701,641		(255,301	)		(168,039	)		9,987,686		278,301

Total	$	90,306,013	$	1,571,870	$	(1,249,276	)	$	(212,093	)	$	90,416,514	$	110,501

	December 31, 2015
													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	$	12,139,793	$	431,194	$	(15,889	)	$	-		$	12,555,098	$	415,305

Corporate and other bonds
Industrial and miscellaneous		45,078,044		490,444		(512,427	)		(99,593	)		44,956,468		(121,576	)

Residential mortgage backed
securities		5,003,292		48,375		(61,169	)		-			4,990,498		(12,794	)
Total fixed-maturity securities		62,221,129		970,013		(589,485	)		(99,593	)		62,502,064		280,935

Equity Securities:
Preferred stocks		2,874,173		70,799		-			(29,322	)		2,915,650		41,477
Common stocks		5,877,364		514,977		(103,721	)		-			6,288,620		411,256
Total equity securities		8,751,537		585,776		(103,721	)		(29,322	)		9,204,270		452,733

Total	$	70,972,666	$	1,555,789	$	(693,206	)	$	(128,915	)	$	71,706,334	$	733,668

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, 2016 and 2015 is shown below:

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

	December 31, 2016				December 31, 2015
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	1,752,501	$	1,765,795	$	827,246	$	837,918
One to five years		29,541,568		29,913,308		17,146,349		17,393,571
Five to ten years		30,487,775		30,211,974		37,877,726		37,884,450
More than 10 years		-		-		1,366,516		1,395,627
Residential mortgage backed securities		18,814,784		18,537,751		5,003,292		4,990,498
Total	$	80,596,628	$	80,428,828	$	62,221,129	$	62,502,064

Held-to-Maturity Securities

The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of December 31, 2016 and 2015 are summarized as follows:

	December 31, 2016
													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	$	606,427	$	147,612	$	-		$	-		$	754,039	$	147,612

Political subdivisions of States,
Territories and Possessions		1,349,916		37,321		-			-			1,387,237		37,321

Corporate and other bonds
Industrial and miscellaneous		3,138,559		72,784		(7,619	)		(46,881	)		3,156,843		18,284

Total	$	5,094,902	$	257,717	$	(7,619	)	$	(46,881	)	$	5,298,119	$	203,217

	December 31, 2015
													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	$	606,389	$	147,650	$	-		$	-		$	754,039	$	147,650

Political subdivisions of States,
Territories and Possessions		1,417,679		70,284		-			(54,189	)		1,433,774		16,095

Corporate and other bonds
Industrial and miscellaneous		3,114,804		82,265		(17,980	)		(125,807	)		3,053,282		(61,522	)

Total	$	5,138,872	$	300,199	$	(17,980	)	$	(179,996	)	$	5,241,095	$	102,223

Held-to-maturity 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, 2016 and 2015 is shown below:

	December 31, 2016				December 31, 2015
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	-	$	-	$	-	$	-
One to five years		650,000		642,455		500,000		496,245
Five to ten years		3,838,475		3,901,625		4,032,483		3,990,811
More than 10 years		606,427		754,039		606,389		754,039
Total	$	5,094,902	$	5,298,119	$	5,138,872	$	5,241,095

Investment Income

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

	Year ended
	December 31,
	2016		2015

Income:
Fixed-maturity securities	$	2,668,148	$	2,308,993
Equity securities		557,919		503,363
Cash and cash equivalents		19,047		7,314
Other		794		1
Total		3,245,908		2,819,671
Expenses:
Investment expenses		130,325		255,781
Net investment income	$	3,115,583	$	2,563,890

Proceeds from the sale and maturity of fixed-maturity securities were $17,752,130 and $6,577,943 for the years ended December 31, 2016 and 2015, respectively.

Proceeds from the sale of equity securities were $7,073,773 and $2,689,113 for the years ended December 31, 2016 and 2015, respectively.

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

	Year ended
	December 31,
	2016			2015

Fixed-maturity securities:
Gross realized gains	$	354,071		$	49,412
Gross realized losses		(302,087	)		(152,328	)
		51,984			(102,916	)

Equity securities:
Gross realized gains		637,249			153,711
Gross realized losses		(89,874	)		(101,341	)
		547,375			52,370

Other-than-temporary impairment losses:
Fixed-maturity securities		(69,911	)		-
		(69,911	)		-

Net realized gains (losses)	$	529,448		$	(50,546	)

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, 2016 and 2015, there were 85 and 57 securities, respectively, that accounted for the gross unrealized loss. As of December 31, 2016, the Company’s held-to-maturity debt securities included an investment in one bond issued by the Commonwealth of Puerto Rico (“PR”). In July 2016, PR defaulted on its interest payment to bondholders. Due to the credit deterioration of PR, the Company recorded a credit loss component of OTTI on this investment as of June 30, 2016. For the year ended December 31, 2016, the full amount of the write-down was recognized as a credit component of OTTI in the amount of $69,911 and is included as a reduction to net realized gains in the consolidated statements of income and comprehensive income. The Company determined that none of the other unrealized losses were deemed to be OTTI for its portfolio of fixed-maturity investments and equity securities for the years ended December 31, 2016 and 2015. 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, 2016 and 2015 as follows:

	December 31, 2016
	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 and
Possessions	$	1,067,574	$	(46,589	)		3	$	-	$	-			-	$	1,067,574	$	(46,589	)

Corporate and other
bonds industrial and
miscellaneous		19,859,293		(638,113	)		34		239,970		(5,612	)		1		20,099,263		(643,725	)

Residential mortgage
backed securities		15,918,090		(309,273	)		30		675,316		(38,442	)		6		16,593,406		(347,715	)

Total fixed-maturity
securities	$	36,844,957	$	(993,975	)		67	$	915,286	$	(44,054	)		7	$	37,760,243	$	(1,038,029	)

Equity Securities:
Preferred stocks	$	3,759,850	$	(241,333	)		8	$	660,750	$	(70,571	)		1	$	4,420,600	$	(311,904	)
Common stocks		288,075		(13,968	)		1		424,550		(97,468	)		1		712,625		(111,436	)

Total equity securities	$	4,047,925	$	(255,301	)		9	$	1,085,300	$	(168,039	)		2	$	5,133,225	$	(423,340	)

Total	$	40,892,882	$	(1,249,276	)		76	$	2,000,586	$	(212,093	)		9	$	42,893,468	$	(1,461,369	)

	December 31, 2015
	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 and
Possessions	$	1,432,005	$	(15,889	)		4	$	-	$	-			-	$	1,432,005	$	(15,889	)

Corporate and other
bonds industrial and
miscellaneous		18,424,609		(512,427	)		32		636,093		(99,593	)		2		19,060,702		(612,020	)

Residential mortgage
backed securities		2,413,980		(61,169	)		12		-		-			-		2,413,980		(61,169	)

Total fixed-maturity
securities	$	22,270,594	$	(589,485	)		48	$	636,093	$	(99,593	)		2	$	22,906,687	$	(689,078	)

Equity Securities:
Preferred stocks	$	-	$	-			-	$	702,000	$	(29,322	)		1	$	702,000	$	(29,322	)
Common stocks		2,538,900		(103,721	)		6		-		-			-		2,538,900		(103,721	)

Total equity securities	$	2,538,900	$	(103,721	)		6	$	702,000	$	(29,322	)		1	$	3,240,900	$	(133,043	)

Total	$	24,809,494	$	(693,206	)		54	$	1,338,093	$	(128,915	)		3	$	26,147,587	$	(822,121	)

4. Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

4. Fair Value Measurements

Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation technique used by the Company to fair value its financial instruments is the market approach which uses prices and other relevant information generated by market transactions involving identical or comparable assets.

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, and residential mortgage-backed securities, 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 ability to observe 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, 2016 and 2015 as follows:

	December 31, 2016
($ in thousands)	Level 1		Level 2		Level 3		Total

Fixed-maturity securities available-for-sale
Political subdivisions of
States, Territories and
Possessions	$	-	$	8,205,888	$	-	$	8,205,888

Corporate and other
bonds industrial and
miscellaneous		48,356,317		5,328,872		-		53,685,189

Residential mortgage backed securities		-		18,537,751		-		18,537,751
Total fixed maturities		48,356,317		32,072,511		-		80,428,828
Equity securities		9,987,686		-		-		9,987,686
Total investments	$	58,344,003	$	32,072,511	$	-	$	90,416,514

	December 31, 2015
($ in thousands)	Level 1		Level 2		Level 3		Total

Fixed-maturity securities available-for-sale
Political subdivisions of
States, Territories and
Possessions	$	-	$	12,555,098	$	-	$	12,555,098

Corporate and other
bonds industrial and
miscellaneous		37,964,006		6,992,462		-		44,956,468

Residential mortgage backed securities		-		4,990,498		-		4,990,498
Total fixed maturities		37,964,006		24,538,058		-		62,502,064
Equity securities		9,204,270		-		-		9,204,270
Total investments	$	47,168,276	$	24,538,058	$	-	$	71,706,334

- 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, 2016

Weighted average amortization period of identified intangible assets of finite useful life

5. Fair Value of Financial Instruments

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 and 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 income 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 as of December 31, 2016 and 2015 are as follows:

	December 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value

Fixed-maturity securities held-to-maturity	$	5,094,902	$	5,298,119	$	5,138,872	$	5,241,095
Cash and cash equivalents	$	12,044,520	$	12,044,520	$	13,551,372	$	13,551,372
Premiums receivable	$	11,649,398	$	11,649,398	$	10,621,655	$	10,621,655
Reinsurance receivables	$	32,197,765	$	32,197,765	$	31,270,235	$	31,270,235
Real estate, net of accumulated depreciation	$	1,659,405	$	1,925,000	$	1,727,068	$	1,925,000
Reinsurance balances payable	$	2,146,017	$	2,146,017	$	1,688,922	$	1,688,922

6. Intangibles

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

6. Intangibles

Intangible assets consist of finite and indefinite life assets. Finite life intangible assets include customer and producer relationships and other identifiable intangibles. The 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 2.5 years as of December 31, 2016.

The components of intangible assets and their useful lives, accumulated amortization, and net carrying value as of December 31, 2016 and 2015 are summarized as follows:

			December 31, 2016						December 31, 2015
	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		2,550,000		850,000		3,400,000		2,210,000		1,190,000
Other identifiable
intangibles		7		950,000		950,000		-		950,000		882,184		67,816
Total			$	4,850,000	$	3,500,000	$	1,350,000	$	4,850,000	$	3,092,184	$	1,757,816

Intangible asset impairment testing and amortization

The Company performs an analysis annually as of December 31, or sooner if there are indicators that the asset may be impaired, 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, 2016 and 2015.

The Company recorded amortization expense related to intangibles of $407,816 and $475,714, respectively, for the years ended December 31, 2016 and 2015. The estimated aggregate amortization expense for the remaining life of finite life intangibles is as follows:

2017	$	340,000
2018		340,000
2019		170,000
	$	850,000

7. Reinsurance

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

7. Reinsurance

The Company’s quota share reinsurance treaties are on a July 1 through June 30 fiscal year basis; therefore, for year to date fiscal periods after June 30, two separate treaties will be included in such periods.

The Company’s quota share reinsurance treaties in effect for the year ended December 31, 2016 for its personal lines business, which primarily consists of homeowners’ policies, were covered under the July 1, 2015/June 30, 2016 treaty year (“2015/2016 Treaty”) and the July 1, 2016/June 30, 2017 treaty year (“2016/2017 Treaty”). The Company’s quota share reinsurance treaties in effect for the year ended December 31, 2015 were covered under the July 1, 2014/June 30, 2015 treaty year (“2014/2015 Treaty”) and the 2015/2016 Treaty.

The Company’s personal lines quota share treaty that covered the July 1, 2013/June 30, 2015 treaty years was a two year treaty that expired on June 30, 2015. Effective July 1, 2014, the Company exercised its contractual option to reduce the ceding percentage in the personal lines quota share treaty from 75% to 55% for the second year of the two year treaty.

The Company’s 2014/2015 Treaty, 2015/2016 Treaty and 2016/2017 Treaty provide for the following material terms:

	Treaty Year
	July 1, 2016			July 1, 2015			July 1, 2014
	to			to			to
Line of Busines	June 30, 2017			June 30, 2016			June 30, 2015

Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded		40	%		40	%		55	%
Risk retained	$	500,000		$	450,000		$	360,000
Losses per occurrence subject to quota share reinsurance coverage	$	833,333		$	750,000		$	800,000
Excess of loss coverage above quota share coverage	$	3,666,667		$	3,750,000		$	3,200,000

	$	833,333		$	750,000		$	800,000
Total reinsurance coverage per occurrence	$	4,000,000		$	4,050,000		$	3,640,000
Losses per occurrence subject to reinsurance coverage	$	4,500,000		$	4,500,000		$	4,000,000
Expiration date	June 30, 2017			June 30, 2016			June 30, 2015

Personal Umbrella
Quota share treaty:
Percent ceded - first $1,000,000 of coverage		90	%		90	%		90	%
Percent ceded - excess of $1,000,000 of coverage		100	%		100	%		100	%
Risk retained	$	100,000		$	100,000		$	100,000
Total reinsurance coverage per occurrence	$	4,900,000		$	2,900,000		$	2,900,000
Losses per occurrence subject to quota share reinsurance coverage	$	5,000,000		$	3,000,000		$	3,000,000
Expiration date	June 30, 2017			June 30, 2016			June 30, 2015

Commercial Lines:
General liability commercial policies, except for commercial auto
Quota share treaty:
Percent ceded (terminated effective July 1, 2014)	None			None			None
Risk retained	$	500,000		$	425,000		$	400,000
Losses per occurrence subject to quota share reinsurance coverage	None			None			None
Excess of loss coverage above quota share coverage	$	4,000,000		$	4,075,000		$	3,600,000

	$	500,000		$	425,000		$	400,000
Total reinsurance coverage per occurrence	$	4,000,000		$	4,075,000		$	3,600,000
Losses per occurrence subject to reinsurance coverage	$	4,500,000		$	4,500,000		$	4,000,000

Commercial Umbrella
Quota share treaty:
Percent ceded - first $1,000,000 of coverage		90	%
Percent ceded - excess of $1,000,000 of coverage		100	%
Risk retained	$	100,000
Total reinsurance coverage per occurrence	$	4,900,000
Losses per occurrence subject to quota share reinsurance coverage	$	5,000,000
Expiration date	June 30, 2017

Commercial Auto:
Risk retained				$	300,000		$	300,000
Excess of loss coverage in excess of risk retained				$	1,700,000		$	1,700,000
				in excess of			in excess of
				$	300,000		$	300,000
Catastrophe Reinsurance:
Initial loss subject to personal lines quota share treaty	$	5,000,000		$	4,000,000		$	4,000,000
Risk retained per catastrophe occurrence (1)	$	3,000,000		$	2,400,000		$	1,800,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)	$	247,000,000		$	176,000,000		$	137,000,000
Severe winter weather aggregate (3)	No			Yes			Yes
Reinstatement premium protection (4)	Yes			Yes			No

1.	Plus losses in excess of catastrophe coverage.
2.	Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts. Effective July 1, 2016, the duration of a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone was extended to 168 consecutive hours from 120 consecutive hours.

3.	From July 1, 2014 through June 30, 2016, catastrophe treaty also covered losses caused by severe winter weather during any consecutive 28 day period.
4.	Effective July 1, 2015, reinstatement premium protection for $16,000,000 of catastrophe coverage in excess of $4,000,000. Effective July 1, 2016, reinstatement premium protection for $20,000,000 of catastrophe coverage in excess of $5,000,000.

