Kingstone Companies (KINS) 10-Q 10 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 10, 2017
Document And Entity Information
Entity Registrant Name	KINGSTONE COMPANIES, INC.
Entity Central Index Key	33,992
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,630,492
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Assets
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $5,193,772 at June 30, 2017 and $5,298,119 at December 31, 2016)	$ 4,895,894	$ 5,094,902
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $111,374,779 at June 30, 2017 and $80,596,628 at December 31, 2016)	112,423,511	80,428,828
Equity securities, available-for-sale, at fair value (cost of $11,311,097 at June 30, 2017 and $9,709,385 at December 31, 2016)	11,772,818	9,987,686
Total investments	129,092,223	95,511,416
Cash and cash equivalents	14,357,465	12,044,520
Premiums receivable, net	13,126,077	11,649,398
Reinsurance receivables, net	34,543,843	32,197,765
Deferred policy acquisition costs	13,284,665	12,239,781
Intangible assets, net	1,180,000	1,350,000
Property and equipment, net	3,838,351	3,011,373
Other assets	1,268,699	1,442,209
Total assets	210,691,323	169,446,462
Liabilities
Loss and loss adjustment expense reserves	44,196,576	41,736,719
Unearned premiums	59,034,845	54,994,375
Advance premiums	2,169,979	1,421,560
Reinsurance balances payable	2,803,939	2,146,017
Deferred ceding commission revenue	7,228,966	6,851,841
Accounts payable, accrued expenses and other liabilities	4,598,774	5,448,448
Deferred income taxes	339,840	166,949
Total liabilities	120,372,919	112,765,909
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $.01 par value; authorized 2,500,000 shares	0	0
Common stock, $.01 par value; authorized 20,000,000 shares; issued 11,600,288 shares at June 30, 2017 and 8,896,335 at December 31, 2016; outstanding 10,622,491 shares at June 30, 2017 and 7,921,866 shares at December 31, 2016	116,002	88,963
Capital in excess of par	68,218,302	37,950,401
Accumulated other comprehensive income	996,899	72,931
Retained earnings	23,031,059	20,563,720
Total	92,362,262	58,676,015
Treasury stock, at cost, 977,797 shares at June 30, 2017 and 974,469 shares at December 31, 2016	(2,043,858)	(1,995,462)
Total stockholders' equity	90,318,404	56,680,553
Total liabilities and stockholders' equity	$ 210,691,323	$ 169,446,462

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheets Parenthetical
Fixed-maturity securities, held-to-maturity, fair value	$ 5,193,772	$ 5,298,119
Fixed-maturity securities, available-for-sale, amortized cost	111,374,779	80,596,628
Equity securities, available-for-sale, cost	$ 11,311,097	$ 9,709,385
Stockholders' Equity
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued shares	11,600,288	8,896,335
Common stock, outstanding shares	10,622,491	7,921,866
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized shares	2,500,000	2,500,000
Treasury stock, Shares	977,797	974,469

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues
Net premiums earned	$ 16,953,727	$ 15,010,875	$ 33,323,475	$ 29,542,550
Ceding commission revenue	3,305,938	2,569,025	6,490,390	5,339,362
Net investment income	1,026,004	764,070	1,883,804	1,577,127
Net realized gains on investments	130,423	283,432	75,917	363,868
Other income	308,159	284,508	597,859	533,855
Total revenues	21,724,251	18,911,910	42,371,445	37,356,762
Expenses
Loss and loss adjustment expenses	7,454,922	5,786,836	15,747,918	15,270,691
Commission expense	5,101,566	4,526,208	9,990,544	8,796,274
Other underwriting expenses	4,199,616	3,596,134	8,412,033	6,942,575
Other operating expenses	906,690	432,696	1,662,494	761,935
Depreciation and amortization	326,174	289,173	644,872	573,001
Total expenses	17,988,968	14,631,047	36,457,861	32,344,476
Income from operations before taxes	3,735,283	4,280,863	5,913,584	5,012,286
Income tax expense	1,224,891	1,438,602	1,932,612	1,628,993
Net income	2,510,392	2,842,261	3,980,972	3,383,293
Other comprehensive income (loss), net of tax
Gross change in unrealized gains on available-for-sale-securities	951,047	873,850	1,475,869	2,357,914
Reclassification adjustment for losses (gains) included in net income	(130,423)	(283,432)	(75,917)	(363,868)
Net change in unrealized gains	820,624	590,418	1,399,952	1,994,046
Income tax expense related to items of other comprehensive income	(279,012)	(200,742)	(475,984)	(677,976)
Other comprehensive income, net of tax	541,612	389,676	923,968	1,316,070
Comprehensive income	$ 3,052,004	$ 3,231,937	$ 4,904,940	$ 4,699,363
Earnings per common share:
Basic	$ 0.24	$ 0.36	$ 0.39	$ 0.45
Diluted	$ 0.23	$ 0.36	$ 0.39	$ 0.44
Weighted average common shares outstanding
Basic	10,622,496	7,794,347	10,145,772	7,558,366
Diluted	10,822,577	7,853,284	10,337,213	7,607,231
Dividends declared and paid per common share	$ 0.0800	$ 0.0625	$ 0.1425	$ 0.1250

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($)	Preferred Stock	Common Stock	Capital in Excess of Par	Accumulated Other Comprehensive Income	Retained Earnings	Treasury Stock	Total
Beginning Balance, Shares at Dec. 31, 2016	0	8,896,335				974,469
Beginning Balance, Amount at Dec. 31, 2016	$ 0	$ 88,963	$ 37,950,401	$ 72,931	$ 20,563,720	$ (1,995,462)	$ 56,680,553
Proceeds from public offering, net of offering costs of $2,173,000, Shares		2,692,500
Proceeds from public offering, net of offering costs of $2,173,000, Amount		$ 26,925	30,109,774				30,136,699
Stock-based compensation			127,768				$ 127,768
Vesting of restricted stock awards, Shares		5,621					0
Vesting of restricted stock awards, Amount		$ 56	(56)				$ 0
Shares deducted from exercise of stock options for payment of withholding taxes, Shares		(584)
Shares deducted from exercise of stock options for payment of withholding taxes, Amount		$ (6)	(8,882)				(8,888)
Exercise of stock options, Shares		6,416
Exercise of stock options, Amount		$ 64	39,297				39,361
Acquisition of treasury stock, Shares						3,328
Acquisition of treasury stock, Amount						$ (48,396)	(48,396)
Dividends					(1,513,633)		(1,513,633)
Net income					3,980,972		3,980,972
Change in unrealized gains on available-for-sale securities, net of tax				923,968			923,968
Ending Balance, Shares at Jun. 30, 2017	0	11,600,288				977,797
Ending Balance, Amount at Jun. 30, 2017	$ 0	$ 116,002	$ 68,218,302	$ 996,899	$ 23,031,059	$ (2,043,858)	$ 90,318,404

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholders' Equity (Parenthetical)	6 Months Ended
	Jun. 30, 2017USD ($)
Statement of Stockholders' Equity [Abstract]
Offering Costs	$ 2,173,000

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 3,980,972	$ 3,383,293
Adjustments to reconcile net income to net cash flows provided by operating activities:
Net realized gains on sale of investments	(75,917)	(363,868)
Depreciation and amortization	644,872	573,001
Amortization of bond premium, net	258,269	167,488
Stock-based compensation	127,768	66,326
Deferred income tax benefit (expense)	(303,093)	(125,559)
(Increase) decrease in operating assets:
Premiums receivable, net	(1,476,679)	(628,529)
Reinsurance receivables, net	(2,346,078)	(4,084,209)
Deferred policy acquisition costs	(1,044,884)	(712,750)
Other assets	173,510	(196,719)
Increase (decrease) in operating liabilities:
Loss and loss adjustment expense reserves	2,459,857	4,458,724
Unearned premiums	4,040,470	2,570,009
Advance premiums	748,419	589,746
Reinsurance balances payable	657,922	2,216,854
Deferred ceding commission revenue	377,125	227,921
Accounts payable, accrued expenses and other liabilities	(849,674)	(329,177)
Net cash flows provided by operating activities	7,372,859	7,812,551
Cash flows from investing activities:
Purchase - fixed-maturity securities held-to-maturity	(36,818,402)	(23,339,058)
Purchase - fixed-maturity securities available-for-sale	(2,275,929)	(5,585,777)
Redemption - fixed-maturity securities held-to-maturity	200,000	0
Sale or maturity - fixed-maturity securities available-for-sale	5,732,151	14,314,798
Sale - equity securities available-for-sale	798,973	4,212,336
Acquisition of fixed assets	(1,301,850)	(326,575)
Other investing activities	0	250,448
Net cash flows used in investing activities	(33,665,057)	(10,473,828)
Cash flows from financing activities:
Net proceeds from issuance of common stock	30,136,699	4,813,574
Proceeds from exercise of stock options	39,361	0
Purchase of treasury stock	(48,396)	(113,267)
Withholding taxes paid on net exercise of stock options	(8,888)	0
Dividends paid	(1,513,633)	(952,128)
Net cash flows provided by financing activities	28,605,143	3,748,179
Increase in cash and cash equivalents	2,312,945	1,086,902
Cash and cash equivalents, beginning of period	12,044,520	13,551,372
Cash and cash equivalents, end of period	14,357,465	14,638,274
Supplemental disclosures of cash flow information:
Cash paid for income taxes	$ 1,762,000	$ 1,747,466

1. Nature of Business and Basis

1. Nature of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2017
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 States of New York, New Jersey, Connecticut, Pennsylvania, Rhode Island and Texas. KICO is currently offering its property and casualty insurance products in New York, New Jersey and Pennsylvania; although New Jersey is now a growing expansion market for the Company, KICO currently writes substantially all of its business in New York. 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 condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2016 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 16, 2017. The accompanying condensed consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with standards of the Public Company Accounting Oversight Board (United States) but, in the opinion of management, such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial position and results of operations. The results of operations for the six months ended June 30, 2017 may not be indicative of the results that may be expected for the year ending December 31, 2017.

2. Accounting Policies

2. Accounting Policies	6 Months Ended
	Jun. 30, 2017
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: 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. All significant inter-company account balances and transactions have been eliminated in consolidation. Accounting Changes In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-09, Financial Services – Insurance (Topic 944): Disclosures About Short-Duration Contracts. The updated accounting guidance requires expanded disclosures for insurance entities that issue short-duration contracts. The expanded disclosures are designed to provide additional insight into an insurance entity’s ability to underwrite and anticipate costs associated with insurance claims. The disclosures include information about incurred and paid claims development by accident year, on a net basis after reinsurance, for the number of years claims incurred that typically remain outstanding, not to exceed ten years. Each period presented in the disclosure about claims development that precedes the current reporting period is considered required supplementary information. The expanded disclosures also include information about significant changes in methodologies and assumptions, a reconciliation of incurred and paid claims development to the carrying amount of the liability for unpaid claims and claim adjustment expenses, the total amount of incurred but not reported liabilities plus expected development, claims frequency information including the methodology used to determine claim frequency and any changes to that methodology, and claim duration. The guidance became effective for annual periods beginning after December 15, 2015, and interim periods beginning after December 15, 2016, and has been applied retrospectively. The new guidance affected disclosures only and had no impact on the Company’s results of operations or financial position. Effective January 1, 2017, the Company has adopted the provisions of ASU 2016-09 – Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which requires recognition of all income tax effects from share-based payments arising on or after January 1, 2017 (the Company’s adoption date) in income tax expense. As a result, the Company realized windfall tax benefits in the interim period of adoption of approximately $5,000, which was recognized as a discrete period income tax benefit as required by this ASU. This benefit resulted in lowering the Company’s effective tax rate for the interim period by 0.1%. Accounting Pronouncements In May 2014, FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606). The standard excludes from its scope the accounting for insurance contracts, financial instruments, and certain other agreements that are governed under other GAAP guidance 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. ASU 2014-09, as amended by ASU 2015-14, ASU 2016-08, ASU 2016-10 and ASU 2016-20, is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted for annual 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 consolidated financial statements. In January 2016, FASB issued ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The updated accounting guidance requires changes to the reporting model for financial instruments. The primary change for the Company is expected to be the requirement for equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The updated guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements. In February 2016, FASB issued ASU 2016-02 – Leases (Topic 842). Under this ASU, lessees will recognize a right-of-use-asset and corresponding liability on the balance sheet for all leases, except for leases covering a period of fewer than 12 months. The liability is to be measured as the present value of the future minimum lease payments taking into account renewal options if applicable plus initial incremental direct costs such as commissions. The minimum payments are discounted using the rate implicit in the lease or, if not known, the lessee’s incremental borrowing rate. The lessee’s income statement treatment for leases will vary depending on the nature of what is being leased. A financing type lease is present when, among other matters, the asset is being leased for a substantial portion of its economic life or has an end-of-term title transfer or a bargain purchase option as in today’s practice. The payment of the liability set up for such leases will be apportioned between interest and principal; the right-of use asset will be generally amortized on a straight-line basis. If the lease does not qualify as a financing type lease, it will be accounted for on the income statement as rent on a straight-line basis. The guidance will be effective for the Company for interim and annual reporting periods beginning after December 15, 2018. The Company will apply the guidance using a modified retrospective approach. Early application is permitted. The Company is evaluating whether the adoption of ASU 2016-02 will have a significant impact on its consolidated results of operations, financial position or cash flows. In June 2016, FASB issued ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The revised accounting guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses of available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020. The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements. In August 2016, FASB issued ASU 2016-15 - Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The revised ASU provides accounting guidance for eight specific cash flow issues. FASB issued the standard to clarify areas where GAAP has been either unclear or lacking in specific guidance. ASU 2016-15 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect the updated guidance will have on its consolidated statement of cash flows. The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

