Kingstone Companies (KINS) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 14, 2013
Document And Entity Information	'	'
Entity Registrant Name	'KINGSTONE COMPANIES, INC.	'
Entity Central Index Key	'0000033992	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	3,816,594
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets	'	'
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $1,524,516 at September 30, 2013 and $779,026 at December 31, 2012)	$1,448,798	$606,281
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $24,853,190 at September 30, 2013 and $24,847,097 at December 31, 2012)	25,351,423	26,181,938
Equity securities, available-for-sale, at fair value (cost of $6,675,666 at September 30, 2013 and $5,073,977 at December 31, 2012)	6,789,724	5,290,242
Total investments	33,589,945	32,078,461
Cash and cash equivalents	4,186,660	2,240,012
Premiums receivable, net of provision for uncollectible amounts	8,202,728	7,766,825
Reinsurance receivables, net of provision for uncollectible amounts	36,124,555	38,902,782
Deferred policy acquisition costs	6,616,166	5,569,878
Intangible assets, net	2,828,172	3,184,958
Property and equipment, net of accumulated depreciation	2,021,764	1,868,422
Other assets	973,270	1,887,060
Total assets	94,543,260	93,498,398
Liabilities	'	'
Loss and loss adjustment expenses	29,517,053	30,485,532
Unearned premiums	31,460,618	26,012,363
Advance premiums	1,045,624	610,872
Reinsurance balances payable	3,217,230	1,820,527
Advance payments from catastrophe reinsurers	'	7,358,391
Deferred ceding commission revenue	6,580,394	4,877,030
Notes payable (includes payable to related parties of $378,000 at September 30, 2013 and December 31, 2012)	957,000	1,197,000
Accounts payable, accrued expenses and other liabilities	3,212,356	3,067,586
Income taxes payable	659,433	'
Deferred income taxes	859,361	1,787,281
Total liabilities	77,509,069	77,216,582
Stockholders' Equity	'	'
Preferred stock, $.01 par value; authorized 2,500,000 shares at September 30, 2013 and 1,000,000 shares at December 31, 2013; -0- shares issued and outstanding	'	'
Common stock, $.01 par value; authorized 20,000,000 shares at September 30, 2013 and 10,000,000 shares at December 31, 2012; issued 4,731,031 shares at September 30, 2013 and 4,730,357 shares at December 31, 2012; outstanding 3,811,573 shares at September 30, 2013 and 3,840,899 shares at December 31, 2012	47,311	47,304
Capital in excess of par	13,891,326	13,851,036
Accumulated other comprehensive income	404,112	1,023,729
Retained earnings	4,248,887	2,787,292
Total	18,591,636	17,709,361
Treasury stock, at cost, 919,458 shares at September 30, 2013 and 889,458 shares at December 31, 2012	-1,557,445	-1,427,545
Total stockholders' equity	17,034,191	16,281,816
Total liabilities and stockholders' equity	$94,543,260	$93,498,398

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Condensed Consolidated Balance Sheets Parenthetical	'	'
Fixed-maturity securities, held to maturity, fair value	$1,524,516	$779,026
Fixed-maturity securities, available for sale, amortized cost	24,853,190	24,847,097
Equity securities, available-for-sale, cost	6,675,666	5,073,977
Notes payable includes payable to related parties	$378,000	$378,000
Stockholders' Equity	'	'
Common stock, par value	$0.01	$0.01
Common stock, authorized shares	20,000,000	10,000,000
Common stock, issued shares	4,731,031	4,730,357
Common stock, outstanding shares	3,811,573	3,840,899
Preferred stock, par value	$0.01	$0.01
Preferred stock, authorized shares	2,500,000	1,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Treasury stock, Shares	919,458	889,458

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues	'	'	'	'
Net premiums earned	$6,125,584	$4,416,506	$15,425,081	$12,553,613
Ceding commission revenue	3,611,544	2,711,431	8,239,686	8,525,945
Net investment income	294,348	242,159	852,666	739,555
Net realized gain on investments	94,456	65,986	449,474	111,546
Other income	213,205	218,723	671,020	680,469
Total revenues	10,339,137	7,654,805	25,637,927	22,611,128
Expenses	'	'	'	'
Loss and loss adjustment expenses	2,439,132	2,691,402	8,150,570	7,378,421
Commission expense	2,563,055	1,952,583	6,757,959	5,430,000
Other underwriting expenses	2,611,736	2,004,331	6,756,692	5,856,653
Other operating expenses	279,214	226,505	750,357	800,834
Depreciation and amortization	165,524	150,351	472,495	447,372
Interest expense	19,188	19,781	58,293	60,677
Total expenses	8,077,849	7,044,953	22,946,366	19,973,957
Income from operations before taxes	2,261,288	609,852	2,691,561	2,637,171
Income tax expense	599,064	162,021	770,228	863,606
Net income	1,662,224	447,831	1,921,333	1,773,565
Gross unrealized investment holding (losses) gains arising during period	-123,848	533,877	-938,712	1,275,632
Income tax benefit (expense) related to items of other comprehensive income	42,041	-181,518	319,095	-433,715
Comprehensive income	$1,580,417	$800,190	$1,301,716	$2,615,482
Earnings per common share:	'	'	'	'
Basic	$0.44	$0.12	$0.50	$0.47
Diluted	$0.43	$0.11	$0.49	$0.47
Weighted average common shares outstanding	'	'	'	'
Basic	3,811,243	3,824,461	3,826,510	3,794,979
Diluted	3,887,840	3,936,167	3,903,427	3,884,172
Dividends declared and paid per common share	$0.04	$0.04	$0.12	$0.10

Consolidated_Statement_of_Stoc

Consolidated Statement of Stockholders' Equity (unaudited) (USD $)	Preferred Stock	Common Stock	Capital in Excess of Par	Accumulated Other Comprehensive Income	Retained Earnings	Treasury Stock	Total
Beginning Balance, Amount at Dec. 31, 2012	'	$47,304	$13,851,036	$1,023,729	$2,787,292	($1,427,545)	$16,281,816
Beginning Balance, Shares at Dec. 31, 2012	'	4,730,357	'	'	'	889,458	'
Stock-based compensation	'	'	40,297	'	'	'	40,297
Exercise of stock options, Amount	'	7	-7	'	'	'	'
Exercise of stock options, Shares	'	674	'	'	'	'	'
Acquisition of treasury stock, Amount	'	'	'	'	'	-129,900	-129,900
Acquisition of treasury stock, Shares	'	'	'	'	'	30,000	'
Dividends	'	'	'	'	-459,738	'	-459,738
Net income	'	'	'	'	1,921,333	'	1,921,333
Change in unrealized gains on available for sale securities, net of tax	'	'	'	-619,617	'	'	-619,617
Ending Balance, Amount at Sep. 30, 2013	'	$47,311	$13,891,326	$404,112	$4,248,887	($1,557,445)	$17,034,191
Ending Balance, Shares at Sep. 30, 2013	'	4,731,031	'	'	'	919,458	'

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows (used in) provided by operating activities:	'	'
Net income	$1,921,333	$1,773,565
Adjustments to reconcile net income to net cash provided by operations:	'	'
Net realized gain on sale of investments	-449,474	-111,545
Depreciation and amortization	472,495	447,372
Amortization of bond premium, net	135,352	88,127
Stock-based compensation	40,297	39,125
Excess tax benefit from exercise of stock options	'	-118,070
Deferred income tax expense	-608,825	-152,795
(Increase) decrease in operating assets:	'	'
Premiums receivable, net	-435,903	-1,074,941
Receivables - reinsurance contracts	'	-933,588
Reinsurance receivables, net	2,778,227	-3,301,475
Deferred acquisition costs	-1,046,288	-861,874
Other assets	907,483	-446,020
(Decrease) increase in operating liabilities:	'	'
Loss and loss adjustment expenses	-968,479	3,802,428
Unearned premiums	5,448,255	4,026,336
Advance premiums	434,752	-47,518
Reinsurance balances payable	1,396,703	403,020
Advance payments from catastrophe reinsurers	-7,358,391	'
Deferred ceding commission revenue	1,703,364	679,873
Accounts payable, accrued expenses and other liabilities	804,203	-1,258,932
Net cash flows provided by operating activities	5,175,104	2,953,088
Cash flows used in investing activities:	'	'
Purchase - fixed-maturity securities held-to-maturity	-842,317	'
Purchase - fixed-maturity securities available for sale	-5,253,804	-2,264,507
Purchase - equity securities	-5,081,161	-1,873,253
Sale or maturity - fixed-maturity securities available for sale	5,274,520	2,766,758
Sale - equity securities	3,747,729	1,001,247
Other investing activities	-243,785	-22,405
Net cash flows used in investing activities	-2,398,818	-392,160
Cash flows used in financing activities:	'	'
Proceeds from line of credit	310,000	465,000
Principal payments on line of credit	-550,000	-415,000
Proceeds from exercise of stock options	'	47,074
Withholding taxes paid on net exercise of stock options	'	-103,593
Excess tax benefit from exercise of stock options	'	118,070
Purchase of treasury stock	-129,900	-17,710
Dividends paid	-459,738	-380,046
Net cash flows used in financing activities	-829,638	-286,205
Increase in cash and cash equivalents	1,946,648	2,274,723
Cash and cash equivalents, beginning of period	2,240,012	173,126
Cash and cash equivalents, end of period	4,186,660	2,447,849
Supplemental disclosures of cash flow information:	'	'
Cash paid for income taxes	747,000	1,853,000
Cash paid for interest	$76,100	$78,122

1_Nature_of_Business_and_Basis

1. Nature of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
1. Nature of Business and Basis of Presentation	'
	Kingstone Companies, Inc. (referred to herein as "Kingstone" or the “Company”), through its subsidiary Kingstone Insurance Company (“KICO”), underwrites property and casualty insurance to small businesses and individuals exclusively through independent agents and brokers. KICO is a licensed insurance company in the State of New York. In February 2011, KICO’s application for an insurance license to write insurance in the Commonwealth of Pennsylvania was approved; however, KICO has only nominally commenced writing business in Pennsylvania. Kingstone, through its subsidiary, Payments, Inc., a licensed premium finance company in the State of New York, receives fees for placing contracts with a third party licensed premium finance company.
	The accompanying unaudited condensed consolidated financial statements included in this report have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Securities and Exchange Commission (“SEC”) Form 10-Q and Article 8-03 of SEC Regulation S-X. The principles for condensed interim financial information do not require the inclusion of all the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2012 and notes thereto included in the Company’s Annual Report on Form 10-K filed on April 1, 2013. The accompanying condensed consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with standards of the Public Company Accounting Oversight Board (United States) but, in the opinion of management, such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial position and results of operations. The results of operations for the nine months ended September 30, 2013 may not be indicative of the results that may be expected for the year ending December 31, 2013.