The single maximum risks per occurrence to which the Company is subject under the new treaties effective July 1, 2016 are as follows:

	July 1, 2016 - June 30, 2017
Treaty	Extent of Loss	Risk Retained
Personal Lines	Initial $833,333	$500,000
	$833,333 - $4,500,000	None(1)
	Over $4,500,000	100%

Personal Umbrella	Initial $1,000,000	$100,000
	$1,000,000 - $5,000,000	None(1)
	Over $5,000,000	100%

Commercial Lines	Initial $500,000	$500,000
	$500,000 - $4,500,000	None(1)
	Over $4,500,000	100%

Commercial Umbrella	Initial $1,000,000	$100,000
	$1,000,000 - $5,000,000	None(1)
	Over $5,000,000	100%

Catastrophe (2)	Initial $5,000,000	$3,000,000
	$5,000,000 - $252,000,000	None
	Over $252,000,000	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 single maximum risks per occurrence to which the Company is subject under the treaties that expired on June 30, 2016 and 2015 are as follows:

	July 1, 2015 - June 30, 2016		July 1, 2014 - June 30, 2015
Treaty	Extent of Loss	Risk Retained	Extent of Loss	Risk Retained
Personal Lines	Initial $750,000	$450,000	Initial $800,000	$360,000
	$750,000 - $4,500,000	None(1)	$800,000 - $4,000,000	None(1)
	Over $4,500,000	100%	Over $4,000,000	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 - $3,000,000	None(1)
	Over $3,000,000	100%	Over $3,000,000	100%

Commercial Lines	Initial $425,000	$425,000	Initial $400,000	$400,000
	$425,000 - $4,500,000	None(1)	$400,000 - $4,000,000	None(1)
	Over $4,500,000	100%	Over $4,000,000	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	$2,400,000	Initial $4,000,000	$1,800,000
	$4,000,000 - $180,000,000	None	$4,000,000 - $141,000,000	None
	Over $180,000,000	100%	Over $141,000,000	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 at December 31, 2016 and 2015 are as follows:

	Unpaid		Paid
($ in thousands)	Losses		Losses		Total		Security
December 31, 2016
Maiden Reinsurace Company	$	7,640	$	985	$	8,625	$	13,113	(1	)
Swiss Reinsurance America Corporation		4,310		671		4,981		-
SCOR Reinsurance Company		1,440		152		1,592		-
Allied World Assurance Company		392		300		692		-
Others		1,995		211		2,206		164	(2	)
Total	$	15,777	$	2,319	$	18,096	$	13,277

December 31, 2015
Maiden Reinsurace Company	$	7,979	$	631	$	8,610	$	12,201	(1	)
Swiss Reinsurance America Corporation		3,662		377		4,039		-
SCOR Reinsurance Company		1,982		114		2,096		-
Hannover Rueck		853		524		1,377		-
Allied World Assurance Company		940		285		1,225		-
Others		1,290		117		1,407		293	(3	)
Total	$	16,706	$	2,048	$	18,754	$	12,494

(1) Secured pursuant to collateralized trust agreements.
(2) Represents $161,000 secured pursuant to collateralized trust agreement and $3,000 guaranteed by an irrevocable letter of credit.
(3) Represents $248,000 secured pursuant to collateralized trust agreement and $45,000 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, 2016 and 2015 include unearned ceded premiums of $14,101,745 and $12,515,892, 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 (“Loss Ratio(s)”) for treaties in effect for the year ended December 31, 2016 are attributable to contracts for the 2016/2017 Treaty and the 2015/2016 Treaty. The Company’s Loss Ratios for treaties in effect for the year ended December 31, 2015 are attributable to contracts for the 2015/2016 Treaty and the 2014/2015 Treaty.

Treaties in effect for the year ended December 31, 2016

Under the 2016/2017 Treaty and 2015/2016 Treaty, the Company is receiving a higher upfront fixed provisional rate than in prior years’ treaties. In exchange for the higher provisional rate, the Company has a reduced opportunity to earn sliding scale contingent commissions. The Company’s Loss Ratios for the period from July 1, 2016 through December 31, 2016 (attributable to the 2016/2017 Treaty) were consistent with the contractual Loss Ratio at which provisional ceding commissions are earned and therefore no contingent commission was recorded. The Company’s Loss Ratios for the period July 1, 2015 through June 30, 2016 (attributable to the 2015/2016 Treaty) were higher than the contractual Loss Ratio at which provisional ceding commissions are earned and therefore the contingent commission was reduced.

Treaties in effect for the year ended December 31, 2015

The Company’s Loss Ratio for the period July 1, 2015 through December 31, 2015, which is attributable to the 2015/2016 Treaty, was higher than the contractual Loss Ratio at which provisional ceding commissions are earned. Accordingly, for the six month period ended December 31, 2015, the Company’s contingent ceding commission earned was reduced as a result of the estimated Loss Ratio for the 2015/2016 Treaty.

The Company’s Loss Ratio for the period July 1, 2014 through June 30, 2015, which is attributable to the 2014/2015 Treaty, was lower than the contractual Loss Ratio at which the provisional ceding commissions are earned. As a result of severe winter weather during the six months ended June 30, 2015, the Loss Ratio attributable to this treaty as of June 30, 2015 was greater than the Loss Ratio as of December 31, 2014. Accordingly, for the six months ended June 30, 2015, the Company’s contingent ceding commission earned was reduced as a result of the increase in the estimated Loss Ratio for the 2014/2015 Treaty.

In addition to the treaties that were in effect for the years ended December 31, 2016 and 2015, the 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,
	2016			2015

Provisional ceding commissions earned	$	12,769,404		$	11,692,458
Contingent ceding commissions earned		(1,501,163	)		(219,341	)
	$	11,268,241		$	11,473,117

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, the Loss Ratios from prior years’ treaties are subject to change as incurred losses from those periods develop, resulting in an increase or decrease in the commission rate and contingent ceding commissions earned. As of December 31, 2016 and 2015, net contingent ceding commissions payable to reinsurers under all treaties was approximately $773,000 and $1,277,000, respectively.

- 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 + Details

8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

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,
	2016			2015

Net deferred policy acquisition costs net of ceding
commission revenue, beginning of year	$	4,400,238		$	3,029,441

Cost incurred and deferred:
Commissions and brokerage		19,566,982			16,963,843
Other underwriting and policy acquisition costs		5,470,285			4,904,350
Ceding commission revenue		(13,186,177	)		(12,170,986	)
Net deferred policy acquisition costs		11,851,090			9,697,207
Amortization		(10,863,388	)		(8,326,410	)
		987,702			1,370,797

Net deferred policy acquisition costs net of ceding
commission revenue, end of year	$	5,387,940		$	4,400,238

Ending balances for deferred policy acquisition costs and deferred ceding commission revenue as of December 31, 2016 and 2015 follows:

	December 31,
	2016			2015

Deferred policy acquisition costs	$	12,239,781		$	10,835,306
Deferred ceding commission revenue		(6,851,841	)		(6,435,068	)
Balance at end of period	$	5,387,940		$	4,400,238

9. Property and Equipment

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

9. Property and Equipment

The components of property and equipment are summarized as follows:

			Accumulated
	Cost		Depreciation			Net

December 31, 2016
Building	$	1,887,347	$	(381,039	)	$	1,506,308
Land		153,097		-			153,097
Furniture office equipment		620,440		(388,853	)		231,587
Computer equipment and software		2,602,330		(1,481,949	)		1,120,381
Automobile		81,394		(81,394	)		-
Total	$	5,344,608	$	(2,333,235	)	$	3,011,373

December 31, 2015
Building	$	1,887,347	$	(313,376	)	$	1,573,971
Land		153,097		-			153,097
Furniture office equipment		518,495		(257,485	)		261,010
Computer equipment and software		2,128,063		(963,875	)		1,164,188
Automobile		81,394		(81,394	)		-
Total	$	4,768,396	$	(1,616,130	)	$	3,152,266

Depreciation expense for the years ended December 31, 2016 and 2015 was $717,105 and $556,295, respectively.

10. Property and Casualty Insurance Activity

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

10. Property and Casualty Insurance Activity

Premiums written, ceded and earned are as follows:

	Direct			Assumed		Ceded			Net

Year ended December 31, 2016
Premiums written	$	103,191,995		$	28,522	$	(37,294,330	)	$	65,926,187
Change in unearned premiums		(6,110,225	)		6,091		1,585,853			(4,518,281	)
Premiums earned	$	97,081,770		$	34,613	$	(35,708,477	)	$	61,407,906

Year ended December 31, 2015
Premiums written	$	91,003,968		$	40,971	$	(30,660,161	)	$	60,384,778
Change in unearned premiums		(8,436,456	)		4,255		(3,340,495	)		(11,772,696	)
Premiums earned	$	82,567,512		$	45,226	$	(34,000,656	)	$	48,612,082

Premium receipts in advance of the policy effective date are recorded as advance premiums. The balance of advance premiums as of December 31, 2016 and 2015 was $1,421,560 and $1,199,376, respectively.

The components of the liability for loss and LAE expenses and related reinsurance receivables as of December 31, 2016 and 2015 are as follows:

	Gross		Reinsurance
	Liability		Receivables
December 31, 2016
Case-basis reserves	$	25,000,733	$	10,804,341
Loss adjustment expenses		7,752,617		1,893,094
IBNR reserves		8,983,369		3,079,445
Recoverable on unpaid losses				15,776,880
Recoverable on paid losses		-		2,319,140
Total loss and loss adjustment expenses	$	41,736,719		18,096,020
Unearned premiums				14,101,745
Total reinsurance receivables			$	32,197,765

December 31, 2015
Case-basis reserves	$	24,730,463	$	11,264,279
Loss adjustment expenses		5,429,221		1,720,522
IBNR reserves		9,716,816		3,721,563
Recoverable on unpaid losses				16,706,364
Recoverable on paid losses		-		2,047,979
Total loss and loss adjustment expenses	$	39,876,500		18,754,343
Unearned premiums				12,515,892
Total reinsurance receivables			$	31,270,235

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

	Years ended
	December 31,
	2016			2015

Balance at beginning of period	$	39,876,500		$	39,912,683
Less reinsurance recoverables		(16,706,364	)		(18,249,526	)
Net balance, beginning of period		23,170,136			21,663,157

Incurred related to:
Current year		27,853,010			23,642,998
Prior years		(63,349	)		(462,998	)
Total incurred		27,789,661			23,180,000

Paid related to:
Current year		16,496,648			13,172,870
Prior years		8,503,310			8,500,151
Total paid		24,999,958			21,673,021

Net balance at end of period		25,959,839			23,170,136
Add reinsurance recoverables		15,776,880			16,706,364
Balance at end of period	$	41,736,719		$	39,876,500

Incurred losses and LAE are net of reinsurance recoveries under reinsurance contracts of $11,796,714 and $14,428,197 for the years ended December 31, 2016 and 2015, respectively.

Prior year incurred loss and LAE development results from changes in ultimate loss and LAE estimates by line of business and accident year. Prior year loss and LAE development incurred during the years ended December 31, 2016 and 2015 was favorable $(63,349) and favorable $(462,998), respectively. 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 including losses that have occurred but that have not yet been reported. The process relies on standard actuarial reserving methodologies, judgments relative to estimates of ultimate claims severity and frequency, the length of time before losses will develop to their ultimate level (‘tail’ factors), and the likelihood of changes in the law or other external factors that are 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 cumulative combination of the best estimates made by line of business, accident year, and loss and LAE. The amount of loss and LAE reserves for individual reported claims (the “case reserve”) is determined by the claims department and changes over time as new information is gathered. Such information includes a review of coverage applicability, comparative liability on the part of the insured, injury severity, property damage, replacement cost estimates, 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 aggregated 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 line of business 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.

Incremental Claim-Based Methods – historical patterns of incremental incurred losses and paid LAE during various stages of development are reviewed and assumptions are made regarding average loss and LAE development applied to remaining claims inventory. Such methods more properly reflect changes in the speed of claims closure and the relative adequacy of case reserve levels at various stages of development. These methods also provide a more accurate estimate of IBNR for lines of business with relatively few remaining open claims but for which significant recent settlement activity has occurred.

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 dates of December 31, 2013 and prior is limited although there remains the possibility of adverse development on reported claims (‘case development’ IBNR).

The following is information about incurred and paid claims development as of December 31, 2016, net of reinsurance, as well as the cumulative reported claims by accident year and total IBNR reserves as of December 31, 2016 included in the net incurred loss and allocated expense amounts. The historical information regarding incurred and paid claims development for the years ended December 31, 2007 to December 31, 2015 is presented as supplementary unaudited information.

All Lines of Business
*(in thousands, except reported claims data)*

		Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended December 31,
Accident Year		2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR	Cumulative Number of Reported Claims by Accident Year
	(Unaudited 2007 - 2015)

2007		$	3,572	$	3,414	$	3,655	$	3,710	$	3,744	$	3,770	$	3,877	$	3,913	$	3,916	$	3,941	6	1,067
2008					4,505		4,329		4,223		4,189		4,068		4,055		4,056		4,040		4,038	3	1,133
2009							4,403		4,254		4,287		4,384		4,511		4,609		4,616		4,667	8	1,136
2010									5,598		5,707		6,429		6,623		6,912		6,853		6,838	20	1,616
2011											7,603		7,678		8,618		9,440		9,198		9,066	69	1,913
2012													9,539		9,344		10,278		10,382		10,582	168	4,701	(1)
2013															10,728		9,745		9,424		9,621	507	1,551
2014																	14,193		14,260		14,218	1,009	2,117
2015																			22,340		21,994	2,452	2,508
2016																					26,062	5,593	2,688
																		Total		$	111,027

(1)	Reported claims for accident year 2012 includes 3,406 claims from Superstorm Sandy.

All Lines of Business
*(in thousands)*

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(Unaudited 2007 - 2015)

2007	$	1,790	$	2,233	$	2,924	$	3,428	$	3,603	$	3,649	$	3,670	$	3,797	$	3,873	$	3,892
2008				2,406		3,346		3,730		3,969		4,003		4,029		4,028		4,031		4,031
2009						2,298		3,068		3,607		3,920		4,134		4,362		4,424		4,468
2010								2,566		3,947		4,972		5,602		6,323		6,576		6,720
2011										3,740		5,117		6,228		7,170		8,139		8,540
2012												3,950		5,770		7,127		8,196		9,187
2013														3,405		5,303		6,633		7,591
2014																5,710		9,429		10,738
2015																		12,295		16,181
2016																				15,364
																	Total		$	86,712

Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	24,315
All outstanding liabilities before 2007, net of reinsurance																				602
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	24,917

Reported claim counts are measured on an occurrence or per event basis. A single claim occurrence could result in more than one loss type or claimant; however the Company counts claims at the occurrence level as a single claim regardless of the number of claimants or claim features involved.

The reconciliation of the net incurred and paid claims development tables to the liability for loss and LAE reserves in the consolidated balance sheet is as follows:

	As of
*(in thousands)*	December 31, 2016
Liabilities for claims and claim adjustment expenses, net of reinsurance	$	24,917
Total reinsurance recoverable on unpaid claims		15,777
Unallocated claims adjustment expenses		1,043
Total gross liability for loss and LAE reserves	$	41,737

The following is supplementary unaudited information about average historical claims duration as of December 31, 2016:

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10

All Lines of Business		46.1	%	18.6	%	12.7	%	9.3	%	6.7	%	3.0	%	1.0	%	1.4	%	1.0	%	0.5	%

The percentages in the above table do not add up to 100% because the percentages represent averages across all accident years at each development stage.

