Kingstone Companies (KINS) 10-Q13 May 152015 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2015	12-May-15
Document And Entity Information
Entity Registrant Name	KINGSTONE COMPANIES, INC.
Entity Central Index Key	33992
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
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		7,341,664
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
Assets
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $5,465,196 at March 31, 2015 and $5,395,054 at December 31, 2014)	$5,132,238	$5,128,735
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $52,564,513 at March 31, 2015 and $50,083,441 at December 31, 2014)	54,301,176	51,120,859
Equity securities, available-for-sale, at fair value (cost of $8,766,866 at March 31, 2015 and $7,621,309 at December 31, 2014)	9,237,109	8,017,729
Total investments	68,670,523	64,267,323
Cash and cash equivalents	6,283,655	9,906,878
Premiums receivable, net of provision for uncollectible amounts	9,428,166	8,946,899
Receivables - reinsurance contracts	1,436,205	1,301,549
Reinsurance receivables, net of provision for uncollectible amounts	36,551,604	35,575,276
Deferred policy acquisition costs	9,035,966	8,985,981
Intangible assets, net	2,114,601	2,233,530
Property and equipment, net of accumulated depreciation	2,497,138	2,448,042
Other assets	1,371,410	1,330,944
Total assets	137,389,268	134,996,422
Liabilities
Loss and loss adjustment expense reserves	42,151,264	39,912,683
Unearned premiums	40,926,461	40,458,041
Advance premiums	1,414,096	1,006,582
Reinsurance balances payable	2,018,556	2,096,363
Deferred ceding commission revenue	5,902,562	5,956,540
Accounts payable, accrued expenses and other liabilities	2,670,444	3,928,137
Deferred income taxes	1,390,167	1,137,180
Total liabilities	96,473,550	94,495,526
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $.01 par value; authorized 2,500,000 shares
Common stock, $.01 par value; authorized 20,000,000 shares; issued 8,286,452 shares at March 31, 2015 and 8,235,095 shares at December 31, 2014; outstanding 7,343,775 shares at March 31, 2015 and 7,308,757 shares at December 31, 2014	82,865	82,351
Capital in excess of par	32,889,235	32,873,383
Accumulated other comprehensive income	1,456,557	946,332
Retained earnings	8,219,997	8,203,003
Total	42,648,654	42,105,069
Treasury stock, at cost, 942,677 shares at March 31, 2015 and 926,338 shares at December 31, 2014	-1,732,936	-1,604,173
Total stockholders' equity	40,915,718	40,500,896
Total liabilities and stockholders' equity	$137,389,268	$134,996,422

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Condensed Consolidated Balance Sheets Parenthetical
Fixed-maturity securities, held-to-maturity, fair value	$5,465,196	$5,395,054
Fixed-maturity securities, available-for-sale, amortized cost	52,564,513	50,083,441
Equity securities, available-for-sale, cost	$8,766,866	$7,621,309
Stockholders' Equity
Common stock, par value	$0.01	$0.01
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued shares	8,286,452	8,235,095
Common stock, outstanding shares	7,343,775	7,308,757
Preferred stock, par value	$0.01	$0.01
Preferred stock, authorized shares	2,500,000	2,500,000
Treasury stock, Shares	942,677	926,338

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues
Net premiums earned	$10,385,799	$5,926,311
Ceding commission revenue	3,089,404	3,381,283
Net investment income	574,656	378,788
Net realized (losses) gains on sales of investments	-67,494	188,348
Other income	631,191	227,557
Total revenues	14,613,556	10,102,287
Expenses
Loss and loss adjustment expenses	7,063,217	4,324,954
Commission expense	3,412,327	2,582,508
Other underwriting expenses	2,999,155	2,281,749
Other operating expenses	328,498	250,035
Depreciation and amortization	235,662	183,120
Total expenses	14,038,859	9,622,366
Income from operations before taxes	574,697	479,921
Income tax expense	192,198	152,788
Net income	382,499	327,133
Other comprehensive income, net of tax
Gross change in unrealized gains on available-for-sale-securities	705,574	868,744
Reclassification adjustment for losses (gains) included in net income	67,494	-188,348
Net change in unrealized gains	773,068	680,396
Income tax expense related to items of other comprehensive income	-262,843	-231,335
Other comprehensive income, net of tax	510,225	449,061
Comprehensive income	$892,724	$776,194
Earnings per common share:
Basic	$0.05	$0.05
Diluted	$0.05	$0.04
Weighted average common shares outstanding
Basic	7,318,271	7,266,573
Diluted	7,344,563	7,372,149
Dividends declared and paid per common share	$0.05	$0.04

Condensed_Consolidated_Stateme1

Condensed Consolidated Statement of Stockholders' Equity (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, 2014		$82,351	$32,873,383	$946,332	$8,203,003	($1,604,173)	$40,500,896
Beginning Balance, Shares at Dec. 31, 2014		8,235,095				926,338	9,161,433
Stock-based compensation			38,892				38,892
Shares deducted from exercise of stock options for payment of withholding taxes, Shares		-30,755					-30,755
Shares deducted from exercise of stock options for payment of withholding taxes, Amount		-308	-243,354				-243,662
Excess tax benefit from exercise of stock options			221,136				221,136
Exercise of stock options, Shares		82,112					82,112
Exercise of stock options, Amount		822	-822
Acquisition of treasury stock, Shares						16,339	16,339
Acquisition of treasury stock, Amount						-128,763	-128,763
Dividends					-365,505		-365,505
Net income					382,499		382,499
Change in unrealized gains on available-for-sale securities, net of tax				510,225			510,225
Ending Balance, Amount at Mar. 31, 2015		$82,865	$32,889,235	$1,456,557	$8,219,997	($1,732,936)	$40,915,718
Ending Balance, Shares at Mar. 31, 2015		8,286,452				942,677	9,229,129

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows provided by operating activities:
Net income	$382,499	$327,133
Adjustments to reconcile net income to net cash flows provided by operating activities:
Net realized losses (gains) on sale of investments	67,494	-188,348
Depreciation and amortization	235,662	183,120
Amortization of bond premium, net	80,220	82,997
Stock-based compensation	38,892	13,391
Excess tax benefit from exercise of stock options	-221,136
Deferred income tax expense	-9,856	-56,141
(Increase) decrease in operating assets:
Premiums receivable, net	-481,267	-512,538
Receivables - reinsurance contracts	-134,656	116,422
Reinsurance receivables, net	-976,328	-5,970,503
Deferred policy acquisition costs	-49,985	-333,038
Other assets	177,501	46,785
Increase (decrease) in operating liabilities:
Loss and loss adjustment expense reserves	2,238,581	5,540,025
Unearned premiums	468,420	1,130,874
Advance premiums	407,514	389,772
Reinsurance balances payable	-77,807	415,493
Deferred ceding commission revenue	-53,978	133,476
Accounts payable, accrued expenses and other liabilities	-1,257,693	-914,292
Net cash flows provided by operating activities	834,077	404,628
Cash flows used in investing activities:
Purchase - fixed-maturity securities held-to-maturity		-1,566,354
Purchase - fixed-maturity securities available-for-sale	-3,349,181	-10,396,843
Purchase - equity securities available-for-sale	-1,145,558	-2,662,152
Sale or maturity - fixed-maturity securities available-for-sale	716,892	2,176,834
Sale - equity securities available-for-sale		1,287,326
Other investing activities	-162,659	-312,215
Net cash flows used in investing activities	-3,940,506	-11,473,404
Cash flows used in financing activities:
Withholding taxes paid on net exercise of stock options	-243,662
Excess tax benefit from exercise of stock options	221,136
Purchase of treasury stock	-128,763
Dividends paid	-365,505	-290,664
Net cash flows used in financing activities	-516,794	-290,664
Decrease in cash and cash equivalents	-3,623,223	-11,359,440
Cash and cash equivalents, beginning of period	9,906,878	19,922,506
Cash and cash equivalents, end of period	6,283,655	8,563,066
Supplemental disclosures of cash flow information:
Cash paid for income taxes	300,500	400
Supplemental schedule of non-cash investing and financing activities:
Value of shares deducted from exercise of stock options for payment of withholding taxes	$243,662

1_Nature_of_Business_and_Basis

1. Nature of Business and Basis of Presentation	3 Months Ended
1. Nature of Business and Basis of Presentation	Mar. 31, 2015
Notes to Financial Statements
1. Nature of Business and Basis of Presentation	Kingstone Companies, Inc. (referred to herein as "Kingstone" or the “Company”), through its 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 and the Commonwealth of Pennsylvania; however, KICO writes substantially all of its business in New York. Though March 31, 2015, Kingstone, through its wholly owned subsidiary, Payments, Inc., a licensed premium finance company in the State of New York, received fees for placing contracts with a third party licensed premium finance company (see Note 12 – Premium Finance Placement Fees).

	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, 2014 and notes thereto included in the Company’s Annual Report on Form 10-K filed on March 25, 2015. 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 three months ended March 31, 2015 may not be indicative of the results that may be expected for the year ending December 31, 2015.

2_Accounting_Policies

2. Accounting Policies	3 Months Ended
2. Accounting Policies	Mar. 31, 2015
Notes to Financial Statements
2. Accounting Policies	Use of Estimates

	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions, which include the reserves for losses and loss adjustment expenses, are subject to considerable estimation error due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of several years. In addition, estimates and assumptions associated with receivables under reinsurance contracts related to contingent ceding commission revenue require considerable judgment by management. On an on-going basis, management reevaluates its assumptions and the methods of calculating its estimates. Actual results may differ significantly from the estimates and assumptions used in preparing the consolidated financial statements.

	Principles of Consolidation

	The consolidated financial statements consist of Kingstone and its wholly owned subsidiaries. Subsidiaries include: (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 April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU revised guidance to only allow disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity’s operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. The Company adopted this guidance on January 1, 2015 and it did not have any effect on the Company’s consolidated results of operations, financial position or cash flows.

