0001654954-21-003658 | 10-K | XBRL Viewer

Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2020	Mar. 17, 2021	Jun. 30, 2020
Cover [Abstract]
Entity Registrant Name	KINGSTONE COMPANIES, INC.
Entity Central Index Key	0000033992
Document Type	10-K
Amendment Flag	false
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	No
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Dec. 31, 2020
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2020
Entity Common Stock Shares Outstanding			10,701,407
Entity Public Float		$ 43,436,197
Document Annual Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity File Number	0-1665
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	36-2476480
Entity Address Address Line 1	15 Joys Lane
Entity Address City Or Town	Kingston
Entity Address State Or Province	NY
Entity Address Postal Zip Code	12401
City Area Code	845
Local Phone Number	802-7900
Security 12b Title	0.01
Trading Symbol	KINS
Security Exchange Name	NASDAQ

Consolidated Balance Sheets - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Assets
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $8,194,824 at December 31, 2020 and $4,124,767 at December 31, 2019)	$ 7,368,815	$ 3,825,952
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $145,045,584 at December 31, 2020 and $162,202,355 at December 31, 2019)	157,549,272	168,236,181
Equity securities, at fair value (cost of $32,571,166 at December 31, 2020 and $22,624,668 at December 31, 2019)	34,413,313	24,661,382
Other investments	3,518,626	2,584,913
Total investments	202,850,026	199,308,428
Cash and cash equivalents	19,463,742	32,391,485
Premiums receivable, net	11,819,639	12,706,411
Reinsurance receivables, net	45,460,729	40,750,538
Deferred policy acquisition costs	20,142,515	20,634,378
Intangible assets	500,000	500,000
Property and equipment, net	8,083,123	7,620,636
Deferred income taxes, net	0	311,052
Other assets	9,262,493	6,979,884
Total assets	317,582,267	321,202,812
Liabilities
Loss and loss adjustment expense reserves	82,801,228	80,498,611
Unearned premiums	90,009,272	90,383,238
Advance premiums	2,660,354	3,191,512
Reinsurance balances payable	6,979,735	11,714,724
Deferred ceding commission revenue	93,519	7,735,398
Accounts payable, accrued expenses and other liabilities	8,433,233	9,986,317
Deferred income tax, net	4,156,913	0
Long-term debt, net	29,647,611	29,471,431
Total liabilities	224,781,865	232,981,231
Commitments and Contingencies (Note 17)	0	0
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 11,871,307 shares at December 31, 2020 and 11,824,889 at December 31, 2019; outstanding 10,616,815 shares at December 31, 2020 and 10,797,450 shares at December 31, 2019	118,713	118,248
Capital in excess of par	70,769,165	69,133,918
Accumulated other comprehensive income	9,880,062	4,768,870
Retained earnings	15,928,345	16,913,097
Equity	96,696,285	90,934,133
Treasury stock, at cost, 1,254,492 shares at December 31, 2020 and 1,027,439 shares at December 31, 2019	(3,895,883)	(2,712,552)
Total stockholders' equity	92,800,402	88,221,581
Total liabilities and stockholders' equity	$ 317,582,267	$ 321,202,812

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Consolidated Balance Sheets
Fixed-maturity securities, held-to-maturity, fair value	$ 8,194,824	$ 4,124,767
Fixed-maturity securities, available-for-sale, amortized cost	145,045,584	162,202,355
Equity securities, available-for-sale, cost	$ 32,571,166	$ 22,624,668
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	11,871,307	11,824,889
Common stock, outstanding shares	10,616,815	10,797,450
Treasury stock, shares	1,254,492	1,027,439

Consolidated Statements of Operations and Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenues
Net premiums earned	$ 108,080,629	$ 127,623,442
Ceding commission revenue	14,202,353	4,650,851
Net investment income	6,505,603	6,869,346
Net gains on investments	1,590,616	4,591,019
Other income	990,550	1,385,308
Total revenues	131,369,751	145,119,966
Expenses
Loss and loss adjustment expenses	66,431,072	90,182,324
Commission expense	31,828,174	30,093,106
Other underwriting expenses	25,424,779	24,420,208
Other operating expenses	4,282,773	3,834,746
Depreciation and amortization	2,864,583	2,545,946
Interest expense	1,826,180	1,826,180
Total expenses	132,657,561	152,902,510
Loss from operations before taxes	(1,287,810)	(7,782,544)
Income tax benefit	(2,260,200)	(1,816,191)
Net income (loss)	972,390	(5,966,353)
Other comprehensive income, net of tax:
Gross change in unrealized gains on available-for-sale-securities	7,148,205	9,564,647
Reclassification adjustment for (gains) losses included in net income (loss)	(678,343)	122,925
Net change in unrealized gains	6,469,862	9,687,572
Income tax expense related to items of other comprehensive income	(1,358,670)	(2,034,389)
Other comprehensive income, net of taxe	5,111,192	7,653,183
Comprehensive income	$ 6,083,582	$ 1,686,830
Earnings (loss) per common share:
Basic earning	$ 0.09	$ (0.55)
Diluted earning	$ 0.09	$ (0.55)
Weighted average common shares outstanding
Basic	10,721,342	10,773,623
Diluted	10,730,737	10,773,623
Dividends declared and paid per common share	$ 0.1825	$ 0.3250

Consolidated Statements of Stockholders Equity - USD ($)	Total	Preferred Stock	Common Stock	Treasury Stock	Capital in Excess of Par	Accumulated other comprehensive Income	Retained Earnings
Balance, shares at Dec. 31, 2018			11,775,148	1,027,439
Balance, amount at Dec. 31, 2018	$ 88,665,642	$ 0	$ 117,751	$ (2,712,552)	$ 67,763,940	$ (2,884,313)	$ 26,380,816
Stock-based compensation	1,501,377	0	$ 0	0	1,501,377	0	0
Vesting of restricted stock awards, shares			58,246
Vesting of restricted stock awards, amount	0	0	$ 580	0	(580)	0	0
Shares deducted from restricted stock awards for payment of withholding taxes, shares			(11,505)
Shares deducted from restricted stock awards for payment of withholding taxes, amount	(154,452)	0	$ (113)	0	(154,339)	0	0
Exercise of stock options, shares			3,000
Exercise of stock options, amount	23,550	0	$ 30	0	23,520	0	0
Dividends	(3,501,366)	0	0	0	0	0	(3,501,366)
Net loss	(5,966,353)	0	0	0	0	0	(5,966,353)
Change in unrealized gains on available- for-sale securities, net of tax	7,653,183	0	$ 0	$ 0	0	7,653,183	0
Balance, shares at Dec. 31, 2019			11,824,889	1,027,439
Balance, amount at Dec. 31, 2019	88,221,581	0	$ 118,248	$ (2,712,552)	69,133,918	4,768,870	16,913,097
Stock-based compensation	1,769,649	0	$ 0	0	1,769,649	0	0
Vesting of restricted stock awards, shares			67,686
Vesting of restricted stock awards, amount	(133,937)	0	$ 676		(676)	0	0
Shares deducted from restricted stock awards for payment of withholding taxes, shares			(21,268)
Shares deducted from restricted stock awards for payment of withholding taxes, amount	(133,937)	0	$ (211)	0	(133,726)	0	0
Dividends	(1,957,142)	0	0	0	0	0	(1,957,142)
Net loss	972,390
Change in unrealized gains on available- for-sale securities, net of tax	5,111,192	0	0	$ 0	0	5,111,192	0
Acquisition of treasury stock, shares				227,053
Acquisition of treasury stock, amount	(1,183,331)	0	0	$ (1,183,331)	0	0	0
Net income	972,390	0	$ 0	$ 0	0	0	972,390
Balance, shares at Dec. 31, 2020			11,871,307	1,254,492
Balance, amount at Dec. 31, 2020	$ 92,800,402	$ 0	$ 118,713	$ (3,895,883)	$ 70,769,165	$ 9,880,062	$ 15,928,345

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ 972,390	$ (5,966,353)
Adjustments to reconcile net income (loss) to net cash flows (used in) provided by operating activities:
Net gains on sale of investments	(832,418)	(28,845)
Net unrealized losses (gains) of equity investments	175,515	(3,832,486)
Net unrealized gains of other investments	(933,713)	(729,688)
Depreciation and amortization	2,864,583	2,545,946
Bad debts	128,585	112,761
Amortization of bond premium, net	614,307	417,119
Amortization of discount and issuance costs on long-term debt	176,180	176,180
Stock-based compensation	1,769,649	1,501,377
Deferred income tax benefit	3,109,295	(1,991,208)
Decrease (increase) in operating assets:
Premiums receivable, net	758,187	1,142,427
Reinsurance receivables, net	(4,710,191)	(14,383,423)
Deferred policy acquisition costs	491,863	(2,726,641)
Other assets	(2,286,399)	(1,096,732)
(Decrease) increase in operating liabilities:
Loss and loss adjustment expense reserves	2,302,617	24,301,505
Unearned premiums	(373,966)	11,351,107
Advance premiums	(531,158)	1,083,883
Reinsurance balances payable	(4,734,989)	9,781,348
Deferred ceding commission revenue	(7,641,879)	5,048,721
Accounts payable, accrued expenses and other liabilities	(1,553,084)	3,152,051
Net cash flows (used in) provided by operating activities	(10,234,626)	29,859,049
Cash flows from investing activities:
Purchase - fixed-maturity securities, held-to-maturity	(4,041,750)	0
Purchase - fixed-maturity securities, available-for-sale	(18,524,314)	(23,881,518)
Purchase - equity securities	(20,967,535)	(9,578,765)
Sale and redemption - fixed-maturity securities, held-to-maturity	500,000	400,000
Sale and maturity - fixed-maturity securities, available-for-sale	35,845,934	16,567,284
Sale - equity securities	11,096,028	5,458,953
Acquisition of fixed assets	(3,327,070)	(3,939,653)
Net cash flows provided by (used in) investing activities	581,293	(14,973,699)
Cash flows from financing activities:
Proceeds from exercise of stock options	0	23,550
Withholding taxes paid on vested retricted stock awards	(133,937)	(154,452)
Purchase of treasury stock	(1,183,331)	0
Dividends paid	(1,957,142)	(3,501,366)
Net cash flows used in financing activities	(3,274,410)	(3,632,268)
(Decrease) increase in cash and cash equivalents	(12,927,743)	11,253,082
Cash and cash equivalents, beginning of period	32,391,485	21,138,403
Cash and cash equivalents, end of period	19,463,742	32,391,485
Supplemental disclosures of cash flow information:
Cash paid for income taxes	382,437	388,000
Cash paid for interest	$ 1,650,000	$ 1,650,000

Nature of Business

12 Months Ended

Dec. 31, 2020

Nature of Business

1. Nature of Business

Note 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 exclusively through retail and wholesale agents and brokers. KICO is a licensed insurance company in the States of New York, New Jersey, Rhode Island, Massachusetts, Pennsylvania, Connecticut, Maine and New Hampshire. KICO is currently offering its property and casualty insurance products in New York, New Jersey, Rhode Island, Massachusetts, and Connecticut. Although New Jersey, Rhode Island, Massachusetts and Connecticut continue to be growing markets for the Company, 80.0% and 85.0% of KICO’s direct written premiums for the years ended December 31, 2020 and 2019, respectively, came from the New York policies. Kingstone, through its wholly owned subsidiary, Cosi Agency, Inc. (“Cosi”), a multi-state licensed general agency, accesses alternate forms of distribution outside of the independent agent and broker network, through which KICO currently distributes its various products. Kingstone (through Cosi) now has the opportunity to partner with name-brand carriers and access nationwide insurance agencies.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Note 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”).

Certain prior year balances were reclassified to conform with the current year presentation.

Principles of Consolidation

The consolidated financial statements consist of the financials for 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) Cosi. All significant inter-company account balances and 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 ceding commission revenue in the period that changes in the estimated losses are determined.

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 loss 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 statements of operations 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, 2020 and 2019. The Company did not expense any uncollectible reinsurance for the years ended December 31, 2020 and 2019. 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

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. In accordance with Accounting Standards Update (“ASU”) 2016-01– Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), changes in the estimated fair value of equity securities and other investments are reported in net income (loss). The Company may sell its available-for-sale securities, equity securities, and other investments 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 recognized pricing services, with unrealized gains and losses, net of tax effects, reported as a separate component of accumulated other comprehensive income. Realized gains and losses are determined on the specific identification method and reported in net income (loss) in the consolidated statements of operations and comprehensive income.

Equity securities are reported at their estimated fair values based on quoted market prices from recognized pricing services, with unrealized gains and losses reported in net income (loss). Other investments are reported at their estimated fair values using the net asset value (“NAV”) per share (or its equivalent) of the instrument with unrealized gains and losses reported in net income (loss). See Note 3, Investments for additional discussion.

Investment income is accrued to the balance sheet dates of the consolidated financial statements and includes amortization of premium and accretion of discount on fixed-maturity securities. Interest is recognized when earned, while dividends are recognized when declared. Due and accrued investment income totaled approximately $1,880,000and $1,922,000as of December 31, 2020 and 2019, respectively, and is included in other assets on the accompanying consolidated balance sheets.

Premiums Receivable

Premiums receivable include balances due currently or in the future and are presented net of an allowance for doubtful accounts of approximately $390,000and $338,000as of December 31, 2020 and 2019, 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 $129,000and $113,000were written off for the years ended December 31, 2020 and 2019, respectively.

Deferred Policy Acquisition Costs

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 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 impairment testing if events or changes in circumstances indicate that it is more likely than not the asset is impaired. 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, 2020 and 2019.

Property and Equipment

Building and building improvements, automobiles, furniture, computer equipment, and computer 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, automobiles, furniture and other equipment is three years, and building and building improvements is39 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 estimated 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, 2020 and 2019, 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 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 (loss) in the period that includes the enactment date. The Company files a consolidated tax return with its subsidiaries. At December 31, 2020 and 2019, 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, Credit Risk and Market Risk

Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents, investments, and premium and reinsurance receivables. At times, cash may be uninsured or in deposit accounts that exceed Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The Company has not experienced any losses on such accounts and management believes the Company is not exposed to any significant credit risk.

Stressed conditions, volatility and disruptions in capital markets or financial asset classes can have an adverse effect on the Company, in part because the Company has a large investment portfolio supporting the Company’s insurance liabilities, which are sensitive to changing market factors. These market factors, which include interest rates, credit spread, equity prices, and the volatility and strength of the capital markets, all affect the business and economic environment and, ultimately, the profitability of the Company’s business. The Company manages its investments to limit credit and other market risks by diversifying its portfolio among various security types and industry sectors based on KICO’s investment committee guidelines, which employ a variety of investment strategies.

As of December 31, 2020 and 2019, the Company’s cash equivalents were as follows:

	December 31,		December 31,
	2020		2019

Collateralized bank repurchase agreement (1)	$	2,228,779	$	941,792
Money market funds		17,272,985		12,583,957
Total	$	19,501,764	$	13,525,749

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, 2020 and 2019 as follows:

	Years ended December 31,
	2020			2019
Personal Lines		92.9	%		83.5	%
Premiums earned not subject to concentration (1)		7.1	%		16.5	%
Total premiums earned		100.0	%		100.0	%

Compensated Absences

Employees of the Company are entitled to paid vacations, sick days, and other time off depending on job classification, length of service and other factors. The Company has determined it is impracticable to estimate the amount of compensation of future absences and, accordingly, no liability has been recorded in the accompanying consolidated financial statements. The Company’s policy is to recognize the cost of compensated absences when paid to employees.

Leases

The Company records operating leases in accordance with ASU 2016-02 – Leases (Topic 842) (“ASU 2016-02”). Under this ASU, the Company recognized 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 has been measured at 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 Company’s incremental borrowing rate. The Company adopted ASU 2016-02 effective January 1, 2019 using the cumulative effect adjustment transition method, which applies the provision of the standard at the effective date without adjusting the comparative periods presented. The adoption of the updated guidance resulted in the Company recognizing a right-of-use asset of $855,000 as part of other assets and a lease liability of $855,000 as part of accounts payable, accrued expenses and other liabilities in the consolidated balance sheet. The right-of-use asset is amortized as rent expense on a straight-line basis.

Comprehensive Income

Comprehensive income refers to revenues, expenses, gains and losses that are included in comprehensive income but are excluded from net income (loss) 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, and related income taxes.

Accounting Changes

The Company has determined that it was not subject to any new accounting pronouncements that became effective during the year ended December 31, 2020.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). 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 for the Company on January 1, 2023. The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (“ASU 2019-12”). Among other items, the amendments in ASU 2019-12 simplify the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, current guidance provides an exception that when a loss in an interim period exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this exception and provides that in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted. The Company will adopt ASU 2019-12 effective January 1, 2021 and the Company does not expect it to have a material impact on its consolidated financial statements.

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.

