Kingstone Companies (KINS) 10-Q 12 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 12, 2014
Document And Entity Information	'	'
Entity Registrant Name	'KINGSTONE COMPANIES, INC.	'
Entity Central Index Key	'0000033992	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
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	'	7,294,917
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
Assets	'	'
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $4,829,265 at June 30, 2014 and $2,425,261 at December 31, 2013)	$4,621,872	$2,399,482
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $40,295,663 at June 30, 2014 and $28,079,902 at December 31, 2013)	41,595,511	28,436,022
Equity securities, available-for-sale, at fair value (cost of $8,823,489 at June 30, 2014 and $6,690,338 at December 31, 2013)	9,402,811	6,796,673
Total investments	55,620,194	37,632,177
Cash and cash equivalents	6,824,249	19,922,506
Premiums receivable, net of provision for uncollectible amounts	9,249,702	7,590,074
Receivables - reinsurance contracts	1,068,551	974,989
Reinsurance receivables, net of provision for uncollectible amounts	44,423,447	37,560,825
Deferred policy acquisition costs	7,996,102	6,860,263
Intangible assets, net	2,471,387	2,709,244
Property and equipment, net of accumulated depreciation	2,443,790	2,038,755
Other assets	1,177,383	1,494,989
Total assets	131,274,805	116,783,822
Liabilities	'	'
Loss and loss adjustment expense reserves	39,704,288	34,503,229
Unearned premiums	37,202,073	32,335,614
Advance premiums	1,280,738	776,099
Reinsurance balances payable	3,881,409	2,566,729
Deferred ceding commission revenue	7,774,715	6,984,166
Accounts payable, accrued expenses and other liabilities	2,557,243	3,215,487
Income taxes payable	185,543	'
Deferred income taxes	937,359	693,087
Total liabilities	93,523,368	81,074,411
Commitments and Contingencies	'	'
Stockholders' Equity	'	'
Preferred stock, $.01 par value; authorized 2,500,000 shares	0	0
Common stock, $.01 par value; authorized 20,000,000 shares; issued 8,213,826 shares at June 30, 2014 and 8,186,031 shares at December 31, 2014 ; outstanding 7,290,868 shares at June 30, 2014 and 7,266,573 shares at December 31, 2013	82,138	81,860
Capital in excess of par	32,723,291	32,692,568
Accumulated other comprehensive income	1,240,251	305,219
Retained earnings	5,286,405	4,187,209
Total	39,332,085	37,266,856
Treasury stock, at cost, 922,958 shares at June 30, 2014 and 919,458 shares at December 31, 2013	-1,580,648	-1,557,445
Total stockholders' equity	37,751,437	35,709,411
Total liabilities and stockholders' equity	$131,274,805	$116,783,822

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Condensed Consolidated Balance Sheets Parenthetical	'	'
Fixed-maturity securities, held-to-maturity, fair value	$4,829,265	$2,425,261
Fixed-maturity securities, available-for-sale, amortized cost	40,295,663	28,079,902
Equity securities, available-for-sale, cost	$8,823,489	$6,690,338
Stockholders' Equity	'	'
Common stock, par value	$0.01	$0.01
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued shares	8,213,826	8,186,031
Common stock, outstanding shares	7,290,868	7,266,573
Preferred stock, par value	$0.01	$0.01
Preferred stock, authorized shares	2,500,000	2,500,000
Treasury stock, Shares	922,958	919,458

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenues	'	'	'	'
Net premiums earned	$6,429,373	$4,676,282	$12,355,684	$9,299,497
Ceding commission revenue	3,706,049	2,334,431	7,087,332	4,628,142
Net investment income	451,915	275,031	830,703	558,318
Net realized gains on sales of investments	134,602	249,893	322,950	355,018
Other income	250,908	243,825	478,465	457,815
Total revenues	10,972,847	7,779,462	21,075,134	15,298,790
Expenses	'	'	'	'
Loss and loss adjustment expenses	3,007,939	3,241,797	7,332,893	5,711,438
Commission expense	2,903,792	2,079,084	5,486,300	4,194,904
Other underwriting expenses	2,529,075	1,931,611	4,810,824	4,144,956
Other operating expenses	338,379	227,833	588,414	471,143
Depreciation and amortization	209,935	153,985	393,055	306,971
Interest expense	0	17,890	0	39,105
Total expenses	8,989,120	7,652,200	18,611,486	14,868,517
Income from operations before taxes	1,983,727	127,262	2,463,648	430,273
Income tax expense	629,225	59,161	782,013	171,164
Net income	1,354,502	68,101	1,681,635	259,109
Gross change in unrealized gains (losses) on available-for-sale-securities	736,319	-1,260,607	1,416,715	-814,864
Income tax (expense) benefit related to items of other comprehensive income (loss)	-250,348	428,607	-481,683	277,054
Comprehensive income (loss)	$1,840,473	($763,899)	$2,616,667	($278,701)
Earnings per common share:	'	'	'	'
Basic	$0.19	$0.02	$0.23	$0.07
Diluted	$0.18	$0.02	$0.23	$0.07
Weighted average common shares outstanding	'	'	'	'
Basic	7,287,935	3,827,712	7,277,313	3,834,269
Diluted	7,358,280	3,906,432	7,352,609	3,911,650
Dividends declared and paid per common share	$0.04	$0.04	$0.08	$0.08

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, 2013	'	$81,860	$32,692,568	$305,219	$4,187,209	($1,557,445)	$35,709,411
Beginning Balance, Shares at Dec. 31, 2013	'	8,186,031	'	'	'	919,458	'
Stock-based compensation	'	'	26,783	'	'	'	26,783
Shares deducted from exercise of stock options for payment of withholding taxes	'	-93	-66,002	'	'	'	-66,095
Shares deducted from exercise of stock options for payment of withholding taxes, shares	'	-9,309	'	'	'	'	'
Excess tax benefit from exercise of stock options	'	'	70,313	'	'	'	70,313
Exercise of stock options, Amount	'	371	-371	'	'	'	'
Exercise of stock options, Shares	'	37,104	'	'	'	'	'
Acquisition of treasury stock, Amount	'	'	'	'	'	-23,203	-23,203
Acquisition of treasury stock, Shares	'	'	'	'	'	3,500	'
Dividends	'	'	'	'	-582,439	'	-582,439
Net income	'	'	'	'	1,681,635	'	1,681,635
Change in unrealized gains on available-for-sale securities, net of tax	'	'	'	935,032	'	'	935,032
Ending Balance, Amount at Jun. 30, 2014	'	$82,138	$32,723,291	$1,240,251	$5,286,405	($1,580,648)	$37,751,437
Ending Balance, Shares at Jun. 30, 2014	'	8,213,826	'	'	'	922,958	'

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows provided by operating activities:	'	'
Net income	$1,681,635	$259,109
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Net realized gains on sale of investments	-322,950	-355,018
Depreciation and amortization	393,055	306,971
Amortization of bond premium, net	100,702	89,558
Stock-based compensation	26,783	12,938
Excess tax benefit from exercise of stock options	-70,313	0
Deferred income tax expense	-237,411	-228,734
(Increase) decrease in operating assets:	'	'
Premiums receivable, net	-1,659,628	-600,185
Receivables - reinsurance contracts	-93,562	0
Reinsurance receivables, net	-6,862,622	4,369,750
Deferred policy acquisition costs	-1,135,839	-636,374
Other assets	299,447	686,387
(Increase) decrease in operating liabilities:	'	'
Loss and loss adjustment expense reserves	5,201,059	-2,128,064
Unearned premiums	4,866,459	3,423,563
Advance premiums	504,639	231,050
Reinsurance balances payable	1,314,680	3,517,529
Advance payments from catastrophe reinsurers	0	-7,358,391
Deferred ceding commission revenue	790,549	587,730
Accounts payable, accrued expenses and other liabilities	-402,388	-466,608
Net cash flows provided by operating activities	4,394,295	1,711,211
Cash flows (used in) provided by investing activities:	'	'
Purchase - fixed-maturity securities held-to-maturity	-2,215,540	0
Purchase - fixed-maturity securities available-for-sale	-15,837,626	-1,649,667
Purchase - equity securities available-for-sale	-5,356,992	-4,298,630
Sale or maturity - fixed-maturity securities available-for-sale	3,643,499	4,557,745
Sale - equity securities available-for-sale	3,417,605	2,727,084
Other investing activities	-542,074	-145,881
Net cash flows (used in) provided by investing activities	-16,891,128	1,190,651
Cash flows used in financing activities:	'	'
Proceeds from line of credit	0	230,000
Principal payments on line of credit	0	-550,000
Withholding taxes paid on net exercise of stock options	-66,095	0
Excess tax benefit from exercise of stock options	70,313	0
Purchase of treasury stock	-23,203	-129,900
Dividends paid	-582,439	-307,274
Net cash flows used in financing activities	-601,424	-757,174
(Decrease) increase in cash and cash equivalents	-13,098,257	2,144,688
Cash and cash equivalents, beginning of period	19,922,506	2,240,012
Cash and cash equivalents, end of period	6,824,249	4,384,700
Supplemental disclosures of cash flow information:	'	'
Cash paid for income taxes	463,400	564,000
Cash paid for interest	0	39,087
Supplemental schedule of non-cash investing and financing activities:	'	'
Shares deducted from exercise of stock options for payment of withholding taxes	$66,095	$0

1_Nature_of_Business_and_Basis

1. Nature of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
1. Nature of Business and Basis of Presentation	'
	Note 1 - Nature of Business and Basis of Presentation
	Kingstone Companies, Inc. (referred to herein as "Kingstone" or the “Company”), through its wholly owned subsidiary Kingstone Insurance Company (“KICO”), underwrites property and casualty insurance to small businesses and individuals exclusively through independent agents and brokers. KICO is a licensed insurance company in the State of New York. KICO has also obtained a license to write insurance in the Commonwealth of Pennsylvania; however, KICO has only nominally commenced writing business in Pennsylvania. Kingstone, through its wholly owned subsidiary, Payments, Inc., a licensed premium finance company in the State of New York, receives fees for placing contracts with a third party licensed premium finance company (see Note 12 - Subsequent Events).
	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, 2013 and notes thereto included in the Company’s Annual Report on Form 10-K filed on March 31, 2014. 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 six months ended June 30, 2014 may not be indicative of the results that may be expected for the year ending December 31, 2014.

2_Accounting_Policies

2. Accounting Policies	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
2. Accounting Policies	'
	Note 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: (1) KICO and its wholly owned subsidiaries, CMIC Properties, Inc. (“Properties”) and 15 Joys Lane, LLC (“15 Joys Lane”), which together own the land and building from which KICO operates, and (2) Payments Inc. All significant inter-company transactions have been eliminated in consolidation.
	Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2016. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements.
	The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