2_Accounting_Policies

2. Accounting Policies	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
2. Accounting Policies	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions, which include the reserves for losses and loss adjustment expenses, are subject to considerable estimation error due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of several years. In addition, estimates and assumptions associated with receivables under reinsurance contracts related to contingent ceding commission revenue require considerable judgment by management. On an on-going basis, management reevaluates its assumptions and the methods of calculating its estimates. Actual results may differ significantly from the estimates and assumptions used in preparing the consolidated financial statements.
	Principles of Consolidation
	The consolidated financial statements consist of Kingstone and its wholly-owned subsidiaries. Subsidiaries include KICO and its subsidiaries, CMIC Properties, Inc. and 15 Joys Lane, LLC, which together own the land and building from which KICO operates. All significant inter-company transactions have been eliminated in consolidation.
	Accounting Pronouncements
	In February 2013, Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income ("ASU 2013-02"). ASU 2013-02 supersedes and replaces the presentation requirements for the reclassifications out of accumulated other comprehensive income. None of the other requirements of previously issued ASUs related to comprehensive income are affected by ASU 2013-02. The Company adopted ASU 2013-02 on January 1, 2013 and the implementation of the standard did not have a material impact on the Company's results of operations, financial position or liquidity.
	The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

3_Investments

3. Investments	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
3. Investments	'
	Available-for-Sale Securities
	The amortized cost and fair value of investments in available-for-sale fixed-maturity securities and equity securities as of September 30, 2013 and December 31, 2012 are summarized as follows:
			30-Sep-13
																			Net
			Cost or				Gross			Gross Unrealized Losses									Unrealized
			Amortized				Unrealized			Less than 12			More than 12			Fair			Gains/
	Category		Cost				Gains			Months			Months			Value			(Losses)
			(unaudited)
	Fixed-Maturity Securities:
	Political subdivisions of States,
	Territories and Possessions		$	6,389,133			$	185,758		$	(73,124	)	$	(3,833	)	$	6,497,934		$	108,801
	Corporate and other bonds
	Industrial and miscellaneous			18,464,057				599,438			(207,697	)		(2,309	)		18,853,489			389,432
	Total fixed-maturity securities			24,853,190				785,196			(280,821	)		(6,142	)		25,351,423			498,233
	Equity Securities:
	Preferred stocks			2,917,202				2,378			(263,351	)		-			2,656,229			(260,973	)
	Common stocks			3,758,464				461,387			(86,356	)		-			4,133,495			375,031
	Total equity securities			6,675,666				463,765			(349,707	)		-			6,789,724			114,058
	Total		$	31,528,856			$	1,248,961		$	(630,528	)	$	(6,142	)	$	32,141,147		$	612,291
			31-Dec-12
																			Net
			Cost or				Gross			Gross Unrealized Losses									Unrealized
			Amortized				Unrealized			Less than 12			More than 12			Fair			Gains/
	Category		Cost				Gains			Months			Months			Value			(Losses)
	Fixed-Maturity Securities:
	Political subdivisions of States,
	Territories and Possessions		$	5,219,092			$	257,298		$	(1,574	)	$	-		$	5,474,816		$	255,724
	Corporate and other bonds
	Industrial and miscellaneous			19,628,005				1,123,392			(43,553	)		(722	)		20,707,122			1,079,117
	Total fixed-maturity securities			24,847,097				1,380,690			(45,127	)		(722	)		26,181,938			1,334,841
	Equity Securities:
	Preferred stocks			1,475,965				19,512			(11,130	)		-			1,484,347			8,382
	Common stocks			3,598,012				353,782			(145,899	)		-			3,805,895			207,883
	Total equity securities			5,073,977				373,294			(157,029	)		-			5,290,242			216,265
	Total		$	29,921,074			$	1,753,984		$	(202,156	)	$	(722	)	$	31,472,180		$	1,551,106
	A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of September 30, 2013 and December 31, 2012 is shown below:
			30-Sep-13							31-Dec-12
			Amortized							Amortized
	Remaining Time to Maturity		Cost				Fair Value			Cost			Fair Value
			(unaudited)
	Less than one year		$	1,012,528			$	1,027,959		$	546,952		$	560,162
	One to five years			8,510,310				8,936,702			9,031,248			9,569,943
	Five to ten years			11,577,308				11,714,251			12,605,798			13,306,033
	More than 10 years			3,753,044				3,672,511			2,663,099			2,745,800
	Total		$	24,853,190			$	25,351,423		$	24,847,097		$	26,181,938
	The actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without penalties.
	Held-to-Maturity Securities
	The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of September 30, 2013 and December 31, 2012 are summarized as follows:
			30-Sep-13
																			Net
			Cost or				Gross			Gross Unrealized Losses									Unrealized
			Amortized				Unrealized			Less than 12			More than 12			Fair			Gains/
	Category		Cost				Gains			Months			Months			Value			(Losses)
			(unaudited)
	U.S. Treasury securities		$	606,310			$	69,719		$	-		$	-		$	676,029		$	69,719
	Political subdivisions of States,
	Territories and Possessions			207,665				-			(2,935	)		-			204,730			-2,935
	Corporate and other bonds
	Industrial and miscellaneous			634,823				8,934			-			-			643,757			8,934
	Total		$	1,448,798			$	78,653		$	(2,935	)	$	-		$	1,524,516		$	75,718
		31-Dec-12
							Net
		Cost or	Gross	Gross Unrealized Losses			Unrealized
	Amortized	Unrealized	Less than 12	More than 12	Fair	Gains/
Category	Cost	Gains	Months	Months	Value	(Losses)
U.S. Treasury securities	$        606,281	$         172,745	$                     -	$                     -	$      779,026	$         172,745
U.S. Treasury securities included in held-to-maturity securities are held in trust pursuant to the New York State Department of Financial Services’ minimum funds requirement.
A summary of the amortized cost and fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of September 30, 2013 and December 31, 2012 is shown below:
		30-Sep-13							31-Dec-12
		Amortized							Amortized
Remaining Time to Maturity		Cost				Fair Value			Cost			Fair Value
		(unaudited)
Less than one year		$	-			$	-		$	-		$	-
One to five years			-				-			-			-
Five to ten years			842,488				848,487			-			-
More than 10 years			606,310				676,029			606,281			779,026
Total		$	1,448,798			$	1,524,516		$	606,281		$	779,026
Investment Income
Major categories of the Company’s net investment income are summarized as follows:
		Three months ended							Nine months ended
		September 30,							September 30,
		2013				2012			2013			2012
		(unaudited)							(unaudited)
Income:
Fixed-maturity securities		$	241,286			$	249,315		$	736,298		$	710,585
Equity securities			117,916				49,279			297,760			197,518
Cash and cash equivalents			1				25			30			84
Other			(1,066	)			2			10,751			6
Total			358,137				298,621			1,044,839			908,193
Expenses:
Investment expenses			63,789				56,462			192,173			168,638
Net investment income		$	294,348			$	242,159		$	852,666		$	739,555
Proceeds from the sale and maturity of fixed-maturity securities were $5,274,520 and $2,766,758 for the nine months ended September 30, 2013 and 2012, respectively.
Proceeds from the sale of equity securities were $3,747,729 and $1,001,247 for the nine months ended September 30, 2013 and 2012, respectively.
The Company’s net realized gains and losses on investments are summarized as follows:
		Three months ended							Nine months ended
		September 30,							September 30,
		2013				2012			2013			2012
		(unaudited)							(unaudited)
Fixed-maturity securities:
Gross realized gains		$	56,669			$	60,349		$	237,886		$	153,695
Gross realized losses			-				-			(56,471	)		(52,600	)
			56,669				60,349			181,415			101,095
Equity securities:
Gross realized gains			79,593				7,735			369,582			40,019
Gross realized losses			(41,806	)			(2,098	)		(101,523	)		(29,568	)
			37,787				5,637			268,059			10,451
Net realized gains		$	94,456			$	65,986		$	449,474		$	111,546
Impairment Review
Impairment of investment securities results in a charge to operations when a market decline below cost is deemed to be other-than-temporary. The Company regularly reviews its fixed-maturity securities and equity securities portfolios to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of investments. In evaluating potential impairment, management considers, among other criteria: (i) the current fair value compared to amortized cost or cost, as appropriate; (ii) the length of time the security’s fair value has been below amortized cost or cost; (iii) specific credit issues related to the issuer such as changes in credit rating, reduction or elimination of dividends or non-payment of scheduled interest payments; (iv) management’s intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in value to cost; and (v) current economic conditions. Other-than-temporary impairment (“OTTI”) losses result in a permanent reduction of the cost basis of the underlying investment.
OTTI losses are recorded in the condensed consolidated statements of  Income and comprehensive income as net realized losses on investments and result in a permanent reduction of the cost basis of the underlying investment. The determination of OTTI is a subjective process and different judgments and assumptions could affect the timing of loss realization. At September 30, 2013, there were 42 securities that account for the gross unrealized loss. The Company determined that none of the unrealized losses were deemed to be OTTI for its portfolio of fixed maturity investments and equity securities for the nine months ended September 30, 2013 and 2012. Significant factors influencing the Company’s determination that unrealized losses were temporary included the magnitude of the unrealized losses in relation to each security’s cost, the nature of the investment and management’s intent and ability to retain the investment for a period of time sufficient to allow for an anticipated recovery of fair value to the Company’s cost basis.
The Company held securities with unrealized losses representing declines that were considered temporary at September 30, 2013 and December 31, 2012 as follows:
		30-Sep-13
		Less than 12 months										12 months or more									Total
									No. of									No. of			Aggregate
		Fair				Unrealized			Positions			Fair			Unrealized			Positions			Fair		Unrealized
Category		Value				Losses			Held			Value			Losses			Held			Value		Losses
		(unaudited)
Fixed-Maturity Securities:
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies		$	-			$	-			-		$	-		$	-			-		$	-	$	-
Political subdivisions of
States, Territories and
Possessions			1,372,233				(73,124	)		5			36,263			(3,833	)		1			1,408,496		(76,957	)
Corporate and other
bonds industrial and
miscellaneous			4,771,560				(207,697	)		17			302,423			(2,309	)		1			5,073,983		(210,006	)
Total fixed-maturity
securities		$	6,143,793			$	(280,821	)		22		$	338,686		$	(6,142	)		2		$	6,482,479	$	(286,963	)
Equity Securities:
Preferred stocks		$	2,345,104			$	(263,351	)		10		$	-		$	-			-		$	2,345,104	$	(263,351	)
Common stocks			1,503,495				(86,356	)		8			-			-			-			1,503,495		(86,356	)
Total equity securities		$	3,848,599			$	(349,707	)		18		$	-		$	-			-		$	3,848,599	$	(349,707	)
Total		$	9,992,392			$	(630,528	)		40		$	338,686		$	(6,142	)		2		$	10,331,078	$	(636,670	)
		31-Dec-12
		Less than 12 months										12 months or more									Total
									No. of									No. of			Aggregate
		Fair				Unrealized			Positions			Fair			Unrealized			Positions			Fair		Unrealized
Category		Value				Losses			Held			Value			Losses			Held			Value		Losses
Fixed-Maturity Securities:
Political subdivisions of
States, Territories and
Possessions		$	202,798			$	(1,574	)		1		$	-		$	-			-		$	202,798	$	(1,574	)
Corporate and other
bonds industrial and
miscellaneous			4,025,551				(43,553	)		19			128,125			(722	)		1			4,153,676		(44,275	)
Total fixed-maturity
securities		$	4,228,349			$	(45,127	)		20		$	128,125		$	(722	)		1		$	4,356,474	$	(45,849	)
Equity Securities:
Preferred stocks		$	387,925			$	(11,130	)		3		$	-		$	-			-		$	387,925	$	(11,130	)
Common stocks			1,536,860				(145,899	)		9			-			-			-			1,536,860		(145,899	)
Total equity securities		$	1,924,785			$	(157,029	)		12		$	-		$	-			-		$	1,924,785	$	(157,029	)
Total		$	6,153,134			$	(202,156	)		32		$	128,125		$	(722	)		1		$	6,281,259	$	(202,878	)

4_Fair_Value_Measurements

4. Fair Value Measurements	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
4. Fair Value Measurements	'
	The Company follows GAAP guidance regarding fair value measurements. The valuation technique used to fair value the financial instruments is the market approach, which uses prices and other relevant information generated by market transactions involving identical or comparable assets.
	This guidance establishes a three-level hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets or liabilities fall within different levels of the hierarchy, the classification is based on the lowest level input that is significant to the fair value measurement of the asset or liability. Classification of assets and liabilities within the hierarchy considers the markets in which the assets and liabilities are traded, including during period of market disruption, and the reliability and transparency of the assumptions used to determine fair value. The hierarchy requires the use of observable market data when available. The levels of the hierarchy and those investments included in each are as follows:
	Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities traded in active markets. Included are those investments traded on an active exchange, such as the NASDAQ Global Select Market, U.S. Treasury securities and obligations of U.S. government agencies, together with corporate debt securities that are generally investment grade.
	Level 2—Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Municipal and corporate bonds that are traded in less active markets are classified as Level 2. These securities are valued using market price quotations for recently executed transactions.
	Level 3—Inputs to the valuation methodology are unobservable for the asset or liability and are significant to the fair value measurement. Material assumptions and factors considered in pricing investment securities and other assets may include appraisals, projected cash flows, market clearing activity or liquidity circumstances in the security or similar securities that may have occurred since the prior pricing period.
	The availability of observable inputs varies and is affected by a wide variety of factors. When the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. The degree of judgment exercised by management in determining fair value is greatest for investments categorized as Level 3. For investments in this category, the Company considers prices and inputs that are current as of the measurement date. In periods of market dislocation, as characterized by current market conditions, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause a security to be reclassified between levels.
	The Company’s investments are allocated among pricing input levels at September 30, 2013 and December 31, 2012 as follows:
		30-Sep-13
	($ in thousands)	Level 1		Level 2		Level 3		Total
		(unaudited)
	Fixed-maturity securities
	U.S. Treasury securities
	and obligations of U.S.
	government corporations
	and agencies	$	-	$	-	$	-	$	-
	Political subdivisions of
	States, Territories and
	Possessions		-		6,498		-		6,498
	Corporate and other
	bonds industrial and
	miscellaneous		11,067		7,786		-		18,853
	Total fixed maturities		11,067		14,284		-		25,351
	Equity securities		6,790		-		-		6,790
	Total investments	$	17,857	$	14,284	$	-	$	32,141
		31-Dec-12
	($ in thousands)	Level 1		Level 2		Level 3		Total
	Fixed-maturity securities
	U.S. Treasury securities
	and obligations of U.S.
	government corporations
	and agencies	$	-	$	-	$	-	$	-
	Political subdivisions of
	States, Territories and
	Possessions		-		5,475		-		5,475
	Corporate and other
	bonds industrial and
	miscellaneous		11,600		9,107		-		20,707
	Total fixed maturities		11,600		14,582		-		26,182
	Equity securities		5,290		-		-		5,290
	Total investments	$	16,890	$	14,582	$	-	$	31,472