3. Investments

3. Investments	6 Months Ended
	Jun. 30, 2017
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 June 30, 2017 and December 31, 2016 are summarized as follows: June 30, 2017 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 $ 12,080,402 $ 269,275 $ (40,955) $ (23,057) $ 12,285,665 $ 205,263 Corporate and other bonds Industrial and miscellaneous 77,041,418 1,202,532 (371,550) (5,946) 77,866,454 825,036 Residential mortgage and other asset backed securities 22,252,959 233,063 (190,684) (23,946) 22,271,392 18,433 Total fixed-maturity securities 111,374,779 1,704,870 (603,189) (52,949) 112,423,511 1,048,732 Equity Securities: Preferred stocks 6,512,399 59,812 (77,538) (88,073) 6,406,600 (105,799) Common stocks 4,798,698 656,319 (10,131) (78,668) 5,366,218 567,520 Total equity securities 11,311,097 716,131 (87,669) (166,741) 11,772,818 461,721 Total $ 122,685,876 $ 2,421,001 $ (690,858) $ (219,690) $ 124,196,329 $ 1,510,453 December 31, 2016 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 $ 8,053,449 $ 199,028 $ (46,589) $ - $ 8,205,888 $ 152,439 Corporate and other bonds Industrial and miscellaneous 53,728,395 600,519 (638,113) (5,612) 53,685,189 (43,206) Residential mortgage backed securities 18,814,784 70,682 (309,273) (38,442) 18,537,751 (277,033) Total fixed-maturity securities 80,596,628 870,229 (993,975) (44,054) 80,428,828 (167,800) Equity Securities: Preferred stocks 5,986,588 10,317 (241,333) (70,571) 5,685,001 (301,587) Common stocks 3,722,797 691,324 (13,968) (97,468) 4,302,685 579,888 Total equity securities 9,709,385 701,641 (255,301) (168,039) 9,987,686 278,301 Total $ 90,306,013 $ 1,571,870 $ (1,249,276) $ (212,093) $ 90,416,514 $ 110,501 A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of June 30, 2017 and December 31, 2016 is shown below: June 30, 2017 December 31, 2016 Amortized Amortized Remaining Time to Maturity Cost Fair Value Cost Fair Value Less than one year $ 2,377,970 $ 2,391,524 $ 1,752,501 $ 1,765,795 One to five years 31,548,682 32,100,717 29,541,568 29,913,308 Five to ten years 50,427,456 50,883,126 30,487,775 30,211,974 More than 10 years 4,767,712 4,776,752 - - Residential mortgage and other asset backed securities 22,252,959 22,271,392 18,814,784 18,537,751 Total $ 111,374,779 $ 112,423,511 $ 80,596,628 $ 80,428,828 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 June 30, 2017 Cost or Gross Gross Unrealized Losses Net Amortized Unrealized Less than 12 More than 12 Fair Unrealized Category Cost Gains Months Months Value Gains U.S. Treasury securities $ 606,446 $ 147,593 $ - $ - $ 754,039 $ 147,593 Political subdivisions of States, Territories and Possessions 1,149,077 55,703 (2,500) - 1,202,280 53,203 Corporate and other bonds Industrial and miscellaneous 3,140,371 117,338 (5,025) (15,231) 3,237,453 97,082 Total $ 4,895,894 $ 320,634 $ (7,525) $ (15,231) $ 5,193,772 $ 297,878 December 31, 2016 Cost or Gross Gross Unrealized Losses Net Amortized Unrealized Less than 12 More than 12 Fair Unrealized Category Cost Gains Months Months Value Gains U.S. Treasury securities $ 606,427 $ 147,612 $ - $ - $ 754,039 $ 147,612 Political subdivisions of States, Territories and Possessions 1,349,916 37,321 - - 1,387,237 37,321 Corporate and other bonds Industrial and miscellaneous 3,138,559 72,784 (7,619) (46,881) 3,156,843 18,284 Total $ 5,094,902 $ 257,717 $ (7,619) $ (46,881) $ 5,298,119 $ 203,217 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 June 30, 2017 and December 31, 2016 is shown below: June 30, 2017 December 31, 2016 Amortized Amortized Remaining Time to Maturity Cost Fair Value Cost Fair Value Less than one year $ - $ - $ - $ - One to five years 1,300,771 1,327,098 650,000 642,455 Five to ten years 2,988,677 3,112,635 3,838,475 3,901,625 More than 10 years 606,446 754,039 606,427 754,039 Total $ 4,895,894 $ 5,193,772 $ 5,094,902 $ 5,298,119 The actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without penalties. Investment Income Major categories of the Company’s net investment income are summarized as follows: Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Income: Fixed-maturity securities $ 935,543 $ 685,776 $ 1,680,996 $ 1,350,252 Equity securities 128,501 104,652 264,986 280,603 Cash and cash equivalents 2,505 2,732 8,674 9,178 Total 1,066,549 793,160 1,954,656 1,640,033 Expenses: Investment expenses 40,545 29,090 70,852 62,906 Net investment income $ 1,026,004 $ 764,070 $ 1,883,804 $ 1,577,127 Proceeds from the redemption of fixed-maturity securities held-to-maturity were $200,000 and $-0- for the six months ended June 30, 2017 and 2016, respectively. Proceeds from the sale and maturity of fixed-maturity securities available-for-sale were $5,732,151 and $14,314,798 for the six months ended June 30, 2017 and 2016, respectively. Proceeds from the sale of equity securities available-for-sale were $798,973 and $4,212,336 for the six months ended June 30, 2017 and 2016, respectively. The Company’s net realized gains (losses) on investments are summarized as follows: Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Fixed-maturity securities: Gross realized gains $ 48,595 $ 205,476 $ 61,718 $ 311,893 Gross realized losses (1) (74,437) (65,428) (110,557) (170,971) (25,842) 140,048 (48,839) 140,922 Equity securities: Gross realized gains 156,265 232,929 156,265 315,617 Gross realized losses - (19,634) (31,509) (22,760) 156,265 213,295 124,756 292,857 Other-than-temporary impairment losses: Fixed-maturity securities - (69,911) - (69,911) Net realized gains $ 130,423 $ 283,432 $ 75,917 $ 363,868 (1) Gross realized losses for the six months ended June 30, 2017 include $747 of loss from the redemption of fixed-maturity securities held-to-maturity. Impairment Review Impairment of investment securities results in a charge to operations when a market decline below cost is deemed to be other-than-temporary. The Company regularly reviews its fixed-maturity securities and equity securities portfolios to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of investments. In evaluating potential impairment, GAAP specifies (i) if the Company does not have the intent to sell a debt security prior to recovery and (ii) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When the Company does not intend to sell the security and it is more likely than not that the Company will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment (“OTTI”) of a debt security in earnings and the remaining portion in other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. For held-to-maturity debt securities, the amount of OTTI recorded in other comprehensive income for the noncredit portion of a previous OTTI is amortized prospectively over the remaining life of the security on the basis of timing of future estimated cash flows of the security. OTTI losses are recorded in the condensed consolidated statements of income and comprehensive income as net realized losses on investments and result in a permanent reduction of the cost basis of the underlying investment. The determination of OTTI is a subjective process and different judgments and assumptions could affect the timing of loss realization. At June 30, 2017 and December 31, 2016, there were 75 and 85 securities, respectively, that accounted for the gross unrealized loss. As of June 30, 2017, the Company’s held-to-maturity debt securities included an investment in one bond issued by the Commonwealth of Puerto Rico (“PR”). In July 2016, PR defaulted on its interest payment to bondholders. Due to the credit deterioration of PR, the Company recorded a credit loss component of OTTI on this investment as of June 30, 2016. As of December 31, 2016, the full amount of the write-down was recognized as a credit component of OTTI in the amount of $69,911. The Company determined that none of the other unrealized losses were deemed to be OTTI for its portfolio of fixed-maturity investments and equity securities for the six months ended June 30, 2017 and 2016. Significant factors influencing the Company’s determination that unrealized losses were temporary included the magnitude of the unrealized losses in relation to each security’s cost, the nature of the investment and management’s intent and ability to retain the investment for a period of time sufficient to allow for an anticipated recovery of fair value to the Company’s cost basis. The Company held securities with unrealized losses representing declines that were considered temporary at June 30, 2017 and December 31, 2016 as follows: June 30, 2017 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 $ 4,767,571 $ (40,955) 8 $ 307,632 $ (23,057) 1 $ 5,075,203 $ (64,012) Corporate and other bonds industrial and miscellaneous 16,347,328 (371,550) 30 240,000 (5,946) 1 16,587,328 (377,496) Residential mortgage and other asset backed securities 15,639,089 (190,684) 20 168,088 (23,946) 3 15,807,177 (214,630) Total fixed-maturity securities $ 36,753,988 $ (603,189) 58 $ 715,720 $ (52,949) 5 $ 37,469,708 $ (656,138) Equity Securities: Preferred stocks $ 3,033,150 $ (77,538) 7 $ 1,158,400 $ (88,073) 2 $ 4,191,550 $ (165,611) Common stocks 725,031 (10,131) 2 279,750 (78,668) 1 1,004,781 (88,799) Total equity securities $ 3,758,181 $ (87,669) 9 $ 1,438,150 $ (166,741) 3 $ 5,196,331 $ (254,410) Total $ 40,512,169 $ (690,858) 67 $ 2,153,870 $ (219,690) 8 $ 42,666,039 $ (910,548) December 31, 2016 Less than 12 months 12 months or more Total No. of No. of Aggregate Fair Unrealized Positions Fair Unrealized Positions Fair Unrealized Category Value Losses Held Value Losses Held Value Losses Fixed-Maturity Securities: Political subdivisions of States, Territories and Possessions $ 1,067,574 $ (46,589) 3 $ - $ - - $ 1,067,574 $ (46,589) Corporate and other bonds industrial and miscellaneous 19,859,293 (638,113) 34 239,970 (5,612) 1 20,099,263 (643,725) Residential mortgage backed securities 15,918,090 (309,273) 30 675,316 (38,442) 6 16,593,406 (347,715) Total fixed-maturity securities $ 36,844,957 $ (993,975) 67 $ 915,286 $ (44,054) 7 $ 37,760,243 $ (1,038,029) Equity Securities: Preferred stocks $ 3,759,850 $ (241,333) 8 $ 660,750 $ (70,571) 1 $ 4,420,600 $ (311,904) Common stocks 288,075 (13,968) 1 424,550 (97,468) 1 712,625 (111,436) Total equity securities $ 4,047,925 $ (255,301) 9 $ 1,085,300 $ (168,039) 2 $ 5,133,225 $ (423,340) Total $ 40,892,882 $ (1,249,276) 76 $ 2,000,586 $ (212,093) 9 $ 42,893,468 $ (1,461,369)

4. Fair Value Measurements

4. Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
4. Fair Value Measurements	Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation technique used by the Company to fair value its financial instruments is the market approach which uses prices and other relevant information generated by market transactions involving identical or comparable assets. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets or liabilities fall within different levels of the hierarchy, the classification is based on the lowest level input that is significant to the fair value measurement of the asset or liability. Classification of assets and liabilities within the hierarchy considers the markets in which the assets and liabilities are traded, including during period of market disruption, and the reliability and transparency of the assumptions used to determine fair value. The hierarchy requires the use of observable market data when available. The levels of the hierarchy and those investments included in each are as follows: Level 1 Level 2 Level 3 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, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause a security to be reclassified between levels. The Company’s investments are allocated among pricing input levels at June 30, 2017 and December 31, 2016 as follows: June 30, 2017 Level 1 Level 2 Level 3 Total Fixed-maturity securities available-for-sale Political subdivisions of States, Territories and Possessions $ - $ 12,285,665 $ - $ 12,285,665 Corporate and other bonds industrial and miscellaneous 73,039,798 4,826,656 - 77,866,454 Residential mortgage and other asset backed securities - 22,271,392 - 22,271,392 Total fixed maturities 73,039,798 39,383,713 - 112,423,511 Equity securities 11,772,818 - - 11,772,818 Total investments $ 84,812,616 $ 39,383,713 $ - $ 124,196,329 December 31, 2016 Level 1 Level 2 Level 3 Total Fixed-maturity securities available-for-sale Political subdivisions of States, Territories and Possessions $ - $ 8,205,888 $ - $ 8,205,888 Corporate and other bonds industrial and miscellaneous 48,356,317 5,328,872 - 53,685,189 Residential mortgage backed securities - 18,537,751 - 18,537,751 Total fixed maturities 48,356,317 32,072,511 - 80,428,828 Equity securities 9,987,686 - - 9,987,686 Total investments $ 58,344,003 $ 32,072,511 $ - $ 90,416,514

5. Fair Value of Financial Inst

5. Fair Value of Financial Instruments and Real Estate	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
5. Fair Value of Financial Instruments and Real Estate	The Company uses the following methods and assumptions in estimating its fair value disclosures for financial instruments and real estate: Equity securities and fixed income securities: Cash and cash equivalents: Premiums receivable and reinsurance receivables: Real estate: Reinsurance balances payable: The estimated fair values of the Company’s financial instruments and real estate as of June 30, 2017 and December 31, 2016 are as follows: June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Fixed-maturity securities held-to-maturity $ 4,895,894 $ 5,193,772 $ 5,094,902 $ 5,298,119 Cash and cash equivalents $ 14,357,465 $ 14,357,465 $ 12,044,520 $ 12,044,520 Premiums receivable $ 13,126,077 $ 13,126,077 $ 11,649,398 $ 11,649,398 Reinsurance receivables $ 34,543,843 $ 34,543,843 $ 32,197,765 $ 32,197,765 Real estate, net of accumulated depreciation $ 1,828,350 $ 1,925,000 $ 1,659,405 $ 1,925,000 Reinsurance balances payable $ 2,803,939 $ 2,803,939 $ 2,146,017 $ 2,146,017