Commercial Auto Line of Business

Effective October 1, 2014 the Company decided that it would 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 would no longer offer renewals on its existing commercial auto policies beginning with those that expired on or after May 1, 2015. The Company had -0- and 134 commercial auto policies in force as of December 31, 2016 and 2015, respectively.

11. Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

11. Stockholders' Equity

Private Placement of Common Stock

In April 2016, the Company sold 595,238 newly issued shares of its Common Stock to RenaissanceRe Ventures Ltd., a subsidiary of RenaissanceRe Holdings Ltd. (NYSE:RNR) (“RenaissanceRe”), in a private placement. RenaissanceRe is a global provider of catastrophe and specialty reinsurance and insurance.

The new shares of Common Stock were sold to RenaissanceRe at a price of $8.40 per share. The Company received net proceeds of approximately $4,808,000 from the private placement. In June 2016, the Company invested $3,000,000 of the proceeds in KICO as additional surplus to support its continued growth. The Company intends to use the remaining net proceeds of the offering for general corporate purposes.

Public Offering of Common Stock

See Note 19 Subsequent Events.

Dividend Declared

Dividends declared and paid on Common Stock were $1,941,271 and $1,557,398 for the years ended December 31, 2016 and 2015, respectively. The Company’s Board of Directors approved a quarterly dividend on February 7, 2017 of $.0625 per share payable in cash on March 15, 2017 to stockholders of record as of February 28, 2017 (see Note 19 Subsequent Events).

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 stockholder 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. The stockholders approved the 2014 Plan on August 11, 2015. 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, 2016 and 2015 include stock-based compensation expense totaling $106,882 and $134,185, respectively. Stock-based compensation expense related to stock options is net of estimated forfeitures of 17% for the years ended December 31, 2016 and 2015. Such amounts have been included in the consolidated statements of income and comprehensive income within other operating expenses.

Stock-based compensation expense in 2016 and 2015 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. The Company uses the “simplified” method to estimate the expected term of the options because the Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate expected term. The weighted average estimated fair value of stock options granted during the year ended December 31, 2016 and 2015 was $1.87 per share. The fair value of stock options at the grant date was estimated using the Black-Scholes option-pricing model.

The following weighted average assumptions were used for grants during the following periods:

	Years ended
	December 31,
	2016	2015
Dividend Yield	2.74% - 3.18%	2.62%
Volatility	31.61% - 31.81%	34.54%
Risk-Free Interest Rate	1.01% - 1.11%	1.03%
Expected Life	3.25 years	3.0 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 our 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 our stock options.

A summary of stock option activity under the Company’s 2014 Plan and 2005 Plan for the year ended December 31, 2016 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, 2016		339,750		$	6.34		3.36	$	904,775

Granted		40,000		$	8.33			$	216,950
Exercised		(12,000	)	$	4.96			$	80,985
Forfeited		(5,000	)	$	5.09			$	17,600

Outstanding at December 31, 2016		362,750		$	6.62		2.61	$	2,586,748

Vested and Exercisable at December 31, 2016		270,250		$	6.40		2.39	$	1,985,285

The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2016 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 $13.75 closing price of the Company’s Common Stock on December 31, 2016. The total intrinsic value of options exercised in the year ended December 31, 2016 was $80,985, determined as of the date of exercise.

Participants in the 2005 Plan and 2014 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 $54,310 from the exercise of options for the purchase of 11,000 shares of Common Stock during the year ended December 31, 2016. The remaining 1,000 options exercised during the year ended December 31, 2016 were Net Exercises. All of the 127,750 options exercised during the year ended December 31, 2015 were Net Exercises.

As of December 31, 2016, the fair value of unamortized compensation cost related to unvested stock option awards was approximately $45,000. Unamortized compensation cost as of December 31, 2016 is expected to be recognized over a remaining weighted-average vesting period of 1.04 years.

As of December 31, 2016, there were 602,500 shares reserved under the 2014 Plan.

Other Equity Compensation

In January 2016, the Company granted a total of 6,000 shares of restricted Common Stock under the 2014 Plan to its three then non-employee directors. In March 2016, the Company granted 1,500 shares of restricted Common Stock under the 2014 Plan to a newly elected non-employee director. One-third of the shares granted will vest on each of the three following anniversaries following the grant date. The fair value of the shares are determined at grant date.

- 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

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+ Details

12. Statutory Financial Information and Accounting Policies

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

12. 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 36 months, net of dividends paid by KICO during such period. 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, 2016 and 2015, KICO paid dividends to Kingstone of $1,950,000 and $1,650,000, respectively. On February 23, 2017, KICO’s Board of Directors approved a cash dividend of $500,000 to Kingstone, which was paid on February 24, 2017. For the years ended December 31, 2016 and 2015, KICO had statutory basis net income of $9,212,125 and $6,632,042, respectively. At December 31, 2016 and 2015, KICO had reported statutory basis surplus as regards policyholders of $49,962,415 and $39,072,962, respectively, as filed with the DFS.

13. Risk Based Capital

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

13. 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 (“ACL”).

The RBC guidelines define specific capital levels based on a company’s ACL that are determined by the ratio of the company’s total adjusted capital (“TAC”) to its ACL. TAC is equal to statutory capital, plus or minus certain other specified adjustments. The Company’s TAC is far above the ACL for each of the last two years and is in compliance with RBC requirements as of December 31, 2016 and 2015.

- 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.

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-Publisher FASB
-Name Accounting Standards Codification
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+ Details

14. Income Taxes

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

14. 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 return 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 condensed consolidated financial statements taken as a whole for the respective periods.

The provision for income taxes is comprised of the following:

Years ended December 31,	2016			2015

Current federal income tax expense	$	4,824,655		$	3,557,385
Current state income tax expense		(12,590	)		19,000
Deferred federal and state income tax expense (benefit)		(293,364	)		(226,932	)
Provision for income taxes	$	4,518,701		$	3,349,453

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

Years ended December 31,	2016					2015
Computed expected tax expense	$	4,696,463		35.0	%	$	3,505,085		34.0	%
State taxes, net of Federal benefit		(71,428	)	(0.5	)		(74,827	)	(0.7	)
State valuation allowance		85,714		0.6			171,532		1.7
Benefit of lower tax brackets		(100,000	)	(0.7	)		-		-
Permanent differences
Dividends received deduction		(136,690	)	(1.0	)		(121,960	)	(1.2	)
Non-taxable investment income		(110,784	)	(0.8	)		(177,487	)	(1.7	)
Other permanent differences		48,139		0.3			55,623		0.5
Prior year tax matters		123,976		0.9			(49,139	)	(0.5	)
Other		(16,689	)	(0.1	)		40,626		0.4
Total tax	$	4,518,701		33.7	%	$	3,349,453		32.5	%

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,
	2016			2015

Deferred tax asset:
Net operating loss carryovers (1)	$	131,626		$	150,492
Claims reserve discount		417,349			405,709
Unearned premium		2,877,365			2,555,012
Deferred ceding commission revenue		2,329,626			2,187,923
Other		188,675			151,250
Total deferred tax assets		5,944,641			5,450,386

Deferred tax liability:
Investment in KICO (2)		1,169,000			1,169,000
Deferred acquisition costs		4,161,526			3,684,004
Intangibles		459,000			597,657
Depreciation and amortization		265,671			415,938
Net unrealized appreciation of securities - available for sale		56,393			255,977
Total deferred tax liabilities		6,111,590			6,122,576

Net deferred income tax liability	$	(166,949	)	$	(672,190	)

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

Type of NOL	2016			2015			Expiration
State only (A)	$	655,719		$	540,865		December 31, 2036
Valuation allowance		(534,293	)		(403,973	)
State only, net of valuation allowance		121,426			136,892
Amount subject to Annual Limitation, federal only (B)		10,200			13,600		December 31, 2019
Total deferred tax asset from net operating loss carryovers	$	131,626		$	150,492

(A) Kingstone generates operating losses for state purposes and has prior year NOLs available. The state NOL as of December 31, 2016 and 2015 was approximately $10,088,000 and $8,321,000, 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 NOLs over their remaining lives, which expire between 2027 and 2036.

(B) The Company has an NOL of $30,000 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, 2016:

Change in net deferred income tax liabilities	$	(505,241	)
Deferred tax expense (benefit) allocated to other comprehensive income		(211,877	)
Deferred income tax provision (benefit)	$	(293,364	)

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 material interest or penalties related to income taxes that have been accrued or recognized as of and for the years ended December 31, 2016 and 2015. If any had been recognized these would be reported in income tax expense.

The tax returns for years ended December 31, 2013 through 2016 are subject to examination, generally for three years after filing.

15. Employee Benefit Plans	12 Months Ended
15. Employee Benefit Plans	Dec. 31, 2016
Weighted average amortization period of identified intangible assets of finite useful life
15. 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 $483,000 and $422,000 of expense for the years ended December 31, 2016 and 2015, respectively, related to the 401(k) Plan. For the years ended December 31, 2016 and 2015, Additional Contributions totaled approximately $309,000 and $263,000, respectively.

16. Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

16. 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.

Office Lease

In June 2016, the Company entered into a lease modification agreement for its office facility for KICO located in Valley Stream, NY under a non-cancelable operating lease dated March 27, 2015. The original lease had a term of seven years and nine months. The lease modification increased the space occupied by KICO and extended the lease term to seven years and nine months to be measured from the additional premises commencement date. The additional premises commencement date was September 19, 2016, and additional rent will be payable beginning March 19, 2017. The original lease commencement date was July 1, 2015 and rent commencement began January 1, 2016.

In addition to the base rental costs, occupancy lease agreements generally provide for rent escalations resulting from increased assessments from real estate taxes and other charges. Rent expense under the lease will be recognized on a straight-line basis over the lease term. At December 31, 2016, cumulative rent expense exceeded cumulative rent payments by $71,221. This difference is recorded as deferred rent and is included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated balance sheets.

As of December 31, 2016, aggregate future minimum rental commitments under this agreement are as follows:

For the Year
Ending
December 31,	Total
2017	$	146,008
2018		164,117
2019		169,861
2020		175,806
2021		181,959
Thereafter		432,392
Total	$	1,270,143

Rent expense for the years ended December 31, 2016 and 2015 amounted to $119,720 and $52,252, respectively, and is included in the consolidated statements of income and comprehensive income within other underwriting expenses.

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 was subject to stockholder approval of the 2014 Plan. The stockholders approved the 2014 Plan on August 11, 2015. 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.

The Goldstein Employment Agreement expired on December 31, 2016 and in January 2017, Mr. Goldstein entered into a new employment agreement with the Company. See Note 19 Subsequent Events for the new employment agreement in effect as of January 1, 2017.

Executive Vice President (KICO)

John D. Reiersen, KICO’s Executive Vice President, was employed through December 31, 2016 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 Employment Agreement”). The Reiersen Employment Agreement expired on December 31, 2016 and was terminable by KICO at any time with or without cause upon written notice. In the event of termination by KICO, Mr. Reiersen was 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 Employment Agreement, Mr. Reiersen’s minimum annual salary effective from January 1, 2012 through December 31, 2014 was $100,000. His minimum annual salary effective January 1, 2015 was $105,000. His minimum salary in both periods was subject to increase based upon the provision of more than 500 hours of service per year on behalf of KICO. Mr. Reiersen also received additional customary benefits and a $5,000 annual fee for his position as a director of KICO.

The Reiersen Employment Agreement expired on December 31, 2016 and was not renewed upon his retirement. In 2017, Mr. Reiersen’s annual fee for his position as a non-employee director of KICO was increased to $10,000.

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 DFS that any intercompany transaction between itself and KICO must be filed with the DFS 30 days prior to implementation.

17. Earnings Per Common Share

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

17. 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 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 common 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 common share excludes outstanding options in periods where the exercise of such options would be anti-dilutive. For the years ended December 31, 2016 and 2015, the inclusion of 7,715 and -0- options, respectively, in the computation of diluted earnings per common 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 share has not been adjusted for the effect of such options.

The reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per common share follows:

	Year ended
	December 31,
	2016		2015

Weighted average number of shares outstanding		7,736,594		7,331,114
Effect of dilutive securities, common share equivalents		70,669		46,766

Weighted average number of shares outstanding,
used for computing diluted earnings per share		7,807,263		7,377,880

18. Premium Finance Placement Fees

12 Months Ended

Dec. 31, 2016

Premium Finance Placement Fees

18. 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 would purchase, assume and service all eligible premium finance contracts originated by Payments in the state of New York (the “Payments Agreement”). In connection with such purchases, Payments was entitled to receive a fee generally equal to a percentage of the amount financed.

In July 2014, the Purchaser terminated the Payments Agreement effective February 1, 2015. Following any expiration or termination of the obligation of the Purchaser to purchase premium finance contracts, Payments was entitled to receive the fees for an additional two years (“Termination Period”) with regard to contracts for policies from the Company’s producers. On March 26, 2015, the Company and the Purchaser agreed to amend the Termination Period to end as of March 31, 2015. The Company received a one-time payment of $350,000 in exchange for the fees that the Company would have received during the Termination Period. The Company’s premium financing business consisted of the placement fees that Payments earned 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,
	2016		2015

Placement fee revenue	$	-	$	54,343
Termination fee		-		350,000
Direct expenses		-		(12,989	)
Net income before taxes from placement fees	$	-	$	391,354

19. Subsequent Events

12 Months Ended

Dec. 31, 2016

Weighted average amortization period of identified intangible assets of finite useful life

19. Subsequent Events

The Company has evaluated events that occurred subsequent to December 31, 2016 through March 16, 2017, 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 7, 2017, the Company’s Board of Directors approved a dividend of $.0625 per share, or $663,837, payable in cash on March 15, 2017 to stockholders of record as of February 28, 2017.

Public Offering of Common Stock

On January 31, 2017, the Company closed on an underwritten public offering of 2,500,000 shares of its Common Stock. On February 14, 2017, the Company closed on the underwriters’ 30-day purchase option for an additional 192,500 shares of its Common Stock. The public offering price for the 2,692,500 shares sold was $12.00 per share. The aggregate net proceeds to the Company was approximately $30,230,000, after deducting underwriting discounts and commissions and other offering expenses of $2,080,000.

On March 1, 2017, the Company used $23,000,000 of the net proceeds of the offering to contribute capital to its insurance subsidiary, KICO, to support its ratings upgrade plan and additional growth. The remainder of the net proceeds will be used for general corporate purposes. A shelf registration statement relating to the shares sold in the offering was filed with the SEC and became effective on January 19, 2017.

Employment Agreement

On January 20, 2017, the Company and Barry Goldstein, the Company's President, Chief Executive Officer and Chairman of the Board, entered into a new employment agreement (the “2017 Goldstein Employment Agreement”). The 2017 Goldstein Employment Agreement is effective as of January 1, 2017 and expires on December 31, 2019.

Pursuant to the 2017 Goldstein Employment Agreement, Mr. Goldstein is entitled to receive an annual base salary of $630,000 (an increase from $575,000 per annum in effect through December 31, 2016) and an annual bonus equal to 6% of the Company's consolidated income from operations before taxes, exclusive of the Company's consolidated net investment income (loss) and net realized gains (losses) on investments (consistent with the bonus payable to Mr. Goldstein through December 31, 2016). In addition, pursuant to the 2017 Goldstein Employment Agreement, Mr. Goldstein is entitled to a long-term compensation payment ("LTC") of between $945,000 and $2,835,000 in the event the Company's adjusted book value per share (as defined in the 2017 Goldstein Employment Agreement) has increased by at least an average of 8% per annum as of December 31, 2019 as compared to December 31, 2016 (with the maximum LTC payment being due if the average per annum increase is at least 14%).