	In May 2014, FASB 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	3 Months Ended
3. Investments	Mar. 31, 2015
Notes to Financial Statements
3. Investments	Available-for-Sale Securities

	The amortized cost and fair value of investments in available-for-sale fixed-maturity securities and equity securities as of March 31, 2015 and December 31, 2014 are summarized as follows:

		31-Mar-15
												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	$13,823,312		$ 511,766		$ (4,373)		$ (5,216)		$14,325,489		$ 502,177

	Corporate and other bonds
	Industrial and miscellaneous	35,933,004		1,262,502		-56,447		-6,664		37,132,395		1,199,391

	Residential mortgage-backed securities	2,808,197		36,707		-1,612		-		2,843,292		35,095
	Total fixed-maturity securities	52,564,513		1,810,975		-62,432		-11,880		54,301,176		1,736,663

	Equity Securities:
	Preferred stocks	3,410,290		57,567		-72		-16,931		3,450,854		40,564
	Common stocks	5,356,576		437,021		-7,342		-		5,786,255		429,679
	Total equity securities	8,766,866		494,588		-7,414		-16,931		9,237,109		470,243

	Total	$61,331,379		$ 2,305,563		$ (69,846)		$ (28,811)		$63,538,285		$ 2,206,906

		31-Dec-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)

	Fixed-Maturity Securities:
	Political subdivisions of States,
	Territories and Possessions	$13,862,141		$ 412,490		$ (23,813)		$ (6,379)		$14,244,439		$ 382,298

	Corporate and other bonds
	Industrial and miscellaneous	36,221,300		803,440		-118,092		-30,228		36,876,420		655,120
	Total fixed-maturity securities	50,083,441		1,215,930		-141,905		-36,607		51,120,859		1,037,418

	Equity Securities:
	Preferred stocks	3,172,632		19,180		-2,647		-62,886		3,126,280		-46,352
	Common stocks	4,448,677		444,950		-		-2,177		4,891,449		442,772
	Total equity securities	7,621,309		464,130		-2,647		-65,063		8,017,729		396,420

	Total	$57,704,750		$ 1,680,060		$ (144,552)		$ (101,670)		$59,138,588		$ 1,433,838

	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 March 31, 2015 and December 31, 2014 is shown below:

		31-Mar-15				31-Dec-14
		Amortized				Amortized
	Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

	Less than one year	$ 357,260		$ 361,005		$ 482,833		$ 487,507
	One to five years	14,056,049		14,579,816		11,640,381		11,943,127
	Five to ten years	30,450,200		31,434,892		32,283,921		32,865,231
	More than 10 years	4,892,807		5,082,171		5,676,306		5,824,994
	Residential mortgage-backed securities	2,808,197		2,843,292		-		-
	Total	$52,564,513		$54,301,176		$50,083,441		$51,120,859

	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 March 31, 2015 and December 31, 2014 are summarized as follows:

	31-Mar-15
											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	$ 606,362		$ 205,656		$ -		$ -		$ 812,018		$ 205,656

Political subdivisions of States,
Territories and Possessions	1,414,362		61,683		-		-26,250		1,449,795		35,433

Corporate and other bonds
Industrial and miscellaneous	3,111,514		142,142		-50,273		-		3,203,383		91,869

Total	$ 5,132,238		$ 409,481		$ (50,273)		$ (26,250)		$ 5,465,196		$ 332,958

	31-Dec-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	$ 606,353		$ 183,200		$ -		$ -		$ 789,553		$ 183,200

Political subdivisions of States,
Territories and Possessions	1,413,303		49,981		-		-12,247		1,451,037		37,734

Corporate and other bonds
Industrial and miscellaneous	3,109,079		98,306		-52,921		-		3,154,464		45,385

Total	$5,128,735		$ 331,487		$ (52,921)		$ (12,247)		$5,395,054		$ 266,319

Held-to-maturity U.S. Treasury securities are held in trust pursuant to the New York State Department of Financial Services’ minimum funds requirement.

A summary of the amortized cost and fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of March 31, 2015 and December 31, 2014 is shown below:

	31-Mar-15				31-Dec-14
	Amortized				Amortized
Remaining Time to Maturity	Cost		Fair Value		Cost		Fair Value

Less than one year	$ -		$ -		$ -		$ -
One to five years	500,000		505,380		-		-
Five to ten years	3,530,867		3,624,128		3,522,927		3,563,401
More than 10 years	1,101,371		1,335,688		1,605,808		1,831,653
Total	$ 5,132,238		$ 5,465,196		$ 5,128,735		$ 5,395,054

Investment Income

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

		Three months ended
		March 31,
		2015		2014

Income:
Fixed-maturity securities		$ 510,955		$ 342,918
Equity securities		122,569		114,513
Cash and cash equivalents		94		20,619
Total		633,618		478,050
Expenses:
Investment expenses		58,962		99,262
Net investment income		$ 574,656		$ 378,788

Proceeds from the sale and maturity of fixed-maturity securities were $716,892 and $2,176,834 for the three months ended March 31, 2015 and 2014, respectively.

Proceeds from the sale of equity securities were $-0- and $1,287,326 for the three months ended March 31, 2015 and 2014, respectively.

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

	Three months ended
	March 31,
	2015		2014

Fixed-maturity securities:
Gross realized gains	$ -		$ 89,256
Gross realized losses	-67,494		-26,399
	-67,494		62,857

Equity securities:
Gross realized gains	-		136,059
Gross realized losses	-		-10,568
	-		125,491

Net realized (losses) gains	$ (67,494)		$ 188,348

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 March 31, 2015, there were 24 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 three months ended March 31, 2015 and 2014. 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 March 31, 2015 and December 31, 2014 as follows:

	31-Mar-15
	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	$ 548,802		$ (4,373)		2		$ 116,919		$ (5,216)		1		$ 665,721	$ (9,589)

Corporate and other
bonds industrial and
miscellaneous	2,555,063		-56,447		7		483,170		-6,664		1		3,038,233	-63,111

Residential mortgage-backed
securities	362,660		-1,612		2		-		-				362,660	-1,612

Total fixed-maturity
securities	$ 3,466,525		$ (62,432)		11		$ 600,089		$ (11,880)		2		$ 4,066,614	$ (74,312)

Equity Securities:
Preferred stocks	$ 731,250		$ (72)		1		$ 940,600		$ (16,931)		4		$ 1,671,850	$ (17,003)
Common stocks	887,495		-7,342		6		-		-		-		887,495	-7,342

Total equity securities	$ 1,618,745		$ (7,414)		7		$ 940,600		$ (16,931)		4		$ 2,559,345	$ (24,345)

Total	$ 5,085,270		$ (69,846)		18		$1,540,689		$ (28,811)		6		$ 6,625,959	$ (98,657)

	31-Dec-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	$ 3,013,648		$ (23,813)		9		$ 126,658		$ (6,379)		1		$ 3,140,306	$ (30,192)

Corporate and other
bonds industrial and
miscellaneous	6,325,579		-118,092		15		714,640		-30,228		2		7,040,219	-148,320

Total fixed-maturity
securities	$ 9,339,227		$ (141,905)		24		$ 841,298		$ (36,607)		3		$10,180,525	$ (178,512)

Equity Securities:
Preferred stocks	$ 656,325		$ (2,647)		1		$1,448,376		$ (62,886)		6		$ 2,104,701	$ (65,533)
Common stocks	-		-		-		267,000		-2,177		1		267,000	-2,177

Total equity securities	$ 656,325		$ (2,647)		1		$1,715,376		$ (65,063)		7		$ 2,371,701	$ (67,710)

Total	$ 9,995,552		$ (144,552)		25		$2,556,674		$ (101,670)		10		$12,552,226	$ (246,222)

4_Fair_Value_Measurements

4. Fair Value Measurements	3 Months Ended
4. Fair Value Measurements	Mar. 31, 2015
Notes to Financial Statements
4. Fair Value Measurements	The Company follows GAAP guidance regarding fair value measurements. The valuation technique used to fair value the financial instruments is the market approach which uses prices and other relevant information generated by market transactions involving identical or comparable assets.

	This guidance establishes a three-level hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets or liabilities fall within different levels of the hierarchy, the classification is based on the lowest level input that is significant to the fair value measurement of the asset or liability. Classification of assets and liabilities within the hierarchy considers the markets in which the assets and liabilities are traded, including during period of market disruption, and the reliability and transparency of the assumptions used to determine fair value. The hierarchy requires the use of observable market data when available. The levels of the hierarchy and those investments included in each are as follows:

	Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities traded in active markets. Included are those investments traded on an active exchange, such as the NASDAQ Global Select Market, U.S. Treasury securities and obligations of U.S. government agencies, together with corporate debt securities that are generally investment grade.

	Level 2—Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Municipal and corporate bonds, and residential mortgage backed securities that are traded in less active markets are classified as Level 2. These securities are valued using market price quotations for recently executed transactions.

	Level 3—Inputs to the valuation methodology are unobservable for the asset or liability and are significant to the fair value measurement. Material assumptions and factors considered in pricing investment securities and other assets may include appraisals, projected cash flows, market clearing activity or liquidity circumstances in the security or similar securities that may have occurred since the prior pricing period.

	The availability of observable inputs varies and is affected by a wide variety of factors. When the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. The degree of judgment exercised by management in determining fair value is greatest for investments categorized as Level 3. For investments in this category, the Company considers prices and inputs that are current as of the measurement date. In periods of market dislocation, as characterized by current market conditions, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause a security to be reclassified between levels.

	The Company’s investments are allocated among pricing input levels at March 31, 2015 and December 31, 2014 as follows:

		31-Mar-15
	($ in thousands)	Level 1	Level 2	Level 3	Total

	Fixed-maturity securities available for sale
	Political subdivisions of
	States, Territories and
	Possessions	$ -	$14,325,489	$ -	$14,325,489

	Corporate and other
	bonds industrial and
	miscellaneous	29,444,211	7,688,184	-	37,132,395

	Residential mortgage-backed securities	-	2,843,292	-	2,843,292
	Total fixed maturities	29,444,211	24,856,965	-	54,301,176
	Equity securities	9,237,109	-	-	9,237,109
	Total investments	$38,681,320	$24,856,965	$ -	$63,538,285

		31-Dec-14
	($ in thousands)	Level 1	Level 2	Level 3	Total

	Fixed-maturity investments available for sale
	Political subdivisions of
	States, Territories and
	Possessions	$ -	$14,244,439	$ -	$14,244,439

	Corporate and other
	bonds industrial and
	miscellaneous	29,257,850	7,618,570	-	36,876,420
	Total fixed maturities	29,257,850	21,863,009	-	51,120,859
	Equity investments	8,017,729	-	-	8,017,729
	Total investments	$37,275,579	$21,863,009	$ -	$59,138,588

5_Fair_Value_of_Financial_Inst

5. Fair Value of Financial Instruments	3 Months Ended
5. Fair Value of Financial Instruments	Mar. 31, 2015
Notes to Financial Statements
5. Fair Value of Financial Instruments	GAAP requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized in the balance sheet, for which it is practicable to estimate fair value. The Company uses the following methods and assumptions in estimating its fair value disclosures for financial instruments:

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

	Cash and cash equivalents: The carrying values of cash and cash equivalents approximate their fair values because of the short-term nature of these instruments.