Investments

12 Months Ended

Dec. 31, 2020

Investments

3. Investments

Note 3 - Investments

Fixed-Maturity Securities

The amortized cost, estimated fair value, and unrealized gains and losses on investments in fixed-maturity securities classified as available-for-sale as of December 31, 2020 and 2019 are summarized as follows:

	December 31, 2020

	Cost or		Gross		Gross Unrealized Losses						Estimated		Net
	Amortized		Unrealized		Less than 12			More than 12			Fair		Unrealized
Category	Cost		Gains		Months			Months			Value		Gains

Fixed-Maturity Securities:
U.S. Treasury securities and
obligations of U.S. government
corporations and agencies	$	3,020,710	$	29,190	$	-		$	-		$	3,049,900	$	29,190

Political subdivisions of States,
Territories and Possessions		5,287,561		355,541		-			-			5,643,102		355,541

Corporate and other bonds
Industrial and miscellaneous		108,573,422		11,634,123		(13,216	)		-			120,194,329		11,620,907

Residential mortgage and other
asset backed securities (1)		28,163,891		617,368		(7,371	)		(111,947	)	$	28,661,941		498,050
Total	$	145,045,584	$	12,636,222	$	(20,587	)	$	(111,947	)	$	157,549,272	$	12,503,688

	December 31, 2019

	Cost or		Gross		Gross Unrealized Losses						Estimated		Net
	Amortized		Unrealized		Less than 12			More than 12			Fair		Unrealized
Category	Cost		Gains		Months			Months			Value		Gains

Fixed-Maturity Securities:
U.S. Treasury securities and
obligations of U.S. government
corporations and agencies	$	7,037,856	$	23,244	$	-		$	-		$	7,061,100	$	23,244

Political subdivisions of States,
Territories and Possessions		9,151,293		181,835		(11,316	)		-			9,321,812		170,519

Corporate and other bonds
Industrial and miscellaneous		119,874,573		5,777,624		(16,685	)		(13,473	)		125,622,039		5,747,466

Residential mortgage and other
asset backed securities (1)		26,138,633		437,841		(68,793	)		(276,451	)	$	26,231,230		92,597
Total	$	162,202,355	$	6,420,544	$	(96,794	)	$	(289,924	)	$	168,236,181	$	6,033,826

Equity Securities

The cost and estimated fair value of, and gross unrealized gains and losses on, investments in equity securities as of December 31, 2020 and 2019 are as follows:

	December 31, 2020
			Gross		Gross			Estimated
Category	Cost		Gains		Losses			Fair Value

Equity Securities:
Preferred stocks	$	18,097,942	$	853,277	$	(426,942	)	$	18,524,277
Common stocks, mutual funds,
and exchange traded funds		14,473,224		1,820,512		(404,700	)		15,889,036
Total	$	32,571,166	$	2,673,789	$	(831,642	)	$	34,413,313

Held-to-Maturity Securities

The cost or amortized cost and estimated fair value of, and unrealized gross gains and losses on, investments in held-to-maturity fixed-maturity securities as of December 31, 2020 and 2019 are summarized as follows:

	December 31, 2020

	Cost or		Gross		Gross Unrealized Losses				Estimated		Net
	Amortized		Unrealized		Less than 12		More than 12		Fair		Unrealized
Category	Cost		Gains		Months		Months		Value		Gains

Held-to-Maturity Securities:
U.S. Treasury securities	$	729,595	$	319,714	$	-	$	-	$	1,049,309	$	319,714

Political subdivisions of States,
Territories and Possessions		998,428		50,917		-		-		1,049,345		50,917

Corporate and other bonds
Industrial and miscellaneous		5,640,792		455,378		-		-		6,096,170		455,378

Total	$	7,368,815	$	826,009	$	-	$	-	$	8,194,824	$	826,009

A summary of the amortized cost and the estimated fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of December 31, 2020 and 2019 is shown below:

	December 31, 2020				December 31, 2019
	Amortized		Estimated		Amortized		Estimated
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	-	$	-	$	500,000	$	499,165
One to five years		2,598,193		2,777,936		2,099,268		2,215,640
Five to ten years		1,502,603		1,727,316		620,134		655,923
More than 10 years		3,268,019		3,689,572		606,550		754,039
Total	$	7,368,815	$	8,194,824	$	3,825,952	$	4,124,767

The Company’s net gains (losses) on investments are summarized as follows:

	Years ended
	December 31,
	2020			2019
Realized Gains (Losses)

Fixed-maturity securities:
Gross realized gains	$	1,108,159		$	11,608
Gross realized losses		(327,890	)		(134,533	)
		780,269			(122,925	)

Equity securities:
Gross realized gains		832,394			316,924
Gross realized losses		(780,245	)		(165,154	)
		52,149			151,770

Net realized gains		832,418			28,845

Unrealized Gains (Losses)

Equity Securities:
Gross gains		41,517			3,832,486
Gross losses		(217,032	)		-
		(175,515	)		3,832,486

Other Investments:
Gross gains		933,713			729,688
Gross losses		-			-
		933,713			729,688

Net unrealized gains		758,198			4,562,174

Net gains on investments	$	1,590,616		$	4,591,019

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 to evaluate the necessity of recording impairment losses for other-than-temporary declines in the estimated 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 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 based on cash flow projections. For held-to-maturity fixed-maturity securities, the amount of OTTI recorded in comprehensive income for the noncredit portion of a previous OTTI is amortized prospectively over the remaining life of the security based on timing of future estimated cash flows of the security.

OTTI losses are recorded in the consolidated statements of operations 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, 2020 and December 31, 2019, there were 16 and 39 fixed-maturity securities, respectively, that accounted for the gross unrealized losses. The Company determined that none of the unrealized losses were deemed to be OTTI for its portfolio of investments for the years ended December 31, 2020 and 2019. 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 hold the investment for a period of time sufficient to allow for an anticipated recovery of estimated fair value to the Company’s cost basis.

The Company held available-for-sale securities with unrealized losses representing declines that were considered temporary at December 31, 2020 and 2019 as follows:

	December 31, 2020
	Less than 12 months							12 months or more							Total
	Estimated					No. of		Estimated					No. of		Estimated
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses

Fixed-Maturity Securities:
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies	$	-	$	-			-	$	-	$	-			-	$	-	$	-

Political subdivisions of
States, Territories and
Possessions		-		-			-		-		-			-		-		-

Corporate and other
bonds industrial and
miscellaneous		1,006,901		(13,216	)		1		-		-			-		1,006,901		(13,216	)

Residential mortgage and other
asset backed securities		6,137,522		(7,371	)		5		3,735,732		(111,947	)		10		9,873,254		(119,318	)

Total fixed-maturity
securities	$	7,144,423	$	(20,587	)		6	$	3,735,732	$	(111,947	)		10	$	10,880,155	$	(132,534	)

	December 31, 2019
	Less than 12 months							12 months or more							Total
	Estimated					No. of		Estimated					No. of		Estimated
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses

Fixed-Maturity Securities:
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies	$	-	$	-			-	$	-	$	-			-	$	-	$	-

Political subdivisions of
States, Territories and
Possessions		3,067,428		(11,316	)		3		-		-			-		3,067,428		(11,316	)

Corporate and other
bonds industrial and
miscellaneous		3,730,478		(16,685	)		7		1,300,915		(13,473	)		3		5,031,393		(30,158	)

Residential mortgage and other
asset backed securities		5,862,636		(68,793	)		5		13,534,768		(276,451	)		21		19,397,404		(345,244	)

Total fixed-maturity
securities	$	12,660,542	$	(96,794	)		15	$	14,835,683	$	(289,924	)		24	$	27,496,225	$	(386,718	)

Fair Value Measurements

12 Months Ended

Dec. 31, 2020

Fair Value Measurements

4. Fair Value Measurements

Note 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 estimate the fair value of 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 following table presents information about the Company’s investments that are measured at fair value on a recurring basis at December 31, 2020 and 2019 indicating the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

	December 31, 2020
	Level 1		Level 2		Level 3		Total

Fixed-maturity securities available-for-sale
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies	$	3,049,900	$	-	$	-	$	3,049,900

Political subdivisions of
States, Territories and
Possessions		-		5,643,102		-		5,643,102

Corporate and other
bonds industrial and
miscellaneous		118,123,890		2,070,439		-		120,194,329

Residential mortgage and other asset backed securities		-		28,661,941		-		28,661,941
Total fixed maturities		121,173,790		36,375,482		-		157,549,272
Equity securities		34,413,313		-		-		34,413,313
Total investments	$	155,587,103	$	36,375,482	$	-	$	191,962,585

The following table sets forth the Company’s investment in a hedge fund measured at Net Asset Value (“NAV”) per share as of December 31, 2020 and 2019. The Company measures this investment at fair value on a recurring basis. Fair value using NAV per share is as follows as of the dates indicated:

Category	December 31, 2020		December 31, 2019

Other Investments:
Hedge fund	$	3,518,626	$	2,584,913
Total	$	3,518,626	$	2,584,913

- 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

Fair Value of Financial Instruments and Real Estate

12 Months Ended

Dec. 31, 2020

Fair Value of Financial Instruments and Real Estate

5. Fair Value of Financial Instruments and Real Estate

Note 5 - Fair Value of Financial Instruments and Real Estate

The Company uses the following methods and assumptions in estimating the fair value of financial instruments and real estate:

Equity securities, available-for-sale fixed income securities and other investments: Fair value disclosures for these investments are included in “Note 3 - Investments” and “Note 4 – Fair Value Measurements”.

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 estimated fair value was based on an appraisal prepared using the sales comparison approach, and accordingly the real estate is a Level 3 asset under the fair value hierarchy.

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

The estimated fair values of the Company’s financial instruments and real estate as of December 31, 2020 and 2019 are as follows:

	December 31, 2020				December 31, 2019
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value

Fixed-maturity securities-held-to maturity	$	7,368,815	$	8,194,824	$	3,825,952	$	4,124,767
Cash and cash equivalents	$	19,463,742	$	19,463,742	$	32,391,485	$	32,391,485
Premiums receivable, net	$	14,020,716	$	14,020,716	$	12,706,411	$	12,706,411
Reinsurance receivables, net	$	45,460,729	$	45,460,729	$	40,750,538	$	40,750,538
Real estate, net of accumulated depreciation	$	2,219,999	$	2,705,000	$	2,292,743	$	2,705,000
Reinsurance balances payable	$	6,979,735	$	6,979,735	$	11,714,724	$	11,714,724

Intangibles Assets

12 Months Ended

Dec. 31, 2020

Intangibles Assets

6. Intangibles Assets

Note 6 - Intangible Assets

Intangible assets consist of finite and indefinite life assets. Finite life intangible assets include customer and producer relationships and other identifiable intangibles. KICO’s insurance company license is considered an indefinite life intangible asset subject to annual impairment testing. All identified intangible assets of finite useful life were fully amortized as of December 31, 2020 and 2019.

The components of intangible assets and their useful lives, accumulated amortization, and net carrying value as of December 31, 2020 and 2019 are summarized as follows:

			December 31, 2020						December 31, 2019
	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		3,400,000		-		3,400,000		3,400,000		-
Other identifiable
intangibles		7		950,000		950,000		-		950,000		950,000		-
Total			$	4,850,000	$	4,350,000	$	500,000	$	4,850,000	$	4,350,000	$	500,000

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 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 for the years ended December 31, 2020 and 2019.

The Company recorded amortization expense related to intangible assets of $-0- and $170,000, for the years ended December 31, 2020 and 2019, respectively.

Reinsurance

12 Months Ended

Dec. 31, 2020

Reinsurance

7. Reinsurance

Note 7 - Reinsurance

Through June 30, 2019, the Company’s quota share reinsurance treaties were on a July 1 through June 30 fiscal year basis. The Company’s quota share reinsurance treaties in effect during the year ended December 31, 2019 for its personal lines business were covered through June 30, 2019 under a treaty covering a two-year period from July 1, 2017 through June 30, 2019 (“2017/2019 Treaty”). The treaty in effect during the year ended December 31, 2019 was covered through June 30, 2019 under the July 1, 2018 through June 30, 2019 treaty year (“2018/2019 Treaty Year”). Effective July 1, 2019, the 2017/2019 Treaty and the commercial umbrella treaty expired on a run-off basis; these treaties were not renewed. Effective December 15, 2019, the Company entered into a quota share reinsurance treaty for its personal lines business, which primarily consists of homeowners’ policies, covering the period from December 15, 2019 through December 30, 2020 (“2019/2020 Treaty”). Effective December 31, 2020 the 2019/2020 Treaty expired on a cut off basis; this treaty was not renewed. The Company entered into new excess of loss and catastrophe reinsurance treaties effective July 1, 2020. Material terms for reinsurance treaties in effect for the treaty years shown below are as follows:

	Treaty Year
	December 15, 2019			July 1, 2019	July 1, 2018
	to			to	to
Line of Business	December 30, 2020			December 14, 2019	June 30, 2019

Personal Lines:
Homeowners, dwelling fire and
and canine legal liability
Quota share treaty:
Percent ceded		25	%	None		10	%

	Treaty Year
	July 1, 2020			July 1, 2019			July 1, 2018
	to			to			to
Line of Business	June 30, 2021			June 30, 2020			June 30, 2019

Personal Lines:

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		95	%		100	%		100	%
Risk retained	$	300,000		$	100,000		$	100,000
Total reinsurance coverage per occurrence	$	4,700,000		$	4,900,000		$	4,900,000
Losses per occurrence subject to quota share reinsurance coverage	$	5,000,000		$	5,000,000		$	5,000,000
Expiration date	June 30, 2021			June 30, 2020			June 30, 2019

Commercial Lines:
General liability commercial policies
Quota share treaty	None			None			None
Risk retained	$	750,000		$	750,000		$	750,000
Excess of loss coverage above risk retained	$	3,750,000		$	3,750,000		$	3,750,000
	in excess of			in excess of			in excess of
	$	750,000		$	750,000		$	750,000
Total reinsurance coverage per occurrence	$	3,750,000		$	3,750,000		$	3,750,000
Losses per occurrence subject to reinsurance coverage	$	4,500,000		$	4,500,000		$	4,500,000

Commercial Umbrella
Quota share treaty:	None			None
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, 2019

Approximate reinsurance recoverables on unpaid and paid losses by reinsurer at December 31, 2020 and 2019 are as follows:

	Unpaid		Paid
($ in thousands)	Losses		Losses		Total		Security
December 31, 2020
Cavello Bay Reinsurance Limited (1)	$	2,850	$	3,405	$	6,255	$	10,086	(2)
Swiss Reinsurance America Corporation		7,778		5,840		13,618		-
Hanover Rueck SE		4,909		2,897		7,806		-
Allied World Assurance Company		2,019		1,761		3,780		-
Others		2,598		884		3,482		732	(3)
Total	$	20,154	$	14,787	$	34,941	$	10,818

December 31, 2019
Cavello Bay Reinsurance Limited (1)	$	4,036	$	2,427	$	6,463	$	5,995	(2)
Swiss Reinsurance America Corporation		4,418		1,336		5,754		-
Hanover Rueck SE		3,156		522		3,678		-
SCOR Reinsurance Company		394		458		852		-
Allied World Assurance Company		760		170		930		-
Others		2,964		471		3,435		-
Total	$	15,728	$	5,385	$	21,112	$	5,995

The Company’s estimated ultimate treaty year loss ratios (the “Loss Ratio(s)”) for treaties in effect during the year ended December 31, 2020 are attributable to contracts under the 2019/2020 Treaty. The Loss Ratios for treaties in effect for the year ended December 31, 2019 are attributable to contracts under the 2019/2020 Treaty and 2017/2019 Treaty for the 2018/2019 Treaty Year, which expired on June 30, 2019 and was not renewed.

Under the 2019/2020 Treaty and the 2017/2019 Treaty for the 2018/2019 Treaty Year, the Company received an upfront fixed provisional ceding commission rate that is not subject to a sliding scale contingent adjustment. In addition to the treaties that were in effect during the years ended December 31, 2020 and 2019, the Loss Ratios from prior years’ treaties are subject to change as incurred losses from those periods increase or decrease, resulting in an increase or decrease in the commission rate and contingent ceding commissions earned.

Ceding commission revenue consists of the following:

	Years ended
	December 31,
	2020		2019

Provisional ceding commissions earned	$	14,119,180	$	5,446,370
Contingent ceding commissions earned		83,173		(795,519	)
	$	14,202,353	$	4,650,851

Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

12 Months Ended

Dec. 31, 2020

Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

8. Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

Note 8 - Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

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

	Years ended
	December 31,
	2020			2019

Net deferred policy acquisition costs, net of ceding
commission revenue, beginning of year	$	12,898,980		$	15,221,060

Cost incurred and deferred:
Commissions and brokerage		32,279,848			32,541,094
Other underwriting and policy acquisition costs		8,526,003			9,423,340
Ceding commission revenue		(13,680,042	)		(3,754,889	)
Net deferred policy acquisition costs		27,125,809			38,209,545
Return of deferred ceding commission revenue
due to reduction of quota share		7,202,741			-
Additional deferred ceding commission revenue
due to inception of quota share		-			(6,740,202	)
Amortization		(27,178,534	)		(33,791,423	)
		7,150,016			(2,322,080	)

Net deferred policy acquisition costs, net of ceding
commission revenue, end of year	$	20,048,996		$	12,898,980

Debt

12 Months Ended

Dec. 31, 2020

Debt

9. Debt

Note 9 – Debt

Federal Home Loan Bank

In July 2017, KICO became a member of, and invested in, the Federal Home Loan Bank of New York (“FHLBNY”). The aggregate fair value of the investment in dividend bearing common stock was $11,200 and $15,180 as of December 31, 2020 and 2019, respectively. FHLBNY members have access to a variety of flexible, low cost funding through FHLBNY’s credit products, enabling members to customize advances, which are to be fully collateralized. Eligible collateral to pledge to FHLBNY includes residential and commercial mortgage backed securities, along with U.S. Treasury and agency securities. See Note 3 – Investments for eligible collateral held in a designated custodian account available for future advances.Advances are limited to 5% of KICO’s net admitted assets as of the previous quarter and are due and payable within one year of borrowing. The maximum allowable advance as of December 31, 2020 was approximately $12,066,000. Advances are limited to 85% of the amount of available collateral, which was approximately $9,682,000 as of December 31, 2020. There were no borrowings under this facility during the years ended December 31, 2020 and 2019.

Long-term Debt

On December 19, 2017, the Company issued $30 million of its 5.50% Senior Unsecured Notes due December 30, 2022 (the “Notes”) in an underwritten public offering. Interest is payable semi-annually in arrears on June 30 and December 30 of each year, which began on June 30, 2018 at the rate of 5.50% per annum. The net proceeds of the issuance were $29,121,630, net of discount of $163,200 and transaction costs of $715,170, for an effective yield of 5.67% per annum. The balance of long-term debt as of December 31, 2020 and 2019 is as follows:

	December 31,			December 31,
	2020			2019

5.50% Senior Unsecured Notes	$	30,000,000		$	30,000,000
Discount		(64,883	)		(97,325	)
Issuance costs		(287,506	)		(431,244	)
Long-term debt, net	$	29,647,611		$	29,471,431

Property and Equipment

12 Months Ended

Dec. 31, 2020

Property and Equipment

10. Property and Equipment

Note 10 - Property and Equipment

The components of property and equipment are summarized as follows:

			Accumulated
	Cost		Depreciation			Net

December 31, 2020
Building	$	2,344,188	$	(760,302	)	$	1,583,886
Land		652,437		-			652,437
Furniture office equipment		802,325		(715,819	)		86,506
Leasehold improvements		18,996		(2,712	)		16,284
Computer equipment and software		14,187,456		(8,491,325	)		5,696,131
Automobile		99,352		(51,473	)		47,879
Total	$	18,104,754	$	(10,021,631	)	$	8,083,123

December 31, 2019
Building	$	2,344,188	$	(663,200	)	$	1,680,988
Land		652,437		-			652,437
Furniture office equipment		802,325		(656,204	)		146,121
Leasehold improvements		18,996		(226	)		18,770
Computer equipment and software		10,861,385		(5,813,308	)		5,048,077
Automobile		99,352		(25,109	)		74,243
Total	$	14,778,683	$	(7,158,047	)	$	7,620,636

Property and Casualty Insurance Activity

12 Months Ended

Dec. 31, 2020

Property and Casualty Insurance Activity

11. Property and Casualty Insurance Activity

Note 11 - Property and Casualty Insurance Activity

Premiums written, ceded and earned are as follows:

	Direct			Assumed			Ceded			Net

Year ended December 31, 2020
Premiums written	$	169,317,904		$	-		$	(42,255,383	)	$	127,062,521
Change in unearned premiums		373,966			-			(19,355,858	)		(18,981,892	)
Premiums earned	$	169,691,870		$	-		$	(61,611,241	)	$	108,080,629

Year ended December 31, 2019
Premiums written	$	171,214,091		$	939		$	(45,635,899	)	$	125,579,131
Change in unearned premiums		(11,350,864	)		(243	)		13,395,418			2,044,311
Premiums earned	$	159,863,227		$	696		$	(32,240,481	)	$	127,623,442

The components of the liability for loss and LAE expenses and related reinsurance receivables as of December 31, 2020 and 2019 are as follows:

	Gross		Reinsurance
	Liability		Receivables
December 31, 2020
Case-basis reserves	$	47,657,198	$	15,432,347
Loss adjustment expenses		13,610,284		1,882,419
IBNR reserves		21,533,746		2,839,486
Recoverable on unpaid losses				20,154,252
Recoverable on paid losses		-		14,787,037
Total loss and loss adjustment expenses	$	82,801,228		34,941,289
Unearned premiums				282,131
Receivables - reinsurance contracts				10,237,309
Total reinsurance receivables			$	45,460,729

December 31, 2019
Case-basis reserves	$	48,688,643	$	12,894,469
Loss adjustment expenses		12,606,236		1,416,686
IBNR reserves		19,203,732		1,417,070
Recoverable on unpaid losses				15,728,225
Recoverable on paid losses		-		5,384,325
Total loss and loss adjustment expenses	$	80,498,611		21,112,550
Unearned premiums				19,637,988
Total reinsurance receivables			$	40,750,538

Incurred losses and LAE are net of reinsurance recoveries under reinsurance contracts of $27,951,005 and $12,769,015 for the years ended December 31, 2020 and 2019, respectively.