3_Investments

3. Investments	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
3. Investments	'
	Note 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 June 30, 2014 and December 31, 2013 are summarized as follows:
		30-Jun-14
								Gross Unrealized Losses									Net
		Cost or			Gross Unrealized			Less than 12			More than 12			Fair			Unrealized Gains/
		Amortized
	Category	Cost			Gains			Months			Months			Value			(Losses)
	Fixed-Maturity Securities:
	Political subdivisions of States,
	Territories and Possessions	$	12,413,225		$	348,720		$	(18,529	)	$	(15,108	)	$	12,728,308		$	315,083
	Corporate and other bonds
	Industrial and miscellaneous		27,882,438			1,021,295			(11,736	)		(24,794	)		28,867,203			984,765
	Total fixed-maturity securities		40,295,663			1,370,015			(30,265	)		(39,902	)		41,595,511			1,299,848
	Equity Securities:
	Preferred stocks		3,340,238			28,311			-			(75,147	)		3,293,402			(46,836	)
	Common stocks		5,483,251			643,486			(17,328	)		-			6,109,409			626,158
	Total equity securities		8,823,489			671,797			(17,328	)		(75,147	)		9,402,811			579,322
	Total	$	49,119,152		$	2,041,812		$	(47,593	)	$	(115,049	)	$	50,998,322		$	1,879,170
		31-Dec-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)
	Fixed-Maturity Securities:
	Political subdivisions of States,
	Territories and Possessions	$	7,000,222		$	162,616		$	(49,491	)	$	(45,140	)	$	7,068,207		$	67,985
	Corporate and other bonds
	Industrial and miscellaneous		21,079,680			569,139			(179,810	)		(101,194	)		21,367,815			288,135
	Total fixed-maturity securities		28,079,902			731,755			(229,301	)		(146,334	)		28,436,022			356,120
	Equity Securities:
	Preferred stocks		2,899,301			2,503			(251,525	)		(62,551	)		2,587,728			(311,573	)
	Common stocks		3,791,037			470,606			(38,785	)		(13,913	)		4,208,945			417,908
	Total equity securities		6,690,338			473,109			(290,310	)		(76,464	)		6,796,673			106,335
	Total	$	34,770,240		$	1,204,864		$	(519,611	)	$	(222,798	)	$	35,232,695		$	462,455
	A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of June 30, 2014 and December 31, 2013 is shown below:
		30-Jun-14						31-Dec-13
		Amortized						Amortized
	Remaining Time to Maturity	Cost			Fair Value			Cost			Fair Value
	Less than one year	$	983,007		$	993,669		$	758,281		$	768,954
	One to five years		8,305,030			8,763,953			9,025,386			9,466,973
	Five to ten years		24,537,824			25,232,851			14,070,003			14,114,271
	More than 10 years		6,469,802			6,605,038			4,226,232			4,085,824
	Total	$	40,295,663		$	41,595,511		$	28,079,902		$	28,436,022
	The actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without penalties.
	Held-to-Maturity Securities
	The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of June 30, 2014 and December 31, 2013 are summarized as follows:
		30-Jun-14
																	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	$	606,336		$	112,010		$	-		$	-		$	718,346		$	112,010
	Political subdivisions of States,
	Territories and Possessions		1,411,268			28,847			(12,999	)		-			1,427,116			15,848
	Corporate and other bonds
	Industrial and miscellaneous		2,604,268			87,657			(8,122	)		-			2,683,803			79,535
	Total	$	4,621,872		$	228,514		$	(21,121	)	$	-		$	4,829,265		$	207,393
		31-Dec-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)
U.S. Treasury securities	$	606,138		$	46,915		$	-		$	-		$	653,053		$	46,915
Political subdivisions of States,
Territories and Possessions		208,697			-			(25,359	)		-			183,338			(25,359	)
Corporate and other bonds
Industrial and miscellaneous		1,584,647			4,223			-			-			1,588,870			4,223
Total	$	2,399,482		$	51,138		$	(25,359	)	$	-		$	2,425,261		$	25,779
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 June 30, 2014 and December 31, 2013 is shown below:
	30-Jun-14						31-Dec-13
	Amortized						Amortized
Remaining Time to Maturity	Cost			Fair Value			Cost			Fair Value
Less than one year	$	-		$	-		$	-		$	-
One to five years		-			-			-			-
Five to ten years		2,815,030			2,881,566			1,793,344			1,772,208
More than 10 years		1,806,842			1,947,699			606,138			653,053
Total	$	4,621,872		$	4,829,265		$	2,399,482		$	2,425,261
Investment Income
Major categories of the Company’s net investment income are summarized as follows:
	Three months ended						Six months ended
	June 30,						June 30,
	2014			2013			2014			2013
Income:
Fixed-maturity securities	$	406,137		$	234,977		$	749,055		$	495,012
Equity securities		141,705			93,389			256,218			179,844
Cash and cash equivalents		2,821			-			23,440			29
Other		594			11,817			594			11,817
Total		551,257			340,183			1,029,307			686,702
Expenses:
Investment expenses		99,342			65,152			198,604			128,384
Net investment income	$	451,915		$	275,031		$	830,703		$	558,318
Proceeds from the sale and maturity of fixed-maturity securities were $3,643,499 and $4,557,745 for the six months ended June 30, 2014 and 2013, respectively.
Proceeds from the sale of equity securities were $3,417,605 and $2,727,084 for the six months ended June 30, 2014 and 2013, respectively.
The Company’s net realized gains on investments are summarized as follows:
	Three months ended						Six months ended
	June 30,						June 30,
	2014			2013			2014			2013
Fixed-maturity securities:
Gross realized gains	$	68,223		$	104,241		$	157,479		$	181,217
Gross realized losses		(1,894	)		(56,471	)		(28,293	)		(56,471	)
		66,329			47,770			129,186			124,746
Equity securities:
Gross realized gains		81,192			218,204			217,251			289,989
Gross realized losses		(12,919	)		(16,081	)		(23,487	)		(59,717	)
		68,273			202,123			193,764			230,272
Net realized gains	$	134,602		$	249,893		$	322,950		$	355,018
Impairment Review
Impairment of investment securities results in a charge to operations when a market decline to below cost is deemed to be other-than-temporary. The Company regularly reviews its fixed-maturity securities and equity securities portfolios to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of investments. In evaluating potential impairment, GAAP specifies (i) if the Company does not have the intent to sell a debt security prior to recovery and (ii) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss.  When the Company does not intend to sell the security and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment (“OTTI”) of a debt security in earnings and the remaining portion in other comprehensive income.  The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections.  For held-to-maturity debt securities, the amount of OTTI recorded in other comprehensive income for the noncredit portion of a previous OTTI is amortized prospectively over the remaining life of the security on the basis of timing of future estimated cash flows of the security.
OTTI losses are recorded in the 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 June 30, 2014, there were 23 securities that accounted for the gross unrealized loss. The Company determined that none of the unrealized losses were deemed to be OTTI for its portfolio of fixed-maturity securities and equity securities for the six months ended June 30, 2014 and 2013. Significant factors influencing the Company’s determination that unrealized losses were temporary included the magnitude of the unrealized losses in relation to each security’s cost, the nature of the investment and management’s intent and ability to retain the investment for a period of time sufficient to allow for an anticipated recovery of fair value to the Company’s cost basis.
The Company held securities with unrealized losses representing declines that were considered temporary at June 30, 2014 and December 31, 2013 as follows:
	30-Jun-14
	Less than 12 months									12 months or more									Total
							No. of									No. of			Aggregate
	Fair			Unrealized			Positions			Fair			Unrealized			Positions			Fair		Unrealized
Category	Value			Losses			Held			Value			Losses			Held			Value		Losses
Fixed-Maturity Securities:
Political subdivisions of
States, Territories and
Possessions	$	1,479,948		$	(18,529	)		5		$	534,874		$	(15,108	)		2		$	2,014,822	$	(33,637	)
Corporate and other
bonds industrial and
miscellaneous		2,027,606			(11,736	)		5			778,210			(24,794	)		3			2,805,816		(36,530	)
Total fixed-maturity
securities	$	3,507,554		$	(30,265	)		10		$	1,313,084		$	(39,902	)		5		$	4,820,638	$	(70,167	)
Equity Securities:
Preferred stocks	$	-		$	-			-		$	1,635,873		$	(75,147	)		6		$	1,635,873	$	(75,147	)
Common stocks		621,830			(17,328	)		2			-			-			-			621,830		(17,328	)
Total equity securities	$	621,830		$	(17,328	)		2		$	1,635,873		$	(75,147	)		6		$	2,257,703	$	(92,475	)
Total	$	4,129,384		$	(47,593	)		12		$	2,948,957		$	(115,049	)		11		$	7,078,341	$	(162,642	)
	31-Dec-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
Fixed-Maturity Securities:
Political subdivisions of
States, Territories and
Possessions	$	2,015,437		$	(49,491	)		6		$	415,866		$	(45,140	)		2		$	2,431,303	$	(94,631	)
Corporate and other
bonds industrial and
miscellaneous		6,447,605			(179,810	)		24			1,430,377			(101,194	)		5			7,877,982		(281,004	)
Total fixed-maturity
securities	$	8,463,042		$	(229,301	)		30		$	1,846,243		$	(146,334	)		7		$	10,309,285	$	(375,635	)
Equity Securities:
Preferred stocks	$	1,835,958		$	(251,525	)		8		$	444,100		$	(62,551	)		2		$	2,280,058	$	(314,076	)
Common stocks		879,525			(38,785	)		4			145,625			(13,913	)		1			1,025,150		(52,698	)
Total equity securities	$	2,715,483		$	(290,310	)		12		$	589,725		$	(76,464	)		3		$	3,305,208	$	(366,774	)
Total	$	11,178,525		$	(519,611	)		42		$	2,435,968		$	(222,798	)		10		$	13,614,493	$	(742,409	)

4_Fair_Value_Measurements

4. Fair Value Measurements	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
4. Fair Value Measurements	'
	Note 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 June 30, 2014 and December 31, 2013 as follows:
		30-Jun-14
	($ in thousands)	Level 1		Level 2		Level 3		Total
	Fixed-maturity securities available for sale
	Political subdivisions of
	States, Territories and
	Possessions	$	-	$	12,728	$	-	$	12,728
	Corporate and other
	bonds industrial and
	miscellaneous		21,219		7,648		-		28,867
	Total fixed maturities		21,219		20,376		-		41,595
	Equity securities		9,403		-		-		9,403
	Total investments	$	30,622	$	20,376	$	-	$	50,998
		31-Dec-13
	($ in thousands)	Level 1		Level 2		Level 3		Total
	Fixed-maturity securities available for sale
	Political subdivisions of
	States, Territories and
	Possessions	$	-	$	7,068	$	-	$	7,068
	Corporate and other
	bonds industrial and
	miscellaneous		20,731		637		-		21,368
	Total fixed maturities		20,731		7,705		-		28,436
	Equity securities		6,797		-		-		6,797
	Total investments	$	27,528	$	7,705	$	-	$	35,233

5_Fair_Value_of_Financial_Inst

5. Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
5. Fair Value of Financial Instruments	'
	Note 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 and 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.
	The estimated fair values of the Company’s financial instruments are as follows:
		30-Jun-14				31-Dec-13
		Carrying		Fair Value		Carrying		Fair Value
		Value				Value
	Fixed-maturity securities held-to-maturity	$	4,621,872	$	4,829,265	$	2,399,482	$	2,425,261
	Cash and cash equivalents		6,824,249		6,824,249		19,922,506		19,922,506
	Premiums receivable		9,249,702		9,249,702		7,590,074		7,590,074
	Receivables - reinsurance contracts		1,068,551		1,068,551		974,989		974,989
	Reinsurance receivables		44,423,447		44,423,447		37,560,825		37,560,825
	Real estate, net of accumulated depreciation		1,767,459		1,816,122		1,777,942		1,816,122
	Reinsurance balances payable		3,881,409		3,881,409		2,566,729		2,566,729