Further, pursuant to the 2017 Goldstein Employment Agreement, in the event that Mr. Goldstein's employment is terminated by the Company without cause or he resigns for good reason (each as defined in the 2017 Goldstein Employment Agreement), Mr. Goldstein would be entitled to receive his base salary, the 6% bonus and the LTC payment for the remainder of the term. Mr. Goldstein would be entitled, under certain circumstances, to a payment equal to one and one-half times his then annual salary and the target LTC payment of $1,890,000 in the event of the termination of his employment following a change of control of the Company.

In consideration of certain accomplishments during the three year period ended December 31, 2016, the Company also paid Mr. Goldstein a bonus in the amount of $200,000.

20. Quarterly Financial Data

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

20. Quarterly Financial Data

The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2016 and 2015:

	2016
	March 31,		June 30,		September 30,		December 31,			Total

Net premiums earned	$	14,531,675	$	15,010,875	$	15,646,181	$	16,219,175		$	61,407,906
Ceding commission revenue		2,770,337		2,569,025		2,934,928		2,993,951			11,268,241
Net investment income		813,057		764,070		709,072		829,384			3,115,583
Net realized gain (loss) on sale of investments		80,436		283,432		241,035		(75,455	)		529,448
Total revenues		18,444,852		18,911,910		19,828,397		20,251,505			77,436,664
Loss and loss adjustment expenses		9,483,855		5,786,836		5,134,854		7,384,116			27,789,661
Commission expense and
other underwriting expenses		7,616,507		8,122,342		8,642,964		8,812,023			33,193,836
Net income		541,032		2,842,261		3,460,626		2,055,847			8,899,766
Basic earnings per share	$	0.07	$	0.36	$	0.44	$	0.26		$	1.15
Diluted earnings per share	$	0.07	$	0.36	$	0.43	$	0.26		$	1.14

	2015
	March 31,			June 30,		September 30,			December 31,		Total

Net premiums earned	$	10,385,799		$	10,865,715	$	13,129,604		$	14,230,964	$	48,612,082
Ceding commission revenue		3,089,404			3,655,522		2,643,531			2,084,660		11,473,117
Net investment income		574,656			625,972		649,441			713,821		2,563,890
Net realized gain (loss) on sale of investments		(67,494	)		2,263		(40,487	)		55,172		(50,546	)
Total revenues		14,613,556			15,542,512		16,657,369			17,362,297		64,175,734
Loss and loss adjustment expenses		7,063,217			4,770,813		5,050,194			6,295,776		23,180,000
Commission expense and
other underwriting expenses		6,411,482			6,561,827		7,410,407			7,766,815		28,150,531
Net income		382,499			2,379,182		2,345,654			1,852,285		6,959,620
Basic earnings per share	$	0.05		$	0.32	$	0.32		$	0.25	$	0.95
Diluted earnings per share	$	0.05		$	0.32	$	0.32		$	0.25	$	0.94

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. Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Summary Of Significant Accounting Policies Policies

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

Revenue Recognition

Net Premiums Earned

Ceding Commission Revenue

Premium Finance Placement Fees

Loss and Loss Adjustment Expenses ("LAE") Reserves

Reinsurance

Cash and Cash Equivalents

Investments

Premiums Receivable

Deferred Policy Acquisition Costs

Intangible Assets

Property and Equipment

Income Taxes

Assessments

Concentration and Credit Risk

As of December 31, 2016 and 2015, the Company had deposits of cash equivalents as follows:

	December 31,		December 31,
	2016		2015

Collateralized bank repurchase agreement (1)	$	6,268,647	$	3,992,509
Money market fund		3,121,155		7,505,531
Total	$	9,389,802	$	11,498,040

Direct premiums earned from lines of business in excess of 10% of the total subject the Company to concentration risk for the years ended December 31, 2016 and 2015 as follows:

	Years ended December 31,
	2016			2015
Personal Lines		76.8	%		75.4	%
Commercial Lines		12.8	%		13.6	%
Livery physical damage		10.1	%	na
Total premiums earned subject to concentration		99.7	%		89.0	%
Premiums earned not subject to concentration		0.3	%		11.0	%
Total premiums earned		100.0	%		100.0	%

Use of Estimates

Earnings per share

Advertising Costs

Stock-based Compensation

Comprehensive Income

Recent Accounting Pronouncements

2. Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Summary Of Significant Accounting Policies Tables

Summary of deposits of cash equivalents

	December 31,		December 31,
	2016		2015

Collateralized bank repurchase agreement (1)	$	6,268,647	$	3,992,509
Money market fund		3,121,155		7,505,531
Total	$	9,389,802	$	11,498,040

Schedule of Concentration Risk

	Years ended December 31,
	2016			2015
Personal Lines		76.8	%		75.4	%
Commercial Lines		12.8	%		13.6	%
Livery physical damage		10.1	%	na
Total premiums earned subject to concentration		99.7	%		89.0	%
Premiums earned not subject to concentration		0.3	%		11.0	%
Total premiums earned		100.0	%		100.0	%

3. Investments (Tables)

12 Months Ended

Dec. 31, 2016

Investments Tables

Schedule of Available for Sale Securities

	December 31, 2016
													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	$	8,053,449	$	199,028	$	(46,589	)	$	-		$	8,205,888	$	152,439

Corporate and other bonds
Industrial and miscellaneous		53,728,395		600,519		(638,113	)		(5,612	)		53,685,189		(43,206	)

Residential mortgage backed
securities		18,814,784		70,682		(309,273	)		(38,442	)		18,537,751		(277,033	)
Total fixed-maturity securities		80,596,628		870,229		(993,975	)		(44,054	)		80,428,828		(167,800	)

Equity Securities:
Preferred stocks		5,986,588		10,317		(241,333	)		(70,571	)		5,685,001		(301,587	)
Common stocks		3,722,797		691,324		(13,968	)		(97,468	)		4,302,685		579,888
Total equity securities		9,709,385		701,641		(255,301	)		(168,039	)		9,987,686		278,301

Total	$	90,306,013	$	1,571,870	$	(1,249,276	)	$	(212,093	)	$	90,416,514	$	110,501

	December 31, 2015
													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	$	12,139,793	$	431,194	$	(15,889	)	$	-		$	12,555,098	$	415,305

Corporate and other bonds
Industrial and miscellaneous		45,078,044		490,444		(512,427	)		(99,593	)		44,956,468		(121,576	)

Residential mortgage backed
securities		5,003,292		48,375		(61,169	)		-			4,990,498		(12,794	)
Total fixed-maturity securities		62,221,129		970,013		(589,485	)		(99,593	)		62,502,064		280,935

Equity Securities:
Preferred stocks		2,874,173		70,799		-			(29,322	)		2,915,650		41,477
Common stocks		5,877,364		514,977		(103,721	)		-			6,288,620		411,256
Total equity securities		8,751,537		585,776		(103,721	)		(29,322	)		9,204,270		452,733

Total	$	70,972,666	$	1,555,789	$	(693,206	)	$	(128,915	)	$	71,706,334	$	733,668

Schedule of Available for Sale Securities by contractual maturity

	December 31, 2016				December 31, 2015
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	1,752,501	$	1,765,795	$	827,246	$	837,918
One to five years		29,541,568		29,913,308		17,146,349		17,393,571
Five to ten years		30,487,775		30,211,974		37,877,726		37,884,450
More than 10 years		-		-		1,366,516		1,395,627
Residential mortgage backed securities		18,814,784		18,537,751		5,003,292		4,990,498
Total	$	80,596,628	$	80,428,828	$	62,221,129	$	62,502,064

Schedule of Held to Maturity Securities

	December 31, 2016
													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	$	606,427	$	147,612	$	-		$	-		$	754,039	$	147,612

Political subdivisions of States,
Territories and Possessions		1,349,916		37,321		-			-			1,387,237		37,321

Corporate and other bonds
Industrial and miscellaneous		3,138,559		72,784		(7,619	)		(46,881	)		3,156,843		18,284

Total	$	5,094,902	$	257,717	$	(7,619	)	$	(46,881	)	$	5,298,119	$	203,217

	December 31, 2015
													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	$	606,389	$	147,650	$	-		$	-		$	754,039	$	147,650

Political subdivisions of States,
Territories and Possessions		1,417,679		70,284		-			(54,189	)		1,433,774		16,095

Corporate and other bonds
Industrial and miscellaneous		3,114,804		82,265		(17,980	)		(125,807	)		3,053,282		(61,522	)

Total	$	5,138,872	$	300,199	$	(17,980	)	$	(179,996	)	$	5,241,095	$	102,223

	December 31, 2016				December 31, 2015
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	-	$	-	$	-	$	-
One to five years		650,000		642,455		500,000		496,245
Five to ten years		3,838,475		3,901,625		4,032,483		3,990,811
More than 10 years		606,427		754,039		606,389		754,039
Total	$	5,094,902	$	5,298,119	$	5,138,872	$	5,241,095

Schedule of Investment Income

	Year ended
	December 31,
	2016		2015

Income:
Fixed-maturity securities	$	2,668,148	$	2,308,993
Equity securities		557,919		503,363
Cash and cash equivalents		19,047		7,314
Other		794		1
Total		3,245,908		2,819,671
Expenses:
Investment expenses		130,325		255,781
Net investment income	$	3,115,583	$	2,563,890

Schedule of net realized gains and losses on investments

	Year ended
	December 31,
	2016			2015

Fixed-maturity securities:
Gross realized gains	$	354,071		$	49,412
Gross realized losses		(302,087	)		(152,328	)
		51,984			(102,916	)

Equity securities:
Gross realized gains		637,249			153,711
Gross realized losses		(89,874	)		(101,341	)
		547,375			52,370

Other-than-temporary impairment losses:
Fixed-maturity securities		(69,911	)		-
		(69,911	)		-

Net realized gains (losses)	$	529,448		$	(50,546	)

Schedule of Securities with Unrealized Losses

	December 31, 2016
	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 and
Possessions	$	1,067,574	$	(46,589	)		3	$	-	$	-			-	$	1,067,574	$	(46,589	)

Corporate and other
bonds industrial and
miscellaneous		19,859,293		(638,113	)		34		239,970		(5,612	)		1		20,099,263		(643,725	)

Residential mortgage
backed securities		15,918,090		(309,273	)		30		675,316		(38,442	)		6		16,593,406		(347,715	)

Total fixed-maturity
securities	$	36,844,957	$	(993,975	)		67	$	915,286	$	(44,054	)		7	$	37,760,243	$	(1,038,029	)

Equity Securities:
Preferred stocks	$	3,759,850	$	(241,333	)		8	$	660,750	$	(70,571	)		1	$	4,420,600	$	(311,904	)
Common stocks		288,075		(13,968	)		1		424,550		(97,468	)		1		712,625		(111,436	)

Total equity securities	$	4,047,925	$	(255,301	)		9	$	1,085,300	$	(168,039	)		2	$	5,133,225	$	(423,340	)

Total	$	40,892,882	$	(1,249,276	)		76	$	2,000,586	$	(212,093	)		9	$	42,893,468	$	(1,461,369	)

	December 31, 2015
	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 and
Possessions	$	1,432,005	$	(15,889	)		4	$	-	$	-			-	$	1,432,005	$	(15,889	)

Corporate and other
bonds industrial and
miscellaneous		18,424,609		(512,427	)		32		636,093		(99,593	)		2		19,060,702		(612,020	)

Residential mortgage
backed securities		2,413,980		(61,169	)		12		-		-			-		2,413,980		(61,169	)

Total fixed-maturity
securities	$	22,270,594	$	(589,485	)		48	$	636,093	$	(99,593	)		2	$	22,906,687	$	(689,078	)

Equity Securities:
Preferred stocks	$	-	$	-			-	$	702,000	$	(29,322	)		1	$	702,000	$	(29,322	)
Common stocks		2,538,900		(103,721	)		6		-		-			-		2,538,900		(103,721	)

Total equity securities	$	2,538,900	$	(103,721	)		6	$	702,000	$	(29,322	)		1	$	3,240,900	$	(133,043	)

Total	$	24,809,494	$	(693,206	)		54	$	1,338,093	$	(128,915	)		3	$	26,147,587	$	(822,121	)

4. Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Measurements Tables

Schedule of Fair Value Measurements

	December 31, 2016
($ in thousands)	Level 1		Level 2		Level 3		Total

Fixed-maturity securities available-for-sale
Political subdivisions of
States, Territories and
Possessions	$	-	$	8,205,888	$	-	$	8,205,888

Corporate and other
bonds industrial and
miscellaneous		48,356,317		5,328,872		-		53,685,189

Residential mortgage backed securities		-		18,537,751		-		18,537,751
Total fixed maturities		48,356,317		32,072,511		-		80,428,828
Equity securities		9,987,686		-		-		9,987,686
Total investments	$	58,344,003	$	32,072,511	$	-	$	90,416,514

	December 31, 2015
($ in thousands)	Level 1		Level 2		Level 3		Total

Fixed-maturity securities available-for-sale
Political subdivisions of
States, Territories and
Possessions	$	-	$	12,555,098	$	-	$	12,555,098

Corporate and other
bonds industrial and
miscellaneous		37,964,006		6,992,462		-		44,956,468

Residential mortgage backed securities		-		4,990,498		-		4,990,498
Total fixed maturities		37,964,006		24,538,058		-		62,502,064
Equity securities		9,204,270		-		-		9,204,270
Total investments	$	47,168,276	$	24,538,058	$	-	$	71,706,334

5. Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Of Financial Instruments Tables

Schedule of Fair Value of Financial Instruments

	December 31, 2016				December 31, 2015
	Carrying Value		Fair Value		Carrying Value		Fair Value

Fixed-maturity securities held-to-maturity	$	5,094,902	$	5,298,119	$	5,138,872	$	5,241,095
Cash and cash equivalents	$	12,044,520	$	12,044,520	$	13,551,372	$	13,551,372
Premiums receivable	$	11,649,398	$	11,649,398	$	10,621,655	$	10,621,655
Reinsurance receivables	$	32,197,765	$	32,197,765	$	31,270,235	$	31,270,235
Real estate, net of accumulated depreciation	$	1,659,405	$	1,925,000	$	1,727,068	$	1,925,000
Reinsurance balances payable	$	2,146,017	$	2,146,017	$	1,688,922	$	1,688,922

6. Intangibles (Tables)

12 Months Ended

Dec. 31, 2016

Intangibles Tables

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

			December 31, 2016						December 31, 2015
	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		2,550,000		850,000		3,400,000		2,210,000		1,190,000
Other identifiable
intangibles		7		950,000		950,000		-		950,000		882,184		67,816
Total			$	4,850,000	$	3,500,000	$	1,350,000	$	4,850,000	$	3,092,184	$	1,757,816

Schedule of estimated aggregate amortization expense

2017	$	340,000
2018		340,000
2019		170,000
	$	850,000

7. Reinsurance (Tables)

12 Months Ended

Dec. 31, 2016

Reinsurance Tables

Line of Busines

	Treaty Year
	July 1, 2016			July 1, 2015			July 1, 2014
	to			to			to
Line of Busines	June 30, 2017			June 30, 2016			June 30, 2015

Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded		40	%		40	%		55	%
Risk retained	$	500,000		$	450,000		$	360,000
Losses per occurrence subject to quota share reinsurance coverage	$	833,333		$	750,000		$	800,000
Excess of loss coverage above quota share coverage	$	3,666,667		$	3,750,000		$	3,200,000

	$	833,333		$	750,000		$	800,000
Total reinsurance coverage per occurrence	$	4,000,000		$	4,050,000		$	3,640,000
Losses per occurrence subject to reinsurance coverage	$	4,500,000		$	4,500,000		$	4,000,000
Expiration date	June 30, 2017			June 30, 2016			June 30, 2015