	Premiums receivable 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:

		31-Mar-15		31-Dec-14
		Carrying Value	Fair Value	Carrying Value	Fair Value

	Fixed-maturity securities held-to-maturity	$5,132,238	$5,465,196	$5,128,735	$5,395,054
	Cash and cash equivalents	6,283,655	6,283,655	9,906,878	9,906,878
	Premiums receivable	9,428,166	9,428,166	8,946,899	8,946,899
	Receivables - reinsurance contracts	1,436,205	1,436,205	1,301,549	1,301,549
	Reinsurance receivables	36,551,604	36,551,604	35,575,276	35,575,276
	Real estate, net of accumulated depreciation	1,749,484	1,816,122	1,762,345	1,816,122
	Reinsurance balances payable	2,018,556	2,018,556	2,096,363	2,096,363

6_Property_and_Casualty_Insura

6. Property and Casualty Insurance Activity	3 Months Ended
6. Property and Casualty Insurance Activity	Mar. 31, 2015
Notes to Financial Statements
6. Property and Casualty Insurance Activity	Premiums Earned

	Premiums written, ceded and earned are as follows:

		Direct		Assumed	Ceded		Net

	Three months ended March 31, 2015
	Premiums written	$ 19,489,429		$ 7,911	$ (8,619,406)		$ 10,877,934
	Change in unearned premiums	-472,331		3,912	-23,716		-492,135
	Premiums earned	$ 19,017,098		$ 11,823	$ (8,643,122)		$ 10,385,799

	Three months ended March 31, 2014
	Premiums written	$ 16,347,445		$ 7,647	$ (9,769,829)		$ 6,585,263
	Change in unearned premiums	-1,133,528		2,654	471,922		-658,952
	Premiums earned	$ 15,213,917		$ 10,301	$ (9,297,907)		$ 5,926,311

	Premium receipts in advance of the policy effective date are recorded as advance premiums. The balance of advance premiums as of March 31, 2015 and December 31, 2014 was approximately $1,414,000 and $1,007,000, 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:

			Three months ended
			March 31,
			2015			2014

	Balance at beginning of period		$	39,912,683		$	34,503,229
	Less reinsurance recoverables			-18,249,526			-17,363,975
	Net balance, beginning of period			21,663,157			17,139,254

	Incurred related to:
	Current year			6,956,761			4,121,732
	Prior years			106,456			203,222
	Total incurred			7,063,217			4,324,954

	Paid related to:
	Current year			1,685,306			1,082,950
	Prior years			3,201,258			1,455,086
	Total paid			4,886,564			2,538,036

	Net balance at end of period			23,839,810			18,926,172
	Add reinsurance recoverables			18,311,454			21,117,082
	Balance at end of period		$	42,151,264		$	40,043,254

	Incurred losses and LAE are net of reinsurance recoveries under reinsurance contracts of $5,448,387 and $6,718,463 for the three months ended March 31, 2015 and 2014, respectively.

	Prior year incurred loss and LAE development is based upon estimates by line of business and accident year. Prior year loss development incurred during the three months ended March 31, 2015 and 2014 was $106,456 and $203,222, respectively. The Company’s management continually monitors claims activity to assess the appropriateness of carried case and incurred but not reported (“IBNR”) reserves, giving consideration to Company and industry trends.

	The reserving process for loss and LAE reserves provides for the Company’s best estimate at a particular point in time of the ultimate unpaid cost of all losses and LAE incurred, including settlement and administration of losses, and is based on facts and circumstances then known 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 LAE. The amount of loss and LAE 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 LAE reserves for unreported claims and development on known claims (IBNR 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 unreported claims (‘pure’ IBNR) for accident years 2011 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.

Commercial Auto Line of Business

Effective October 1, 2014 the Company decided that it would no longer accept applications for new commercial auto policies. The action was taken following a series of underwriting and pricing measures which were intended to improve the profitability of this line of business. The actions taken did not yield the hoped for results. In February 2015, the Company made the decision that it will no longer offer renewals on its existing commercial auto policies beginning with those that expire on or after May 1, 2015. The Company had 599 and 730 commercial auto policies in force as of March 31, 2015 and December 31, 2014, respectively.

Reinsurance

The Company’s quota share reinsurance treaty in effect for the three months ended March 31, 2015 for its Personal Lines business, which primarily consists of homeowners’ policies, were covered under the July 1, 2014/June 30, 2015 treaty year. The Company did not renew its expiring Commercial Lines quota share reinsurance treaty on July 1, 2014. The Company’s quota share reinsurance treaties in effect for the three months ended March 31, 2014 for both its Personal Lines business and Commercial Lines business were covered under the July 1, 2013/June 30, 2014 treaty year. 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 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, 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
		to		to
Line of Busines		30-Jun-15		30-Jun-14

Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded		55%		75%
Risk retained		$ 360,000		$ 300,000
Losses per occurrence subject to quota share reinsurance coverage		$ 800,000		$ 1,200,000
Excess of loss coverage above quota share coverage		$ 3,200,000		$ 1,700,000
		in excess of		in excess of
		$ 800,000		$ 1,200,000
Total reinsurance coverage per occurrence		$ 3,640,000		$ 2,600,000
Losses per occurrence subject to reinsurance coverage		$ 4,000,000		$ 2,900,000
Expiration date		30-Jun-15		30-Jun-15

Personal Umbrella
Quota share treaty:
Percent ceded - first million dollars of coverage		90%		90%
Percent ceded - excess of one million dollars of coverage		100%		100%
Total reinsurance coverage per occurrence		$ 2,900,000		$ 1,900,000
Losses per occurrence subject to quota share reinsurance coverage		$ 3,000,000		$ 2,000,000
Expiration date		30-Jun-15		30-Jun-14

Commercial Lines:
General liability commercial policies, except for commercial auto
Quota share treaty:
Percent ceded (terminated effective July 1, 2014)		None		25%
Risk retained		$ 400,000		$ 300,000
Losses per occurrence subject to quota share reinsurance coverage		None		$ 400,000
Excess of loss coverage above quota share coverage		$ 3,600,000		$ 2,500,000
		in excess of		in excess of
		$ 400,000		$ 400,000
Total reinsurance coverage per occurrence		$ 3,600,000		$ 2,600,000
Losses per occurrence subject to reinsurance coverage		$ 4,000,000		$ 2,900,000

Commercial Auto:
Excess of loss coverage in excess of risk retained		$ 1,700,000		$ 1,700,000
		in excess of		in excess of
		$ 300,000		$ 300,000
Catastrophe Reinsurance:
Initial loss subject to personal lines quota share treaty		$ 4,000,000		$ 4,000,000
Risk retained per catastrophe occurrence (1)		$ 1,800,000		$ 1,000,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)		$137,000,000		$ 86,000,000

-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. Effective July 1, 2014, the duration of a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone has been extended to 96 consecutive hours from 72 consecutive hours.

-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 Retained	Extent of Loss		Risk 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 of 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 for the three months ended March 31, 2015 are attributable to contracts for the July 1, 2014/June 30, 2015 treaty year (“2014/2015 Treaties”). The Company’s estimated ultimate treaty year loss ratios for treaties in effect for the three months ended March 31, 2014 are attributable to contracts for the July 1, 2013/June 30, 2014 treaty year (“2013/2014 Treaties”).

Treaties in effect for the three months ended March 31, 2015

The Company’s estimated ultimate loss ratios (“Loss Ratios”) for the period July 1, 2014 through March 31, 2015, which are attributable to contracts for the 2014/2015 Treaties were lower than the contractual Loss Ratios at which the provisional ceding commissions are earned. As a result of severe winter weather during the three months ended March 31, 2015, the Loss Ratios attributable to these treaties as of March 31, 2015 were greater than the Loss Ratios as of December 31, 2014. Accordingly, for the three months ended March 31, 2015, the Company’s contingent ceding commission earned was reduced as a result of the increase in estimated Loss Ratios for the 2014/2015 Treaties.

Treaties in effect for the three months ended March 31, 2014

The Company’s estimated ultimate loss ratios (“Loss Ratios”) for the period July 1, 2013 through March 31, 2014, which are attributable to contracts for the 2013/2014 Treaties were lower than the contractual Loss Ratios at which the provisional ceding commissions are earned. As a result of severe winter weather during the three months ended March 31, 2014, the Loss Ratios attributable to these treaties as of March 31, 2014 were greater than the Loss Ratios as of December 31, 2013. Accordingly, for the three months ended March 31, 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.

In addition to the treaties that were in effect for three months ended March 31, 2015 and 2014, 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
	March 31,
	2015		2014

Provisional ceding commissions earned	$ 2,915,029		$ 3,376,876
Contingent ceding commissions earned	174,375		4,407
	$ 3,089,404		$ 3,381,283

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.

7_Bank_Line_of_Credit

7. Bank Line of Credit	3 Months Ended
7. Bank Line of Credit	Mar. 31, 2015
Notes to Financial Statements
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 March 31, 2015.

	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 is used for general corporate purposes.

	There were no outstanding balances under the bank line of credit as of March 31, 2015 and December 31, 2014, or during the three months ended March 31, 2015 and 2014. There are no other fees in connection with this credit line.

8_Stockholders_Equity

8. Stockholders' Equity	3 Months Ended
8. Stockholders' Equity	Mar. 31, 2015
Notes to Financial Statements
8. Stockholders' Equity	Dividend Declared

	Dividends declared and paid on Common Stock were $365,505 and $290,664 for the three months ended March 31, 2015 and 2014, respectively. The Company’s Board of Directors approved a quarterly dividend on May 12, 2015 of $.05 per share payable in cash on June 15, 2015 to stockholders of record as of June 1, 2015 (see Note 13).

	Stock Options

	Pursuant to the Company’s 2005 Equity Participation Plan (the “2005 Plan”), which provides for the issuance of incentive stock options, non-statutory stock options and restricted stock, a maximum of 700,000 shares of the Company’s Common Stock are permitted to be issued pursuant to options granted and restricted stock issued. Effective August 12, 2014, the Company adopted the 2014 Equity Participation Plan (the “2014 Plan”) pursuant to which, subject to shareholder approval on or before August 12, 2015 a maximum of 700,000 shares of common stock of the Company are authorized to be issued pursuant to the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock and stock bonuses. Incentive stock options granted under the 2014 Plan and 2005 Plan expire no later than ten years from the date of grant (except no later than five years for a grant to a 10% stockholder). The Board of Directors or the Stock Option Committee determines the expiration date with respect to non-statutory stock options and the vesting provisions for restricted stock granted under the 2014 Plan and 2005 Plan.

	The results of operations for the three months ended March 31, 2015 and 2014 include stock-based stock option compensation expense totaling approximately $39,000 and $13,000, respectively. Stock-based compensation expense related to stock options for the three months ended March 31, 2015 and 2014 is net of estimated forfeitures of 17% and 20%, respectively. Such amounts have been included in the condensed consolidated statements of income and comprehensive income within other operating expenses.