5_Fair_Value_of_Financial_Inst

5. Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
5. Fair Value of Financial Instruments	'
	GAAP requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the balance sheet, for which it is practicable to estimate fair value. The Company uses the following methods and assumptions in estimating its fair value disclosures for financial instruments:
	Equity securities and fixed income securities available-for-sale: Fair value disclosures for these investments are included in “Note 3 - Investments.”
	Cash and cash equivalents: The carrying values of cash and cash equivalents approximate their fair values because of the short-term nature of these instruments.
	Premiums receivable, reinsurance receivables: The carrying values reported in the accompanying condensed consolidated balance sheets for these financial instruments approximate their fair values due to the short term nature of the assets.
	Real Estate: The fair value of the land and building included in property and equipment, which is used in the Company’s operations, approximates the carrying value. The fair value was based on an appraisal prepared using the sales comparison approach, and accordingly the real estate is a Level 3 asset under the fair value hierarchy.
	Reinsurance balances payable: The carrying value reported in the condensed consolidated balance sheets for these financial instruments approximates fair value.
	Notes payable (including related parties): The Company estimates that the carrying amount of notes payable approximates fair value because of the recently negotiated interest rates based on term of the loan, risk and guaranty.
	The estimated fair values of the Company’s financial instruments are as follows:
		30-Sep-13				31-Dec-12
		Carrying Value		Fair Value		Carrying Value		Fair Value
		(unaudited)
	Fixed-maturity investments held to maturity	$	1,448,798	$	1,524,516	$	606,281	$	779,026
	Cash and cash equivalents		4,186,660		4,186,660		2,240,012		2,240,012
	Premiums receivable		8,202,728		8,202,728		7,766,825		7,766,825
	Reinsurance receivables		36,124,555		36,124,555		38,902,782		38,902,782
	Real estate, net of accumulated depreciation		1,789,737		1,816,122		1,696,924		1,720,000
	Reinsurance balances payable		3,217,230		3,217,230		1,820,527		1,820,527
	Advance payments from catastrophe reinsurers		-		-		7,358,391		7,358,391
	Notes payable (including related parties)		957,000		957,000		1,197,000		1,197,000

6_Property_and_Casualty_Insura

6. Property and Casualty Insurance Activity	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
6. Property and Casualty Insurance Activity	'
	Earned Premiums
	Premiums written, ceded and earned are as follows:
		Direct			Assumed			Ceded			Net
	Nine months ended September 30, 2013 (unaudited)
	Premiums written	$	44,651,570		$	36,999		$	(26,567,984	)	$	18,120,585
	Change in unearned premiums		(5,465,632	)		17,377			2,752,751			(2,695,504	)
	Premiums earned	$	39,185,938		$	54,376		$	(23,815,233	)	$	15,425,081
	Nine months ended September 30, 2012 (unaudited)
	Premiums written	$	36,439,884		$	21,553		$	(21,699,102	)	$	14,762,335
	Change in unearned premiums		(4,017,217	)		(9,119	)		1,817,614			(2,208,722	)
	Premiums earned	$	32,422,667		$	12,434		$	(19,881,488	)	$	12,553,613
	Three months ended September 30, 2013 (unaudited)
	Premiums written	$	15,925,613		$	16,952		$	(8,786,730	)	$	7,155,835
	Change in unearned premiums		(2,013,499	)		(11,192	)		994,440			(1,030,251	)
	Premiums earned	$	13,912,114		$	5,760		$	(7,792,290	)	$	6,125,584
	Three months ended September 30, 2012 (unaudited)
	Premiums written	$	12,765,358		$	18,354		$	(7,218,500	)	$	5,565,212
	Change in unearned premiums		(1,363,818	)		(13,031	)		228,143			(1,148,706	)
	Premiums earned	$	11,401,540		$	5,323		$	(6,990,357	)	$	4,416,506
	Premium receipts in advance of the policy effective date are recorded as advance premiums. The balance of advance premiums as of September 30, 2013 (unaudited) and December 31, 2012 was approximately $1,000,000 and $611,000, respectively.
	Loss and Loss Adjustment Expenses
	The following table provides a reconciliation of the beginning and ending balances for unpaid losses and loss adjustment expenses (“LAE”):
		Nine months ended
		September 30,
		2013			2012
		(unaudited)
	Balance at beginning of period	$	30,485,532		$	18,480,717
	Less reinsurance recoverables		(18,419,694	)		(10,001,060	)
	Net balance, beginning of period		12,065,838			8,479,657
	Incurred related to:
	Current year		7,467,756			6,554,087
	Prior years		682,814			824,334
	Total incurred		8,150,570			7,378,421
	Paid related to:
	Current year		2,458,940			2,572,948
	Prior years		3,498,333			2,681,698
	Total paid		5,957,273			5,254,646
	Net balance at end of period		14,259,135			10,603,432
	Add reinsurance recoverables		15,257,918			11,679,713
	Balance at end of period	$	29,517,053		$	22,283,145
	Incurred losses and LAE are net of reinsurance recoveries under reinsurance contracts of $12,170,056 and $6,917,332 for the nine months ended September 30, 2013 and 2012, respectively.
	Prior year incurred loss and LAE development is based upon numerous estimates by line of business and accident year. The Company’s management continually monitors claims activity to assess the appropriateness of carried case and IBNR reserves, giving consideration to Company and industry trends.
	Loss and loss adjustment expense reserves
	The reserving process for loss adjustment expense reserves provides for the Company’s best estimate at a particular point in time of the ultimate unpaid cost of all losses and loss adjustment expenses incurred, including settlement and administration of losses, and is based on facts and circumstances then known and including losses that have been incurred but not yet been reported. The process includes using actuarial methodologies to assist in establishing these estimates, judgments relative to estimates of future claims severity and frequency, the length of time before losses will develop to their ultimate level and the possible changes in the law and other external factors that are often beyond the Company’s control. The loss ratio projection method is used to estimate loss reserves. The process produces carried reserves set by management based upon the actuaries’ best estimate and is the result of numerous best estimates made by line of business, accident year, and loss and loss adjustment expense. The amount of loss and loss adjustment expense reserves for reported claims is based primarily upon a case-by-case evaluation of coverage, liability, injury severity, and any other information considered pertinent to estimating the exposure presented by the claim. The amounts of loss and loss adjustment expense reserves for unreported claims are determined using historical information by line of insurance as adjusted to current conditions. Since this process produces loss reserves set by management based upon the actuaries’ best estimate, there is no explicit or implicit provision for uncertainty in the carried loss reserves.
	Due to the inherent uncertainty associated with the reserving process, the ultimate liability may differ, perhaps substantially, from the original estimate. Such estimates are regularly reviewed and updated and any resulting adjustments are included in the current year’s results. Reserves are closely monitored and are recomputed periodically using the most recent information on reported claims and a variety of statistical techniques. Specifically, on at least a quarterly basis, the Company reviews, by line of business, existing reserves, new claims, changes to existing case reserves and paid losses with respect to the current and prior years.
	Reinsurance
	The Company’s reinsurance treaties for both its Personal Lines business, which primarily consists of homeowners’ policies, and Commercial Lines business were renewed effective July 1, 2013. The treaties are annual, except for personal lines described below, and provide for the following material terms as of July 1, 2013:
	Personal Lines
	The personal lines treaty was renewed with a two year term expiring on June 30, 2015. Personal lines business, which includes homeowners, dwelling fire and canine legal liability insurance, is reinsured under a 75% quota share treaty, which provides coverage with respect to losses of up to $1,200,000 per occurrence. An excess of loss contract provides 100% of coverage for the next $1,700,000 of losses for a total reinsurance coverage of $2,600,000 with respect to losses of up to $2,900,000 per occurrence. Effective as of July 1, 2014, the Company has the option to increase the quota share percentage to a maximum of 85% or decrease the quota share percentage to a minimum of 55% by giving no less than 30 days advance notice. See “Catastrophe Reinsurance” below for a discussion of the Company’s reinsurance coverage with respect to its Personal Lines business in the event of a catastrophe.
	Personal umbrella policies are reinsured under a 90% quota share treaty limiting the Company to a maximum of $100,000 per occurrence for the first $1,000,000 of coverage. The second $1,000,000 of coverage is 100% reinsured.
	Commercial Lines
	General liability commercial policies written by the Company, except for commercial auto policies, are reinsured under a 25% quota share treaty, which provides coverage with respect to losses of up to $400,000 per occurrence. Excess of loss contracts provide 100% of coverage for the next $2,500,000 of losses for a total reinsurance coverage of $2,600,000 with respect to losses of up to $2,900,000 per occurrence.
	Commercial Auto
	Commercial auto policies are covered by an excess of loss reinsurance contract, which provides $1,700,000 of coverage in excess of $300,000.
	Catastrophe Reinsurance
	The Company has catastrophe reinsurance coverage with regard to losses of up to $90,000,000.  The initial $4,000,000 of losses in a catastrophe are subject to a 75% quota share treaty, such that the Company retains $1,000,000 per catastrophe occurrence With respect to any additional catastrophe losses of up to $86,000,000 per catastrophe, the Company is 100% reinsured under its catastrophe reinsurance program. Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.
	The reinsurance treaties, which were in effect as of June 30, 2013, provided for the following material terms:
	Personal Lines
	Personal Lines business, which includes homeowners, dwelling fire and canine legal liability insurance, was reinsured under a 75% quota share treaty which provided coverage with respect to losses of up to $1,000,000 per occurrence. An excess of loss contract provided 100% of coverage for the next $1,900,000 of losses for a total reinsurance coverage of $2,650,000 with respect to losses of up to $2,900,000 per occurrence. See “Catastrophe Reinsurance” below for a discussion of the Company’s reinsurance coverage with respect to its Personal Lines business in the event of a catastrophe.
	Personal umbrella policies were reinsured under a 90% quota share treaty limiting the Company to a maximum of $100,000 per occurrence for the first $1,000,000 of coverage. The second $1,000,000 of coverage was 100% reinsured.
	Commercial Lines
	General liability commercial policies written by the Company, except for commercial auto policies, were reinsured under a 40% quota share treaty, which provided coverage with respect to losses of up to $500,000 per occurrence. Excess of loss contracts provided 100% of coverage for the next $2,400,000 of losses for a total reinsurance coverage of $2,600,000 with respect to losses of up to $2,900,000 per occurrence.
	Commercial Auto
Commercial auto policies were covered by an excess of loss reinsurance contract, which provided $1,750,000 of coverage in excess of $250,000.
Catastrophe Reinsurance
The Company had catastrophe reinsurance coverage with regard to losses of up to $73,000,000. The initial $3,000,000 of losses in a catastrophe were subject to a 75% quota share treaty, such that the Company retained $750,000 per catastrophe occurrence With respect to any additional catastrophe losses of up to $70,000,000, the Company was 100% reinsured under its catastrophe reinsurance program.
The Company’s reinsurance program is structured to enable the Company to significantly grow its premium volume while maintaining regulatory capital and other financial ratios generally within or below the expected ranges used for regulatory oversight purposes. The reinsurance program also provides income as a result of ceding commissions earned pursuant to the quota share reinsurance contracts. The Company’s participation in reinsurance arrangements does not relieve the Company from its obligations to policyholders.
The renewals of the Company’s reinsurance programs on July 1, 2013 and 2012 resulted in adjustments to ceded written premiums, net written premiums and provisional ceding commissions earned.  These adjustments were the result of the annual renewals and are not recurring on a quarterly basis:
Personal Lines Quota Share
On July 1, 2013, the Company’s provisional ceding commissions rate increased from 35% to 40%, and, as a result, the reinsurers were obligated to pay to the Company 5% of the ceded unearned premiums as of June 30, 2013. The additional provisional ceding commissions received will increase provisional ceding commission revenue as they are earned.
Commercial Lines Quota Share
On July 1, 2013, the change from a 40% quota share to a 25% quota share resulted in a decrease to ceded written premiums, as the quota share carriers were obligated to return to the Company 37.50% of the previously ceded unearned premiums.  On July 1, 2012, the change from a 60% quota share to a 40% quota share resulted in a decrease to ceded written premiums, as the quota share carriers were obligated to return to the Company 33.33% of the previously ceded unearned premiums.  The returned unearned premiums are then earned over the remaining life of the policies to which they relate.  On July 1, 2013 and 2012, along with the increase to net written premiums and net earned premiums, the Company was obligated to return to the reinsurers 37.50% and 33.33%, respectively, of the unearned provisional ceding commission previously received, which will reduce future ceding commission revenues as they are earned.
The Company received advance payments from catastrophe reinsurers related to Superstorm Sandy. As of September 30, 2013 and December 31, 2012, the balance of advance payments from catastrophe reinsurers which will be applied against unpaid losses when paid was $-0- and $7,358,391, respectively, and are included in “Advance payments from catastrophe reinsurers” in the condensed consolidated balance sheets.
Ceding Commission Revenue
The Company earns ceding commission revenue under its quota share reinsurance agreements based on: (i) a fixed provisional commission rate at which provisional ceding commissions are earned, and (ii) a sliding scale of commission rates and ultimate treaty year loss ratios on the policies reinsured under each of these agreements based upon which contingent ceding commissions are earned. The sliding scale includes minimum and maximum commission rates in relation to specified ultimate loss ratios. The commission rate and contingent ceding commissions earned increases when the estimated ultimate loss ratio decreases and, conversely, the commission rate and contingent ceding commissions earned decreases when the estimated ultimate loss ratio increases.
As of September 30, 2013, the Company’s estimated ultimate loss ratios are attributable to contracts for the July 1, 2012/June 30, 2013 treaty year (“2012/2013 Treaty”) and the July 1, 2013/June 30, 2014 treaty year (“2013/2014 Treaty”). As of September 30, 2012, the Company’s estimated ultimate loss ratios are attributable to contracts for the July 1, 2011/June 30, 2012 treaty year (“2011/2012 Treaty”) and the 2012/2013 Treaty.
As of September 30, 2013, the Company’s estimated ultimate loss ratios attributable to the 2012/2013 Treaty are greater than the contractual ultimate loss ratios at which the provisional ceding commissions are earned. Accordingly, for the nine months ended September 30, 2013, the Company has recorded negative contingent ceding commissions earned with respect to the 2012/2013 Treaty.
As of September 30, 2013, the Company’s estimated ultimate loss ratios attributable to contracts for the 2013/2014 Treaty are lower than the contractual ultimate loss ratios at which the provisional ceding commissions are earned. Accordingly, for the three months ended September 30, 2013, the Company has recorded contingent ceding commissions earned with respect to the 2013/2014 Treaty.
As of September 30, 2012, the Company’s estimated ultimate loss ratios attributable to contracts for the 2012/2013 Treaty and 2011/2012 Treaty are lower than the contractual ultimate loss ratios at which the provisional ceding commissions are earned. Accordingly, for the nine months and three months ended September 30, 2012, the Company has recorded contingent ceding commissions earned with respect to the 2012/2013 Treaty and 2011/2012 Treaty.
Ceding commissions earned consists of the following:
	Three months ended September 30,						Nine months ended September 30,
	2013			2012			2013			2012
	(unaudited)						(unaudited)
Provisional ceding commissions earned	$	2,940,661		$	2,171,391		$	7,836,370		$	6,231,106
Contingent ceding commissions earned		670,883			540,040			403,316			2,294,839
	$	3,611,544		$	2,711,431		$	8,239,686		$	8,525,945
Provisional ceding commissions are settled monthly. Balances due from reinsurers for contingent ceding commissions on quota share treaties are settled annually based on the loss ratio of each treaty year that ends on June 30. As discussed above, through June 30, 2013, the culmination date of the 2012/2013 Treaty, the Company has recorded negative contingent ceding commissions earned with respect to the 2012/2013 Treaty, which results in ceding commissions payable to reinsurers. The Company has recorded contingent ceding commissions earned for the three months ended September 30, 2013with respect to the 2013/2014 Treaty. Net contingent ceding commissions payable to reinsurers as of September 30, 2013 and December 31, 2012 was $174,569 and $807,415, respectively, and is included in “Reinsurance balances payable” in the condensed consolidated balance sheets.