Prior year incurred loss and LAE development is based upon estimates by line of business and accident year. Prior year loss and LAE development incurred during the years ended December 31, 2020 and 2019 was $41,165 unfavorable and $11,138,023 unfavorable, respectively. During the year ended December 31, 2019, the Company increased case reserves for certain older open liability claims, which primarily affected the ultimate loss projections for commercial lines business. This was in response to management’s detailed review of open liability claims that resulted in new assessments of carried case and incurred but not reported (“IBNR”) reserve levels, giving consideration to both 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 claim 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 is critical to the review of appropriate IBNR reserves and 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 period’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 periods. Several methods are used, varying by line of business and accident year, in order to select the estimated period-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 may 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.

Frequency / Severity Based Methods – historical measurements of claim frequency and average paid claim size (severity) are reviewed for more mature accident years where a majority of claims have been reported and/or closed. These historical averages are trended forward to more recent periods in order to estimate ultimate losses for newer accident years that are not yet fully developed. These methods are useful for lines of business with slow and/or volatile loss development patterns, such as liability lines where information pertaining to individual cases may not be completely known for many years. The claim frequency and severity information for older periods can then be used as reasonable measures for developing a range of estimates for more recent immature periods.

Management’s best estimate of required reserves is generally based on an average of the methods above, with appropriate weighting of 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.

Three 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, the loss development factor selections used in the loss development methods, and the loss severity assumptions used in the frequency / severity method 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 loss severity assumptions used in the frequency / severity method are determined by reviewing historical average claim severity for older more mature accident periods, trended forward to less mature accident periods.

The Company is not aware of any claim trends that have emerged or that would cause future adverse development that have not already been contemplated in setting current carried reserves levels.

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, 2017 and prior is limited, although there remains the possibility of adverse development on reported claims (“case development” IBNR). In certain rare circumstances states have retroactively revised a statute of limitations. The Company is not aware of any such effort that would have a material impact on the Company’s results.

The following is information about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative reported claims by accident year and total IBNR reserves as of December 31, 2020 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, 2011 to December 31, 2019 is presented as supplementary unaudited information.

All Lines of Business
*(in thousands, except reported claims data)*
																					As of
	Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance																				December 31, 2020
	For the Years Ended December 31,																				IBNR		Cumulative Number of Reported Claims by Accident Year
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
	(Unaudited 2011 - 2019)

2011	$	7,603	$	7,678	$	8,618	$	9,440	$	9,198	$	9,066	$	9,144	$	9,171	$	9,127	$	9,128	$	-		1,914
2012				9,539		9,344		10,278		10,382		10,582		10,790		10,791		11,015		10,885		13		4,704	(1)
2013						10,728		9,745		9,424		9,621		10,061		10,089		10,607		10,495		5		1,563
2014								14,193		14,260		14,218		14,564		15,023		16,381		16,428		257		2,138
2015										22,340		21,994		22,148		22,491		23,386		23,291		312		2,556
2016												26,062		24,941		24,789		27,887		27,966		461		2,878
2017														31,605		32,169		35,304		36,160		654		3,391
2018																54,455		56,351		58,441		1,928		4,208
2019																		75,092		72,368		9,547		4,442
2020																				63,083		11,421		5,596
Total																			$	328,244

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:

Reconciliation of the Disclosure of Incurred and Paid Loss Development
to the Liability for Loss and LAE Reserves

	As of
*(in thousands)*	December 31, 2020
Liabilities for allocated loss and loss adjustment expenses, net of reinsurance	$	60,047
Total reinsurance recoverable on unpaid losses		20,154
Unallocated loss adjustment expenses		2,600
Total gross liability for loss and LAE reserves	$	82,801

Stockholders' Equity

12 Months Ended

Dec. 31, 2020

Stockholders' Equity

12. Stockholders' Equity

Note 12 – Stockholders’ Equity

Dividends Declared

Dividends declared and paid on Common Stock were $1,957,142 and $3,501,366 for the years ended December 31, 2020 and 2019, respectively. The Company announced on February 1, 2021 that its Board of Directors approved a quarterly dividend of $0.04 per share payable in cash on March 15, 2021 to stockholders of record as of February 26, 2021 (see Note 19 - Subsequent Events).

Stock Options

Effective August 12, 2014, the Company adopted the 2014 Equity Participation Plan (the “2014 Plan”) pursuant to which a maximum of 700,000 shares of Common Stock of the Company were initially authorized to be issued pursuant to the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock and stock bonuses. Incentive stock options granted under the 2014 Plan expire no later than ten years from the date of grant (except no later than five years for a grant to a 10% stockholder). Non-statutory stock options granted under the 2014 Plan expire no later than ten years from the date of grant. The Board of Directors or the Compensation Committee determines the vesting provisions for stock awards granted under the 2014 Plan, subject to the provisions of the 2014 Plan. On August 5, 2020, the Company’s stockholders approved amendments to the 2014 Plan, including an increase in the maximum number shares of Common Stock of the Company that are authorized to be issued pursuant to the 2014 Plan to 1,400,000.

The results of operations for the years ended December 31, 2020 and 2019 include stock-based compensation expense for stock options totaling approximately $68,000 and $30,000, respectively. Stock-based compensation expense related to stock options for the years ended December 31, 2020 and 2019 is net of estimated forfeitures of approximately 16% and 17%, respectively. Such amounts have been included in the consolidated statements of operations and comprehensive income within other operating expenses.

The weighted average estimated fair value of stock options granted during the years ended December 31, 2020 and 2019 was $1.66 per share and $1.91 per share, respectively. 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,
	2020			2019

Dividend Yield		3.14	%		2.87	%
Volatility		37.69	%		36.11	%
Risk-Free Interest Rate		1.40	%		1.61	%
Expected Life		2.75 years		3.25 years

The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2020 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 $6.65 closing price of the Company’s Common Stock on December 31, 2020. No options were exercised during the year ended December 31, 2020. The total intrinsic value of options forfeited during the year ended December 31, 2020 was $-0-, determined as of the date of forfeiture.

Participants in the 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”), or by exchanging a number of shares owned for a period of greater than one year having a fair market value equal to the exercise price of the option being exercised (“Share Exchange”). The Company received cash proceeds of $23,550 from the exercise of options for the purchase of 3,000 shares of common stock during the year ended December 31, 2019.

As of December 31, 2020, the estimated fair value of unamortized compensation cost related to unvested stock option awards was approximately $64,000. Unamortized compensation cost as of December 31, 2020 is expected to be recognized over a remaining weighted-average vesting period of 1.27 years.

As of December 31, 2020, there were 843,316 shares reserved for grants under the 2014 Plan.

Restricted Stock Awards

A summary of the restricted Common Stock activity under the Company’s 2014 Plan for the year ended December 31, 2020 is as follows:

Restricted Stock Awards	Shares			Weighted Average Grant Date Fair Value per Share		Aggregate Fair Value

Balance at January 1, 2020		213,929		$	16.51	$	3,554,174

Granted		242,974		$	7.66	$	1,860,525
Vested		(66,673	)	$	16.97	$	(1,331,254	)
Forfeited		(19,266	)	$	15.18	$	(292,455	)

Balance at December 31, 2020		370,964		$	9.96	$	3,990,999

Statutory Financial Information and Accounting Policies

12 Months Ended

Dec. 31, 2020

Statutory Financial Information and Accounting Policies

13. Statutory Financial Information and Accounting Policies

Note 13 - Statutory Financial Information and Accounting Policies

For regulatory purposes, KICO prepares its statutory basis financial based on statutory accounting principles prescribed or permitted by the New York State Department of Financial Services (the “DFS”). The DFS requires insurance companies domiciled in New York State to prepare their statutory financial statements in accordance with Statements of Statutory Accounting Principles as promulgated by the National Association of Insurance Commissioners (the “NAIC”), subject to any deviations prescribed or permitted by the DFS. These statutory accounting practices differ substantially from GAAP used by most business entities. The more significant 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, 2020 and 2019, KICO paid dividends to Kingstone of $6,000,000 and $7,000,000, respectively. On February 18, 2021, KICO’s Board of Directors approved a cash dividend of $1,000,000 to Kingstone, which was paid on February 25, 2021. For the years ended December 31, 2020 and 2019, KICO recorded statutory basis net loss of $1,724,180 and $4,519,183, respectively. At December 31, 2020 and 2019, KICO reported statutory basis surplus as regards policyholders of $85,595,339 and $93,844,197, respectively, as filed with the DFS.

Statutory Surplus

In December 2019, the Company made a surplus contribution of $3,256,335 to KICO. See Note 9 – Debt for further detail regarding this contribution.

Risk Based Capital

12 Months Ended

Dec. 31, 2020

Risk Based Capital

14. Risk Based Capital

Note 14 - Risk Based Capital

State insurance departments impose risk-based capital (“RBC”) requirements on insurance enterprises. The RBC Model serves as a benchmark for the regulation of insurance companies by state insurance regulators. RBC provides for targeted surplus levels based on formulas, which specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk, and are set forth in the RBC requirements. Such formulas focus on four general types of risk: (a) the risk with respect to the company’s assets (asset or default risk); (b) the risk of default on amounts due from reinsurers, policyholders, or other creditors (credit risk); (c) the risk of underestimating liabilities from business already written or inadequately pricing business to be written in the coming year (underwriting risk); and, (d) the risk associated with items such as excessive premium growth, contingent liabilities, and other items not reflected on the balance sheet (off-balance sheet risk). The amount determined under such formulas is called the authorized control level RBC (“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 was above the ACL for each of the last two years and is in compliance with RBC requirements as of December 31, 2020 and 2019.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Taxes

15. Income Taxes

Note 15 – Income Taxes

The Company files a consolidated U.S. federal income tax return that includes all wholly owned subsidiaries. State tax returns are filed on a consolidated or separate 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 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,	2020			2019

Current federal income tax expense (benefit)	$	(5,366,759	)	$	174,779
Current state income tax expense (benefit)		(2,736	)		238
Deferred federal and state income tax expense (benefit)		3,109,295			(1,991,208	)

Income tax benefit	$	(2,260,200	)	$	(1,816,191	)

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

Years ended December 31,	2020					2019
Computed expected tax (benefit) expense	$	(270,440	)	21.0	%	$	(1,634,334	)	21.0	%
State taxes, net of federal benefit		(233,752	)	18.2			(247,909	)	3.2
State valuation allowance		292,087		(22.7	)		261,573		(3.4	)
Benefit of higher tax brackets in NOL carryback - current year		(754,829	)	58.6			-		-
Benefit of higher tax brackets in NOL carryback - prior year		(1,274,465	)	99.0			-		-
Permanent differences
Dividends received deduction		(118,113	)	9.2			(97,631	)	1.3
Non-taxable investment income		(55,752	)	4.3			(39,901	)	0.5
Excess benefit from stock-based compensation		-		-			184		-
Stock-based compensation		125,923		(9.8	)		80,453		(1.0	)
Other permanent differences		46,108		(3.6	)		(15,961	)	0.2
Prior year tax matters		(77,625	)	6.0			(91,748	)	1.2
Other		60,658		(4.7	)		(30,917	)	0.3
Income tax benefit, as reported	$	(2,260,200	)	175.5	%	$	(1,816,191	)	23.3	%

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

	December 31,			December 31,
Type of NOL	2020			2019			Expiration

Federal only, current year (A)		1,200,056			1,517,866
NOL carried back		(1,200,056	)		(1,517,866	)
Federal only, current year	$	-		$	-

State only (B)		1,815,546			1,616,568		December 31, 2040
Valuation allowance		(1,815,546	)		(1,548,187	)
State only, net of valuation allowance		-			68,381

Total deferred tax asset from net operating loss carryovers	$	-		$	68,381

The table below reconciles the changes in net deferred income tax assets (liabilities) to the deferred income tax provision for the year ended December 31, 2020:

Decrease in net deferred income tax assets	$	4,467,965
Deferred tax expense allocated to other comprehensive income		1,358,670
Deferred income tax expense	$	3,109,295

Employee Benefit Plans

12 Months Ended

Dec. 31, 2020

Employee Benefit Plans

16. Employee Benefit Plans

Note 16 - Employee Benefit Plans

Employee Bonus Plan

In November 2018, the Company’s Board of Directors approved a new discretionary employee bonus plan (“Bonus Plan”) to replace the existing Profit Sharing Plan to be effective as of January 1, 2019 for the year ended December 31, 2019. Eligible employees were eligible to receive a target bonus rate of between 12% and 30% of base salary depending on their position. The target bonus rate was subject to adjustment depending on annual performance evaluation scores. The Bonus Plan was funded through a point system whereby up to 60 points were funded by a target return on investment (“Target ROE”) sliding scale and up to 40 points were funded by achieving various annual corporate goals as approved in advance by the Company’s Board of Directors. A maximum of 60 points could have been achieved with a Target ROE of 14%. The bonus was decreased by six points for each percentage point decrease in Target ROE. The minimum of six points could have been achieved with Target ROE of 5%. The Company incurred approximately $457,000 of expense for the year ended December 31, 2019, related to the Bonus Plan related to achieving certain annual corporate goals, which is primarily recorded in other underwriting expenses on the accompanying consolidated statements of operations and comprehensive income. The Bonus Plan was only in effect for the year ended December 31, 2019.

In December of 2020, management approved discretionary bonuses totaling approximately $516,000 of expense for the year ended December 31, 2020, which is primarily recorded in other underwriting expenses on the accompanying consolidated statements of operations and comprehensive income.

401 (k) Plan

The Company maintains a salary reduction plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for its qualified employees. The Company matches 100% of each participant’s contribution up to 4% of the participant’s eligible contribution. The Company incurred approximately $309,000 and $305,000 of expense for the years ended December 31, 2020 and 2019, respectively, related to the 401(k) Plan, which is recorded in other operating expenses on the accompanying consolidated statements of operations and comprehensive income.

Deferred Compensation Plan

On June 18, 2018, the Company adopted the Kingstone Companies, Inc. Deferred Compensation Plan (the "Deferred Compensation Plan"). The Deferred Compensation Plan is offered to a select group (“Participants”), consisting of management and highly compensated employees as a method of recognizing and retaining such Participants. The Deferred Compensation Plan provides for eligible Participants to elect to defer up to 75% of their base compensation and up to 100% of bonuses and other compensation and to have such deferred amounts deemed to be invested in specified investment options. In addition to the Participant deferrals, the Company may choose to make matching contributions to some or all of the Participants in the Deferred Compensation Plan to the extent the Participant did not receive the maximum matching or non-elective contributions permissible under the Company’s 401(k) Plan due to limitations under the Internal Revenue Code or the 401(k) Plan. Participants may elect to receive payment of their account balances in a single cash payment or in annual installments for a period of up to ten years. The deferred compensation liability as of December 31, 2020 and 2019 amounted to $763,789 and $599,274, respectively, and is recorded in accounts payable, accrued expenses and other liabilities in the accompanying consolidated balance sheets. The Company made voluntary contributions of $4,473 and $5,399 for the years ended December 31, 2020 and 2019, respectively, which are recorded in other operating expenses in the accompanying consolidated statements of operations and comprehensive income.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies

17. Commitments and Contingencies

Note 17 - Commitments and Contingencies

Litigation

From time to time, the Company is involved in various legal proceedings in the ordinary course of business. For example, to the extent a claim is 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.

On June 12, 2019, Phillip Woolgar filed a suit naming the Company and certain present or former officers and directors as defendants in a putative class action captioned Woolgar v. Kingstone Companies et al., 19 cv 05500 (S.D.N.Y.), asserting claims under Section 10(b) of the Exchange Act and SEC Rule 10b-5 promulgated thereunder and Section 20(a) of the Exchange Act. Plaintiff sought to represent a class of persons or entities that purchased Kingstone securities between March 14, 2018, and April 29, 2019, and alleged violations of the federal securities law in connection with the Company’s April 29, 2019 announcement regarding losses related to winter catastrophe events. The lawsuit alleged that the Company failed to disclose that it did not adequately follow industry best practices related to claims handling and thus did not record sufficient claim reserves, and that as a result, Defendants’ positive statements about the Company’s business, operations and prospects misled investors. Plaintiff sought, among other things, an undetermined amount of money damages. On August 10, 2020, the court granted the Company’s motion to dismiss the amended complaint in the suit. The court permitted plaintiff to amend the complaint to attempt to cure the deficiencies identified by the court in its opinion (to the extent plaintiff had a good faith basis to do so) by September 11, 2020. Plaintiff failed to replead by the September 11, 2020 deadline. On September 16, 2020, the court issued an order closing the case. Plaintiff did not file an appeal, rendering the dismissal final and the Company considers the matter closed.

Office Leases

The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease. See Note 2 - Accounting Policies for additional information regarding the accounting for leases.

The Company is a party to a non-cancellable operating lease, dated March 27, 2015, for its office facility for KICO located in Valley Stream, New York expiring March 31, 2024.

On July 8, 2019, the Company entered into a lease agreement for an additional office facility for Cosi located in Valley Stream, New York under a non-cancelable operating lease. The lease has a term of seven years and two months expiring December 31, 2026.