	Stock-based compensation expense in 2015 and 2014 is the estimated fair value of options granted amortized on a straight-line basis over the requisite service period for the entire portion of the award. No stock options were granted during the three months ended March 31, 2015 and 2014.

	A summary of option activity under the Company’s 2005 Plan for the three months ended March 31, 2015 is as follows:

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

	Outstanding at January 1, 2015	421,250	$ 5.16	3.13	$ 1,258,013

	Granted	-	$ -	-	$ -
	Exercised	-120,000	$ 2.50	-	$ 650,400
	Forfeited	-	$ -	-	$ -

	Outstanding at March 31, 2015 (1)	301,250	$ 6.22	4.04	$ 393,238

	Vested and Exercisable at March 31, 2015	112,500	$ 6.06	3.97	$ 165,163

	(1) On August 12, 2014, an additional 50,000 options were granted under the 2014 Plan, which is subject to shareholder approval.

	The aggregate intrinsic value of options outstanding and options exercisable at March 31, 2015 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 $7.53 closing price of the Company’s Common Stock on March 31, 2015. The total intrinsic value of options exercised in the three months ended March 31, 2015 was $650,400, determined as of the date of exercise.

	Participants in the 2014 Plan and 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”). All of the 120,000 options exercised during the three months ended March 31, 2015 were Net Exercises. No options were exercised during the three months ended March 31, 2014

	As of March 31, 2015, the fair value of unamortized compensation cost related to unvested stock option awards was approximately $123,000, respectively. Unamortized compensation cost as of March 31, 2015 is expected to be recognized over a remaining weighted-average vesting period of .99 years.

	As of March 31, 2015, there were 1,135 shares reserved for grants under the 2005 Plan and 650,000 shares reserved for grants under the 2014 Plan, which is subject to shareholder approval.

9_Income_Taxes

9. Income Taxes	3 Months Ended
9. Income Taxes	Mar. 31, 2015
Notes to Financial Statements
9. Income Taxes	Income taxes for the three months ended March 31, 2015 and 2014 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 three months ended March 31, 2015 and 2014 was 33.4% and 31.8%, 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:

		March 31,		December 31,
		2015		2014

	Deferred tax asset:
	Net operating loss carryovers (1)	$ 178,199		$ 211,550
	Claims reserve discount	619,504		562,941
	Unearned premium	1,802,536		1,741,360
	Deferred ceding commission revenue	2,006,871		2,025,224
	Other	50,852		88,148
	Total deferred tax assets	4,657,962		4,629,223

	Deferred tax liability:
	Investment in KICO (2)	1,169,000		1,169,000
	Deferred acquisition costs	3,072,228		3,055,234
	Intangibles	718,964		759,400
	Depreciation and amortization	331,059		291,689
	Net unrealized appreciation of securities - available for sale	756,878		491,080
	Total deferred tax liabilities	6,048,129		5,766,403

	Net deferred income tax liability	$ (1,390,167)		$ (1,137,180)
	_____________________________
	(1) The deferred tax assets from net operating loss carryovers (“NOL”) are as follows:


		March 31,	December 31,
	Type of NOL	2015	2014	Expiration
	State only (A)	$ 481,125	$ 567,188	31-Dec-35
	Valuation allowance	(316,526)	(372,638)
	State only, net of valuation allowance	164,599	194,550
	Amount subject to Annual Limitation, federal only (B)	13,600	17,000	31-Dec-19
	Total deferred tax asset from net operating loss carryovers	$ 178,199	$ 211,550

	(A) Kingstone generates operating losses for state purposes and has prior year NOLs available. The state NOL as of March 31, 2015 and December 31, 2014 was approximately $7,402,000 and $6,834,000, 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 NOLs over their remaining lives, which expire between 2027 and 2035. Effective January 1, 2015, the enacted state tax rate was reduced to 6.5% from 8.33%, resulting in a current period decrease in the available benefit of the state NOL, net of the corresponding valuation adjustment. The decrease in the available benefit of the state net NOL increased the tax provision in the current period by $49,881.
	(B) The Company has an NOL of $40,000 that is subject to Internal Revenue Code Section 382, which places a limitation on the utilization of the federal NOL 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 three months ended March 31, 2015 and 2014. If any had been recognized these would be reported in income tax expense.

	IRS Tax Audit

	The tax returns for years ended December 31, 2011 through 2014 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	3 Months Ended
10. Net Income Per Common Share	Mar. 31, 2015
Notes to Financial Statements
10. Net Income Per Common Share	Basic net earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options. The computation of diluted earnings per share excludes those options with an exercise price in excess of the average market price of the Company’s common shares during the periods presented.

	The computation of diluted earnings per share excludes outstanding options in periods where the exercise of such options would be anti-dilutive. For the three months ended March 31, 2015 and 2014, the inclusion of 77,500 and 7,500 options in the computation of diluted earnings per share would have been anti-dilutive for the periods and, as a result, the weighted average number of common shares used in the calculation of diluted earnings per 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 share follows:

		Three months ended
		March 31,
		2015	2014

	Weighted average number of shares outstanding	7,318,271	7,266,573
	Effect of dilutive securities, common share equivalents	26,292	105,576

	Weighted average number of shares outstanding,
	used for computing diluted earnings per share	7,344,563	7,372,149

11_Commitments_and_Contingenci

11. Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
11. Commitments and Contingencies	Litigation

	From time to time, the Company is involved in various legal proceedings in the ordinary course of business. For example, to the extent a claim asserted by a third party in a law suit against one of the Company’s insureds covered by a particular policy, the Company may have a duty to defend the insured party against the claim. These claims may relate to bodily injury, property damage or other compensable injuries as set forth in the policy. Such proceedings are considered in estimating the liability for loss and LAE expenses. The Company is not subject to any other pending legal proceedings that management believes are likely to have a material adverse effect on the financial statements.

	State Insurance Regulation

	In the aftermath of Superstorm Sandy, the New York State Department of Financial Services (the “DFS”) 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 cooperated with the DFS in connection with its investigation. On March 14, 2013, KICO supplied requested information and met with the DFS on May 23, 2013. KICO has not received a response from the DFS since its meeting on May 23, 2013 and believes that such matter will not have any effect on the Company’s financial position or results of operations.
	Office Lease

	On March 27, 2015, the Company entered into a lease agreement for an additional office facility for KICO located in Valley Stream, NY under a non-cancelable operating lease. In addition to the base rental costs, occupancy lease agreements generally provide for rent escalations resulting from increased assessments from real estate taxes and other charges.

	The lease commencement date will be determined upon the completion of landlord provided construction, which the Company expects to be on or about July 1, 2015. Rent commencement begins six months after the lease commencement date. The lease has a term of seven years and six months.

	Rent expense under the lease will be recognized on a straight-line basis over the lease term.

	As of March 31, 2015, aggregate future minimum rental commitments under this agreement are as follows:

	For the Year
	Ending
	December 31,	Total
	2015	$ -
	2016	100,750
	2017	104,276
	2018	107,926
	2019	111,703
	Thereafter	359,119
	Total	$ 783,774

	There was no rent expense for the three months March 31, 2015 and 2014.

12_Premium_Finance_Placement_F

12. Premium Finance Placement Fees	3 Months Ended
12. Premium Finance Placement Fees	Mar. 31, 2015
Notes to Financial Statements
12. Premium Finance Placement Fees	The Company’s wholly owned subsidiary, Payments Inc. (“Payments”), is licensed as a premium finance agency in the state of New York. Prior to February 1, 2008, Payments provided premium financing in connection with the obtaining of insurance policies. Effective February 1, 2008, Payments sold its outstanding premium finance loan portfolio. The purchaser of the portfolio (the “Purchaser”) agreed that, during the five year period ended February 1, 2013 (which period was extended to February 1, 2015), it would purchase, assume and service all eligible premium finance contracts originated by Payments in the state of New York (the “Agreement”). In connection with such purchases, Payments was 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 was entitled to receive the fees for an additional two years (“Termination Period”) with regard to contracts for policies from the Company’s producers. On March 26, 2015, the Company and the Purchaser agreed to amend the Termination Period to end as of March 31, 2015. The Company received a one-time payment of $350,000 in exchange for the fees that the Company would have received during the Termination Period. The Company’s premium financing business consisted of the placement fees that Payments earned from placing contracts.
	Placement fee revenue included in other income and the related direct expenses included in other operating expenses in the condensed consolidated statements of net income and comprehensive income are as follows (unaudited):

		For the Three Months Ended
		March 31,
		2015	2014

	Placement fee revenue	$ 54,343	$ 69,443
	Early termination fee	350,000	-
	Direct expenses	-12,989	-11,538
	Net income before taxes from placement fees	$ 391,354	$ 57,905

13_Subsequent_Events

13. Subsequent Events	3 Months Ended
13. Subsequent Events	Mar. 31, 2015
Notes to Financial Statements
13. Subsequent Events	The Company has evaluated events that occurred subsequent to March 31, 2015 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 May 12, 2015, the Company’s Board of Directors approved a dividend of $.05 per share payable in cash on June 15, 2015 to stockholders of record as of June 1, 2015.

2_Accounting_Policies_Policies

2. Accounting Policies (Policies)	3 Months Ended
2. Accounting Policies (Policies)	Mar. 31, 2015
Notes to Financial Statements
Use of Estimates	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions, which include the reserves for losses and loss adjustment expenses, are subject to considerable estimation error due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of several years. In addition, estimates and assumptions associated with receivables under reinsurance contracts related to contingent ceding commission revenue require considerable judgment by management. On an on-going basis, management reevaluates its assumptions and the methods of calculating its estimates. Actual results may differ significantly from the estimates and assumptions used in preparing the consolidated financial statements.
Principles of Consolidation	The consolidated financial statements consist of Kingstone and its wholly owned subsidiaries. Subsidiaries include: (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 April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This ASU revised guidance to only allow disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity’s operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. The Company adopted this guidance on January 1, 2015 and it did not have any effect on the Company’s consolidated results of operations, financial position or cash flows.