7_LongTerm_Debt

7. Long-Term Debt	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
7. Long-Term Debt	'
	Long-term debt consists of:
		30-Sep-13						31-Dec-12
				Less						Less
		Total		Current		Long-Term		Total		Current		Long-Term
		Debt		Maturities		Debt		Debt		Maturities		Debt
		(unaudited)
	Notes payable	$	747,000	$	747,000	$	-	$	747,000	$	-	$	747,000
	Bank line of credit		210,000		210,000		-		450,000		450,000		-
		$	957,000	$	957,000	$	-	$	1,197,000	$	450,000	$	747,000
	Notes Payable
	From June 2009 through March 2010, the Company borrowed $1,450,000 (including $785,000 from related parties as disclosed below) and issued promissory notes in such aggregate principal amount (the “2009/2010 Notes”).  The 2009/2010 Notes provided for interest at the rate of 12.625% per annum through the maturity date of July 10, 2011. During the quarter the ended June 30, 2011, the Company prepaid $703,000 (including $407,000 to related parties) of the principal amount of the 2009/2010 Notes. In June 2011, the remaining note holders agreed to extend the maturity date for a period of three years from July 10, 2011 to July 10, 2014, and, effective July 11, 2011, reduce the interest rate from 12.625% to 9.5% per annum. The remaining 2009/2010 Notes, as extended, can be prepaid without premium or penalty. The reduction in the interest rate and the extension of the maturity date did not significantly change the fair value of the 2009/2010 Notes.
	Interest expense on the 2009/2010 Notes for the nine months ended September 30, 2013 and 2012 was approximately $53,000. Interest expense on the 2009/2010 Notes for the three months ended September 30, 2013 and 2012 was approximately $18,000.
	Related party balances as of September 30, 2013 and December 31, 2012, under the 2009/2010 Notes are as follows:
	Barry Goldstein IRA (Mr. Goldstein is Chairman of the Board, President
	and Chief Executive Officer, and principal stockholder of the Company)	$	90,000
	Jay Haft, a director of the Company		30,000
	A member of the family of Michael Feinsod, a director of the Company		60,000
	Mr. Yedid and members of his family		156,000
	A member of the family of Floyd Tupper, a director of KICO		42,000
	Total related party transactions	$	378,000
	Interest expense on related party borrowings for each of the nine months ended September 30, 2013 and 2012 was approximately $27,000. Interest expense on related party borrowings for each of the three months ended September 30, 2013 and 2012 was approximately $9,000.
	Bank Line of Credit
	On December 27, 2011, Kingstone executed a Promissory Note pursuant to a line of credit (together, the “Trustco Agreement”) with Trustco Bank (“Lender”). Under the Trustco Agreement, Kingstone may receive advances from Lender not to exceed an unpaid principal balance of $500,000 (the “Credit Limit”). On January 25, 2013, the Credit Limit was increased to $600,000.  Advances extended under the Trustco Agreement will bear interest at a floating rate based on the Lender’s prime rate.
	Interest only payments are due monthly. The principal balance is payable on demand, and must be reduced to zero for a minimum of thirty consecutive days during each year of the term of the Trustco Agreement. Lender may set off any depository accounts maintained by Kingstone that are held by Lender. Payment of amounts due pursuant to the Trustco Agreement is secured by all of Kingstone’s cash and deposit accounts, receivables, inventory and  fixed assets, and is guaranteed by Kingstone’s subsidiary, Payments, Inc.
	The line of credit is being used for general corporate purposes.
	The weighted average interest rate on the amount outstanding as of September 30, 2013 was 3.75%. There are no other fees in connection with this credit line.

8_Stockholders_Equity

8. Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
8. Stockholders' Equity	'
	Preferred Stock
	On August 13, 2013, the Company’s stockholders approved an amendment to the Certificate of Incorporation of the Company to increase the number of authorized shares of Preferred Stock from 1,000,000 to 2,500,000.
	Common Stock
	On August 13, 2013, the Company’s stockholders approved an amendment to the Certificate of Incorporation of the Company to increase the number of authorized shares of Common Stock from 10,000,000 to 20,000,000.
	Proposed Public Offering
	On October 15 2013, the Company filed a registration statement on Form S-1 with the Securities and Exchange Commission relating to the proposed public offering by the Company of $15,000,000 of its Common Stock. In addition, the Company intends to grant the underwriter a 30-day option to purchase up to an additional 15% of the number of shares offered to cover over-allotments, if any.
	The Company intends to use the net proceeds of the offering (i) to contribute capital to its insurance subsidiary, KICO (subject to approval by New York State Department of Financial Services), to support growth, including possible product expansion; (ii) to repay indebtedness; and (iii) for general corporate purposes, which may include acquisitions.
	A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time that the registration statement becomes effective.
	Dividend Declared
	Dividends declared and paid on Common Stock were $459,738 and $380,046 for the nine months ended September 30, 2013 and 2012, respectively. Dividends declared and paid on Common Stock were $152,464 and $153,218 for the three months ended September 30, 2013 and 2012, respectively. The Company’s Board of Directors approved a quarterly dividend on November 12, 2013 of $.04 per share payable in cash on December 13, 2013 to stockholders of record as of November 29, 2013.
	Stock Options
	Pursuant to the Company’s 2005 Equity Participation Plan (the “2005 Plan”), which provides for the issuance of incentive stock options, non-statutory stock options and restricted stock, a maximum of 550,000 shares of Common Stock were permitted to be issued pursuant to options granted and restricted stock issued.  On August 13, 2013, the Company’s stockholders approved an increase in the number of shares authorized to be issued pursuant to the 2005 Plan from 550,000 to 700,000. Incentive stock options granted under the 2005 Plan expire no later than ten years from date of grant (except no later than five years for a grant to a 10% stockholder). The Board of Directors or the Stock Option Committee determines the expiration date with respect to non-statutory options, and the vesting provisions for restricted stock, granted under the 2005 Plan.
	The results of operations for the nine months ended September 30, 2013 and 2012 include stock-based stock option compensation expense totaling approximately $40,000 and $39,000, respectively. The results of operations for the three months ended September 30, 2013 and 2012 include stock-based stock option compensation expense totaling approximately $27,000 and $9,000, respectively. Stock-based compensation expense related to stock options is net of estimated forfeitures of 21% for the nine months and three months ended September 30, 2013 and 2012. Such amounts have been included in the condensed consolidated statements of income and comprehensive income within other operating expenses.
	Stock-based compensation expense in 2013 and 2012 is the estimated fair value of options granted amortized on a straight-line basis over the requisite service period for the entire portion of the award. The weighted average estimated fair value of stock options granted during the nine months ended September 30, 2013 was $1.38 per share. No stock options were granted during the nine months ended September 30, 2012. The fair value of options at the grant date was estimated using the Black-Scholes option-pricing method. The following weighted average assumptions were used for grants during the nine months ended September 30, 2013:
	Dividend Yield		3.14	%
	Volatility		46.71	%
	Risk-Free Interest Rate		0.79	%
	Expected Life	3.25 years
	The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because our stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our stock options.
	A summary of option activity under the Company’s 2005 Plan for the nine months ended September 30, 2013 is as follows:
	Stock Options	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
	Outstanding at January 1, 2013		235,115		$	2.58		2.24	$	539,485
	Granted		67,500		$	5.09		-	$	12,150
	Exercised		(1,250	)	$	2.37		-	$	(2,963	)
	Forfeited		-		$	-		-	$	-
	Outstanding at September 30, 2013		301,365		$	3.14		2.26	$	642,056
	Vested and Exercisable at September 30, 2013		240,740		$	2.66		1.63	$	628,344
	The aggregate intrinsic value of options outstanding and options exercisable at September 30, 2013 is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s Common Stock for the options that had exercise prices that were lower than the $5.27 closing price of the Company’s Common Stock on September 30, 2013.
	Participants in the 2005 Plan may exercise their outstanding vested options, in whole or in part, by having the Company reduce the number of shares otherwise issuable by a number of shares having a fair market value equal to the exercise price of the option being exercised (“Net Exercise”). A total of 135,000 options were exercised during the nine months ended September 30, 2012.
	As of September 30, 2013, the fair value of unamortized compensation cost related to unvested stock option awards was approximately $60,000. Unamortized compensation cost as of September 30, 2013 is expected to be recognized over a remaining weighted-average vesting period of 1.56 years.