Personal Umbrella
Quota share treaty:
Percent ceded - first $1,000,000 of coverage		90	%		90	%		90	%
Percent ceded - excess of $1,000,000 of coverage		100	%		100	%		100	%
Risk retained	$	100,000		$	100,000		$	100,000
Total reinsurance coverage per occurrence	$	4,900,000		$	2,900,000		$	2,900,000
Losses per occurrence subject to quota share reinsurance coverage	$	5,000,000		$	3,000,000		$	3,000,000
Expiration date	June 30, 2017			June 30, 2016			June 30, 2015

Commercial Lines:
General liability commercial policies, except for commercial auto
Quota share treaty:
Percent ceded (terminated effective July 1, 2014)	None			None			None
Risk retained	$	500,000		$	425,000		$	400,000
Losses per occurrence subject to quota share reinsurance coverage	None			None			None
Excess of loss coverage above quota share coverage	$	4,000,000		$	4,075,000		$	3,600,000

	$	500,000		$	425,000		$	400,000
Total reinsurance coverage per occurrence	$	4,000,000		$	4,075,000		$	3,600,000
Losses per occurrence subject to reinsurance coverage	$	4,500,000		$	4,500,000		$	4,000,000

Commercial Umbrella
Quota share treaty:
Percent ceded - first $1,000,000 of coverage		90	%
Percent ceded - excess of $1,000,000 of coverage		100	%
Risk retained	$	100,000
Total reinsurance coverage per occurrence	$	4,900,000
Losses per occurrence subject to quota share reinsurance coverage	$	5,000,000
Expiration date	June 30, 2017

Commercial Auto:
Risk retained				$	300,000		$	300,000
Excess of loss coverage in excess of risk retained				$	1,700,000		$	1,700,000
				in excess of			in excess of
				$	300,000		$	300,000
Catastrophe Reinsurance:
Initial loss subject to personal lines quota share treaty	$	5,000,000		$	4,000,000		$	4,000,000
Risk retained per catastrophe occurrence (1)	$	3,000,000		$	2,400,000		$	1,800,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)	$	247,000,000		$	176,000,000		$	137,000,000
Severe winter weather aggregate (3)	No			Yes			Yes
Reinstatement premium protection (4)	Yes			Yes			No

Single maximum risks under treaties per occurrence

	July 1, 2016 - June 30, 2017
Treaty	Extent of Loss	Risk Retained
Personal Lines	Initial $833,333	$500,000
	$833,333 - $4,500,000	None(1)
	Over $4,500,000	100%

Personal Umbrella	Initial $1,000,000	$100,000
	$1,000,000 - $5,000,000	None(1)
	Over $5,000,000	100%

Commercial Lines	Initial $500,000	$500,000
	$500,000 - $4,500,000	None(1)
	Over $4,500,000	100%

Commercial Umbrella	Initial $1,000,000	$100,000
	$1,000,000 - $5,000,000	None(1)
	Over $5,000,000	100%

Catastrophe (2)	Initial $5,000,000	$3,000,000
	$5,000,000 - $252,000,000	None
	Over $252,000,000	100%

	July 1, 2015 - June 30, 2016		July 1, 2014 - June 30, 2015
Treaty	Extent of Loss	Risk Retained	Extent of Loss	Risk Retained
Personal Lines	Initial $750,000	$450,000	Initial $800,000	$360,000
	$750,000 - $4,500,000	None(1)	$800,000 - $4,000,000	None(1)
	Over $4,500,000	100%	Over $4,000,000	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 - $3,000,000	None(1)
	Over $3,000,000	100%	Over $3,000,000	100%

Commercial Lines	Initial $425,000	$425,000	Initial $400,000	$400,000
	$425,000 - $4,500,000	None(1)	$400,000 - $4,000,000	None(1)
	Over $4,500,000	100%	Over $4,000,000	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	$2,400,000	Initial $4,000,000	$1,800,000
	$4,000,000 - $180,000,000	None	$4,000,000 - $141,000,000	None
	Over $180,000,000	100%	Over $141,000,000	100%

Schedule of approximate reinsurance recoverables

	Unpaid		Paid
($ in thousands)	Losses		Losses		Total		Security
December 31, 2016
Maiden Reinsurace Company	$	7,640	$	985	$	8,625	$	13,113	(1	)
Swiss Reinsurance America Corporation		4,310		671		4,981		-
SCOR Reinsurance Company		1,440		152		1,592		-
Allied World Assurance Company		392		300		692		-
Others		1,995		211		2,206		164	(2	)
Total	$	15,777	$	2,319	$	18,096	$	13,277

December 31, 2015
Maiden Reinsurace Company	$	7,979	$	631	$	8,610	$	12,201	(1	)
Swiss Reinsurance America Corporation		3,662		377		4,039		-
SCOR Reinsurance Company		1,982		114		2,096		-
Hannover Rueck		853		524		1,377		-
Allied World Assurance Company		940		285		1,225		-
Others		1,290		117		1,407		293	(3	)
Total	$	16,706	$	2,048	$	18,754	$	12,494

(1) Secured pursuant to collateralized trust agreements.
(2) Represents $161,000 secured pursuant to collateralized trust agreement and $3,000 guaranteed by an irrevocable letter of credit.
(3) Represents $248,000 secured pursuant to collateralized trust agreement and $45,000 guaranteed by an irrevocable letter of credit.

Schedule of Ceding commissions earned

	Years ended
	December 31,
	2016			2015

Provisional ceding commissions earned	$	12,769,404		$	11,692,458
Contingent ceding commissions earned		(1,501,163	)		(219,341	)
	$	11,268,241		$	11,473,117

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

12 Months Ended

Dec. 31, 2016

Deferred Policy Acquisition Costs And Deferred Ceding Commission Revenue Tables

Schedule of acquisition costs incurred

	Year ended
	December 31,
	2016			2015

Net deferred policy acquisition costs net of ceding
commission revenue, beginning of year	$	4,400,238		$	3,029,441

Cost incurred and deferred:
Commissions and brokerage		19,566,982			16,963,843
Other underwriting and policy acquisition costs		5,470,285			4,904,350
Ceding commission revenue		(13,186,177	)		(12,170,986	)
Net deferred policy acquisition costs		11,851,090			9,697,207
Amortization		(10,863,388	)		(8,326,410	)
		987,702			1,370,797

Net deferred policy acquisition costs net of ceding
commission revenue, end of year	$	5,387,940		$	4,400,238

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

	December 31,
	2016			2015

Deferred policy acquisition costs	$	12,239,781		$	10,835,306
Deferred ceding commission revenue		(6,851,841	)		(6,435,068	)
Balance at end of period	$	5,387,940		$	4,400,238

9. Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Property And Equipment Tables

Schedule of components of property and equipment

			Accumulated
	Cost		Depreciation			Net

December 31, 2016
Building	$	1,887,347	$	(381,039	)	$	1,506,308
Land		153,097		-			153,097
Furniture office equipment		620,440		(388,853	)		231,587
Computer equipment and software		2,602,330		(1,481,949	)		1,120,381
Automobile		81,394		(81,394	)		-
Total	$	5,344,608	$	(2,333,235	)	$	3,011,373

December 31, 2015
Building	$	1,887,347	$	(313,376	)	$	1,573,971
Land		153,097		-			153,097
Furniture office equipment		518,495		(257,485	)		261,010
Computer equipment and software		2,128,063		(963,875	)		1,164,188
Automobile		81,394		(81,394	)		-
Total	$	4,768,396	$	(1,616,130	)	$	3,152,266

10. Property and Casualty Insurance Activity (Tables)

12 Months Ended

Dec. 31, 2016

Property And Casualty Insurance Activity Tables

Schedule of Earned Premiums

	Direct			Assumed		Ceded			Net

Year ended December 31, 2016
Premiums written	$	103,191,995		$	28,522	$	(37,294,330	)	$	65,926,187
Change in unearned premiums		(6,110,225	)		6,091		1,585,853			(4,518,281	)
Premiums earned	$	97,081,770		$	34,613	$	(35,708,477	)	$	61,407,906

Year ended December 31, 2015
Premiums written	$	91,003,968		$	40,971	$	(30,660,161	)	$	60,384,778
Change in unearned premiums		(8,436,456	)		4,255		(3,340,495	)		(11,772,696	)
Premiums earned	$	82,567,512		$	45,226	$	(34,000,656	)	$	48,612,082

Schedule of Loss and Loss Adjustment Expenses

	Gross		Reinsurance
	Liability		Receivables
December 31, 2016
Case-basis reserves	$	25,000,733	$	10,804,341
Loss adjustment expenses		7,752,617		1,893,094
IBNR reserves		8,983,369		3,079,445
Recoverable on unpaid losses				15,776,880
Recoverable on paid losses		-		2,319,140
Total loss and loss adjustment expenses	$	41,736,719		18,096,020
Unearned premiums				14,101,745
Total reinsurance receivables			$	32,197,765

December 31, 2015
Case-basis reserves	$	24,730,463	$	11,264,279
Loss adjustment expenses		5,429,221		1,720,522
IBNR reserves		9,716,816		3,721,563
Recoverable on unpaid losses				16,706,364
Recoverable on paid losses		-		2,047,979
Total loss and loss adjustment expenses	$	39,876,500		18,754,343
Unearned premiums				12,515,892
Total reinsurance receivables			$	31,270,235

Schedule of Ceding Commission Revenue

	Years ended
	December 31,
	2016			2015

Balance at beginning of period	$	39,876,500		$	39,912,683
Less reinsurance recoverables		(16,706,364	)		(18,249,526	)
Net balance, beginning of period		23,170,136			21,663,157

Incurred related to:
Current year		27,853,010			23,642,998
Prior years		(63,349	)		(462,998	)
Total incurred		27,789,661			23,180,000

Paid related to:
Current year		16,496,648			13,172,870
Prior years		8,503,310			8,500,151
Total paid		24,999,958			21,673,021

Net balance at end of period		25,959,839			23,170,136
Add reinsurance recoverables		15,776,880			16,706,364
Balance at end of period	$	41,736,719		$	39,876,500

Incurred Claims and Allocated Claim Adjustment Expenses

All Lines of Business
*(in thousands, except reported claims data)*

		Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				As of December 31, 2016
	For the Years Ended December 31,
Accident Year		2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR	Cumulative Number of Reported Claims by Accident Year
	(Unaudited 2007 - 2015)

2007		$	3,572	$	3,414	$	3,655	$	3,710	$	3,744	$	3,770	$	3,877	$	3,913	$	3,916	$	3,941	6	1,067
2008					4,505		4,329		4,223		4,189		4,068		4,055		4,056		4,040		4,038	3	1,133
2009							4,403		4,254		4,287		4,384		4,511		4,609		4,616		4,667	8	1,136
2010									5,598		5,707		6,429		6,623		6,912		6,853		6,838	20	1,616
2011											7,603		7,678		8,618		9,440		9,198		9,066	69	1,913
2012													9,539		9,344		10,278		10,382		10,582	168	4,701	(1)
2013															10,728		9,745		9,424		9,621	507	1,551
2014																	14,193		14,260		14,218	1,009	2,117
2015																			22,340		21,994	2,452	2,508
2016																					26,062	5,593	2,688
																		Total		$	111,027

(1)	Reported claims for accident year 2012 includes 3,406 claims from Superstorm Sandy.

Cumulative Paid Claims and Allocated Claim Adjustment Expenses

All Lines of Business
*(in thousands)*

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
	(Unaudited 2007 - 2015)

2007	$	1,790	$	2,233	$	2,924	$	3,428	$	3,603	$	3,649	$	3,670	$	3,797	$	3,873	$	3,892
2008				2,406		3,346		3,730		3,969		4,003		4,029		4,028		4,031		4,031
2009						2,298		3,068		3,607		3,920		4,134		4,362		4,424		4,468
2010								2,566		3,947		4,972		5,602		6,323		6,576		6,720
2011										3,740		5,117		6,228		7,170		8,139		8,540
2012												3,950		5,770		7,127		8,196		9,187
2013														3,405		5,303		6,633		7,591
2014																5,710		9,429		10,738
2015																		12,295		16,181
2016																				15,364
																	Total		$	86,712

Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented																			$	24,315
All outstanding liabilities before 2007, net of reinsurance																				602
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	24,917

Reconciliation of the net incurred and paid claims

	As of
*(in thousands)*	December 31, 2016
Liabilities for claims and claim adjustment expenses, net of reinsurance	$	24,917
Total reinsurance recoverable on unpaid claims		15,777
Unallocated claims adjustment expenses		1,043
Total gross liability for loss and LAE reserves	$	41,737

Supplementary unaudited information about average historical claims duration

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years		1		2		3		4		5		6		7		8		9		10

All Lines of Business		46.1	%	18.6	%	12.7	%	9.3	%	6.7	%	3.0	%	1.0	%	1.4	%	1.0	%	0.5	%

11. Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2016

Stockholders Equity Tables

Weighted average assumptions

	Years ended
	December 31,
	2016	2015
Dividend Yield	2.74% - 3.18%	2.62%
Volatility	31.61% - 31.81%	34.54%
Risk-Free Interest Rate	1.01% - 1.11%	1.03%
Expected Life	3.25 years	3.0 years

Schedule of Stock Options Activity

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

Outstanding at January 1, 2016		339,750		$	6.34		3.36	$	904,775

Granted		40,000		$	8.33			$	216,950
Exercised		(12,000	)	$	4.96			$	80,985
Forfeited		(5,000	)	$	5.09			$	17,600

Outstanding at December 31, 2016		362,750		$	6.62		2.61	$	2,586,748

Vested and Exercisable at December 31, 2016		270,250		$	6.40		2.39	$	1,985,285

14. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes Tables

Schedule of provision for income taxes from continuing operations

Years ended December 31,	2016			2015

Current federal income tax expense	$	4,824,655		$	3,557,385
Current state income tax expense		(12,590	)		19,000
Deferred federal and state income tax expense (benefit)		(293,364	)		(226,932	)
Provision for income taxes	$	4,518,701		$	3,349,453

Schedule of a reconciliation of the federal statutory rate

Years ended December 31,	2016					2015
Computed expected tax expense	$	4,696,463		35.0	%	$	3,505,085		34.0	%
State taxes, net of Federal benefit		(71,428	)	(0.5	)		(74,827	)	(0.7	)
State valuation allowance		85,714		0.6			171,532		1.7
Benefit of lower tax brackets		(100,000	)	(0.7	)		-		-
Permanent differences
Dividends received deduction		(136,690	)	(1.0	)		(121,960	)	(1.2	)
Non-taxable investment income		(110,784	)	(0.8	)		(177,487	)	(1.7	)
Other permanent differences		48,139		0.3			55,623		0.5
Prior year tax matters		123,976		0.9			(49,139	)	(0.5	)
Other		(16,689	)	(0.1	)		40,626		0.4
Total tax	$	4,518,701		33.7	%	$	3,349,453		32.5	%

Schedule of Deferrred Tax Assets and Liabilities

	December 31,			December 31,
	2016			2015

Deferred tax asset:
Net operating loss carryovers (1)	$	131,626		$	150,492
Claims reserve discount		417,349			405,709
Unearned premium		2,877,365			2,555,012
Deferred ceding commission revenue		2,329,626			2,187,923
Other		188,675			151,250
Total deferred tax assets		5,944,641			5,450,386

Deferred tax liability:
Investment in KICO (2)		1,169,000			1,169,000
Deferred acquisition costs		4,161,526			3,684,004
Intangibles		459,000			597,657
Depreciation and amortization		265,671			415,938
Net unrealized appreciation of securities - available for sale		56,393			255,977
Total deferred tax liabilities		6,111,590			6,122,576

Net deferred income tax liability	$	(166,949	)	$	(672,190	)