6_Property_and_Casualty_Insura

6. Property and Casualty Insurance Activity	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
6. Property and Casualty Insurance Activity	'
	Note 6 – Property and Casualty Insurance Activity
	Premiums Earned
	Premiums written, ceded and earned are as follows:
			Direct			Assumed			Ceded			Net
	Six months ended June 30, 2014
	Premiums written		$	36,597,945		$	16,302		$	(21,527,803	)	$	15,086,444
	Change in unearned premiums			(4,872,810	)		6,351			2,135,699			(2,730,760	)
	Premiums earned		$	31,725,135		$	22,653		$	(19,392,104	)	$	12,355,684
	Six months ended June 30, 2013
	Premiums written		$	28,725,957		$	20,047		$	(17,781,254	)	$	10,964,750
	Change in unearned premiums			(3,452,133	)		28,569			1,758,311			(1,665,253	)
	Premiums earned		$	25,273,824		$	48,616		$	(16,022,943	)	$	9,299,497
	Three months ended June 30, 2014
	Premiums written		$	20,250,500		$	8,655		$	(11,757,974	)	$	8,501,181
	Change in unearned premiums			(3,739,282	)		3,697			1,663,777			(2,071,808	)
	Premiums earned		$	16,511,218		$	12,352		$	(10,094,197	)	$	6,429,373
	Three months ended June 30, 2013
	Premiums written		$	15,881,121		$	10,232		$	(9,897,589	)	$	5,993,764
	Change in unearned premiums			(2,873,166	)		1,128			1,554,556			(1,317,482	)
	Premiums earned		$	13,007,955		$	11,360		$	(8,343,033	)	$	4,676,282
	Premium receipts in advance of the policy effective date are recorded as advance premiums. The balance of advance premiums as of June 30, 2014 and December 31, 2013 was approximately $1,281,000 and $776,000, respectively.
	Loss and Loss Adjustment Expense Reserves
	The following table provides a reconciliation of the beginning and ending balances for unpaid losses and loss adjustment expense (“LAE”) reserves:
			Six months ended
			June 30,
			2014			2013
	Balance at beginning of period		$	34,503,229		$	30,485,532
	Less reinsurance recoverables			(17,363,975	)		(18,419,694	)
	Net balance, beginning of period			17,139,254			12,065,838
	Incurred related to:
	Current year			6,975,731			5,175,229
	Prior years			357,162			536,209
	Total incurred			7,332,893			5,711,438
	Paid related to:
	Current year			2,691,199			1,416,181
	Prior years			3,132,536			2,675,112
	Total paid			5,823,735			4,091,293
	Net balance at end of period			18,648,412			13,685,983
	Add reinsurance recoverables			21,055,876			14,671,485
	Balance at end of period		$	39,704,288		$	28,357,468
	Incurred losses and LAE are net of reinsurance recoveries under reinsurance contracts of $11,654,279 and $8,275,782 for the six months ended June 30, 2014 and 2013, respectively.
	Prior year incurred loss and LAE development is based upon estimates by line of business and accident year. The Company’s management continually monitors claims activity to assess the appropriateness of carried case and incurred but not reported (“IBNR”) reserves, giving consideration to Company and industry trends.
	Loss and 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. Several actuarial reserving methodologies are used to estimate required loss reserves. The process produces carried reserves set by management based upon the actuaries’ best estimate and is the result of numerous best estimates made by line of business, accident year, and loss and loss adjustment expense. The amount of loss and loss adjustment expense reserves for reported claims (“case reserve”) is based primarily upon a case-by-case evaluation of coverage, liability, injury severity, and any other information considered pertinent to estimating the exposure presented by the claim. The amounts of loss and loss adjustment expense reserves for unreported claims and development on known claims (incurred but not reported reserves) are determined using historical information by line of insurance as adjusted to current conditions. Since this process produces loss reserves set by management based upon the actuaries’ best estimate, there is no explicit or implicit provision for uncertainty in the carried loss reserves.
	Due to the inherent uncertainty associated with the reserving process, the ultimate liability may differ, perhaps substantially, from the original estimate. Such estimates are regularly reviewed and updated and any resulting adjustments are included in the current year’s results. Reserves are closely monitored and are recomputed periodically using the most recent information on reported claims and a variety of statistical techniques. On at least a quarterly basis, the Company reviews by line of business existing reserves, new claims, changes to existing case reserves and paid losses with respect to the current and prior years. Several methods are used, varying by product line and accident year, in order to select the estimated year-end loss reserves. These methods include the following:
	Paid Loss Development – historical patterns of paid loss development are used to project future paid loss emergence in order to estimate required reserves.
	Incurred Loss Development – historical patterns of incurred loss development, reflecting both paid losses and changes in case reserves, are used to project future incurred loss emergence in order to estimate required reserves.
	Paid Bornhuetter-Ferguson (“BF”) – an estimated loss ratio for a particular accident year is determined, and is weighted against the portion of the accident year claims that have been paid, based on historical paid loss development patterns. The estimate of required reserves assumes that the remaining unpaid portion of a particular accident year will pay out at a rate consistent with the estimated loss ratio for that year. This method can be useful for situations where an unusually high or low amount of paid losses exists at the early stages of the claims development process.
	Incurred Bornhuetter-Ferguson (“BF”) - an estimated loss ratio for a particular accident year is determined, and is weighted against the portion of the accident year claims that have been reported, based on historical incurred loss development patterns. The estimate of required reserves assumes that the remaining unreported portion of a particular accident year will pay out at a rate consistent with the estimated loss ratio for that year. This method can be useful for situations where an unusually high or low amount of reported losses exists at the early stages of the claims development process.
	Management’s best estimate of required reserves is generally based on an average of the methods above, with appropriate weighting of the various methods based on the line of business and accident year being projected. In some cases, additional methods or historical data from industry sources are employed to supplement the projections derived from the methods listed above.
	Two key assumptions that materially affect the estimate of loss reserves are the loss ratio estimate for the current accident year used in the BF methods described above, and the loss development factor selections used in the loss development methods described above. The loss ratio estimates used in the BF methods are selected after reviewing historical accident year loss ratios adjusted for rate changes, trend, and mix of business.
	The Company is not aware of any claims trends that have emerged or that would cause future adverse development that have not already been considered in existing case reserves and in its current loss development factors.
	In New York State, lawsuits for negligence are subject to certain limitations and must be commenced within three years from the date of the accident or are otherwise barred. Accordingly, the Company’s exposure to ‘pure’ IBNR for accident years 2010 and prior is limited although there remains the possibility of adverse development on reported claims (‘case development’ IBNR).
	The Company was previously a one-third participant in a pool arrangement. Effective November 1, 1997, the Company withdrew from its participation in the pool arrangement. Accordingly, the Company will only be participating in losses and allocated loss adjustment expenses that occurred prior to that date.
	Reinsurance
	The Company’s reinsurance treaties in effect for the six months ended June 30, 2014 and 2013 for both its Personal Lines business, which primarily consists of homeowners’ policies, and Commercial Lines business were covered under the July 1, 2012/June 30, 2013 and July 1, 2013/June 30, 2014 treaty years. The Company’s personal lines quota share treaty that covered the July 1, 2013/June 30, 2014 treaty year is a two year treaty expiring on June 30, 2015. Effective as of July 1, 2014, the Company had the option to increase the quota share percentage from 75% to a maximum of 85% or decrease the quota share percentage from 75% to a minimum of 55% by giving no less than 30 days advance notice. On May 12, 2014, the Company notified the personal lines reinsurers of its election to reduce the ceding percentage in the personal lines quota share treaty from 75% to 55% effective July 1, 2014. In addition to the change in the personal lines quota share treaty discussed above, the Company entered into new annual treaties with different terms effective July 1, 2014. The Company’s treaties for the July 1, 2012/June 30, 2013, July 1, 2013/ June 30, 2014 and July 1, 2014/June 30, 2015 treaty years provide for the following material terms:
			Treaty Year
			1-Jul-14		1-Jul-13	1-Jul-12
			to		to	to
	Line of Busines		30-Jun-15		30-Jun-14	30-Jun-13
	Personal Lines:
	Homeowners, dwelling fire and canine legal liability
	Quota share treaty:
Percent ceded		55%		75%	75%
Risk retained		$        360,000		$       300,000	$       250,000
Losses per occurrence subject to quota share reinsurance coverage		$        800,000		$    1,200,000	$    1,000,000
Excess of loss coverage in excess of quota share coverage		$     3,200,000		$    1,700,000	$    1,900,000
		in excess of		in excess of	in excess of
		$        800,000		$    1,200,000	$    1,000,000
Total reinsurance coverage per occurrence		$     3,640,000		$    2,600,000	$    2,650,000
Losses per occurrence subject to reinsurance coverage		$     4,000,000		$    2,900,000	$    2,900,000
Expiration date		30-Jun-15		30-Jun-15	30-Jun-13
Personal Umbrella
Quota share treaty:
Percent ceded - first million dollars of coverage		90%		90%	90%
Percent ceded - excess of one million dollars of coverage		100%		100%	100%
Total reinsurance coverage per occurrence		$     2,900,000		$    1,900,000	$    1,900,000
Losses per occurrence subject to quota share reinsurance coverage		$     3,000,000		$    2,000,000	$    2,000,000
Expiration date		30-Jun-15		30-Jun-14	30-Jun-13
Commercial Lines:
General liability commercial policies, except for commercial auto
Quota share treaty:
Percent ceded (terminated effective July 1, 2014)		None		25%	40%
Risk retained		$        400,000		$       300,000	$       300,000
Losses per occurrence subject to quota share reinsurance coverage		None		$       400,000	$       500,000
Excess of loss coverage in excess of quota share coverage		$     3,600,000		$    2,500,000	$    2,400,000
		in excess of		in excess of	in excess of
		$        400,000		$       400,000	$       500,000
Total reinsurance coverage per occurrence		$     3,600,000		$    2,600,000	$    2,600,000
Losses per occurrence subject to reinsurance coverage		$     4,000,000		$    2,900,000	$    2,900,000
Commercial Auto:
Excess of loss coverage in excess of risk retained		$     1,700,000		$    1,700,000	$    1,750,000
		in excess of		in excess of	in excess of
		$        300,000		$       300,000	$       250,000
Catastrophe Reinsurance:
Initial loss subject to personal lines quota share treaty		$     4,000,000		$    4,000,000	$    3,000,000
Risk retained per catastrophe occurrence (1)		$     1,800,000		$    1,000,000	$       750,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)		$ 137,000,000		$  86,000,000	$  70,000,000
-1	Plus losses in excess of catastrophe coverage.
	-2	Effective July 1, 2014, the Company’s catastrophe treaty includes also covers losses caused by severe winter weather during any consecutive 28 day period.
(3) Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.
The single maximum risks per occurrence to which the Company is subject under the treaties that expired on June 30, 2014 and the new treaties effective July 1, 2014 are as follows:
		July 1, 2014 - June 30, 2015			July 1, 2013 - June 30, 2014
Treaty		Extent of Loss		Risk	Extent of Loss		Risk
				Retained			Retained
Personal Lines		Initial $800,000		$360,000	Initial $1,200,000		$300,000
		$800,000 - $4,000,000		None(1)	$1,200,000 - $2,900,000		None(1)
		Over $4,000,000		100%	Over $2,900,000		100%
Personal Umbrella		Initial $1,000,000		$100,000	Initial $1,000,000		$100,000
		$1,000,000 - $3,000,000		None(1)	$1,000,000 - $2,000,000		None(1)
		Over $3,000,000		100%	Over $2,000,000		100%
Commercial Lines		Initial $400,000		$400,000	Initial $400,000		$300,000
		$400,000 - $4,000,000		None(1)	$400,000 - $2,900,000		None(1)
		Over $4,000,000		100%	Over $2,900,000		100%
Commercial Auto		Initial $300,000		$300,000	Initial $300,000		$300,000
		$300,000 - $2,000,000		None(1)	$300,000 - $2,000,000		None(1)
		Over $2,000,000		100%	Over $2,000,000		100%
Catastrophe (2)		Initial $4,000,000		$1,800,000	Initial $4,000,000		$1,000,000
		$4,000,000 - $141,000,000		None	$4,000,000 - $90,000,000		None
		Over $141,000,000		100%	Over $90,000,000		100%
	-1	Covered by excess of loss treaties.
	-2	Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.
The Company’s reinsurance program is structured to enable the Company to significantly grow its premium volume while maintaining regulatory capital and other financial ratios generally within or below the expected ranges used for regulatory oversight purposes. The reinsurance program also provides income as a result of ceding commissions earned pursuant to the quota share reinsurance contracts. The Company’s participation in reinsurance arrangements does not relieve the Company from its obligations to policyholders.
Ceding Commission Revenue
The Company earns ceding commission revenue under its quota share reinsurance agreements based on: (i) a fixed provisional commission rate at which provisional ceding commissions are earned, and (ii) a sliding scale of commission rates and ultimate treaty year loss ratios on the policies reinsured under each of these agreements based upon which contingent ceding commissions are earned. The sliding scale includes minimum and maximum commission rates in relation to specified ultimate loss ratios. The commission rate and contingent ceding commissions earned increases when the estimated ultimate loss ratio decreases and, conversely, the commission rate and contingent ceding commissions earned decreases when the estimated ultimate loss ratio increases.
The Company’s estimated ultimate treaty year loss ratios for treaties in effect as of June 30, 2014 are attributable to contracts for the July 1, 2013/June 30, 2014 treaty year (“2013/2014 Treaties”). The Company’s estimated ultimate treaty year loss ratios for treaties in effect as of June 30, 2013 are attributable to contracts for the July 1, 2012/June 30, 2013 treaty year (“2012/2013 Treaties”).
Treaties in effect as of June 30, 2014
The Company’s estimated ultimate loss ratios (“Loss Ratios”) for the period July 1, 2013 through June 30, 2014, which are attributable to contracts for the 2013/2014 Treaties, remain lower than the contractual Loss Ratios at which the provisional ceding commissions are earned. As a result of severe winter weather during January and February of 2014, the Loss Ratios attributable to the personal lines treaty as of June 30, 2014 were greater than the Loss Ratios as of December 31, 2013. Accordingly, for the six months ended June 30, 2014, the Company’s contingent ceding commission earned was reduced as a result of the increase in estimated Loss Ratios for the 2013/2014 Treaties.
Treaties in effect as of June 30, 2013
The Company’s estimated Loss Ratios attributable to the 2012/2013 Treaties were greater than the contractual Loss Ratios at which the provisional ceding commissions are earned. Accordingly, for the six months and three months ended June 30, 2013, the Company recorded negative contingent ceding commissions earned with respect to the 2012/2013 Treaties.
In addition to the treaties that were in effect as of June 30, 2014 and 2013, the estimated ultimate loss ratios from prior years’ treaties are subject to change as loss reserves from those periods increase or decrease, resulting in an increase or decrease in the commission rate and contingent ceding commissions earned.
Ceding commissions earned consists of the following:
		Three months ended						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
Provisional ceding commissions earned		$	3,629,871		$	2,502,845		$	7,006,747		$	4,895,709
Contingent ceding commissions earned			76,178			(168,414	)		80,585			(267,567	)
		$	3,706,049		$	2,334,431		$	7,087,332		$	4,628,142
Provisional ceding commissions are settled monthly. Balances due from reinsurers for contingent ceding commissions on quota share treaties are settled annually based on the loss ratio of each treaty year that ends on June 30. As discussed above, for the six months ended June 30, 2013, the Company recorded negative contingent ceding commissions earned with respect to the 2012/2013 Treaties, which resulted in ceding commissions payable to reinsurers. There was no net contingent ceding commissions payable to reinsurers as of June 30, 2014 and December 31, 2013.