9_Income_Taxes

9. Income Taxes	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
9. Income Taxes	'
	Income taxes for the nine months ended September 30, 2013 and 2012 were computed using the effective tax rate estimated to be applicable for the full year, which is subject to ongoing review and evaluation by management. The Company files a consolidated U.S. federal income tax return that includes all wholly-owned subsidiaries. State tax returns are filed on a consolidated or separate basis depending on applicable laws. The Company records adjustments related to prior years’ taxes during the period when they are identified, generally when the tax returns are filed. The effect of these adjustments on the current and prior periods (during which the differences originated) is evaluated based upon quantitative and qualitative factors and are considered in relation to the financial statements taken as a whole for the respective periods. The Company has evaluated this year’s amounts in relation to the current and prior reporting periods and determined that a restatement of those prior reporting periods is not appropriate. The Company’s effective tax rate from operations for the nine months ended September 30, 2013 and 2012 was 28.6% and 32.7%, respectively.
	Deferred tax assets and liabilities are determined using the enacted tax rates applicable to the period the temporary differences are expected to be recovered. Accordingly, the current period income tax provision can be affected by the enactment of new tax rates. The net deferred income taxes on the balance sheet reflect temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and income tax purposes, tax effected at a various rates depending on whether the temporary differences are subject to federal taxes, state taxes, or both. Significant components of the Company’s deferred tax assets and liabilities are as follows:
		September 30,			December 31,
		2013			2012
		(unaudited)
	Deferred tax asset:
	Net operating loss carryovers (1)	$	260,121		$	264,648
	Claims reserve discount		370,539			313,544
	Unearned premium		1,024,271			811,413
	Deferred ceding commission revenue		2,237,332			1,658,190
	Other		8,344			10,921
	Total deferred tax assets		3,900,607			3,058,716
	Deferred tax liability:
	Investment in KICO (2)		1,169,000			1,169,000
	Deferred acquisition costs		2,249,496			1,893,759
	Intangibles		961,578			1,082,886
	Depreciation and amortization		171,648			152,576
	Reinsurance recoverable		-			20,400
	Net unrealized appreciation of securities - available for sale		208,246			527,376
	Total deferred tax liabilities		4,759,968			4,845,997
	Net deferred income tax liability	$	(859,361	)	$	(1,787,281	)
	(1) The deferred tax assets from net operating loss carryovers are as follows:
		September 30,			December 31,
	Type of NOL	2013			2012			Expiration
	State only (A)	$	433,645		$	380,810		31-Dec-33
	Valuation allowance		(200,724	)		(146,762	)
	State only, net of valuation allowance		232,921			234,048
	Amount subject to Annual Limitation, federal only (B)		27,200			30,600		31-Dec-19
	Total deferred tax asset from net operating loss carryovers	$	260,121		$	264,648
	(A) Kingstone generates operating losses for state purposes and has prior year net operating loss carryovers available. The state net operating loss carryover as of September 30, 2013 and December 31, 2012 was approximately $5,184,000 and $4,588,000, respectively. KICO, the Company’s insurance underwriting subsidiary, is not subject to state income taxes. KICO’s state tax obligations are paid through a gross premiums tax, which is included in the condensed consolidated statements of income and comprehensive income within other underwriting expenses. A valuation allowance has been recorded due to the uncertainty of generating enough state taxable income to utilize 100% of the available state net operating loss carryovers over their remaining lives, which expire between 2027 and 2033.
	(B) The Company has an NOL of $80,000 that is subject to Internal Revenue Code Section 382, which places a limitation on the utilization of the federal net operating loss to approximately $10,000 per year (“Annual Limitation”) as a result of a greater than 50% ownership change of the Company in 1999. The losses subject to the Annual Limitation will be available for future years, expiring through December 31, 2019.
	(2)  Deferred tax liability -  investment in KICO
	On July 1, 2009, the Company completed the acquisition of 100% of the issued and outstanding common stock of KICO (formerly known as Commercial Mutual Insurance Company (“CMIC”)) pursuant to the conversion of CMIC from an advance premium cooperative to a stock property and casualty insurance company. Pursuant to the plan of conversion, the Company acquired a 100% equity interest in KICO, in consideration for the exchange of $3,750,000 principal amount of surplus notes of CMIC. In addition, the Company forgave all accrued and unpaid interest on the surplus notes as of the date of conversion. As of the date of acquisition, unpaid accrued interest on the surplus notes along with the accretion of the discount on the original purchase of the surplus notes totaled $2,921,319 (together “Untaxed Interest”). As of the date of acquisition, the deferred tax liability on the Untaxed Interest was $1,169,000. Under GAAP guidance for business combinations, a temporary difference with an indefinite life exists when the parent has a lower carrying value of its subsidiary for income tax purposes. The Company is required to maintain its deferred tax liability of $1,169,000 related to this temporary difference until the stock of KICO is sold, or the assets of KICO are sold or KICO and the parent are merged.
	In assessing the valuation of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. No valuation allowance against deferred tax assets has been established, except for NOL limitations, as the Company believes it is more likely than not the deferred tax assets will be realized based on the historical taxable income of KICO, or by offset to deferred tax liabilities.
	The Company had no material unrecognized tax benefit and no adjustments to liabilities or operations were required. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the nine months ended September 30, 2013 and 2012. If any had been recognized these would be reported in income tax expense.

10_Net_Income_Per_Common_Share

10. Net Income Per Common Share	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
10. Net Income Per Common Share	'
	Basic net earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options. The computation of diluted earnings per share excludes those options with an exercise price in excess of the average market price of the Company’s common shares during the periods presented.
	The computation of diluted earnings per share excludes outstanding options in periods where the exercise of such options would be anti-dilutive. For the nine months and three months ended September 30, 2013, the inclusion of 16,120 and 28,159 options in the computation of diluted earnings per share would have been anti-dilutive for the periods and, as a result, the weighted average number of common shares used in the calculation of diluted earnings per common has not been adjusted for the effect of such options.
	The reconciliation of the weighted average number of shares of Common Stock used in the calculation of basic and diluted earnings per common share follows:
		Three months ended				Nine months ended
		September 30,				September 30,
		2013		2012		2013		2012
	Weighted average number of shares outstanding		3,811,243		3,824,461		3,826,510		3,794,979
	Effect of dilutive securities, common share equivalents		76,597		111,706		76,917		89,193
	Weighted average number of shares outstanding,
	used for computing diluted earnings per share		3,887,840		3,936,167		3,903,427		3,884,172

11_Commitments_and_Contingenci

11. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
11. Commitments and Contingencies	'
	Litigation
	From time to time, the Company is involved in various legal proceedings in the ordinary course of business. For example, to the extent a claim asserted by a third party in a law suit against one of the Company’s insureds covered by a particular policy, the Company may have a duty to defend the insured party against the claim. These claims may relate to bodily injury, property damage or other compensable injuries as set forth in the policy. Such proceedings are considered in estimating the liability for loss and LAE expenses. The Company is not subject to any other pending legal proceedings that management believes are likely to have a material adverse effect on the financial statements.
	State Insurance Regulation
	In the aftermath of Superstorm Sandy, the New York State Department of Financial Services has adopted various regulations that affect insurance companies that operate in the state of New York.  Included among the regulations are accelerated claims investigation and settlement requirements and mandatory participation in non-binding mediation proceedings funded by the insurer. Further, in February 2013, the state of New York announced that the Department of Financial Services has commenced an investigation into the claims practices of three insurance companies, including KICO, in connection with Superstorm Sandy claims.  The Department of Financial Services stated that the three insurers had a much larger than average consumer complaint rate with regard to Superstorm Sandy claims and indicated that the three insurers were being investigated for (i) failure to send adjusters in a timely manner; (ii) failure to process claims in a timely manner; and (iii) inability of homeowners to contact insurance company representatives.  KICO has received a letter from the Department of Financial Services seeking information and data with regard to the foregoing.  KICO is cooperating with the Department of Financial Services in connection with its investigation and believes that such matter will not have a material adverse effect on the Company’s financial position or results of operations.
	Employment Agreement
	Effective October 14, 2013, KICO entered into an amendment to its employment agreement with John D. Reiersen, its Executive Vice President (“the Amended Agreement”). The Amended Agreement extended the term of his employment agreement from December 31, 2014 to December 31, 2016, and effective January 1, 2015, Mr. Reiersen will receive a 5% increase in compensation.

12_Subsequent_Event

12. Subsequent Event	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
12. Subsequent Event	'
	Dividends Declared and Paid
	On November 12, 2013, the Company’s Board of Directors approved a dividend of $.04 per share, or $152,664, payable in cash on December 13, 2013 to stockholders of record as of November 29, 2013.

2_Accounting_Policies_and_Basi

2. Accounting Policies and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Use of Estimates	'
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions, which include the reserves for losses and loss adjustment expenses, are subject to considerable estimation error due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of several years. In addition, estimates and assumptions associated with receivables under reinsurance contracts related to contingent ceding commission revenue require considerable judgment by management. On an on-going basis, management reevaluates its assumptions and the methods of calculating its estimates. Actual results may differ significantly from the estimates and assumptions used in preparing the consolidated financial statements.
Principles of Consolidation	'
	The consolidated financial statements consist of Kingstone and its wholly-owned subsidiaries. Subsidiaries include KICO and its subsidiaries, CMIC Properties, Inc. and 15 Joys Lane, LLC, which together own the land and building from which KICO operates. All significant inter-company transactions have been eliminated in consolidation.
Accounting Pronouncements	'
	In February 2013, Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-02, Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income ("ASU 2013-02"). ASU 2013-02 supersedes and replaces the presentation requirements for the reclassifications out of accumulated other comprehensive income. None of the other requirements of previously issued ASUs related to comprehensive income are affected by ASU 2013-02. The Company adopted ASU 2013-02 on January 1, 2013 and the implementation of the standard did not have a material impact on the Company's results of operations, financial position or liquidity.
	The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