6. Property and Casualty Insura

6. Property and Casualty Insurance Activity	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
6. Property and Casualty Insurance Activity	Premiums Earned Premiums written, ceded and earned are as follows: Direct Assumed Ceded Net Six months ended June 30, 2017 Premiums written $ 56,583,867 $ 6,293 $(20,128,555) $ 36,461,605 Change in unearned premiums (4,048,796) 8,327 902,339 (3,138,130) Premiums earned $ 52,535,071 $ 14,620 $(19,226,216) $ 33,323,475 Six months ended June 30, 2016 Premiums written $ 49,204,416 $ 15,998 $(17,605,857) $ 31,614,557 Change in unearned premiums (2,573,545) 3,537 498,001 $ (2,072,007) Premiums earned $ 46,630,871 $ 19,535 $(17,107,856) $ 29,542,550 Three months ended June 30, 2017 Premiums written $ 30,458,400 $ 1,865 $(10,732,965) $ 19,727,300 Change in unearned premiums (3,717,893) 5,346 938,974 (2,773,573) Premiums earned $ 26,740,507 $ 7,211 $ (9,793,991) $ 16,953,727 Three months ended June 30, 2016 Premiums written $ 26,161,091 $ 10,920 $ (9,219,329) $ 16,952,682 Change in unearned premiums (2,447,117) (34) 505,344 (1,941,807) Premiums earned $ 23,713,974 $ 10,886 $ (8,713,985) $ 15,010,875 Premium receipts in advance of the policy effective date are recorded as advance premiums. The balance of advance premiums as of June 30, 2017 and December 31, 2016 was approximately $2,170,000 and $1,422,000, respectively. Loss and Loss Adjustment Expense Reserves The following table provides a reconciliation of the beginning and ending balances for unpaid losses and loss adjustment expense (“LAE”) reserves: Six months ended June 30, 2017 2016 Balance at beginning of period $ 41,736,719 $ 39,876,500 Less reinsurance recoverables (15,776,880) (16,706,364) Net balance, beginning of period 25,959,839 23,170,136 Incurred related to: Current year 15,958,020 15,378,670 Prior years (210,102) (107,979) Total incurred 15,747,918 15,270,691 Paid related to: Current year 7,462,585 7,554,317 Prior years 6,295,577 5,870,254 Total paid 13,758,162 13,424,571 Net balance at end of period 27,949,595 25,016,256 Add reinsurance recoverables 16,246,981 19,318,968 Balance at end of period $ 44,196,576 $ 44,335,224 Incurred losses and LAE are net of reinsurance recoveries under reinsurance contracts of $7,426,541 and $7,103,935 for the six months ended June 30, 2017 and 2016, respectively. Prior year incurred loss and LAE development is based upon estimates by line of business and accident year. Prior year loss and LAE development incurred during the six months ended June 30, 2017 and 2016 was $(210,102) favorable and $(107,979) favorable, 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. 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 monthly 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 determine the required IBNR reserves. These methods include the following: Paid Loss Development Incurred Loss Development Paid Bornhuetter-Ferguson (“BF”) Incurred Bornhuetter-Ferguson (“BF”) 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 dates of June 30, 2014 and prior is limited although there remains the possibility of adverse development on reported claims (‘case development’ IBNR). The following is information about incurred and paid claims development as of June 30, 2017, net of reinsurance, as well as the cumulative reported claims by accident year and total IBNR reserves as of June 30, 2017 included in the net incurred loss and allocated expense amounts. The historical information regarding incurred and paid claims development for the years ended December 31, 2008 to December 31, 2015 is presented as supplementary unaudited information. Reported claim counts are measured on an occurrence or per event basis. A single claim occurrence could result in more than one loss type or claimant; however the Company counts claims at the occurrence level as a single claim regardless of the number of claimants or claim features involved. All Lines of Business (in thousands, except reported claims data) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance June 30, 2017 For the Years Ended December 31, Six Months Ended June 30, IBNR Cumulative Number of Reported Claims by Accident Year Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Unaudited 2008 - 2015) (Unaudited) 2008 $4,505 $4,329 $4,223 $4,189 $4,068 $4,055 $4,056 $4,040 $4,038 $ 4,038 $ 2 1,133 2009 4,403 4,254 4,287 4,384 4,511 4,609 4,616 4,667 4,667 7 1,136 2010 5,598 5,707 6,429 6,623 6,912 6,853 6,838 6,848 11 1,616 2011 7,603 7,678 8,618 9,440 9,198 9,066 9,121 57 1,913 2012 9,539 9,344 10,278 10,382 10,582 10,703 128 4,702 (1) 2013 10,728 9,745 9,424 9,621 9,666 341 1,556 2014 14,193 14,260 14,218 14,368 938 2,123 2015 22,340 21,994 21,933 1,931 2,518 2016 26,062 25,444 3,835 2,815 2017 14,960 4,001 1,461 Total $121,748 (1) Reported claims for accident year 2012 includes 3,406 claims from Superstorm Sandy. All Lines of Business (in thousands) Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Six Months Ended June 30, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Unaudited 2008 - 2015) (Unaudited) 2008 $2,406 $3,346 $3,730 $3,969 $4,003 $4,029 $4,028 $4,031 $4,031 $ 4,031 2009 2,298 3,068 3,607 3,920 4,134 4,362 4,424 4,468 4,472 2010 2,566 3,947 4,972 5,602 6,323 6,576 6,720 6,767 2011 3,740 5,117 6,228 7,170 8,139 8,540 8,623 2012 3,950 5,770 7,127 8,196 9,187 9,762 2013 3,405 5,303 6,633 7,591 7,852 2014 5,710 9,429 10,738 11,080 2015 12,295 16,181 17,242 2016 15,364 18,749 2017 6,954 Total $ 95,532 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 26,216 All outstanding liabilities before 2008, net of reinsurance 589 Liabilities for claims and allocted claim adjustment expenses, net of reinsurance $ 26,805 The reconciliation of the net incurred and paid claims development tables to the loss and LAE reserves in the consolidated balance sheet is as follows: As of (in thousands) June 30, 2017 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 26,805 Total reinsurance recoverable on unpaid claims 16,247 Unallocated claims adjustment expenses 1,145 Total gross liability for loss and LAE reserves $ 44,197 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 would no longer offer renewals on its existing commercial auto policies beginning with those that expired on or after May 1, 2015. The Company had no commercial auto policies in force as of June 30, 2017 and 2016. As of June 30, 2017 and 2016, the Company had 23 and 44 open commercial auto claims outstanding, respectively. Reinsurance The Company’s quota share reinsurance treaties are on a July 1 through June 30 fiscal year basis; therefore, for year to date fiscal periods after June 30, two separate treaties will be included in such periods. The Company’s quota share reinsurance treaties in effect for the six months ended June 30, 2017 for its personal lines business, which primarily consists of homeowners’ policies, were covered under the July 1, 2016/June 30, 2017 treaty year (“2016/2017 Treaty”). The Company’s quota share reinsurance treaties in effect for the six months ended June 30, 2016 were covered under the July 1, 2015/June 30, 2016 treaty year (“2015/2016 Treaty”). In March 2017, the Company bound its personal lines quota share reinsurance treaty effective July 1, 2017. The treaty provides for a reduction in the quota share ceding rate to 20%, from 40% in the 2016/2017 Treaty, and an increase in the provisional ceding commission rate to 52.5%, from 52.0% in the 2016/2017 Treaty. The new treaty covers a two year period from July 1, 2017 through June 30, 2019 (“2017/2019 Treaty”). The Company has the option under certain circumstances to reduce the quota share ceding rate or terminate the 2017/2019 Treaty effective July 1, 2018 by giving advance notice to the two reinsurers who participate in the quota share reinsurance treaty. Such two reinsurers who participate in the treaty have the option under certain limited circumstances to reduce the quota share ceding rate or terminate the 2017/2019 Treaty effective July 1, 2018 by giving advance notice to the Company. The Company’s 2015/2016 Treaty, 2016/2017 Treaty, and 2017/2019 Treaty provide for the following material terms: Treaty Year July 1, 2017 July 1, 2016 July 1, 2015 to to to Line of Business June 30, 2018 June 30, 2017 June 30, 2016 Personal Lines: Homeowners, dwelling fire and canine legal liability Quota share treaty: Percent ceded 20% 40% 40% Risk retained $ 800,000 $ 500,000 $ 450,000 Losses per occurrence subject to quota share reinsurance coverage $ 1,000,000 $ 833,333 $ 750,000 Excess of loss coverage and facultative facility above quota share coverage (1) $ 9,000,000 $ 3,666,667 $ 3,750,000 in excess of in excess of in excess of $ 1,000,000 $ 833,333 $ 750,000 Total reinsurance coverage per occurrence $ 9,200,000 $ 4,000,000 $ 4,050,000 Losses per occurrence subject to reinsurance coverage $ 10,000,000 $ 4,500,000 $ 4,500,000 Expiration date June 30, 2019 June 30, 2017 June 30, 2016 Personal Umbrella Quota share treaty: Percent ceded - first $1,000,000 of coverage 90% 90% 90% Percent ceded - excess of $1,000,000 dollars of coverage 100% 100% 100% Risk retained $ 100,000 $ 100,000 $ 100,000 Total reinsurance coverage per occurrence $ 4,900,000 $ 4,900,000 $ 2,900,000 Losses per occurrence subject to quota share reinsurance coverage $ 5,000,000 $ 5,000,000 $ 3,000,000 Expiration date June 30, 2018 June 30, 2017 June 30, 2016 Commercial Lines: General liability commercial policies, except for commercial auto Quota share treaty: Percent ceded (terminated effective July 1, 2014) None None None Risk retained $ 750,000 $ 500,000 $ 425,000 Losses per occurrence subject to quota share reinsurance coverage None None None Excess of loss coverage above quota share coverage $ 3,750,000 $ 4,000,000 $ 4,075,000 in excess of in excess of in excess of $ 750,000 $ 500,000 $ 425,000 Total reinsurance coverage per occurrence $ 3,750,000 $ 4,000,000 $ 4,075,000 Losses per occurrence subject to reinsurance coverage $ 4,500,000 $ 4,500,000 $ 4,500,000 Commercial Umbrella Quota share treaty: Percent ceded - first $1,000,000 of coverage 90% 90% Percent ceded - excess of $1,000,000 of coverage 100% 100% Risk retained $ 100,000 $ 100,000 Total reinsurance coverage per occurrence $ 4,900,000 $ 4,900,000 Losses per occurrence subject to quota share reinsurance coverage $ 5,000,000 $ 5,000,000 Expiration date June 30, 2018 June 30, 2017 Commercial Auto: Risk retained $ 300,000 Excess of loss coverage in excess of risk retained $ 1,700,000 in excess of $ 300,000 Catastrophe Reinsurance: Initial loss subject to personal lines quota share treaty $ 5,000,000 $ 5,000,000 $ 4,000,000 Risk retained per catastrophe occurrence (2) $ 4,000,000 $ 3,000,000 $ 2,400,000 Catastrophe loss coverage in excess of quota share coverage (3) (4) $ 315,000,000 $ 247,000,000 $ 176,000,000 Severe winter weather aggregate (4) No No Yes Reinstatement premium protection (5) Yes Yes Yes (1) For personal lines, the 2017/2019 Treaty includes the addition of an automatic facultative facility allowing KICO to obtain homeowners single risk coverage up to $10,000,000 in total insured value, which covers direct losses from $3,500,000 to $10,000,000. (2) Plus losses in excess of catastrophe coverage. (3) Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts. Effective July 1, 2016, the duration of a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone was extended to 168 consecutive hours from 120 consecutive hours. (4) From July 1, 2015 through June 30, 2016, catastrophe treaty also covered losses caused by severe winter weather during any consecutive 28 day period. (5) Effective July 1, 2015, reinstatement premium protection for $16,000,000 of catastrophe coverage in excess of $4,000,000. Effective July 1, 2016, reinstatement premium protection for $20,000,000 of catastrophe coverage in excess of $5,000,000. Effective July 1, 2017, reinstatement premium protection for $145,000,000 of catastrophe coverage in excess of $5,000,000. The single maximum risks per occurrence to which the Company is subject under the treaties that expired on June 30, 2017 and 2016 are as follows: July 1, 2016 - June 30, 2017 July 1, 2015 - June 30, 2016 Treaty Extent of Loss Risk Retained Extent of Loss Risk Retained Personal Lines Initial $833,333 $500,000 Initial $750,000 $450,000 $833,333 - $4,500,000 None(1) $750,000 - $4,500,000 None(1) Over $4,500,000 100% Over $4,500,000 100% Personal Umbrella Initial $1,000,000 $100,000 Initial $1,000,000 $100,000 $1,000,000 - $5,000,000 None $1,000,000 - $3,000,000 None Over $5,000,000 100% Over $3,000,000 100% Commercial Lines Initial $500,000 $500,000 Initial $425,000 $425,000 $500,000 - $4,500,000 None(1) $425,000 - $4,500,000 None(1) Over $4,500,000 100% Over $4,500,000 100% Commercial Umbrella Initial $1,000,000 $100,000 $1,000,000 - $5,000,000 None Over $5,000,000 100% Catastrophe (2) Initial $5,000,000 $3,000,000 Initial $4,000,000 $2,400,000 $5,000,000 - $252,000,000 None $4,000,000 - $180,000,000 None Over $252,000,000 100% Over $180,000,000 100% (1) Covered by excess of loss treaties. (2) Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts. The single maximum risks per occurrence to which the Company is subject under the new treaties effective July 1, 2017 are as follows: July 1, 2017 - June 30, 2018 Treaty Extent of Loss Risk Retained Personal Lines (1) Initial $1,000,000 $800,000 $1,000,000 - $10,000,000 None(2) Over $10,000,000 100% Personal Umbrella Initial $1,000,000 $100,000 $1,000,000 - $5,000,000 None Over $5,000,000 100% Commercial Lines Initial $750,000 $750,000 $750,000 - $4,500,000 None(3) Over $4,500,000 100% Commercial Umbrella Initial $1,000,000 $100,000 $1,000,000 - $5,000,000 None Over $5,000,000 100% Catastrophe (4) Initial $5,000,000 $4,000,000 $5,000,000 - $320,000,000 None Over $320,000,000 100% (1) Two year treaty with expiration date of June 30, 2019. The Company and the reinsurers have the option to reduce quota share rate or terminate on June 30, 2018 as discussed above. (2) Covered by excess of loss treaties up to $3,500,000 and by facultative facility from $3,500,000 to $10,000,000. (3) Covered by excess of loss treaties. (4) 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 (“Loss Ratio(s)”) for treaties in effect for the three months and six months ended June 30, 2017 are attributable to contracts for the 2016/2017 Treaty. The Company’s Loss Ratios for treaties in effect for the three months and six months ended June 30, 2016 are attributable to contracts for the 2015/2016 Treaty. Treaties in effect for the three months and six months ended June 30, 2017 Under the 2016/2017 Treaty, the Company received an upfront fixed provisional rate that was subject to a sliding scale contingent adjustment based upon Loss Ratio. Under this arrangement, the Company earned provisional ceding commissions that were subject to later adjustment dependent on changes to the estimated Loss Ratio for the 2016/2017 Treaty. The Company’s Loss Ratios for the period July 1, 2016 through June 30, 2017 (attributable to the 2016/2017 Treaty) were consistent with the contractual Loss Ratio at which the provisional ceding commissions were earned and therefore no contingent commission was recorded for the three months and six months ended June 30, 2017. Treaties in effect for the three months and six months ended June 30, 2016 Under the 2015/2016 Treaty, the Company received an upfront fixed provisional rate that was subject to a sliding scale contingent rate adjustment based on Loss Ratio. Under this arrangement, the Company earned provisional ceding commissions that were subject to later adjustment dependent on changes to the estimated Loss Ratio for the 2015/2016 Treaty. The Company’s Loss Ratio for the period July 1, 2015 through June 30, 2016, which were attributable to the 2015/2016 Treaty, was higher than the contractual Loss Ratio at which provisional ceding commissions were earned. Accordingly, for the three months and six months ended June 30, 2016, the Company’s contingent ceding commission earned was reduced as a result of the estimated Loss Ratio for the 2015/2016 Treaty. In addition to the treaties that were in effect for the three months and six months ended June 30, 2017 and 2016, the Loss Ratios from prior years’ treaties are subject to change as incurred losses from those periods increase or decrease, resulting in an increase or decrease in the commission rate and contingent ceding commissions earned. Ceding commission revenue consists of the following: Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Provisional ceding commissions earned $ 3,424,577 $ 3,222,851 $ 6,768,346 $ 6,322,465 Contingent ceding commissions earned (118,639) (653,826) (277,956) (983,103) $ 3,305,938 $ 2,569,025 $ 6,490,390 $ 5,339,362 Provisional ceding commissions are settled monthly. Balances due from reinsurers for contingent ceding commissions on quota share treaties are settled annually based on the loss ratio of each treaty year that ends on June 30. As discussed above, the Loss Ratios from prior years’ treaties are subject to change as incurred losses from those periods develop, resulting in an increase or decrease in the commission rate and contingent ceding commissions earned. Contingent ceding commissions earned in any period include the combined effect of changes recorded for all active treaties. As of June 30, 2017 and December 31, 2016, net contingent ceding commissions payable to reinsurers under all treaties was approximately $1,170,000 and $773,000, respectively, which are recorded in reinsurance balances payable in the accompanying condensed consolidated balance sheets.