7_Bank_Line_of_Credit

7. Bank Line of Credit	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
7. Bank Line of Credit	'
	Note 7 – Bank Line of Credit
	On December 27, 2011, Kingstone executed a Promissory Note pursuant to a line of credit (together, the “Trustco Agreement”) with Trustco Bank (“Lender”). Under the Trustco Agreement, Kingstone may receive advances from Lender not to exceed an unpaid principal balance of $500,000 (the “Credit Limit”). On January 25, 2013, the Credit Limit was increased to $600,000. Advances extended under the Trustco Agreement will bear interest at a floating rate based on the Lender’s prime rate, which was 3.75% at June 30, 2014.
	Interest only payments are due monthly. The principal balance is payable on demand, and must be reduced to zero for a minimum of thirty consecutive days during each year of the term of the Trustco Agreement. The line of credit is subject annual renewal at the discretion of the Lender. Lender may set off any depository accounts maintained by Kingstone that are held by Lender. Payment of amounts due pursuant to the Trustco Agreement is secured by all of Kingstone’s cash and deposit accounts, receivables, inventory and fixed assets, and is guaranteed by Kingstone’s subsidiary, Payments, Inc.
	The line of credit will be used for general corporate purposes.
	There were no outstanding balances under the bank line of credit as of June 30, 2014 and December 31, 2013. The weighted average interest rate on the amount outstanding during the six months ended June 30, 2014 and 2013 was 0% and 3.75%, respectively. There are no other fees in connection with this credit line. Interest expense on the line of credit for the six months ended June 30, 2014 and 2013 was approximately $-0- and $4,000, respectively.

8_Stockholders_Equity

8. Stockholders' Equity	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
8. Stockholders' Equity	'
	Note 8 – Stockholders’ Equity
	Dividend Declared
	Dividends declared and paid on Common Stock were $582,439 and $307,274 for the six months ended June 30, 2014 and 2013, respectively. Dividends declared and paid on Common Stock were $291,776 and $153,637 for the three months ended June 30, 2014 and 2013, respectively. The Company’s Board of Directors approved a quarterly dividend on August 12, 2014 of $.05 per share payable in cash on September 15, 2014 to stockholders of record as of August 29, 2014 (see Note 12).
	Stock Options
	Pursuant to the Company’s 2005 Equity Participation Plan (the “2005 Plan”), which provides for the issuance of incentive stock options, non-statutory stock options and restricted stock, a maximum of 700,000 shares of Common Stock are permitted to be issued pursuant to options granted and restricted stock issued. 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 six months ended June 30, 2014 and 2013 include stock-based compensation expense totaling approximately $27,000 and $13,000, respectively. The results of operations for the three months ended June 30, 2014 and 2013 include stock-based compensation expense totaling approximately $13,000 and $4,000, respectively. Stock-based compensation expense related to stock options is net of estimated forfeitures of 20% for the six months and three months ended June 30, 2014 and 21% for the six months and three months ended June 30, 2013. Such amounts have been included in the condensed consolidated statements of income and comprehensive income within other operating expenses.
	Stock-based compensation expense in 2014 and 2013 is the grant date estimated fair value of options amortized on a straight-line basis over the requisite service period for the entire portion of the award. No stock options were granted during the six months ended June 30, 2014 and 2013.
	A summary of option activity under the Company’s 2005 Plan for the six months ended June 30, 2014 is as follows:
	Stock Options	Number of			Weighted		Weighted		Aggregate
		Shares			Average		Average		Intrinsic
					Exercise Price		Remaining		Value
					per Share		Contractual
							Term
	Outstanding at January 1, 2014		321,365		$	3.36		2.26	$	1,257,936
	Granted		-		$	-		-	$	-
	Exercised		(58,865	)	$	2.45		-	$	248,179
	Forfeited		-		$	-		-	$	-
	Outstanding at June 30, 2014		262,500		$	3.56		2.04	$	816,650
	Vested and Exercisable at June 30, 2014		185,625		$	2.87		1.17	$	705,650
	The aggregate intrinsic value of options outstanding and options exercisable at June 30, 2014 is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s Common Stock for the options that had exercise prices that were lower than the $6.67 closing price of the Company’s Common Stock on June 30, 2014.
	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 58,865 options were exercised during the six months ended June 30, 2014. No options were exercised during the six months ended June 30, 2013.
	As of June 30, 2014, the fair value of unamortized compensation cost related to unvested stock option awards was approximately $45,000. Unamortized compensation cost as of June 30, 2014 is expected to be recognized over a remaining weighted-average vesting period of 1.32 years.

9_Income_Taxes

9. Income Taxes	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
9. Income Taxes	'
	Note 9 – Income Taxes
	Income taxes for the six months ended June 30, 2014 and 2013 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 six months ended June 30, 2014 and 2013 was 31.7% and 39.8%, 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:
			June 30,			December 31,
			2014			2013
	Deferred tax asset:
	Net operating loss carryovers (1)		$	255,192		$	246,476
	Claims reserve discount			484,601			445,384
	Unearned premium			1,220,379			1,000,372
	Deferred ceding commission revenue			2,643,403			2,374,616
	Other			-			17,087
	Total deferred tax assets			4,603,575			4,083,935
	Deferred tax liability:
	Investment in KICO (2)			1,169,000			1,169,000
	Deferred acquisition costs			2,718,674			2,332,489
	Intangibles			840,272			921,143
	Depreciation and amortization			166,731			197,223
	Net unrealized appreciation of securities - available for sale			634,963			157,167
	Other			11,294			-
	Total deferred tax liabilities			5,540,934			4,777,022
	Net deferred income tax liability		$	(937,359	)	$	(693,087	)
		-1	The deferred tax assets from net operating loss carryovers are as follows:
			June 30,			December 31,
	Type of NOL		2014			2013			Expiration
	State only (A)		$	508,135		$	459,989			31-Dec-34
	Valuation allowance			(269,943	)		(240,713	)
	State only, net of valuation allowance			238,192			219,276
	Amount subject to Annual Limitation, federal only (B)			17,000			27,200			31-Dec-19
	Total deferred tax asset from net operating loss carryovers		$	255,192		$	246,476
	(A) Kingstone generates operating losses for state purposes and has prior year net operating loss carryovers available. The state net operating loss carryover as of June 30, 2014 and December 31, 2013 was approximately $6,035,000 and $5,482,000, 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 2034.
	(B) The Company has an NOL of $50,000 that is subject to Internal Revenue Code Section 382, which places a limitation on the utilization of the federal net operating loss to approximately $10,000 per year (“Annual Limitation”) as a result of a greater than 50% ownership change of the Company in 1999. The losses subject to the Annual Limitation will be available for future years, expiring through December 31, 2019.
		-2	Deferred tax liability - investment in KICO
	On July 1, 2009, the Company completed the acquisition of 100% of the issued and outstanding common stock of KICO (formerly known as Commercial Mutual Insurance Company (“CMIC”)) pursuant to the conversion of CMIC from an advance premium cooperative to a stock property and casualty insurance company. Pursuant to the plan of conversion, the Company acquired a 100% equity interest in KICO, in consideration for the exchange of $3,750,000 principal amount of surplus notes of CMIC. In addition, the Company forgave all accrued and unpaid interest on the surplus notes as of the date of conversion. As of the date of acquisition, unpaid accrued interest on the surplus notes along with the accretion of the discount on the original purchase of the surplus notes totaled $2,921,319 (together “Untaxed Interest”). As of the date of acquisition, the deferred tax liability on the Untaxed Interest was $1,169,000. Under GAAP guidance for business combinations, a temporary difference with an indefinite life exists when the parent has a lower carrying value of its subsidiary for income tax purposes. The Company is required to maintain its deferred tax liability of $1,169,000 related to this temporary difference until the stock of KICO is sold, or the assets of KICO are sold or KICO and the parent are merged.
	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 six months ended June 30, 2014 and 2013. If any had been recognized these would be reported in income tax expense.
	IRS Tax Audit
	The Company’s federal income tax return for the year ended December 31, 2009 was examined by the Internal Revenue Service and was accepted as filed. The tax returns for years ended December 31, 2010 through 2012 are subject to examination, generally for three years after filing.
	In March 2014, the Company received a notice that its federal income tax returns for the years ended December 31, 2011 and 2012 were selected for examination by the Internal Revenue Service. On March 31, 2014, the Company was notified that the examination was cancelled.

10_Net_Income_Per_Common_Share

10. Net Income Per Common Share	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
10. Net Income Per Common Share	'
	Note 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 common share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options. The computation of diluted earnings common 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 common share excludes outstanding options in periods where the exercise of such options would be anti-dilutive. For the six months ended June 30, 2014 and 2013, the inclusion of 7,500 and 10,000 options, respectively, in the computation of diluted earnings per common share would have been anti-dilutive for the periods and, as a result, the weighted average number of common shares used in the calculation of diluted earnings per common share has not been adjusted for the effect of such options. For the three months ended June 30, 2014 and 2013, the inclusion of 18,750 and 10,000 options, respectively, in the computation of diluted earnings per common share would have been anti-dilutive for the periods and, as a result, the weighted average number of common shares used in the calculation of diluted earnings per common share has not been adjusted for the effect of such options.
	The reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per common share follows:
		Three months ended				Six months ended
		June 30,				June 30,
		2014		2013		2014		2013
	Weighted average number of shares outstanding		7,287,935		3,827,712		7,277,313		3,834,269
	Effect of dilutive securities, common share equivalents		70,345		78,720		75,296		77,381
	Weighted average number of shares outstanding,
	used for computing diluted earnings per share		7,358,280		3,906,432		7,352,609		3,911,650

11_Commitments_and_Contingenci

11. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
11. Commitments and Contingencies	'
	Note 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 (“DFS”) 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 DFS commenced an investigation into the claims practices of three insurance companies, including KICO, in connection with Superstorm Sandy claims. The DFS stated that the three insurers had a much larger than average consumer complaint rate with regard to Superstorm Sandy claims and indicated that the three insurers were being investigated for (i) failure to send adjusters in a timely manner; (ii) failure to process claims in a timely manner; and (iii) inability of homeowners to contact insurance company representatives. KICO received a letter from the DFS seeking information and data with regard to the foregoing. KICO has supplied information and data, and is cooperating with the DFS in connection with its investigation. KICO has not received a response from the DFS and believes that such matter will not have any effect on the Company’s financial position or results of operations.