3_Investments_Tables

3. Investments (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Schedule of Availalbe for Sale Securities	'
	The amortized cost and fair value of investments in available-for-sale fixed-maturity securities and equity securities as of September 30, 2013 and December 31, 2012 are summarized as follows:
			30-Sep-13
																			Net
			Cost or				Gross			Gross Unrealized Losses									Unrealized
			Amortized				Unrealized			Less than 12			More than 12			Fair			Gains/
	Category		Cost				Gains			Months			Months			Value			(Losses)
			(unaudited)
	Fixed-Maturity Securities:
	Political subdivisions of States,
	Territories and Possessions		$	6,389,133			$	185,758		$	(73,124	)	$	(3,833	)	$	6,497,934		$	108,801
	Corporate and other bonds
	Industrial and miscellaneous			18,464,057				599,438			(207,697	)		(2,309	)		18,853,489			389,432
	Total fixed-maturity securities			24,853,190				785,196			(280,821	)		(6,142	)		25,351,423			498,233
	Equity Securities:
	Preferred stocks			2,917,202				2,378			(263,351	)		-			2,656,229			(260,973	)
	Common stocks			3,758,464				461,387			(86,356	)		-			4,133,495			375,031
	Total equity securities			6,675,666				463,765			(349,707	)		-			6,789,724			114,058
	Total		$	31,528,856			$	1,248,961		$	(630,528	)	$	(6,142	)	$	32,141,147		$	612,291
			31-Dec-12
																			Net
			Cost or				Gross			Gross Unrealized Losses									Unrealized
			Amortized				Unrealized			Less than 12			More than 12			Fair			Gains/
	Category		Cost				Gains			Months			Months			Value			(Losses)
	Fixed-Maturity Securities:
	Political subdivisions of States,
	Territories and Possessions		$	5,219,092			$	257,298		$	(1,574	)	$	-		$	5,474,816		$	255,724
	Corporate and other bonds
	Industrial and miscellaneous			19,628,005				1,123,392			(43,553	)		(722	)		20,707,122			1,079,117
	Total fixed-maturity securities			24,847,097				1,380,690			(45,127	)		(722	)		26,181,938			1,334,841
	Equity Securities:
	Preferred stocks			1,475,965				19,512			(11,130	)		-			1,484,347			8,382
	Common stocks			3,598,012				353,782			(145,899	)		-			3,805,895			207,883
	Total equity securities			5,073,977				373,294			(157,029	)		-			5,290,242			216,265
	Total		$	29,921,074			$	1,753,984		$	(202,156	)	$	(722	)	$	31,472,180		$	1,551,106
Schedule of Availalbe for Sale Securities by contractual maturity	'
	A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of September 30, 2013 and December 31, 2012 is shown below:
			30-Sep-13							31-Dec-12
			Amortized							Amortized
	Remaining Time to Maturity		Cost				Fair Value			Cost			Fair Value
			(unaudited)
	Less than one year		$	1,012,528			$	1,027,959		$	546,952		$	560,162
	One to five years			8,510,310				8,936,702			9,031,248			9,569,943
	Five to ten years			11,577,308				11,714,251			12,605,798			13,306,033
	More than 10 years			3,753,044				3,672,511			2,663,099			2,745,800
	Total		$	24,853,190			$	25,351,423		$	24,847,097		$	26,181,938
Schedule of Held to Maturity Securities	'
	The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of September 30, 2013 and December 31, 2012 are summarized as follows:
			30-Sep-13
																			Net
			Cost or				Gross			Gross Unrealized Losses									Unrealized
			Amortized				Unrealized			Less than 12			More than 12			Fair			Gains/
	Category		Cost				Gains			Months			Months			Value			(Losses)
			(unaudited)
	U.S. Treasury securities		$	606,310			$	69,719		$	-		$	-		$	676,029		$	69,719
	Political subdivisions of States,
	Territories and Possessions			207,665				-			(2,935	)		-			204,730			-2,935
	Corporate and other bonds
	Industrial and miscellaneous			634,823				8,934			-			-			643,757			8,934
	Total		$	1,448,798			$	78,653		$	(2,935	)	$	-		$	1,524,516		$	75,718
		31-Dec-12
							Net
		Cost or	Gross	Gross Unrealized Losses			Unrealized
		Amortized	Unrealized	Less than 12	More than 12	Fair	Gains/
	Category	Cost	Gains	Months	Months	Value	(Losses)
	U.S. Treasury securities	$        606,281	$         172,745	$                     -	$                     -	$      779,026	$         172,745
	U.S. Treasury securities included in held-to-maturity securities are held in trust pursuant to the New York State Department of Financial Services’ minimum funds requirement.
	A summary of the amortized cost and fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of September 30, 2013 and December 31, 2012 is shown below:
			30-Sep-13							31-Dec-12
			Amortized							Amortized
	Remaining Time to Maturity		Cost				Fair Value			Cost			Fair Value
			(unaudited)
	Less than one year		$	-			$	-		$	-		$	-
	One to five years			-				-			-			-
	Five to ten years			842,488				848,487			-			-
	More than 10 years			606,310				676,029			606,281			779,026
	Total		$	1,448,798			$	1,524,516		$	606,281		$	779,026
Schedule of Investment Income	'
	Major categories of the Company’s net investment income are summarized as follows:
			Three months ended							Nine months ended
			September 30,							September 30,
			2013				2012			2013			2012
			(unaudited)							(unaudited)
	Income:
	Fixed-maturity securities		$	241,286			$	249,315		$	736,298		$	710,585
	Equity securities			117,916				49,279			297,760			197,518
	Cash and cash equivalents			1				25			30			84
	Other			(1,066	)			2			10,751			6
	Total			358,137				298,621			1,044,839			908,193
	Expenses:
	Investment expenses			63,789				56,462			192,173			168,638
	Net investment income		$	294,348			$	242,159		$	852,666		$	739,555
Schedule of Securities with realized gains and losses on investments	'
	The Company’s net realized gains and losses on investments are summarized as follows:
			Three months ended							Nine months ended
			September 30,							September 30,
			2013				2012			2013			2012
			(unaudited)							(unaudited)
	Fixed-maturity securities:
	Gross realized gains		$	56,669			$	60,349		$	237,886		$	153,695
	Gross realized losses			-				-			(56,471	)		(52,600	)
				56,669				60,349			181,415			101,095
	Equity securities:
	Gross realized gains			79,593				7,735			369,582			40,019
	Gross realized losses			(41,806	)			(2,098	)		(101,523	)		(29,568	)
				37,787				5,637			268,059			10,451
	Net realized gains		$	94,456			$	65,986		$	449,474		$	111,546
Schedule of Securities with Unrealized Losses	'
	The Company held securities with unrealized losses representing declines that were considered temporary at September 30, 2013 and December 31, 2012 as follows:
			30-Sep-13
			Less than 12 months										12 months or more									Total
										No. of									No. of			Aggregate
			Fair				Unrealized			Positions			Fair			Unrealized			Positions			Fair		Unrealized
	Category		Value				Losses			Held			Value			Losses			Held			Value		Losses
			(unaudited)
	Fixed-Maturity Securities:
	U.S. Treasury securities
	and obligations of U.S.
	government corporations
	and agencies		$	-			$	-			-		$	-		$	-			-		$	-	$	-
	Political subdivisions of
	States, Territories and
	Possessions			1,372,233				(73,124	)		5			36,263			(3,833	)		1			1,408,496		(76,957	)
	Corporate and other
	bonds industrial and
	miscellaneous			4,771,560				(207,697	)		17			302,423			(2,309	)		1			5,073,983		(210,006	)
	Total fixed-maturity
	securities		$	6,143,793			$	(280,821	)		22		$	338,686		$	(6,142	)		2		$	6,482,479	$	(286,963	)
	Equity Securities:
	Preferred stocks		$	2,345,104			$	(263,351	)		10		$	-		$	-			-		$	2,345,104	$	(263,351	)
	Common stocks			1,503,495				(86,356	)		8			-			-			-			1,503,495		(86,356	)
	Total equity securities		$	3,848,599			$	(349,707	)		18		$	-		$	-			-		$	3,848,599	$	(349,707	)
	Total		$	9,992,392			$	(630,528	)		40		$	338,686		$	(6,142	)		2		$	10,331,078	$	(636,670	)
			31-Dec-12
			Less than 12 months										12 months or more									Total
										No. of									No. of			Aggregate
			Fair				Unrealized			Positions			Fair			Unrealized			Positions			Fair		Unrealized
	Category		Value				Losses			Held			Value			Losses			Held			Value		Losses
	Fixed-Maturity Securities:
	Political subdivisions of
	States, Territories and
	Possessions		$	202,798			$	(1,574	)		1		$	-		$	-			-		$	202,798	$	(1,574	)
	Corporate and other
	bonds industrial and
	miscellaneous			4,025,551				(43,553	)		19			128,125			(722	)		1			4,153,676		(44,275	)
	Total fixed-maturity
	securities		$	4,228,349			$	(45,127	)		20		$	128,125		$	(722	)		1		$	4,356,474	$	(45,849	)
	Equity Securities:
	Preferred stocks		$	387,925			$	(11,130	)		3		$	-		$	-			-		$	387,925	$	(11,130	)
	Common stocks			1,536,860				(145,899	)		9			-			-			-			1,536,860		(145,899	)
	Total equity securities		$	1,924,785			$	(157,029	)		12		$	-		$	-			-		$	1,924,785	$	(157,029	)
	Total		$	6,153,134			$	(202,156	)		32		$	128,125		$	(722	)		1		$	6,281,259	$	(202,878	)

4_Fair_Value_Measurements_Tabl

4. Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Schedule of Fair Value Measurements	'
	The Company’s investments are allocated among pricing input levels at September 30, 2013 and December 31, 2012 as follows:
		30-Sep-13
	($ in thousands)	Level 1		Level 2		Level 3		Total
		(unaudited)
	Fixed-maturity securities
	U.S. Treasury securities
	and obligations of U.S.
	government corporations
	and agencies	$	-	$	-	$	-	$	-
	Political subdivisions of
	States, Territories and
	Possessions		-		6,498		-		6,498
	Corporate and other
	bonds industrial and
	miscellaneous		11,067		7,786		-		18,853
	Total fixed maturities		11,067		14,284		-		25,351
	Equity securities		6,790		-		-		6,790
	Total investments	$	17,857	$	14,284	$	-	$	32,141
		31-Dec-12
	($ in thousands)	Level 1		Level 2		Level 3		Total
	Fixed-maturity securities
	U.S. Treasury securities
	and obligations of U.S.
	government corporations
	and agencies	$	-	$	-	$	-	$	-
	Political subdivisions of
	States, Territories and
	Possessions		-		5,475		-		5,475
	Corporate and other
	bonds industrial and
	miscellaneous		11,600		9,107		-		20,707
	Total fixed maturities		11,600		14,582		-		26,182
	Equity securities		5,290		-		-		5,290
	Total investments	$	16,890	$	14,582	$	-	$	31,472

5_Fair_Value_of_Financial_Inst1

5. Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Schedule of Fair Value of Financial Instruments	'
	The estimated fair values of the Company’s financial instruments are as follows:
		30-Sep-13				31-Dec-12
		Carrying Value		Fair Value		Carrying Value		Fair Value
		(unaudited)
	Fixed-maturity investments held to maturity	$	1,448,798	$	1,524,516	$	606,281	$	779,026
	Cash and cash equivalents		4,186,660		4,186,660		2,240,012		2,240,012
	Premiums receivable		8,202,728		8,202,728		7,766,825		7,766,825
	Reinsurance receivables		36,124,555		36,124,555		38,902,782		38,902,782
	Real estate, net of accumulated depreciation		1,789,737		1,816,122		1,696,924		1,720,000
	Reinsurance balances payable		3,217,230		3,217,230		1,820,527		1,820,527
	Advance payments from catastrophe reinsurers		-		-		7,358,391		7,358,391
	Notes payable (including related parties)		957,000		957,000		1,197,000		1,197,000

6_Property_and_Casualty_Insura1

6. Property and Casualty Insurance Activity (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Schedule of Earned Premiums	'
	Premiums written, ceded and earned are as follows:
		Direct			Assumed			Ceded			Net
	Nine months ended September 30, 2013 (unaudited)
	Premiums written	$	44,651,570		$	36,999		$	(26,567,984	)	$	18,120,585
	Change in unearned premiums		(5,465,632	)		17,377			2,752,751			(2,695,504	)
	Premiums earned	$	39,185,938		$	54,376		$	(23,815,233	)	$	15,425,081
	Nine months ended September 30, 2012 (unaudited)
	Premiums written	$	36,439,884		$	21,553		$	(21,699,102	)	$	14,762,335
	Change in unearned premiums		(4,017,217	)		(9,119	)		1,817,614			(2,208,722	)
	Premiums earned	$	32,422,667		$	12,434		$	(19,881,488	)	$	12,553,613
	Three months ended September 30, 2013 (unaudited)
	Premiums written	$	15,925,613		$	16,952		$	(8,786,730	)	$	7,155,835
	Change in unearned premiums		(2,013,499	)		(11,192	)		994,440			(1,030,251	)
	Premiums earned	$	13,912,114		$	5,760		$	(7,792,290	)	$	6,125,584
	Three months ended September 30, 2012 (unaudited)
	Premiums written	$	12,765,358		$	18,354		$	(7,218,500	)	$	5,565,212
	Change in unearned premiums		(1,363,818	)		(13,031	)		228,143			(1,148,706	)
	Premiums earned	$	11,401,540		$	5,323		$	(6,990,357	)	$	4,416,506
Schedule of Loss and Loss Adjustment Expenses	'
	The following table provides a reconciliation of the beginning and ending balances for unpaid losses and loss adjustment expenses (“LAE”):
		Nine months ended
		September 30,
		2013			2012
		(unaudited)
	Balance at beginning of period	$	30,485,532		$	18,480,717
	Less reinsurance recoverables		(18,419,694	)		(10,001,060	)
	Net balance, beginning of period		12,065,838			8,479,657
	Incurred related to:
	Current year		7,467,756			6,554,087
	Prior years		682,814			824,334
	Total incurred		8,150,570			7,378,421
	Paid related to:
	Current year		2,458,940			2,572,948
	Prior years		3,498,333			2,681,698
	Total paid		5,957,273			5,254,646
	Net balance at end of period		14,259,135			10,603,432
	Add reinsurance recoverables		15,257,918			11,679,713
	Balance at end of period	$	29,517,053		$	22,283,145
Schedule of Ceding Commission Revenue	'
	Ceding commissions earned consists of the following:
		Three months ended September 30,						Nine months ended September 30,
		September 30,						September 30,
		2013			2012			2013			2012
		(unaudited)						(unaudited)
	Provisional ceding commissions earned	$	2,940,661		$	2,171,391		$	7,836,370		$	6,231,106
	Contingent ceding commissions earned		670,883			540,040			403,316			2,294,839
		$	3,611,544		$	2,711,431		$	8,239,686		$	8,525,945