7. Stockholders' Equity

7. Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
7. Stockholders' Equity	Public Offering of Common Stock On January 31, 2017, the Company closed on an underwritten public offering of 2,500,000 shares of its Common Stock. On February 14, 2017, the Company closed on the underwriters’ purchase option for an additional 192,500 shares of its Common Stock. The public offering price for the 2,692,500 shares sold was $12.00 per share. The aggregate net proceeds to the Company were approximately $30,137,000, after deducting underwriting discounts and commissions and other offering expenses in the aggregate amount of approximately $2,173,000. On March 1, 2017, the Company used $23,000,000 of the net proceeds from the offering to contribute capital to its insurance subsidiary, KICO, to support its ratings upgrade plan and additional growth. The remainder of the net proceeds will be used for general corporate purposes. A shelf registration statement relating to the shares sold in the offering was filed with the SEC and became effective on January 19, 2017. Dividends Declared Dividends declared and paid on Common Stock were $1,513,633 and $952,128 for the six months ended June 30, 2017 and 2016, respectively. The Company’s Board of Directors approved a quarterly dividend on August 9, 2017 of $.08 per share payable in cash on September 15, 2017 to stockholders of record as of August 31, 2017 (see Note 11). 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. Pursuant to the Company’s 2014 Equity Participation Plan (the “2014 Plan”), 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 Compensation Committee of the Board 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 June 30, 2017 and 2016 include stock-based stock option compensation expense totaling approximately $14,000 and $34,000, respectively. The results of operations for the six months ended June 30, 2017 and 2016 include stock-based stock option compensation expense totaling approximately $30,000 and $66,000, respectively. Stock-based compensation expense related to stock options is net of estimated forfeitures of 17% for the three months and six months ended June 30, 2017 and 2016. Such amounts have been included in the condensed consolidated statements of income and comprehensive income within other operating expenses. Stock-based compensation expense for the six months ended June 30, 2017 and 2016 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 less an estimate for anticipated forfeitures. The Company uses the “simplified” method to estimate the expected term of the options because the Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate expected term. No options were granted during the six months ended June 30, 2017. The weighted average estimated fair value of stock options granted during the six months ended June 30, 2016 was $1.87 per share. The fair value of stock options at the grant date was estimated using the Black-Scholes option-pricing model. The following weighted average assumptions were used for grants during the following periods: Six months ended June 30, 2017 2016 Dividend Yield n/a 2.74% - 3.18% Volatility n/a 31.61% - 31.81% Risk-Free Interest Rate n/a 1.01% - 1.11% Expected Life n/a 3.25 years The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. Because our stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of our stock options. A summary of stock option activity under the Company’s 2014 Plan and 2005 Plan for the six months ended June 30, 2017 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, 2017 362,750 $ 6.62 2.61 $ 2,586,748 Granted - $ - $ - Exercised (6,500) $ 6.26 $ 50,188 Forfeited - $ - $ - Outstanding at June 30, 2017 356,250 $ 6.63 2.12 $ 3,090,223 Vested and Exercisable at June 30, 2017 273,750 $ 6.48 1.96 $ 2,415,123 The aggregate intrinsic value of options outstanding and options exercisable at June 30, 2017 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 $15.30 closing price of the Company’s Common Stock on June 30, 2017. Participants in the 2005 and 2014 Plans 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”). The Company received cash proceeds of $39,361 from the exercise of options for the purchase of 6,250 shares of Common Stock during the six months ended June 30, 2017. The remaining 250 options exercised during the six months ended June 30, 2017 were Net Exercises, resulting in the issuance of 166 shares of Common Stock. No options were exercised during the six months ended June 30, 2016. As of June 30, 2017, the fair value of unamortized compensation cost related to unvested stock option awards was approximately $14,000. Unamortized compensation cost as of June 30, 2017 is expected to be recognized over a remaining weighted-average vesting period of 0.78 years. As of June 30, 2017, there were 556,573 shares reserved for grants under the 2014 Plan. Other Equity Compensation In January 2017, the Company granted a total of 8,000 shares of restricted Common Stock under the 2014 Plan to its four non-employee directors. In January 2016, the Company granted a total of 6,000 shares of restricted Common Stock under the 2014 Plan to its three then non-employee directors. In March 2016, the Company granted 1,500 shares of restricted Common Stock under the 2014 Plan to a newly elected non-employee director. One-third of the shares granted will vest on each of the three annual anniversaries following the grant date. In February 2017, the Company granted a total of 16,000 shares of restricted Common Stock under the 2014 Plan to two executive officers. In April 2017 the Company granted a total of 24,010 shares of restricted Common Stock under the 2014 Plan to four executive officers and thirteen employees. The shares granted to executives and employees will vest on a monthly basis over the three year period following the grant date. Fair value was calculated using the closing price of our Common Stock on the grant date. For the three months and six months ended June 30, 2017, stock-based compensation of approximately $55,000 and $97,000, respectively, for these grants is included in the condensed consolidated statements of income and comprehensive income. These amounts reflect the Company’s accounting expense and do not correspond to the actual value that will be recognized by the executives and employees.

8. Income Taxes

8. Income Taxes	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
8. Income Taxes	The Company files a consolidated U.S. federal income tax return that includes all wholly owned subsidiaries. State tax returns are filed on a consolidated or separate return basis depending on applicable laws. The Company records adjustments related to prior years’ taxes during the period when they are identified, generally when the tax returns are filed. The effect of these adjustments on the current and prior periods (during which the differences originated) is evaluated based upon quantitative and qualitative factors and are considered in relation to the condensed consolidated financial statements taken as a whole for the respective periods. 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 various rates depending on whether the temporary differences are subject to federal taxes, state taxes, or both. Significant components of the Company’s deferred tax assets and liabilities are as follows: June 30, December 31, 2017 2016 Deferred tax asset: Net operating loss carryovers (1) $ 112,760 $ 131,626 Claims reserve discount 449,361 417,349 Unearned premium 3,141,650 2,877,365 Deferred ceding commission revenue 2,457,848 2,329,626 Other 372,142 188,675 Total deferred tax assets 6,533,761 5,944,641 Deferred tax liability: Investment in KICO (2) 1,169,000 1,169,000 Deferred acquisition costs 4,516,786 4,161,526 Intangibles 401,200 459,000 Depreciation and amortization 267,447 265,671 Net unrealized appreciation of securities - available for sale 519,168 56,393 Total deferred tax liabilities 6,873,601 6,111,590 Net deferred income tax liability $ (339,840) $ (166,949) (1) The deferred tax assets from net operating loss carryovers (“NOL”) are as follows: June 30, December 31, Type of NOL 2017 2016 Expiration State only (A) $ 730,737 $ 655,719 December 31, 2037 Valuation allowance (624,777) (534,293) State only, net of valuation allowance 105,960 121,426 Amount subject to Annual Limitation, federal only (B) 6,800 10,200 December 31, 2019 Total deferred tax asset from net operating loss carryovers $ 112,760 $ 131,626 (A) Kingstone generates operating losses for state purposes and has prior year NOLs available. The state NOL as of June 30, 2017 and December 31, 2016 was approximately $11,242,000 and $10,088,000, 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 2037. (B) The Company has an NOL of $20,000 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 In assessing the valuation of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. No valuation allowance against deferred tax assets has been established, except for NOL limitations, as the Company believes it is more likely than not the deferred tax assets will be realized based on the historical taxable income of KICO, or by offset to deferred tax liabilities. The Company had no material unrecognized tax benefit and no adjustments to liabilities or operations were required. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the six months ended June 30, 2017 and 2016. If any had been recognized these would have been reported in income tax expense. Generally, taxing authorities may examine the Company’s tax returns for the three years from the date of filing. The Company’s tax returns for the years ended December 31 2013 through December 31, 2016 remain subject to examination.

9. Earnings Per Common Share

9. Earnings Per Common Share	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
9. Earnings Per Common Share	Basic net earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per common share reflect, in periods in which they have a dilutive effect, the impact of common shares issuable upon exercise of stock options. The computation of diluted earnings per common share excludes those options with an exercise price in excess of the average market price of the Company’s common shares during the periods presented. The computation of diluted earnings per common share excludes outstanding options in periods where the exercise of such options would be anti-dilutive. For the three months ended June 30, 2017 and 2016, the inclusion of -0- and 29,794 options, respectively, in the computation of diluted earnings per common share would have been anti-dilutive for the periods and, as a result, the weighted average number of common shares used in the calculation of diluted earnings per common share has not been adjusted for the effect of such options. For the six months ended June 30, 2017 and 2016, the inclusion of -0- and 17,060 options, respectively, in the computation of diluted earnings per common share would have been anti-dilutive for the periods and, as a result, the weighted average number of common shares used in the calculation of diluted earnings per common share has not been adjusted for the effect of such options. The reconciliation of the weighted average number of common shares used in the calculation of basic and diluted earnings per common share follows: Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Weighted average number of shares outstanding 10,622,496 7,794,347 10,145,772 7,558,366 Effect of dilutive securities, common share equivalents 200,081 58,937 191,441 48,865 Weighted average number of shares outstanding, used for computing diluted earnings per share 10,822,577 7,853,284 10,337,213 7,607,231

10. Commitments and Contingenci

10. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
10. 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 lawsuit against one of the Company’s insureds covered by a particular policy, the Company may have a duty to defend the insured party against the claim. These claims may relate to bodily injury, property damage or other compensable injuries as set forth in the policy. Such proceedings are considered in estimating the liability for loss and LAE expenses. The Company is not subject to any other pending legal proceedings that management believes are likely to have a material adverse effect on the condensed consolidated financial statements. Office 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. Rent expense under the lease is recognized on a straight-line basis over the lease term. At June 30, 2017, cumulative rent expense exceeded cumulative rent payments by $87,857. This difference is recorded as deferred rent and is included in accounts payable, accrued expenses and other liabilities in the accompanying condensed consolidated balance sheets. As of June 30, 2017, aggregate future minimum rental commitments under the Company’s modified lease agreement are as follows: For the Year Ending December 31, Total 2017 (six months) $ 79,959 2018 164,117 2019 169,861 2020 175,806 2021 181,959 Thereafter 432,392 Total $ 1,204,094 Rent expense for the three months ended June 30, 2017 and 2016 amounted to $41,342 and $26,126, respectively. Rent expense for the six months ended June 30, 2017 and 2016 amounted to $82,684 and $52,252 respectively. Rent expense is included in the condensed consolidated statements of income and comprehensive income within other underwriting expenses.

11. Subsequent Events

11. Subsequent Events	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
11. Subsequent Events	The Company has evaluated events that occurred subsequent to June 30, 2017 through the date these condensed consolidated financial statements were issued for matters that required disclosure or adjustment in these condensed consolidated financial statements. Investments In July 2017, KICO became a member of the Federal Home Loan Bank of New York (“FHLBNY”). M Dividends Declared and Paid On August 9, 2017, the Company’s Board of Directors approved a quarterly dividend of $.08 per share payable in cash on September 15, 2017 to stockholders of record as of the close of business on August 31, 2017. Reinsurance KICO entered into new annual reinsurance treaties with different terms effective July 1, 2017. See Note 6, Property and Casualty Insurance Activity – Reinsurance.