12_Subsequent_Events

12. Subsequent Events	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
12. Subsequent Events	'
	Note 12 – Subsequent Events
	The Company has evaluated events that occurred subsequent to June 30, 2014 through the date these financial statements were issued for matters that required disclosure or adjustment in these condensed consolidated financial statements.
	Dividends Declared and Paid
	On August 12, 2014, the Company’s Board of Directors approved a dividend of $.05 per share payable in cash on September 15, 2014 to stockholders of record as of August 29, 2014.
	Premium Finance Placement Fees
	The Company’s wholly-owned subsidiary, Payments Inc. (“Payments”), is licensed as a premium finance agency in the state of New York. Prior to February 1, 2008, Payments provided premium financing in connection with the obtaining of insurance policies. Effective February 1, 2008, Payments sold its outstanding premium finance loan portfolio. The purchaser of the portfolio (the “Purchaser”) has agreed that, during the five year period ended February 1, 2013 (which period has been extended to February 1, 2015), it will purchase, assume and service all eligible premium finance contracts originated by Payments in the state of New York (the “Agreement”). In connection with such purchases, Payments will be entitled to receive a fee generally equal to a percentage of the amount financed.
	On July 17, 2014, the Purchaser terminated the Agreement effective February 1, 2015. Following any expiration or termination of the obligation of the Purchaser to purchase premium finance contracts, Payments will be entitled to receive the fees for an additional two years with regard to contracts for policies from the Company’s producers. The Company’s premium financing business currently consists of the placement fees that Payments earns from placing contracts. Placement fee revenue included in other income and the related direct expenses included in other operating expenses in the condensed consolidated statements of net income and comprehensive income are as follows (unaudited):
		For the Three Months Ended		For the Six Months Ended
		June 30,		June 30,
		2014	2013	2014	2013
	Placement fee revenue	$         59,717	$         85,088	$       129,160	$175,592
	Direct expenses	17,498	21,429	29,036	34,383
	Net income before taxes from placement fees	$         42,219	$         63,659	$       100,124	$       141,209

2_Accounting_Policies_and_Basi

2. Accounting Policies and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Use of Estimates	'
	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	'
	Principles of Consolidation
	The consolidated financial statements consist of Kingstone and its wholly owned subsidiaries. Subsidiaries include: (1) KICO and its wholly owned subsidiaries, CMIC Properties, Inc. (“Properties”) and 15 Joys Lane, LLC (“15 Joys Lane”), which together own the land and building from which KICO operates, and (2) Payments Inc. All significant inter-company transactions have been eliminated in consolidation.
Accounting Pronouncements	'
	Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2016. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements.
	The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

3_Investments_Tables

3. Investments (Tables)	6 Months Ended
	Jun. 30, 2014
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 June 30, 2014 and December 31, 2013 are summarized as follows:
		30-Jun-14
								Gross Unrealized Losses									Net
		Cost or			Gross Unrealized			Less than 12			More than 12			Fair			Unrealized Gains/
		Amortized
	Category	Cost			Gains			Months			Months			Value			(Losses)
	Fixed-Maturity Securities:
	Political subdivisions of States,
	Territories and Possessions	$	12,413,225		$	348,720		$	(18,529	)	$	(15,108	)	$	12,728,308		$	315,083
	Corporate and other bonds
	Industrial and miscellaneous		27,882,438			1,021,295			(11,736	)		(24,794	)		28,867,203			984,765
	Total fixed-maturity securities		40,295,663			1,370,015			(30,265	)		(39,902	)		41,595,511			1,299,848
	Equity Securities:
	Preferred stocks		3,340,238			28,311			-			(75,147	)		3,293,402			(46,836	)
	Common stocks		5,483,251			643,486			(17,328	)		-			6,109,409			626,158
	Total equity securities		8,823,489			671,797			(17,328	)		(75,147	)		9,402,811			579,322
	Total	$	49,119,152		$	2,041,812		$	(47,593	)	$	(115,049	)	$	50,998,322		$	1,879,170
		31-Dec-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)
	Fixed-Maturity Securities:
	Political subdivisions of States,
	Territories and Possessions	$	7,000,222		$	162,616		$	(49,491	)	$	(45,140	)	$	7,068,207		$	67,985
	Corporate and other bonds
	Industrial and miscellaneous		21,079,680			569,139			(179,810	)		(101,194	)		21,367,815			288,135
	Total fixed-maturity securities		28,079,902			731,755			(229,301	)		(146,334	)		28,436,022			356,120
	Equity Securities:
	Preferred stocks		2,899,301			2,503			(251,525	)		(62,551	)		2,587,728			(311,573	)
	Common stocks		3,791,037			470,606			(38,785	)		(13,913	)		4,208,945			417,908
	Total equity securities		6,690,338			473,109			(290,310	)		(76,464	)		6,796,673			106,335
	Total	$	34,770,240		$	1,204,864		$	(519,611	)	$	(222,798	)	$	35,232,695		$	462,455
Schedule of Availalbe for Sale Securities by contractual maturity	'
	A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of June 30, 2014 and December 31, 2013 is shown below:
		30-Jun-14						31-Dec-13
		Amortized						Amortized
	Remaining Time to Maturity	Cost			Fair Value			Cost			Fair Value
	Less than one year	$	983,007		$	993,669		$	758,281		$	768,954
	One to five years		8,305,030			8,763,953			9,025,386			9,466,973
	Five to ten years		24,537,824			25,232,851			14,070,003			14,114,271
	More than 10 years		6,469,802			6,605,038			4,226,232			4,085,824
	Total	$	40,295,663		$	41,595,511		$	28,079,902		$	28,436,022
Schedule of Held to Maturity Securities	'
	The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of June 30, 2014 and December 31, 2013 are summarized as follows:
		30-Jun-14
																	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	$	606,336		$	112,010		$	-		$	-		$	718,346		$	112,010
	Political subdivisions of States,
	Territories and Possessions		1,411,268			28,847			(12,999	)		-			1,427,116			15,848
	Corporate and other bonds
	Industrial and miscellaneous		2,604,268			87,657			(8,122	)		-			2,683,803			79,535
	Total	$	4,621,872		$	228,514		$	(21,121	)	$	-		$	4,829,265		$	207,393
		31-Dec-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)
	U.S. Treasury securities	$	606,138		$	46,915		$	-		$	-		$	653,053		$	46,915
	Political subdivisions of States,
	Territories and Possessions		208,697			-			(25,359	)		-			183,338			(25,359	)
	Corporate and other bonds
	Industrial and miscellaneous		1,584,647			4,223			-			-			1,588,870			4,223
	Total	$	2,399,482		$	51,138		$	(25,359	)	$	-		$	2,425,261		$	25,779
Schedule of Held to Maturity Securities by contractual maturity	'
	A summary of the amortized cost and fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of June 30, 2014 and December 31, 2013 is shown below:
		30-Jun-14						31-Dec-13
		Amortized						Amortized
	Remaining Time to Maturity	Cost			Fair Value			Cost			Fair Value
	Less than one year	$	-		$	-		$	-		$	-
	One to five years		-			-			-			-
	Five to ten years		2,815,030			2,881,566			1,793,344			1,772,208
	More than 10 years		1,806,842			1,947,699			606,138			653,053
	Total	$	4,621,872		$	4,829,265		$	2,399,482		$	2,425,261
Schedule of Investment Income	'
	Major categories of the Company’s net investment income are summarized as follows:
		Three months ended						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
	Income:
	Fixed-maturity securities	$	406,137		$	234,977		$	749,055		$	495,012
	Equity securities		141,705			93,389			256,218			179,844
	Cash and cash equivalents		2,821			-			23,440			29
	Other		594			11,817			594			11,817
	Total		551,257			340,183			1,029,307			686,702
	Expenses:
	Investment expenses		99,342			65,152			198,604			128,384
	Net investment income	$	451,915		$	275,031		$	830,703		$	558,318
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						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
	Fixed-maturity securities:
	Gross realized gains	$	68,223		$	104,241		$	157,479		$	181,217
	Gross realized losses		(1,894	)		(56,471	)		(28,293	)		(56,471	)
			66,329			47,770			129,186			124,746
	Equity securities:
	Gross realized gains		81,192			218,204			217,251			289,989
	Gross realized losses		(12,919	)		(16,081	)		(23,487	)		(59,717	)
			68,273			202,123			193,764			230,272
	Net realized gains	$	134,602		$	249,893		$	322,950		$	355,018
Schedule of Securities with Unrealized Losses	'
	The Company held securities with unrealized losses representing declines that were considered temporary at June 30, 2014 and December 31, 2013 as follows:
		30-Jun-14
		Less than 12 months									12 months or more									Total
								No. of									No. of			Aggregate
		Fair			Unrealized			Positions			Fair			Unrealized			Positions			Fair		Unrealized
	Category	Value			Losses			Held			Value			Losses			Held			Value		Losses
	Fixed-Maturity Securities:
	Political subdivisions of
	States, Territories and
	Possessions	$	1,479,948		$	(18,529	)		5		$	534,874		$	(15,108	)		2		$	2,014,822	$	(33,637	)
	Corporate and other
	bonds industrial and
	miscellaneous		2,027,606			(11,736	)		5			778,210			(24,794	)		3			2,805,816		(36,530	)
	Total fixed-maturity
	securities	$	3,507,554		$	(30,265	)		10		$	1,313,084		$	(39,902	)		5		$	4,820,638	$	(70,167	)
	Equity Securities:
	Preferred stocks	$	-		$	-			-		$	1,635,873		$	(75,147	)		6		$	1,635,873	$	(75,147	)
	Common stocks		621,830			(17,328	)		2			-			-			-			621,830		(17,328	)
	Total equity securities	$	621,830		$	(17,328	)		2		$	1,635,873		$	(75,147	)		6		$	2,257,703	$	(92,475	)
	Total	$	4,129,384		$	(47,593	)		12		$	2,948,957		$	(115,049	)		11		$	7,078,341	$	(162,642	)
		31-Dec-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
	Fixed-Maturity Securities:
	Political subdivisions of
	States, Territories and
	Possessions	$	2,015,437		$	(49,491	)		6		$	415,866		$	(45,140	)		2		$	2,431,303	$	(94,631	)
	Corporate and other
	bonds industrial and
	miscellaneous		6,447,605			(179,810	)		24			1,430,377			(101,194	)		5			7,877,982		(281,004	)
	Total fixed-maturity
	securities	$	8,463,042		$	(229,301	)		30		$	1,846,243		$	(146,334	)		7		$	10,309,285	$	(375,635	)
	Equity Securities:
	Preferred stocks	$	1,835,958		$	(251,525	)		8		$	444,100		$	(62,551	)		2		$	2,280,058	$	(314,076	)
	Common stocks		879,525			(38,785	)		4			145,625			(13,913	)		1			1,025,150		(52,698	)
	Total equity securities	$	2,715,483		$	(290,310	)		12		$	589,725		$	(76,464	)		3		$	3,305,208	$	(366,774	)
	Total	$	11,178,525		$	(519,611	)		42		$	2,435,968		$	(222,798	)		10		$	13,614,493	$	(742,409	)

4_Fair_Value_Measurements_Tabl

4. Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Schedule of Fair Value Measurements	'
	The Company’s investments are allocated among pricing input levels at June 30, 2014 and December 31, 2013 as follows:
		30-Jun-14
	($ in thousands)	Level 1		Level 2		Level 3		Total
	Fixed-maturity securities available for sale
	Political subdivisions of
	States, Territories and
	Possessions	$	-	$	12,728	$	-	$	12,728
	Corporate and other
	bonds industrial and
	miscellaneous		21,219		7,648		-		28,867
	Total fixed maturities		21,219		20,376		-		41,595
	Equity securities		9,403		-		-		9,403
	Total investments	$	30,622	$	20,376	$	-	$	50,998
		31-Dec-13
	($ in thousands)	Level 1		Level 2		Level 3		Total
	Fixed-maturity securities available for sale
	Political subdivisions of
	States, Territories and
	Possessions	$	-	$	7,068	$	-	$	7,068
	Corporate and other
	bonds industrial and
	miscellaneous		20,731		637		-		21,368
	Total fixed maturities		20,731		7,705		-		28,436
	Equity securities		6,797		-		-		6,797
	Total investments	$	27,528	$	7,705	$	-	$	35,233