	In May 2014, FASB 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)	3 Months Ended
3. Investments (Tables)	Mar. 31, 2015
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 March 31, 2015 and December 31, 2014 are summarized as follows:

		31-Mar-15
									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	$13,823,312		$ 511,766		$ (4,373)	$ (5,216)	$14,325,489	$ 502,177

	Corporate and other bonds
	Industrial and miscellaneous	35,933,004		1,262,502		-56,447	-6,664	37,132,395	1,199,391

	Residential mortgage-backed securities	2,808,197		36,707		-1,612	-	2,843,292	35,095
	Total fixed-maturity securities	52,564,513		1,810,975		-62,432	-11,880	54,301,176	1,736,663

	Equity Securities:
	Preferred stocks	3,410,290		57,567		-72	-16,931	3,450,854	40,564
	Common stocks	5,356,576		437,021		-7,342	-	5,786,255	429,679
	Total equity securities	8,766,866		494,588		-7,414	-16,931	9,237,109	470,243

	Total	$61,331,379		$ 2,305,563		$ (69,846)	$ (28,811)	$63,538,285	$ 2,206,906

		31-Dec-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)

	Fixed-Maturity Securities:
	Political subdivisions of States,
	Territories and Possessions	$13,862,141		$ 412,490		$ (23,813)	$ (6,379)	$14,244,439	$ 382,298

	Corporate and other bonds
	Industrial and miscellaneous	36,221,300		803,440		-118,092	-30,228	36,876,420	655,120
	Total fixed-maturity securities	50,083,441		1,215,930		-141,905	-36,607	51,120,859	1,037,418

	Equity Securities:
	Preferred stocks	3,172,632		19,180		-2,647	-62,886	3,126,280	-46,352
	Common stocks	4,448,677		444,950		-	-2,177	4,891,449	442,772
	Total equity securities	7,621,309		464,130		-2,647	-65,063	8,017,729	396,420

	Total	$57,704,750		$ 1,680,060		$ (144,552)	$ (101,670)	$59,138,588	$ 1,433,838
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 March 31, 2015 and December 31, 2014 is shown below:

		31-Mar-15				31-Dec-14
		Amortized				Amortized
	Remaining Time to Maturity	Cost		Fair Value		Cost	Fair Value

	Less than one year	$ 357,260		$ 361,005		$ 482,833	$ 487,507
	One to five years	14,056,049		14,579,816		11,640,381	11,943,127
	Five to ten years	30,450,200		31,434,892		32,283,921	32,865,231
	More than 10 years	4,892,807		5,082,171		5,676,306	5,824,994
	Residential mortgage-backed securities	2,808,197		2,843,292		-	-
	Total	$52,564,513		$54,301,176		$50,083,441	$51,120,859
Schedule of Held to Maturity Securities	The amortized cost and fair value of investments in held-to-maturity fixed-maturity securities as of March 31, 2015 and December 31, 2014 are summarized as follows:

		31-Mar-15
									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	$ 606,362		$ 205,656		$ -	$ -	$ 812,018	$ 205,656

	Political subdivisions of States,
	Territories and Possessions	1,414,362		61,683		-	-26,250	1,449,795	35,433

	Corporate and other bonds
	Industrial and miscellaneous	3,111,514		142,142		-50,273	-	3,203,383	91,869

	Total	$ 5,132,238		$ 409,481		$ (50,273)	$ (26,250)	$ 5,465,196	$ 332,958

		31-Dec-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	$ 606,353		$ 183,200		$ -	$ -	$ 789,553	$ 183,200

	Political subdivisions of States,
	Territories and Possessions	1,413,303		49,981		-	-12,247	1,451,037	37,734

	Corporate and other bonds
	Industrial and miscellaneous	3,109,079		98,306		-52,921	-	3,154,464	45,385

	Total	$5,128,735		$ 331,487		$ (52,921)	$ (12,247)	$5,395,054	$ 266,319
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 March 31, 2015 and December 31, 2014 is shown below:

		31-Mar-15				31-Dec-14
		Amortized				Amortized
	Remaining Time to Maturity	Cost		Fair Value		Cost	Fair Value

	Less than one year	$ -		$ -		$ -	$ -
	One to five years	500,000		505,380		-	-
	Five to ten years	3,530,867		3,624,128		3,522,927	3,563,401
	More than 10 years	1,101,371		1,335,688		1,605,808	1,831,653
	Total	$ 5,132,238		$ 5,465,196		$ 5,128,735	$ 5,395,054
Schedule of Investment Income	Major categories of the Company’s net investment income are summarized as follows:

			Three months ended
			March 31,
			2015		2014

	Income:
	Fixed-maturity securities		$ 510,955		$ 342,918
	Equity securities		122,569		114,513
	Cash and cash equivalents		94		20,619
	Total		633,618		478,050
	Expenses:
	Investment expenses		58,962		99,262
	Net investment income		$ 574,656		$ 378,788
Schedule of Securities with realized gains and losses on investments	The Company’s net realized (losses) gains on investments are summarized as follows:

		Three months ended
		March 31,
		2015		2014

	Fixed-maturity securities:
	Gross realized gains	$ -		$ 89,256
	Gross realized losses	-67,494		-26,399
		-67,494		62,857

	Equity securities:
	Gross realized gains	-		136,059
	Gross realized losses	-		-10,568
		-		125,491

	Net realized (losses) gains	$ (67,494)		$ 188,348
Schedule of Securities with Unrealized Losses	The Company held securities with unrealized losses representing declines that were considered temporary at March 31, 2015 and December 31, 2014 as follows:

		31-Mar-15
		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	$ 548,802		$ (4,373)		2	$ 116,919	$ (5,216)	1	$ 665,721	$ (9,589)

	Corporate and other
	bonds industrial and
	miscellaneous	2,555,063		-56,447		7	483,170	-6,664	1	3,038,233	-63,111

	Residential mortgage-backed
	securities	362,660		-1,612		2	-	-		362,660	-1,612

	Total fixed-maturity
	securities	$ 3,466,525		$ (62,432)		11	$ 600,089	$ (11,880)	2	$ 4,066,614	$ (74,312)

	Equity Securities:
	Preferred stocks	$ 731,250		$ (72)		1	$ 940,600	$ (16,931)	4	$ 1,671,850	$ (17,003)
	Common stocks	887,495		-7,342		6	-	-	-	887,495	-7,342

	Total equity securities	$ 1,618,745		$ (7,414)		7	$ 940,600	$ (16,931)	4	$ 2,559,345	$ (24,345)

	Total	$ 5,085,270		$ (69,846)		18	$1,540,689	$ (28,811)	6	$ 6,625,959	$ (98,657)

		31-Dec-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	$ 3,013,648		$ (23,813)		9	$ 126,658	$ (6,379)	1	$ 3,140,306	$ (30,192)

	Corporate and other
	bonds industrial and
	miscellaneous	6,325,579		-118,092		15	714,640	-30,228	2	7,040,219	-148,320

	Total fixed-maturity
	securities	$ 9,339,227		$ (141,905)		24	$ 841,298	$ (36,607)	3	$10,180,525	$ (178,512)

	Equity Securities:
	Preferred stocks	$ 656,325		$ (2,647)		1	$1,448,376	$ (62,886)	6	$ 2,104,701	$ (65,533)
	Common stocks	-		-		-	267,000	-2,177	1	267,000	-2,177

	Total equity securities	$ 656,325		$ (2,647)		1	$1,715,376	$ (65,063)	7	$ 2,371,701	$ (67,710)

	Total	$ 9,995,552		$ (144,552)		25	$2,556,674	$ (101,670)	10	$12,552,226	$ (246,222)

4_Fair_Value_Measurements_Tabl

4. Fair Value Measurements (Tables)	3 Months Ended
4. Fair Value Measurements (Tables)	Mar. 31, 2015
Notes to Financial Statements
Schedule of Fair Value Measurements	The Company’s investments are allocated among pricing input levels at March 31, 2015 and December 31, 2014 as follows:

		31-Mar-15
	($ in thousands)	Level 1	Level 2	Level 3	Total

	Fixed-maturity securities available for sale
	Political subdivisions of
	States, Territories and
	Possessions	$ -	$14,325,489	$ -	$14,325,489

	Corporate and other
	bonds industrial and
	miscellaneous	29,444,211	7,688,184	-	37,132,395

	Residential mortgage-backed securities	-	2,843,292	-	2,843,292
	Total fixed maturities	29,444,211	24,856,965	-	54,301,176
	Equity securities	9,237,109	-	-	9,237,109
	Total investments	$38,681,320	$24,856,965	$ -	$63,538,285

		31-Dec-14
	($ in thousands)	Level 1	Level 2	Level 3	Total

	Fixed-maturity investments available for sale
	Political subdivisions of
	States, Territories and
	Possessions	$ -	$14,244,439	$ -	$14,244,439

	Corporate and other
	bonds industrial and
	miscellaneous	29,257,850	7,618,570	-	36,876,420
	Total fixed maturities	29,257,850	21,863,009	-	51,120,859
	Equity investments	8,017,729	-	-	8,017,729
	Total investments	$37,275,579	$21,863,009	$ -	$59,138,588

5_Fair_Value_of_Financial_Inst1

5. Fair Value of Financial Instruments (Tables)	3 Months Ended
5. Fair Value of Financial Instruments (Tables)	Mar. 31, 2015
Notes to Financial Statements
Schedule of Fair Value of Financial Instruments	The estimated fair values of the Company’s financial instruments are as follows:

		31-Mar-15		31-Dec-14
		Carrying Value	Fair Value	Carrying Value	Fair Value

	Fixed-maturity securities held-to-maturity	$5,132,238	$5,465,196	$5,128,735	$5,395,054
	Cash and cash equivalents	6,283,655	6,283,655	9,906,878	9,906,878
	Premiums receivable	9,428,166	9,428,166	8,946,899	8,946,899
	Receivables - reinsurance contracts	1,436,205	1,436,205	1,301,549	1,301,549
	Reinsurance receivables	36,551,604	36,551,604	35,575,276	35,575,276
	Real estate, net of accumulated depreciation	1,749,484	1,816,122	1,762,345	1,816,122
	Reinsurance balances payable	2,018,556	2,018,556	2,096,363	2,096,363

6_Property_and_Casualty_Insura1

6. Property and Casualty Insurance Activity (Tables)	3 Months Ended
6. Property and Casualty Insurance Activity (Tables)	Mar. 31, 2015
Notes to Financial Statements
Schedule of Earned Premiums	Premiums written, ceded and earned are as follows:

		Direct		Assumed		Ceded		Net

	Three months ended March 31, 2015
	Premiums written	$ 19,489,429		$ 7,911		$ (8,619,406)		$ 10,877,934
	Change in unearned premiums	-472,331		3,912		-23,716		-492,135
	Premiums earned	$ 19,017,098		$ 11,823		$ (8,643,122)		$ 10,385,799

	Three months ended March 31, 2014
	Premiums written	$ 16,347,445		$ 7,647		$ (9,769,829)		$ 6,585,263
	Change in unearned premiums	-1,133,528		2,654		471,922		-658,952
	Premiums earned	$ 15,213,917		$ 10,301		$ (9,297,907)		$ 5,926,311
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:

			Three months ended
			March 31,
			2015				2014

	Balance at beginning of period		$	39,912,683			$	34,503,229
	Less reinsurance recoverables			-18,249,526				-17,363,975
	Net balance, beginning of period			21,663,157				17,139,254