2. Accounting Policies (Policie

2. Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
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: 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. All significant inter-company account balances and transactions have been eliminated in consolidation.
Accounting Changes	In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-09, Financial Services – Insurance (Topic 944): Disclosures About Short-Duration Contracts. The updated accounting guidance requires expanded disclosures for insurance entities that issue short-duration contracts. The expanded disclosures are designed to provide additional insight into an insurance entity’s ability to underwrite and anticipate costs associated with insurance claims. The disclosures include information about incurred and paid claims development by accident year, on a net basis after reinsurance, for the number of years claims incurred that typically remain outstanding, not to exceed ten years. Each period presented in the disclosure about claims development that precedes the current reporting period is considered required supplementary information. The expanded disclosures also include information about significant changes in methodologies and assumptions, a reconciliation of incurred and paid claims development to the carrying amount of the liability for unpaid claims and claim adjustment expenses, the total amount of incurred but not reported liabilities plus expected development, claims frequency information including the methodology used to determine claim frequency and any changes to that methodology, and claim duration. The guidance became effective for annual periods beginning after December 15, 2015, and interim periods beginning after December 15, 2016, and has been applied retrospectively. The new guidance affected disclosures only and had no impact on the Company’s results of operations or financial position. Effective January 1, 2017, the Company has adopted the provisions of ASU 2016-09 – Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which requires recognition of all income tax effects from share-based payments arising on or after January 1, 2017 (the Company’s adoption date) in income tax expense. As a result, the Company realized windfall tax benefits in the interim period of adoption of approximately $5,000, which was recognized as a discrete period income tax benefit as required by this ASU. This benefit resulted in lowering the Company’s effective tax rate for the interim period by 0.1%.
Accounting Pronouncements	In May 2014, FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606). The standard excludes from its scope the accounting for insurance contracts, financial instruments, and certain other agreements that are governed under other GAAP guidance. 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. ASU 2014-09, as amended by ASU 2015-14, ASU 2016-08, ASU 2016-10 and ASU 2016-20, is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted for annual 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 consolidated financial statements. In January 2016, FASB issued ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The updated accounting guidance requires changes to the reporting model for financial instruments. The primary change for the Company is expected to be the requirement for equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The updated guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements. In February 2016, FASB issued ASU 2016-02 – Leases (Topic 842). Under this ASU, lessees will recognize a right-of-use-asset and corresponding liability on the balance sheet for all leases, except for leases covering a period of fewer than 12 months. The liability is to be measured as the present value of the future minimum lease payments taking into account renewal options if applicable plus initial incremental direct costs such as commissions. The minimum payments are discounted using the rate implicit in the lease or, if not known, the lessee’s incremental borrowing rate. The lessee’s income statement treatment for leases will vary depending on the nature of what is being leased. A financing type lease is present when, among other matters, the asset is being leased for a substantial portion of its economic life or has an end-of-term title transfer or a bargain purchase option as in today’s practice. The payment of the liability set up for such leases will be apportioned between interest and principal; the right-of use asset will be generally amortized on a straight-line basis. If the lease does not qualify as a financing type lease, it will be accounted for on the income statement as rent on a straight-line basis. The guidance will be effective for the Company for interim and annual reporting periods beginning after December 15, 2018. The Company will apply the guidance using a modified retrospective approach. Early application is permitted. The Company is evaluating whether the adoption of ASU 2016-02 will have a significant impact on its consolidated results of operations, financial position or cash flows. In June 2016, FASB issued ASU 2016-13 - Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The revised accounting guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses of available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020. The Company is currently evaluating the effect the updated guidance will have on its consolidated financial statements. In August 2016, FASB issued ASU 2016-15 - Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The revised ASU provides accounting guidance for eight specific cash flow issues. FASB issued the standard to clarify areas where GAAP has been either unclear or lacking in specific guidance. ASU 2016-15 will be effective for the Company for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the effect the updated guidance will have on its consolidated statement of cash flows. The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

3. Investments (Tables)

3. Investments (Tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Schedule of Availalbe for Sale Securities	June 30, 2017 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 $ 12,080,402 $ 269,275 $ (40,955) $ (23,057) $ 12,285,665 $ 205,263 Corporate and other bonds Industrial and miscellaneous 77,041,418 1,202,532 (371,550) (5,946) 77,866,454 825,036 Residential mortgage and other asset backed securities 22,252,959 233,063 (190,684) (23,946) 22,271,392 18,433 Total fixed-maturity securities 111,374,779 1,704,870 (603,189) (52,949) 112,423,511 1,048,732 Equity Securities: Preferred stocks 6,512,399 59,812 (77,538) (88,073) 6,406,600 (105,799) Common stocks 4,798,698 656,319 (10,131) (78,668) 5,366,218 567,520 Total equity securities 11,311,097 716,131 (87,669) (166,741) 11,772,818 461,721 Total $ 122,685,876 $ 2,421,001 $ (690,858) $ (219,690) $ 124,196,329 $ 1,510,453 December 31, 2016 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 $ 8,053,449 $ 199,028 $ (46,589) $ - $ 8,205,888 $ 152,439 Corporate and other bonds Industrial and miscellaneous 53,728,395 600,519 (638,113) (5,612) 53,685,189 (43,206) Residential mortgage backed securities 18,814,784 70,682 (309,273) (38,442) 18,537,751 (277,033) Total fixed-maturity securities 80,596,628 870,229 (993,975) (44,054) 80,428,828 (167,800) Equity Securities: Preferred stocks 5,986,588 10,317 (241,333) (70,571) 5,685,001 (301,587) Common stocks 3,722,797 691,324 (13,968) (97,468) 4,302,685 579,888 Total equity securities 9,709,385 701,641 (255,301) (168,039) 9,987,686 278,301 Total $ 90,306,013 $ 1,571,870 $ (1,249,276) $ (212,093) $ 90,416,514 $ 110,501
Schedule of Availalbe for Sale Securities by contractual maturity	June 30, 2017 December 31, 2016 Amortized Amortized Remaining Time to Maturity Cost Fair Value Cost Fair Value Less than one year $ 2,377,970 $ 2,391,524 $ 1,752,501 $ 1,765,795 One to five years 31,548,682 32,100,717 29,541,568 29,913,308 Five to ten years 50,427,456 50,883,126 30,487,775 30,211,974 More than 10 years 4,767,712 4,776,752 - - Residential mortgage and other asset backed securities 22,252,959 22,271,392 18,814,784 18,537,751 Total $ 111,374,779 $ 112,423,511 $ 80,596,628 $ 80,428,828
Schedule of Held to Maturity Securities	June 30, 2017 Cost or Gross Gross Unrealized Losses Net Amortized Unrealized Less than 12 More than 12 Fair Unrealized Category Cost Gains Months Months Value Gains U.S. Treasury securities $ 606,446 $ 147,593 $ - $ - $ 754,039 $ 147,593 Political subdivisions of States, Territories and Possessions 1,149,077 55,703 (2,500) - 1,202,280 53,203 Corporate and other bonds Industrial and miscellaneous 3,140,371 117,338 (5,025) (15,231) 3,237,453 97,082 Total $ 4,895,894 $ 320,634 $ (7,525) $ (15,231) $ 5,193,772 $ 297,878 December 31, 2016 Cost or Gross Gross Unrealized Losses Net Amortized Unrealized Less than 12 More than 12 Fair Unrealized Category Cost Gains Months Months Value Gains U.S. Treasury securities $ 606,427 $ 147,612 $ - $ - $ 754,039 $ 147,612 Political subdivisions of States, Territories and Possessions 1,349,916 37,321 - - 1,387,237 37,321 Corporate and other bonds Industrial and miscellaneous 3,138,559 72,784 (7,619) (46,881) 3,156,843 18,284 Total $ 5,094,902 $ 257,717 $ (7,619) $ (46,881) $ 5,298,119 $ 203,217
Schedule of Held to Maturity Securities by contractual maturity	June 30, 2017 December 31, 2016 Amortized Amortized Remaining Time to Maturity Cost Fair Value Cost Fair Value Less than one year $ - $ - $ - $ - One to five years 1,300,771 1,327,098 650,000 642,455 Five to ten years 2,988,677 3,112,635 3,838,475 3,901,625 More than 10 years 606,446 754,039 606,427 754,039 Total $ 4,895,894 $ 5,193,772 $ 5,094,902 $ 5,298,119
Schedule of Investment Income	Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Income: Fixed-maturity securities $ 935,543 $ 685,776 $ 1,680,996 $ 1,350,252 Equity securities 128,501 104,652 264,986 280,603 Cash and cash equivalents 2,505 2,732 8,674 9,178 Total 1,066,549 793,160 1,954,656 1,640,033 Expenses: Investment expenses 40,545 29,090 70,852 62,906 Net investment income $ 1,026,004 $ 764,070 $ 1,883,804 $ 1,577,127
Schedule of Securities with realized gains and losses on investments	Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Fixed-maturity securities: Gross realized gains $ 48,595 $ 205,476 $ 61,718 $ 311,893 Gross realized losses (1) (74,437) (65,428) (110,557) (170,971) (25,842) 140,048 (48,839) 140,922 Equity securities: Gross realized gains 156,265 232,929 156,265 315,617 Gross realized losses - (19,634) (31,509) (22,760) 156,265 213,295 124,756 292,857 Other-than-temporary impairment losses: Fixed-maturity securities - (69,911) - (69,911) Net realized gains $ 130,423 $ 283,432 $ 75,917 $ 363,868 (1) Gross realized losses for the six months ended June 30, 2017 include $747 of loss from the redemption of fixed-maturity securities held-to-maturity.
Schedule of Securities with Unrealized Losses	June 30, 2017 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 $ 4,767,571 $ (40,955) 8 $ 307,632 $ (23,057) 1 $ 5,075,203 $ (64,012) Corporate and other bonds industrial and miscellaneous 16,347,328 (371,550) 30 240,000 (5,946) 1 16,587,328 (377,496) Residential mortgage and other asset backed securities 15,639,089 (190,684) 20 168,088 (23,946) 3 15,807,177 (214,630) Total fixed-maturity securities $ 36,753,988 $ (603,189) 58 $ 715,720 $ (52,949) 5 $ 37,469,708 $ (656,138) Equity Securities: Preferred stocks $ 3,033,150 $ (77,538) 7 $ 1,158,400 $ (88,073) 2 $ 4,191,550 $ (165,611) Common stocks 725,031 (10,131) 2 279,750 (78,668) 1 1,004,781 (88,799) Total equity securities $ 3,758,181 $ (87,669) 9 $ 1,438,150 $ (166,741) 3 $ 5,196,331 $ (254,410) Total $ 40,512,169 $ (690,858) 67 $ 2,153,870 $ (219,690) 8 $ 42,666,039 $ (910,548) December 31, 2016 Less than 12 months 12 months or more Total No. of No. of Aggregate Fair Unrealized Positions Fair Unrealized Positions Fair Unrealized Category Value Losses Held Value Losses Held Value Losses Fixed-Maturity Securities: Political subdivisions of States, Territories and Possessions $ 1,067,574 $ (46,589) 3 $ - $ - - $ 1,067,574 $ (46,589) Corporate and other bonds industrial and miscellaneous 19,859,293 (638,113) 34 239,970 (5,612) 1 20,099,263 (643,725) Residential mortgage backed securities 15,918,090 (309,273) 30 675,316 (38,442) 6 16,593,406 (347,715) Total fixed-maturity securities $ 36,844,957 $ (993,975) 67 $ 915,286 $ (44,054) 7 $ 37,760,243 $ (1,038,029) Equity Securities: Preferred stocks $ 3,759,850 $ (241,333) 8 $ 660,750 $ (70,571) 1 $ 4,420,600 $ (311,904) Common stocks 288,075 (13,968) 1 424,550 (97,468) 1 712,625 (111,436) Total equity securities $ 4,047,925 $ (255,301) 9 $ 1,085,300 $ (168,039) 2 $ 5,133,225 $ (423,340) Total $ 40,892,882 $ (1,249,276) 76 $ 2,000,586 $ (212,093) 9 $ 42,893,468 $ (1,461,369)

4. Fair Value Measurements (Tab

4. Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Schedule of Fair Value Measurements	June 30, 2017 Level 1 Level 2 Level 3 Total Fixed-maturity securities available-for-sale Political subdivisions of States, Territories and Possessions $ - $ 12,285,665 $ - $ 12,285,665 Corporate and other bonds industrial and miscellaneous 73,039,798 4,826,656 - 77,866,454 Residential mortgage and other asset backed securities - 22,271,392 - 22,271,392 Total fixed maturities 73,039,798 39,383,713 - 112,423,511 Equity securities 11,772,818 - - 11,772,818 Total investments $ 84,812,616 $ 39,383,713 $ - $ 124,196,329 December 31, 2016 Level 1 Level 2 Level 3 Total Fixed-maturity securities available-for-sale Political subdivisions of States, Territories and Possessions $ - $ 8,205,888 $ - $ 8,205,888 Corporate and other bonds industrial and miscellaneous 48,356,317 5,328,872 - 53,685,189 Residential mortgage backed securities - 18,537,751 - 18,537,751 Total fixed maturities 48,356,317 32,072,511 - 80,428,828 Equity securities 9,987,686 - - 9,987,686 Total investments $ 58,344,003 $ 32,072,511 $ - $ 90,416,514

5. Fair Value of Financial In22

5. Fair Value of Financial Instruments and Real Estate (Tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Schedule of Fair Value of Financial Instruments	June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Fixed-maturity securities held-to-maturity $ 4,895,894 $ 5,193,772 $ 5,094,902 $ 5,298,119 Cash and cash equivalents $ 14,357,465 $ 14,357,465 $ 12,044,520 $ 12,044,520 Premiums receivable $ 13,126,077 $ 13,126,077 $ 11,649,398 $ 11,649,398 Reinsurance receivables $ 34,543,843 $ 34,543,843 $ 32,197,765 $ 32,197,765 Real estate, net of accumulated depreciation $ 1,828,350 $ 1,925,000 $ 1,659,405 $ 1,925,000 Reinsurance balances payable $ 2,803,939 $ 2,803,939 $ 2,146,017 $ 2,146,017