Schedule of net operating loss carryovers

Type of NOL	2016			2015			Expiration
State only (A)	$	655,719		$	540,865		December 31, 2036
Valuation allowance		(534,293	)		(403,973	)
State only, net of valuation allowance		121,426			136,892
Amount subject to Annual Limitation, federal only (B)		10,200			13,600		December 31, 2019
Total deferred tax asset from net operating loss carryovers	$	131,626		$	150,492

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

Change in net deferred income tax liabilities	$	(505,241	)
Deferred tax expense (benefit) allocated to other comprehensive income		(211,877	)
Deferred income tax provision (benefit)	$	(293,364	)

16. Commitments and Contingencies (Tables) (USD $)

12 Months Ended

Dec. 31, 2016

Commitments And Contingencies Tables Usd

Schedule of future minimum rental commitments

For the Year
Ending
December 31,	Total
2017	$	146,008
2018		164,117
2019		169,861
2020		175,806
2021		181,959
Thereafter		432,392
Total	$	1,270,143

17. Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2016		2015

Weighted average number of shares outstanding		7,736,594		7,331,114
Effect of dilutive securities, common share equivalents		70,669		46,766

Weighted average number of shares outstanding,
used for computing diluted earnings per share		7,807,263		7,377,880

18. Premium Finance Placement Fees (Tables)

12 Months Ended

Dec. 31, 2016

Premium Finance Placement Fees Tables

Schedule of premium finance placement fees

	For the Year Ended
	December 31,
	2016		2015

Placement fee revenue	$	-	$	54,343
Termination fee		-		350,000
Direct expenses		-		(12,989	)
Net income before taxes from placement fees	$	-	$	391,354

20. Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Data Tables

Schedule of Quarterly Financial Data

	2016
	March 31,		June 30,		September 30,		December 31,			Total

Net premiums earned	$	14,531,675	$	15,010,875	$	15,646,181	$	16,219,175		$	61,407,906
Ceding commission revenue		2,770,337		2,569,025		2,934,928		2,993,951			11,268,241
Net investment income		813,057		764,070		709,072		829,384			3,115,583
Net realized gain (loss) on sale of investments		80,436		283,432		241,035		(75,455	)		529,448
Total revenues		18,444,852		18,911,910		19,828,397		20,251,505			77,436,664
Loss and loss adjustment expenses		9,483,855		5,786,836		5,134,854		7,384,116			27,789,661
Commission expense and
other underwriting expenses		7,616,507		8,122,342		8,642,964		8,812,023			33,193,836
Net income		541,032		2,842,261		3,460,626		2,055,847			8,899,766
Basic earnings per share	$	0.07	$	0.36	$	0.44	$	0.26		$	1.15
Diluted earnings per share	$	0.07	$	0.36	$	0.43	$	0.26		$	1.14

	2015
	March 31,			June 30,		September 30,			December 31,		Total

Net premiums earned	$	10,385,799		$	10,865,715	$	13,129,604		$	14,230,964	$	48,612,082
Ceding commission revenue		3,089,404			3,655,522		2,643,531			2,084,660		11,473,117
Net investment income		574,656			625,972		649,441			713,821		2,563,890
Net realized gain (loss) on sale of investments		(67,494	)		2,263		(40,487	)		55,172		(50,546	)
Total revenues		14,613,556			15,542,512		16,657,369			17,362,297		64,175,734
Loss and loss adjustment expenses		7,063,217			4,770,813		5,050,194			6,295,776		23,180,000
Commission expense and
other underwriting expenses		6,411,482			6,561,827		7,410,407			7,766,815		28,150,531
Net income		382,499			2,379,182		2,345,654			1,852,285		6,959,620
Basic earnings per share	$	0.05		$	0.32	$	0.32		$	0.25	$	0.95
Diluted earnings per share	$	0.05		$	0.32	$	0.32		$	0.25	$	0.94

2. Accounting Policies and Basis of Presentation (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies And Basis Of Presentation Details
Collateralized bank repurchase agreement (1)	$ 6,268,647	$ 3,992,509
Money market fund	3,121,155	7,505,531
Total	$ 9,389,802	$ 11,498,040

2. Accounting Policies and Basis of Presentation (Details 1)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Total premiums earned subject to concentration	99.70%	89.00%
Premiums earned not subject to concentration	0.03%	11.00%
Total premiums earned	100.00%	100.00%
Personal Lines [Member]
Total premiums earned subject to concentration	76.80%	75.40%
Commercial Lines [Member]
Total premiums earned subject to concentration	12.80%	13.60%
Commercial Auto [Member]
Total premiums earned subject to concentration	10.10%

2. Accounting Policies and Basis of Presentation (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies And Basis Of Presentation Details Narrative
Allowance for uncollectible reinsurance	$ 0	$ 0
Due and accrued investment income	694,000	694,000
Allowance for doubtful accounts	212,000	231,000
Uncollectible premiums receivable balances written off	98,000	72,000
Cash deposits in excess of the FDIC secured limit	13,677,000	15,021,000
Advertising costs	$ 169,000	$ 75,000

3. Investments (Details) - USD ($)	12 Months Ended
3. Investments (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Cost or Amortized Cost	$ 90,306,013	$ 70,972,666
Gross Unrealized Gains	1,571,870	1,555,789
Gross Unrealized Losses-Less than 12 Months	(1,249,276)	(693,206)
Gross Unrealized Loss-More than 12 Months	(212,093)	(128,915)
Fair Value	90,416,514	71,706,334
Net Unrealized Gains/(Losses)	110,501	733,668
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions
Cost or Amortized Cost	8,053,449	12,139,793
Gross Unrealized Gains	199,028	431,194
Gross Unrealized Losses-Less than 12 Months	(46,589)	(15,889)
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	8,205,888	12,555,098
Net Unrealized Gains/(Losses)	152,439	415,305
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous
Cost or Amortized Cost	53,728,395	45,078,044
Gross Unrealized Gains	600,519	490,444
Gross Unrealized Losses-Less than 12 Months	(638,113)	(512,427)
Gross Unrealized Loss-More than 12 Months	(5,612)	(99,593)
Fair Value	53,685,189	44,956,468
Net Unrealized Gains/(Losses)	(43,206)	(121,576)
Fixed Maturity Securities Residential mortgage backed securities
Cost or Amortized Cost	18,814,784	5,003,292
Gross Unrealized Gains	70,682	48,375
Gross Unrealized Losses-Less than 12 Months	(309,273)	(61,169)
Gross Unrealized Loss-More than 12 Months	(38,442)	0
Fair Value	18,537,751	4,990,498
Net Unrealized Gains/(Losses)	(277,033)	(12,794)
Fixed Maturity Securities Total Fixed Maturity Securities
Cost or Amortized Cost	80,596,628	62,221,129
Gross Unrealized Gains	870,229	970,013
Gross Unrealized Losses-Less than 12 Months	(993,975)	(589,485)
Gross Unrealized Loss-More than 12 Months	(44,054)	(99,593)
Fair Value	80,428,828	62,502,064
Net Unrealized Gains/(Losses)	(167,800)	280,935
Equity Securities Preferred Stocks
Cost or Amortized Cost	5,986,588	2,874,173
Gross Unrealized Gains	10,317	70,799
Gross Unrealized Losses-Less than 12 Months	(241,333)	0
Gross Unrealized Loss-More than 12 Months	(70,571)	(29,322)
Fair Value	5,685,001	2,915,650
Net Unrealized Gains/(Losses)	(301,587)	41,477
Equity Securities Common Stocks
Cost or Amortized Cost	3,722,797	5,877,364
Gross Unrealized Gains	691,324	514,977
Gross Unrealized Losses-Less than 12 Months	(13,968)	(103,721)
Gross Unrealized Loss-More than 12 Months	(97,468)	0
Fair Value	4,302,685	6,288,620
Net Unrealized Gains/(Losses)	579,888	411,256
Equity Securities Total Equity Securities
Cost or Amortized Cost	9,709,385	8,751,537
Gross Unrealized Gains	701,641	585,776
Gross Unrealized Losses-Less than 12 Months	(255,301)	(103,721)
Gross Unrealized Loss-More than 12 Months	(168,039)	(29,322)
Fair Value	9,987,686	9,204,270
Net Unrealized Gains/(Losses)	$ 278,301	$ 452,733

3. Investments (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Amortized Cost	$ 80,596,628	$ 62,221,129
Fair Value	80,428,828	62,502,064
Less Than One Year
Amortized Cost	1,752,501	827,246
Fair Value	1,765,795	837,918
One To Five Years
Amortized Cost	29,541,568	17,146,349
Fair Value	29,913,308	17,393,571
Five To Ten Years
Amortized Cost	30,487,775	37,877,726
Fair Value	30,211,974	37,884,450
More Than 10 Years
Amortized Cost	0	1,366,516
Fair Value	0	1,395,627
Residential mortgage backed securities
Amortized Cost	18,814,784	5,003,292
Fair Value	$ 18,537,751	$ 4,990,498

3. Investments (Details 2) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Cost or Amortized Cost	$ 5,094,902	$ 5,138,872
Gross Unrealized Gains	257,717	300,199
Gross Unrealized Losses-Less than 12 Months	(7,619)	(17,980)
Gross Unrealized Loss-More than 12 Months	(46,881)	(179,996)
Fair Value	5,298,119	5,241,095
Net Unrealized Gains/(Losses)	203,217	102,223
US Treasury Securities
Cost or Amortized Cost	606,427	606,389
Gross Unrealized Gains	147,612	147,650
Gross Unrealized Losses-Less than 12 Months	0	0
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	754,039	754,039
Net Unrealized Gains/(Losses)	147,612	147,650
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions
Cost or Amortized Cost	1,349,916	1,417,679
Gross Unrealized Gains	37,321	70,284
Gross Unrealized Losses-Less than 12 Months	0	0
Gross Unrealized Loss-More than 12 Months	0	(54,189)
Fair Value	1,387,237	1,433,774
Net Unrealized Gains/(Losses)	37,321	16,095
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous
Cost or Amortized Cost	3,138,559	3,114,804
Gross Unrealized Gains	72,784	82,265
Gross Unrealized Losses-Less than 12 Months	(7,619)	(17,980)
Gross Unrealized Loss-More than 12 Months	(46,881)	(125,807)
Fair Value	3,156,843	3,053,282
Net Unrealized Gains/(Losses)	$ 18,284	$ (61,522)

3. Investments (Details 3) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Amortized Cost	$ 5,094,902	$ 5,138,872
Fair Value	5,298,119	5,241,095
Less Than One Year
Amortized Cost	0	0
Fair Value	0	0
One To Five Years
Amortized Cost	650,000	500,000
Fair Value	642,455	496,245
Five To Ten Years
Amortized Cost	3,838,475	4,032,483
Fair Value	3,901,625	3,990,811
More Than 10 Years
Amortized Cost	606,427	606,389
Fair Value	$ 754,039	$ 754,039

3. Investments (Details 4) - USD ($)	12 Months Ended
3. Investments (Details 4) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Income:
Fixed-maturity securities	$ 2,668,148	$ 2,308,993
Equity securities	557,919	503,363
Cash and cash equivalents	19,047	7,314
Other	794	1
Total	3,245,908	2,819,671
Expenses:
Investment expenses	130,325	255,781
Net investment income	$ 3,115,583	$ 2,563,890

3. Investments (Details 5) - USD ($)	3 Months Ended								12 Months Ended
3. Investments (Details 5) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Fixed-maturity securities:
Gross realized gains									$ 354,071	$ 49,412
Gross realized losses									(302,087)	(152,328)
Total									51,984	(102,916)
Equity securities:
Gross realized gains									637,249	153,711
Gross realized losses									(89,874)	(101,341)
Total equity securities									547,375	52,370
Fixed-maturity securities									(69,911)	0
Net realized gains (losses)	$ (75,455)	$ 241,035	$ 283,432	$ 80,436	$ 55,172	$ (40,487)	$ 2,263	$ (67,494)	$ 529,448	$ (50,546)

3. Investments (Details 6)	12 Months Ended
3. Investments (Details 6)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Fair Value-Less than 12 months	$ 40,892,882	$ 24,809,494
Unrealized Losses-Less than 12 Months	$ (1,249,276)	$ (693,206)
No. of Positions Held-Less than 12 Months	76	54
Fair Value-12 months or more	$ 2,000,586	$ 1,338,093
Unrealized Losses-12 months or more	$ (212,093)	$ (128,915)
No. of Positions Held-12 months or more	9	3
Aggregate Fair Value-Total	$ 42,893,468	$ 26,147,587
Unrealized Losses-Total	(1,461,369)	(822,121)
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions
Fair Value-Less than 12 months	1,067,574	1,432,005
Unrealized Losses-Less than 12 Months	$ (46,589)	$ (15,889)
No. of Positions Held-Less than 12 Months	3	4
Fair Value-12 months or more	$ 0	$ 0
Unrealized Losses-12 months or more	$ 0	$ 0
No. of Positions Held-12 months or more	0	0
Aggregate Fair Value-Total	$ 1,067,574	$ 1,432,005
Unrealized Losses-Total	(46,589)	(15,889)
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous
Fair Value-Less than 12 months	19,859,293	18,424,609
Unrealized Losses-Less than 12 Months	$ (638,113)	$ (512,427)
No. of Positions Held-Less than 12 Months	34	32
Fair Value-12 months or more	$ 239,970	$ 636,093
Unrealized Losses-12 months or more	$ (5,612)	$ (99,593)
No. of Positions Held-12 months or more	1	2
Aggregate Fair Value-Total	$ 20,099,263	$ 19,060,702
Unrealized Losses-Total	(643,725)	(612,020)
Fixed Maturity Securities Residential mortgage backed securities
Fair Value-Less than 12 months	15,918,090	2,413,980
Unrealized Losses-Less than 12 Months	$ (309,273)	$ (61,169)
No. of Positions Held-Less than 12 Months	30	12
Fair Value-12 months or more	$ 675,316	$ 0
Unrealized Losses-12 months or more	$ (38,442)	$ 0
No. of Positions Held-12 months or more	6	0
Aggregate Fair Value-Total	$ 16,593,406	$ 2,413,980
Unrealized Losses-Total	(347,715)	(61,169)
Fixed Maturity Securities Total Fixed Maturity Securities
Fair Value-Less than 12 months	36,844,957	22,270,594
Unrealized Losses-Less than 12 Months	$ (993,975)	$ (589,485)
No. of Positions Held-Less than 12 Months	67	48
Fair Value-12 months or more	$ 915,286	$ 636,093
Unrealized Losses-12 months or more	$ (44,054)	$ (99,593)
No. of Positions Held-12 months or more	7	2
Aggregate Fair Value-Total	$ 37,760,243	$ 22,906,687
Unrealized Losses-Total	(1,038,029)	(689,078)
Equity Securities Preferred Stocks
Fair Value-Less than 12 months	3,759,850	0
Unrealized Losses-Less than 12 Months	$ (241,333)	$ 0
No. of Positions Held-Less than 12 Months	8	0
Fair Value-12 months or more	$ 660,750	$ 702,000
Unrealized Losses-12 months or more	$ (70,571)	$ (29,322)
No. of Positions Held-12 months or more	1	1
Aggregate Fair Value-Total	$ 4,420,600	$ 702,000
Unrealized Losses-Total	(311,904)	(29,322)
Equity Securities Common Stocks
Fair Value-Less than 12 months	288,075	2,538,900
Unrealized Losses-Less than 12 Months	$ (13,968)	$ (103,721)
No. of Positions Held-Less than 12 Months	1	6
Fair Value-12 months or more	$ 424,550	$ 0
Unrealized Losses-12 months or more	$ (97,468)	$ 0
No. of Positions Held-12 months or more	1	0
Aggregate Fair Value-Total	$ 712,625	$ 2,538,900
Unrealized Losses-Total	(111,436)	(103,721)
Equity Securities Total Equity Securities
Fair Value-Less than 12 months	4,047,925	2,538,900
Unrealized Losses-Less than 12 Months	$ (255,301)	$ (103,721)
No. of Positions Held-Less than 12 Months	9	6
Fair Value-12 months or more	$ 1,085,300	$ 702,000
Unrealized Losses-12 months or more	$ (168,039)	$ (29,322)
No. of Positions Held-12 months or more	2	1
Aggregate Fair Value-Total	$ 5,133,225	$ 3,240,900
Unrealized Losses-Total	$ (423,340)	$ (133,043)