	Incurred related to:
	Current year			6,956,761				4,121,732
	Prior years			106,456				203,222
	Total incurred			7,063,217				4,324,954

	Paid related to:
	Current year			1,685,306				1,082,950
	Prior years			3,201,258				1,455,086
	Total paid			4,886,564				2,538,036

	Net balance at end of period			23,839,810				18,926,172
	Add reinsurance recoverables			18,311,454				21,117,082
	Balance at end of period		$	42,151,264			$	40,043,254
Schedule of line of business			Treaty Year
			1-Jul-14		1-Jul-13
			to		to
	Line of Busines		30-Jun-15		30-Jun-14

	Personal Lines:
	Homeowners, dwelling fire and canine legal liability
	Quota share treaty:
	Percent ceded		55%		75%
	Risk retained		$ 360,000		$ 300,000
	Losses per occurrence subject to quota share reinsurance coverage		$ 800,000		$ 1,200,000
	Excess of loss coverage above quota share coverage		$ 3,200,000		$ 1,700,000
			in excess of		in excess of
			$ 800,000		$ 1,200,000
	Total reinsurance coverage per occurrence		$ 3,640,000		$ 2,600,000
	Losses per occurrence subject to reinsurance coverage		$ 4,000,000		$ 2,900,000
	Expiration date		30-Jun-15		30-Jun-15

	Personal Umbrella
	Quota share treaty:
	Percent ceded - first million dollars of coverage		90%		90%
	Percent ceded - excess of one million dollars of coverage		100%		100%
	Total reinsurance coverage per occurrence		$ 2,900,000		$ 1,900,000
	Losses per occurrence subject to quota share reinsurance coverage		$ 3,000,000		$ 2,000,000
	Expiration date		30-Jun-15		30-Jun-14

	Commercial Lines:
	General liability commercial policies, except for commercial auto
	Quota share treaty:
	Percent ceded (terminated effective July 1, 2014)		None		25%
	Risk retained		$ 400,000		$ 300,000
	Losses per occurrence subject to quota share reinsurance coverage		None		$ 400,000
	Excess of loss coverage above quota share coverage		$ 3,600,000		$ 2,500,000
			in excess of		in excess of
			$ 400,000		$ 400,000
	Total reinsurance coverage per occurrence		$ 3,600,000		$ 2,600,000
	Losses per occurrence subject to reinsurance coverage		$ 4,000,000		$ 2,900,000

	Commercial Auto:
	Excess of loss coverage in excess of risk retained		$ 1,700,000		$ 1,700,000
			in excess of		in excess of
			$ 300,000		$ 300,000
	Catastrophe Reinsurance:
	Initial loss subject to personal lines quota share treaty		$ 4,000,000		$ 4,000,000
	Risk retained per catastrophe occurrence (1)		$ 1,800,000		$ 1,000,000
	Catastrophe loss coverage in excess of quota share coverage (2) (3)		$137,000,000		$ 86,000,000
Schedule of Single maximum risks under treaties			July 1, 2014 - June 30, 2015				July 1, 2013 - June 30, 2014
	Treaty		Extent of Loss		Risk Retained		Extent of Loss		Risk 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%
Schedule of Ceding Commission Revenue		Three months ended
		March 31,
		2015		2014

	Provisional ceding commissions earned	$ 2,915,029		$ 3,376,876
	Contingent ceding commissions earned	174,375		4,407
		$ 3,089,404		$ 3,381,283

8_Stockholders_Equity_Tables

8. Stockholders' Equity (Tables)	3 Months Ended
8. Stockholders' Equity (Tables)	Mar. 31, 2015
Notes to Financial Statements
Schedule of Stock Options Activity	A summary of option activity under the Company’s 2005 Plan for the three months ended March 31, 2015 is as follows:

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

	Outstanding at January 1, 2015	421,250	$ 5.16	3.13	$ 1,258,013

	Granted	-	$ -	-	$ -
	Exercised	-120,000	$ 2.50	-	$ 650,400
	Forfeited	-	$ -	-	$ -

	Outstanding at March 31, 2015 (1)	301,250	$ 6.22	4.04	$ 393,238

	Vested and Exercisable at March 31, 2015	112,500	$ 6.06	3.97	$ 165,163

	(1) On August 12, 2014, an additional 50,000 options were granted under the 2014 Plan, which is subject to shareholder approval.

9_Income_Taxes_Tables

9. Income Taxes (Tables)	3 Months Ended
9. Income Taxes (Tables)	Mar. 31, 2015
Notes to Financial Statements
Schedule of Deferrred Tax Assets and Liabilities		March 31,		December 31,
		2015		2014

	Deferred tax asset:
	Net operating loss carryovers (1)	$ 178,199		$ 211,550
	Claims reserve discount	619,504		562,941
	Unearned premium	1,802,536		1,741,360
	Deferred ceding commission revenue	2,006,871		2,025,224
	Other	50,852		88,148
	Total deferred tax assets	4,657,962		4,629,223

	Deferred tax liability:
	Investment in KICO (2)	1,169,000		1,169,000
	Deferred acquisition costs	3,072,228		3,055,234
	Intangibles	718,964		759,400
	Depreciation and amortization	331,059		291,689
	Net unrealized appreciation of securities - available for sale	756,878		491,080
	Total deferred tax liabilities	6,048,129		5,766,403

	Net deferred income tax liability	$ (1,390,167)		$ (1,137,180)
Losses subject to Annual Limitation
		March 31,	December 31,
	Type of NOL	2015	2014	Expiration
	State only (A)	$ 481,125	$ 567,188	31-Dec-35
	Valuation allowance	(316,526)	(372,638)
	State only, net of valuation allowance	164,599	194,550
	Amount subject to Annual Limitation, federal only (B)	13,600	17,000	31-Dec-19
	Total deferred tax asset from net operating loss carryovers	$ 178,199	$ 211,550

10_Net_Income_Per_Common_Share1

10. Net Income Per Common Share (Tables)	3 Months Ended
10. Net Income Per Common Share (Tables)	Mar. 31, 2015
Earnings per common share:
Schedule of Net Income Per Common Share		Three months ended
		March 31,
		2015	2014

	Weighted average number of shares outstanding	7,318,271	7,266,573
	Effect of dilutive securities, common share equivalents	26,292	105,576

	Weighted average number of shares outstanding,
	used for computing diluted earnings per share	7,344,563	7,372,149

12_Premium_Finance_Placement_F1

12. Premium Finance Placement Fees (Tables)	3 Months Ended
12. Premium Finance Placement Fees (Tables)	Mar. 31, 2015
Premium Finance Placement Fees Tables
Schedule of peremium finance placement fees		For the Three Months Ended
		March 31,
		2015	2014

	Placement fee revenue	$ 54,343	$ 69,443
	Early termination fee	350,000	-
	Direct expenses	-12,989	-11,538
	Net income before taxes from placement fees	$ 391,354	$ 57,905

3_Investments_Details

3. Investments (Details) (USD $)	3 Months Ended	12 Months Ended
3. Investments (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Cost or Amortized Cost	$61,331,379	$57,704,750
Gross Unrealized Gains	2,305,563	1,680,060
Gross Unrealized Losses-Less than 12 Months	-69,846	-144,552
Gross Unrealized Loss-More than 12 Months	-28,811	-101,670
Fair Value	63,538,285	59,138,588
Net Unrealized Gains/(Losses)	2,206,906	1,433,838
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions
Cost or Amortized Cost	13,823,312	13,862,141
Gross Unrealized Gains	511,766	412,490
Gross Unrealized Losses-Less than 12 Months	-4,373	-23,813
Gross Unrealized Loss-More than 12 Months	-5,216	-6,379
Fair Value	14,325,489	14,244,439
Net Unrealized Gains/(Losses)	502,177	382,298
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous
Cost or Amortized Cost	35,933,004	36,221,300
Gross Unrealized Gains	1,262,502	803,440
Gross Unrealized Losses-Less than 12 Months	-56,447	-118,092
Gross Unrealized Loss-More than 12 Months	-6,664	-30,228
Fair Value	37,132,395	36,876,420
Net Unrealized Gains/(Losses)	1,199,391	655,120
Fixed Maturity Securities Residential Mortgage-backed securities [Member]
Cost or Amortized Cost	2,808,197
Gross Unrealized Gains	36,707
Gross Unrealized Losses-Less than 12 Months	-1,612
Gross Unrealized Loss-More than 12 Months	0
Fair Value	2,843,292
Net Unrealized Gains/(Losses)	35,095
Fixed Maturity Securities Total Fixed Maturity Securities
Cost or Amortized Cost	52,564,513	50,083,441
Gross Unrealized Gains	1,810,975	1,215,930
Gross Unrealized Losses-Less than 12 Months	-62,432	-141,905
Gross Unrealized Loss-More than 12 Months	-11,880	-36,607
Fair Value	54,301,176	51,120,859
Net Unrealized Gains/(Losses)	1,736,663	1,037,418
Equity Securities Preferred Stocks
Cost or Amortized Cost	3,410,290	3,172,632
Gross Unrealized Gains	57,567	19,180
Gross Unrealized Losses-Less than 12 Months	-72	-2,647
Gross Unrealized Loss-More than 12 Months	-16,931	-62,886
Fair Value	3,450,854	3,126,280
Net Unrealized Gains/(Losses)	40,564	-46,352
Equity Securities Common Stocks
Cost or Amortized Cost	5,356,576	4,448,677
Gross Unrealized Gains	437,021	444,950
Gross Unrealized Losses-Less than 12 Months	-7,342	0
Gross Unrealized Loss-More than 12 Months	0	-2,177
Fair Value	5,786,255	4,891,449
Net Unrealized Gains/(Losses)	429,679	442,772
Equity Securities Total Equity Securities
Cost or Amortized Cost	8,766,866	7,621,309
Gross Unrealized Gains	494,588	464,130
Gross Unrealized Losses-Less than 12 Months	-7,414	-2,647
Gross Unrealized Loss-More than 12 Months	-16,931	-65,063
Fair Value	9,237,109	8,017,729
Net Unrealized Gains/(Losses)	$470,243	$396,420

3_Investments_Details_1

3. Investments (Details 1) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Amortized Cost	$52,564,513	$50,083,441
Fair Value	54,301,176	51,120,859
Less Than One Year
Amortized Cost	357,260	482,833
Fair Value	361,005	487,507
One To Five Years
Amortized Cost	14,056,049	11,640,381
Fair Value	14,579,816	11,943,127
Five To Ten Years
Amortized Cost	30,450,200	32,283,921
Fair Value	31,434,892	32,865,231
More Than 10 Years
Amortized Cost	4,892,807	5,676,306
Fair Value	5,082,171	5,824,994
Residential mortgage-backed securities
Amortized Cost	2,808,197	0
Fair Value	$2,843,292	$0