6. Property and Casualty Insu23

6. Property and Casualty Insurance Activity (Tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Schedule of Earned Premiums	Direct Assumed Ceded Net Six months ended June 30, 2017 Premiums written $ 56,583,867 $ 6,293 $(20,128,555) $ 36,461,605 Change in unearned premiums (4,048,796) 8,327 902,339 (3,138,130) Premiums earned $ 52,535,071 $ 14,620 $(19,226,216) $ 33,323,475 Six months ended June 30, 2016 Premiums written $ 49,204,416 $ 15,998 $(17,605,857) $ 31,614,557 Change in unearned premiums (2,573,545) 3,537 498,001 $ (2,072,007) Premiums earned $ 46,630,871 $ 19,535 $(17,107,856) $ 29,542,550 Three months ended June 30, 2017 Premiums written $ 30,458,400 $ 1,865 $(10,732,965) $ 19,727,300 Change in unearned premiums (3,717,893) 5,346 938,974 (2,773,573) Premiums earned $ 26,740,507 $ 7,211 $ (9,793,991) $ 16,953,727 Three months ended June 30, 2016 Premiums written $ 26,161,091 $ 10,920 $ (9,219,329) $ 16,952,682 Change in unearned premiums (2,447,117) (34) 505,344 (1,941,807) Premiums earned $ 23,713,974 $ 10,886 $ (8,713,985) $ 15,010,875
Schedule of Loss and Loss Adjustment Expenses	Six months ended June 30, 2017 2016 Balance at beginning of period $ 41,736,719 $ 39,876,500 Less reinsurance recoverables (15,776,880) (16,706,364) Net balance, beginning of period 25,959,839 23,170,136 Incurred related to: Current year 15,958,020 15,378,670 Prior years (210,102) (107,979) Total incurred 15,747,918 15,270,691 Paid related to: Current year 7,462,585 7,554,317 Prior years 6,295,577 5,870,254 Total paid 13,758,162 13,424,571 Net balance at end of period 27,949,595 25,016,256 Add reinsurance recoverables 16,246,981 19,318,968 Balance at end of period $ 44,196,576 $ 44,335,224
Allocated Claim Adjustment Expenses	All Lines of Business (in thousands, except reported claims data) As of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance June 30, 2017 For the Years Ended December 31, Six Months Ended June 30, IBNR Cumulative Number of Reported Claims by Accident Year Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Unaudited 2008 - 2015) (Unaudited) 2008 $4,505 $4,329 $4,223 $4,189 $4,068 $4,055 $4,056 $4,040 $4,038 $ 4,038 $ 2 1,133 2009 4,403 4,254 4,287 4,384 4,511 4,609 4,616 4,667 4,667 7 1,136 2010 5,598 5,707 6,429 6,623 6,912 6,853 6,838 6,848 11 1,616 2011 7,603 7,678 8,618 9,440 9,198 9,066 9,121 57 1,913 2012 9,539 9,344 10,278 10,382 10,582 10,703 128 4,702 (1) 2013 10,728 9,745 9,424 9,621 9,666 341 1,556 2014 14,193 14,260 14,218 14,368 938 2,123 2015 22,340 21,994 21,933 1,931 2,518 2016 26,062 25,444 3,835 2,815 2017 14,960 4,001 1,461 Total $121,748 (1) Reported claims for accident year 2012 includes 3,406 claims from Superstorm Sandy. All Lines of Business (in thousands) Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Six Months Ended June 30, Accident Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Unaudited 2008 - 2015) (Unaudited) 2008 $2,406 $3,346 $3,730 $3,969 $4,003 $4,029 $4,028 $4,031 $4,031 $ 4,031 2009 2,298 3,068 3,607 3,920 4,134 4,362 4,424 4,468 4,472 2010 2,566 3,947 4,972 5,602 6,323 6,576 6,720 6,767 2011 3,740 5,117 6,228 7,170 8,139 8,540 8,623 2012 3,950 5,770 7,127 8,196 9,187 9,762 2013 3,405 5,303 6,633 7,591 7,852 2014 5,710 9,429 10,738 11,080 2015 12,295 16,181 17,242 2016 15,364 18,749 2017 6,954 Total $ 95,532 Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 26,216 All outstanding liabilities before 2008, net of reinsurance 589 Liabilities for claims and allocted claim adjustment expenses, net of reinsurance $ 26,805
Reconciliation of the net incurred and paid claims	As of (in thousands) June 30, 2017 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 26,805 Total reinsurance recoverable on unpaid claims 16,247 Unallocated claims adjustment expenses 1,145 Total gross liability for loss and LAE reserves $ 44,197
Schedule of line of business	Treaty Year July 1, 2017 July 1, 2016 July 1, 2015 to to to Line of Business June 30, 2018 June 30, 2017 June 30, 2016 Personal Lines: Homeowners, dwelling fire and canine legal liability Quota share treaty: Percent ceded 20% 40% 40% Risk retained $ 800,000 $ 500,000 $ 450,000 Losses per occurrence subject to quota share reinsurance coverage $ 1,000,000 $ 833,333 $ 750,000 Excess of loss coverage and facultative facility above quota share coverage (1) $ 9,000,000 $ 3,666,667 $ 3,750,000 in excess of in excess of in excess of $ 1,000,000 $ 833,333 $ 750,000 Total reinsurance coverage per occurrence $ 9,200,000 $ 4,000,000 $ 4,050,000 Losses per occurrence subject to reinsurance coverage $ 10,000,000 $ 4,500,000 $ 4,500,000 Expiration date June 30, 2019 June 30, 2017 June 30, 2016 Personal Umbrella Quota share treaty: Percent ceded - first $1,000,000 of coverage 90% 90% 90% Percent ceded - excess of $1,000,000 dollars of coverage 100% 100% 100% Risk retained $ 100,000 $ 100,000 $ 100,000 Total reinsurance coverage per occurrence $ 4,900,000 $ 4,900,000 $ 2,900,000 Losses per occurrence subject to quota share reinsurance coverage $ 5,000,000 $ 5,000,000 $ 3,000,000 Expiration date June 30, 2018 June 30, 2017 June 30, 2016 Commercial Lines: General liability commercial policies, except for commercial auto Quota share treaty: Percent ceded (terminated effective July 1, 2014) None None None Risk retained $ 750,000 $ 500,000 $ 425,000 Losses per occurrence subject to quota share reinsurance coverage None None None Excess of loss coverage above quota share coverage $ 3,750,000 $ 4,000,000 $ 4,075,000 in excess of in excess of in excess of $ 750,000 $ 500,000 $ 425,000 Total reinsurance coverage per occurrence $ 3,750,000 $ 4,000,000 $ 4,075,000 Losses per occurrence subject to reinsurance coverage $ 4,500,000 $ 4,500,000 $ 4,500,000 Commercial Umbrella Quota share treaty: Percent ceded - first $1,000,000 of coverage 90% 90% Percent ceded - excess of $1,000,000 of coverage 100% 100% Risk retained $ 100,000 $ 100,000 Total reinsurance coverage per occurrence $ 4,900,000 $ 4,900,000 Losses per occurrence subject to quota share reinsurance coverage $ 5,000,000 $ 5,000,000 Expiration date June 30, 2018 June 30, 2017 Commercial Auto: Risk retained $ 300,000 Excess of loss coverage in excess of risk retained $ 1,700,000 in excess of $ 300,000 Catastrophe Reinsurance: Initial loss subject to personal lines quota share treaty $ 5,000,000 $ 5,000,000 $ 4,000,000 Risk retained per catastrophe occurrence (2) $ 4,000,000 $ 3,000,000 $ 2,400,000 Catastrophe loss coverage in excess of quota share coverage (3) (4) $ 315,000,000 $ 247,000,000 $ 176,000,000 Severe winter weather aggregate (4) No No Yes Reinstatement premium protection (5) Yes Yes Yes (1) For personal lines, the 2017/2019 Treaty includes the addition of an automatic facultative facility allowing KICO to obtain homeowners single risk coverage up to $10,000,000 in total insured value, which covers direct losses from $3,500,000 to $10,000,000. (2) Plus losses in excess of catastrophe coverage. (3) Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts. Effective July 1, 2016, the duration of a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone was extended to 168 consecutive hours from 120 consecutive hours. (4) From July 1, 2015 through June 30, 2016, catastrophe treaty also covered losses caused by severe winter weather during any consecutive 28 day period. (5) Effective July 1, 2015, reinstatement premium protection for $16,000,000 of catastrophe coverage in excess of $4,000,000. Effective July 1, 2016, reinstatement premium protection for $20,000,000 of catastrophe coverage in excess of $5,000,000. Effective July 1, 2017, reinstatement premium protection for $145,000,000 of catastrophe coverage in excess of $5,000,000.
Schedule of Single maximum risks under treaties	July 1, 2016 - June 30, 2017 July 1, 2015 - June 30, 2016 Treaty Extent of Loss Risk Retained Extent of Loss Risk Retained Personal Lines Initial $833,333 $500,000 Initial $750,000 $450,000 $833,333 - $4,500,000 None(1) $750,000 - $4,500,000 None(1) Over $4,500,000 100% Over $4,500,000 100% Personal Umbrella Initial $1,000,000 $100,000 Initial $1,000,000 $100,000 $1,000,000 - $5,000,000 None $1,000,000 - $3,000,000 None Over $5,000,000 100% Over $3,000,000 100% Commercial Lines Initial $500,000 $500,000 Initial $425,000 $425,000 $500,000 - $4,500,000 None(1) $425,000 - $4,500,000 None(1) Over $4,500,000 100% Over $4,500,000 100% Commercial Umbrella Initial $1,000,000 $100,000 $1,000,000 - $5,000,000 None Over $5,000,000 100% Catastrophe (2) Initial $5,000,000 $3,000,000 Initial $4,000,000 $2,400,000 $5,000,000 - $252,000,000 None $4,000,000 - $180,000,000 None Over $252,000,000 100% Over $180,000,000 100% (1) Covered by excess of loss treaties. (2) Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts. July 1, 2017 - June 30, 2018 Treaty Extent of Loss Risk Retained Personal Lines (1) Initial $1,000,000 $800,000 $1,000,000 - $10,000,000 None(2) Over $1,000,000 100% Personal Umbrella Initial $1,000,000 $100,000 $1,000,000 - $5,000,000 None Over $5,000,000 100% Commercial Lines Initial $750,000 $750,000 $750,000 - $4,500,000 None(3) Over $4,500,000 100% Commercial Umbrella Initial $1,000,000 $100,000 $1,000,000 - $5,000,000 None Over $5,000,000 100% Catastrophe (4) Initial $5,000,000 $4,000,000 $5,000,000 - $320,000,000 None Over $320,000,000 100% (1) Two year treaty with expiration date of June 30, 2019. The Company and the reinsurers have the option to reduce quota share rate or terminate on June 30, 2018 as discussed above. (2) Covered by excess of loss treaties up to $3,500,000 and by facultative facility from $3,500,000 to $10,000,000. (3) Covered by excess of loss treaties. (4) Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.
Schedule of Ceding Commission Revenue	Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Provisional ceding commissions earned $ 3,424,577 $ 3,222,851 $ 6,768,346 $ 6,322,465 Contingent ceding commissions earned (118,639) (653,826) (277,956) (983,103) $ 3,305,938 $ 2,569,025 $ 6,490,390 $ 5,339,362

7. Stockholders' Equity (Tables

7. Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Weighted average assumptions	Six months ended June 30, 2017 2016 Dividend Yield n/a 2.74% - 3.18% Volatility n/a 31.61% - 31.81% Risk-Free Interest Rate n/a 1.01% - 1.11% Expected Life n/a 3.25 years
Schedule of Stock Options Activity	Stock Options Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2017 362,750 $ 6.62 2.61 $ 2,586,748 Granted - $ - $ - Exercised (6,500) $ 6.26 $ 50,188 Forfeited - $ - $ - Outstanding at June 30, 2017 356,250 $ 6.63 2.12 $ 3,090,223 Vested and Exercisable at June 30, 2017 273,750 $ 6.48 1.96 $ 2,415,123

8. Income Taxes (Tables)

8. Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Schedule of Deferrred Tax Assets and Liabilities	June 30, December 31, 2017 2016 Deferred tax asset: Net operating loss carryovers (1) $ 112,760 $ 131,626 Claims reserve discount 449,361 417,349 Unearned premium 3,141,650 2,877,365 Deferred ceding commission revenue 2,457,848 2,329,626 Other 372,142 188,675 Total deferred tax assets 6,533,761 5,944,641 Deferred tax liability: Investment in KICO (2) 1,169,000 1,169,000 Deferred acquisition costs 4,516,786 4,161,526 Intangibles 401,200 459,000 Depreciation and amortization 267,447 265,671 Net unrealized appreciation of securities - available for sale 519,168 56,393 Total deferred tax liabilities 6,873,601 6,111,590 Net deferred income tax liability $ (339,840) $ (166,949)
Losses subject to Annual Limitation	June 30, December 31, Type of NOL 2017 2016 Expiration State only (A) $ 730,737 $ 655,719 December 31, 2037 Valuation allowance (624,777) (534,293) State only, net of valuation allowance 105,960 121,426 Amount subject to Annual Limitation, federal only (B) 6,800 10,200 December 31, 2019 Total deferred tax asset from net operating loss carryovers $ 112,760 $ 131,626

9. Earnings Per Common Share (T

9. Earnings Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings per common share:
Schedule of Net Income Per Common Share	Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 Weighted average number of shares outstanding 10,622,496 7,794,347 10,145,772 7,558,366 Effect of dilutive securities, common share equivalents 200,081 58,937 191,441 48,865 Weighted average number of shares outstanding, used for computing diluted earnings per share 10,822,577 7,853,284 10,337,213 7,607,231

10. Commitments and Contingen27

10. Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments And Contingencies Tables
Schedule of future minimum rental commitments	For the Year Ending December 31, Total 2017 (six months) $ 79,959 2018 164,117 2019 169,861 2020 175,806 2021 181,959 Thereafter 432,392 Total $ 1,204,094

3. Investments (Details)

3. Investments (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Cost or Amortized Cost	$ 122,685,876	$ 90,306,013
Gross Unrealized Gains	2,421,001	1,571,870
Gross Unrealized Losses-Less than 12 Months	(690,858)	(1,249,276)
Gross Unrealized Loss-More than 12 Months	(219,690)	(212,093)
Fair Value	124,196,329	90,416,514
Net Unrealized Gains/(Losses)	1,510,453	110,501
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions [Member]
Cost or Amortized Cost	12,080,402	8,053,449
Gross Unrealized Gains	269,275	199,028
Gross Unrealized Losses-Less than 12 Months	(40,955)	(46,589)
Gross Unrealized Loss-More than 12 Months	(23,057)	0
Fair Value	12,285,665	8,205,888
Net Unrealized Gains/(Losses)	205,263	152,439
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous [Member]
Cost or Amortized Cost	77,041,418	53,728,395
Gross Unrealized Gains	1,202,532	600,519
Gross Unrealized Losses-Less than 12 Months	(371,550)	(638,113)
Gross Unrealized Loss-More than 12 Months	(5,946)	(5,612)
Fair Value	77,866,454	53,685,189
Net Unrealized Gains/(Losses)	825,036	(43,206)
Fixed Maturity Securities Residential Mortgage and other asset backed securities [Member]
Cost or Amortized Cost	22,252,959	18,814,784
Gross Unrealized Gains	233,063	70,682
Gross Unrealized Losses-Less than 12 Months	(190,684)	(309,273)
Gross Unrealized Loss-More than 12 Months	(23,946)	(38,442)
Fair Value	22,271,392	18,537,751
Net Unrealized Gains/(Losses)	18,433	(277,033)
Fixed Maturity Securities Total Fixed Maturity Securities [Member]
Cost or Amortized Cost	111,374,779	80,596,628
Gross Unrealized Gains	1,704,870	870,229
Gross Unrealized Losses-Less than 12 Months	(603,189)	(993,975)
Gross Unrealized Loss-More than 12 Months	(52,949)	(44,054)
Fair Value	112,423,511	80,428,828
Net Unrealized Gains/(Losses)	1,048,732	(167,800)
Equity Securities Preferred Stocks [Member]
Cost or Amortized Cost	6,512,399	5,986,588
Gross Unrealized Gains	59,812	10,317
Gross Unrealized Losses-Less than 12 Months	(77,538)	(241,333)
Gross Unrealized Loss-More than 12 Months	(88,073)	(70,571)
Fair Value	6,406,600	5,685,001
Net Unrealized Gains/(Losses)	(105,799)	(301,587)
Equity Securities Common Stocks [Member]
Cost or Amortized Cost	4,798,698	3,722,797
Gross Unrealized Gains	656,319	691,324
Gross Unrealized Losses-Less than 12 Months	(10,131)	(13,968)
Gross Unrealized Loss-More than 12 Months	(78,668)	(97,468)
Fair Value	5,366,218	4,302,685
Net Unrealized Gains/(Losses)	567,520	579,888
Equity Securities Total Equity Securities [Member]
Cost or Amortized Cost	11,311,097	9,709,385
Gross Unrealized Gains	716,131	701,641
Gross Unrealized Losses-Less than 12 Months	(87,669)	(255,301)
Gross Unrealized Loss-More than 12 Months	(166,741)	(168,039)
Fair Value	11,772,818	9,987,686
Net Unrealized Gains/(Losses)	$ 461,721	$ 278,301