3. Investments (Details Narrative) - USD ($)	12 Months Ended
3. Investments (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Investments Details Narrative
Proceeds from the sale and maturity of fixed-maturity securities	$ 17,752,130	$ 6,577,943
Proceeds from the sale of equity securities	$ 7,073,773	$ 2,689,113

4. Fair Value Measurements (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Political subdivisions of States, Territories and Possessions	$ 8,205,888	$ 12,555,098
Corporate and other bonds industrial and miscellaneous	53,685,189	44,956,468
Residential mortgage backed securities	18,537,751	4,990,498
Total fixed maturities	80,428,828	62,502,064
Equity investments	9,987,686	9,204,270
Total investments	90,416,514	71,706,334
Level 1
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	48,356,317	37,964,006
Residential mortgage backed securities	0	0
Total fixed maturities	48,356,317	37,964,006
Equity investments	9,987,686	9,204,270
Total investments	58,344,003	47,168,276
Level 2
Political subdivisions of States, Territories and Possessions	8,205,888	12,555,098
Corporate and other bonds industrial and miscellaneous	5,328,872	6,992,462
Residential mortgage backed securities	18,537,751	4,990,498
Total fixed maturities	32,072,511	24,538,058
Equity investments	0	0
Total investments	32,072,511	24,538,058
Level 3
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	0	0
Residential mortgage backed securities	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, 2016	Dec. 31, 2015
Reinsurance receivables	$ 32,197,765	$ 31,270,235
Reinsurance balances payable	2,146,017	1,688,922
Carrying Value
Fixed-maturity investments held to maturity	5,094,902	5,138,872
Cash and cash equivalents	12,044,520	13,551,372
Premiums receivable	11,649,398	10,621,655
Reinsurance receivables	32,197,765	31,270,235
Real estate net of accumulated depreciation	1,659,405	1,727,068
Reinsurance balances payable	2,146,017	1,688,922
Fair Value
Fixed-maturity investments held to maturity	5,298,119	5,241,095
Cash and cash equivalents	12,044,520	13,551,372
Premiums receivable	11,649,398	10,621,655
Reinsurance receivables	32,197,765	31,270,235
Real estate net of accumulated depreciation	1,925,000	1,925,000
Reinsurance balances payable	$ 2,146,017	$ 1,688,922

6. Intangibles (Details) - USD ($)	12 Months Ended
6. Intangibles (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Gross Carrying Value	$ 4,850,000	$ 4,850,000
Accumulated Amortization	3,500,000	3,092,184
Net Carrying Amount	$ 1,350,000	1,757,816
Useful Life (in yrs)	2 years 6 months
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	2,550,000	2,210,000
Net Carrying Amount	$ 850,000	$ 1,190,000
Useful Life (in yrs)	10 years	10 years
Other identifiable intangibles [Member]
Gross Carrying Value	$ 950,000	$ 950,000
Accumulated Amortization	950,000	882,184
Net Carrying Amount	$ 0	$ 67,816
Useful Life (in yrs)	7 years	7 years

6. Intangibles (Details 1)	Dec. 31, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2017	$ 340,000
2018	340,000
2019	170,000
Total	$ 850,000

6. Intangibles (Details Narrative) - USD ($)	12 Months Ended
6. Intangibles (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Intangibles Details Narrative
Weighted average amortization period of identified intangible assets of finite useful life	2 years 6 months
Amortization expense, related to intangibles	$ 407,816	$ 475,714

7. Reinsurance (Details) - USD ($)	12 Months Ended
7. Reinsurance (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Personal Lines [Member]
Quota share treaty:
Percent ceded	40.00%	40.00%	55.00%
Risk retained	$ 500,000	$ 450,000	$ 360,000
Losses per occurrence subject to quota share reinsurance coverage	833,333	750,000	800,000
Excess of loss coverage above quota share coverage	3,666,667	3,750,000	3,200,000
Total	833,333	750,000	800,000
Total reinsurance coverage per occurrence	4,000,000	4,050,000	3,640,000
Losses per occurrence subject to reinsurance coverage	$ 4,500,000	$ 4,500,000	$ 4,000,000
Expiration date	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
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
Total reinsurance coverage per occurrence	4,900,000	2,900,000	2,900,000
Losses per occurrence subject to reinsurance coverage	$ 5,000,000	$ 3,000,000	$ 3,000,000
Expiration date	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Commercial Lines [Member]
Quota share treaty:
Percent ceded	0.00%	0.00%	0.00%
Risk retained	$ 500,000	$ 425,000	$ 400,000
Losses per occurrence subject to quota share reinsurance coverage	0	0	0
Excess of loss coverage above quota share coverage	4,000,000	4,075,000	3,600,000
Total	500,000	425,000	400,000
Total reinsurance coverage per occurrence	4,000,000	4,075,000	3,600,000
Losses per occurrence subject to reinsurance coverage	$ 4,500,000	4,500,000	4,000,000
Commercial Umbrella [Member]
Quota share treaty:
Percent ceded - first million dollars of coverage	90.00%
Percent ceded - excess of one million dollars of coverage	100.00%
Risk retained	$ 100,000
Total reinsurance coverage per occurrence	4,900,000
Losses per occurrence subject to reinsurance coverage	$ 5,000,000
Expiration date	Jun. 30, 2017
Commercial Auto [Member]
Quota share treaty:
Risk retained	$ 0	300,000	300,000
Excess of loss coverage above quota share coverage	0	1,700,000	1,700,000
Total	0	300,000	300,000
Catastrophe [Member]
Quota share treaty:
Initial loss subject to personal lines quota share treaty	5,000,000	4,000,000	4,000,000
Risk retained per catastrophe occurrence (1)	3,000,000	2,400,000	1,800,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)	$ 247,000,000	$ 176,000,000	$ 137,000,000
Severe winter weather aggregate	No	Yes	Yes
Reinstatement premium protection	Yes	Yes	No

7. Reinsurance (Details 1)	12 Months Ended
7. Reinsurance (Details 1)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Catastrophe [Member] \| Initial 4,000,000 [Member]
Risk Retained			1,800,000
Catastrophe [Member] \| 4,000,000 - 90,000,000 [Member]
Risk Retained			0
Catastrophe [Member] \| Over 90,000,000 [Member]
Risk Retained			100%
Catastrophe [Member] \| Initial $4,000,000
Risk Retained		2,400,000
Catastrophe [Member] \| $4,000,000 - $180,000,000 [Member]
Risk Retained		0
Catastrophe [Member] \| Over $180,000,000 [Member]
Risk Retained		100%
Catastrophe [Member] \| Initial $5,000,000
Risk Retained	3,000,000
Catastrophe [Member] \| 5,000,000 - 252,000,000 [Member]
Risk Retained	0
Catastrophe [Member] \| Over 252,000,000 [Member]
Risk Retained	100%
Commercial Auto [Member] \| Initial 300,000 [Member]
Risk Retained			300,000
Commercial Auto [Member] \| 300,000 - 2,000,000 [Member]
Risk Retained			0
Commercial Auto [Member] \| Over $2,000,000
Risk Retained			100%
Commercial Auto [Member] \| Initial $300,000
Risk Retained		300,000
Commercial Auto [Member] \| $300,000 - $2,000,000
Risk Retained		0
Commercial Auto [Member] \| Over $2,000,000
Risk Retained		100%
Commercial Lines [Member] \| Initial 400,000 [Member]
Risk Retained			400,000
Commercial Lines [Member] \| 400,000 - 4,000,000 [Member]
Risk Retained			0
Commercial Lines [Member] \| Over 4,000,000 [Member]
Risk Retained			100%
Commercial Lines [Member] \| Initial $425,000 [Member]
Risk Retained		425,000
Commercial Lines [Member] \| $425,000 - $4,500,000 [Member]
Risk Retained		0
Commercial Lines [Member] \| Over $4,500,000
Risk Retained		100%
Commercial Lines [Member] \| Initial 4500,000 [Member]
Risk Retained	500,000
Commercial Lines [Member] \| 500,000 - 4,500,000 [Member]
Risk Retained	0
Commercial Lines [Member] \| Over $4,500,000
Risk Retained	100%
Personal Umbrella [Member] \| Initial 1,000,000 [Member]
Risk Retained			100,000
Personal Umbrella [Member] \| 1,000,000 - 3,000,000 [Member]
Risk Retained			0
Personal Umbrella [Member] \| Over 3,000,000 [Member]
Risk Retained			100%
Personal Umbrella [Member] \| Initial $1,000,000
Risk Retained		100,000
Personal Umbrella [Member] \| 1,000,000 - 3,000,000 [Member]
Risk Retained		0
Personal Umbrella [Member] \| Over 3,000,000 [Member]
Risk Retained		100%
Personal Umbrella [Member] \| Initial $1,000,000
Risk Retained	100,000
Personal Umbrella [Member] \| $1,000,000 - $5,000,000
Risk Retained	0
Personal Umbrella [Member] \| Over $5,000,000 [Member]
Risk Retained	100%
Personal Lines [Member] \| Initial $800,000 [Member]
Risk Retained			360,000
Personal Lines [Member] \| 800,000 - $4,000,000 [Member]
Risk Retained			0
Personal Lines [Member] \| Over $4,000,000 [Member]
Risk Retained			100%
Personal Lines [Member] \| Initial 750,000 [Member]
Risk Retained		450,000
Personal Lines [Member] \| $750,000 - $4,500,000 [Member]
Risk Retained		0
Personal Lines [Member] \| Over $4,500,000 [Member]
Risk Retained		100%
Personal Lines [Member] \| Initial 833,000 [Member]
Risk Retained	500,000
Personal Lines [Member] \| 833,000 - 4,500,000 [Member]
Risk Retained	0
Personal Lines [Member] \| Over 4,500,000 [Member] \| Subsequent Event [Member]
Risk Retained	100%
Commercial Umbrella [Member] \| Initial $1,000,000
Risk Retained	100,000
Commercial Umbrella [Member] \| $1,000,000 - $5,000,000
Risk Retained	0
Commercial Umbrella [Member] \| Over $5,000,000
Risk Retained	100%

7. Reinsurance (Details 2) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Unpaid Losses	$ 15,777	$ 16,706
Paid Losses	2,319	2,048
Total	18,096	18,754
Security	13,277	12,494
Maiden Reinsurance Company [Member]
Unpaid Losses	7,640	7,979
Paid Losses	985	631
Total	8,625	8,610
Security	13,113	12,201
Swiss Reinsurance America Corporation [Member]
Unpaid Losses	4,310	3,662
Paid Losses	671	377
Total	4,981	4,039
Security	0	0
SCOR Reinsurance Company [Member]
Unpaid Losses	1,440	1,982
Paid Losses	152	114
Total	1,592	2,096
Security	0	0
Hannover Rueck [Member]
Unpaid Losses		853
Paid Losses		524
Total		1,377
Security		0
Motors Insurance Corporation [Member]
Unpaid Losses		0
Paid Losses		0
Total		0
Security		0
Sirius American Insurance Company [Member]
Unpaid Losses		0
Paid Losses		0
Total		0
Security		0
Allied World Assurance Company [Member]
Unpaid Losses	392	940
Paid Losses	300	285
Total	692	1,225
Security	0	0
Others [Member]
Unpaid Losses	1,995	1,290
Paid Losses	211	117
Total	2,206	1,407
Security	$ 164	$ 293

7. Reinsurance (Details 3) - USD ($)	3 Months Ended								12 Months Ended
7. Reinsurance (Details 3) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Reinsurance Details 3
Provisional ceding commissions earned									$ 12,769,404	$ 11,692,458
Contingent ceding commissions earned									(1,501,163)	(219,341)
Ceding commission revenue	$ 2,993,951	$ 2,934,928	$ 2,569,025	$ 2,770,337	$ 2,084,660	$ 2,643,531	$ 3,655,522	$ 3,089,404	$ 11,268,241	$ 11,473,117

7. Reinsurance (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Reinsurance Details Narrative
Reinsurance receivables	$ 14,101,745	$ 12,515,892
Reinsurance balances payable	$ 2,146,017	$ 1,688,922

8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Deferred Acquisition Costs And Deferred Ceding Commission Revenue Details
Net deferred policy acquisition costs net of ceding commission revenue, beginning of year	$ 4,400,238	$ 3,029,441
Cost incurred and deferred:
Commission and brokerage	19,566,982	16,963,843
Other underwriting and policy acquisition costs	5,470,285	4,904,350
Ceding commission revenue	(13,186,177)	(12,170,986)
Net deferred policy acquisition costs	11,851,090	9,697,207
Amortization	(10,863,388)	(8,326,410)
Deferred acquisition costs	987,702	1,370,797
Net deferred policy acquisition costs net of ceding commission revenue, end of year	$ 5,387,940	$ 4,400,238

8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred Acquisition Costs And Deferred Ceding Commission Revenue Details 1
Deferred policy acquisition costs	$ 12,239,781	$ 10,835,306
Deferred ceding commission revenue	(6,851,841)	(6,435,068)
Balance at end of period	$ 5,387,940	$ 4,400,238

9. Property and Equipment (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Cost	$ 5,344,608	$ 4,768,396
Accumulated Depreciation	(2,333,235)	(1,616,130)
Net	3,011,373	3,152,266
Building
Cost	1,887,347	1,887,347
Accumulated Depreciation	(381,039)	(313,376)
Net	1,506,308	1,573,971
Land
Cost	153,097	153,097
Accumulated Depreciation	0	0
Net	153,097	153,097
Furniture office equipment
Cost	620,440	518,495
Accumulated Depreciation	(388,853)	(257,485)
Net	231,587	261,010
Computer equipment and software
Cost	2,602,330	2,128,063
Accumulated Depreciation	(1,481,949)	(963,875)
Net	1,120,381	1,164,188
Automobile
Cost	81,394	81,394
Accumulated Depreciation	(81,394)	(81,394)
Net	$ 0	$ 0

9. Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
9. Property and Equipment (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property And Equipment Details Narrative
Depreciation expense	$ 717,105	$ 556,295

10. Property and Casualty Insurance Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Premiums Written
Direct	$ 103,191,995	$ 91,003,968
Assumed	28,522	40,971
Ceded	(37,294,330)	(30,660,161)
Net	65,926,187	60,384,778
Changes In Unearned Premiums
Direct	(6,110,225)	(8,436,456)
Assumed	6,091	4,255
Ceded	1,585,853	(3,340,495)
Net	(4,518,281)	(11,772,696)
Premiums Earned
Direct	97,081,770	82,567,512
Assumed	34,613	45,226
Ceded	(35,708,477)	(34,000,656)
Net	$ 61,407,906	$ 48,612,082