3_Investments_Details_2

3. Investments (Details 2) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Cost or Amortized Cost	$5,132,238	$5,128,735
Gross Unrealized Gains	409,481	331,487
Gross Unrealized Losses-Less than 12 Months	-50,273	-52,921
Gross Unrealized Loss-More than 12 Months	-26,250	-12,247
Fair Value	5,465,196	5,395,054
Net Unrealized Gains/(Losses)	332,958	266,319
US Treasury Securities
Cost or Amortized Cost	606,362	606,353
Gross Unrealized Gains	205,656	183,200
Gross Unrealized Losses-Less than 12 Months	0	0
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	812,018	789,553
Net Unrealized Gains/(Losses)	205,656	183,200
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions
Cost or Amortized Cost	1,414,362	1,413,303
Gross Unrealized Gains	61,683	49,981
Gross Unrealized Losses-Less than 12 Months	0	0
Gross Unrealized Loss-More than 12 Months	-26,250	-12,247
Fair Value	1,449,795	1,451,037
Net Unrealized Gains/(Losses)	35,433	37,734
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous
Cost or Amortized Cost	3,111,514	3,109,079
Gross Unrealized Gains	142,142	98,306
Gross Unrealized Losses-Less than 12 Months	-50,273	-52,921
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	3,203,383	3,154,464
Net Unrealized Gains/(Losses)	$91,869	$45,385

3_Investments_Details_3

3. Investments (Details 3) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Amortized Cost	$5,132,238	$5,128,735
Fair Value	5,465,196	5,395,054
Less Than One Year
Amortized Cost	0	0
Fair Value	0	0
One To Five Years
Amortized Cost	500,000	0
Fair Value	505,380	0
Five To Ten Years
Amortized Cost	3,530,867	3,522,927
Fair Value	3,624,128	3,563,401
More Than 10 Years
Amortized Cost	1,101,371	1,605,808
Fair Value	$1,335,688	$1,831,653

3_Investments_Details_4

3. Investments (Details 4) (USD $)	3 Months Ended
3. Investments (Details 4) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Income:
Fixed-maturity securities	$510,955	$342,918
Equity securities	122,569	114,513
Cash and cash equivalents	94	20,619
Total	633,618	478,050
Expenses:
Investment expenses	58,962	99,262
Net investment income	$574,656	$378,788

3_Investments_Details_5

3. Investments (Details 5) (USD $)	3 Months Ended
3. Investments (Details 5) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Fixed-maturity securities:
Gross realized gains	$0	$89,256
Gross realized losses	-67,494	-26,399
Total	-67,494	62,857
Equity securities:
Gross realized gains	0	136,059
Gross realized losses	0	-10,568
Total equity securities	0	125,491
Net realized (losses) gains	($67,494)	$188,348

3_Investments_Details_6

3. Investments (Details 6) (USD $)	3 Months Ended	12 Months Ended
3. Investments (Details 6) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Fair Value-Less than 12 months	$5,085,270	$9,995,552
Unrealized Losses-Less than 12 Months	-69,846	-144,552
No. of Positions Held-Less than 12 Months	18	25
Fair Value-12 months or more	1,540,689	2,556,674
Unrealized Losses-12 months or more	-28,811	-101,670
No. of Positions Held-12 months or more	6	10
Aggregate Fair Value-Total	6,625,959	12,552,226
Unrealized Losses-Total	-98,657	-246,222
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions
Fair Value-Less than 12 months	548,802	3,013,648
Unrealized Losses-Less than 12 Months	-4,373	-23,813
No. of Positions Held-Less than 12 Months	2	9
Fair Value-12 months or more	116,919	126,658
Unrealized Losses-12 months or more	-5,216	-6,379
No. of Positions Held-12 months or more	1	1
Aggregate Fair Value-Total	665,721	3,140,306
Unrealized Losses-Total	-9,589	-30,192
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous
Fair Value-Less than 12 months	2,555,063	6,325,579
Unrealized Losses-Less than 12 Months	-56,447	-118,092
No. of Positions Held-Less than 12 Months	7	15
Fair Value-12 months or more	483,170	714,640
Unrealized Losses-12 months or more	-6,664	-30,228
No. of Positions Held-12 months or more	1	2
Aggregate Fair Value-Total	3,038,233	7,040,219
Unrealized Losses-Total	-63,111	-148,320
Fixed Maturity Securities Residential Mortgage-backed securities [Member]
Fair Value-Less than 12 months	362,660
Unrealized Losses-Less than 12 Months	-1,612
No. of Positions Held-Less than 12 Months	2
Fair Value-12 months or more	0
Unrealized Losses-12 months or more	0
Aggregate Fair Value-Total	362,660
Unrealized Losses-Total	-1,612
Fixed Maturity Securities Total Fixed Maturity Securities
Fair Value-Less than 12 months	3,466,525	9,339,227
Unrealized Losses-Less than 12 Months	-62,432	-141,905
No. of Positions Held-Less than 12 Months	11	24
Fair Value-12 months or more	600,089	841,298
Unrealized Losses-12 months or more	-11,880	-36,607
No. of Positions Held-12 months or more	2	3
Aggregate Fair Value-Total	4,066,614	10,180,525
Unrealized Losses-Total	-74,312	-178,512
Equity Securities Preferred Stocks
Fair Value-Less than 12 months	731,250	656,325
Unrealized Losses-Less than 12 Months	-72	-2,647
No. of Positions Held-Less than 12 Months	1	1
Fair Value-12 months or more	940,600	1,448,376
Unrealized Losses-12 months or more	-16,931	-62,886
No. of Positions Held-12 months or more	4	6
Aggregate Fair Value-Total	1,671,850	2,104,701
Unrealized Losses-Total	-17,003	-65,533
Equity Securities Common Stocks
Fair Value-Less than 12 months	887,495	0
Unrealized Losses-Less than 12 Months	-7,342	0
No. of Positions Held-Less than 12 Months	6	0
Fair Value-12 months or more	0	267,000
Unrealized Losses-12 months or more	0	-2,177
No. of Positions Held-12 months or more	0	1
Aggregate Fair Value-Total	887,495	267,000
Unrealized Losses-Total	-7,342	-2,177
Equity Securities Total Equity Securities
Fair Value-Less than 12 months	1,618,745	656,325
Unrealized Losses-Less than 12 Months	-7,414	-2,647
No. of Positions Held-Less than 12 Months	7	1
Fair Value-12 months or more	940,600	1,715,376
Unrealized Losses-12 months or more	-16,931	-65,063
No. of Positions Held-12 months or more	4	7
Aggregate Fair Value-Total	2,559,345	2,371,701
Unrealized Losses-Total	($24,345)	($67,710)

3_Investments_Details_Narrativ

3. Investments (Details Narrative) (USD $)	3 Months Ended
3. Investments (Details Narrative) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Investments Details Narrative
Proceeds from the sale and maturity of fixed-maturity securities	$716,892	$2,176,834
Proceeds from the sale of equity securities		$1,287,326

4_Fair_Value_Measurements_Deta

4. Fair Value Measurements (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Political subdivisions of States, Territories and Possessions	$14,325,489	$14,244,439
Corporate and other bonds industrial and miscellaneous	37,132,395	36,876,420
Residential mortgage-backed securities	2,843,292
Total fixed maturities	54,301,176	51,120,859
Equity securities	9,237,109	8,017,729
Total investments	63,538,285	59,138,588
Level 1
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	29,444,211	29,257,850
Residential mortgage-backed securities	0
Total fixed maturities	29,444,211	29,257,850
Equity securities	9,237,109	8,017,729
Total investments	38,681,320	37,275,579
Level 2
Political subdivisions of States, Territories and Possessions	14,325,489	14,244,439
Corporate and other bonds industrial and miscellaneous	7,688,184	7,618,570
Residential mortgage-backed securities	2,843,292
Total fixed maturities	24,856,965	21,863,009
Equity securities	0	0
Total investments	24,856,965	21,863,009
Level 3
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	0	0
Residential mortgage-backed securities	0
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 $)	Mar. 31, 2015	Dec. 31, 2014
Reinsurance balances payable	$2,018,556	$2,096,363
Carrying Value
Fixed-maturity securities held-to-maturity	5,132,238	5,128,735
Cash and cash equivalents	6,283,655	9,906,878
Premiums receivable	9,428,166	8,946,899
Receivables - reinsurance contracts	1,436,205	1,301,549
Reinsurance receivables	36,551,604	35,575,276
Real estate net of accumulated depreciation	1,749,484	1,762,345
Reinsurance balances payable	2,018,556	2,096,363
Fair Value
Fixed-maturity securities held-to-maturity	5,465,196	5,395,054
Cash and cash equivalents	6,283,655	9,906,878
Premiums receivable	9,428,166	8,946,899
Receivables - reinsurance contracts	1,436,205	1,301,549
Reinsurance receivables	36,551,604	35,575,276
Real estate net of accumulated depreciation	1,816,122	1,816,122
Reinsurance balances payable	$2,018,556	$2,096,363

6_Property_and_Casualty_Insura2

6. Property and Casualty Insurance Activity (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Premiums Written
Direct	$19,489,429	$16,347,445
Assumed	7,911	7,647
Ceded	-8,619,406	-9,769,829
Net	10,877,934	6,585,263
Changes In Unearned Premiums
Direct	-472,331	-1,133,528
Assumed	3,912	2,654
Ceded	-23,716	471,922
Net	-492,135	-658,952
Premiums Earned
Direct	19,017,098	15,213,917
Assumed	11,823	10,301
Ceded	-8,643,122	-9,297,907
Net	$10,385,799	$5,926,311

6_Property_and_Casualty_Insura3

6. Property and Casualty Insurance Activity (Details 1) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Property And Casualty Insurance Activity Details 1
Balance at beginning of period	$39,912,683	$34,503,229
Less reinsurance recoverables	-18,249,526	-17,363,975
Net balance, beginning of period	21,663,157	17,139,254
Incurred related to:
Current year	6,956,761	4,121,732
Prior years	106,456	203,222
Total incurred	7,063,217	4,324,954
Paid related to:
Current year	1,685,306	1,082,950
Prior years	3,201,258	1,455,086
Total paid	4,886,564	2,538,036
Net balance at end of period	23,839,810	18,926,172
Add reinsurance recoverables	18,311,454	21,117,082
Balance at end of period	$42,151,264	$40,043,254