Additional information regarding the Company’s office operating leases is as follows:

	Year ended			Year ended
Lease cost	December 31, 2020			December 31, 2019
Operating leases	$	245,188		$	165,368
Short-term leases		-			-
Total lease cost (1)	$	245,188		$	165,368

Other information on operating leases
Cash payments included in the measurement of lease
liability reported in operating cash flows	$	255,626		$	169,861
Discount rate		5.50	%		5.50	%
Remaining lease term in years	4.94 years			5.88 years

The following table presents the contractual maturities of the Company’s lease liabilities as of December 31, 2020:

For the Year
Ending
December 31,	Total
2021		264,571
2022		273,831
2023		283,415
2024		140,739
2025		94,799
Thereafter		98,117
Total undiscounted lease payments		1,155,472
Less: present value adjustment		187,003
Operating lease liability	$	968,469

Pursuant to the Amended Employment Agreement, in January 2020, Mr. Goldstein received a grant of 157,431 shares of restricted stock, under the terms of the Company’s 2014 Plan determined by dividing $1,250,000 by the fair market value of the Company’s Common Stock on the date of grant. This 2020 grant will become vested with respect to one-third of the award on each of the first and second anniversaries of the grant date and on December 31, 2022 based on the continued provision of services through the applicable vesting date. Also pursuant to the Amended Employment Agreement, Mr. Goldstein will be entitled to receive a grant, under the terms of the 2014 Plan, during January 2021, of a number of shares of restricted stock determined by dividing $1,500,000 by the fair market value of the Company’s Common Stock on the date of grant. The January 2021 grant will become vested with respect to one-half of the award on each of the first anniversary of the grant date and on December 31, 2022 based on the continued provision of services through the applicable vesting date. Further, pursuant to the Amended Employment Agreement, Mr. Goldstein is entitled to receive a grant, under the terms of the 2014 Plan, during each of 2020, 2021 and 2022, of a number of shares of restricted stock determined by dividing $136,500 by the fair market value of the Company’s Common Stock on the date of grant. In January 2020, Mr. Goldstein was granted 17,191 shares of restricted stock pursuant to this provision. This grant will become vested with respect to one-third of the award on each of the first and second anniversaries of the grant date and on December 31, 2022 based on the continued provision of services through the applicable vesting date. The 2021 grant will become vested with respect to one-half of the award on each of the first anniversary of the grant date and on December 31, 2022 based on the continued provision of services through the applicable vesting date. The 2022 grant will become vested on December 31, 2022 based on the continued provision of services through such date.

Meryl Golden, Chief Operating Officer

On September 16, 2019, the Company and Meryl Golden entered into an employment agreement (the “Golden Employment Agreement”) pursuant to which Ms. Golden serves as the Company’s Chief Operating Officer. Ms. Golden also serves KICO’s Chief Operating Officer. The Golden Employment Agreement became effective as of September 25, 2019 (amended on December 24, 2020) and now expires on December 31, 2022.

Pursuant to the Golden Employment Agreement, Ms. Golden is entitled to receive an annual salary of $500,000. The Golden Employment also provides for the grant on the effective date of a five year option for the purchase of 50,000 shares of the Company’s Common Stock pursuant to the 2014 Plan. The options granted vest in four equal installments, with the first installment vesting on the grant date, and the remaining installments vesting on the first, second, and third anniversaries of the grant date, subject to the terms of the stock option agreement between the Company and Ms. Golden. In January 2021, pursuant to the Golden Employment Agreement as amended, Ms. Golden was granted 30,000 shares of restricted Common Stock pursuant to the 2014 Plan and will be entitled to receive in January 2022 an additional grant of 30,000 shares of restricted Common Stock pursuant to the 2014 Plan. Each such grant vests in three equal installments on each of the first, second and third anniversaries of the grant date.

Dale A. Thatcher

Effective July 19, 2019 (the “Separation Date”), Dale A. Thatcher retired and resigned his positions as Chief Executive Officer and President of the Company and KICO. At such time, he also resigned his positions on the Board of Directors of each of the Company and KICO. Effective upon Mr. Thatcher’s separation from employment, the Board appointed Barry B. Goldstein, former Chief Executive Officer and Executive Chairman of the Board of Directors, to the position of Chief Executive Officer and President of each of the Company and KICO. Mr. Goldstein previously served as Chief Executive Officer and President of the Company from March 2001 through December 31, 2018, and as Chief Executive Officer and President of KICO from January 2012 through December 31, 2018.

In connection with his separation from employment, each of the Company and KICO entered into an Agreement and General Release (the “Separation Agreement”) with Mr. Thatcher. Pursuant to the Separation Agreement, the Company and KICO shall collectively provide the following payments and benefits to Mr. Thatcher in full satisfaction of all payments and benefits and other amounts due to him under the terms of the existing employment agreements upon his separation from employment: (i) $381,111 (representing the amount of base salary he would have received had he remained employed through March 31, 2020), (ii) $5,000 in full satisfaction for any bonus payments payable under the existing employment agreements, (iii) continuing group health coverage commencing on the Separation Date and ending on March 31, 2020, and (iv) continued vesting of all stock awards previously granted to Mr. Thatcher in his capacity as an executive officer but which were unvested as of the Separation Date (the “Shares”) (Mr. Thatcher shall not be entitled to any further grants of stock awards after the Separation Date). Effective January 27, 2021, the Company entered into an agreement (the “Relinquishment Agreement”) with Mr. Thatcher. Pursuant to the Relinquishment Agreement, Mr. Thatcher relinquished his right to receive 14,077 unissued Shares which vested on January 1, 2021, the right to receive 11,905 Shares which were scheduled to vest on March 14, 2021 and the right to receive 14,076 Shares which were scheduled to vest on January 1, 2022 in full consideration of the payment by the Company of an aggregate of $280,406.

In addition, the Company and KICO agreed to provide Mr. Thatcher with a severance payment of $20,000 in consideration for a release. Pursuant to the Separation Agreement, Mr. Thatcher agreed that, for a period of three years following the Separation Date, he shall not accept any operating executive role with another property and casualty insurance company.

COVID-19

The outbreak of the coronavirus, also known as "COVID-19", has spread across the globe and is impacting worldwide economic activity. Conditions surrounding the coronavirus continue to rapidly evolve and government authorities have implemented emergency measures to mitigate the spread of the virus. The outbreak and the related mitigation measures have had and will continue to have a material adverse impact on global economic conditions as well as on the Company's business activities. The extent to which COVID-19 may impact the Company's business activities will depend on future developments, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions, business disruptions, and the effectiveness of actions taken in the United States and other countries to contain and treat the disease. These events are highly uncertain and, as such, the Company cannot determine their financial impact at this time. No adjustments have been made to the amounts reported in these consolidated financial statements as a result of this matter.

Earnings Per Common Share

12 Months Ended

Dec. 31, 2020

Earnings (loss) per common share:

18. Earnings Per Common Share

Note 18 - Earnings Per Common Share

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

The computation of diluted earnings(loss) per common share excludes outstanding options in periods where the exercise of such options would be anti-dilutive. For the years ended December 31, 2020 and 2019, no options were included in the computation of diluted earnings (loss) per common share as they would have been anti-dilutive for the relevant periods and, as a result, the weighted average number of shares of Common Stock 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 (loss) per common share follows:

	Years ended
	December 31,
	2020		2019

Weighted average number of shares outstanding		10,721,342		10,773,623

Effect of dilutive securities, common share equivalents:
Stock options		-		-
Restricted stock awards		9,395		-

Weighted average number of shares outstanding,
used for computing diluted earnings per share		10,730,737		10,773,623

Subsequent Events

12 Months Ended

Dec. 31, 2020

Subsequent Events

19. Subsequent Events

Note 19 - Subsequent Events

The Company has evaluated events that occurred subsequent to December 31, 2020 through March 31, 2021, 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 1, 2021, the Company announced that its Board of Directors approved a quarterly dividend of $0.04 per share payable in cash on March 15, 2021 to stockholders of record as of the close of business on February 26, 2021 (see Note 12).

Restricted Stock Awards

Pursuant to the terms of the Relinquishment Agreement between the Company and Mr. Thatcher, effective January 27, 2021, Mr. Thatcher relinquished his right to receive 14,077 unissued Shares which vested on January 1, 2021, the right to receive 11,905 Shares which were scheduled to vest on March 14, 2021 and the right to receive 14,076 Shares which were scheduled to vest on January 1, 2022 in full consideration of the payment by the Company of an aggregate of $280,406 (see Note 17).

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Data (Unaudited)

20. Quarterly Financial Data (Unaudited)

Note 20 – Quarterly Financial Data (Unaudited)

The following is a summary of unaudited quarterly results of operations for the years ended December 31, 2020 and 2019:

	2020
	March 31,			June 30,		September 30,			December 31,		Total

Net premiums earned	$	26,941,450		$	26,636,856	$	27,521,081		$	26,981,242	$	108,080,629
Ceding commission revenue		3,831,099			3,480,214		3,448,774			3,442,266		14,202,353
Net investment income		1,665,844			1,612,006		1,494,086			1,733,667		6,505,603
Net gains (losses) on investments		(6,444,418	)		2,697,868		2,107,876			3,229,290		1,590,616
Total revenues		26,253,605			34,689,332		34,822,471			35,604,343		131,369,751
Loss and loss adjustment expenses		16,385,821			12,813,631		20,117,975			17,113,645		66,431,072
Commission expense and
other underwriting expenses		14,617,718			14,086,013		14,383,144			14,166,078		57,252,953
Net income (loss)		(5,444,203	)		4,608,190		(1,227,856	)		3,036,259		972,390
Basic earnings (loss) per share	$	(0.50	)	$	0.43	$	(0.12	)	$	0.28	$	0.09
Diluted earnings (loss) per share	$	(0.50	)	$	0.43	$	(0.12	)	$	0.28	$	0.09

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

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”).

Certain prior year balances were reclassified to conform with the current year presentation.

Principles of Consolidation

Revenue Recognition

Net Premiums Earned

Ceding Commission Revenue

Loss and Loss Adjustment Expenses ("LAE") Reserves

Reinsurance

Cash and Cash Equivalents

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

Premiums Receivable

Deferred Policy Acquisition Costs

Intangible Assets

Property and Equipment

Income Taxes

Assessments

Concentration, Credit Risk and Market Risk

As of December 31, 2020 and 2019, the Company’s cash equivalents were as follows:

	December 31,		December 31,
	2020		2019

Collateralized bank repurchase agreement (1)	$	2,228,779	$	941,792
Money market funds		17,272,985		12,583,957
Total	$	19,501,764	$	13,525,749

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, 2020 and 2019 as follows:

	Years ended December 31,
	2020			2019
Personal Lines		92.9	%		83.5	%
Premiums earned not subject to concentration (1)		7.1	%		16.5	%
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. Actual results could differ from these estimates and assumptions, and includes the reserves for losses and LAE, which 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 ongoing basis, management reevaluates its assumptions and the methods for calculating these estimates. Actual results may differ significantly from the estimates 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 reflects, in periods in which they have a dilutive effect, the impact of common shares issuable upon the exercise of stock options as well as non-vested restricted stock awards. The computation of diluted earnings per share excludes those options with an exercise price in excess of the average market price of the Company’s common shares during the periods presented. Additionally, the computation of diluted earnings per share excludes unvested restricted stock awards as calculated using the treasury stock method.

Advertising Costs

Advertising costs are charged to operations as incurred. Advertising costs are included in other underwriting expenses in the accompanying consolidated statements of operations and comprehensive income and were approximately $132,000 and $153,000 for the years ended December 31, 2020 and 2019, respectively.

Stock-based Compensation

Stock-based compensation expense in 2020 and 2019 is the estimated fair value of restricted stock awards and 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 Company has determined that it was not subject to any new accounting pronouncements that became effective during the year ended December 31, 2020.

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Significant Accounting Policies

Summary of deposits of cash equivalents

	December 31,		December 31,
	2020		2019

Collateralized bank repurchase agreement (1)	$	2,228,779	$	941,792
Money market funds		17,272,985		12,583,957
Total	$	19,501,764	$	13,525,749

Schedule of Concentration Risk

	Years ended December 31,
	2020			2019
Personal Lines		92.9	%		83.5	%
Premiums earned not subject to concentration (1)		7.1	%		16.5	%
Total premiums earned		100.0	%		100.0	%

Investments (Tables)

12 Months Ended

Dec. 31, 2020

Investments

Schedule of Available for Sale Securities

	December 31, 2020

	Cost or		Gross		Gross Unrealized Losses						Estimated		Net
	Amortized		Unrealized		Less than 12			More than 12			Fair		Unrealized
Category	Cost		Gains		Months			Months			Value		Gains

Fixed-Maturity Securities:
U.S. Treasury securities and
obligations of U.S. government
corporations and agencies	$	3,020,710	$	29,190	$	-		$	-		$	3,049,900	$	29,190

Political subdivisions of States,
Territories and Possessions		5,287,561		355,541		-			-			5,643,102		355,541

Corporate and other bonds
Industrial and miscellaneous		108,573,422		11,634,123		(13,216	)		-			120,194,329		11,620,907

Residential mortgage and other
asset backed securities (1)		28,163,891		617,368		(7,371	)		(111,947	)	$	28,661,941		498,050
Total	$	145,045,584	$	12,636,222	$	(20,587	)	$	(111,947	)	$	157,549,272	$	12,503,688

December 31, 2019

Cost or

Gross

Gross Unrealized Losses

Estimated

Net

Amortized

Unrealized

Less than 12

More than 12

Fair

Unrealized

Category

Cost

Gains

Months

Months

Value

Gains

Fixed-Maturity Securities:

U.S. Treasury securities and

obligations of U.S. government

corporations and agencies

$ 7,037,856

$ 23,244

$ -

$ -

$ 7,061,100

$ 23,244

Political subdivisions of States,

Territories and Possessions

9,151,293

181,835

(11,316 )

-

9,321,812

170,519

Corporate and other bonds

Industrial and miscellaneous

119,874,573

5,777,624

(16,685 )

(13,473 )

125,622,039

5,747,466

Residential mortgage and other

asset backed securities (1)

26,138,633

437,841

(68,793 )

(276,451 )

$ 26,231,230

92,597

Total

$ 162,202,355

$ 6,420,544

$ (96,794 )

$ (289,924 )

$ 168,236,181

$ 6,033,826

Schedule of available for sale fixed maturity securities contractual maturity

	December 31, 2020				December 31, 2019
	Amortized		Estimated		Amortized		Estimated
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	8,559,005	$	8,668,064	$	11,986,401	$	12,025,804
One to five years		44,137,567		47,745,430		49,715,422		51,000,025
Five to ten years		55,508,712		63,159,775		69,850,104		74,410,275
More than 10 years		8,676,409		9,314,062		4,511,795		4,568,847
Residential mortgage and other asset backed securities		28,163,891		28,661,941		26,138,633		26,231,230
Total	$	145,045,584	$	157,549,272	$	162,202,355	$	168,236,181

Schedule of equity securities

	December 31, 2020
			Gross		Gross			Estimated
Category	Cost		Gains		Losses			Fair Value

Equity Securities:
Preferred stocks	$	18,097,942	$	853,277	$	(426,942	)	$	18,524,277
Common stocks, mutual funds,
and exchange traded funds		14,473,224		1,820,512		(404,700	)		15,889,036
Total	$	32,571,166	$	2,673,789	$	(831,642	)	$	34,413,313

December 31, 2019

Gross

Gross

Estimated

Category

Cost

Gains

Losses

Fair Value

Equity Securities:

Preferred stocks

$ 8,374,424

$ 339,257

$ (11,794 )

$ 8,701,887

Common stocks, mutual funds,

and exchange traded funds

14,250,244

1,982,878

(273,627 )

15,959,495

Total

$ 22,624,668

$ 2,322,135

$ (285,421 )

$ 24,661,382

Schedule of Other Investments

	December 31, 2020						December 31, 2019
			Gross		Estimated				Gross		Estimated
Category	Cost		Gains		Fair Value		Cost		Gains		Fair Value

Other Investments:
Hedge fund	$	1,999,381	$	1,519,245	$	3,518,626	$	1,999,381	$	585,532	$	2,584,913
Total	$	1,999,381	$	1,519,245	$	3,518,626	$	1,999,381	$	585,532	$	2,584,913

Schedule of Held to Maturity Securities

	December 31, 2020

	Cost or		Gross		Gross Unrealized Losses				Estimated		Net
	Amortized		Unrealized		Less than 12		More than 12		Fair		Unrealized
Category	Cost		Gains		Months		Months		Value		Gains

Held-to-Maturity Securities:
U.S. Treasury securities	$	729,595	$	319,714	$	-	$	-	$	1,049,309	$	319,714

Political subdivisions of States,
Territories and Possessions		998,428		50,917		-		-		1,049,345		50,917

Corporate and other bonds
Industrial and miscellaneous		5,640,792		455,378		-		-		6,096,170		455,378

Total	$	7,368,815	$	826,009	$	-	$	-	$	8,194,824	$	826,009

December 31, 2019

Cost or

Gross

Gross Unrealized Losses

Estimated

Net

Amortized

Unrealized

Less than 12

More than 12

Fair

Unrealized

Category

Cost

Gains

Months

Months

Value

Gains

Held-to-Maturity Securities:

U.S. Treasury securities

$ 729,550

$ 151,002

$ -

$ -

$ 880,552

$ 151,002

Political subdivisions of States,

Territories and Possessions

998,619

51,021

-

-

1,049,640

51,021

Corporate and other bonds

Industrial and miscellaneous

2,097,783

97,627

(835 )

-

2,194,575

96,792

Total

$ 3,825,952

$ 299,650

$ (835 )

$ -

$ 4,124,767

$ 298,815

Schedule of Held to Maturity Securities by contractual maturity

	December 31, 2020				December 31, 2019
	Amortized		Estimated		Amortized		Estimated
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$	-	$	-	$	500,000	$	499,165
One to five years		2,598,193		2,777,936		2,099,268		2,215,640
Five to ten years		1,502,603		1,727,316		620,134		655,923
More than 10 years		3,268,019		3,689,572		606,550		754,039
Total	$	7,368,815	$	8,194,824	$	3,825,952	$	4,124,767

Schedule of Investment Income

	Years ended
	December 31,
	2020		2019
Income:
Fixed-maturity securities	$	5,533,047	$	5,943,889
Equity securities		1,159,507		930,004
Cash and cash equivalents		91,603		337,602
Total		6,784,157		7,211,495
Expenses:
Investment expenses		278,554		342,149
Net investment income	$	6,505,603	$	6,869,346

Schedule of Securities with realized gains and losses on investments

	Years ended
	December 31,
	2020			2019
Realized Gains (Losses)

Fixed-maturity securities:
Gross realized gains	$	1,108,159		$	11,608
Gross realized losses		(327,890	)		(134,533	)
		780,269			(122,925	)

Equity securities:
Gross realized gains		832,394			316,924
Gross realized losses		(780,245	)		(165,154	)
		52,149			151,770

Net realized gains		832,418			28,845

Unrealized Gains (Losses)

Equity Securities:
Gross gains		41,517			3,832,486
Gross losses		(217,032	)		-
		(175,515	)		3,832,486

Other Investments:
Gross gains		933,713			729,688
Gross losses		-			-
		933,713			729,688

Net unrealized gains		758,198			4,562,174

Net gains on investments	$	1,590,616		$	4,591,019

Schedule of Securities with Unrealized Losses

	December 31, 2020
	Less than 12 months							12 months or more							Total
	Estimated					No. of		Estimated					No. of		Estimated
	Fair		Unrealized			Positions		Fair		Unrealized			Positions		Fair		Unrealized
Category	Value		Losses			Held		Value		Losses			Held		Value		Losses

Fixed-Maturity Securities:
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies	$	-	$	-			-	$	-	$	-			-	$	-	$	-

Political subdivisions of
States, Territories and
Possessions		-		-			-		-		-			-		-		-

Corporate and other
bonds industrial and
miscellaneous		1,006,901		(13,216	)		1		-		-			-		1,006,901		(13,216	)

Residential mortgage and other
asset backed securities		6,137,522		(7,371	)		5		3,735,732		(111,947	)		10		9,873,254		(119,318	)

Total fixed-maturity
securities	$	7,144,423	$	(20,587	)		6	$	3,735,732	$	(111,947	)		10	$	10,880,155	$	(132,534	)

December 31, 2019

Less than 12 months

12 months or more

Total

Estimated

No. of

Estimated

No. of

Estimated

Fair

Unrealized

Positions

Fair

Unrealized

Positions

Fair

Unrealized

Category

Value

Losses

Held

Value

Losses

Held

Value

Losses

Fixed-Maturity Securities:

U.S. Treasury securities

and obligations of U.S.

government corporations

and agencies

$ -

$ -

-

$ -

$ -

-

$ -

$ -

Political subdivisions of

States, Territories and

Possessions

3,067,428

(11,316 )

3

-

-

-

3,067,428

(11,316 )

Corporate and other

bonds industrial and

miscellaneous

3,730,478

(16,685 )

7

1,300,915

(13,473 )

3

5,031,393

(30,158 )

Residential mortgage and other

asset backed securities

5,862,636

(68,793 )

5

13,534,768

(276,451 )

21

19,397,404

(345,244 )

Total fixed-maturity

securities

$ 12,660,542

$ (96,794 )

15

$ 14,835,683

$ (289,924 )

24

$ 27,496,225

$ (386,718 )

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Measurements

Schedule of Fair Value Measurements

	December 31, 2020
	Level 1		Level 2		Level 3		Total

Fixed-maturity securities available-for-sale
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies	$	3,049,900	$	-	$	-	$	3,049,900

Political subdivisions of
States, Territories and
Possessions		-		5,643,102		-		5,643,102

Corporate and other
bonds industrial and
miscellaneous		118,123,890		2,070,439		-		120,194,329

Residential mortgage and other asset backed securities		-		28,661,941		-		28,661,941
Total fixed maturities		121,173,790		36,375,482		-		157,549,272
Equity securities		34,413,313		-		-		34,413,313
Total investments	$	155,587,103	$	36,375,482	$	-	$	191,962,585

December 31, 2019

Level 1

Level 2

Level 3

Total

Fixed-maturity securities available-for-sale

U.S. Treasury securities

and obligations of U.S.

government corporations

and agencies

$ 7,061,100

$ -

$ -

$ 7,061,100

Political subdivisions of

States, Territories and

Possessions

-

9,321,812

-

9,321,812

Corporate and other

bonds industrial and

miscellaneous

123,010,772

2,611,267

-

125,622,039

Residential mortgage and other asset backed securities

-

26,231,230

-

26,231,230

Total fixed maturities

130,071,872

38,164,309

-

168,236,181

Equity securities

24,661,382

-

-

24,661,382

Total investments

$ 154,733,254

$ 38,164,309

$ -

$ 192,897,563

Schedule of Hedge Fund Investments

Category	December 31, 2020		December 31, 2019

Other Investments:
Hedge fund	$	3,518,626	$	2,584,913
Total	$	3,518,626	$	2,584,913

Fair value hierarchy of long-term debt

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Long-term debt

Senior Notes due 2022	$	-	$	27,272,727	$	-	$	27,272,727

December 31, 2019

Level 1

Level 2

Level 3

Total

Long-term debt

Senior Notes due 2022

$ -

$ 27,313,994

$ -

$ 27,313,994

Fair Value of Financial Instruments and Real Estate (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value of Financial Instruments and Real Estate (Tables)

Schedule of Fair Value of Financial Instruments

	December 31, 2020				December 31, 2019
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value

Fixed-maturity securities-held-to maturity	$	7,368,815	$	8,194,824	$	3,825,952	$	4,124,767
Cash and cash equivalents	$	19,463,742	$	19,463,742	$	32,391,485	$	32,391,485
Premiums receivable, net	$	14,020,716	$	14,020,716	$	12,706,411	$	12,706,411
Reinsurance receivables, net	$	45,460,729	$	45,460,729	$	40,750,538	$	40,750,538
Real estate, net of accumulated depreciation	$	2,219,999	$	2,705,000	$	2,292,743	$	2,705,000
Reinsurance balances payable	$	6,979,735	$	6,979,735	$	11,714,724	$	11,714,724

Intangibles Assets (Tables)

12 Months Ended

Dec. 31, 2020

Intangibles Assets

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

			December 31, 2020						December 31, 2019
	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		3,400,000		-		3,400,000		3,400,000		-
Other identifiable
intangibles		7		950,000		950,000		-		950,000		950,000		-
Total			$	4,850,000	$	4,350,000	$	500,000	$	4,850,000	$	4,350,000	$	500,000

Reinsurance (Tables)

12 Months Ended

Dec. 31, 2020

Reinsurance

Line of Business

	Treaty Year
	December 15, 2019			July 1, 2019	July 1, 2018
	to			to	to
Line of Business	December 30, 2020			December 14, 2019	June 30, 2019

Personal Lines:
Homeowners, dwelling fire and
and canine legal liability
Quota share treaty:
Percent ceded		25	%	None		10	%

Treaty Year

December 31, 2020

July 1, 2020

December 15, 2019

July 1, 2019

July 1, 2018

to

to

to

to

to

Line of Business

June 30, 2021

December 30, 2020

June 30, 2020

December 14, 2019

June 30, 2019

Personal Lines:

Homeowners, dwelling fire and

and canine legal liability

Quota share treaty:

Risk retained on intial

$1,000,000 of losses (7)

1,000,000

$ 750,000

$ 750,000

$ 1,000,000

$ 900,000

Losses per occurrence subject

to quota share

reinsurance coverage

None (7)

$ 1,000,000

$ 1,000,000

None

$ 1,000,000

Expiration date

NA (7)

December 30, 2020

December 30, 2020

NA

June 30, 2019

Excess of loss coverage and

facultative facility

coverage (1)

$ 8,000,000

$ 8,000,000

$ 9,000,000

$ 9,000,000

$ 9,000,000

in excess of

in excess of

in excess of

in excess of

in excess of

$ 1,000,000

$ 1,000,000

$ 1,000,000

$ 1,000,000

$ 1,000,000

Total reinsurance coverage

per occurrence (7)

$ 8,000,000

$ 8,250,000

$ 9,250,000

$ 9,000,000

$ 9,100,000

Losses per occurrence subject

to reinsurance coverage

$ 8,000,000

$ 9,000,000

$ 10,000,000

$ 10,000,000

$ 10,000,000

Expiration date (7)

June 30, 2021

June 30, 2021

June 30, 2020

June 30, 2020

June 30, 2019

Catastrophe Reinsurance:

Initial loss subject to personal

lines quota share treaty

None (7)

$ 7,500,000

$ 7,500,000

None

$ 5,000,000

Risk retained per catastrophe

occurrence (2) (7)

$ 10,000,000

$ 8,125,000

$ 5,625,000

$ 7,500,000

$ 4,500,000

Catastrophe loss coverage

in excess of

quota share coverage (3) (7)

$ 475,000,000

$ 475,000,000

$ 602,500,000

$ 602,500,000

$ 445,000,000

Reinstatement premium

protection (4) (5) (6)

Yes

Yes

Yes

Yes

Yes

Treaty Year

July 1, 2020

July 1, 2019

July 1, 2018

to

to

to

Line of Business

June 30, 2021

June 30, 2020

June 30, 2019

Personal Lines:

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

95 %

100 %

100 %
Risk retained

$ 300,000

$ 100,000

$ 100,000

Total reinsurance coverage per occurrence

$ 4,700,000

$ 4,900,000

$ 4,900,000

Losses per occurrence subject to quota share reinsurance coverage

$ 5,000,000

$ 5,000,000

$ 5,000,000

Expiration date

June 30, 2021

June 30, 2020

June 30, 2019

Commercial Lines:

General liability commercial policies

Quota share treaty

None

None

None

Risk retained

$ 750,000

$ 750,000

$ 750,000

Excess of loss coverage above risk retained

$ 3,750,000

$ 3,750,000

$ 3,750,000

in excess of

in excess of

in excess of

$ 750,000

$ 750,000

$ 750,000

Total reinsurance coverage per occurrence

$ 3,750,000

$ 3,750,000

$ 3,750,000

Losses per occurrence subject to reinsurance coverage

$ 4,500,000

$ 4,500,000

$ 4,500,000

Commercial Umbrella

Quota share treaty:

None

None

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, 2019

Schedule of approximate reinsurance recoverables

	Unpaid		Paid
($ in thousands)	Losses		Losses		Total		Security
December 31, 2020
Cavello Bay Reinsurance Limited (1)	$	2,850	$	3,405	$	6,255	$	10,086	(2)
Swiss Reinsurance America Corporation		7,778		5,840		13,618		-
Hanover Rueck SE		4,909		2,897		7,806		-
Allied World Assurance Company		2,019		1,761		3,780		-
Others		2,598		884		3,482		732	(3)
Total	$	20,154	$	14,787	$	34,941	$	10,818

December 31, 2019
Cavello Bay Reinsurance Limited (1)	$	4,036	$	2,427	$	6,463	$	5,995	(2)
Swiss Reinsurance America Corporation		4,418		1,336		5,754		-
Hanover Rueck SE		3,156		522		3,678		-
SCOR Reinsurance Company		394		458		852		-
Allied World Assurance Company		760		170		930		-
Others		2,964		471		3,435		-
Total	$	15,728	$	5,385	$	21,112	$	5,995

Schedule of Ceding commissions earned

	Years ended
	December 31,
	2020		2019

Provisional ceding commissions earned	$	14,119,180	$	5,446,370
Contingent ceding commissions earned		83,173		(795,519	)
	$	14,202,353	$	4,650,851

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

12 Months Ended

Dec. 31, 2020

Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue

Schedule of acquisition costs incurred

	Years ended
	December 31,
	2020			2019

Net deferred policy acquisition costs, net of ceding
commission revenue, beginning of year	$	12,898,980		$	15,221,060

Cost incurred and deferred:
Commissions and brokerage		32,279,848			32,541,094
Other underwriting and policy acquisition costs		8,526,003			9,423,340
Ceding commission revenue		(13,680,042	)		(3,754,889	)
Net deferred policy acquisition costs		27,125,809			38,209,545
Return of deferred ceding commission revenue
due to reduction of quota share		7,202,741			-
Additional deferred ceding commission revenue
due to inception of quota share		-			(6,740,202	)
Amortization		(27,178,534	)		(33,791,423	)
		7,150,016			(2,322,080	)

Net deferred policy acquisition costs, net of ceding
commission revenue, end of year	$	20,048,996		$	12,898,980

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

	December 31,
	2020			2019

Deferred policy acquisition costs	$	20,142,515		$	20,634,378
Deferred ceding commission revenue		(93,519	)		(7,735,398	)
Balance at end of period	$	20,048,996		$	12,898,980

Debt (Tables)

12 Months Ended

Dec. 31, 2020

Debt

Long-term debt

	December 31,			December 31,
	2020			2019

5.50% Senior Unsecured Notes	$	30,000,000		$	30,000,000
Discount		(64,883	)		(97,325	)
Issuance costs		(287,506	)		(431,244	)
Long-term debt, net	$	29,647,611		$	29,471,431

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

Property and Equipment

Schedule of components of property and equipment

			Accumulated
	Cost		Depreciation			Net

December 31, 2020
Building	$	2,344,188	$	(760,302	)	$	1,583,886
Land		652,437		-			652,437
Furniture office equipment		802,325		(715,819	)		86,506
Leasehold improvements		18,996		(2,712	)		16,284
Computer equipment and software		14,187,456		(8,491,325	)		5,696,131
Automobile		99,352		(51,473	)		47,879
Total	$	18,104,754	$	(10,021,631	)	$	8,083,123

December 31, 2019
Building	$	2,344,188	$	(663,200	)	$	1,680,988
Land		652,437		-			652,437
Furniture office equipment		802,325		(656,204	)		146,121
Leasehold improvements		18,996		(226	)		18,770
Computer equipment and software		10,861,385		(5,813,308	)		5,048,077
Automobile		99,352		(25,109	)		74,243
Total	$	14,778,683	$	(7,158,047	)	$	7,620,636

Property and Casualty Insurance Activity (Tables)

12 Months Ended

Dec. 31, 2020

Property and Casualty Insurance Activity

Schedule of Earned Premiums

	Direct			Assumed			Ceded			Net

Year ended December 31, 2020
Premiums written	$	169,317,904		$	-		$	(42,255,383	)	$	127,062,521
Change in unearned premiums		373,966			-			(19,355,858	)		(18,981,892	)
Premiums earned	$	169,691,870		$	-		$	(61,611,241	)	$	108,080,629

Year ended December 31, 2019
Premiums written	$	171,214,091		$	939		$	(45,635,899	)	$	125,579,131
Change in unearned premiums		(11,350,864	)		(243	)		13,395,418			2,044,311
Premiums earned	$	159,863,227		$	696		$	(32,240,481	)	$	127,623,442

Schedule of Loss and Loss Adjustment Expenses

	Gross		Reinsurance
	Liability		Receivables
December 31, 2020
Case-basis reserves	$	47,657,198	$	15,432,347
Loss adjustment expenses		13,610,284		1,882,419
IBNR reserves		21,533,746		2,839,486
Recoverable on unpaid losses				20,154,252
Recoverable on paid losses		-		14,787,037
Total loss and loss adjustment expenses	$	82,801,228		34,941,289
Unearned premiums				282,131
Receivables - reinsurance contracts				10,237,309
Total reinsurance receivables			$	45,460,729

December 31, 2019
Case-basis reserves	$	48,688,643	$	12,894,469
Loss adjustment expenses		12,606,236		1,416,686
IBNR reserves		19,203,732		1,417,070
Recoverable on unpaid losses				15,728,225
Recoverable on paid losses		-		5,384,325
Total loss and loss adjustment expenses	$	80,498,611		21,112,550
Unearned premiums				19,637,988
Total reinsurance receivables			$	40,750,538

Schedule of Ceding Commission Revenue

	Years ended
	December 31,
	2020			2019

Balance at beginning of period	$	80,498,611		$	56,197,106
Less reinsurance recoverables		(15,728,224	)		(15,671,247	)
Net balance, beginning of period		64,770,387			40,525,859

Incurred related to:
Current year		66,389,907			79,044,301
Prior years		41,165			11,138,023
Total incurred		66,431,072			90,182,324

Paid related to:
Current year		41,100,578			42,861,207
Prior years		27,453,904			23,076,589
Total paid		68,554,482			65,937,796

Net balance at end of period		62,646,977			64,770,387
Add reinsurance recoverables		20,154,251			15,728,224
Balance at end of period	$	82,801,228		$	80,498,611

Incurred Claims and Allocated Claim Adjustment Expenses

All Lines of Business
*(in thousands, except reported claims data)*
																					As of
	Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance																				December 31, 2020
	For the Years Ended December 31,																				IBNR		Cumulative Number of Reported Claims by Accident Year
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
	(Unaudited 2011 - 2019)

2011	$	7,603	$	7,678	$	8,618	$	9,440	$	9,198	$	9,066	$	9,144	$	9,171	$	9,127	$	9,128	$	-		1,914
2012				9,539		9,344		10,278		10,382		10,582		10,790		10,791		11,015		10,885		13		4,704	(1)
2013						10,728		9,745		9,424		9,621		10,061		10,089		10,607		10,495		5		1,563
2014								14,193		14,260		14,218		14,564		15,023		16,381		16,428		257		2,138
2015										22,340		21,994		22,148		22,491		23,386		23,291		312		2,556
2016												26,062		24,941		24,789		27,887		27,966		461		2,878
2017														31,605		32,169		35,304		36,160		654		3,391
2018																54,455		56,351		58,441		1,928		4,208
2019																		75,092		72,368		9,547		4,442
2020																				63,083		11,421		5,596
Total																			$	328,244

Cumulative Paid Claims and Allocated Claim Adjustment Expenses

All Lines of Business
*(in thousands)*
	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
	(Unaudited 2011 - 2019)

2011	$	3,740	$	5,117	$	6,228	$	7,170	$	8,139	$	8,540	$	8,702	$	8,727	$	8,789	$	9,106
2012				3,950		5,770		7,127		8,196		9,187		10,236		10,323		10,428		10,451
2013						3,405		5,303		6,633		7,591		8,407		9,056		9,717		10,016
2014								5,710		9,429		10,738		11,770		13,819		14,901		15,491
2015										12,295		16,181		18,266		19,984		21,067		22,104
2016												15,364		19,001		21,106		23,974		25,234
2017														16,704		24,820		28,693		31,393
2018																32,383		44,516		50,553
2019																		40,933		54,897
2020																				39,045
Total																			$	268,291

Net liability for unpaid loss and allocated loss adjustment expenses for the accident years presented																			$	59,953
All outstanding liabilities before 2011, net of reinsurance																				94
Liabilities for loss and allocated loss adjustment expenses, net of reinsurance																			$	60,047

Reconciliation of the net incurred and paid claims

Reconciliation of the Disclosure of Incurred and Paid Loss Development
to the Liability for Loss and LAE Reserves

	As of
*(in thousands)*	December 31, 2020
Liabilities for allocated loss and loss adjustment expenses, net of reinsurance	$	60,047
Total reinsurance recoverable on unpaid losses		20,154
Unallocated loss adjustment expenses		2,600
Total gross liability for loss and LAE reserves	$	82,801

Supplementary unaudited information about average historical claims duration

Average Annual Percentage Payout of Incurred Loss and Allocated Loss Adjustment Expenses by Age, Net of Reinsurance
Years	1		2		3		4		5		6		7		8		9		10
All Lines of Business	47.2	%	18.3	%	10.3	%	8.7	%	8.2	%	6.2	%	3.1	%	1.4	%	0.5	%	3.5	%

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2020

Stockholders' Equity

Weighted average assumptions

	Years ended
	December 31,
	2020			2019

Dividend Yield		3.14	%		2.87	%
Volatility		37.69	%		36.11	%
Risk-Free Interest Rate		1.40	%		1.61	%
Expected Life		2.75 years		3.25 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, 2020		82,000		$	8.61		3.38	$	-

Granted		74,523		$	7.96		4.08	$	-
Exercised		-		$	-		-	$	-
Forfeited		(36,557	)	$	8.43		-	$	(308,340	)

Outstanding at December 31, 2020		119,966		$	8.26		3.55	$	-

Vested and Exercisable at December 31, 2020		50,000		$	8.45		1.05	$	-

Schedule of the restricted Common Stock activity

Restricted Stock Awards	Shares			Weighted Average Grant Date Fair Value per Share		Aggregate Fair Value

Balance at January 1, 2020		213,929		$	16.51	$	3,554,174

Granted		242,974		$	7.66	$	1,860,525
Vested		(66,673	)	$	16.97	$	(1,331,254	)
Forfeited		(19,266	)	$	15.18	$	(292,455	)

Balance at December 31, 2020		370,964		$	9.96	$	3,990,999

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes

Schedule of provision for income taxes from continuing operations

Years ended December 31,	2020			2019

Current federal income tax expense (benefit)	$	(5,366,759	)	$	174,779
Current state income tax expense (benefit)		(2,736	)		238
Deferred federal and state income tax expense (benefit)		3,109,295			(1,991,208	)

Income tax benefit	$	(2,260,200	)	$	(1,816,191	)

Schedule of a reconciliation of the federal statutory rate

Years ended December 31,	2020					2019
Computed expected tax (benefit) expense	$	(270,440	)	21.0	%	$	(1,634,334	)	21.0	%
State taxes, net of federal benefit		(233,752	)	18.2			(247,909	)	3.2
State valuation allowance		292,087		(22.7	)		261,573		(3.4	)
Benefit of higher tax brackets in NOL carryback - current year		(754,829	)	58.6			-		-
Benefit of higher tax brackets in NOL carryback - prior year		(1,274,465	)	99.0			-		-
Permanent differences
Dividends received deduction		(118,113	)	9.2			(97,631	)	1.3
Non-taxable investment income		(55,752	)	4.3			(39,901	)	0.5
Excess benefit from stock-based compensation		-		-			184		-
Stock-based compensation		125,923		(9.8	)		80,453		(1.0	)
Other permanent differences		46,108		(3.6	)		(15,961	)	0.2
Prior year tax matters		(77,625	)	6.0			(91,748	)	1.2
Other		60,658		(4.7	)		(30,917	)	0.3
Income tax benefit, as reported	$	(2,260,200	)	175.5	%	$	(1,816,191	)	23.3	%

Schedule of Deferrred Tax Assets and Liabilities

	December 31,			December 31,
	2020			2019

Deferred tax asset:
Net operating loss carryovers (1)	$	-		$	1,586,247
Claims reserve discount		838,030			839,959
Unearned premium		3,880,275			3,105,344
Deferred ceding commission revenue		19,639			1,624,434
Other		648,691			462,019
Total deferred tax assets		5,386,635			7,618,003

Deferred tax liability:
Investment in KICO (2)		759,543			759,543
Deferred acquisition costs		4,229,928			4,333,219
Intangibles		105,000			105,000
Depreciation and amortization		954,446			312,298
Net unrealized gains (losses) of securities		3,494,631			1,796,891
Total deferred tax liabilities		9,543,548			7,306,951

Net deferred income tax (liability) asset	$	(4,156,913	)	$	311,052

Schedule of net operating loss carryovers

	December 31,			December 31,
Type of NOL	2020			2019			Expiration

Federal only, current year (A)		1,200,056			1,517,866
NOL carried back		(1,200,056	)		(1,517,866	)
Federal only, current year	$	-		$	-

State only (B)		1,815,546			1,616,568		December 31, 2040
Valuation allowance		(1,815,546	)		(1,548,187	)
State only, net of valuation allowance		-			68,381

Total deferred tax asset from net operating loss carryovers	$	-		$	68,381

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

Decrease in net deferred income tax assets	$	4,467,965
Deferred tax expense allocated to other comprehensive income		1,358,670
Deferred income tax expense	$	3,109,295

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies

Lease cost

	Year ended			Year ended
Lease cost	December 31, 2020			December 31, 2019
Operating leases	$	245,188		$	165,368
Short-term leases		-			-
Total lease cost (1)	$	245,188		$	165,368

Other information on operating leases
Cash payments included in the measurement of lease
liability reported in operating cash flows	$	255,626		$	169,861
Discount rate		5.50	%		5.50	%
Remaining lease term in years	4.94 years			5.88 years

Schedule of lease liability maturities

For the Year
Ending
December 31,	Total
2021		264,571
2022		273,831
2023		283,415
2024		140,739
2025		94,799
Thereafter		98,117
Total undiscounted lease payments		1,155,472
Less: present value adjustment		187,003
Operating lease liability	$	968,469

Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings (loss) 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

	Years ended
	December 31,
	2020		2019

Weighted average number of shares outstanding		10,721,342		10,773,623

Effect of dilutive securities, common share equivalents:
Stock options		-		-
Restricted stock awards		9,395		-

Weighted average number of shares outstanding,
used for computing diluted earnings per share		10,730,737		10,773,623

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Data (Unaudited)

Schedule of Quarterly Financial Data

	2020
	March 31,			June 30,		September 30,			December 31,		Total

Net premiums earned	$	26,941,450		$	26,636,856	$	27,521,081		$	26,981,242	$	108,080,629
Ceding commission revenue		3,831,099			3,480,214		3,448,774			3,442,266		14,202,353
Net investment income		1,665,844			1,612,006		1,494,086			1,733,667		6,505,603
Net gains (losses) on investments		(6,444,418	)		2,697,868		2,107,876			3,229,290		1,590,616
Total revenues		26,253,605			34,689,332		34,822,471			35,604,343		131,369,751
Loss and loss adjustment expenses		16,385,821			12,813,631		20,117,975			17,113,645		66,431,072
Commission expense and
other underwriting expenses		14,617,718			14,086,013		14,383,144			14,166,078		57,252,953
Net income (loss)		(5,444,203	)		4,608,190		(1,227,856	)		3,036,259		972,390
Basic earnings (loss) per share	$	(0.50	)	$	0.43	$	(0.12	)	$	0.28	$	0.09
Diluted earnings (loss) per share	$	(0.50	)	$	0.43	$	(0.12	)	$	0.28	$	0.09

2019

March 31,

June 30,

September 30,

December 31,

Total

Net premiums earned

$ 29,595,889

$ 31,201,279

$ 34,220,010

$ 32,606,264

$ 127,623,442

Ceding commission revenue

1,277,683

675,695

1,029,582

1,667,891

4,650,851

Net investment income

1,623,712

1,719,769

1,856,553

1,669,312

6,869,346

Net gains on investments

2,035,363

678,655

998,162

878,839

4,591,019

Total revenues

34,848,269

34,615,312

38,447,698

37,208,687

145,119,966

Loss and loss adjustment expenses

29,134,224

17,672,308

24,781,318

18,594,474

90,182,324

Commission expense and

other underwriting expenses

12,975,718

12,720,317

14,153,559

14,663,720

54,513,314

Net income (loss)

(7,335,190 )

1,639,380

(1,725,162 )

1,454,619

(5,966,353 )
Basic earnings (loss) per share

$ (0.68 )

$ 0.15

$ (0.16 )

$ 0.13

$ (0.55 )
Diluted earnings (loss) per share

$ (0.68 )

$ 0.15

$ (0.16 )

$ 0.13

$ (0.55 )

Nature of Business (Details Narrative)	12 Months Ended
Nature of Business (Details Narrative)	Dec. 31, 2020	Dec. 31, 2019
Nature of Business
Direct written premiums, percentage	80.00%	85.00%

Summary of Significant Accounting Policies (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies
Collateralized bank repurchase agreement (1)	$ 2,228,779	$ 941,792
Money market funds	17,272,985	12,583,957
Total	$ 19,501,764	$ 13,525,749

Summary of Significant Accounting Policies (Details 1)	12 Months Ended
Summary of Significant Accounting Policies (Details 1)	Dec. 31, 2020	Dec. 31, 2019
Total premiums earned	100.00%	100.00%
Premiums earned not subject to concentration (1) [Member]
Total premiums earned subject to concentration	7.10%	16.50%
Personal Lines
Total premiums earned subject to concentration	92.90%	83.50%

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Due and accrued investment income	$ 1,880,000	$ 1,922,000
Allowance for doubtful accounts	390,000	338,000
Uncollectible premiums receivable balances written off	129,000	113,000
Advertising costs	132,000	$ 153,000
Right-of-use asset	855,000
Lease liability	$ 855,000
computer equipment, computer software, automobiles, furniture and other equipment [Member]
Estimates useful life	39 years
building and building improvements [Member]
Estimates useful lifes	three years

Investments (Details) - USD ($)	12 Months Ended
Investments (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Fixed-Maturity Securities Political Subdivisions Of States Territories And Possessions [Member]
Cost or amortized cost	$ 5,287,561	$ 9,151,293
Gross unrealized gains	355,541	181,835
Gross unrealized losses - less than 12 months	0	(11,316)
Gross unrealized loss - more than 12 months	0	0
Estimated fair value	5,643,102	9,321,812
Net unrealized gains	355,541	170,519
Fixed-Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous [Member]
Cost or amortized cost	108,573,422	119,874,573
Gross unrealized gains	11,634,123	5,777,624
Gross unrealized losses - less than 12 months	(13,216)	(16,685)
Gross unrealized loss - more than 12 months	0	(13,473)
Estimated fair value	120,194,329	125,622,039
Net unrealized gains	11,620,907	5,747,466
Fixed Maturity Securities Residential Mortgage and other asset backed securities [Member]
Cost or amortized cost	28,163,891	26,138,633
Gross unrealized gains	617,368	437,841
Gross unrealized losses - less than 12 months	(7,371)	(68,793)
Gross unrealized loss - more than 12 months	(111,947)	(276,451)
Estimated fair value	28,661,941	26,231,230
Net unrealized gains	498,050	92,597
Fixed Maturity Securities Total Fixed Maturity Securities [Member]
Cost or amortized cost	145,045,584	162,202,355
Gross unrealized gains	12,636,222	6,420,544
Gross unrealized losses - less than 12 months	(20,587)	(96,794)
Gross unrealized loss - more than 12 months	(111,947)	(289,924)
Estimated fair value	157,549,272	168,236,181
Net unrealized gains	12,503,688	6,033,826
U.S. Treasury Securities and Obligations of U.S. Government [Member]
Cost or amortized cost	3,020,710	7,037,856
Gross unrealized gains	29,190	23,244
Gross unrealized losses - less than 12 months	0	0
Gross unrealized loss - more than 12 months	0	0
Estimated fair value	3,049,900	7,061,100
Net unrealized gains	$ 29,190	$ 23,244

Investments (Details 1) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Amortized cost	$ 145,045,584	$ 162,202,355
Estimated fair value	157,549,272	168,236,181
Less Than One Year [Member]
Amortized cost	8,559,005	11,986,401
Estimated fair value	8,668,064	12,025,804
One To Five Years [Member]
Amortized cost	44,137,567	49,715,422
Estimated fair value	47,745,430	51,000,025
Five To Ten Years [Member]
Amortized cost	55,508,712	69,850,104
Estimated fair value	63,159,775	74,410,275
More Than 10 Years [Member]
Amortized cost	8,676,409	4,511,795
Estimated fair value	9,314,062	4,568,847
Residential mortgage-backed securities [Member]
Amortized cost	28,163,891	26,138,633
Estimated fair value	$ 28,661,941	$ 26,231,230

Investments (Details 2) - USD ($)	12 Months Ended
Investments (Details 2) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Estimated fair value	$ 3,518,626	$ 2,584,913
Other Investments [Member]
Cost	1,999,381	1,999,381
Gross gains	1,519,245	585,532
Estimated fair value	3,518,626	2,584,913
Hedge Fund [Member]
Cost	1,999,381	1,999,381
Gross gains	1,519,245	585,532
Estimated fair value	3,518,626	2,584,913
Equity Securities [Member]
Cost	32,571,166	22,624,668
Gross gains	2,673,789	2,322,135
Gross losses	(831,642)	(285,421)
Estimated fair value	34,413,313	24,661,382
Preferred Stock [Member]
Cost	18,097,942	8,374,424
Gross gains	853,277	339,257
Gross losses	(426,942)	(11,794)
Estimated fair value	18,524,277	8,701,887
Common stock, mutual fund and exchange traded funds [Member]
Cost	14,473,224	14,250,244
Gross gains	1,820,512	1,982,878
Gross losses	(404,700)	(273,627)
Estimated fair value	$ 15,889,036	$ 15,959,495

Investments (Details 3) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Cost or amortized cost	$ 7,368,815	$ 3,825,952
Gross unrealized gains	826,009	299,650
Gross unrealized losses - less than 12 months	0	(835)
Gross unrealized loss - more than 12 months	0	0
Estimated fair value	8,194,824	4,124,767
Net unrealized gains	826,009	298,815
Fixed-Maturity Securities Political Subdivisions Of States Territories And Possessions [Member]
Cost or amortized cost	998,428	998,619
Gross unrealized gains	50,917	51,021
Gross unrealized losses - less than 12 months	0	0
Gross unrealized loss - more than 12 months	0	0
Estimated fair value	1,049,345	1,049,640
Net unrealized gains	50,917	51,021
Fixed-Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous [Member]
Cost or amortized cost	5,640,792	2,097,783
Gross unrealized gains	455,378	97,627
Gross unrealized losses - less than 12 months	0	(835)
Gross unrealized loss - more than 12 months	0	0
Estimated fair value	6,096,170	2,194,575
Net unrealized gains	455,378	96,792
Held-to-Maturity Securities US Treasury Securities [Member]
Cost or amortized cost	729,595	729,550
Gross unrealized gains	319,714	151,002
Gross unrealized losses - less than 12 months	0	0
Gross unrealized loss - more than 12 months	0	0
Estimated fair value	1,049,309	880,552
Net unrealized gains	$ 319,714	$ 151,002

Investments (Details 4) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Amortized cost	$ 7,368,815	$ 3,825,952
Estimated fair value	8,194,824	4,124,767
Less Than One Year [Member]
Amortized cost	0	500,000
Estimated fair value	0	499,165
One To Five Years [Member]
Amortized cost	2,598,193	2,099,268
Estimated fair value	2,777,936	2,215,640
Five To Ten Years [Member]
Amortized cost	1,502,603	620,134
Estimated fair value	1,727,316	655,923
More Than 10 Years [Member]
Amortized cost	3,268,019	606,550
Estimated fair value	$ 3,689,572	$ 754,039

Investments (Details 5) - USD ($)	12 Months Ended
Investments (Details 5) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Income:
Fixed-maturity securities	$ 5,533,047	$ 5,943,889
Equity securities	1,159,507	930,004
Cash and cash equivalents	91,603	337,602
Total	6,784,157	7,211,495
Expenses:
Investment expenses	278,554	342,149
Net investment income	$ 6,505,603	$ 6,869,346

Investments (Details 6) - USD ($)	12 Months Ended
Investments (Details 6) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Fixed-maturity securities:
Gross realized gains	$ 1,108,159	$ 11,608
Gross realized losses	(327,890)	(134,533)
Total fixed-maturity securities	780,269	(122,925)
Equity securities:
Gross realized gains	832,394	316,924
Gross realized losses	(780,245)	(165,154)
Total equity securities	52,149	151,770
Net realized gains	832,418	28,845
Equity securities
Gross gains	41,517	3,832,486
Gross losses	(217,032)	0
Total equity securities	(175,515)	3,832,486
Other investments:
Gross gains	933,713	729,688
Gross losses	0	0
Total other investments	933,713	729,688
Net unrealized gains	758,198	4,562,174
Net gains on investments	$ 1,590,616	$ 4,591,019

Investments (Details 7) - USD ($)	12 Months Ended
Investments (Details 7) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Fixed-Maturity Securities Political Subdivisions Of States Territories And Possessions [Member]
Estimated fair value - less than 12 months	$ 0	$ 3,067,428
Unrealized losses - less than 12 months	0	(11,316)
Number of positions held - less than 12 months	0	3
Estimated fair value - 12 months or more	0	0
Unrealized losses - 12 months or more	0	0
Number of positions held - 12 months or more	0	0
Estimated fair value - total	0	3,067,428
Unrealized losses - total	0	(11,316)
Fixed-Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous [Member]
Estimated fair value - less than 12 months	1,006,901	3,730,478
Unrealized losses - less than 12 months	(13,216)	(16,685)
Number of positions held - less than 12 months	1	7
Estimated fair value - 12 months or more	0	1,300,915
Unrealized losses - 12 months or more	0	(13,473)
Number of positions held - 12 months or more	0	3
Estimated fair value - total	1,006,901	5,031,393
Unrealized losses - total	(13,216)	(30,158)
Fixed Maturity Securities Residential Mortgage and other asset backed securities [Member]
Estimated fair value - less than 12 months	6,137,522	5,862,636
Unrealized losses - less than 12 months	(7,371)	(68,793)
Number of positions held - less than 12 months	5	5
Estimated fair value - 12 months or more	3,735,732	13,534,768
Unrealized losses - 12 months or more	(111,947)	(276,451)
Number of positions held - 12 months or more	10	21
Estimated fair value - total	9,873,254	19,397,404
Unrealized losses - total	(119,318)	(345,244)
Fixed Maturity Securities Total Fixed Maturity Securities [Member]
Estimated fair value - less than 12 months	7,144,423	12,660,542
Unrealized losses - less than 12 months	(20,587)	(96,794)
Number of positions held - less than 12 months	6	15
Estimated fair value - 12 months or more	3,735,732	14,835,683
Unrealized losses - 12 months or more	(111,947)	(289,924)
Number of positions held - 12 months or more	10	24
Estimated fair value - total	10,880,155	27,496,225
Unrealized losses - total	(132,534)	(386,718)
U.S. Treasury Securities and Obligations of U.S. Government [Member]
Estimated fair value - less than 12 months	0	0
Unrealized losses - less than 12 months	0	0
Number of positions held - less than 12 months	0	0
Estimated fair value - 12 months or more	0	0
Unrealized losses - 12 months or more	0	0
Number of positions held - 12 months or more	0	0
Estimated fair value - total	0	0
Unrealized losses - total	$ 0	$ 0

Investments (Details Narrative) - USD ($)	12 Months Ended
Investments (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Proceeds from the sale and redemption of fixed-maturity securities held-to-maturity	$ 500,000	$ 400,000
Sale - equity securities	11,096,028	5,458,953
Proceeds from the sale or maturity of fixed-maturity securities available-for-sale	35,845,934	16,567,284
Estimated fair value	3,518,626	2,584,913
KICO [Domain]
Estimated fair value	$ 11,391,000	$ 7,284,000

Fair Value Measurements (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Political subdivisions of states, territories and possessions	$ 5,643,102	$ 9,321,812
U.S. Treasury securities and obligations of U.S. government corporations and agencies	3,049,900	7,061,100
Corporate and other bonds industrial and miscellaneous	120,194,329	125,622,039
Residential mortgage and other asset backed securities	28,661,941	26,231,230
Total fixed maturities	157,549,272	168,236,181
Equity securities	34,413,313	24,661,382
Total investments	191,962,585	192,897,563
Level 1 [Member]
Political subdivisions of states, territories and possessions	0	0
U.S. Treasury securities and obligations of U.S. government corporations and agencies	3,049,900	7,061,100
Corporate and other bonds industrial and miscellaneous	118,123,890	123,010,772
Residential mortgage and other asset backed securities	0	0
Total fixed maturities	121,173,790	130,071,872
Equity securities	34,413,313	24,661,382
Total investments	155,587,103	154,733,254
Level 2 [Member]
Political subdivisions of states, territories and possessions	5,643,102	9,321,812
U.S. Treasury securities and obligations of U.S. government corporations and agencies	0	0
Corporate and other bonds industrial and miscellaneous	2,070,439	2,611,267
Residential mortgage and other asset backed securities	28,661,941	26,231,230
Total fixed maturities	36,375,482	38,164,309
Equity securities	0	0
Total investments	36,375,482	38,164,309
Level 3 [Member]
Political subdivisions of states, territories and possessions	0	0
U.S. Treasury securities and obligations of U.S. government corporations and agencies	0	0
Corporate and other bonds industrial and miscellaneous	0	0
Residential mortgage and other asset backed securities	0	0
Total fixed maturities	0	0
Equity securities	0	0
Total investments	$ 0	$ 0

Fair Value Measurements (Details 1) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Hedge fund investments	$ 3,518,626	$ 2,584,913
Hedge Fund [Member]
Hedge fund investments	$ 3,518,626	$ 2,584,913

Fair Value Measurements (Details 2) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Senior Notes due 2022	$ 27,272,727	$ 27,313,994
Level 1 [Member]
Senior Notes due 2022	0	0
Level 2 [Member]
Senior Notes due 2022	27,272,727	27,313,994
Level 3 [Member]
Senior Notes due 2022	$ 0	$ 0

Fair Value of Financial Instruments and Real Estate (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Reinsurance receivables, net	$ 282,000	$ 19,638,000
Reinsurance balances payable	6,979,735	11,714,724
Carrying Value [Member]
Fixed-maturity securities held-to-maturity	7,368,815	3,825,952
Cash and cash equivalents	19,463,742	32,391,485
Premiums receivable, net	14,020,716	12,706,411
Reinsurance receivables, net	45,460,729	40,750,538
Real estate, net of accumulated depreciation	2,219,999	2,292,743
Reinsurance balances payable	6,979,735	11,714,724
Fair Value [Member]
Fixed-maturity securities held-to-maturity	8,194,824	4,124,767
Cash and cash equivalents	19,463,742	32,391,485
Premiums receivable, net	14,020,716	12,706,411
Reinsurance receivables, net	45,460,729	40,750,538
Real estate, net of accumulated depreciation	2,705,000	2,705,000
Reinsurance balances payable	$ 6,979,735	$ 11,714,724

Intangible Assets (Details) - USD ($)	12 Months Ended
Intangible Assets (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Gross Carrying Value	$ 4,850,000	$ 4,850,000
Accumulated Amortization	4,350,000	4,350,000
Net Carrying Amount	500,000	500,000
Insurance license [Member]
Gross Carrying Value	500,000	500,000
Accumulated Amortization	0	0
Net Carrying Amount	500,000	500,000
Other identifiable intangibles [Member]
Gross Carrying Value	950,000	950,000
Accumulated Amortization	950,000	950,000
Net Carrying Amount	$ 0	$ 0
Useful Life (in yrs)	7 years	7 years
Customer relationships [Member]
Gross Carrying Value	$ 3,400,000	$ 3,400,000
Accumulated Amortization	3,400,000	3,400,000
Net Carrying Amount	$ 0	$ 0
Useful Life (in yrs)	10 years	10 years

Intangible Assets (Details Narrative) - USD ($)	12 Months Ended
Intangible Assets (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Intangibles Assets
Amortization expense, related to intangibles	$ 0	$ 170,000

Reinsurance (Details) - USD ($)	5 Months Ended	6 Months Ended		7 Months Ended	12 Months Ended			13 Months Ended
Reinsurance (Details) - USD ($)	Dec. 14, 2019	Jun. 30, 2021	Dec. 30, 2020	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2020
Catastrophe [Member]
Initial loss subject to personal lines quota share treaty	$ 0		$ 7,500,000	$ 7,500,000			$ 5,000,000
Risk retained per catastrophe occurrence	7,500,000	$ 10,000,000	8,125,000	5,625,000			4,500,000
Catastrophe loss coverage in excess of quota share coverage	$ 602,500,000	$ 475,000,000	$ 475,000,000	$ 602,500,000			$ 445,000,000
Reinstatement premium protection	Yes	Yes	Yes	Yes			Yes
Commercial Lines [Member]
Risk retained on initial $1,000,000 of losses (7)					$ 750,000	$ 750,000	$ 750,000
Losses per occurrence subject to quota share reinsurance coverage					4,500,000	4,500,000	4,500,000
In excess of					750,000	750,000	750,000
Total reinsurance coverage per occurrence					3,750,000	3,750,000	3,750,000
Excess of loss coverage above quota share coverage					3,750,000	3,750,000	$ 3,750,000
Personal Lines
Percent ceded	0.00%						10.00%	25.00%
Risk retained on initial $1,000,000 of losses (7)	$ 1,000,000	$ 1,000,000	$ 750,000	$ 750,000			$ 900,000
Losses per occurrence subject to quota share reinsurance coverage	0	8,000,000	1,000,000	1,000,000			1,000,000
Excess of loss coverage and facultative facility coverage	9,000,000	8,000,000	8,000,000	9,000,000			9,000,000
In excess of	1,000,000	1,000,000	1,000,000	1,000,000			1,000,000
Total reinsurance coverage per occurrence	9,000,000	8,000,000	8,250,000	9,250,000			9,100,000
Losses per occurrence subject to reinsurance coverage	$ 10,000,000	$ 8,000,000	$ 9,000,000	$ 10,000,000			$ 10,000,000
Expiration date			Dec. 30, 2020	Dec. 30, 2020			Jun. 30, 2019
Expiration date- personal lines	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020			Jun. 30, 2019
Personal Umbrella
Risk retained on initial $1,000,000 of losses (7)					300,000	100,000	$ 100,000
Losses per occurrence subject to quota share reinsurance coverage					5,000,000	5,000,000	5,000,000
Total reinsurance coverage per occurrence					$ 4,700,000	$ 4,900,000	$ 4,900,000
Expiration date					Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Percent ceded - first million dollars of coverage					90.00%	90.00%	90.00%
Percent ceded - excess of one million dollars of coverage					95.00%	100.00%	100.00%
Commercial Umbrella
Risk retained on initial $1,000,000 of losses (7)					$ 0	$ 0	$ 100,000
Losses per occurrence subject to quota share reinsurance coverage					0	0	5,000,000
Total reinsurance coverage per occurrence					$ 0	$ 0	$ 4,900,000
Expiration date							Jun. 30, 2019
Percent ceded - first million dollars of coverage					0.00%	0.00%	90.00%
Percent ceded - excess of one million dollars of coverage					0.00%	0.00%	100.00%

Reinsurance (Details 1) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Unpaid Losses	$ 20,154,000	$ 15,728,000
Paid Losses	14,787,000	5,385,000
Total	34,941,000	21,112,000
Security	10,818,000	5,995,000
Others
Unpaid Losses	2,598,000	2,964,000
Paid Losses	884,000	471,000
Total	3,482,000	3,435,000
Security	732,000	0
Cavello Bay Reinsurance Limited
Unpaid Losses	2,850,000	4,036,000
Paid Losses	3,405,000	2,427,000
Total	6,255,000	6,463,000
Security	10,086,000	5,995,000
Swiss Reinsurance America Corporation
Unpaid Losses	7,778,000	4,418,000
Paid Losses	5,840,000	1,336,000
Total	13,618,000	5,754,000
Security	0	0
Allied World Assurance Company
Unpaid Losses	2,019,000	760,000
Paid Losses	1,761,000	170,000
Total	3,780,000	930,000
Security	0	0
SCOR Reinsurance Company
Unpaid Losses		394,000
Paid Losses		458,000
Total		852,000
Security		0
Hanover Rueck SE
Unpaid Losses	4,909,000	3,156,000
Paid Losses	2,897,000	522,000
Total	7,806,000	3,678,000
Security	$ 0	$ 0

Reinsurance (Details 2) - USD ($)	12 Months Ended
Reinsurance (Details 2) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Reinsurance
Provisional ceding commissions earned	$ 14,119,180	$ 5,446,370
Contingent ceding commissions earned	83,173	(795,519)
Ceding commission revenue	$ 14,202,353	$ 4,650,851

Reinsurance (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
Reinsurance (Details Narrative) - USD ($)	Dec. 31, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 27, 2018
Reinsurance receivables	$ 282,000		$ 282,000			$ 19,638,000
Reinsurance balances payable	$ 2,604,000		2,604,000			$ 2,886,000
Catastrophe loss coverage in excess of quota share coverage, descriptions	For the period July 1, 2020 through December 30, 2020, there was no reinsurance coverage for the $2,500,000 gap between quota share limit of $7,500,000 and first $10,000,000 layer of catastrophe coverage (see note (7) below).
Irrevocable letter of credit							$ 732,000
Catastrophe [Member]
Reinstatement of premium protection, amount		$ 70,000,000		$ 292,500,000	$ 210,000,000
Excess of catastrophe coverage		$ 10,000,000		$ 7,500,000	$ 5,000,000
Personal Lines
Single risk coverage			10,000,000
Personal Lines \| Minimum [Member]
Direct loss			3,500,000
Personal Lines \| Maximum [Member]
Direct loss			$ 10,000,000

Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue
Net deferred policy acquisition costs, net of ceding commission revenue, beginning of year	$ 12,898,980	$ 15,221,060
Cost incurred and deferred:
Commission and brokerage	32,279,848	32,541,094
Other underwriting and policy acquisition costs	8,526,003	9,423,340
Ceding commission revenue	(13,680,042)	(3,754,889)
Net deferred policy acquisition costs	27,125,809	38,209,545
Return of deferred ceding commission revenue due to reduction of quota share	7,202,741	0
Additional deferred ceding commission revenue due to inceprion of quota share	0	(6,740,202)
Amortization	(27,178,534)	(33,791,423)
Deferred acquisition costs	7,150,016	(2,322,080)
Net deferred policy acquisition costs, net of ceding commission revenue, ending of year	$ 20,048,996	$ 12,898,980

Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue (Details 1) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred Policy Acquisition Costs and Deferred Ceding Commission Revenue
Deferred policy acquisition costs	$ 20,142,515	$ 20,634,378
Deferred ceding commission revenue	(93,519)	(7,735,398)
Balance at end of period	$ 20,048,996	$ 12,898,980

Debt (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Long-term debt, net	$ 29,647,611	$ 29,471,431
Issuance costs
Long-term debt, net	(287,506)	(431,244)
Discount
Long-term debt, net	(64,883)	(97,325)
Senior Notes [Member]
Long-term debt, net	$ 30,000,000	$ 30,000,000

Debt (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
Debt (Details Narrative) - USD ($)	Dec. 19, 2017	Dec. 31, 2020	Dec. 31, 2019
Advances limit, description		Advances are limited to 85% of the amount of available collateral, which was approximately $9,682,000 as of December 31, 2020
Senior Notes [Member]
Debt instrument, face amount	$ 30,000,000
Debt instrument, maturity date	Dec. 30, 2022
Debt instrument, interest rate	5.50%
Proceeds from issuance of unsecured notes	$ 29,121,630
Debt instrument, unamortized discount	163,200
Debt instrument, transaction cost	$ 715,170
Debt instrument, yield percentage	5.67%
Net proceeds to contribute capital	$ 28,256,335
Federal Home Loan Bank of New York [Member]
Advances limit, description		Advances are limited to 5% of KICO’s net admitted assets as of the previous quarter and are due and payable within one year of borrowing
Maximum allowable advances		$ 12,066,000
Investment fair value		$ 11,200	$ 15,180

Property and Equipment (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Cost	$ 18,104,754	$ 14,778,683
Accumulated Depreciation	(10,021,631)	(7,158,047)
Net	8,083,123	7,620,636
Automobiles [Member]
Cost	99,352	99,352
Accumulated Depreciation	(51,473)	(25,109)
Net	47,879	74,243
Land [Member]
Cost	652,437	652,437
Accumulated Depreciation	0	0
Net	652,437	652,437
Building
Cost	2,344,188	2,344,188
Accumulated Depreciation	(760,302)	(663,200)
Net	1,583,886	1,680,988
Furniture office equipment
Cost	802,325	802,325
Accumulated Depreciation	(715,819)	(656,204)
Net	86,506	146,121
Leasehold improvements
Cost	18,996	18,996
Accumulated Depreciation	(2,712)	(226)
Net	16,284	18,770
Computer equipment and software
Cost	14,187,456	10,861,385
Accumulated Depreciation	(8,491,325)	(5,813,308)
Net	$ 5,696,131	$ 5,048,077

Property and Equipment (Details Narrative) - USD ($)	12 Months Ended
Property and Equipment (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Property and Equipment
Depreciation expense	$ 2,864,583	$ 2,375,946

Property and Casualty Insurance Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Premiums Written
Direct	$ 169,317,904	$ 171,214,091
Assumed	0	939
Ceded	(42,255,383)	(45,635,899)
Net	127,062,521	125,579,131
Changes In Unearned Premiums
Direct	373,966	(11,350,864)
Assumed	0	(243)
Ceded	(19,355,858)	13,395,418
Net	18,981,892	2,044,311
Premiums Earned
Direct	169,691,870	159,863,227
Assumed	0	696
Ceded	(61,611,241)	(32,240,481)
Net	$ 108,080,629	$ 127,623,442

Property and Casualty Insurance Activity (Details 1) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Unearned premiums	$ 90,009,272	$ 90,383,238
Reinsurance Receivables
Case-basis reserves	15,432,347	12,894,469
Loss adjustment expenses	1,882,419	1,416,686
IBNR reserves	2,839,486	1,417,070
Recoverable on unpaid losses	20,154,252	15,728,225
Recoverable on paid losses	14,787,037	5,384,325
Total loss and loss adjustment expenses	34,941,289	21,112,550
Unearned premiums	282,131	19,637,988
Receivables - reinsurance contracts	10,237,309
Total reinsurance receivables	45,460,729	40,750,538
Gross Liability
Case-basis reserves	47,657,198	48,688,643
Loss adjustment expenses	13,610,284	12,606,236
IBNR reserves	21,533,746	19,203,732
Recoverable on paid losses	0	0
Total loss and loss adjustment expenses	$ 82,801,228	$ 80,498,611

Property and Casualty Insurance Activity (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property and Casualty Insurance Activity
Balance at beginning of period	$ 80,498,611	$ 56,197,106
Less reinsurance recoverables	(15,728,224)	(15,671,247)
Net balance, beginning of period	64,770,387	40,525,859
Incurred related to:
Current year	66,389,907	79,044,301
Prior years	41,165	11,138,023
Total incurred	66,431,072	90,182,324
Paid related to:
Current year	41,100,578	42,861,207
Prior years	27,453,904	23,076,589
Total paid	68,554,482	65,937,796
Net balance at end of period	62,646,977	64,770,387
Add reinsurance recoverables	20,154,251	15,728,224
Balance at end of period	$ 82,801,228	$ 80,498,611

Property and Casualty Insurance Activity (Details 3)	12 Months Ended
Property and Casualty Insurance Activity (Details 3)	Dec. 31, 2020 USD ($) integer
2011
2011 incurred claims	$ 7,603,000
IBNR	$ 0
Cumulative Number of Reported Claims \| integer	1,914
2012
2011 incurred claims	$ 7,678,000
IBNR	$ 13,000
Cumulative Number of Reported Claims \| integer	4,704
2012 incurred claims	$ 9,539,000
2013
2011 incurred claims	8,618,000
IBNR	$ 5,000
Cumulative Number of Reported Claims \| integer	1,563
2012 incurred claims	$ 9,344,000
2013 incurred claims	10,728,000
2014
2011 incurred claims	9,440,000
IBNR	$ 257,000
Cumulative Number of Reported Claims \| integer	2,138
2012 incurred claims	$ 10,278,000
2013 incurred claims	9,745,000
2014 incurred claims	14,193,000
2015
2011 incurred claims	9,198,000
IBNR	$ 312,000
Cumulative Number of Reported Claims \| integer	2,556
2012 incurred claims	$ 10,382,000
2013 incurred claims	9,424,000
2014 incurred claims	14,260,000
2015 incurred claims	22,340,000
2016
2011 incurred claims	9,066,000
IBNR	$ 461,000
Cumulative Number of Reported Claims \| integer	2,878
2012 incurred claims	$ 10,582,000
2013 incurred claims	9,621,000
2014 incurred claims	14,218,000
2015 incurred claims	21,994,000
2016 incurred claims	26,062,000
2017
2011 incurred claims	9,144,000
IBNR	$ 654,000
Cumulative Number of Reported Claims \| integer	3,391
2012 incurred claims	$ 10,790,000
2013 incurred claims	10,061,000
2014 incurred claims	14,564,000
2015 incurred claims	22,148,000
2016 incurred claims	24,941,000
2017 incurred claims	31,605,000
2018
2011 incurred claims	9,171,000
IBNR	$ 1,928,000
Cumulative Number of Reported Claims \| integer	4,208
2012 incurred claims	$ 10,791,000
2013 incurred claims	10,089,000
2014 incurred claims	15,023,000
2015 incurred claims	22,491,000
2016 incurred claims	24,789,000
2017 incurred claims	32,169,000
2018 incurred claims	54,455,000
2019
2011 incurred claims	9,127,000
IBNR	$ 9,547,000
Cumulative Number of Reported Claims \| integer	4,442
2012 incurred claims	$ 11,015,000
2013 incurred claims	10,607,000
2014 incurred claims	16,381,000
2015 incurred claims	23,386,000
2016 incurred claims	27,887,000
2017 incurred claims	35,304,000
2018 incurred claims	56,351,000
2019 incurred claims	75,092,000
2020
2011 incurred claims	9,128,000
IBNR	$ 11,421,000
Cumulative Number of Reported Claims \| integer	5,596
2012 incurred claims	$ 10,885,000
2013 incurred claims	10,495,000
2014 incurred claims	16,428,000
2015 incurred claims	23,291,000
2016 incurred claims	27,966,000
2017 incurred claims	36,160,000
2018 incurred claims	58,441,000
2019 incurred claims	72,368,000
2020 incurred claims	63,083,000
Total incurred claims	$ 328,244,000