3. Investments (Details 1)

3. Investments (Details 1) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Amortized Cost	$ 111,374,779	$ 80,596,628
Fair Value	112,423,511	80,428,828
Less Than One Year [Member]
Amortized Cost	2,377,970	1,752,501
Fair Value	2,391,524	1,765,795
One To Five Years [Member]
Amortized Cost	31,548,682	29,541,568
Fair Value	32,100,717	29,913,308
Five To Ten Years [Member]
Amortized Cost	50,427,456	30,487,775
Fair Value	50,883,126	30,211,974
More Than 10 Years [Member]
Amortized Cost	4,767,712	0
Fair Value	4,776,752	0
Residential mortgage-backed securities [Member]
Amortized Cost	22,252,959	18,814,784
Fair Value	$ 22,271,392	$ 18,537,751

3. Investments (Details 2)

3. Investments (Details 2) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Cost or Amortized Cost	$ 4,895,894	$ 5,094,902
Gross Unrealized Gains	320,634	257,717
Gross Unrealized Losses-Less than 12 Months	(7,525)	(7,619)
Gross Unrealized Loss-More than 12 Months	(15,231)	(46,881)
Fair Value	5,193,772	5,298,119
Net Unrealized Gains/(Losses)	297,878	203,217
US Treasury Securities [Member]
Cost or Amortized Cost	606,446	606,427
Gross Unrealized Gains	147,593	147,612
Gross Unrealized Losses-Less than 12 Months	0	0
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	754,039	754,039
Net Unrealized Gains/(Losses)	147,593	147,612
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions [Member]
Cost or Amortized Cost	1,149,077	1,349,916
Gross Unrealized Gains	55,703	37,321
Gross Unrealized Losses-Less than 12 Months	(2,500)	0
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	1,202,280	1,387,237
Net Unrealized Gains/(Losses)	53,203	37,321
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous [Member]
Cost or Amortized Cost	3,140,371	3,138,559
Gross Unrealized Gains	117,338	72,784
Gross Unrealized Losses-Less than 12 Months	(5,025)	(7,619)
Gross Unrealized Loss-More than 12 Months	(15,231)	(46,881)
Fair Value	3,237,453	3,156,843
Net Unrealized Gains/(Losses)	$ 97,082	$ 18,284

3. Investments (Details 3)

3. Investments (Details 3) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Amortized Cost	$ 4,895,894	$ 5,094,902
Fair Value	5,193,772	5,298,119
Less Than One Year [Member]
Amortized Cost	0	0
Fair Value	0	0
One To Five Years [Member]
Amortized Cost	1,300,771	650,000
Fair Value	1,327,098	642,455
Five To Ten Years [Member]
Amortized Cost	2,988,677	3,838,475
Fair Value	3,112,635	3,901,625
More Than 10 Years [Member]
Amortized Cost	606,446	606,427
Fair Value	$ 754,039	$ 754,039

3. Investments (Details 4)

3. Investments (Details 4) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income:
Fixed-maturity securities	$ 935,543	$ 685,776	$ 1,680,996	$ 1,350,252
Equity securities	128,501	104,652	264,986	280,603
Cash and cash equivalents	2,505	2,732	8,674	9,178
Total	1,066,549	793,160	1,954,656	1,640,033
Expenses:
Investment expenses	40,545	29,090	70,852	62,906
Net investment income	$ 1,026,004	$ 764,070	$ 1,883,804	$ 1,577,127

3. Investments (Details 5)

3. Investments (Details 5) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Fixed-maturity securities:
Gross realized gains	$ 48,595	$ 205,476	$ 61,718	$ 311,893
Gross realized losses	(74,437)	(65,428)	(110,557)	(170,971)
Total fixed-maturity securities	(25,842)	140,048	(48,839)	140,922
Equity securities:
Gross realized gains	156,265	232,929	156,265	315,617
Gross realized losses	0	(19,634)	(31,509)	(22,760)
Total equity securities	156,265	213,295	124,756	292,857
Other-than-temporary impairment losses:
Fixed-maturity securities	0	(69,911)	0	(69,911)
Net realized gains	$ 130,423	$ 283,432	$ 75,917	$ 363,868

3. Investments (Details 6)

3. Investments (Details 6) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Fair Value-Less than 12 months	$ 40,512,169	$ 40,892,882
Unrealized Losses-Less than 12 Months	(690,858)	(1,249,276)
No. of Positions Held-Less than 12 Months	67	76
Fair Value-12 months or more	2,153,870	2,000,586
Unrealized Losses-12 months or more	(219,690)	(212,093)
No. of Positions Held-12 months or more	8	9
Aggregate Fair Value-Total	42,666,039	42,893,468
Unrealized Losses-Total	(910,548)	(1,461,369)
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions [Member]
Fair Value-Less than 12 months	4,767,571	1,067,574
Unrealized Losses-Less than 12 Months	(40,955)	(46,589)
No. of Positions Held-Less than 12 Months	8	3
Fair Value-12 months or more	307,632	0
Unrealized Losses-12 months or more	(23,057)	0
No. of Positions Held-12 months or more	1	0
Aggregate Fair Value-Total	5,075,203	1,067,574
Unrealized Losses-Total	(64,012)	(46,589)
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous [Member]
Fair Value-Less than 12 months	16,347,328	19,859,293
Unrealized Losses-Less than 12 Months	(371,550)	(638,113)
No. of Positions Held-Less than 12 Months	30	34
Fair Value-12 months or more	240,000	239,970
Unrealized Losses-12 months or more	(5,946)	(5,612)
No. of Positions Held-12 months or more	1	1
Aggregate Fair Value-Total	16,587,328	20,099,263
Unrealized Losses-Total	(377,496)	(643,725)
Fixed Maturity Securities Residential Mortgage and other asset backed securities [Member]
Fair Value-Less than 12 months	15,639,089	15,918,090
Unrealized Losses-Less than 12 Months	(190,684)	(309,273)
No. of Positions Held-Less than 12 Months	20	30
Fair Value-12 months or more	168,088	675,316
Unrealized Losses-12 months or more	(23,946)	(38,442)
No. of Positions Held-12 months or more	3	6
Aggregate Fair Value-Total	15,807,177	16,593,406
Unrealized Losses-Total	(214,630)	(347,715)
Fixed Maturity Securities Total Fixed Maturity Securities [Member]
Fair Value-Less than 12 months	36,753,988	36,844,957
Unrealized Losses-Less than 12 Months	(603,189)	(993,975)
No. of Positions Held-Less than 12 Months	58	67
Fair Value-12 months or more	715,720	915,286
Unrealized Losses-12 months or more	(52,949)	(44,054)
No. of Positions Held-12 months or more	5	7
Aggregate Fair Value-Total	37,469,708	37,760,243
Unrealized Losses-Total	(656,138)	(1,038,029)
Equity Securities Preferred Stocks [Member]
Fair Value-Less than 12 months	3,033,150	3,759,850
Unrealized Losses-Less than 12 Months	(77,538)	(241,333)
No. of Positions Held-Less than 12 Months	7	8
Fair Value-12 months or more	1,158,400	660,750
Unrealized Losses-12 months or more	(88,073)	(70,571)
No. of Positions Held-12 months or more	2	1
Aggregate Fair Value-Total	4,191,550	4,420,600
Unrealized Losses-Total	(165,611)	(311,904)
Equity Securities Common Stocks [Member]
Fair Value-Less than 12 months	725,031	288,075
Unrealized Losses-Less than 12 Months	(10,131)	(13,968)
No. of Positions Held-Less than 12 Months	2	1
Fair Value-12 months or more	279,750	424,550
Unrealized Losses-12 months or more	(78,668)	(97,468)
No. of Positions Held-12 months or more	1	1
Aggregate Fair Value-Total	1,004,781	712,625
Unrealized Losses-Total	(88,799)	(111,436)
Equity Securities Total Equity Securities [Member]
Fair Value-Less than 12 months	3,758,181	4,047,925
Unrealized Losses-Less than 12 Months	(87,669)	(255,301)
No. of Positions Held-Less than 12 Months	9	9
Fair Value-12 months or more	1,438,150	1,085,300
Unrealized Losses-12 months or more	(166,741)	(168,039)
No. of Positions Held-12 months or more	3	2
Aggregate Fair Value-Total	5,196,331	5,133,225
Unrealized Losses-Total	$ (254,410)	$ (423,340)

3. Investments (Details Narrati

3. Investments (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Investments Details Narrative
Proceeds from the sale and maturity of fixed-maturity securities	$ 5,732,151	$ 14,314,798
Proceeds from the sale of equity securities	$ 798,973	$ 4,212,336

4. Fair Value Measurements (Det

4. Fair Value Measurements (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Political subdivisions of States, Territories and Possessions	$ 12,285,665	$ 8,205,888
Corporate and other bonds industrial and miscellaneous	77,866,454	53,685,189
Residential mortgage and other asset backed securities	22,271,392	18,537,751
Total fixed maturities	112,423,511	80,428,828
Equity securities	11,772,818	9,987,686
Total investments	124,196,329	90,416,514
Level 1
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	73,039,798	48,356,317
Residential mortgage and other asset backed securities	0	0
Total fixed maturities	73,039,798	48,356,317
Equity securities	11,772,818	9,987,686
Total investments	84,812,616	58,344,003
Level 2
Political subdivisions of States, Territories and Possessions	12,285,665	8,205,888
Corporate and other bonds industrial and miscellaneous	4,826,656	5,328,872
Residential mortgage and other asset backed securities	22,271,392	18,537,751
Total fixed maturities	39,383,713	32,072,511
Equity securities	0	0
Total investments	39,383,713	32,072,511
Level 3
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	0	0
Residential mortgage and other asset backed securities	0	0
Total fixed maturities	0	0
Equity securities	0	0
Total investments	$ 0	$ 0

5. Fair Value of Financial In37

5. Fair Value of Financial Instruments and Real Estate (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Reinsurance balances payable	$ 2,803,939	$ 2,146,017
Carrying Value [Member]
Fixed-maturity securities held-to-maturity	4,895,894	5,094,902
Cash and cash equivalents	14,357,465	12,044,520
Premiums receivable	13,126,077	11,649,398
Reinsurance receivables	34,543,843	32,197,765
Real estate, net of accumulated depreciation	1,828,350	1,659,405
Reinsurance balances payable	2,803,939	2,146,017
Fair Value [Member]
Fixed-maturity securities held-to-maturity	5,193,772	5,298,119
Cash and cash equivalents	14,357,465	12,044,520
Premiums receivable	13,126,077	11,649,398
Reinsurance receivables	34,543,843	32,197,765
Real estate, net of accumulated depreciation	1,925,000	1,925,000
Reinsurance balances payable	$ 2,803,939	$ 2,146,017

6. Property and Casualty Insu38

6. Property and Casualty Insurance Activity (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Premiums Written [Member]
Direct	$ 30,458,400	$ 26,161,091	$ 56,583,867	$ 49,204,416
Assumed	1,865	10,920	6,293	15,998
Ceded	(10,732,965)	(9,219,329)	(20,128,555)	(17,605,857)
Net	19,727,300	16,952,682	36,461,605	31,614,557
Changes In Unearned Premiums [Member]
Direct	(3,717,893)	(2,447,117)	(4,048,796)	(2,573,545)
Assumed	5,346	(34)	8,327	3,537
Ceded	938,974	505,344	902,339	498,001
Net	(2,773,573)	(1,941,807)	(3,138,130)	(2,072,007)
Premiums Earned [Member]
Direct	26,740,507	23,713,974	52,535,071	46,630,871
Assumed	7,211	10,886	14,620	19,535
Ceded	(9,793,991)	(8,713,985)	(19,226,216)	(17,107,856)
Net	$ 16,953,727	$ 15,010,875	$ 33,323,475	$ 29,542,550

6. Property and Casualty Insu39

6. Property and Casualty Insurance Activity (Details 1) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Property And Casualty Insurance Activity Details 1
Balance at beginning of period	$ 41,736,719	$ 39,876,500
Less reinsurance recoverables	(15,776,880)	(16,706,364)
Net balance, beginning of period	25,959,839	23,170,136
Incurred related to:
Current year	15,958,020	15,378,670
Prior years	(210,102)	(107,979)
Total incurred	15,747,918	15,270,691
Paid related to:
Current year	7,462,585	7,554,317
Prior years	6,295,577	5,870,254
Total paid	13,758,162	13,424,571
Net balance at end of period	27,949,595	25,016,256
Add reinsurance recoverables	16,246,981	19,318,968
Balance at end of period	$ 44,196,576	$ 44,335,224