6_Property_and_Casualty_Insura4

6. Property and Casualty Insurance Activity (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Personal Lines [Member]
Percent ceded	55.00%	75.00%
Risk retained	$360,000	$300,000
Coverage per occurrence	800,000	1,200,000
Excess of loss coverage in excess of risk retained	3,200,000 in excess of 800,000	1,700,000 in excess of 1,200,000
Total reinsurance coverage per occurrence	3,640,000	2,600,000
Losses per occurrence subject to reinsurance coverage	4,000,000	2,900,000
Expiration date	30-Jun-15	30-Jun-15
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
Personal Umbrella [Member]
Percent ceded - first million dollars of coverage	90.00%	90.00%
Percent ceded - excess of one million dollars of coverage	100.00%	100.00%
Losses per occurrence subject to reinsurance coverage	2,900,000	1,900,000
Losses per occurrence subject to quota share reinsurance coverage	3,000,000	2,000,000
Expiration date	30-Jun-15	30-Jun-14
Catastrophe [Member]
Initial loss subject to personal lines quota share treaty	4,000,000	4,000,000
Risk retained per catastrophe occurrence	1,800,000	1,000,000
Catastrophe loss coverage in excess of quota share coverage Winter storm catastrophe coverage (1)	137,000,000	86,000,000
Commercial Lines [Member]
Percent ceded	0.00%	25.00%
Risk retained	400,000	300,000
Excess of loss coverage in excess of risk retained	0	400,000
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
Per occurrence loss limit	400,000	400,000
Total reinsurance coverage per occurrence	3,600,000	2,600,000
Losses per occurrence subject to reinsurance coverage	$4,000,000	$2,900,000

6_Property_and_Casualty_Insura5

6. Property and Casualty Insurance Activity (Details 3)	3 Months Ended
6. Property and Casualty Insurance Activity (Details 3)	Mar. 31, 2015	Mar. 31, 2014
Personal Lines [Member] \| 800,000 - 4,000,000 [Member]
Risk Retained	0
Personal Lines [Member] \| Initial 800,000 [Member]
Risk Retained	360,000
Personal Lines [Member] \| Over 4,000,000 [Member]
Risk Retained	100%
Personal Lines [Member] \| Over $2,900,000 [Member]
Risk Retained		100%
Personal Lines [Member] \| 1,200,000 - $2,900,000 [Member]
Risk Retained		0
Personal Lines [Member] \| Initial $1,200,000 [Member]
Risk Retained		300,000
Catastrophe [Member] \| 4,000,000 - 141,000,000 [Member]
Risk Retained	0
Catastrophe [Member] \| Initial 4,000,000 [Member]
Risk Retained	1,800,000
Catastrophe [Member] \| Over 141,000,000 [Member]
Risk Retained	100%
Catastrophe [Member] \| Over 90,000,000 [Member]
Risk Retained		100%
Catastrophe [Member] \| 4,000,000 - 90,000,000 [Member]
Risk Retained		0
Catastrophe [Member] \| Initial 4,000,000 [Member]
Risk Retained		1,000,000
Commercial Auto [Member] \| Over 2,000,000 [Member]
Risk Retained	100%
Commercial Auto [Member] \| 300,000 - 2,000,000 [Member]
Risk Retained	0
Commercial Auto [Member] \| Initial 300,000 [Member]
Risk Retained	300,000
Commercial Auto [Member] \| Over 2,000,000 [Member]
Risk Retained		100%
Commercial Auto [Member] \| 300,000 - 2,000,000 [Member]
Risk Retained		0
Commercial Auto [Member] \| Initial 300,000 [Member]
Risk Retained		300,000
Commercial Lines [Member] \| Over 4,000,000 [Member]
Risk Retained	100%
Commercial Lines [Member] \| 400,000 - 4,000,000 [Member]
Risk Retained	0
Commercial Lines [Member] \| Initial 400,000 [Member]
Risk Retained	400,000
Commercial Lines [Member] \| Over 2,900,000 [Member]
Risk Retained		100%
Commercial Lines [Member] \| 400,000 - 2,900,000 [Member]
Risk Retained		0
Commercial Lines [Member] \| Initial 400,000 [Member]
Risk Retained		300,000
Personal Umbrella [Member] \| Over 3,000,000 [Member]
Risk Retained	100%
Personal Umbrella [Member] \| 1,000,000 - 3,000,000 [Member]
Risk Retained	0
Personal Umbrella [Member] \| Initial 1,000,000 [Member]
Risk Retained	100,000
Personal Umbrella [Member] \| Over 2,000,000 [Member]
Risk Retained		100%
Personal Umbrella [Member] \| 1,000,000 - 2,000,000 [Member]
Risk Retained		0
Personal Umbrella [Member] \| Initial 1,000,000 [Member]
Risk Retained		100,000

6_Property_and_Casualty_Insura6

6. Property and Casualty Insurance Activity (Details 4) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Property And Casualty Insurance Activity Details 4
Provisional ceding commissions earned	$2,915,029	$3,376,876
Contingent ceding commissions earned	174,375	4,407
Total commissions earned	$3,089,404	$3,381,283

6_Property_and_Casualty_Insura7

6. Property and Casualty Insurance Activity (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Property And Casualty Insurance Activity Details Narrative
Advance premiums	$1,414,000		$1,007,000
Incurred Losses and Loss Adjustment Expenses are net of reinsurance recoveries under reinsurance contracts	$5,448,387	$6,718,463

7_Bank_Line_of_Credit_Details_

7. Bank Line of Credit (Details Narrative) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Bank Line Of Credit Details Narrative
Line of credit	$0	$0
Interest Rate	3.75%	3.75%

8_Stockholders_Equity_Details_

8. Stockholders' Equity (Details 1) (USD $)	3 Months Ended
8. Stockholders' Equity (Details 1) (USD $)	Mar. 31, 2015
Stockholders Equity Details 1
Number of Options Outstanding, Beginning	421,250
Number of Options Granted	0
Number of Options Exercised	-120,000
Number of Options Forfeited	0
Number of Options Outstanding, Ending	301,250
Number of Options Vested and Exercisable	112,500
Weighted Average Exercise Price Outstanding, Beginning	$5.16
Weighted Average Exercise Price Granted	$0
Weighted Average Exercise Price Exercised	$2.50
Weighted Average Exercise Price Forfeited	$0
Weighted Average Exercise Price Outstanding, Ending	$6.22
Weighted Average Exercise Price Vested and Exercisable	$6.06
Weighted Average Remaining Contractual Life (in years) Outstanding Beginning	3 years 1 month 17 days
Weighted Average Remaining Contractual Life (in years) Outstanding Ending	4 years 15 days
Weighted Average Remaining Contractual Life (in years) Vested and Exercisable	3 years 11 months 19 days
Aggregate Intrinsic Value Outstanding, Beginning	$1,258,013
Aggregate Intrinsic Value Granted	$0
Aggregate Intrinsic Value Exercised	650,400
Aggregate Intrinsic Value Forfeited/canceled	$0
Aggregate Intrinsic Value Outstanding, Ending	393,238
Aggregate Intrinsic Value Vested and Exercisable	$165,163

8_Stockholders_Equity_Details_1

8. Stockholders' Equity (Details Narrative) (USD $)	3 Months Ended
8. Stockholders' Equity (Details Narrative) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Dividends Declared	$365,505	$290,664
Compensation Expense	39,000	13,000
Stock-based compensation expense related to stock options is net of estimated forfeitures	17.00%	20.00%
Closing price of common stock	$7.53
Total intrinsic value of options exercised	650,400
Stock Options exercised	120,000	0
Unamortized compensation cost related to unvested stock option awards	$123,000
Unamortized compensation cost vesting period	11 months 26 days
2005 Plan [Member]
Shares reserved	1,135
2014 Plan [Member]
Shares reserved	650,000

9_Income_Taxes_Details

9. Income Taxes (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Deferred tax asset:
Net operating loss carryovers (1)	$178,199	$211,550
Claims reserve discount	619,504	562,941
Unearned premium	1,802,536	1,741,360
Deferred ceding commission revenue	2,006,871	2,025,224
Other	50,852	88,148
Total deferred tax assets	4,657,962	4,629,223
Deferred tax liability:
Investment in KICO (2)	1,169,000	1,169,000
Deferred acquisition costs	3,072,228	3,055,234
Intangibles	718,964	759,400
Depreciation and amortization	331,059	291,689
Net unrealized appreciation of securities - available for sale	756,878	491,080
Total deferred tax liabilities	6,048,129	5,766,403
Net deferred income tax liability	($1,390,167)	($1,137,180)

9_Income_Taxes_Details_1

9. Income Taxes (Details 1) (USD $)	3 Months Ended
9. Income Taxes (Details 1) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Income Taxes Details 1
State only (A)	$481,125	$567,188
Valuation allowance	-316,526	-372,638
State only, net of valuation allowance	164,599	194,550
Amount subject to Annual Limitation, Federal only (B)	13,600	17,000
Total deferred tax asset from net operating loss carryovers	$178,199	$211,550
State only (A) expiration date	31-Dec-35
Amount subject to Annual Limitation, Federal only (B) expiration date	31-Dec-19

9_Income_Taxes_Details_Narrati

9. Income Taxes (Details Narrative) (USD $)	3 Months Ended
9. Income Taxes (Details Narrative) (USD $)	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Income Taxes Details Narrative
Effective Tax Rate-Continuing Operations	33.40%	31.80%
Net operating loss carryover	$7,402,000		$6,834,000

10_Net_Income_Per_Common_Share2

10. Net Income Per Common Share (Details) (USD $)	3 Months Ended
10. Net Income Per Common Share (Details) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Net Income Per Common Share Details
Weighted average number of shares outstanding	7,318,271	7,266,573
Effect of dilutive securities, common share equivalents	$26,292	$105,576
Weighted average number of shares outstanding, used for computing diluted earnings per share	7,344,563	7,372,149

10_Net_Income_Per_Common_Share3

10. Net Income Per Common Share (Details Narrative)	3 Months Ended
10. Net Income Per Common Share (Details Narrative)	Mar. 31, 2015	Mar. 31, 2014
Net Income Per Common Share Details Narrative
Options computation of diluted earnings per share	77,500	7,500

11_Commitments_and_Contingenci1

11. Commitments and Contingencies (Details) (USD $)	Mar. 31, 2015
Notes to Financial Statements
2015
2016	100,750
2017	104,276
2018	107,926
2019	111,703
Thereafter	359,119
Total	$783,774

12_Premium_Finance_Placement_F2

12. Premium Finance Placement Fees (Details) (USD $)	3 Months Ended
12. Premium Finance Placement Fees (Details) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Premium Finance Placement Fees Details
Placement fee revenue	$54,343	$69,443
Early termination fee	350,000
Direct expenses	-12,989	-11,538
Net income before taxes from placement fees	$391,354	$57,905