7_LongTerm_Debt_Tables

7. Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Schedule of Long-Term Debt	'
	Long-term debt consists of:
		30-Sep-13						31-Dec-12
				Less						Less
		Total		Current		Long-Term		Total		Current		Long-Term
		Debt		Maturities		Debt		Debt		Maturities		Debt
		(unaudited)
	Notes payable	$	747,000	$	747,000	$	-	$	747,000	$	-	$	747,000
	Bank line of credit		210,000		210,000		-		450,000		450,000		-
		$	957,000	$	957,000	$	-	$	1,197,000	$	450,000	$	747,000
Schedule of Related Party Balances	'
	Related party balances as of September 30, 2013 and December 31, 2012, under the 2009/2010 Notes are as follows:
	Barry Goldstein IRA (Mr. Goldstein is Chairman of the Board, President
	and Chief Executive Officer, and principal stockholder of the Company)	$	90,000
	Jay Haft, a director of the Company		30,000
	A member of the family of Michael Feinsod, a director of the Company		60,000
	Mr. Yedid and members of his family		156,000
	A member of the family of Floyd Tupper, a director of KICO		42,000
	Total related party transactions	$	378,000

8_Stockholders_Equity_Tables

8. Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Weighted average assumptions	'
	The following weighted average assumptions were used for grants during the nine months ended September 30, 2013:
	Dividend Yield		3.14	%
	Volatility		46.71	%
	Risk-Free Interest Rate		0.79	%
	Expected Life	3.25 years
Schedule of Stock Options Activity	'
	A summary of option activity under the Company’s 2005 Plan for the nine months ended September 30, 2013 is as follows:
	Stock Options	Number of Shares			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
	Outstanding at January 1, 2013		235,115		$	2.58		2.24	$	539,485
	Granted		67,500		$	5.09		-	$	12,150
	Exercised		(1,250	)	$	2.37		-	$	(2,963	)
	Forfeited		-		$	-		-	$	-
	Outstanding at September 30, 2013		301,365		$	3.14		2.26	$	642,056
	Vested and Exercisable at September 30, 2013		240,740		$	2.66		1.63	$	628,344

9_Income_Taxes_Tables

9. Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Schedule of Deferrred Tax Assets and Liabilities	'
	Company’s deferred tax assets and liabilities are as follows:
		September 30,			December 31,
		2013			2012
		(unaudited)
	Deferred tax asset:
	Net operating loss carryovers (1)	$	260,121		$	264,648
	Claims reserve discount		370,539			313,544
	Unearned premium		1,024,271			811,413
	Deferred ceding commission revenue		2,237,332			1,658,190
	Other		8,344			10,921
	Total deferred tax assets		3,900,607			3,058,716
	Deferred tax liability:
	Investment in KICO (2)		1,169,000			1,169,000
	Deferred acquisition costs		2,249,496			1,893,759
	Intangibles		961,578			1,082,886
	Depreciation and amortization		171,648			152,576
	Reinsurance recoverable		-			20,400
	Net unrealized appreciation of securities - available for sale		208,246			527,376
	Total deferred tax liabilities		4,759,968			4,845,997
	Net deferred income tax liability	$	(859,361	)	$	(1,787,281	)
Losses subject to Annual Limitation	'
		September 30,			December 31,
	Type of NOL	2013			2012			Expiration
	State only (A)	$	433,645		$	380,810		31-Dec-33
	Valuation allowance		(200,724	)		(146,762	)
	State only, net of valuation allowance		232,921			234,048
	Amount subject to Annual Limitation, federal only (B)		27,200			30,600		31-Dec-19
	Total deferred tax asset from net operating loss carryovers	$	260,121		$	264,648

10_Net_Income_Per_Common_Share1

10. Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2013
Earnings per common share:	'
Schedule of Net Income Per Common Share	'
	The reconciliation of the weighted average number of shares of Common Stock used in the calculation of basic and diluted earnings per common share follows:
		Three months ended				Nine months ended
		September 30,				September 30,
		2013		2012		2013		2012
	Weighted average number of shares outstanding		3,811,243		3,824,461		3,826,510		3,794,979
	Effect of dilutive securities, common share equivalents		76,597		111,706		76,917		89,193
	Weighted average number of shares outstanding,
	used for computing diluted earnings per share		3,887,840		3,936,167		3,903,427		3,884,172

3_Investments_Details

3. Investments (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Cost or Amortized Cost	$31,528,856	$29,921,074
Gross Unrealized Gains	1,248,961	1,753,984
Gross Unrealized Losses-Less than 12 Months	-630,528	-202,156
Gross Unrealized Loss-More than 12 Months	-6,142	-722
Fair Value	32,141,147	31,472,180
Net Unrealized Gains/(Losses)	612,291	1,551,106
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions	'	'
Cost or Amortized Cost	6,389,133	5,219,092
Gross Unrealized Gains	185,758	257,298
Gross Unrealized Losses-Less than 12 Months	-73,124	-1,574
Gross Unrealized Loss-More than 12 Months	-3,833	'
Fair Value	6,497,934	5,474,816
Net Unrealized Gains/(Losses)	108,801	255,724
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous	'	'
Cost or Amortized Cost	18,464,057	19,628,005
Gross Unrealized Gains	599,438	1,123,392
Gross Unrealized Losses-Less than 12 Months	-207,697	-43,553
Gross Unrealized Loss-More than 12 Months	-2,309	-722
Fair Value	18,853,489	20,707,122
Net Unrealized Gains/(Losses)	389,432	1,079,117
Fixed Maturity Securities Total Fixed Maturity Securities	'	'
Cost or Amortized Cost	24,853,190	24,847,097
Gross Unrealized Gains	785,196	1,380,690
Gross Unrealized Losses-Less than 12 Months	-280,821	-45,127
Gross Unrealized Loss-More than 12 Months	-6,142	-722
Fair Value	25,351,423	26,181,938
Net Unrealized Gains/(Losses)	498,233	1,334,841
Equity Securities Preferred Stocks	'	'
Cost or Amortized Cost	2,917,202	1,475,965
Gross Unrealized Gains	2,378	19,512
Gross Unrealized Losses-Less than 12 Months	-263,351	-11,130
Gross Unrealized Loss-More than 12 Months	'	'
Fair Value	2,656,229	1,484,347
Net Unrealized Gains/(Losses)	-260,973	8,382
Equity Securities Common Stocks	'	'
Cost or Amortized Cost	3,758,464	3,598,012
Gross Unrealized Gains	461,387	353,782
Gross Unrealized Losses-Less than 12 Months	-86,356	-145,899
Gross Unrealized Loss-More than 12 Months	'	'
Fair Value	4,133,495	3,805,895
Net Unrealized Gains/(Losses)	375,031	207,883
Equity Securities Total Equity Securities	'	'
Cost or Amortized Cost	6,675,666	5,073,977
Gross Unrealized Gains	463,765	373,294
Gross Unrealized Losses-Less than 12 Months	-349,707	-157,029
Gross Unrealized Loss-More than 12 Months	'	'
Fair Value	6,789,724	5,290,242
Net Unrealized Gains/(Losses)	$114,058	$216,265

3_Investments_Details_1

3. Investments (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Amortized Cost	$24,853,190	$24,847,097
Fair Value	25,351,423	26,181,938
Less Than One Year	'	'
Amortized Cost	1,012,528	546,952
Fair Value	1,027,959	560,162
One To Five Years	'	'
Amortized Cost	8,510,310	9,031,248
Fair Value	8,936,702	9,569,943
Five To Ten Years	'	'
Amortized Cost	11,577,308	12,605,798
Fair Value	11,714,251	13,306,033
More Than 10 Years	'	'
Amortized Cost	3,753,044	2,663,099
Fair Value	$3,672,511	$2,745,800

3_Investments_Details_2

3. Investments (Details 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Cost or Amortized Cost	$1,448,798	$606,281
Gross Unrealized Gains	78,653	172,745
Gross Unrealized Losses-Less than 12 Months	-2,935	'
Gross Unrealized Loss-More than 12 Months	'	'
Fair Value	1,524,516	779,026
Net Unrealized Gains/(Losses)	75,718	172,745
US Treasury Securities	'	'
Cost or Amortized Cost	606,310	606,281
Gross Unrealized Gains	69,719	172,745
Gross Unrealized Losses-Less than 12 Months	'	'
Gross Unrealized Loss-More than 12 Months	'	'
Fair Value	676,029	779,026
Net Unrealized Gains/(Losses)	69,719	172,745
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions	'	'
Cost or Amortized Cost	207,665	'
Gross Unrealized Gains	'	'
Gross Unrealized Losses-Less than 12 Months	-2,935	'
Gross Unrealized Loss-More than 12 Months	'	'
Fair Value	204,730	'
Net Unrealized Gains/(Losses)	-2,935	'
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous	'	'
Cost or Amortized Cost	634,823	'
Gross Unrealized Gains	8,934	'
Gross Unrealized Losses-Less than 12 Months	'	'
Gross Unrealized Loss-More than 12 Months	'	'
Fair Value	643,757	'
Net Unrealized Gains/(Losses)	$8,934	'

3_Investments_Details_3

3. Investments (Details 3) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Amortized Cost	$1,448,798	$606,281
Fair Value	1,524,516	779,026
Less Than One Year	'	'
Amortized Cost	'	'
Fair Value	'	'
One To Five Years	'	'
Amortized Cost	'	'
Fair Value	'	'
Five To Ten Years	'	'
Amortized Cost	842,488	'
Fair Value	848,487	'
More Than 10 Years	'	'
Amortized Cost	606,310	606,281
Fair Value	$676,029	$779,026

3_Investments_Details_4

3. Investments (Details 4) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income:	'	'	'	'
Fixed-maturity securities	$241,286	$249,315	$736,298	$710,585
Equity securities	117,916	49,279	297,760	197,518
Cash and cash equivalents	1	25	30	84
Other	-1,066	2	10,751	6
Total	358,137	298,621	1,044,839	908,193
Expenses:	'	'	'	'
Investment expenses	63,789	56,462	192,173	168,638
Net investment income	$294,348	$242,159	$852,666	$739,555

3_Investments_Details_5

3. Investments (Details 5) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Fixed-maturity securities:	'	'	'	'
Gross realized gains	$56,669	$60,349	$237,886	$153,695
Gross realized losses	'	'	-56,471	-52,600
Total	56,669	60,349	181,415	101,095
Equity securities:	'	'	'	'
Gross realized gains	79,593	7,735	369,582	40,019
Gross realized losses	-41,806	-2,098	-101,523	-29,568
Total equity securities	37,787	5,637	268,059	10,451
Net realized gains	$94,456	$65,986	$449,474	$111,546

3_Investments_Details_6

3. Investments (Details 6) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Fair Value-Less than 12 months	$9,992,392	$6,153,134
Unrealized Losses-Less than 12 Months	-630,528	-202,156
No. of Positions Held-Less than 12 Months	40	32
Fair Value-12 months or more	338,686	128,125
Unrealized Losses-12 months or more	-6,142	-722
No. of Positions Held-12 months or more	2	1
Aggregate Fair Value-Total	10,331,078	6,281,259
Unrealized Losses-Total	-636,670	-202,878
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions	'	'
Fair Value-Less than 12 months	1,372,233	202,798
Unrealized Losses-Less than 12 Months	-73,124	-1,574
No. of Positions Held-Less than 12 Months	5	1
Fair Value-12 months or more	36,263	'
Unrealized Losses-12 months or more	-3,833	'
No. of Positions Held-12 months or more	1	'
Aggregate Fair Value-Total	1,408,496	202,798
Unrealized Losses-Total	-76,957	-1,574
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous	'	'
Fair Value-Less than 12 months	4,771,560	4,025,551
Unrealized Losses-Less than 12 Months	-207,697	-43,553
No. of Positions Held-Less than 12 Months	17	19
Fair Value-12 months or more	302,423	128,125
Unrealized Losses-12 months or more	-2,309	-722
No. of Positions Held-12 months or more	1	1
Aggregate Fair Value-Total	5,073,983	4,153,676
Unrealized Losses-Total	-210,006	-44,275
Fixed Maturity Securities Total Fixed Maturity Securities	'	'
Fair Value-Less than 12 months	6,143,793	4,228,349
Unrealized Losses-Less than 12 Months	-280,821	-45,127
No. of Positions Held-Less than 12 Months	22	20
Fair Value-12 months or more	338,686	128,125
Unrealized Losses-12 months or more	-6,142	-722
No. of Positions Held-12 months or more	2	1
Aggregate Fair Value-Total	6,482,479	4,356,474
Unrealized Losses-Total	-286,963	-45,849
Equity Securities Preferred Stocks	'	'
Fair Value-Less than 12 months	2,345,104	387,925
Unrealized Losses-Less than 12 Months	-263,351	-11,130
No. of Positions Held-Less than 12 Months	10	3
Fair Value-12 months or more	'	'
Unrealized Losses-12 months or more	'	'
No. of Positions Held-12 months or more	'	'
Aggregate Fair Value-Total	2,345,104	387,925
Unrealized Losses-Total	-263,351	-11,130
Equity Securities Common Stocks	'	'
Fair Value-Less than 12 months	1,503,495	1,536,860
Unrealized Losses-Less than 12 Months	-86,356	-145,899
No. of Positions Held-Less than 12 Months	8	9
Fair Value-12 months or more	'	'
Unrealized Losses-12 months or more	'	'
No. of Positions Held-12 months or more	'	'
Aggregate Fair Value-Total	1,503,495	1,536,860
Unrealized Losses-Total	-86,356	-145,899
Equity Securities Total Equity Securities	'	'
Fair Value-Less than 12 months	3,848,599	1,924,785
Unrealized Losses-Less than 12 Months	-349,707	-157,029
No. of Positions Held-Less than 12 Months	18	12
Fair Value-12 months or more	'	'
Unrealized Losses-12 months or more	'	'
No. of Positions Held-12 months or more	'	'
Aggregate Fair Value-Total	3,848,599	1,924,785
Unrealized Losses-Total	-349,707	-157,029
US Treasury Securities	'	'
Fair Value-Less than 12 months	'	'
Fair Value-12 months or more	'	'
Aggregate Fair Value-Total	'	'