6. Property and Casualty Insu40

6. Property and Casualty Insurance Activity (Details 2) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Personal Lines [Member]
Percent ceded	20.00%	40.00%	40.00%
Risk retained	$ 800,000	$ 500,000	$ 450,000
Losses per occurrence subject to quota share reinsurance coverage	1,000,000	833,333	750,000
Excess of loss coverage above quota share coverage	9,000,000	3,666,667	3,750,000
In excess of	1,000,000	833,333	750,000
Total reinsurance coverage per occurrence	9,200,000	4,000,000	4,050,000
Losses per occurrence subject to reinsurance coverage	$ 10,000,000	$ 4,500,000	$ 4,500,000
Expiration date	Jun. 30, 2019	Jun. 30, 2017	Jun. 30, 2016
Personal Umbrella [Member]
Percent ceded - first million dollars of coverage	90.00%	90.00%	90.00%
Percent ceded - excess of one million dollars of coverage	100.00%	100.00%	100.00%
Risk retained	$ 100,000	$ 100,000	$ 100,000
Total reinsurance coverage per occurrence	4,900,000	4,900,000	2,900,000
Losses per occurrence subject to reinsurance coverage	$ 5,000,000	$ 5,000,000	$ 3,000,000
Expiration date	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Commercial Lines [Member]
Percent ceded (terminated effective July 1, 2014)	0.00%	0.00%	0.00%
Risk retained	$ 750,000	$ 500,000	$ 425,000
Losses per occurrence subject to quota share reinsurance coverage	0	0	0
Excess of loss coverage above quota share coverage	3,750,000	4,000,000	4,075,000
In excess of	750,000	500,000	425,000
Total reinsurance coverage per occurrence	3,750,000	4,000,000	4,075,000
Losses per occurrence subject to reinsurance coverage	$ 4,500,000	$ 4,500,000	4,500,000
Commercial 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%
Risk retained	$ 100,000	$ 100,000
Total reinsurance coverage per occurrence	4,900,000	4,900,000
Losses per occurrence subject to reinsurance coverage	$ 5,000,000	$ 5,000,000
Expiration date	Jun. 30, 2018	Jun. 30, 2017
Commercial Auto [Member]
Risk retained			300,000
Excess of loss coverage above quota share coverage			1,700,000
In excess of			300,000
Catastrophe [Member]
Initial loss subject to personal lines quota share treaty	$ 5,000,000	$ 5,000,000	4,000,000
Risk retained per catastrophe occurrence (1)	4,000,000	3,000,000	2,400,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)	$ 315,000,000	$ 247,000,000	$ 176,000,000
Severe winter weather aggregate	No	No	Yes
Reinstatement premium protection	Yes	Yes	Yes

6. Property and Casualty Insu41

6. Property and Casualty Insurance Activity (Details 3)	6 Months Ended
	Jun. 30, 2017USD ($)Number
2,008
2,008	$ 4,505
IBNR	$ 2
Cumulative Number of Reported Claims | Number	1,133
2,009
2,008	$ 4,329
2,009	4,403
IBNR	$ 7
Cumulative Number of Reported Claims | Number	1,136
2,010
2,008	$ 4,223
2,009	4,254
2,010	5,598
IBNR	$ 11
Cumulative Number of Reported Claims | Number	1,616
2,011
2,008	$ 4,189
2,009	4,287
2,010	5,707
2,011	7,603
IBNR	$ 57
Cumulative Number of Reported Claims | Number	1,913
2,012
2,008	$ 4,068
2,009	4,384
2,010	6,429
2,011	7,678
2,012	9,539
IBNR	$ 128
Cumulative Number of Reported Claims | Number	4,702
2,013
2,008	$ 4,055
2,009	4,511
2,010	6,623
2,011	8,618
2,012	9,344
2,013	10,728
IBNR	$ 341
Cumulative Number of Reported Claims | Number	1,556
2,014
2,008	$ 4,056
2,009	4,609
2,010	6,912
2,011	9,440
2,012	10,278
2,013	9,745
2,014	14,193
IBNR	$ 938
Cumulative Number of Reported Claims | Number	2,123
2,015
2,008	$ 4,040
2,009	4,616
2,010	6,853
2,011	9,198
2,012	10,382
2,013	9,424
2,014	14,260
2,015	22,340
IBNR	$ 1,931
Cumulative Number of Reported Claims | Number	2,518
2,016
2,008	$ 4,038
2,009	4,667
2,010	6,838
2,011	9,066
2,012	10,582
2,013	9,621
2,014	14,218
2,015	21,994
2,016	26,062
IBNR	$ 3,835
Cumulative Number of Reported Claims | Number	2,815
2,017
2,008	$ 4,038
2,009	4,667
2,010	6,848
2,011	9,121
2,012	10,703
2,013	9,666
2,014	14,368
2,015	21,933
2,016	25,444
2,017	14,960
Total	121,748
IBNR	$ 4,001
Cumulative Number of Reported Claims | Number	1,461

6. Property and Casualty Insu42

6. Property and Casualty Insurance Activity (Details 4)	Jun. 30, 2017USD ($)
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented	$ 26,216
All outstanding liabilities before 2007, net of reinsurance	589
Liabilities for claims and claim adjustment expenses, net of reinsurance	26,805
2,008
2,008	2,406
2,009
2,008	3,346
2,009	2,298
2,010
2,008	3,730
2,009	3,068
2,010	2,566
2,011
2,008	3,969
2,009	3,607
2,010	3,947
2,011	3,740
2,012
2,008	4,003
2,009	3,920
2,010	4,972
2,011	5,117
2,012	3,950
2,013
2,008	4,029
2,009	4,134
2,010	5,602
2,011	6,228
2,012	5,770
2,013	3,405
2,014
2,008	4,028
2,009	4,362
2,010	6,323
2,011	7,170
2,012	7,127
2,013	5,303
2,014	5,710
2,015
2,008	4,031
2,009	4,424
2,010	6,576
2,011	8,139
2,012	8,196
2,013	6,633
2,014	9,429
2,015	12,295
2,016
2,008	4,031
2,009	4,468
2,010	6,720
2,011	8,540
2,012	9,187
2,013	7,591
2,014	10,738
2,015	16,181
2,016	15,364
2,017
2,008	4,031
2,009	4,472
2,010	6,767
2,011	8,623
2,012	9,762
2,013	7,852
2,014	11,080
2,015	17,242
2,016	18,749
2,017	6,954
Total	$ 95,532

6. Property and Casualty Insu43

6. Property and Casualty Insurance Activity (Details 5)	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Personal Lines [Member] | Initial $750,000 [Member]
Risk Retained		$ 450,000
Personal Lines [Member] | $750,000 - $4,500,000 [Member]
Risk Retained		None1
Personal Lines [Member] | Over $4,500,000 [Member]
Risk Retained		100%
Personal Lines [Member] | Initial $833333 [Member]
Risk Retained	$ 500,000
Personal Lines [Member] | $833,333 - $4,500,000 [Member]
Risk Retained	None1
Personal Lines [Member] | Over $4,500,000 [Member]
Risk Retained	100%
Personal Umbrella [Member] | Initial $1,000,000 [Member]
Risk Retained		$ 100,000
Personal Umbrella [Member] | $1,000,000 - $3,000,000 [Member]
Risk Retained		None
Personal Umbrella [Member] | Over $3,000,000 [Member]
Risk Retained		100%
Personal Umbrella [Member] | Initial $1,000,000 [Member]
Risk Retained	$ 100,000
Personal Umbrella [Member] | $1,000,000 - $5,000,000 [Member]
Risk Retained	None
Personal Umbrella [Member] | Over $5,000,000 [Member]
Risk Retained	100%
Commercial Lines [Member] | Initial $425,000 [Member]
Risk Retained		$ 425,000
Commercial Lines [Member] | $425,000 - $4,500,000 [Member]
Risk Retained		None1
Commercial Lines [Member] | Over $4,500,000 [Member]
Risk Retained		100%
Commercial Lines [Member] | Initial $500,000 [Member]
Risk Retained	$ 500,000
Commercial Lines [Member] | $500,000 - $4,500,000 [Member]
Risk Retained	None1
Commercial Lines [Member] | Over $4,500,000 [Member]
Risk Retained	100%
Commercial Auto [Member] | Initial $1,000,000 [Member]
Risk Retained	$ 100,000
Commercial Auto [Member] | $1,000,000 - $5,000,000 [Member]
Risk Retained	None1
Commercial Auto [Member] | Over $5,000,000 [Member]
Risk Retained	100%
Catastrophe [Member] | Initial $4,000,000 [Member]
Risk Retained		$ 2,400,000
Catastrophe [Member] | $4,000,000 - $180,000,000 [Member]
Risk Retained		None
Catastrophe [Member] | Over $180,000,000 [Member]
Risk Retained		100%
Catastrophe [Member] | Initial $5,000,000 [Member]
Risk Retained	$ 3,000,000
Catastrophe [Member] | $5,000,000 - $252,000,000 [Member]
Risk Retained	None
Catastrophe [Member] | Over $252,000,000 [Member]
Risk Retained	100%

6. Property and Casualty Insu44

6. Property and Casualty Insurance Activity (Details 6) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property And Casualty Insurance Activity Details 6
Provisional ceding commissions earned	$ 3,424,577	$ 3,222,851	$ 6,768,346	$ 6,322,465
Contingent ceding commissions earned	(118,639)	(653,826)	(277,956)	(983,103)
Total commissions earned	$ 3,305,938	$ 2,569,025	$ 6,490,390	$ 5,339,362

6. Property and Casualty Insu45

6. Property and Casualty Insurance Activity (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Property And Casualty Insurance Activity Details Narrative
Advance premiums	$ 2,170,000		$ 1,422,000
Incurred Losses and Loss Adjustment Expenses are net of reinsurance recoveries under reinsurance contracts	7,426,541	$ 7,103,935
Prior year loss development	$ (210,102)	$ (107,979)

7. Stockholders' Equity (Detail

7. Stockholders' Equity (Details)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Dividend Yield	0.00%
Volatility	0.00%
Risk-Free Interest Rate	0.00%
Expected Life	0 years	3 years 3 months
Minimum [Member]
Dividend Yield	2.74%
Volatility	31.61%
Risk-Free Interest Rate	1.01%
Maximum [Member]
Dividend Yield	3.18%
Volatility	31.81%
Risk-Free Interest Rate	1.11%

7. Stockholders' Equity (Deta47

7. Stockholders' Equity (Details 1)	6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Stockholders Equity Details 1
Number of Options Outstanding, Beginning | shares	362,750
Number of Options Granted | shares	0
Number of Options Exercised | shares	(6,500)
Number of Options Forfeited | shares	0
Number of Options Outstanding, Ending | shares	356,250
Number of Options Vested and Exercisable | shares	273,750
Weighted Average Exercise Price Outstanding, Beginning	$ 6.62
Weighted Average Exercise Price Granted	0
Weighted Average Exercise Price Exercised	6.26
Weighted Average Exercise Price Forfeited	0
Weighted Average Exercise Price Outstanding, Ending	6.63
Weighted Average Exercise Price Vested and Exercisable	$ 6.48
Weighted Average Remaining Contractual Life (in years) Outstanding Beginning	2 years 7 months 10 days
Weighted Average Remaining Contractual Life (in years) Outstanding Ending	2 years 1 month 13 days
Weighted Average Remaining Contractual Life (in years) Vested and Exercisable	1 year 11 months 16 days
Aggregate Intrinsic Value Outstanding, Beginning | $	$ 2,586,748
Aggregate Intrinsic Value Granted	$ 0
Aggregate Intrinsic Value Exercised | $	$ 50,188
Aggregate Intrinsic Value Forfeited/canceled	$ 0
Aggregate Intrinsic Value Outstanding, Ending | $	$ 3,090,223
Aggregate Intrinsic Value Vested and Exercisable | $	$ 2,415,123

7. Stockholders' Equity (Deta48

7. Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Dividends Declared			$ 1,513,633	$ 952,128
Compensation Expense	$ 14,000	$ 34,000	30,000	$ 66,000
Stock-based compensation expense related to stock options is net of estimated forfeitures	17.00%	17.00%
Unamortized compensation cost related to unvested stock option awards	$ 14,000		$ 14,000
Unamortized compensation cost vesting period			9 months 11 days
2014 Plan [Member]
Shares reserved	556,573		556,573

8. Income Taxes (Details)

8. Income Taxes (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Deferred tax asset:
Net operating loss carryovers (1)	$ 112,760	$ 131,626
Claims reserve discount	449,361	417,349
Unearned premium	3,141,650	2,877,365
Deferred ceding commission revenue	2,457,848	2,329,626
Other	372,142	188,675
Total deferred tax assets	6,533,761	5,944,641
Deferred tax liability:
Investment in KICO (2)	1,169,000	1,169,000
Deferred acquisition costs	4,516,786	4,161,526
Intangibles	401,200	459,000
Depreciation and amortization	267,447	265,671
Net unrealized appreciation of securities - available for sale	519,168	56,393
Total deferred tax liabilities	6,873,601	6,111,590
Net deferred income tax liability	$ (339,840)	$ (166,949)

8. Income Taxes (Details 1)

8. Income Taxes (Details 1) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Income Taxes Details 1
State only (A)	$ 730,737	$ 655,719
Valuation allowance	(624,777)	(534,293)
State only, net of valuation allowance	105,960	121,426
Amount subject to Annual Limitation, Federal only (B)	6,800	10,200
Total deferred tax asset from net operating loss carryovers	$ 112,760	$ 131,626
State only (A) expiration date	December 31, 2037
Amount subject to Annual Limitation, Federal only (B) expiration date	December 31, 2019

8. Income Taxes (Details Narrat

8. Income Taxes (Details Narrative) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Income Taxes Details Narrative
Net operating loss carryover	$ 11,242,000	$ 10,088,000

9. Earnings Per Common Share (D

9. Earnings Per Common Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Common Share Details
Weighted average number of shares outstanding	10,622,496	7,794,347	10,145,772	7,558,366
Effect of dilutive securities, common share equivalents	$ 200,081	$ 58,937	$ 191,441	$ 48,865
Weighted average number of shares outstanding, used for computing diluted earnings per share	10,822,577	7,853,284	10,337,213	7,607,231

9. Earnings Per Common Share 53

9. Earnings Per Common Share (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Common Share Details Narrative
Options computation of diluted earnings per share	0	29,794	0	17,060

10. Commitments and Contingen54

10. Commitments and Contingencies (Details)	Jun. 30, 2017USD ($)
Notes to Financial Statements
2017 (six months)	$ 79,959
2,018	164,117
2,019	169,861
2,020	175,806
2,021	181,959
Thereafter	432,392
Total	$ 1,204,094

10. