Homeowners of America Holding 10-Q 13 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 12, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Entity Common Stock, Shares Outstanding		16,398,125
Entity Registrant Name	Homeowners of America Holding Corp
Entity Central Index Key	1,346,922
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Assets:
Cash and cash equivalents	$ 6,103,015	$ 5,648,278
Short-term investments	785,000	1,231,881
Restricted cash and investments	2,760,037	3,790,000
Restricted fixed-maturity securities, available-for-sale, at fair value (amortized cost $539,646 as of June 30, 2015 and $539,558 as of December 31, 2014)	542,426	539,654
Fixed-maturity securities, available-for-sale, at fair value (amortized cost $3,379,087 as of June 30, 2015 and $3,827,268 as of December 31, 2014)	3,376,841	3,827,245
Long-term investments	10,535,000	3,430,000
Accrued investment income	63,532	55,908
Due and deferred premiums	4,934,106	5,089,131
Balance due from reinsurers	78,158,571	54,157,528
Property, equipment and software, net	298,896	344,495
Deferred policy acquisition costs	8,743,454	7,897,806
Prepaid expenses and other	1,292,455	552,728
Deferred tax assets, net	1,995,898	1,517,935
Total assets	119,589,231	88,082,589
Liabilities:
Loss and loss adjustment expenses	28,203,815	15,009,506
Advance premiums	197,922	74,172
Ceded reinsurance premiums payable	9,776,550	4,342,874
Unearned premiums	44,692,517	40,021,934
Unearned ceding commissions	13,227,231	11,200,317
Commissions payable, reinsurers and agents	3,074,426	3,754,929
General and other accrued expenses payable	7,246,461	2,232,547
Income tax payable	431,894	0
Taxes, licenses and other fees payable	566,712	765,782
Total liabilities	107,417,528	77,402,061
Stockholders' equity:
Common stock, $0.0001 par value per share; 40,000,000 shares authorized; 17,708,125 shares issued and 16,398,125 shares outstanding as of June 30, 2015 and 17,479,852 shares issued and 16,168,852 shares outstanding as of December 31, 2014	1,640	1,617
Treasury stock, $0.0001 par value per share; 1,310,000 common shares as of June 30, 2015 and 1,311,000 common shares as of December 31, 2014	(131)	(131)
Additional paid-in-capital	6,377,824	6,209,265
Accumulated other comprehensive income	534	73
Retained earnings	5,791,836	4,469,704
Total stockholders' equity	12,171,703	10,680,528
Total liabilities and stockholders' equity	$ 119,589,231	$ 88,082,589

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Assets:
Restricted fixed-maturity securities, available for sale, amortized cost	$ 539,646	$ 539,558
Fixed-maturity securities, available for sale, amortized cost	$ 3,379,087	$ 3,827,268
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	17,708,125	17,479,852
Common stock, shares outstanding (in shares)	16,398,125	16,168,852
Treasury stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Treasury stock (in shares)	1,310,000	1,311,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Premiums earned	$ 19,877,533	$ 15,596,506	$ 38,311,214	$ 30,040,628
Ceded premiums	(18,569,573)	(14,346,738)	(35,812,963)	(27,493,194)
Net premiums earned	1,307,960	1,249,768	2,498,251	2,547,434
Policy fees	1,800,075	1,482,875	3,169,325	2,609,600
Ceding commissions and reinsurance profit share	5,600,193	3,941,032	10,994,573	7,297,230
Loss adjustment and other fee income	843,123	502,159	1,147,816	825,201
Investment income, net of investment expenses	31,834	1,794	47,966	9,242
Net realized investment gains	1,000	0	1,000	0
Total Revenue	9,584,185	7,177,628	17,858,931	13,288,707
Expenses:
Losses and loss adjustment expenses	2,463,601	1,085,163	3,140,771	1,436,139
Policy acquisition and other underwriting expenses	4,918,754	3,859,624	9,362,809	7,418,846
General and administrative expenses	1,710,306	1,480,743	3,308,044	2,950,466
Total Expenses	9,092,661	6,425,530	15,811,624	11,805,451
Income before income taxes	491,524	752,098	2,047,307	1,483,256
Provision (benefit) for income taxes:
Current	684,783	657,665	1,203,138	922,276
Deferred	(496,414)	(391,403)	(477,963)	(400,101)
Total income taxes	188,369	266,262	725,175	522,175
Net income	303,155	485,836	1,322,132	961,081
Cumulative preferred stock dividends	0	0	0	0
Net income available to common stockholders	$ 303,155	$ 485,836	$ 1,322,132	$ 961,081
Basic income per common share (in dollars per share)	$ 0.02	$ 0.03	$ 0.08	$ 0.06
Diluted income per common share (in dollars per share)	0.02	0.03	0.07	0.06
Cash dividend declared per common share (in dollars per share)	$ 0	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Income and Comprehensive Income [Abstract]
Net income	$ 303,155	$ 485,836	$ 1,322,132	$ 961,081
Change in unrealized gain (loss) on investments:
Unrealized gain (loss) arising from the period	(5,533)	5,152	1,143	5,152
Amounts reclassified from accumulated comprehensive income	(682)	0	(682)	0
Deferred income taxes on above change	0	0	0	0
Total other comprehensive income, net of income taxes	(6,215)	5,152	461	5,152
Comprehensive income	$ 296,940	$ 490,988	$ 1,322,593	$ 966,233

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income, Net of Tax [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2013	$ 1,583	$ (135)	$ 5,969,550	$ 0	$ 2,305,579	$ 8,276,577
Balance (in shares) at Dec. 31, 2013	15,831,140	1,350,000
Net income	$ 0	$ 0	0	0	961,081	961,081
Total other comprehensive income, net of income taxes	0	0	0	5,152	0	5,152
Common stock issued	$ 33	$ 4	170,243	0	0	170,280
Common stock issued (in shares)	327,462	(39,000)
Stock-based compensation	$ 0	$ 0	44,168	0	0	44,168
Balance at Jun. 30, 2014	$ 1,616	$ (131)	6,183,961	5,152	3,266,660	9,457,258
Balance (in shares) at Jun. 30, 2014	16,158,602	1,311,000
Balance at Dec. 31, 2014	$ 1,617	$ (131)	6,209,265	73	4,469,704	10,680,528
Balance (in shares) at Dec. 31, 2014	16,168,852	1,311,000
Net income	$ 0	$ 0	0	0	1,322,132	1,322,132
Total other comprehensive income, net of income taxes	0	0	0	461	0	461
Stock options exercised	$ 0	$ 0	400	0	0	400
Stock options exercised (in shares)	1,000	0
Common stock issued	$ 23	$ 0	150,687	0	0	150,710
Common stock issued (in shares)	228,273	(1,000)
Stock-based compensation	$ 0	$ 0	17,472	0	0	17,472
Balance at Jun. 30, 2015	$ 1,640	$ (131)	$ 6,377,824	$ 534	$ 5,791,836	$ 12,171,703
Balance (in shares) at Jun. 30, 2015	16,398,125	1,310,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 1,322,132	$ 961,081
Adjustments to reconcile net income to net cash provided by (used in) by operating activities:
Depreciation & amortization	76,597	53,972
Accounting charge related to stock-based compensation expense	17,472	44,168
Common stock compensation for management services	150,000	150,000
Other stock issuance expense	710	20,280
Amortization of premium/accretion of discount, net	63,340	12,869
Net realized investment gains	(1,000)	0
Deferred tax assets	(477,963)	(400,101)
(Increase) decrease in:
Accrued investment income	(7,624)	(846)
Due and deferred premiums	155,025	146,570
Balance due from reinsurers	(24,001,043)	(18,431,678)
Deferred policy acquisition costs	(845,648)	(763,369)
Prepaid and other	(739,727)	(262,961)
Increase (decrease) in:
Losses and loss adjustment expenses	13,194,309	5,989,105
Advance premiums	123,750	92,188
Ceded reinsurance premiums payable	5,433,676	4,913,313
Unearned premiums	4,670,583	3,875,957
Unearned ceding commissions	2,026,914	1,790,848
Commissions payable, reinsurance & agents	(680,503)	2,692,568
General and other accrued expenses	5,013,915	868,401
Funds held under reinsurance treaty	0	2,727
Income tax payable	431,894	113,595
Taxes, licenses and other fees payable	(199,070)	(98,281)
Net cash provided by operating activities	5,727,739	1,770,406
Cash flows from investing activities:
Purchases of long-term certificate of deposit	(7,350,000)	0
Maturities of long-term certificate of deposit	245,000	1,960,000
Purchases of short-term investments	(1,755,037)	(2,840,000)
Maturities of short-term investments	3,231,881	1,799,717
Purchases of fixed-maturity securities, available-for-sale	(1,000,248)	(2,829,824)
Call or maturity of fixed-maturity securities, available-for-sale	1,386,000	0
Additions to furniture, equipment and software	(30,998)	(99,245)
Net cash used in investing activities	(5,273,402)	(2,009,352)
Cash flows from financing activities:
Proceeds from stock options exercised	400	0
Net cash provided by financing activities	400	0
Net increase (decrease) in cash and cash equivalents	454,737	(238,946)
Cash and cash equivalents, beginning of period	5,648,278	8,104,310
Cash and cash equivalents, end of the period	6,103,015	7,865,364
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 1,019,000	$ 808,681

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Homeowners of America Holding Corporation ("HAHC") is an insurance holding company established to hold insurance entities for the purpose of marketing personal lines insurance products on a national basis. HAHC owns 100% of Homeowners of America Insurance Company ("HAIC"). HAIC is domiciled in Texas, licensed in multiple states and is authorized to write various forms of homeowners and auto insurance. Coverage is concentrated in Texas. HAHC also owns 100% of Homeowners of America MGA, Inc. ("MGA"), a Texas Corporation, formed as a captive managing general agency to produce business in Texas and to provide marketing and claims administration services for HAIC. HAHC, along with its subsidiaries HAIC and MGA, are collectively referred to as "the Company". Principles of Consolidation The accompanying consolidated financial statements include the accounts of Homeowners of America Holding Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Certain reclassifications of prior year amounts have been made to conform to the current year presentation. Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid short-term investments, with original maturities of three months or less. The amount is carried at cost, which approximates fair value. At June 30, 2015 and December 31, 2014, cash and cash equivalents consist of cash on deposit with financial institutions, as well as money market mutual funds. General and other accrued expenses payable as of June 30, 2015 and December 31, 2014, include $6.0 million and $1.7 million, respectively, of checks issued in excess of cash book balances, not yet presented for payment. The increase of $4.3 million is directly attributable to checks issued for claim payments related to spring convectional thunderstorm events occurring in the second quarter of 2015. Investments The Company's investments are comprised of short-term, restricted, long-term investments and fixed-maturity securities classified as available-for-sale as of June 30, 2015 and December 31, 2014. Restricted investments and long-term investments are described below. Short-term investments include certificates of deposit with original maturities greater than three months and maturities of one year or less. Due to the short-term nature of these investments, significant changes in prevailing interest rates and economic conditions should not adversely affect the timing and amount of cash flows on such investments or their related values. Accordingly, certificates of deposit are carried at cost, which approximates fair value. Fixed-maturity securities are classified as available-for-sale when it is not management's intent to make profits by buying and selling the securities within a short period of time or when it is not management's intent to hold the securities to maturity. Fixed-maturity securities classified as available-for-sale are carried at fair value. The unrealized holding gains and losses, net of applicable deferred income taxes, are shown as a separate component of stockholders' equity as a part of accumulated other comprehensive income (loss) and, as such, are not included in the determination of net income (loss). As of June 30, 2015 and December 31, 2014, the Company has restricted cash and investments, in the amount of $3.3 million and $4.3 million, respectively, pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. The following table provides the Company's restricted cash and investments as of June 30, 2015 and December 31, 2014. Restricted cash and investments June 30, 2015 December 31, 2014 Money Markets $ 300,000 $ 300,000 Certificates of Deposit 2,460,037 3,490,000 US Treasury Bond 542,426 539,654 $ 3,302,463 $ 4,329,654 As of June 30, 2015 and December 31, 2014, the Company's investments also included certificates of deposit that mature more than one year after the balance sheet date and are reflected on the consolidated balance sheets as Long-term investments. Based on management's intent to hold to maturity, these investments are carried at cost. Cost approximates fair value based on the rates currently offered for deposits of similar remaining maturities. The Company's investments in certificates of deposits and money market accounts do not qualify as securities as defined in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 320, Investment – Debt and Equity Securities. Accordingly, the fair value disclosures required by FASB ASC Topic 820, Fair Value Measurements and Disclosures are not provided. The Company's fixed-maturity securities classified as available-for-sale are "marked to market" as of the end of each calendar quarter. As of that date, unrealized gains and losses are recorded to Accumulated Other Comprehensive Income, except where such securities are deemed to be other-than-temporarily impaired. Where applicable, the Company assesses investments of an issuer currently carrying a net unrealized loss. If in management's judgment, the decline in value is other than temporary, the cost of the investment is written down to fair value with a corresponding charge to earnings. Factors considered in determining whether an impairment exists include financial condition, business prospects and creditworthiness of the issuer, the length of time and magnitude that the asset value has been less than cost, and the ability and intent to hold such investments until the fair value recovers. Comprehensive Income FASB ASC Topic 220 - Comprehensive Income, requires that recognized revenues, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the consolidated balance sheet, these items, along with net income (loss), are components of comprehensive income. The Company characterizes their fixed income portfolio as available-for-sale securities when it is not management's intent to make profits by buying and selling the securities within a short period of time or when it is not management's intent to hold the securities to maturity, with appropriate adjustments to other comprehensive income. For the three and six months ended June 30, 2015, the Company recorded unrealized losses of $(5,533) and unrealized gains of $1,143, respectively, on available-for-sale securities in other comprehensive income. For the three and six months ended June 30, 2014, the Company recorded $5,152 of unrealized gains on available-for-sale securities in other comprehensive income. Recognition of Premium Revenues Premiums are recognized as revenue on a daily pro rata basis over the policy term. The portion of premiums related to the unexpired term of policies in force as of the end of the measurement period and to be earned over the remaining term of those polices, is deferred and reported as unearned premiums. Ceding Commissions and Reinsurance Profit Share Ceding commissions represent acquisition costs associated with insurance risk ceded to reinsurers and is earned on a pro-rata basis over the life of the associated policy. Reinsurance profit share is additional ceding commissions payable to the Company based upon attaining specified loss ratios within individual treaty years. Reinsurance profit share income is recognized when earned, which includes adjustments to earned reinsurance profit share based on changes in incurred losses and reserves for future loss development. Policy Fees Policy fee income collected by the Company's MGA, includes application fees which are intended to reimburse the Company for a portion of the costs incurred in establishing the insurance. Policy fees on policies where premium is traditionally paid in full upon inception of the policy are recognized when written, while fees charged on policies where premiums are paid in installments, are recognized when collected. Loss Adjustment and Other Fee Income Loss adjustment and other fee income is recognized as income when collected. Loss adjustment income for the three and six months ended June 30, 2015 was 8.3 % and 5.9 %, respectively, of total revenue on the consolidated statements of operations. Loss adjustment income for the three and six months ended June 30, 2014 was 6.4 % and 5.5 %, respectively, of total revenue on the consolidated statements of operations. Property, Equipment and Software Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets, which range from three to five years. The cost and related accumulated depreciation of assets sold or disposed are removed from the accounts and the resulting gain or loss is included in the consolidated statements of operations. Maintenance and repairs are expensed as incurred. Software installation and development is stated at cost, net of accumulated amortization. Amortization is calculated on a straight-line basis method over three years. Impairment of Long-Lived Assets Long-lived assets, such as property, equipment and software, are reviewed for impairment whenever business events or circumstances could lead to or indicate that the value of the asset may not be recoverable. The assessment of possible impairment is based on whether the carrying amount of the assets exceeds its fair value. The Company uses estimates of undiscounted future cash flows in determining the recoverability of long-lived assets. As of June 30, 2015 and December 31, 2014, no impairment has been recorded. Deferred Policy and Acquisition Costs Deferred policy acquisitions costs ("DAC") as of June 30, 2015 and December 31, 2014, consist of commissions, premium taxes and policy underwriting and production expenses which are incurred through and vary directly with, the level of production of new and renewal insurance business and are amortized over the terms of the policies they relate to. The method used in calculating DAC limits the amount of the deferred cost to their estimated realizable value, which gives effect to allocating their expense along with other period costs associated with the insurance business, in relation to the amount of gross premium earned on policies to which they relate and investment income. DAC is reviewed to determine if it is recoverable from future income, including investment income. The amount of DAC considered recoverable could be reduced in the near term if management's estimates of future premium and investment income is reduced which could impair the Company's ability to recover these costs. Reserve for Losses and Loss Adjustment Expenses The liability for losses and loss adjustment expenses ("LAE") are estimates of the amounts required to cover known incurred losses and LAE, developed through the review and assessment of loss reports, along with the development of known claims. In addition, loss and loss adjustment expense reserves include management's estimate of an amount for losses incurred but not reported ("IBNR"), determined from reviewing overall loss reporting patterns as well as the loss development cycles of individual claim cases. Such liabilities are necessarily based on estimates and while management believes that the amount is adequate, the ultimate liability may be more or less than the amounts provided. The approach and methods for making such estimates and for establishing the resulting liability are continually reviewed and any adjustments are reflected in current earnings. Due and Deferred Premiums Due and deferred premiums consist of uncollateralized premiums and agents' balances in the course of collection as well as premiums booked but not yet due. Reinsurance In the normal course of business, the Company seeks to reduce the overall exposure to losses that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk with other insurance enterprises or reinsurers. The Company uses only quality, financially rated reinsurers and continually monitors the financial ratings of these companies through its brokers. The amount and type of reinsurance purchased each year is based on management's analysis of liquidity and its estimate of its probable maximum loss and the conditions within the reinsurance market. The Company continually monitors its risk exposure through the use of the AIR modeling system and other modeling tools provided by its reinsurance brokers. Reinsurance premiums, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums paid for reinsurance are reported as reductions of earned premium income. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss carryforwards, and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In assessing the realizable value of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Uncertain Tax Positions The Company recognizes uncertain tax positions in the consolidated financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns, and that its accruals for tax liabilities are adequate for all open tax years based on an assessment of many factors including experience and interpretations of tax laws applied to the facts of each matter. At June 30, 2015, the Company's tax years from 2010 through 2014 remain subject to examination. 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 liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's primary areas of estimate are for liabilities for unpaid losses and loss adjustment expenses, deferred policy acquisition costs, deferred tax asset valuation, and reinsurance. Actual results could differ significantly from those estimates. Fair Value of Cash, Cash Equivalents and Short-term Investments The carrying value for the Company's cash and cash equivalents and short-term investments approximate fair values as of June 30, 2015 and December 31, 2014 due to their short-term nature. Fair value for securities are based on the framework for measuring fair value established by FASB ASC Topic 820, Fair Value Measurements and Disclosures. Fair Value Fixed-Maturity Securities held as Available-for-Sale The Company's fixed-maturity securities held as available-for-sale are carried at fair value as of June 30, 2015 and December 31, 2014. Fair value for securities are based on the framework for measuring fair value established by FASB ASC Topic 820, Fair Value Measurements and Disclosures. Stock Based Compensation The Company accounts for stock-based compensation under the fair value recognition provisions of FASB ASC Topic 718 – Compensation – Stock Compensation, which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock issuances based on estimated fair values. In accordance with FASB ASC Topic 718, the Company recognizes stock-based compensation, if any, in the consolidated statements of operations on a straight line basis over the vesting period of the stock award. For those stock awards vesting 100% at the issue date, the Company recognizes stock-based compensation immediately. Earnings (Loss) Per Share Basic earnings (loss) per share of common stock is computed by dividing net income or loss, less cumulative preferred stock dividends for the period whether or not earned or paid, by the weighted-average number of common shares during the period. Diluted earnings (loss) per share of common stock is computed by dividing net income or loss attributable to common stockholders, adjusted for the effect of potentially dilutive securities, by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include convertible notes payable, outstanding convertible preferred stock and common stock options.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2015
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	2. RECENT ACCOUNTING PRONOUNCEMENTS On May 21, 2015, the FASB issued Accounting Standards Update No. 2015-09 ("ASU 2015-09"), Financial Services - Insurance (Topic 944), Disclosures about Short-Duration Contracts. ASU 2015-09 provides enhanced disclosures related to the reserve for losses and loss expenses. The enhanced disclosures required by ASU 2015-09 include (1) net incurred and paid claims development by accident year, (2) a reconciliation of incurred and paid claims development information to the aggregate carrying amount of the reserve for losses and loss expenses, (3) for each accident year presented of incurred claims development information, the total of reserves for incurred but not reported (IBNR), including expected development on reported claims, included in the reserve for losses and loss expenses and a description of the reserving methodologies and changes to the reserving methodologies, and (4) for each accident year presented of incurred claims development information, quantitative information about claims frequency, as well as a description of methodologies used for determining claim frequency information. ASU 2015-09 is effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. The amendments in ASU 2015-09 should be applied retrospectively by providing comparative disclosures for each period presented, except for those requirements that apply only to the current period. The Company is currently assessing the impact the adoption of ASU 2015-09 will have on future disclosures.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	3. RELATED PARTY TRANSACTIONS In August 2013, HAHC entered into an agreement or the "Advisory Agreement", with Inter-Atlantic Advisors III, Ltd., or "Inter-Atlantic", under which Inter-Atlantic agrees to perform certain management services for the Company. A number of our directors are among the beneficial owners of Inter-Atlantic. The Advisory Agreement has an initial term of six years, to be automatically renewed from year-to-year thereafter, unless terminated by either party upon 60 days notice prior to the termination of the initial or any renewal term. For its services, the Company will pay Inter-Atlantic an annual fee of $300,000, as well as, an annual grant of shares of our common stock with an aggregate fair market value of $150,000 at the time of grant, plus reimburse Inter-Atlantic's expenses incurred in connection with the performance of its service. As long as the Advisory Agreement is in effect and the fees and expense reimbursements are paid, the directors of the Company that are affiliated with Inter-Atlantic have agreed to waive any other compensation for their service as directors. For the three and six months ended June 30, 2015, the Company incurred an expense of $75,000 and $300,000 (of which $150,000 is represented by the issuance of 227,273 shares of common stock), respectively, for services performed under the Advisory Agreement. For the three and six months ended June 30, 2014, the Company incurred an expense of $75,000 and $300,000 (of which $150,000 is represented by the issuance of 288,462 shares of common stock), respectively, for services performed under the Advisory Agreement.

INVESTMENTS

INVESTMENTS	6 Months Ended
	Jun. 30, 2015
INVESTMENTS [Abstract]
INVESTMENTS	4. INVESTMENTS Investment income, net of investment expenses totaled $31,834 and $1,794 for the three months ended June 30, 2015 and 2014, respectively. Investment income, net of investment expenses totaled $47,966 and $9,242 for the six months ended June 30, 2015 and 2014, respectively. For the three months ended June 30, 2015 and 2014, there were $(5,533) and $5,152, respectively, in unrealized gains/(losses) on fixed-maturity securities held as available-for-sale. For the six months ended June 30, 2015 and 2014, there were $1,143 and $5,152, respectively, in unrealized gains/(losses) on fixed-maturity securities held as available-for-sale. For the three and six months ended June 30, 2015 there were $1,000 in realized gains recognized and no realized losses for the period. For the three and six months ended June 30, 2014 there were no realized gains or losses recognized. The intent is to hold to maturity certificates of deposit carried at amortized cost. The following table provides the Company's short-term, restricted and long-term investment holdings by type of financial instruments that were used to estimate the fair value disclosures for financial instruments as of June 30, 2015 and December 31, 2014, respectively: June 30, 2015 December 31, 2014 Book Value Fair Value / Carrying Value Book Value Fair Value / Carrying Value Financial Instruments, excluding fixed maturities: Restricted certificates of deposit $ 2,460,037 $ 2,460,037 $ 3,490,000 $ 3,490,000 Restricted money markets 300,000 300,000 300,000 300,000 Long-term investments 10,535,000 10,535,000 3,430,000 3,430,000 Short-term investments 785,000 785,000 1,231,881 1,231,881 Total $ 14,080,037 $ 14,080,037 $ 8,451,881 $ 8,451,881 June 30, 2015 December 31, 2014 Range of Maturities Interest Rates Range of Maturities Interest Rates Restricted certificates of deposit Less than 1 year 0.30% - 0.80% Less than 1 year 0.10% - 0.40% Restricted certificates of deposit More than 1 year 0.35% - 1.40% More than 1 year 0.35% - 1.40% Restricted money markets Less than 1 year - Less than 1 year - Long-term investments More than 1 year 0.45% - 1.50% More than 1 year 0.75% - 1.50% Short-term investments Less than 1 year 0.05% - 0.75% Less than 1 year 0.35% - 0.70% The following table provides the Company's fixed-maturity securities classified as available-for-sale which are carried at fair value as of June 30, 2015 and December 31, 2014: June 30, 2015 Gross Unrealized Amortized Cost Gains Losses Fair Value Fixed Maturities: Obligations of states, municipalities and political subdivisions $ 3,379,087 $ 6,942 $ (9,188 ) $ 3,376,841 U.S. Treasury- held as restricted 539,646 2,780 - 542,426 Total Fixed Maturities $ 3,918,733 $ 9,722 $ (9,188 ) $ 3,919,267 December 31, 2014 Gross Unrealized Amortized Cost Gains Losses Fair Value Fixed Maturities: Obligations of states, municipalities and political subdivisions $ 3,827,268 $ 6,331 $ (6,354 ) $ 3,827,245 U.S. Treasury- held as restricted 539,558 96 - 539,654 Total Fixed Maturities $ 4,366,826 $ 6,427 $ (6,354 ) $ 4,366,899 The amortized cost and fair value of available-for-sale fixed-maturity securities at June 30, 2015 and December 31, 2014, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2015 Remaining Time to Maturity Amortized Cost Basis Fair Value Due in one year or less $ 645,726 $ 644,136 Due after one year through five years 1,982,995 1,984,354 Due after five years through ten years 90,222 89,704 Due after ten years 1,199,790 1,201,073 Total $ 3,918,733 $ 3,919,267 December 31, 2014 Remaining Time to Maturity Amortized Cost Basis Fair Value Due in one year or less $ 570,236 $ 569,734 Due after one year through five years 1,985,297 1,981,134 Due after five years through ten years 162,124 162,519 Due after ten years 1,649,169 1,653,512 Total $ 4,366,826 $ 4,366,899 Other-than-temporary Impairment ("OTTI") The Company regularly reviews its individual investment securities for OTTI. The Company considers various factors in determining whether each individual security is other-than-temporarily-impaired, including: • the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings; • the length of time and the extent to which the market value of the security has been below its cost or amortized cost; • general market conditions and industry or sector specific factors; • nonpayment by the issuer of its contractually obligated interest and principal payments; and • the Company's intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs. Securities with gross unrealized loss positions at June 30, 2015 and December 31, 2014, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Greater Total As of June 30, 2015 Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Fixed-maturity securities Obligations of states, municipalities and political subdivisions $ (7,841 ) $ 1,652,654 $ (1,347 ) $ 249,148 $ (9,188 ) $ 1,901,802 U.S. Treasury - held as restricted - - - - - - Total available-for-sale securities $ (7,841 ) $ 1,652,654 $ (1,347 ) $ 249,148 $ (9,188 ) $ 1,901,802 At June 30, 2015, there were 31 securities in an unrealized loss position. Of these securities, four securities had been in an unrealized loss position for 12 months or greater. Less Than Twelve Months Twelve Months or Greater Total As of December 31, 2014 Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Fixed-maturity securities Obligations of states, municipalities and political subdivisions $ (6,354 ) $ 2,392,217 $ - $ - $ (6,354 ) $ 2,392,217 U.S. Treasury - held as restricted - - - - - - Total available-for-sale securities $ (6,354 ) $ 2,392,217 $ - $ - $ (6,354 ) $ 2,392,217 At December 31, 2014, there were 31 securities in an unrealized loss position. The Company began it's investment in these securities in June 2014, therefore none of these securities had been in an unrealized loss position for 12 months or greater at December 31, 2014. The Company believes there were no fundamental issues such as credit losses or other factors with respect to any of its available-for-sale securities. The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes. It is expected that the securities would not be settled at a price less than par value of the investments. Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold its available-for-sale investments until a market price recovery or maturity, the Company does not consider any of its investments to be other-than-temporarily impaired at June 30, 2015 and at December 31, 2014.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	5. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company's financial assets carried at fair value have been classified, for disclosure purposes, based on the hierarchy established within FASB ASC 820-10 – Fair Value Measurements and Disclosures. When market prices are not available, fair value is generally estimated utilizing valuation techniques that vary by asset class and incorporate available trade, bid and other market information, when available. The acceptable valuation techniques include (a) market approach, which uses prices or relevant information derived from market transactions for identical or comparable assets or liabilities, (b) the Income Approach, which converts future amounts such as cash flows or earnings to a single present value amount based on current market expectations about those future amounts, and (c) the Cost Approach, which is based on the amount that currently would be required to replace the service capacity of an asset. In certain circumstances, these valuation techniques may involve some level of management estimation and judgment which becomes significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk premium inherent in a particular methodology, model or input used. The fair value hierarchy is used to prioritize valuation inputs into three levels: • Level 1 • Level 2 • Level 3 The Company's short-term investments comprised of certificates of deposit held at financial institutions which are not measured at fair value on a recurring basis. A portion of the Company's cash and cash equivalents include money market mutual fund accounts held at financial institutions which are measured at fair value on a recurring basis. Fixed-maturity securities held as available-for-sale are carried at fair value in our consolidated financial statements. The following tables provide information as of June 30, 2015 and December 31, 2014, about the Company's financial assets measured at fair value on a recurring basis: Fair Value Measurements Using Level 1 Level 2 Level 3 Total As of June 30, 2015 Money market mutual funds $ 2,587,891 $ - $ - $ 2,587,891 Restricted money market mutual funds 300,000 - - 300,000 Securities-available-for-sale fixed-maturity: Obligations of states, municipalities and political subdivisions - 3,376,841 - 3,376,841 U.S. Treasury - 542,426 - 542,426 Total $ 2,887,891 $ 3,919,267 $ - $ 6,807,158 Fair Value Measurements Using Level 1 Level 2 Level 3 Total As of December 31, 2014 Money market mutual funds $ 3,372,527 $ - $ - $ 3,372,527 Restricted money market mutual funds 300,000 - - 300,000 Securities-available-for-sale fixed-maturity: Obligations of states, municipalities and political subdivisions - 3,827,245 - 3,827,245 U.S. Treasury - 539,654 - 539,654 Total $ 3,672,527 $ 4,366,899 $ - $ 8,039,426 The following methods and assumptions were used to estimate the fair value disclosures for financial instruments: Money market mutual funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. As the funds are generally maintained at a net asset value which does not fluctuate, cost approximates fair value. These are included as a Level 1 measurement in the table above. The fair values for available-for-sale fixed-maturity securities are based upon prices provided by an independent pricing service. The Company has reviewed these prices for reasonableness and has not adjusted any prices received from the independent provider. Level 2 securities represent assets whose fair value is determined using observable market information such as previous day trade prices, quotes from less active markets or quoted prices of securities with similar characteristics. There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2015 or during the year ended December 31, 2014.

PROPERTY, EQUIPMENT, AND SOFTWA

PROPERTY, EQUIPMENT, AND SOFTWARE NET	6 Months Ended
	Jun. 30, 2015
PROPERTY, EQUIPMENT, AND SOFTWARE NET [Abstract]
PROPERTY, EQUIPMENT, AND SOFTWARE NET	6. PROPERTY, EQUIPMENT, AND SOFTWARE NET Property, equipment, and software net consist of the following as of June 30, 2015 and December 31, 2014, respectively: June 30, 2015 December 31, 2014 Useful Life Computer equipment $ 235,854 $ 231,860 3 years Office equipment 17,409 17,409 5 years Furniture and fixtures 142,450 142,450 5 years Software installation and development 956,319 929,316 3 years Total, at cost 1,352,032 1,321,035 Less accumulated depreciation and amortization (1,053,136 ) (976,540 ) Property and equipment, net $ 298,896 $ 344,495 Depreciation and amortization expense for property, equipment and software totaled $38,235 and $26,677 for the three months ended June 30, 2015 and 2014, respectively. Depreciation and amortization expense for property, equipment and software totaled $76,597 and $53,972 for the six months ended June 30, 2015 and 2014, respectively.

DEFERRED POLICY ACQUISITION COS

DEFERRED POLICY ACQUISITION COSTS	6 Months Ended
	Jun. 30, 2015
DEFERRED POLICY ACQUISITION COSTS [Abstract]
DEFERRED POLICY ACQUISITION COSTS	7. DEFERRED POLICY ACQUISITION COSTS Total capitalized deferred policy acquisition costs as of June 30, 2015 and June 30, 2014, comprised of commissions, premium taxes and costs associated with underwriting and issuing policies were $8,743,454 and $6,977,703, respectively. Changes in deferred policy acquisition costs for the three and six months ended June 30, 2015 and June 30, 2014, are as follows: Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Deferred policy acquisition charges, beginning of the period $ 7,861,318 $ 6,216,053 $ 7,897,806 $ 6,214,334 Capitalized costs 4,580,309 3,823,911 8,121,989 6,658,406 Amortized costs (3,698,173 ) (3,062,261 ) (7,276,341 ) (5,895,037 ) Deferred policy acquisition charges, end of the period $ 8,743,454 $ 6,977,703 $ 8,743,454 $ 6,977,703

UNPAID LOSSES AND LOSS ADJUSTME

UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES	6 Months Ended
	Jun. 30, 2015
UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES [Abstract]
UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES	8. UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Losses and loss adjustment expenses (LAE), less related reinsurance and deductibles, are charged to operations as incurred. Unpaid losses and LAE are based on claims adjusters' estimates of the cost of settlement plus an estimate for losses that have been incurred, but not yet reported (IBNR) based upon historical experience, industry loss experience, and management's estimates. Loss reserves reflect Company management's best estimate of the total cost of (i) claims that have been incurred but not yet paid, and (ii) IBNR. Loss reserves that are established by Company management are not an exact calculation of our liability, but rather loss reserves represent management's best estimate for our Company's liability based on the application of actuarial techniques and other projection methodology, taking into consideration other facts and circumstances known as of the balance sheet date. The process of setting reserves is complex and necessarily imprecise. The impact of both internal and external variables on ultimate loss and LAE costs is difficult to estimate. To arrive at its best estimate for losses, the Company uses damage estimating software developed and owned by acknowledged industry leader, Insurance Service Office. Reserve factors for IBNR are reviewed quarterly by an independent actuarial consultant. In addition, our appointed independent actuary attests to the adequacy of our unpaid claim reserve, including IBNR, at calendar year end. Losses and Loss Adjustment Expenses The following table provides the reconciliation of the beginning and ending reserve balances for losses and LAE, gross of reinsurance for the three and six months ended June 30, 2015 and for June 30, 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Reserve for losses and LAE, beginning of period $ 14,768,255 $ 17,462,319 $ 15,009,506 $ 15,884,062 Reinsurance recoverables on losses and LAE (13,650,287 ) (16,707,683 ) (13,995,400 ) (15,090,175 ) Reserve for losses and LAE, net of reinsurance recoverables at beginning of year 1,117,968 754,636 1,014,106 793,887 Add provision for claims and LAE occurring in: Current year 2,084,556 1,036,258 2,475,033 1,135,234 Prior years 379,045 48,905 665,738 300,905 Net incurred losses and LAE during the current period 2,463,601 1,085,163 3,140,771 1,436,139 Deduct payments for claims and LAE occurring in: Current year 1,113,943 845,517 1,339,558 1,013,116 Prior years 178,691 146,924 526,384 369,552 Net claim and LAE payments during the current period 1,292,634 992,441 1,865,942 1,382,668 Reserve for losses and LAE, net of reinsurance recoverables, at end of period 2,288,935 847,358 2,288,935 847,358 Reinsurance recoverables on losses and LAE 25,914,880 21,025,809 25,914,880 21,025,809 Reserve for losses and LAE, end of period $ 28,203,815 $ 21,873,167 $ 28,203,815 $ 21,873,167 As a result of additional information on claims occurring in prior years becoming available to management, changes in estimates of provisions of claims and claim adjustment expenses were made resulting in an increase The changes in estimates of provisions of claims and claim adjustment expenses for the six months ended June 30, 2015 and 2014, resulted in an increase of $665,738 and $300,905, respectively.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2015
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY	9. STOCKHOLDERS' EQUITY Preferred Stock As of June 30, 2015 and December 31, 2014, the Company had 20,500,000 shares of preferred stock, convertible, 12.50% cumulative, $0.0001 par value per share, authorized and none issued and outstanding. Common Stock As of June 30, 2015, the Company had 40,000,000 shares authorized and 17,708,125 shares issued and 16,398,125 shares outstanding of $0.0001 par value common stock. Holders of common stock are entitled to one (1) vote for each share of common stock held at all meetings of stockholders. On June 16, 2015, the Company issued 1,000 shares by way of common stock held in Treasury at $0.71 per share under the Company's 2013 Equity Compensation Plan as a stock award to an employee of the Company. On February 1, 2015, the Company issued 227,273 shares of common stock at $0.66 per share, to Inter-Atlantic Management Inc. Per the terms of the Advisory Agreement dated August 1, 2013, Inter-Atlantic Management Inc. will be issued annually on February 1 st As of December 31, 2014, the Company had 40,000,000 shares of authorized and 17,479,852 shares issued and 16,168,852 shares outstanding of $0.0001 par value common stock. Holders of common stock are entitled to one (1) vote for each share of common stock held at all meetings of stockholders. There were no common stock warrants issued during the three and six months ended June 30, 2015 and June 30, 2014.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	6 Months Ended
	Jun. 30, 2015
EARNINGS (LOSS) PER SHARE [Abstract]
EARNINGS (LOSS) PER SHARE	10. EARNINGS (LOSS) PER SHARE The following table represents the reconciliation of the Company's basic earnings per common share and diluted earnings per common share computations reported on the Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Basic earnings per common share Net income $ 303,155 $ 485,836 $ 1,322,132 $ 961,081 Cumulative dividend - - - - Adjusted net income $ 303,155 $ 485,836 $ 1,322,132 $ 961,081 Weighted average common shares outstanding 16,397,292 16,152,102 16,359,080 16,087,775 Basic earnings per common share $ 0.02 $ 0.03 $ 0.08 $ 0.06 Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Diluted earnings per common share Net income $ 303,155 $ 485,836 $ 1,322,132 $ 961,081 Weighted average common shares outstanding 16,397,292 16,152,102 16,359,080 16,087,775 Effect of diluted securities: Stock options 1,317,500 933,750 1,317,500 933,750 Diluted common shares outstanding 17,714,792 17,085,852 17,676,580 17,021,525 Diluted earnings per common share $ 0.02 $ 0.03 $ 0.07 $ 0.06

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	6 Months Ended
	Jun. 30, 2015
STOCK BASED COMPENSATION [Abstract]
STOCK BASED COMPENSATION	11. STOCK BASED COMPENSATION The Company accounts for stock-based compensation under the fair value recognition provision of FASB ASC Topic 718 – Compensation – Stock Compensation. Incentive Plans The Company's 2005 Management Incentive Plan (the "2005 Plan") provides for granting of stock options to enable the Company to obtain and retain the services of selected persons, both employees and directors, considered to be essential to the long-range success of the Company. Under the 2005 Plan, options may be granted to purchase a total not to exceed 789,475 shares of common stock in the aggregate, made up of original issue shares, treasury shares or a combination of the two. At June 30, 2015 and 2014, options to purchase 783,750 shares of common stock had been granted under the 2005 Plan. The Company's 2013 Equity Compensation Plan (the "2013 Plan") provides for granting of stock options, incentive stock options, stock awards, and restricted stock units to enable the Company to obtain and retain the services of selected persons, both employees and directors, considered to be essential to the long-range success of the Company. Under the 2013 Plan, options may be granted to purchase a total not to exceed 2,925,000 shares of common stock, made up of original issue shares, treasury shares or a combination of the two. At June 30, 2015, options to purchase 1,965,000 shares of common stock and 40,000 shares of common stock in the form of a stock award had been granted under the 2013 Plan. At June 30, 2014, options to purchase 1,965,000 shares of common stock and 39,000 shares of common stock in the form of a stock award have been granted under the 2013 Plan. A summary of the activity of the Company's stock option plan for the three and six months ended June 30, 2015 and June 30, 2014 is as follows: Number of Options Weighted Avg Exercise Price Weighted Avg Remaining Cont. Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2014 2,738,500 $ 0.59 7.32 $ 226 Outstanding at March 31, 2015 2,737,500 $ 0.59 7.07 $ 747 Outstanding at June 30, 2015 2,737,500 $ 0.59 6.83 $ 825 Exercisable at June 30, 2015 1,317,500 $ 0.67 5.46 $ 305 Outstanding at December 31, 2013 2,708,750 $ 0.58 8.41 $ 4 Outstanding at March 31, 2014 2,708,750 $ 0.58 8.16 $ 21 Outstanding at June 30, 2014 2,708,750 $ 0.58 7.91 $ 22 Exercisable at June 30, 2014 933,750 $ 0.73 5.35 $ 6 The Company did not grant any stock options during the three and six months ended June 30, 2015 and 2014. The Company records stock-based compensation expense related to granting stock options in general and administrative expenses. The Company recognized compensation expense as follows for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Total gross compensation expense $ 8,736 $ 8,703 $ 17,472 $ 44,168 Total tax benefit associated with compensation expense (171 ) (172 ) (343 ) (7,335 ) Total net compensation expense $ 8,565 $ 8,531 $ 17,129 $ 36,833 As of June 30, 2015, the Company expects to record compensation expense in the future as follows: Six months ending Year ending December 31, December 31, 2015 2016 2017 2018 2019 Total gross unrecognized compensation expense $ 17,472 $ 34,944 $ 34,944 $ 28,365 $ 81 Tax benefit associated with unrecognized compensation expense (686 ) (686 ) (686 ) (556 ) - Total net unrecognized compensation expense $ 16,786 $ 34,258 $ 34,258 $ 27,809 $ 81

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2015
INCOME TAXES [Abstract]
INCOME TAXES	12. INCOME TAXES During the three and six months ended months ended June 30, 2015, the Company recorded $188,369 and $725,175, respectively, of income tax expense which resulted in estimated annual effective tax rate of 35.63 % and 34.61 %. The effective tax rate was primarily impacted as a result of permanent tax differences on meals and entertainment and stock-based compensation, as well as a true up of prior period tax expense. During the three and six months ended June 30, 2014, the Company recorded $266,262 and $522,175, respectively, of income tax expense which resulted in estimated annual effective tax rate of 34.30% and 34.28 %. The effective tax rate was primarily impacted as a result of permanent tax differences on meals and entertainment and stock-based compensation. The Company's federal income tax return is consolidated with HAIC and MGA. Allocation of tax expense or refunds among the consolidated group is based on separate return calculations.

REINSURANCE

REINSURANCE	6 Months Ended
	Jun. 30, 2015
REINSURANCE [Abstract]
REINSURANCE	13. REINSURANCE Certain premiums and benefits are ceded to other insurance companies under various reinsurance agreements. The reinsurance agreements provide HAIC with increased capacity to write larger risks and maintain its exposure to loss within its capital resources. Ceded reinsurance contracts do not relieve HAIC from its obligations to policyholders. HAIC remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize its exposure to significant losses from reinsurer insolvencies, HAIC evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers. Commencing April 1, 2015, the Company reinsured its property and casualty risk under multiple quota share reinsurance treaties with third party reinsurers. The treaties cover 40 % of its risk under property coverage on any one loss occurrence not to exceed $90,000,000; 50 % of its risk under property coverage on any one loss occurrence not to exceed $175,000,000 and approximately 35 % of its risk under casualty coverages. The Company also purchased per risk reinsurance covering non-weather losses (ten occurrences) in excess of a gross loss of $500,000 per occurrence for all coverage lines (a net loss of $50,000). This coverage is obtained principally to protect the Company in the event of a large fire loss. Due to the Company's increased exposure to casualty risk as previously mentioned, the Company entered into a per risk casualty excess of loss reinsurance program, beginning April 1, 2015. The program allows for 10 reinstatements during the treaty period, with an annual loss limit of $7,150,000 and a per occurrence limit of $650,000. Property catastrophe treaties, which went into effect on the same day as the quota share program, develop over four layers with a gross loss of $175,000,000 excess of $5,000,000 per occurrence. The Company's net retention is $500,000 per loss occurrence. The Company entered into a mixture of 12 and 24 month treaty periods to take advantage of low catastrophe reinsurance pricing in the marketplace. The Company's higher limit catastrophe coverage is placed for 12 months, as the Company believes this level of coverage has less price volatility than lower limits and feels it can acquire this type of coverage at competitive prices going forward. Finally, in support of the Company's expansion in the Houston metropolitan area, commencing June 1, 2015, the Company entered into a property quota share reinsurance treaty with a third party reinsurer, specifically to mitigate named tropical cyclone storm risk. The treaty covers 90% of the Company's risk under property coverage on any named hurricane or tropical storm system which affects certain geographical areas in the Houston metropolitan area, not to exceed the lesser of $75,000,000 or a 250 year return period. This reinsurance coverage is in addition to the reinsurance programs described above. Commencing April 1, 2014 and ending March 31, 2015, the Company reinsured its property and casualty risk under quota share reinsurance treaties with third party reinsurers. The treaties cover 80% of its risk under property coverage on any one loss occurrence not to exceed $110 million; 10% of its risk under property coverage on any one loss occurrence not to exceed $4 million and approximately 64% of its risk under casualty coverages. Property catastrophe treaties, which went into effect on the same day and having the same term as the quota share treaties, develop over four layers and 20% of our risk on property coverage on a gross loss of $110 million excess of $4 million per occurrence. The Company's net retention is $400,000 per loss occurrence. The Company also purchased reinsurance covering non-weather losses (two occurrences) in excess of a gross loss of $500,000 per occurrence for all coverage lines (a net loss of $50,000). This coverage which was in force during 2014 had been obtained principally to protect the Company in the event of a large fire loss. The effects of reinsurance on premiums written and earned were as follows, for the three and six months ended June 30, 2015 and June 30, 2014: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Written Earned Written Earned Direct premiums $ 24,723,763 $ 19,877,533 $ 19,487,640 $ 15,596,506 Ceded premiums (20,859,585 ) (18,569,573 ) (17,036,125 ) (14,346,738 ) Net Premiums $ 3,864,178 $ 1,307,960 $ 2,451,515 $ 1,249,768 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Written Earned Written Earned Direct premiums $ 42,981,796 $ 38,311,214 $ 33,916,585 $ 30,040,628 Ceded premiums (37,025,964 ) (35,812,963 ) (29,919,140 ) (27,493,194 ) Net Premiums $ 5,955,832 $ 2,498,251 $ 3,997,445 $ 2,547,434 Following is a summary of HAIC's reinsurance balances under the above described reinsurance treaties as of and for the three and six months ended June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 Ceded premiums payable $ 9,776,550 $ 4,342,874 Ceded loss and loss adjustment expense reserve $ 25,914,880 $ 13,995,400 Ceded unearned premium reserve $ 38,865,333 $ 35,442,177 Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Ceded loss adjustment expenses $ 2,206,998 $ 1,691,602 $ 3,032,506 $ 2,647,656 Ceded earned premiums $ 18,569,573 $ 14,346,738 $ 35,812,963 $ 27,493,194

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK	6 Months Ended
	Jun. 30, 2015
CONCENTRATION OF CREDIT RISK [Abstract]
CONCENTRATION OF CREDIT RISK	14. CONCENTRATION OF CREDIT RISK The Company has exposure and remains liable in the event of an insolvency of any one of its primary reinsurers. Management and its reinsurance intermediary regularly assess the credit quality and ratings of its reinsurer base companies. Financial instruments which potentially subject the Company to credit risk consist principally of cash, money market accounts on deposit with financial institutions, money market funds, certificates of deposit and fixed-maturity securities, as well as premium balance in the course of collection. At times, the Company's bank deposits may exceed the FDIC limit. The concentration of credit risk with respect to premium balances in the course of collection is limited, due to the large number of insureds comprising the Company's customer base. However, substantially all of the Company's revenues are derived from customers in Texas, which could be adversely affected by economic conditions, an increase in competition, or other environmental changes.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	15. COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases its corporate office space and certain office equipment under non-cancelable operating leases which expire at various dates through 2019. Future minimum lease payments required under the non-cancelable operating leases are as follows for the years ending December 31: 2015 (6 months) $ 84,774 2016 177,409 2017 93,984 2018 22,188 2019 12,519 $ 390,874 Rent expense under such leases for the three months ended June 30, 2015 and June 30, 2014 was $45,401 and $42,489, respectively. Rent expense under such leases for the six months ended June 30, 2015 and June 30, 2014 was $87,827 and $74,817, respectively. Litigation The Company is the defendant in routine litigation involving matters that are incidental to the claims function of the Company's insurance business for which estimated losses are included in unpaid loss and loss adjustment expense reserves in the Company's consolidated financial statements. It is management's opinion that these lawsuits are not material individually or in the aggregate to the Company's financial position, results of operations, or cash flow.

REGULATORY REQUIREMENTS AND RES

REGULATORY REQUIREMENTS AND RESTRICTIONS	6 Months Ended
	Jun. 30, 2015
REGULATORY REQUIREMENTS AND RESTRICTIONS [Abstract]
REGULATORY REQUIREMENTS AND RESTRICTIONS	16. REGULATORY REQUIREMENTS AND RESTRICTIONS HAIC is subject to the laws and regulations of the State of Texas and the regulations of any other states in which HAIC conducts business. State regulations cover all aspects of HAIC's business and are generally designed to protect the interests of insurance policyholders, as opposed to the interests of stockholders. The Texas Insurance Code requires all property and casualty insurers to have a minimum of $2.5 million in capital stock and $2.5 million in surplus. HAIC has capital and surplus in excess of this requirement. As of December 31, 2014, HAIC's total statutory surplus was $12,317,735 (capital stock of $3,000,000 and surplus of $9,317,735). As of June 30, 2015, HAIC's total statutory surplus was $13,834,346 (capital stock of $3,000,000 and surplus of $10,834,346). As of June 30, 2015 and December 31, 2014, HAIC had restricted cash and investments totaling $3.3 million and $4.3 million, respectively, pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. The Texas Insurance Code limits dividends from insurance companies to their stockholders to net income accumulated in the Company's surplus account, or "earned surplus". The maximum dividend that may be paid without approval of the Insurance Commissioner is limited to the greater of 10% of the statutory surplus at the end of the preceding calendar year or the statutory net income of the preceding calendar year. No dividends were paid by HAIC in the first six months of 2015 or during the year of 2014. HAIC prepares its statutory-based financial statements in conformity with accounting practices prescribed or permitted by the Texas Department of Insurance. Prescribed statutory accounting practices primarily include those published as statements of SAP by the NAIC, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practice not so prescribed. As of June 30, 2015 and December 31, 2014, there were no material permitted statutory accounting practice utilized by HAIC.

ORGANIZATION AND SUMMARY OF S24

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Homeowners of America Holding Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Certain reclassifications of prior year amounts have been made to conform to the current year presentation.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash and highly liquid short-term investments, with original maturities of three months or less. The amount is carried at cost, which approximates fair value. At June 30, 2015 and December 31, 2014, cash and cash equivalents consist of cash on deposit with financial institutions, as well as money market mutual funds. General and other accrued expenses payable as of June 30, 2015 and December 31, 2014, include $6.0 million and $1.7 million, respectively, of checks issued in excess of cash book balances, not yet presented for payment. The increase of $4.3 million is directly attributable to checks issued for claim payments related to spring convectional thunderstorm events occurring in the second quarter of 2015.
Investments	Investments The Company's investments are comprised of short-term, restricted, long-term investments and fixed-maturity securities classified as available-for-sale as of June 30, 2015 and December 31, 2014. Restricted investments and long-term investments are described below. Short-term investments include certificates of deposit with original maturities greater than three months and maturities of one year or less. Due to the short-term nature of these investments, significant changes in prevailing interest rates and economic conditions should not adversely affect the timing and amount of cash flows on such investments or their related values. Accordingly, certificates of deposit are carried at cost, which approximates fair value. Fixed-maturity securities are classified as available-for-sale when it is not management's intent to make profits by buying and selling the securities within a short period of time or when it is not management's intent to hold the securities to maturity. Fixed-maturity securities classified as available-for-sale are carried at fair value. The unrealized holding gains and losses, net of applicable deferred income taxes, are shown as a separate component of stockholders' equity as a part of accumulated other comprehensive income (loss) and, as such, are not included in the determination of net income (loss). As of June 30, 2015 and December 31, 2014, the Company has restricted cash and investments, in the amount of $3.3 million and $4.3 million, respectively, pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. The following table provides the Company's restricted cash and investments as of June 30, 2015 and December 31, 2014. Restricted cash and investments June 30, 2015 December 31, 2014 Money Markets $ 300,000 $ 300,000 Certificates of Deposit 2,460,037 3,490,000 US Treasury Bond 542,426 539,654 $ 3,302,463 $ 4,329,654 As of June 30, 2015 and December 31, 2014, the Company's investments also included certificates of deposit that mature more than one year after the balance sheet date and are reflected on the consolidated balance sheets as Long-term investments. Based on management's intent to hold to maturity, these investments are carried at cost. Cost approximates fair value based on the rates currently offered for deposits of similar remaining maturities. The Company's investments in certificates of deposits and money market accounts do not qualify as securities as defined in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 320, Investment – Debt and Equity Securities. Accordingly, the fair value disclosures required by FASB ASC Topic 820, Fair Value Measurements and Disclosures are not provided. The Company's fixed-maturity securities classified as available-for-sale are "marked to market" as of the end of each calendar quarter. As of that date, unrealized gains and losses are recorded to Accumulated Other Comprehensive Income, except where such securities are deemed to be other-than-temporarily impaired. Where applicable, the Company assesses investments of an issuer currently carrying a net unrealized loss. If in management's judgment, the decline in value is other than temporary, the cost of the investment is written down to fair value with a corresponding charge to earnings. Factors considered in determining whether an impairment exists include financial condition, business prospects and creditworthiness of the issuer, the length of time and magnitude that the asset value has been less than cost, and the ability and intent to hold such investments until the fair value recovers.
Comprehensive Income	Comprehensive Income FASB ASC Topic 220 - Comprehensive Income, requires that recognized revenues, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the consolidated balance sheet, these items, along with net income (loss), are components of comprehensive income. The Company characterizes their fixed income portfolio as available-for-sale securities when it is not management's intent to make profits by buying and selling the securities within a short period of time or when it is not management's intent to hold the securities to maturity, with appropriate adjustments to other comprehensive income. For the three and six months ended June 30, 2015, the Company recorded unrealized losses of $(5,533) and unrealized gains of $1,143, respectively, on available-for-sale securities in other comprehensive income. For the three and six months ended June 30, 2014, the Company recorded $5,152 of unrealized gains on available-for-sale securities in other comprehensive income.
Recognition of Premium Revenues	Recognition of Premium Revenues Premiums are recognized as revenue on a daily pro rata basis over the policy term. The portion of premiums related to the unexpired term of policies in force as of the end of the measurement period and to be earned over the remaining term of those polices, is deferred and reported as unearned premiums.
Ceding Commission and Reinsurance Profit Share	Ceding Commissions and Reinsurance Profit Share Ceding commissions represent acquisition costs associated with insurance risk ceded to reinsurers and is earned on a pro-rata basis over the life of the associated policy. Reinsurance profit share is additional ceding commissions payable to the Company based upon attaining specified loss ratios within individual treaty years. Reinsurance profit share income is recognized when earned, which includes adjustments to earned reinsurance profit share based on changes in incurred losses and reserves for future loss development.
Policy Fees	Policy Fees Policy fee income collected by the Company's MGA, includes application fees which are intended to reimburse the Company for a portion of the costs incurred in establishing the insurance. Policy fees on policies where premium is traditionally paid in full upon inception of the policy are recognized when written, while fees charged on policies where premiums are paid in installments, are recognized when collected.
Loss Adjustment and Other Fee Income	Loss Adjustment and Other Fee Income Loss adjustment and other fee income is recognized as income when collected. Loss adjustment income for the three and six months ended June 30, 2015 was 8.3 % and 5.9 %, respectively, of total revenue on the consolidated statements of operations. Loss adjustment income for the three and six months ended June 30, 2014 was 6.4 % and 5.5 %, respectively, of total revenue on the consolidated statements of operations.
Property, Equipment and Software	Property, Equipment and Software Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets, which range from three to five years. The cost and related accumulated depreciation of assets sold or disposed are removed from the accounts and the resulting gain or loss is included in the consolidated statements of operations. Maintenance and repairs are expensed as incurred. Software installation and development is stated at cost, net of accumulated amortization. Amortization is calculated on a straight-line basis method over three years.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets, such as property, equipment and software, are reviewed for impairment whenever business events or circumstances could lead to or indicate that the value of the asset may not be recoverable. The assessment of possible impairment is based on whether the carrying amount of the assets exceeds its fair value. The Company uses estimates of undiscounted future cash flows in determining the recoverability of long-lived assets. As of June 30, 2015 and December 31, 2014, no impairment has been recorded.
Deferred Policy and Acquisition Costs	Deferred Policy and Acquisition Costs Deferred policy acquisitions costs ("DAC") as of June 30, 2015 and December 31, 2014, consist of commissions, premium taxes and policy underwriting and production expenses which are incurred through and vary directly with, the level of production of new and renewal insurance business and are amortized over the terms of the policies they relate to. The method used in calculating DAC limits the amount of the deferred cost to their estimated realizable value, which gives effect to allocating their expense along with other period costs associated with the insurance business, in relation to the amount of gross premium earned on policies to which they relate and investment income. DAC is reviewed to determine if it is recoverable from future income, including investment income. The amount of DAC considered recoverable could be reduced in the near term if management's estimates of future premium and investment income is reduced which could impair the Company's ability to recover these costs.
Reserve for Losses and Loss Adjustment Expenses	Reserve for Losses and Loss Adjustment Expenses The liability for losses and loss adjustment expenses ("LAE") are estimates of the amounts required to cover known incurred losses and LAE, developed through the review and assessment of loss reports, along with the development of known claims. In addition, loss and loss adjustment expense reserves include management's estimate of an amount for losses incurred but not reported ("IBNR"), determined from reviewing overall loss reporting patterns as well as the loss development cycles of individual claim cases. Such liabilities are necessarily based on estimates and while management believes that the amount is adequate, the ultimate liability may be more or less than the amounts provided. The approach and methods for making such estimates and for establishing the resulting liability are continually reviewed and any adjustments are reflected in current earnings.
Due and Deferred Premiums	Due and Deferred Premiums Due and deferred premiums consist of uncollateralized premiums and agents' balances in the course of collection as well as premiums booked but not yet due.
Reinsurance	Reinsurance In the normal course of business, the Company seeks to reduce the overall exposure to losses that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk with other insurance enterprises or reinsurers. The Company uses only quality, financially rated reinsurers and continually monitors the financial ratings of these companies through its brokers. The amount and type of reinsurance purchased each year is based on management's analysis of liquidity and its estimate of its probable maximum loss and the conditions within the reinsurance market. The Company continually monitors its risk exposure through the use of the AIR modeling system and other modeling tools provided by its reinsurance brokers. Reinsurance premiums, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums paid for reinsurance are reported as reductions of earned premium income.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss carryforwards, and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In assessing the realizable value of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.
Uncertain Tax Positions	Uncertain Tax Positions The Company recognizes uncertain tax positions in the consolidated financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns, and that its accruals for tax liabilities are adequate for all open tax years based on an assessment of many factors including experience and interpretations of tax laws applied to the facts of each matter. At June 30, 2015, the Company's tax years from 2010 through 2014 remain subject to examination.
Estimates	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 liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's primary areas of estimate are for liabilities for unpaid losses and loss adjustment expenses, deferred policy acquisition costs, deferred tax asset valuation, and reinsurance. Actual results could differ significantly from those estimates.
Fair Value Cash, Cash Equivalents and Short-term Investments	Fair Value of Cash, Cash Equivalents and Short-term Investments The carrying value for the Company's cash and cash equivalents and short-term investments approximate fair values as of June 30, 2015 and December 31, 2014 due to their short-term nature. Fair value for securities are based on the framework for measuring fair value established by FASB ASC Topic 820, Fair Value Measurements and Disclosures.
Fair Value of Fixed-Maturity Securities held as Available-for-Sale	Fair Value Fixed-Maturity Securities held as Available-for-Sale The Company's fixed-maturity securities held as available-for-sale are carried at fair value as of June 30, 2015 and December 31, 2014. Fair value for securities are based on the framework for measuring fair value established by FASB ASC Topic 820, Fair Value Measurements and Disclosures.
Stock Based Compensation	Stock Based Compensation The Company accounts for stock-based compensation under the fair value recognition provisions of FASB ASC Topic 718 – Compensation – Stock Compensation, which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock issuances based on estimated fair values. In accordance with FASB ASC Topic 718, the Company recognizes stock-based compensation, if any, in the consolidated statements of operations on a straight line basis over the vesting period of the stock award. For those stock awards vesting 100% at the issue date, the Company recognizes stock-based compensation immediately.
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings (loss) per share of common stock is computed by dividing net income or loss, less cumulative preferred stock dividends for the period whether or not earned or paid, by the weighted-average number of common shares during the period. Diluted earnings (loss) per share of common stock is computed by dividing net income or loss attributable to common stockholders, adjusted for the effect of potentially dilutive securities, by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include convertible notes payable, outstanding convertible preferred stock and common stock options.

ORGANIZATION AND SUMMARY OF S25

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2015
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Restricted cash and investments	The following table provides the Company's restricted cash and investments as of June 30, 2015 and December 31, 2014. Restricted cash and investments June 30, 2015 December 31, 2014 Money Markets $ 300,000 $ 300,000 Certificates of Deposit 2,460,037 3,490,000 US Treasury Bond 542,426 539,654 $ 3,302,463 $ 4,329,654

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
INVESTMENTS [Abstract]
Short-term, restricted and long-term investment holdings	The following table provides the Company's short-term, restricted and long-term investment holdings by type of financial instruments that were used to estimate the fair value disclosures for financial instruments as of June 30, 2015 and December 31, 2014, respectively: June 30, 2015 December 31, 2014 Book Value Fair Value / Carrying Value Book Value Fair Value / Carrying Value Financial Instruments, excluding fixed maturities: Restricted certificates of deposit $ 2,460,037 $ 2,460,037 $ 3,490,000 $ 3,490,000 Restricted money markets 300,000 300,000 300,000 300,000 Long-term investments 10,535,000 10,535,000 3,430,000 3,430,000 Short-term investments 785,000 785,000 1,231,881 1,231,881 Total $ 14,080,037 $ 14,080,037 $ 8,451,881 $ 8,451,881 June 30, 2015 December 31, 2014 Range of Maturities Interest Rates Range of Maturities Interest Rates Restricted certificates of deposit Less than 1 year 0.30% - 0.80% Less than 1 year 0.10% - 0.40% Restricted certificates of deposit More than 1 year 0.35% - 1.40% More than 1 year 0.35% - 1.40% Restricted money markets Less than 1 year - Less than 1 year - Long-term investments More than 1 year 0.45% - 1.50% More than 1 year 0.75% - 1.50% Short-term investments Less than 1 year 0.05% - 0.75% Less than 1 year 0.35% - 0.70%
Fixed-maturity securities classified as available-for-sale	The following table provides the Company's fixed-maturity securities classified as available-for-sale which are carried at fair value as of June 30, 2015 and December 31, 2014: June 30, 2015 Gross Unrealized Amortized Cost Gains Losses Fair Value Fixed Maturities: Obligations of states, municipalities and political subdivisions $ 3,379,087 $ 6,942 $ (9,188 ) $ 3,376,841 U.S. Treasury- held as restricted 539,646 2,780 - 542,426 Total Fixed Maturities $ 3,918,733 $ 9,722 $ (9,188 ) $ 3,919,267 December 31, 2014 Gross Unrealized Amortized Cost Gains Losses Fair Value Fixed Maturities: Obligations of states, municipalities and political subdivisions $ 3,827,268 $ 6,331 $ (6,354 ) $ 3,827,245 U.S. Treasury- held as restricted 539,558 96 - 539,654 Total Fixed Maturities $ 4,366,826 $ 6,427 $ (6,354 ) $ 4,366,899
Available-for-sale fixed-maturity securities by contractual maturity	The amortized cost and fair value of available-for-sale fixed-maturity securities at June 30, 2015 and December 31, 2014, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2015 Remaining Time to Maturity Amortized Cost Basis Fair Value Due in one year or less $ 645,726 $ 644,136 Due after one year through five years 1,982,995 1,984,354 Due after five years through ten years 90,222 89,704 Due after ten years 1,199,790 1,201,073 Total $ 3,918,733 $ 3,919,267 December 31, 2014 Remaining Time to Maturity Amortized Cost Basis Fair Value Due in one year or less $ 570,236 $ 569,734 Due after one year through five years 1,985,297 1,981,134 Due after five years through ten years 162,124 162,519 Due after ten years 1,649,169 1,653,512 Total $ 4,366,826 $ 4,366,899
Available-for-sale securities, continuous unrealized loss position, fair value	Securities with gross unrealized loss positions at June 30, 2015 and December 31, 2014, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Greater Total As of June 30, 2015 Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Fixed-maturity securities Obligations of states, municipalities and political subdivisions $ (7,841 ) $ 1,652,654 $ (1,347 ) $ 249,148 $ (9,188 ) $ 1,901,802 U.S. Treasury - held as restricted - - - - - - Total available-for-sale securities $ (7,841 ) $ 1,652,654 $ (1,347 ) $ 249,148 $ (9,188 ) $ 1,901,802 At June 30, 2015, there were 31 securities in an unrealized loss position. Of these securities, four securities had been in an unrealized loss position for 12 months or greater. Less Than Twelve Months Twelve Months or Greater Total As of December 31, 2014 Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Gross Unrealized Loss Estimated Fair Value Fixed-maturity securities Obligations of states, municipalities and political subdivisions $ (6,354 ) $ 2,392,217 $ - $ - $ (6,354 ) $ 2,392,217 U.S. Treasury - held as restricted - - - - - - Total available-for-sale securities $ (6,354 ) $ 2,392,217 $ - $ - $ (6,354 ) $ 2,392,217 At December 31, 2014, there were 31 securities in an unrealized loss position. The Company began it's investment in these securities in June 2014, therefore none of these securities had been in an unrealized loss position for 12 months or greater at December 31, 2014.

FAIR VALUE OF FINANCIAL INSTR27

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
Financial assets measured at fair value on a recurring basis	The Company's short-term investments comprised of certificates of deposit held at financial institutions which are not measured at fair value on a recurring basis. A portion of the Company's cash and cash equivalents include money market mutual fund accounts held at financial institutions which are measured at fair value on a recurring basis. Fixed-maturity securities held as available-for-sale are carried at fair value in our consolidated financial statements. The following tables provide information as of June 30, 2015 and December 31, 2014, about the Company's financial assets measured at fair value on a recurring basis: Fair Value Measurements Using Level 1 Level 2 Level 3 Total As of June 30, 2015 Money market mutual funds $ 2,587,891 $ - $ - $ 2,587,891 Restricted money market mutual funds 300,000 - - 300,000 Securities-available-for-sale fixed-maturity: Obligations of states, municipalities and political subdivisions - 3,376,841 - 3,376,841 U.S. Treasury - 542,426 - 542,426 Total $ 2,887,891 $ 3,919,267 $ - $ 6,807,158 Fair Value Measurements Using Level 1 Level 2 Level 3 Total As of December 31, 2014 Money market mutual funds $ 3,372,527 $ - $ - $ 3,372,527 Restricted money market mutual funds 300,000 - - 300,000 Securities-available-for-sale fixed-maturity: Obligations of states, municipalities and political subdivisions - 3,827,245 - 3,827,245 U.S. Treasury - 539,654 - 539,654 Total $ 3,672,527 $ 4,366,899 $ - $ 8,039,426

PROPERTY, EQUIPMENT, AND SOFT28

PROPERTY, EQUIPMENT, AND SOFTWARE NET (Tables)	6 Months Ended
	Jun. 30, 2015
PROPERTY, EQUIPMENT, AND SOFTWARE NET [Abstract]
Property, equipment and software, net	Property, equipment, and software net consist of the following as of June 30, 2015 and December 31, 2014, respectively: June 30, 2015 December 31, 2014 Useful Life Computer equipment $ 235,854 $ 231,860 3 years Office equipment 17,409 17,409 5 years Furniture and fixtures 142,450 142,450 5 years Software installation and development 956,319 929,316 3 years Total, at cost 1,352,032 1,321,035 Less accumulated depreciation and amortization (1,053,136 ) (976,540 ) Property and equipment, net $ 298,896 $ 344,495

DEFERRED POLICY ACQUISITION C29

DEFERRED POLICY ACQUISITION COSTS (Tables)	6 Months Ended
	Jun. 30, 2015
DEFERRED POLICY ACQUISITION COSTS [Abstract]
Deferred policy acquisition costs	Changes in deferred policy acquisition costs for the three and six months ended June 30, 2015 and June 30, 2014, are as follows: Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Deferred policy acquisition charges, beginning of the period $ 7,861,318 $ 6,216,053 $ 7,897,806 $ 6,214,334 Capitalized costs 4,580,309 3,823,911 8,121,989 6,658,406 Amortized costs (3,698,173 ) (3,062,261 ) (7,276,341 ) (5,895,037 ) Deferred policy acquisition charges, end of the period $ 8,743,454 $ 6,977,703 $ 8,743,454 $ 6,977,703

UNPAID LOSSES AND LOSS ADJUST30

UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2015
UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES [Abstract]
Reserve balances for losses and LAE, gross of reinsurance	The following table provides the reconciliation of the beginning and ending reserve balances for losses and LAE, gross of reinsurance for the three and six months ended June 30, 2015 and for June 30, 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Reserve for losses and LAE, beginning of period $ 14,768,255 $ 17,462,319 $ 15,009,506 $ 15,884,062 Reinsurance recoverables on losses and LAE (13,650,287 ) (16,707,683 ) (13,995,400 ) (15,090,175 ) Reserve for losses and LAE, net of reinsurance recoverables at beginning of year 1,117,968 754,636 1,014,106 793,887 Add provision for claims and LAE occurring in: Current year 2,084,556 1,036,258 2,475,033 1,135,234 Prior years 379,045 48,905 665,738 300,905 Net incurred losses and LAE during the current period 2,463,601 1,085,163 3,140,771 1,436,139 Deduct payments for claims and LAE occurring in: Current year 1,113,943 845,517 1,339,558 1,013,116 Prior years 178,691 146,924 526,384 369,552 Net claim and LAE payments during the current period 1,292,634 992,441 1,865,942 1,382,668 Reserve for losses and LAE, net of reinsurance recoverables, at end of period 2,288,935 847,358 2,288,935 847,358 Reinsurance recoverables on losses and LAE 25,914,880 21,025,809 25,914,880 21,025,809 Reserve for losses and LAE, end of period $ 28,203,815 $ 21,873,167 $ 28,203,815 $ 21,873,167

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
EARNINGS (LOSS) PER SHARE [Abstract]
Basic and diluted earnings per share	The following table represents the reconciliation of the Company's basic earnings per common share and diluted earnings per common share computations reported on the Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Basic earnings per common share Net income $ 303,155 $ 485,836 $ 1,322,132 $ 961,081 Cumulative dividend - - - - Adjusted net income $ 303,155 $ 485,836 $ 1,322,132 $ 961,081 Weighted average common shares outstanding 16,397,292 16,152,102 16,359,080 16,087,775 Basic earnings per common share $ 0.02 $ 0.03 $ 0.08 $ 0.06 Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Diluted earnings per common share Net income $ 303,155 $ 485,836 $ 1,322,132 $ 961,081 Weighted average common shares outstanding 16,397,292 16,152,102 16,359,080 16,087,775 Effect of diluted securities: Stock options 1,317,500 933,750 1,317,500 933,750 Diluted common shares outstanding 17,714,792 17,085,852 17,676,580 17,021,525 Diluted earnings per common share $ 0.02 $ 0.03 $ 0.07 $ 0.06

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2015
STOCK BASED COMPENSATION [Abstract]
Stock option plan activity	A summary of the activity of the Company's stock option plan for the three and six months ended June 30, 2015 and June 30, 2014 is as follows: Number of Options Weighted Avg Exercise Price Weighted Avg Remaining Cont. Term Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2014 2,738,500 $ 0.59 7.32 $ 226 Outstanding at March 31, 2015 2,737,500 $ 0.59 7.07 $ 747 Outstanding at June 30, 2015 2,737,500 $ 0.59 6.83 $ 825 Exercisable at June 30, 2015 1,317,500 $ 0.67 5.46 $ 305 Outstanding at December 31, 2013 2,708,750 $ 0.58 8.41 $ 4 Outstanding at March 31, 2014 2,708,750 $ 0.58 8.16 $ 21 Outstanding at June 30, 2014 2,708,750 $ 0.58 7.91 $ 22 Exercisable at June 30, 2014 933,750 $ 0.73 5.35 $ 6
Stock-based compensation expense	The Company records stock-based compensation expense related to granting stock options in general and administrative expenses. The Company recognized compensation expense as follows for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Total gross compensation expense $ 8,736 $ 8,703 $ 17,472 $ 44,168 Total tax benefit associated with compensation expense (171 ) (172 ) (343 ) (7,335 ) Total net compensation expense $ 8,565 $ 8,531 $ 17,129 $ 36,833
Unrecognized compensation expense	As of June 30, 2015, the Company expects to record compensation expense in the future as follows: Six months ending Year ending December 31, December 31, 2015 2016 2017 2018 2019 Total gross unrecognized compensation expense $ 17,472 $ 34,944 $ 34,944 $ 28,365 $ 81 Tax benefit associated with unrecognized compensation expense (686 ) (686 ) (686 ) (556 ) - Total net unrecognized compensation expense $ 16,786 $ 34,258 $ 34,258 $ 27,809 $ 81

REINSURANCE (Tables)

REINSURANCE (Tables)	6 Months Ended
	Jun. 30, 2015
REINSURANCE [Abstract]
Effects of reinsurance	The effects of reinsurance on premiums written and earned were as follows, for the three and six months ended June 30, 2015 and June 30, 2014: Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Written Earned Written Earned Direct premiums $ 24,723,763 $ 19,877,533 $ 19,487,640 $ 15,596,506 Ceded premiums (20,859,585 ) (18,569,573 ) (17,036,125 ) (14,346,738 ) Net Premiums $ 3,864,178 $ 1,307,960 $ 2,451,515 $ 1,249,768 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Written Earned Written Earned Direct premiums $ 42,981,796 $ 38,311,214 $ 33,916,585 $ 30,040,628 Ceded premiums (37,025,964 ) (35,812,963 ) (29,919,140 ) (27,493,194 ) Net Premiums $ 5,955,832 $ 2,498,251 $ 3,997,445 $ 2,547,434 Following is a summary of HAIC's reinsurance balances under the above described reinsurance treaties as of and for the three and six months ended June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 Ceded premiums payable $ 9,776,550 $ 4,342,874 Ceded loss and loss adjustment expense reserve $ 25,914,880 $ 13,995,400 Ceded unearned premium reserve $ 38,865,333 $ 35,442,177 Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Ceded loss adjustment expenses $ 2,206,998 $ 1,691,602 $ 3,032,506 $ 2,647,656 Ceded earned premiums $ 18,569,573 $ 14,346,738 $ 35,812,963 $ 27,493,194

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
Future minimum lease payments	The Company leases its corporate office space and certain office equipment under non-cancelable operating leases which expire at various dates through 2019. Future minimum lease payments required under the non-cancelable operating leases are as follows for the years ending December 31: 2015 (6 months) $ 84,774 2016 177,409 2017 93,984 2018 22,188 2019 12,519 $ 390,874

ORGANIZATION AND SUMMARY OF S35

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Cash and Cash Equivalents [Abstract]
Checks issued in excess of cash book balances not yet presented for payment	$ 6,000,000		$ 6,000,000		$ 1,700,000
Checks issued for claim payments related to spring convectional thunderstorm events	4,300,000		4,300,000
Restricted Cash and Investments [Abstract]
Restricted cash and investments	3,302,463		3,302,463		4,329,654
Comprehensive Income [Abstract]
Unrealized gains on available-for-sale securities	(5,533)	$ 5,152	1,143	$ 5,152
Impairment of Long-Lived Assets [Abstract]
Impairment charges			$ 0		0
Stock Based Compensation [Abstract]
Vesting percentage of stock awards			100.00%
Money Market [Member]
Restricted Cash and Investments [Abstract]
Restricted cash and investments	300,000		$ 300,000		300,000
Certificates of Deposit [Member]
Restricted Cash and Investments [Abstract]
Restricted cash and investments	2,460,037		2,460,037		3,490,000
US Treasury Bond [Member]
Restricted Cash and Investments [Abstract]
Restricted cash and investments	$ 542,426		$ 542,426		$ 539,654
Homeowners of America Insurance Company [Member]
Organization and Summary of Significant Accounting Policies [Abstract]
Noncontrolling interest, ownership percentage by Parent	100.00%		100.00%
Homeowners of America MGA Inc [Member]
Organization and Summary of Significant Accounting Policies [Abstract]
Noncontrolling interest, ownership percentage by Parent	100.00%		100.00%
Property and Equipment [Member] | Maximum [Member]
Property, Equipment and Software [Abstract]
Useful life			5 years
Property and Equipment [Member] | Minimum [Member]
Property, Equipment and Software [Abstract]
Useful life			3 years
Software Installation and Development [Member]
Property, Equipment and Software [Abstract]
Useful life			3 years
Revenue [Member] | Loss Adjustment and Other Fee Income [Member]
Loss Adjustment and Other Fee Income [Abstract]
Concentration risk percentage	8.30%	6.40%	5.90%	5.50%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Aug. 31, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Annual Advisory Fee [Member]
Related Party Transactions [Abstract]
Related party transaction amount		$ 75,000	$ 75,000
Inter-Atlantic Advisors III, Ltd. [Member]
Related Party Transactions [Abstract]
Initial term of Advisory Agreement				6 years
Number of days notice required for termination of Advisory Agreement	60 days
Common stock issued		$ 0	$ 0		$ 150,000
Shares of common stock issued (in shares)		0	0		288,462
Inter-Atlantic Advisors III, Ltd. [Member] | Annual Advisory Fee [Member]
Related Party Transactions [Abstract]
Related party transaction amount	$ 300,000			$ 300,000	$ 300,000
Inter-Atlantic Advisors III, Ltd. [Member] | Annual Grant of Shares [Member]
Related Party Transactions [Abstract]
Related party transaction amount	$ 150,000
Common stock issued				$ 150,000
Shares of common stock issued (in shares)				227,273

INVESTMENTS (Details)

INVESTMENTS (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)Security	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)Security	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)Security
INVESTMENTS [Abstract]
Investment income, net of investment expenses	$ 31,834	$ 1,794	$ 47,966	$ 9,242
Unrealized gains (losses)	(5,533)	5,152	1,143	5,152
Realized gains	1,000	0	1,000	0
Realized losses	0	$ 0	0	$ 0
Investment Holdings [Abstract]
Book value	14,080,037		14,080,037		$ 8,451,881
Fair value carrying value	14,080,037		14,080,037		8,451,881
Fixed-Maturity Securities Classified as Available-for-Sale [Abstract]
Amortized cost	3,379,087		3,379,087		3,827,268
Fair value	3,376,841		3,376,841		3,827,245
Amortized Cost Basis, Remaining Time to Maturity [Abstract]
Amortized cost basis, due in one year or less	645,726		645,726		570,236
Amortized cost basis, due after one year through five years	1,982,995		1,982,995		1,985,297
Amortized cost basis, due after five years through ten years	90,222		90,222		162,124
Amortized cost basis, due after ten years	1,199,790		1,199,790		1,649,169
Amortized cost basis, total	3,918,733		3,918,733		4,366,826
Fair Value, Remaining Time to Maturity [Abstract]
Fair value, due in one year or less	644,136		644,136		569,734
Fair value, due after one year through five years	1,984,354		1,984,354		1,981,134
Fair value, due after five years through ten years	89,704		89,704		162,519
Fair value, due after ten years	1,201,073		1,201,073		1,653,512
Fair value, total	3,919,267		3,919,267		4,366,899
Continuous Unrealized Loss Position [Abstract]
Gross unrealized loss, less than twelve months	(7,841)		(7,841)		(6,354)
Gross unrealized loss, twelve months or greater	(1,347)		(1,347)		0
Gross unrealized loss, total	(9,188)		(9,188)		(6,354)
Estimated fair value, less than twelve months,	1,652,654		1,652,654		2,392,217
Estimated fair value, twelve months or greater	249,148		249,148		0
Estimated fair value, total	$ 1,901,802		$ 1,901,802		$ 2,392,217
Number of securities in unrealized loss position | Security	31		31		31
Number of securities in unrealized loss position for 12 months or greater | Security	4		4		0
Fixed Maturities [Member]
Fixed-Maturity Securities Classified as Available-for-Sale [Abstract]
Amortized cost	$ 3,918,733		$ 3,918,733		$ 4,366,826
Gross unrealized gains	9,722		9,722		6,427
Gross unrealized losses	(9,188)		(9,188)		(6,354)
Fair value	3,919,267		3,919,267		4,366,899
Obligations of States, Municipalities and Political Subdivisions [Member]
Fixed-Maturity Securities Classified as Available-for-Sale [Abstract]
Amortized cost	3,379,087		3,379,087		3,827,268
Gross unrealized gains	6,942		6,942		6,331
Gross unrealized losses	(9,188)		(9,188)		(6,354)
Fair value	3,376,841		3,376,841		3,827,245
Continuous Unrealized Loss Position [Abstract]
Gross unrealized loss, less than twelve months	(7,841)		(7,841)		(6,354)
Gross unrealized loss, twelve months or greater	(1,347)		(1,347)		0
Gross unrealized loss, total	(9,188)		(9,188)		(6,354)
Estimated fair value, less than twelve months,	1,652,654		1,652,654		2,392,217
Estimated fair value, twelve months or greater	249,148		249,148		0
Estimated fair value, total	1,901,802		1,901,802		2,392,217
U.S. Treasury - Held as Restricted [Member]
Fixed-Maturity Securities Classified as Available-for-Sale [Abstract]
Amortized cost	539,646		539,646		539,558
Gross unrealized gains	2,780		2,780		96
Gross unrealized losses	0		0		0
Fair value	542,426		542,426		539,654
Continuous Unrealized Loss Position [Abstract]
Gross unrealized loss, less than twelve months	0		0		0
Gross unrealized loss, twelve months or greater	0		0		0
Gross unrealized loss, total	0		0		0
Estimated fair value, less than twelve months,	0		0		0
Estimated fair value, twelve months or greater	0		0		0
Estimated fair value, total	0		0		0
Restricted Certificates of Deposit [Member]
Investment Holdings [Abstract]
Book value	2,460,037		2,460,037		3,490,000
Fair value carrying value	2,460,037		$ 2,460,037		$ 3,490,000
Restricted Certificates of Deposit Maturing in Less than One Year [Member]
Investment Holdings [Abstract]
Range of maturities			Less than 1 year		Less than 1 year
Restricted Certificates of Deposit Maturing in Less than One Year [Member] | Maximum [Member]
Investment Holdings [Abstract]
Interest rate			0.80%		0.40%
Restricted Certificates of Deposit Maturing in Less than One Year [Member] | Minimum [Member]
Investment Holdings [Abstract]
Interest rate			0.30%		0.10%
Restricted Certificates of Deposit Maturing in More than One Year [Member]
Investment Holdings [Abstract]
Range of maturities			More than 1 year		More than 1 year
Restricted Certificates of Deposit Maturing in More than One Year [Member] | Maximum [Member]
Investment Holdings [Abstract]
Interest rate			1.40%		1.40%
Restricted Certificates of Deposit Maturing in More than One Year [Member] | Minimum [Member]
Investment Holdings [Abstract]
Interest rate			0.35%		0.35%
Restricted Money Markets [Member]
Investment Holdings [Abstract]
Book value	300,000		$ 300,000		$ 300,000
Fair value carrying value	300,000		$ 300,000		$ 300,000
Range of maturities			Less than 1 year		Less than 1 year
Long-Term Investments [Member]
Investment Holdings [Abstract]
Book value	10,535,000		$ 10,535,000		$ 3,430,000
Fair value carrying value	10,535,000		$ 10,535,000		$ 3,430,000
Range of maturities			More than 1 year		More than 1 year
Long-Term Investments [Member] | Maximum [Member]
Investment Holdings [Abstract]
Interest rate			1.50%		1.50%
Long-Term Investments [Member] | Minimum [Member]
Investment Holdings [Abstract]
Interest rate			0.45%		0.75%
Short-Term Investments [Member]
Investment Holdings [Abstract]
Book value	785,000		$ 785,000		$ 1,231,881
Fair value carrying value	$ 785,000		$ 785,000		$ 1,231,881
Range of maturities			Less than 1 year		Less than 1 year
Short-Term Investments [Member] | Maximum [Member]
Investment Holdings [Abstract]
Interest rate			0.75%		0.70%
Short-Term Investments [Member] | Minimum [Member]
Investment Holdings [Abstract]
Interest rate			0.05%		0.35%

FAIR VALUE OF FINANCIAL INSTR38

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Securities-available-for-sale fixed maturity [Abstract]
U.S. treasury	$ 542,426	$ 539,654
Fair Value Measured on a Recurring Basis [Member]
Fair Value of Financial Assets [Abstract]
Money market mutual funds	2,587,891	3,372,527
Restricted money market mutual funds	300,000	300,000
Securities-available-for-sale fixed maturity [Abstract]
Obligations of states, municipalities and political subdivisions	3,376,841	3,827,245
U.S. treasury	542,426	539,654
Total assets	6,807,158	8,039,426
Transfers Between Level 1 and Level 2 [Abstract]
Transfers from Level 1 to Level 2	0
Transfers from Level 2 to Level 1	0
Fair Value Measured on a Recurring Basis [Member] | Level 1 [Member]
Fair Value of Financial Assets [Abstract]
Money market mutual funds	2,587,891	3,372,527
Restricted money market mutual funds	300,000	300,000
Securities-available-for-sale fixed maturity [Abstract]
Obligations of states, municipalities and political subdivisions	0
U.S. treasury	0	0
Total assets	2,887,891	3,672,527
Fair Value Measured on a Recurring Basis [Member] | Level 2 [Member]
Fair Value of Financial Assets [Abstract]
Money market mutual funds	0	0
Restricted money market mutual funds	0	0
Securities-available-for-sale fixed maturity [Abstract]
Obligations of states, municipalities and political subdivisions	3,376,841	3,827,245
U.S. treasury	542,426	539,654
Total assets	3,919,267	4,366,899
Fair Value Measured on a Recurring Basis [Member] | Level 3 [Member]
Fair Value of Financial Assets [Abstract]
Money market mutual funds	0	0
Restricted money market mutual funds	0	0
Securities-available-for-sale fixed maturity [Abstract]
Obligations of states, municipalities and political subdivisions	0
U.S. treasury	0	0
Total assets	$ 0	$ 0

PROPERTY, EQUIPMENT, AND SOFT39

PROPERTY, EQUIPMENT, AND SOFTWARE NET (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Property, Equipment, and Software, Net [Abstract]
Total, at cost	$ 1,352,032		$ 1,352,032		$ 1,321,035
Less accumulated depreciation and amortization	(1,053,136)		(1,053,136)		(976,540)
Property and equipment, net	298,896		298,896		344,495
Depreciation and amortization expense	38,235	$ 26,677	76,597	$ 53,972
Computer Equipment [Member]
Property, Equipment, and Software, Net [Abstract]
Total, at cost	235,854		$ 235,854		231,860
Useful life			3 years
Office Equipment [Member]
Property, Equipment, and Software, Net [Abstract]
Total, at cost	17,409		$ 17,409		17,409
Useful life			5 years
Furniture and Fixtures [Member]
Property, Equipment, and Software, Net [Abstract]
Total, at cost	142,450		$ 142,450		142,450
Useful life			5 years
Software Installation and Development [Member]
Property, Equipment, and Software, Net [Abstract]
Total, at cost	$ 956,319		$ 956,319		$ 929,316
Useful life			3 years

DEFERRED POLICY ACQUISITION C40

DEFERRED POLICY ACQUISITION COSTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
DEFERRED POLICY ACQUISITION COSTS [Abstract]
Deferred policy acquisition charges, beginning of the period	$ 7,861,318	$ 6,216,053	$ 7,897,806	$ 6,214,334
Capitalized costs	4,580,309	3,823,911	8,121,989	6,658,406
Amortized costs	(3,698,173)	(3,062,261)	(7,276,341)	(5,895,037)
Deferred policy acquisition charges, end of the period	$ 8,743,454	$ 6,977,703	$ 8,743,454	$ 6,977,703

UNPAID LOSSES AND LOSS ADJUST41

UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES [Abstract]
Reserve for losses and LAE, beginning of period	$ 14,768,255	$ 17,462,319	$ 15,009,506	$ 15,884,062
Reinsurance recoverables on losses and LAE	(13,650,287)	(16,707,683)	(13,995,400)	(15,090,175)
Reserve for losses and LAE, net of reinsurance recoverables at beginning of year	1,117,968	754,636	1,014,106	793,887
Add provision for claims and LAE occurring in:
Current year	2,084,556	1,036,258	2,475,033	1,135,234
Prior years	379,045	48,905	665,738	300,905
Net incurred losses and LAE during the current period	2,463,601	1,085,163	3,140,771	1,436,139
Deduct payments for claims and LAE occurring in:
Current year	1,113,943	845,517	1,339,558	1,013,116
Prior years	178,691	146,924	526,384	369,552
Net claim and LAE payments during the current period	1,292,634	992,441	1,865,942	1,382,668
Reserve for losses and LAE, net of reinsurance recoverables, at end of period	2,288,935	847,358	2,288,935	847,358
Reinsurance recoverables on losses and LAE	25,914,880	21,025,809	25,914,880	21,025,809
Reserve for losses and LAE, end of period	28,203,815	21,873,167	28,203,815	21,873,167
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years	$ 379,045	$ 48,905	$ 665,738	$ 300,905

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	Jun. 16, 2015	Feb. 01, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Feb. 02, 2015
STOCKHOLDERS' EQUITY [Abstract]
Preferred stock, shares authorized (in shares)			20,500,000		20,500,000		20,500,000
Preferred stock, convertible cumulative percentage					12.50%		12.50%
Preferred stock, par value (in dollars per share)			$ 0.0001		$ 0.0001		$ 0.0001
Preferred stock, shares issued (in shares)			0		0		0
Preferred stock, shares outstanding (in shares)			0		0		0
Common stock, shares authorized (in shares)			40,000,000	40,000,000	40,000,000	40,000,000	40,000,000
Common stock, shares issued (in shares)			17,708,125	17,469,602	17,708,125	17,469,602	17,479,852
Common stock, shares outstanding (in shares)			16,398,125	16,119,602	16,398,125	16,119,602	16,168,852
Common stock, par value (in dollars per share)			$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, voting rights					1	1	1
Common stock compensation for management services		$ 150,000			$ 150,000	$ 150,000
Common stock issued (in shares)	1,000	227,273
Common stock issued, price per share (in dollars per share)	$ 0.71							$ 0.66
Common stock warrants issued			$ 0	$ 0	$ 0	$ 0

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic earnings per common share [Abstract]
Net income	$ 303,155	$ 485,836	$ 1,322,132	$ 961,081
Cumulative dividend	0	0	0	0
Net income available to common stockholders	$ 303,155	$ 485,836	$ 1,322,132	$ 961,081
Weighted average common shares outstanding (in shares)	16,397,292	16,152,102	16,359,080	16,087,775
Basic earnings per common share	$ 0.02	$ 0.03	$ 0.08	$ 0.06
Diluted earnings per common share [Abstract]
Net income	$ 303,155	$ 485,836	$ 1,322,132	$ 961,081
Weighted average common shares outstanding (in shares)	16,397,292	16,152,102	16,359,080	16,087,775
Effect of diluted securities [Abstract]
Stock options (in shares)	1,317,500	933,750	1,317,500	933,750
Diluted common shares outstanding (in shares)	17,714,792	17,085,852	17,676,580	17,021,525
Diluted earnings per common share	$ 0.02	$ 0.03	$ 0.07	$ 0.06

STOCK BASED COMPENSATION, Incen

STOCK BASED COMPENSATION, Incentive Plans (Details) - shares	Jun. 30, 2015	Jun. 30, 2014
2005 Management Incentive Plan [Member]
Incentive Awards [Abstract]
Shares authorized (in shares)	789,475
2005 Management Incentive Plan [Member] | Stock Options [Member]
Incentive Awards [Abstract]
Cumulative awards granted (in shares)	783,750	783,750
2013 Equity Compensation Plan [Member]
Incentive Awards [Abstract]
Shares authorized (in shares)	2,925,000
2013 Equity Compensation Plan [Member] | Stock Options [Member]
Incentive Awards [Abstract]
Cumulative awards granted (in shares)	1,965,000	1,965,000
2013 Equity Compensation Plan [Member] | Stock Award [Member]
Incentive Awards [Abstract]
Cumulative awards granted (in shares)	40,000	39,000

STOCK BASED COMPENSATION, Stock

STOCK BASED COMPENSATION, Stock Option Plan (Details) - Management Incentive Plan 2005 and Equity Compensation Plan 2013 [Member] - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Options [Roll Forward]
Number of options outstanding (in shares)	2,737,500	2,737,500	2,708,750	2,708,750	2,737,500	2,708,750	2,738,500	2,708,750
Number of options exercisable (in shares)	1,317,500		933,750		1,317,500	933,750
Weighted average exercise price, outstanding (in dollars per shares)	$ 0.59	$ 0.59	$ 0.58	$ 0.58	$ 0.59	$ 0.58	$ 0.59	$ 0.58
Weighted average exercise price, exercisable (in dollars per share)	$ 0.67		$ 0.73		$ 0.67	$ 0.73
Weighted average remaining contractual term, outstanding		7 years 25 days		8 years 1 month 28 days	6 years 9 months 29 days	7 years 10 months 28 days	7 years 3 months 25 days	8 years 4 months 28 days
Weighted average remaining contractual term, exercisable					5 years 5 months 16 days	5 years 4 months 6 days
Aggregate intrinsic value, outstanding	$ 825	$ 747	$ 22	$ 21	$ 825	$ 22	$ 226	$ 4
Aggregate intrinsic value, exercisable	$ 305		$ 6		$ 305	$ 6
Options granted	0		0		0	0

STOCK BASED COMPENSATION, Compe

STOCK BASED COMPENSATION, Compensation Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock-Based Compensation Expense [Abstract]
Total tax benefit associated with compensation expense	$ (171)	$ (172)	$ (343)	$ (7,335)
Total net compensation expense	8,565	8,531	17,129	36,833
General and Administrative Expense [Member]
Stock-Based Compensation Expense [Abstract]
Total gross compensation expense	$ 8,736	$ 8,703	$ 17,472	$ 44,168

STOCK BASED COMPENSATION, Futur

STOCK BASED COMPENSATION, Future Compensation Expense (Details)	Jun. 30, 2015USD ($)
STOCK BASED COMPENSATION [Abstract]
Gross unrecognized compensation expense, remainder of 2015	$ 17,472
Tax benefit associated with unrecognized compensation expense, remainder of 2015	(686)
Net unrecognized compensation expense, remainder of 2015	16,786
Gross unrecognized compensation expense, Year ending December 31, 2016	34,944
Tax benefit associated with unrecognized compensation expense, Year ending December 31, 2016	(686)
Net unrecognized compensation expense, Year ending December 31, 2016	34,258
Gross unrecognized compensation expense, Year ending December 31, 2017	34,944
Tax benefit associated with unrecognized compensation expense, Year ending December 31, 2017	(686)
Net unrecognized compensation expense, Year ending December 31, 2017	34,258
Gross unrecognized compensation expense, Year ending December 31, 2018	28,365
Tax benefit associated with unrecognized compensation expense, Year ending December 31, 2018	(556)
Net unrecognized compensation expense, Year ending December 31, 2018	27,809
Gross unrecognized compensation expense, Year ending December 31, 2019	81
Tax benefit associated with unrecognized compensation expense, Year ending December 31, 2019	0
Net unrecognized compensation expense, Year ending December 31, 2019	$ 81

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
INCOME TAXES [Abstract]
Income tax expense (benefit)	$ 188,369	$ 266,262	$ 725,175	$ 522,175
Income tax rate	35.63%	34.30%	34.61%	34.28%

REINSURANCE, Reinsurance Agreem

REINSURANCE, Reinsurance Agreements (Details)	1 Months Ended	3 Months Ended	12 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)OccurenceReinstatementLayer	Mar. 31, 2015USD ($)Layer	Dec. 31, 2014USD ($)Occurence
Property Insurance on Any One Loss Occurrence not to Exceed $90,000,000 [Member] | Maximum [Member]
Reinsurance [Abstract]
Percentage reinsured		40.00%
Reinsurance recoverables on losses and LAE		$ 90,000,000
Property Insurance on Any One Loss Occurrence not to Exceed $175,000,000 [Member] | Maximum [Member]
Reinsurance [Abstract]
Percentage reinsured		50.00%
Reinsurance recoverables on losses and LAE		$ 175,000,000
Casualty Coverage [Member] | Maximum [Member]
Reinsurance [Abstract]
Percentage reinsured		35.00%	64.00%
Non-Weather Losses in Excess of Gross Loss of $500,000 per Occurrence [Member]
Reinsurance [Abstract]
Number of loss occurrences | Occurence		10		2
Non-Weather Losses in Excess of Gross Loss of $500,000 per Occurrence [Member] | Minimum [Member]
Reinsurance [Abstract]
Gross loss covered	$ 500,000	$ 500,000		$ 500,000
Net loss covered	50,000	50,000		$ 50,000
Per Risk Casualty Excess of Loss [Member] | Maximum [Member]
Reinsurance [Abstract]
Gross loss covered	7,150,000	$ 7,150,000
Number of reinstatements | Reinstatement		10
Per occurrence limit	650,000	$ 650,000
Property Catastrophe Treaties [Member]
Reinsurance [Abstract]
Number of layers for reinsurance | Layer		4	4
Property Catastrophe Treaties [Member] | Minimum [Member]
Reinsurance [Abstract]
Term of treaty period		12 months
Property Catastrophe Treaties [Member] | Maximum [Member]
Reinsurance [Abstract]
Percentage reinsured			20.00%
Gross loss covered	175,000,000	$ 175,000,000	$ 110,000,000
Retention payable per occurrence	$ 5,000,000	5,000,000	4,000,000
Net retention per loss occurrence		$ 500,000	$ 400,000
Term of treaty period		24 months
Named Tropical Cyclone Storm Insurance [Member] | Maximum [Member]
Reinsurance [Abstract]
Percentage reinsured	90.00%
Gross loss covered	$ 75,000,000	$ 75,000,000
Return period	250 years
Property Insurance on Any One Loss Occurrence not to Exceed $110,000,000 [Member] | Maximum [Member]
Reinsurance [Abstract]
Percentage reinsured			80.00%
Reinsurance recoverables on losses and LAE			$ 110,000,000
Property Insurance on Any One Loss Occurrence not to Exceed $4,000,000 [Member] | Maximum [Member]
Reinsurance [Abstract]
Percentage reinsured			10.00%
Reinsurance recoverables on losses and LAE			$ 4,000,000

REINSURANCE, Effects of Reinsur

REINSURANCE, Effects of Reinsurance on Premiums Written and Earned (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REINSURANCE [Abstract]
Direct premiums written	$ 24,723,763	$ 19,487,640	$ 42,981,796	$ 33,916,585
Ceded premiums written	(20,859,585)	(17,036,125)	(37,025,964)	(29,919,140)
Net premiums written	3,864,178	2,451,515	5,955,832	3,997,445
Direct premiums earned	19,877,533	15,596,506	38,311,214	30,040,628
Ceded premiums earned	(18,569,573)	(14,346,738)	(35,812,963)	(27,493,194)
Net premiums earned	$ 1,307,960	$ 1,249,768	$ 2,498,251	$ 2,547,434

REINSURANCE, Reinsurance Balanc

REINSURANCE, Reinsurance Balances (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2013
REINSURANCE [Abstract]
Ceded premiums payable	$ 9,776,550		$ 9,776,550		$ 4,342,874
Ceded loss and loss adjustment expense reserve	25,914,880	$ 21,025,809	25,914,880	$ 21,025,809	13,995,400	$ 13,650,287	$ 16,707,683	$ 15,090,175
Ceded unearned premium reserve			38,865,333		$ 35,442,177
Ceded loss adjustment expenses	2,206,998	1,691,602	3,032,506	2,647,656
Ceded earned premiums	$ 18,569,573	$ 14,346,738	$ 35,812,963	$ 27,493,194

COMMITMENTS AND CONTINGENCIES52

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]
2015 (6 months)	$ 84,774		$ 84,774
2,016	177,409		177,409
2,017	93,984		93,984
2,018	22,188		22,188
2,019	12,519		12,519
Total	390,874		390,874
Operating leases, rent expense	$ 45,401	$ 42,489	$ 87,827	$ 74,817

REGULATORY REQUIREMENTS AND R53

REGULATORY REQUIREMENTS AND RESTRICTIONS (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Regulatory Requirements and Restrictions [Abstract]
Restricted cash and investments	$ 3,302,463	$ 4,329,654
Texas [Member]
Regulatory Requirements and Restrictions [Abstract]
Minimum required capital stock	2,500,000
Minimum required surplus	2,500,000
Total statutory capital stock and surplus	13,834,346	12,317,735
Statutory capital stock	3,000,000	3,000,000
Statutory surplus	10,834,346	9,317,735
Restricted cash and investments	3,302,463	4,329,654
Dividends paid	$ 0	$ 0