5_Fair_Value_of_Financial_Inst1

5. Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2014
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-Jun-14				31-Dec-13
		Carrying		Fair Value		Carrying		Fair Value
		Value				Value
	Fixed-maturity securities held-to-maturity	$	4,621,872	$	4,829,265	$	2,399,482	$	2,425,261
	Cash and cash equivalents		6,824,249		6,824,249		19,922,506		19,922,506
	Premiums receivable		9,249,702		9,249,702		7,590,074		7,590,074
	Receivables - reinsurance contracts		1,068,551		1,068,551		974,989		974,989
	Reinsurance receivables		44,423,447		44,423,447		37,560,825		37,560,825
	Real estate, net of accumulated depreciation		1,767,459		1,816,122		1,777,942		1,816,122
	Reinsurance balances payable		3,881,409		3,881,409		2,566,729		2,566,729

6_Property_and_Casualty_Insura1

6. Property and Casualty Insurance Activity (Tables)	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Schedule of Earned Premiums	'
	Premiums written, ceded and earned are as follows:
			Direct			Assumed			Ceded			Net
	Six months ended June 30, 2014
	Premiums written		$	36,597,945		$	16,302		$	(21,527,803	)	$	15,086,444
	Change in unearned premiums			(4,872,810	)		6,351			2,135,699			(2,730,760	)
	Premiums earned		$	31,725,135		$	22,653		$	(19,392,104	)	$	12,355,684
	Six months ended June 30, 2013
	Premiums written		$	28,725,957		$	20,047		$	(17,781,254	)	$	10,964,750
	Change in unearned premiums			(3,452,133	)		28,569			1,758,311			(1,665,253	)
	Premiums earned		$	25,273,824		$	48,616		$	(16,022,943	)	$	9,299,497
	Three months ended June 30, 2014
	Premiums written		$	20,250,500		$	8,655		$	(11,757,974	)	$	8,501,181
	Change in unearned premiums			(3,739,282	)		3,697			1,663,777			(2,071,808	)
	Premiums earned		$	16,511,218		$	12,352		$	(10,094,197	)	$	6,429,373
	Three months ended June 30, 2013
	Premiums written		$	15,881,121		$	10,232		$	(9,897,589	)	$	5,993,764
	Change in unearned premiums			(2,873,166	)		1,128			1,554,556			(1,317,482	)
	Premiums earned		$	13,007,955		$	11,360		$	(8,343,033	)	$	4,676,282
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 expense (“LAE”) reserves:
			Six months ended
			June 30,
			2014			2013
	Balance at beginning of period		$	34,503,229		$	30,485,532
	Less reinsurance recoverables			(17,363,975	)		(18,419,694	)
	Net balance, beginning of period			17,139,254			12,065,838
	Incurred related to:
	Current year			6,975,731			5,175,229
	Prior years			357,162			536,209
	Total incurred			7,332,893			5,711,438
	Paid related to:
	Current year			2,691,199			1,416,181
	Prior years			3,132,536			2,675,112
	Total paid			5,823,735			4,091,293
	Net balance at end of period			18,648,412			13,685,983
	Add reinsurance recoverables			21,055,876			14,671,485
	Balance at end of period		$	39,704,288		$	28,357,468
Schedule of line of business	'
	The treaties are annual, except for personal lines described below, and provide for the following material terms:
			Treaty Year
			1-Jul-14		1-Jul-13	1-Jul-12
			to		to	to
	Line of Busines		30-Jun-15		30-Jun-14	30-Jun-13
	Personal Lines:
	Homeowners, dwelling fire and canine legal liability
	Quota share treaty:
	Percent ceded		55%		75%	75%
	Risk retained		$        360,000		$       300,000	$       250,000
	Losses per occurrence subject to quota share reinsurance coverage		$        800,000		$    1,200,000	$    1,000,000
	Excess of loss coverage in excess of quota share coverage		$     3,200,000		$    1,700,000	$    1,900,000
			in excess of		in excess of	in excess of
			$        800,000		$    1,200,000	$    1,000,000
	Total reinsurance coverage per occurrence		$     3,640,000		$    2,600,000	$    2,650,000
	Losses per occurrence subject to reinsurance coverage		$     4,000,000		$    2,900,000	$    2,900,000
	Expiration date		30-Jun-15		30-Jun-15	30-Jun-13
	Personal Umbrella
	Quota share treaty:
	Percent ceded - first million dollars of coverage		90%		90%	90%
	Percent ceded - excess of one million dollars of coverage		100%		100%	100%
	Total reinsurance coverage per occurrence		$     2,900,000		$    1,900,000	$    1,900,000
	Losses per occurrence subject to quota share reinsurance coverage		$     3,000,000		$    2,000,000	$    2,000,000
	Expiration date		30-Jun-15		30-Jun-14	30-Jun-13
	Commercial Lines:
	General liability commercial policies, except for commercial auto
	Quota share treaty:
	Percent ceded (terminated effective July 1, 2014)		None		25%	40%
	Risk retained		$        400,000		$       300,000	$       300,000
	Losses per occurrence subject to quota share reinsurance coverage		None		$       400,000	$       500,000
	Excess of loss coverage in excess of quota share coverage		$     3,600,000		$    2,500,000	$    2,400,000
			in excess of		in excess of	in excess of
			$        400,000		$       400,000	$       500,000
	Total reinsurance coverage per occurrence		$     3,600,000		$    2,600,000	$    2,600,000
	Losses per occurrence subject to reinsurance coverage		$     4,000,000		$    2,900,000	$    2,900,000
	Commercial Auto:
	Excess of loss coverage in excess of risk retained		$     1,700,000		$    1,700,000	$    1,750,000
			in excess of		in excess of	in excess of
			$        300,000		$       300,000	$       250,000
	Catastrophe Reinsurance:
	Initial loss subject to personal lines quota share treaty		$     4,000,000		$    4,000,000	$    3,000,000
	Risk retained per catastrophe occurrence (1)		$     1,800,000		$    1,000,000	$       750,000
	Catastrophe loss coverage in excess of quota share coverage (2) (3)		$ 137,000,000		$  86,000,000	$  70,000,000
	-1	Plus losses in excess of catastrophe coverage.
		-2	Effective July 1, 2014, the Company’s catastrophe treaty also covers losses caused by severe winter weather during any consecutive 28 day period.
	-3	Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.
Schedule of Single maximum risks under treaties	'
	The single maximum risks per occurrence to which the Company is subject under the treaties that expired on June 30, 2014 and the new treaties effective July 1, 2014 are as follows:
			July 1, 2014 - June 30, 2015			July 1, 2013 - June 30, 2014
	Treaty		Extent of Loss		Risk	Extent of Loss		Risk
					Retained			Retained
	Personal Lines		Initial $800,000		$360,000	Initial $1,200,000		$300,000
			$800,000 - $4,000,000		None(1)	$1,200,000 - $2,900,000		None(1)
			Over $4,000,000		100%	Over $2,900,000		100%
	Personal Umbrella		Initial $1,000,000		$100,000	Initial $1,000,000		$100,000
			$1,000,000 - $3,000,000		None(1)	$1,000,000 - $2,000,000		None(1)
			Over $3,000,000		100%	Over $2,000,000		100%
	Commercial Lines		Initial $400,000		$400,000	Initial $400,000		$300,000
			$400,000 - $4,000,000		None(1)	$400,000 - $2,900,000		None(1)
			Over $4,000,000		100%	Over $2,900,000		100%
	Commercial Auto		Initial $300,000		$300,000	Initial $300,000		$300,000
			$300,000 - $2,000,000		None(1)	$300,000 - $2,000,000		None(1)
			Over $2,000,000		100%	Over $2,000,000		100%
	Catastrophe (2)		Initial $4,000,000		$1,800,000	Initial $4,000,000		$1,000,000
			$4,000,000 - $141,000,000		None	$4,000,000 - $90,000,000		None
			Over $141,000,000		100%	Over $90,000,000		100%
		-1	Covered by excess of loss treaties.
		-2	Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.
Schedule of Ceding Commission Revenue	'
	Ceding commissions earned consists of the following:
			Three months ended						Six months ended
			June 30,						June 30,
			2014			2013			2014			2013
	Provisional ceding commissions earned		$	3,629,871		$	2,502,845		$	7,006,747		$	4,895,709
	Contingent ceding commissions earned			76,178			(168,414	)		80,585			(267,567	)
			$	3,706,049		$	2,334,431		$	7,087,332		$	4,628,142

8_Stockholders_Equity_Tables

8. Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Schedule of Stock Options Activity	'
	A summary of option activity under the Company’s 2005 Plan for the six months ended June 30, 2014 is as follows:
	Stock Options	Number of			Weighted		Weighted		Aggregate
		Shares			Average		Average		Intrinsic
					Exercise Price		Remaining		Value
					per Share		Contractual
							Term
	Outstanding at January 1, 2014		321,365		$	3.36		2.26	$	1,257,936
	Granted		-		$	-		-	$	-
	Exercised		(58,865	)	$	2.45		-	$	248,179
	Forfeited		-		$	-		-	$	-
	Outstanding at June 30, 2014		262,500		$	3.56		2.04	$	816,650
	Vested and Exercisable at June 30, 2014		185,625		$	2.87		1.17	$	705,650

9_Income_Taxes_Tables

9. Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Schedule of Deferrred Tax Assets and Liabilities	'
	Significant components of the Company’s deferred tax assets and liabilities are as follows:
		June 30,			December 31,
		2014			2013
	Deferred tax asset:
	Net operating loss carryovers (1)	$	255,192		$	246,476
	Claims reserve discount		484,601			445,384
	Unearned premium		1,220,379			1,000,372
	Deferred ceding commission revenue		2,643,403			2,374,616
	Other		-			17,087
	Total deferred tax assets		4,603,575			4,083,935
	Deferred tax liability:
	Investment in KICO (2)		1,169,000			1,169,000
	Deferred acquisition costs		2,718,674			2,332,489
	Intangibles		840,272			921,143
	Depreciation and amortization		166,731			197,223
	Net unrealized appreciation of securities - available for sale		634,963			157,167
	Other		11,294			-
	Total deferred tax liabilities		5,540,934			4,777,022
	Net deferred income tax liability	$	(937,359	)	$	(693,087	)
Losses subject to Annual Limitation	'
	(1) The deferred tax assets from net operating loss carryovers are as follows:
		June 30,			December 31,
	Type of NOL	2014			2013			Expiration
	State only (A)	$	508,135		$	459,989			31-Dec-34
	Valuation allowance		(269,943	)		(240,713	)
	State only, net of valuation allowance		238,192			219,276
	Amount subject to Annual Limitation, federal only (B)		17,000			27,200			31-Dec-19
	Total deferred tax asset from net operating loss carryovers	$	255,192		$	246,476

10_Net_Income_Per_Common_Share1

10. Net Income Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2014
Earnings per common share:	'
Schedule of Net Income Per Common Share	'
	The reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per common share follows:
		Three months ended				Six months ended
		June 30,				June 30,
		2014		2013		2014		2013
	Weighted average number of shares outstanding		7,287,935		3,827,712		7,277,313		3,834,269
	Effect of dilutive securities, common share equivalents		70,345		78,720		75,296		77,381
	Weighted average number of shares outstanding,
	used for computing diluted earnings per share		7,358,280		3,906,432		7,352,609		3,911,650

12_Subsequent_Event_Tables

12. Subsequent Event (Tables)	6 Months Ended
	Jun. 30, 2014
Subsequent Event Tables	'
Placement fee revenue and related expense	'
		For the Three Months Ended		For the Six Months Ended
		June 30,		June 30,
		2014	2013	2014	2013
	Placement fee revenue	$         59,717	$         85,088	$       129,160	$175,592
	Direct expenses	17,498	21,429	29,036	34,383
	Net income before taxes from placement fees	$         42,219	$         63,659	$       100,124	$       141,209