10. Property and Casualty Insurance Activity (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Unearned premiums	$ 54,994,375	$ 48,890,241
Gross Liability
Case-basis reserves	25,000,733	24,730,463
Loss adjustment expenses	7,752,617	5,429,221
IBNR reserves	8,983,369	9,716,816
Total loss and loss adjustment expenses	41,736,719	39,876,500
Reinsurance Receivables
Case-basis reserves	10,804,341	11,264,279
Loss adjustment expenses	1,893,094	1,720,522
IBNR reserves	3,079,445	3,721,563
Recoverable on unpaid losses	15,776,880	16,706,364
Recoverable on paid losses	2,319,140	2,047,979
Total loss and loss adjustment expenses	18,096,020	18,754,343
Unearned premiums	14,101,745	12,515,892
Total reinsurance receivables	$ 32,197,765	$ 31,270,235

10. Property and Casualty Insurance Activity (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property And Casualty Insurance Activity Details 2
Balance at beginning of period	$ 39,876,500	$ 39,912,683
Less reinsurance recoverables	(16,706,364)	(18,249,526)
Net balance, beginning of period	23,170,136	21,663,157
Incurred related to:
Current year	27,853,010	23,642,998
Prior years	(63,349)	(462,998)
Total incurred	27,789,661	23,180,000
Paid related to:
Current year	16,496,648	13,172,870
Prior years	8,503,310	8,500,151
Total paid	24,999,958	21,673,021
Net balance at end of period	25,959,839	23,170,136
Add reinsurance recoverables	15,776,880	16,706,364
Balance at end of period	$ 41,736,719	$ 39,876,500

10. Property and Casualty Insurance Activity (Details 3)	12 Months Ended
	Dec. 31, 2016 USD ($) Claims
2007
2007	$ 3,572
IBNR	$ 6
Cumulative Number of Reported Claims \| Claims	1,067
2008
2007	$ 3,414
2008	4,505
IBNR	$ 3
Cumulative Number of Reported Claims \| Claims	1,133
2009
2007	$ 3,655
2008	4,329
2009	4,403
IBNR	$ 8
Cumulative Number of Reported Claims \| Claims	1,136
2010
2007	$ 3,710
2008	4,223
2009	4,254
2010	5,598
IBNR	$ 20
Cumulative Number of Reported Claims \| Claims	1,616
2011
2007	$ 3,744
2008	4,189
2009	4,287
2010	5,707
2011	7,603
IBNR	$ 69
Cumulative Number of Reported Claims \| Claims	1,913
2012
2007	$ 3,770
2008	4,068
2009	4,384
2010	6,429
2011	7,678
2012	9,539
IBNR	$ 168
Cumulative Number of Reported Claims \| Claims	4,701
2013
2007	$ 3,877
2008	4,055
2009	4,511
2010	6,623
2011	8,618
2012	9,344
2013	10,728
IBNR	$ 507
Cumulative Number of Reported Claims \| Claims	1,551
2014
2007	$ 3,913
2008	4,056
2009	4,609
2010	6,912
2011	9,440
2012	10,278
2013	9,745
2014	14,193
IBNR	$ 1,009
Cumulative Number of Reported Claims \| Claims	2,117
2015
2007	$ 3,916
2008	4,040
2009	4,616
2010	6,853
2011	9,198
2012	10,382
2013	9,424
2014	14,260
2015	22,340
IBNR	$ 2,452
Cumulative Number of Reported Claims \| Claims	2,508
2016
2007	$ 3,941
2008	4,038
2009	4,667
2010	6,838
2011	9,066
2012	10,582
2013	9,621
2014	14,218
2015	21,994
2016	26,062
Total	111,027
IBNR	$ 5,593
Cumulative Number of Reported Claims \| Claims	2,688

10. Property and Casualty Insurance Activity (Details 4)	Dec. 31, 2016 USD ($)
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented	$ 24,315
All outstanding liabilities before 2007, net of reinsurance	602
Liabilities for claims and claim adjustment expenses, net of reinsurance	24,917
2007
2007	1,790
2008
2007	2,233
2008	2,406
2009
2007	2,924
2008	3,346
2009	2,298
2010
2007	3,428
2008	3,730
2009	3,068
2010	2,566
2011
2007	3,603
2008	3,969
2009	3,607
2010	3,947
2011	3,740
2012
2007	3,649
2008	4,003
2009	3,920
2010	4,972
2011	5,117
2012	3,950
2013
2007	3,670
2008	4,029
2009	4,134
2010	5,602
2011	6,228
2012	5,770
2013	3,405
2014
2007	3,797
2008	4,028
2009	4,362
2010	6,323
2011	7,170
2012	7,127
2013	5,303
2014	5,710
2015
2007	3,873
2008	4,031
2009	4,424
2010	6,576
2011	8,139
2012	8,196
2013	6,633
2014	9,429
2015	12,295
2016
2007	3,892
2008	4,031
2009	4,468
2010	6,720
2011	8,540
2012	9,187
2013	7,591
2014	10,738
2015	16,181
2016	15,364
Total	$ 86,712

10. Property and Casualty Insurance Activity (Details 5)	Dec. 31, 2016 USD ($)
Commissions and brokerage
Liabilities for claims and claim adjustment expenses, net of reinsurance	$ 24,917
Total reinsurance recoverable on unpaid claims	15,777
Unallocated claims adjustment expenses	1,043
Total gross liability for loss and LAE reserves	$ 41,737

10. Property and Casualty Insurance Activity (Details 6)	Dec. 31, 2016
Commissions and brokerage
Year One	46.10%
Year Two	18.60%
Year Three	12.70%
Year Four	9.30%
Year Five	6.70%
Year Six	3.00%
Year Seven	1.00%
Year Eight	1.40%
Year Nine	1.00%
Year Ten	0.50%

10. Property and Casualty Insurance Activity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property And Casualty Insurance Activity Details Narrative
Advance premiums	$ 1,421,560	$ 1,199,376
Incurred Losses and Loss Adjustment Expenses are net of reinsurance recoveries under reinsurance contracts	$ 11,796,714	$ 14,428,197

11. Stockholders' Equity (Details)	12 Months Ended
11. Stockholders' Equity (Details)	Dec. 31, 2016	Dec. 31, 2015
Dividend Yield		2.62%
Volatility		34.54%
Risk-Free Interest Rate		1.03%
Expected Life	3 years 3 months	3 years
Minimum [Member]
Dividend Yield	2.74%
Volatility	31.61%
Risk-Free Interest Rate	1.01%
Maximum [Member]
Dividend Yield	3.18%
Volatility	31.81%
Risk-Free Interest Rate	1.11%

11. Stockholders' Equity (Details 1) - USD ($)	12 Months Ended
11. Stockholders' Equity (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Stockholders Equity Details 1
Number of Options Outstanding, Beginning	339,750
Number of Options Granted	40,000
Number of Options Exercised	(12,000)
Number of Options Forfeited	(5,000)
Number of Options Outstanding, Ending	362,750	339,750
Number of Options Vested and Exercisable	270,250
Weighted Average Exercise Price Outstanding, Beginning	$ 6.34
Weighted Average Exercise Price Granted	8.33
Weighted Average Exercise Price Exercised	4.96
Weighted Average Exercise Price Forfeited	5.09
Weighted Average Exercise Price Outstanding, Ending	6.62	$ 6.34
Weighted Average Exercise Price Vested and Exercisable	$ 6.40
Weighted Average Remaining Contractual Life (in years) Outstanding Beginning	3 years 4 months 10 days
Weighted Average Remaining Contractual Life (in years) Outstanding Ending	2 years 7 months 10 days
Weighted Average Remaining Contractual Life (in years) Vested and Exercisable	2 years 4 months 20 days
Aggregate Intrinsic Value Outstanding, Beginning	$ 904,775
Aggregate Intrinsic Value Granted	$ 216,950
Aggregate Intrinsic Value Exercised	$ 80,985	$ 677,713
Aggregate Intrinsic Value Forfeited/canceled	$ 17,600
Aggregate Intrinsic Value Outstanding, Ending	$ 2,586,748	$ 904,775
Aggregate Intrinsic Value Vested and Exercisable	$ 1,985,285

11. Stockholders' Equity (Details Narrative) - USD ($)	12 Months Ended
11. Stockholders' Equity (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Employee Benefit Plans Details Narrative
Dividends Declared	$ 1,941,271	$ 1,557,398
Compensation Expense	$ 106,882	$ 134,185
Stock-based compensation expense related to stock options is net of estimated forfeitures	17.00%	17.00%
Weighted average estimated fair value of stock options granted		$ 1.87
Intrisic Value-Options Exercised	$ 80,985	$ 677,713
Options Exercised - Cash proceeds	54,310	$ 0
Unamortized compensation cost related to unvested stock option awards	$ 45,000
Unamortized compensation cost vesting period	1 year 14 days
Shares reserved under the 2014 Plan	602,500	650,000

12. Statutory Financial Information and Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statutory Financial Information And Accounting Policies Details Narrative
Dividends paid	$ 1,950,000	$ 1,650,000
Statutory basis net income	9,212,125	6,632,042
Statutory basis surplus	$ 49,962,415	$ 39,072,962

14. Income Taxes (Details) - USD ($)	12 Months Ended
14. Income Taxes (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Income Taxes Details
Current federal income tax expense	$ 4,824,655	$ 3,557,385
Current state income tax expense	(12,590)	19,000
Deferred federal and state income tax expense (benefit)	(293,364)	(226,932)
Provision for income taxes	$ 4,518,701	$ 3,349,453

14. Income Taxes (Details 1) - USD ($)	12 Months Ended
14. Income Taxes (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Income Taxes Details 4
Computed expected tax expense	$ 4,696,463	$ 3,505,085
State taxes, net of Federal benefit	(71,428)	(74,827)
State valuation allowance	85,714	171,532
Benefit of lower tax brackets	(100,000)	0
Permanent differences
Dividends received deduction	(136,690)	(121,960)
Non-taxable investment income	(110,784)	(177,487)
Other permanent differences	48,139	55,623
Prior year tax matters	123,976	(49,139)
Other	(16,689)	40,626
Total tax	$ 4,518,701	$ 3,349,453
Computed expected tax expense	35.00%	34.00%
State taxes, net of Federal benefit	(0.50%)	(0.70%)
State valuation allowance	0.60%	1.70%
Benefit of lower tax brackets	(0.70%)	0.00%
Permanent differences
Dividends received deduction	(1.00%)	(1.20%)
Non-taxable investment income	(0.80%)	(1.70%)
Other permanent differences	0.30%	0.50%
Prior year tax matters	0.90%	(0.50%)
Other	(0.10%)	0.40%
Total tax	33.70%	32.50%

14. Income Taxes (Details 2) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred tax asset:
Net operating loss carryovers (1)	$ 131,626	$ 150,492
Claims reserve discount	417,349	405,709
Unearned premium	2,877,365	2,555,012
Deferred ceding commission revenue	2,329,626	2,187,923
Other	188,675	151,250
Total deferred tax assets	5,944,641	5,450,386
Deferred tax liability:
Investment in KICO (2)	1,169,000	1,169,000
Deferred acquisition costs	4,161,526	3,684,004
Intangibles	459,000	597,657
Depreciation and amortization	265,671	415,938
Net unrealized appreciation of securities - available for sale	56,393	255,977
Total deferred tax liabilities	6,111,590	6,122,576
Net deferred income tax liability	$ (166,949)	$ (672,190)

14. Income Taxes (Details 3) - USD ($)	12 Months Ended
14. Income Taxes (Details 3) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Intrisic Value-Options Exercised
State only (A)	$ 655,719	$ 540,865
Valuation allowance	(534,293)	(403,973)
State only, net of valuation allowance	121,426	136,892
Amount subject to Annual Limitation, Federal only (B)	10,200	13,600
Total deferred tax asset from net operating loss carryovers	$ 131,626	$ 150,492
State only (A) expiration date	31-Dec-36	31-Dec-36
Amount subject to Annual Limitation, Federal only (B) expiration date	31-Dec-19	31-Dec-19

14. Income Taxes (Details 4) - USD ($)	12 Months Ended
14. Income Taxes (Details 4) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Income Taxes Details 4 [Default Label]
Change in net deferred income tax liabilities	$ (505,241)
Deferred tax expense (benefit) allocated to other comprehensive income	(211,877)
Deferred income tax provision	$ (293,364)	$ (226,932)

14. Income Taxes (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
IBNR reserves [Default Label]
Net operating loss carryover	$ 10,088,000	$ 8,321,000

15. Employee Benefit Plans (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Employee Benefit Plans Details Narrative [Default Label]
Contribution expense	$ 483,000	$ 422,000
Additional contributions expense	$ 309,000	$ 263,000

16. Commitments and Contingencies (Details)	Dec. 31, 2016 USD ($)
Commitments And Contingencies Details
2017	$ 146,008
2018	164,117
2019	169,861
2020	175,806
2021	181,959
Thereafter	432,392
Total	$ 1,270,143

16. Commitments and Contingencies (Details Narrative) (USD $) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Commitments And Contingencies Details Narrative Usd
Rent expenses	$ 119,720	$ 52,252

17. Earnings Per Common Share (Details) - USD ($)	12 Months Ended
17. Earnings Per Common Share (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Net Income Per Common Share Details
Weighted average number of shares outstanding	7,736,594	7,331,114
Effect of dilutive securities, common share equivalents	$ 70,669	$ 46,766
Weighted average number of shares outstanding, used for computing diluted earnings per share	7,807,263	7,377,880

17. Earnings Per Common Share (Details Narrative) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Common Share Details Narrative
Options computation of diluted earnings per share	7,715	0

18. Premium Finance Placement Fees (Details) - USD ($)	12 Months Ended
18. Premium Finance Placement Fees (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Premium Finance Placement Fees Details
Placement fee revenue	$ 0	$ 54,343
Termination fee	0	350,000
Direct expenses	0	(12,989)
Net income before taxes from placement fees	$ 0	$ 391,354

20. Quarterly Financial Data (Details) - USD ($)	3 Months Ended								12 Months Ended
20. Quarterly Financial Data (Details) - USD ($)	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Data Tables
Net premiums earned	$ 16,219,175	$ 15,646,181	$ 15,010,875	$ 14,531,675	$ 14,230,964	$ 13,129,604	$ 10,865,715	$ 10,385,799	$ 61,407,906	$ 48,612,082
Ceding commission revenue	2,993,951	2,934,928	2,569,025	2,770,337	2,084,660	2,643,531	3,655,522	3,089,404	11,268,241	11,473,117
Net investment income	829,384	709,072	764,070	813,057	713,821	649,441	625,972	574,656	3,115,583	2,563,890
Net realized gain (loss) on sale of investments	(75,455)	241,035	283,432	80,436	55,172	(40,487)	2,263	(67,494)	529,448	(50,546)
Total revenues	20,251,505	19,828,397	18,911,910	18,444,852	17,362,297	16,657,369	15,542,512	14,613,556	77,436,664	64,175,734
Loss and loss adjustment expenses	7,384,116	5,134,854	5,786,836	9,483,855	6,295,776	5,050,194	4,770,813	7,063,217	27,789,661	23,180,000
Commission expense and other underwriting expenses	8,812,023	8,642,964	8,122,342	7,616,507	7,766,815	7,410,407	6,561,827	6,411,482	33,193,836	28,150,531
Net income	$ 2,055,847	$ 3,460,626	$ 2,842,261	$ 541,032	$ 1,852,285	$ 2,345,654	$ 2,379,182	$ 382,499	$ 8,899,766	$ 6,959,620
Basic earnings per share	$ 0.26	$ 0.44	$ 0.36	$ 0.07	$ 0.25	$ 0.32	$ 0.32	$ 0.05	$ 1.15	$ 0.95
Diluted earnings per share	$ 0.26	$ 0.43	$ 0.36	$ 0.07	$ 0.25	$ 0.32	$ 0.32	$ 0.05	$ 1.14	$ 0.94