Property and Casualty Insurance Activity (Details 4) $ in Thousands	Dec. 31, 2020 USD ($)
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented	$ 59,953
All outstanding liabilities before 2011, net of reinsurance	94
Liabilities for claims and claim adjustment expenses, net of reinsurance	60,047
2011
2011	3,740
2012
2011	5,117
2012	3,950
2013
2011	6,228
2012	5,770
2013	3,405
2014
2011	7,170
2012	7,127
2013	5,303
2014	5,710
2015
2011	8,139
2012	8,196
2013	6,633
2014	9,429
2015	12,295
2016
2011	8,540
2012	9,187
2013	7,591
2014	10,738
2015	16,181
2016	15,364
2017
2011	8,702
2012	10,236
2013	8,407
2014	11,770
2015	18,266
2016	19,001
2017	16,704
2018
2011	8,727
2012	10,323
2013	9,056
2014	13,819
2015	19,984
2016	21,106
2017	24,820
2018	32,383
2019
2011	8,789
2012	10,428
2013	9,717
2014	14,901
2015	21,067
2016	23,974
2017	28,693
2018	44,516
2019	40,933
2020
2011	9,106
2012	10,451
2013	10,016
2014	15,491
2015	22,104
2016	25,234
2017	31,393
2018	50,553
2019	54,897
2020	39,045
Total	$ 268,291

Property and Casualty Insurance Activity (Details 5) $ in Thousands	Dec. 31, 2020 USD ($)
Property and Casualty Insurance Activity
Liabilities for allocated loss and loss adjustment expenses, net of reinsurance	$ 60,047
Total reinsurance recoverable on unpaid claims	20,154
Unallocated loss adjustment expenses	2,600
Total gross liability for loss and LAE reserves	$ 82,801

Property and Casualty Insurance Activity (Details 6)	Dec. 31, 2020
Property and Casualty Insurance Activity
Year One	47.20%
Year Two	18.30%
Year Three	10.30%
Year Four	8.70%
Year Five	8.20%
Year Six	6.20%
Year Seven	3.10%
Year Eight	1.40%
Year Nine	0.50%
Year Ten	3.50%

Property and Casualty Insurance Activity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Advance premiums	$ 2,660,354	$ 3,191,512
Incurred losses and loss adjustment expenses are net of reinsurance recoveries under reinsurance contracts	27,951,005	12,769,015
Prior year loss development	41,165	$ 11,138,023
2012
Incurred claim from superstrom sandy	$ 3,406

Stockholders Equity (Details)	12 Months Ended
Stockholders Equity (Details)	Dec. 31, 2020	Dec. 31, 2019
Stockholders' Equity
Dividend Yield	3.14%	2.87%
Volatility	37.69%	36.11%
Risk-Free Interest Rate	1.40%	1.61%
Expected Life	2 years 9 months	3 years 3 months

Stockholders Equity (Details 1) - Equity Option [Member]	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares
Aggregate Intrinsic value
Number of options outstanding, beginning \| shares	82,000
Number of options outstanding, granted \| shares	74,523
Number of options outstanding, forfeited \| shares	(36,557)
Number of options outstanding, ending \| shares	119,966
Number of options outstanding, vested and exercisable \| shares	50,000
Weighted Average Remaining Contractual, Beginning balance	3 years 4 months 17 days
Weighted Average Remaining Contractual term Granted	4 years 29 days
Weighted Average Remaining Contractual term, Ending balance	3 years 6 months 18 days
Weighted Average Remaining Contractual life, vested and exercisable	1 year 18 days
Weighted average exercise price, Beginning balance	$ 8.61
Weighted average exercise price, granted	7.96
Weighted average exercise price, Forfeited	8.43
Weighted average exercise price, Exercised	0
Weighted average exercise price, Ending balance	8.26
Weighted Average Price per share outstanding, vested and exercisable	$ 8.45
Aggregate Intrinsic value, begining balance \| $	$ 0
Aggregate Intrinsic Value , Forfeited \| $	(308,340)
Aggregate Intrinsic Value , vested and exercisable \| $	$ 0

Stockholders Equity (Details 2) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2020 USD ($) $ / shares shares
Number of options outstanding, beginning \| shares	213,929
Granted shares \| shares	242,974
Vested shares \| shares	(66,673)
Forfeited shares \| shares	(19,266)
Number of options outstanding, ending \| shares	370,964
Weighted Average Grant Date Fair Value per Share
Weighted Average Grant Date Fair Value per Share, beginning balance \| $ / shares	$ 16.51
Weighted Average Grant Date Fair Value per Share, granted \| $ / shares	7.66
Weighted Average Grant Date Fair Value per Share, vested \| $ / shares	16.97
Weighted Average Grant Date Fair Value per Share, forfeited \| $ / shares	15.18
Weighted Average Grant Date Fair Value per Share, ending balance \| $ / shares	$ 9.96
Aggregate Fair Value
Aggregate Fair Value, beginning balance \| $	$ 3,554,174
Aggregate Fair Value, granted \| $	1,860,525
Aggregate Fair Value, vested \| $	(1,331,254)
Aggregate Fair Value, Forfeited \| $	(292,455)
Aggregate Fair Value, ending balance \| $	$ 3,990,999

Stockholders Equity (Details Narrative) - USD ($)	12 Months Ended
Stockholders Equity (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Aug. 05, 2020
Dividends declared	$ 1,957,142	$ 3,501,366
Stock based compensation for stock options	$ 68,000	$ 30,000
Stock-based compensation expense, estimated forfeitures rate	16.00%	17.00%
Stock based compensation for grants	$ 1,703,000	$ 1,472,000
Weighted-average vesting period	1 year 3 months 7 days
Closing price of common stock	$ 6.65
Stock option net forfeited	$ 0
Fair value of unamortized compensation cost	$ 64,000
Proceeds from issuance of cost		$ 23,550
Stock issued during the period		3,000
Common stock shares authorized	20,000,000	20,000,000
Board Of Directors [Member] \| 2014 Plan
Common stock shares authorized	700,000		1,400,000
Shares reserved	843,316
Black - Scholes Option Pricing Model [Member]
Dividend per share	$ 1.66	$ 1.91

Statutory Financial Information and Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Dividends paid	$ 6,000,000	$ 7,000,000
Statutory basis net loss	(1,724,180)	(4,519,183)
Contribution surplus		3,256,335
Statutory basis surplus	85,595,339	$ 93,844,197
February 25, 2021 [Member]
Dividends paid	$ 1,000,000

Income Taxes (Details) - USD ($)	12 Months Ended
Income Taxes (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Current federal income tax expense (benefit)	$ (5,366,759)	$ 174,779
Current state income tax expense (benefit)	(2,736)	238
Deferred federal and state income tax expense (benefit)	3,109,295	(1,991,208)
Income tax benefit	$ (2,260,200)	$ (1,816,191)

Income Taxes (Details 1) - USD ($)	12 Months Ended
Income Taxes (Details 1) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Computed expected tax expense	$ (270,440)	$ (1,634,334)
State taxes, net of Federal benefit	(233,752)	(247,909)
State valuation allowance	292,087	261,573
Benefit of higher tax brackets in NOL carryback - current year	(754,829)	0
Benefit of higher tax brackets in NOL carryback - Prior year	(1,274,465)	0
Permanent differences
Dividends received deduction	(118,113)	(97,631)
Non-taxable investment income	(55,752)	(39,901)
Excess benefit from stock-based compensation	0	184
Stock-based compensation	125,923	80,453
Other permanent differences	46,108	(15,961)
Prior year tax matters	(77,625)	(91,748)
Other	60,658	(30,917)
Income tax benefit, as reported	$ (2,260,200)	$ (1,816,191)
Benefit of higher tax brackets in NOL carryback - current year	58.60%	0.00%
Benefit of higher tax brackets in NOL carryback - Prior year	99.00%	0.00%
Computed expected tax expense	21.00%	21.00%
State taxes, net of Federal benefit	18.20%	3.20%
State valuation allowance	(22.70%)	(3.40%)
Dividends received deduction	9.20%	1.30%
Non-taxable investment income	4.30%	0.50%
Excess benefit from stock-based compensation	0.00%	0.00%
Stock-based compensation	(9.80%)	(1.00%)
Other permanent differences	(3.60%)	0.20%
Prior year tax matters	6.00%	1.20%
Other	(4.70%)	0.30%
Income tax benefit, as reported, percentage	175.50%	23.30%

Income Taxes (Details 2) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred tax asset:
Net operating loss carryovers (1)	$ 0	$ 1,586,247
Claims reserve discount	838,030	839,959
Unearned premium	3,880,275	3,105,344
Deferred ceding commission revenues	19,639	1,624,434
Other	648,691	462,019
Total deferred tax assets	5,386,635	7,618,003
Deferred tax liability:
Investment in KICO (2)	759,543	759,543
Deferred acquisition costs	4,229,928	4,333,219
Intangibles	105,000	105,000
Depreciation and amortization	954,446	312,298
Net unrealized gains (losses) of securities	3,494,631	1,796,891
Total deferred tax liabilities	9,543,548	7,306,951
Net deferred income tax (liability) asset	$ (4,156,913)	$ 311,052

Income Taxes (Details 3) - USD ($)	12 Months Ended
Income Taxes (Details 3) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Federal only, current year (A)	$ 1,200,056	$ 1,517,866
NOL carried back	(1,200,056)	(1,517,866)
Federal only, current year	0	0
State only (B)	$ 1,815,546	1,616,568
Expiration of net operating loss carryforward	Dec. 31, 2040
Valuation allowance	$ (1,815,546)	(1,548,187)
State only, net of valuation allowance	0	68,381
Total deferred tax asset from net operating loss carryovers	$ 0	$ 68,381

Income Taxes (Details 4) - USD ($)	12 Months Ended
Income Taxes (Details 4) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Decrease in net deferred income tax assets	$ 4,467,965
Deferred tax expense allocated to other comprehensive income	1,358,670
Deferred income tax expense	$ 3,109,295	$ (1,991,208)

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
Income Taxes (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2017
Corporate tax rate	21.00%	21.00%	34.00%	34.00%
Net operating loss carryover	$ 27,931,000	$ 24,901,000
July 1, 2009 [Member]
Consideration exchange principal amount	$ 3,750,000
Acquired equity interest rate	100.00%
Original purchase surplus notes	$ 2,921,319
Untaxed interest	1,169,000
Deferred tax liability reduced					$ 759,543
Deferred tax liability	$ 759,543

Employee Benefit Plans (Details Narrative) - USD ($)	12 Months Ended
Employee Benefit Plans (Details Narrative) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Employee Benefit Plans
Contribution expense	$ 309,000	$ 305,000
Discretionary bonuses expense	516,000
Incurred expense		457,000
Deferred compensation liability	763,789	599,274
Voluntary contributions	$ 4,473	$ 5,399

Commitments and Contingencies (Details) - USD ($)	12 Months Ended
Commitments and Contingencies (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Commitments and Contingencies
Operating leases	$ 245,188	$ 165,368
Short-term leases	0	0
Total lease cost	245,188	165,368
Cash payments included in the measurement of lease liability in operating cash flows	$ 255,626	$ 169,861
Discount rate	5.50%	5.50%
Remaining lease term in years	4 years 11 months 8 days	5 years 10 months 17 days

Commitments and Contingencies (Details 1)	Dec. 31, 2020 USD ($)
Commitments and Contingencies
2021	$ 264,571
2022	273,831
2023	283,415
2024	140,739
2025	94,799
Thereafter	98,117
Total undiscounted lease payments	1,155,472
Less: present value adjustment	187,003
Operating lease liability	$ 968,469

Commitments and Contingencies (Details Narrative) - USD ($)		1 Months Ended	12 Months Ended
	Oct. 14, 2019	Jan. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating lease right-of-use assets			$ 949,434	$ 1,157,554
Operating lease right-of-use liabilities			949,434	1,157,554
Rent expenses			$ 245,188	$ 165,368
January 2022 [Member]
Restricted stock issued			30,000
January, 2020 [Member] \| Second Anniversary [Member]
Restricted stock issued			17,191
January, 2020 [Member] \| Amended Employment Agreement [Member]
Restricted stock issued			157,431
Restricted stock issued value		$ 1,500,000	$ 1,250,000
2020, 2021, 2022 [Member]
Restricted stock issued			136,500
Dale A. Thatcher [Member] \| Relinquishment Agreement [Member]
Description of payments and benefits			$381,111 (representing the amount of base salary he would have received had he remained employed through March 31, 2020), (ii) $5,000 in full satisfaction for any bonus payments payable under the existing employment agreements, (iii) continuing group health coverage commencing on the Separation Date and ending on March 31, 2020, and (iv) continued vesting of all stock awards previously granted to Mr. Thatcher in his capacity as an executive officer but which were unvested as of the Separation Date
Severance payments			$ 20,000
Dale A. Thatcher [Member] \| Relinquishment Agreement [Member] \| March 14, 2021 [Member]
Unissued shares vested			11,905
Dale A. Thatcher [Member] \| Relinquishment Agreement [Member] \| January 1, 2022 [Member]
Unissued shares vested			14,076
Aggregate consideration payment			$ 280,406
Dale A. Thatcher [Member] \| Relinquishment Agreement [Member] \| January 1, 2021 [Member]
Unissued shares vested			14,077
Barry Goldstein, President, Chief Executive Officer and Executive Chairman of the Board [Member] \| Employment Agreement [Member]
Restricted stock issued			30,000
Salary	$ 500,000
Employment agreement description	Mr. Goldstein’s granted but unvested restricted stock awards will vest. Mr. Goldstein would be entitled, under certain circumstances, to a payment equal to 3.82 times his then annual salary, the target LTC payment of $1,890,000 and his accrued 6% bonus in the event of the termination of his employment within eighteen months following a change of control of the Company
Description Annual Bonus	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), net unrealized gains (losses) on equity securities and net realized gains (losses) on investments, up to a maximum of 2.5 times his base salary. In addition, pursuant to the Amended Employment Agreement, Mr. Goldstein is entitled to receive a long-term compensation (“LTC”) award of between $945,000 and $2,835,000 based on a specified minimum increase in the Company’s adjusted book value per share
Meryl Golden, Chief Operating Officer [Member] \| Golden Emloyment Agreement [Member]
Salary			$ 500,000
Option purchase			50,000

Earnings Per Common Share (Details) - USD ($)	12 Months Ended
Earnings Per Common Share (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Earnings (loss) per common share:
Weighted average number of shares outstanding	10,721,342	10,773,623
Effect of dilutive securities, common share equivalents: Stock options	$ 0	$ 0
Effect of dilutive securities, common share equivalents: Restricted stock awards	$ 9,395	$ 0
Weighted average number of shares outstanding, used for computing diluted earnings per share	10,730,737	10,773,623

Subsequent Events (Details Narrative) - USD ($)		1 Months Ended	12 Months Ended
Subsequent Events (Details Narrative) - USD ($)	Mar. 14, 2021	Jan. 27, 2021	Dec. 31, 2020	Mar. 15, 2021
Dale A. Thatcher [Member] \| Relinquishment Agreement [Member] \| January 1, 2021 [Member]
Unissued shares vested			14,077
Dale A. Thatcher [Member] \| Relinquishment Agreement [Member] \| January 1, 2022 [Member]
Unissued shares vested			14,076
Aggregate consideration payment			$ 280,406
Subsequent Event [Member] \| Dale A. Thatcher [Member] \| Relinquishment Agreement [Member] \| January 1, 2021 [Member]
Unissued shares vested	11,905	14,077
Subsequent Event [Member] \| Board Of Directors [Member] \| February 1, 2021 [Member]
Dividend				$ 0.04

Quarterly Financial Data (Unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Net premiums earned									$ 108,080,629	$ 127,623,442
Ceding commission revenue									14,202,353	4,650,851
Net investment income									6,505,603	6,869,346
Net gains on investments									1,590,616	4,591,019
Total revenues									131,369,751	145,119,966
Net income (loss)									$ 972,390	$ (5,966,353)
Basic earnings (loss) per share									$ 0.09	$ (0.55)
Diluted earnings (loss) per share									$ 0.09	$ (0.55)
Quarterly Financial Data [Member]
Net premiums earned	$ 26,981,242	$ 27,521,081	$ 26,636,856	$ 26,941,450	$ 32,606,264	$ 34,220,010	$ 31,201,279	$ 29,595,889	$ 108,080,629	$ 127,623,442
Ceding commission revenue	3,442,266	3,448,774	3,480,214	3,831,099	1,667,891	1,029,582	675,695	1,277,683	14,202,353	4,650,851
Net investment income	1,733,667	1,494,086	1,612,006	1,665,844	1,669,312	1,856,553	1,719,769	1,623,712	6,505,603	6,869,346
Net gains on investments	3,229,290	2,107,876	2,697,868	(6,444,418)	878,839	998,162	678,655	2,035,363	1,590,616	4,591,019
Total revenues	35,604,343	34,822,471	34,689,332	26,253,605	37,208,687	38,447,698	34,615,312	34,848,269	131,369,751	145,119,966
Loss and loss adjustment expenses	17,113,645	20,117,975	12,813,631	16,385,821	18,594,474	24,781,318	17,672,308	29,134,224	66,431,072	90,182,324
Commission expense and other underwriting expenses	14,166,078	14,383,144	14,086,013	14,617,718	14,663,720	14,153,559	12,720,317	12,975,718	57,252,953	54,513,314
Net income (loss)	$ 3,036,259	$ (1,227,856)	$ 4,608,190	$ (5,444,203)	$ 1,454,619	$ (1,725,162)	$ 1,639,380	$ (7,335,190)	$ 972,390	$ (5,966,353)
Basic earnings (loss) per share	$ 0.28	$ (0.12)	$ 0.43	$ (0.50)	$ 0.13	$ (0.16)	$ 0.15	$ (0.68)	$ 0.09	$ (0.55)
Diluted earnings (loss) per share	$ 0.28	$ (0.12)	$ 0.43	$ (0.50)	$ 0.13	$ (0.16)	$ 0.15	$ (0.68)	$ 0.09	$ (0.55)