3_Investments_Details

3. Investments (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Cost or Amortized Cost	$49,119,152	$34,770,240
Gross Unrealized Gains	2,041,812	1,204,864
Gross Unrealized Losses-Less than 12 Months	-47,593	-519,611
Gross Unrealized Loss-More than 12 Months	-115,049	-222,798
Fair Value	50,998,322	35,232,695
Net Unrealized Gains/(Losses)	1,879,170	462,455
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions	'	'
Cost or Amortized Cost	12,413,225	7,000,222
Gross Unrealized Gains	348,720	162,616
Gross Unrealized Losses-Less than 12 Months	-18,529	-49,491
Gross Unrealized Loss-More than 12 Months	-15,108	-45,140
Fair Value	12,728,308	7,068,207
Net Unrealized Gains/(Losses)	315,083	67,985
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous	'	'
Cost or Amortized Cost	27,882,438	21,079,680
Gross Unrealized Gains	1,021,295	569,139
Gross Unrealized Losses-Less than 12 Months	-11,736	-179,810
Gross Unrealized Loss-More than 12 Months	-24,794	-101,194
Fair Value	28,867,203	21,367,815
Net Unrealized Gains/(Losses)	984,765	288,135
Fixed Maturity Securities Total Fixed Maturity Securities	'	'
Cost or Amortized Cost	40,295,663	28,079,902
Gross Unrealized Gains	1,370,015	731,755
Gross Unrealized Losses-Less than 12 Months	-30,265	-229,301
Gross Unrealized Loss-More than 12 Months	-39,902	-146,334
Fair Value	41,595,511	28,436,022
Net Unrealized Gains/(Losses)	1,299,848	356,120
Equity Securities Preferred Stocks	'	'
Cost or Amortized Cost	3,340,238	2,899,301
Gross Unrealized Gains	28,311	2,503
Gross Unrealized Losses-Less than 12 Months	0	-251,525
Gross Unrealized Loss-More than 12 Months	-75,147	-62,551
Fair Value	3,293,402	2,587,728
Net Unrealized Gains/(Losses)	-46,836	-311,573
Equity Securities Common Stocks	'	'
Cost or Amortized Cost	5,483,251	3,791,037
Gross Unrealized Gains	643,486	470,606
Gross Unrealized Losses-Less than 12 Months	-17,328	-38,785
Gross Unrealized Loss-More than 12 Months	0	-13,913
Fair Value	6,109,409	4,208,945
Net Unrealized Gains/(Losses)	626,158	417,908
Equity Securities Total Equity Securities	'	'
Cost or Amortized Cost	8,823,489	6,690,338
Gross Unrealized Gains	671,797	473,109
Gross Unrealized Losses-Less than 12 Months	-17,328	-290,310
Gross Unrealized Loss-More than 12 Months	-75,147	-76,464
Fair Value	9,402,811	6,796,673
Net Unrealized Gains/(Losses)	$579,322	$106,335

3_Investments_Details_1

3. Investments (Details 1) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Amortized Cost	$40,295,663	$28,079,902
Fair Value	41,595,511	28,436,022
Less Than One Year	'	'
Amortized Cost	983,007	758,281
Fair Value	993,669	768,954
One To Five Years	'	'
Amortized Cost	8,305,030	9,025,386
Fair Value	8,763,953	9,466,973
Five To Ten Years	'	'
Amortized Cost	24,537,824	14,070,003
Fair Value	25,232,851	14,114,271
More Than 10 Years	'	'
Amortized Cost	6,469,802	4,226,232
Fair Value	$6,605,038	$4,085,824

3_Investments_Details_2

3. Investments (Details 2) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Cost or Amortized Cost	$4,621,872	$2,399,482
Gross Unrealized Gains	228,514	51,138
Gross Unrealized Losses-Less than 12 Months	-21,121	-25,359
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	4,829,265	2,425,261
Net Unrealized Gains/(Losses)	207,393	25,779
US Treasury Securities	'	'
Cost or Amortized Cost	606,336	606,138
Gross Unrealized Gains	112,010	46,915
Gross Unrealized Losses-Less than 12 Months	0	0
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	718,346	653,053
Net Unrealized Gains/(Losses)	112,010	46,915
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions	'	'
Cost or Amortized Cost	1,411,268	208,697
Gross Unrealized Gains	28,847	0
Gross Unrealized Losses-Less than 12 Months	-12,999	-25,359
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	1,427,116	183,338
Net Unrealized Gains/(Losses)	15,848	-25,359
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous	'	'
Cost or Amortized Cost	2,604,268	1,584,647
Gross Unrealized Gains	87,657	4,223
Gross Unrealized Losses-Less than 12 Months	-8,122	0
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	2,683,803	1,588,870
Net Unrealized Gains/(Losses)	$79,535	$4,223

3_Investments_Details_3

3. Investments (Details 3) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Amortized Cost	$4,621,872	$2,399,482
Fair Value	4,829,265	2,425,261
Less Than One Year	'	'
Amortized Cost	0	0
Fair Value	0	0
One To Five Years	'	'
Amortized Cost	0	0
Fair Value	0	0
Five To Ten Years	'	'
Amortized Cost	2,815,030	1,793,344
Fair Value	2,881,566	1,772,208
More Than 10 Years	'	'
Amortized Cost	1,806,842	606,138
Fair Value	$1,947,699	$653,053

3_Investments_Details_4

3. Investments (Details 4) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income:	'	'	'	'
Fixed-maturity securities	$406,137	$234,977	$749,055	$495,012
Equity securities	141,705	93,389	256,218	179,844
Cash and cash equivalents	2,821	0	23,440	29
Other	594	11,817	594	11,817
Total	551,257	340,183	1,029,307	686,702
Expenses:	'	'	'	'
Investment expenses	99,342	65,152	198,604	128,384
Net investment income	$451,915	$275,031	$830,703	$558,318

3_Investments_Details_5

3. Investments (Details 5) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Fixed-maturity securities:	'	'	'	'
Gross realized gains	$68,223	$104,241	$157,479	$181,217
Gross realized losses	-1,894	-56,471	-28,293	-56,471
Total	66,329	47,770	129,186	124,746
Equity securities:	'	'	'	'
Gross realized gains	81,192	218,204	217,251	289,989
Gross realized losses	-12,919	-16,081	-23,487	-59,717
Total equity securities	68,273	202,123	193,764	230,272
Net realized gains	$134,602	$249,893	$322,950	$355,018

3_Investments_Details_6

3. Investments (Details 6) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Fair Value-Less than 12 months	$4,129,384	$11,178,525
Unrealized Losses-Less than 12 Months	-47,593	-519,611
No. of Positions Held-Less than 12 Months	12	42
Fair Value-12 months or more	2,948,957	2,435,968
Unrealized Losses-12 months or more	-115,049	-222,798
No. of Positions Held-12 months or more	11	10
Aggregate Fair Value-Total	7,078,341	13,614,493
Unrealized Losses-Total	-162,642	-742,409
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions	'	'
Fair Value-Less than 12 months	1,479,948	2,015,437
Unrealized Losses-Less than 12 Months	-18,529	-49,491
No. of Positions Held-Less than 12 Months	5	6
Fair Value-12 months or more	534,874	415,866
Unrealized Losses-12 months or more	-15,108	-45,140
No. of Positions Held-12 months or more	2	2
Aggregate Fair Value-Total	2,014,822	2,431,303
Unrealized Losses-Total	-33,637	-94,631
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous	'	'
Fair Value-Less than 12 months	2,027,606	6,447,605
Unrealized Losses-Less than 12 Months	-11,736	-179,810
No. of Positions Held-Less than 12 Months	5	24
Fair Value-12 months or more	778,210	1,430,377
Unrealized Losses-12 months or more	-24,794	-101,194
No. of Positions Held-12 months or more	3	5
Aggregate Fair Value-Total	2,805,816	7,877,982
Unrealized Losses-Total	-36,530	-281,004
Fixed Maturity Securities Total Fixed Maturity Securities	'	'
Fair Value-Less than 12 months	3,507,554	8,463,042
Unrealized Losses-Less than 12 Months	-30,265	-229,301
No. of Positions Held-Less than 12 Months	10	30
Fair Value-12 months or more	1,313,084	1,846,243
Unrealized Losses-12 months or more	-39,902	-146,334
No. of Positions Held-12 months or more	5	7
Aggregate Fair Value-Total	4,820,638	10,309,285
Unrealized Losses-Total	-70,167	-375,635
Equity Securities Preferred Stocks	'	'
Fair Value-Less than 12 months	0	1,835,958
Unrealized Losses-Less than 12 Months	0	-251,525
No. of Positions Held-Less than 12 Months	0	8
Fair Value-12 months or more	1,635,873	444,100
Unrealized Losses-12 months or more	-75,147	-62,551
No. of Positions Held-12 months or more	6	2
Aggregate Fair Value-Total	1,635,873	2,280,058
Unrealized Losses-Total	-75,147	-314,076
Equity Securities Common Stocks	'	'
Fair Value-Less than 12 months	621,830	879,525
Unrealized Losses-Less than 12 Months	-17,328	-38,785
No. of Positions Held-Less than 12 Months	2	4
Fair Value-12 months or more	0	145,625
Unrealized Losses-12 months or more	0	-13,913
No. of Positions Held-12 months or more	0	1
Aggregate Fair Value-Total	621,830	1,025,150
Unrealized Losses-Total	-17,328	-52,698
Equity Securities Total Equity Securities	'	'
Fair Value-Less than 12 months	621,830	2,715,483
Unrealized Losses-Less than 12 Months	-17,328	-290,310
No. of Positions Held-Less than 12 Months	2	12
Fair Value-12 months or more	1,635,873	589,725
Unrealized Losses-12 months or more	-75,147	-76,464
No. of Positions Held-12 months or more	6	3
Aggregate Fair Value-Total	2,257,703	3,305,208
Unrealized Losses-Total	($92,475)	($366,774)

3_Investments_Details_Narrativ

3. Investments (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Investments Details Narrative	'	'
Proceeds from the sale and maturity of fixed-maturity securities	$3,643,499	$4,557,745
Proceeds from the sale of equity securities	$3,417,605	$2,727,084

4_Fair_Value_Measurements_Deta

4. Fair Value Measurements (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Political subdivisions of States, Territories and Possessions	$12,728	$7,068
Corporate and other bonds industrial and miscellaneous	28,867	21,368
Total fixed maturities	41,595	28,436
Equity securities	9,403	6,797
Total investments	50,998	35,233
Level 1	'	'
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	21,219	20,731
Total fixed maturities	21,219	20,731
Equity securities	9,403	6,797
Total investments	30,622	27,528
Level 2	'	'
Political subdivisions of States, Territories and Possessions	12,728	7,068
Corporate and other bonds industrial and miscellaneous	7,648	637
Total fixed maturities	20,376	7,705
Equity securities	0	0
Total investments	20,376	7,705
Level 3	'	'
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	0	0
Total fixed maturities	0	0
Equity securities	0	0
Total investments	$0	$0

5_Fair_Value_of_Financial_Inst2

5. Fair Value of Financial Instruments (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Reinsurance balances payable	$3,881,409	$2,566,729
Carrying Value	'	'
Fixed-maturity securities held-to-maturity	4,621,872	2,399,482
Cash and cash equivalents	6,824,249	19,922,506
Premiums receivable	9,249,702	7,590,074
Receivables - reinsurance contracts	1,068,551	974,989
Reinsurance receivables	44,423,447	37,560,825
Real estate net of accumulated depreciation	1,767,459	1,777,942
Reinsurance balances payable	3,881,409	2,566,729
Fair Value	'	'
Fixed-maturity securities held-to-maturity	4,829,265	2,425,261
Cash and cash equivalents	6,824,249	19,922,506
Premiums receivable	9,249,702	7,590,074
Receivables - reinsurance contracts	1,068,551	974,989
Reinsurance receivables	44,423,447	37,560,825
Real estate net of accumulated depreciation	1,816,122	1,816,122
Reinsurance balances payable	$3,881,409	$2,566,729