3_Investments_Details_Narrativ

3. Investments (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Text Block [Abstract]	'	'
Proceeds from the sale and maturity of fixed-maturity securities	$5,274,520	$2,766,758
Proceeds from the sale of equity securities	$3,747,729	$1,001,247

4_Fair_Value_Measurements_Deta

4. Fair Value Measurements (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Fixed-maturity investments available for sale U.S. Treasury securities and obligations of U.S. government corporations and agencies	'	'
Political subdivisions of States, Territories and Possessions	6,498	5,475
Corporate and other bonds industrial and miscellaneous	18,853	20,707
Total fixed maturities	25,351	26,182
Equity investments	6,790	5,290
Total investments	32,141	31,472
Level 1	'	'
Fixed-maturity investments available for sale U.S. Treasury securities and obligations of U.S. government corporations and agencies	'	'
Political subdivisions of States, Territories and Possessions	'	'
Corporate and other bonds industrial and miscellaneous	11,067	11,600
Total fixed maturities	11,067	11,600
Equity investments	6,790	5,290
Total investments	17,857	16,890
Level 2	'	'
Fixed-maturity investments available for sale U.S. Treasury securities and obligations of U.S. government corporations and agencies	'	'
Political subdivisions of States, Territories and Possessions	6,498	5,475
Corporate and other bonds industrial and miscellaneous	7,786	9,107
Total fixed maturities	14,284	14,582
Equity investments	'	'
Total investments	14,284	14,582
Level 3	'	'
Fixed-maturity investments available for sale U.S. Treasury securities and obligations of U.S. government corporations and agencies	'	'
Political subdivisions of States, Territories and Possessions	'	'
Corporate and other bonds industrial and miscellaneous	'	'
Total fixed maturities	'	'
Equity investments	'	'
Total investments	'	'

5_Fair_Value_of_Financial_Inst2

5. Fair Value of Financial Instruments (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Reinsurance balances payable	$3,217,230	$1,820,527
Carrying Value	'	'
Fixed-maturity investments held to maturity	1,448,798	606,281
Cash and cash equivalents	4,186,660	2,240,012
Premiums receivable	8,202,728	7,766,825
Reinsurance receivables	36,124,555	38,902,782
Real estate net of accumulated depreciation	1,789,737	1,696,924
Reinsurance balances payable	3,217,230	1,820,527
Advance payments from catastrophe reinsurers	'	7,358,391
Notes payable (including related parties)	957,000	1,197,000
Fair Value	'	'
Fixed-maturity investments held to maturity	1,524,516	779,026
Cash and cash equivalents	4,186,660	2,240,012
Premiums receivable	8,202,728	7,766,825
Reinsurance receivables	36,124,555	38,902,782
Real estate net of accumulated depreciation	1,816,122	1,720,000
Reinsurance balances payable	3,217,230	1,820,527
Advance payments from catastrophe reinsurers	'	7,358,391
Notes payable (including related parties)	$957,000	$1,197,000

6_Property_and_Casulty_Insuran

6. Property and Casulty Insurance Activity (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Premiums Written	'	'	'	'
Direct	$15,925,613	$12,765,358	$44,651,570	$36,439,884
Assumed	16,952	18,354	36,999	21,553
Ceded	-8,786,730	-7,218,500	-26,567,984	-21,699,102
Net	7,155,835	5,565,212	18,120,585	14,762,335
Changes In Unearned Premiums	'	'	'	'
Direct	-2,013,499	-1,363,818	-5,465,632	-4,017,217
Assumed	-11,192	-13,031	17,377	-9,119
Ceded	994,440	228,143	2,752,751	1,817,614
Net	-1,030,251	-1,148,706	-2,695,504	-2,208,722
Premiums Earned	'	'	'	'
Direct	13,912,114	11,401,540	39,185,938	32,422,667
Assumed	5,760	5,323	54,376	12,434
Ceded	-7,792,290	-6,990,357	-23,815,233	-19,881,488
Net	$6,125,584	$4,416,506	$15,425,081	$12,553,613

6_Property_and_Casulty_Insuran1

6. Property and Casulty Insurance Activity (Details 1) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Property And Casulty Insurance Activity Details 1	'	'
Balance at beginning of period	$30,485,532	$18,480,717
Less reinsurance recoverables	-18,419,694	-10,001,060
Net balance, beginning of period	12,065,838	8,479,657
Incurred related to:	'	'
Current year	7,467,756	6,554,087
Prior years	682,814	824,334
Total incurred	8,150,570	7,378,421
Paid related to:	'	'
Current year	2,458,940	2,572,948
Prior years	3,498,333	2,681,698
Total paid	5,957,273	5,254,646
Net balance at end of period	14,259,135	10,603,432
Add reinsurance recoverables	15,257,918	11,679,713
Balance at end of period	$29,517,053	$22,283,145

6_Property_and_Casulty_Insuran2

6. Property and Casulty Insurance Activity (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Property And Casulty Insurance Activity Details 2	'	'	'	'
Provisional ceding commissions earned	$2,940,661	$2,171,391	$7,836,370	$6,231,106
Contingent ceding commissions earned	670,883	540,040	403,316	2,294,839
Total commissions earned	$3,611,544	$2,711,431	$8,239,686	$8,525,945

6_Property_and_Casulty_Insuran3

6. Property and Casulty Insurance Activity (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Property And Casulty Insurance Activity Details Narrative	'	'	'
Advance premiums	$1,000,000	'	$611,000
Incurred Losses and Loss Adjustment Expenses are net of reinsurance recoveries under reinsurance contracts	12,170,056	6,917,332	'
Advance payments from catastrophe reinsurers	'	'	7,358,391
Commissions payable to reinsurers	$174,569	'	$807,415

7_LongTerm_Debt_Details

7. Long-Term Debt (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Notes Payable	$957,000	$1,197,000
Total Debt	'	'
Notes Payable	747,000	747,000
Line of Credit	210,000	450,000
Long-Term Debt-Total	957,000	1,197,000
Less Current Maturities	'	'
Notes Payable	747,000	'
Line of Credit	210,000	450,000
Long-Term Debt-Total	957,000	450,000
LongTermDebt	'	'
Notes Payable	'	747,000
Line of Credit	'	'
Long-Term Debt-Total	'	$747,000

7_LongTerm_Debt_Details_1

7. Long-Term Debt (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Long-Term Debt Details 1	'	'
Barry Goldstein IRA (Mr. Goldstein is Chairman of the Board, President and Chief Executive Officer, and principal stockholder of the Company)	$90,000	$90,000
Jay Haft, a director of the Company	30,000	30,000
A member of the family of Michael Feinsod, a director of the Company	60,000	60,000
Mr. Yedid and members of his family	156,000	156,000
A member of the family of Floyd Tupper, a director of KICO	42,000	42,000
Total related party balances	$378,000	$378,000

7_LongTerm_Debt_Details_Narrat

7. Long-Term Debt (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Long-Term Debt Details Narrative	'	'	'	'
Interest Expene-Notes	$18,000	$18,000	$53,000	$53,000
Interest Expense-Related Parties	$9,000	$9,000	$27,000	$27,000
Interest Rate	12.63%	'	12.63%	'

8_Stockholders_Equity_Details

8. Stockholders' Equity (Details)	9 Months Ended
	Sep. 30, 2013
Stockholders Equity Details	'
Dividend Yield	3.14%
Volatility	46.71%
Risk-Free Interest Rate	0.79%
Expected Life	'3 years 3 months

8_Stockholders_Equity_Details_

8. Stockholders' Equity (Details 1) (USD $)	9 Months Ended
	Sep. 30, 2013
Stockholders Equity Details 1	'
Number of Options Outstanding, Beginning	235,115
Number of Options Granted	67,500
Number of Options Exercised	-1,250
Number of Options Forfeited	'
Number of Options Outstanding, Ending	301,365
Number of Options Vested and Exercisable	240,740
Weighted Average Exercise Price Outstanding, Beginning	$2.58
Weighted Average Exercise Price Granted	$5.09
Weighted Average Exercise Price Exercised	$2.37
Weighted Average Exercise Price Forfeited	'
Weighted Average Exercise Price Outstanding, Ending	$3.14
Weighted Average Exercise Price Vested and Exercisable	$2.66
Weighted Average Remaining Contractual Life (in years) Outstanding Beginning	'2 years 2 months 27 days
Weighted Average Remaining Contractual Life (in years) Outstanding Ending	'2 years 3 months 4 days
Weighted Average Remaining Contractual Life (in years) Vested and Exercisable	'2 years
Aggregate Intrinsic Value Outstanding, Beginning	$539,485
Aggregate Intrinsic Value Granted	$12,150
Aggregate Intrinsic Value Exercised	-2,963
Aggregate Intrinsic Value Forfeited/canceled	'
Aggregate Intrinsic Value Outstanding, Ending	642,056
Aggregate Intrinsic Value Vested and Exercisable	$628,344

8_Stockholders_Equity_Details_1

8. Stockholders' Equity (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stockholders Equity Details Narrative	'	'	'	'
Dividends Declared	$152,464	$153,218	$459,738	$380,046
Compensation Expense	27,000	9,000	40,000	39,000
Stock-based compensation expense related to stock options is net of estimated forfeitures	'	'	21.00%	21.00%
Unamortized compensation cost related to unvested stock option awards	$60,000	'	$60,000	'
Unamortized compensation cost vesting period	'	'	'1 year 6 months 22 days	'

9_Income_Taxes_Details

9. Income Taxes (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Deferred tax asset:	'	'
Net operating loss carryovers (1)	$260,121	$264,648
Claims reserve discount	370,539	313,544
Unearned premium	1,024,271	811,413
Deferred ceding commission revenue	2,237,332	1,658,190
Other	8,344	10,921
Total deferred tax assets	3,900,607	3,058,716
Deferred tax liability:	'	'
Investment in KICO (2)	1,169,000	1,169,000
Deferred acquisition costs	2,249,496	1,893,759
Intangibles	961,578	1,082,886
Depreciation and amortization	171,648	152,576
Reinsurance recoverable	'	20,400
Net unrealized appreciation of securities - available for sale	208,246	527,376
Total deferred tax liabilities	4,759,968	4,845,997
Net deferred income tax liability	($859,361)	($1,787,281)

9_Income_Taxes_Details_2

9. Income Taxes (Details 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Income Taxes Details 2	'	'
State only (A)	$433,645	$380,810
Valuation allowance	-200,724	-146,762
State only, net of valuation allowance	232,921	234,048
Amount subject to Annual Limitation, Federal only (B)	27,200	30,600
Total deferred tax asset from net operating loss carryovers	$260,121	$264,648
State only (A) expiration date	'December 31, 2033	'
Amount subject to Annual Limitation, Federal only (B) expiration date	'December 31, 2019	'

9_Income_Taxes_Details_Narrati

9. Income Taxes (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Income Taxes Details Narrative	'	'	'
Effective Tax Rate-Continuing Operations	28.60%	32.70%	'
Net operating loss carryover	$5,184,000	'	$4,588,000

10_Net_Income_Per_Share_Detail

10. Net Income Per Share (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Income Per Share Details	'	'	'	'
Weighted average number of shares outstanding	3,811,243	3,824,461	3,826,510	3,794,979
Effect of dilutive securities, common share equivalents	$76,597	$111,706	$76,917	$89,193
Weighted average number of shares outstanding, used for computing diluted earnings per share	3,887,840	3,936,167	3,903,427	3,884,172

10_Net_Income_Per_Common_Share2

10. Net Income Per Common Share (Details Narrative)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Net Income Per Common Share Details Narrative	'	'
Options with an exercise price below the average makert price	16,120	28,159