6_Property_and_Casualty_Insura2

6. Property and Casualty Insurance Activity (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Premiums Written	'	'	'	'
Direct	$20,250,500	$15,881,121	$36,597,945	$28,725,957
Assumed	8,655	10,232	16,302	20,047
Ceded	-11,757,974	-9,897,589	-21,527,803	-17,781,254
Net	8,501,181	5,993,764	15,086,444	10,964,750
Changes In Unearned Premiums	'	'	'	'
Direct	-3,739,282	-2,873,166	-4,872,810	-3,452,133
Assumed	3,697	1,128	6,351	28,569
Ceded	1,663,777	1,554,556	2,135,699	1,758,311
Net	-2,071,808	-1,317,482	-2,730,760	-1,665,253
Premiums Earned	'	'	'	'
Direct	16,511,218	13,007,955	31,725,135	25,273,824
Assumed	12,352	11,360	22,653	48,616
Ceded	-10,094,197	-8,343,033	-19,392,104	-16,022,943
Net	$6,429,373	$4,676,282	$12,355,684	$9,299,497

6_Property_and_Casualty_Insura3

6. Property and Casualty Insurance Activity (Details 1) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Property And Casualty Insurance Activity Details 1	'	'
Balance at beginning of period	$34,503,229	$30,485,532
Less reinsurance recoverables	-17,363,975	-18,419,694
Net balance, beginning of period	17,139,254	12,065,838
Incurred related to:	'	'
Current year	6,975,731	5,175,229
Prior years	357,162	536,209
Total incurred	7,332,893	5,711,438
Paid related to:	'	'
Current year	2,691,199	1,416,181
Prior years	3,132,536	2,675,112
Total paid	5,823,735	4,091,293
Net balance at end of period	18,648,412	13,685,983
Add reinsurance recoverables	21,055,876	14,671,485
Balance at end of period	$39,704,288	$28,357,468

6_Property_and_Casualty_Insura4

6. Property and Casualty Insurance Activity (Details 2) (USD $)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Personal Lines [Member]	'	'	'
Percent ceded	55.00%	75.00%	75.00%
Risk retained	$360,000	$300,000	$250,000
Coverage per occurrence	800,000	1,200,000	1,000,000
Excess of loss coverage in excess of quota share coverage	' 3,200,000 in excess of $800,000	' 1,700,000 in excess of $1,200,000	' 1,900,000 in excess of $1,000,000
Per occurrence loss limit	4,000,000	2,900,000	2,900,000
Total reinsurance coverage per occurrence	3,640,000	2,600,000	2,650,000
Expiration date	30-Jun-15	30-Jun-15	30-Jun-13
Personal Umbrella [Member]	'	'	'
Percent ceded - first million dollars of coverage	90.00%	90.00%	90.00%
Percent ceded - excess of one million dollars of coverage	100.00%	100.00%	100.00%
Coverage per occurrence	3,000,000	2,000,000	2,000,000
Total reinsurance coverage per occurrence	2,900,000	1,900,000	1,900,000
Expiration date	30-Jun-15	30-Jun-14	30-Jun-13
Commercial Lines [Member]	'	'	'
Percent ceded (terminated effective July 1, 2014)	0.00%	25.00%	40.00%
Risk retained	400,000	300,000	300,000
Coverage per occurrence	400,000	400,000	500,000
Excess of loss coverage in excess of quota share coverage	' $3,600,000 in excess of $400,000	' 2,500,000 in excess of $400,000	' 2,400,000 in excess of $500,000
Per occurrence loss limit	4,000,000	2,900,000	2,900,000
Total reinsurance coverage per occurrence	3,600,000	2,600,000	2,600,000
Commercial Auto [Member]	'	'	'
Excess of loss coverage in excess of risk retained	'1,700,000 in excess of $300,000	'1,700,000 in excess of $300,000	'1,750,000 in excess of $250,000
Catastrophe [Member]	'	'	'
Initial loss subject to personal lines quota share treaty	4,000,000	4,000,000	3,000,000
Risk retained per catastrophe occurrence	1,800,000	1,000,000	750,000
Catastrophe loss coverage in excess of quota share coverage Winter storm catastrophe coverage (1)	$137,000,000	$86,000,000	$70,000,000

6_Property_and_Casualty_Insura5

6. Property and Casualty Insurance Activity (Details 3)

12 Months Ended

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2015

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2015

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2015

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2015

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2015

Jun. 30, 2015

Personal Lines [Member]

Personal Lines [Member]

Personal Lines [Member]

Personal Lines [Member]

Personal Lines [Member]

Personal Lines [Member]

Personal Umbrella [Member]

Personal Umbrella [Member]

Personal Umbrella [Member]

Personal Umbrella [Member]

Personal Umbrella [Member]

Personal Umbrella [Member]

Commercial Lines [Member]

Commercial Lines [Member]

Commercial Lines [Member]

Commercial Lines [Member]

Commercial Lines [Member]

Commercial Lines [Member]

Commercial Auto [Member]

Commercial Auto [Member]

Commercial Auto [Member]

Commercial Auto [Member]

Commercial Auto [Member]

Commercial Auto [Member]

Catastrophe [Member]

Catastrophe [Member]

Catastrophe [Member]

Catastrophe [Member]

Catastrophe [Member]

Catastrophe [Member]

Initial $1,200,000 [Member]

1,200,000 - $2,900,000 [Member]

Over $2,900,000 [Member]

Initial 800,000 [Member]

800,000 - 4,000,000 [Member]

Over 4,000,000 [Member]

Initial 1,000,000 [Member]

1,000,000 - 2,000,000 [Member]

Over 2,000,000 [Member]

Initial 1,000,000 [Member]

1,000,000 - 3,000,000 [Member]

Over 3,000,000 [Member]

Initial 400,000 [Member]

400,000 - 2,900,000 [Member]

Over 2,900,000 [Member]

Initial 400,000 [Member]

400,000 - 4,000,000 [Member]

Over 4,000,000 [Member]

Initial 300,000 [Member]

300,000 - 2,000,000 [Member]

Over 2,000,000 [Member]

Initial 300,000 [Member]

300,000 - 2,000,000 [Member]

Over 2,000,000 [Member]

Initial 4,000,000 [Member]

4,000,000 - 90,000,000 [Member]

Over 90,000,000 [Member]

Initial 4,000,000 [Member]

4,000,000 - 141,000,000 [Member]

Over 141,000,000 [Member]

Risk Retained

'$300,000

'None(1)

'100%

'$360,000

'None(1)

'100%

'$100,000

'None(1)

'100%

'$100,000

'None(1)

'100%

'$300,000

'None(1)

'100%

'$400,000

'None(1)

'100%

'$300,000

'None(1)

'100%

'$300,000

'None(1)

'100%

'$1,000,000

'None(1)

'100%

'$1,800,000

'None

'100%

6_Property_and_Casualty_Insura6

6. Property and Casualty Insurance Activity (Details 4) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Property And Casualty Insurance Activity Details 4	'	'	'	'
Provisional ceding commissions earned	$3,629,871	$2,502,845	$7,006,747	$4,895,709
Contingent ceding commissions earned	76,178	-168,414	80,585	-267,567
Total commissions earned	$3,706,049	$2,334,431	$7,087,332	$4,628,142

6_Property_and_Casualty_Insura7

6. Property and Casualty Insurance Activity (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Property And Casualty Insurance Activity Details Narrative	'	'	'
Advance premiums	$1,281,000	'	$776,000
Incurred Losses and Loss Adjustment Expenses are net of reinsurance recoveries under reinsurance contracts	$11,654,279	$8,275,782	'

7_Bank_Line_of_Credit_Details_

7. Bank Line of Credit (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Bank Line Of Credit Details Narrative	'	'
Line of credit	$0	$0
Interest Rate	0.00%	3.75%
Interest Expene-Notes	$0	$4,000

8_Stockholders_Equity_Details

8. Stockholders' Equity (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Stockholders Equity Details	'
Number of Options Outstanding, Beginning	321,365
Number of Options Granted	0
Number of Options Exercised	-58,865
Number of Options Forfeited	0
Number of Options Outstanding, Ending	262,500
Number of Options Vested and Exercisable	185,625
Weighted Average Exercise Price Outstanding, Beginning	$3.36
Weighted Average Exercise Price Granted	$0
Weighted Average Exercise Price Exercised	$2.45
Weighted Average Exercise Price Forfeited	$0
Weighted Average Exercise Price Outstanding, Ending	$3.56
Weighted Average Exercise Price Vested and Exercisable	$2.87
Weighted Average Remaining Contractual Life (in years) Outstanding Beginning	'2 years 3 months 4 days
Weighted Average Remaining Contractual Life (in years) Outstanding Ending	'2 years 15 days
Weighted Average Remaining Contractual Life (in years) Vested and Exercisable	'1 year 2 months 1 day
Aggregate Intrinsic Value Outstanding, Beginning	$1,257,936
Aggregate Intrinsic Value Granted	$0
Aggregate Intrinsic Value Exercised	248,179
Aggregate Intrinsic Value Forfeited/canceled	$0
Aggregate Intrinsic Value Outstanding, Ending	816,650
Aggregate Intrinsic Value Vested and Exercisable	$705,650

8_Stockholders_Equity_Details_

8. Stockholders' Equity (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Stockholders Equity Details Narrative	'	'	'	'
Dividends Declared	$291,776	$153,637	$582,439	$307,274
Compensation Expense	13,000	4,000	27,000	13,000
Stock-based compensation expense related to stock options is net of estimated forfeitures	21.00%	21.00%	20.00%	20.00%
Closing price of common stock	$6.67	'	$6.67	'
Stock Options exercised	'	'	'	0
Unamortized compensation cost related to unvested stock option awards	$45,000	'	$45,000	'
Unamortized compensation cost vesting period	'	'	'1 year 3 months 26 days	'

9_Income_Taxes_Details

9. Income Taxes (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Deferred tax asset:	'	'
Net operating loss carryovers (1)	$255,192	$246,476
Claims reserve discount	484,601	445,384
Unearned premium	1,220,379	1,000,372
Deferred ceding commission revenue	2,643,403	2,374,616
Other	0	17,087
Total deferred tax assets	4,603,575	4,083,935
Deferred tax liability:	'	'
Investment in KICO (2)	1,169,000	1,169,000
Deferred acquisition costs	2,718,674	2,332,489
Intangibles	840,272	921,143
Depreciation and amortization	166,731	197,223
Net unrealized appreciation of securities - available for sale	634,963	157,167
Other	11,294	0
Total deferred tax liabilities	5,540,934	4,777,022
Net deferred income tax liability	($937,359)	($693,087)

9_Income_Taxes_Details_1

9. Income Taxes (Details 1) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Income Taxes Details 1	'	'
State only (A)	$508,135	$459,989
Valuation allowance	-269,943	-240,713
State only, net of valuation allowance	238,192	219,276
Amount subject to Annual Limitation, Federal only (B)	17,000	27,200
Total deferred tax asset from net operating loss carryovers	$255,192	$246,476
State only (A) expiration date	'December 31, 2034	'
Amount subject to Annual Limitation, Federal only (B) expiration date	'December 31, 2019	'

9_Income_Taxes_Details_Narrati

9. Income Taxes (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Income Taxes Details Narrative	'	'	'
Effective Tax Rate-Continuing Operations	31.70%	39.80%	'
Net operating loss carryover	$6,035,000	'	$5,482,000

10_Net_Income_Per_Common_Share2

10. Net Income Per Common Share (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net Income Per Common Share Details	'	'	'	'
Weighted average number of shares outstanding	7,287,935	3,827,712	7,277,313	3,834,269
Effect of dilutive securities, common share equivalents	$70,345	$78,720	$75,296	$77,381
Weighted average number of shares outstanding, used for computing diluted earnings per share	7,358,280	3,906,432	7,352,609	3,911,650

10_Net_Income_Per_Common_Share3

10. Net Income Per Common Share (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net Income Per Common Share Details Narrative	'	'	'	'
Options with an exercise price below the average makert price	18,750	10,000	7,500	10,000

12_Subsequent_Event_Details

12. Subsequent Event (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Subsequent Event Tables	'	'	'	'
Placement fee revenue	$59,717	$85,088	$129,160	$175,592
Direct expenses	17,498	21,429	29,036	34,383
Net income before taxes from placement fees	$42,219	$63,659	$100,124	$141,209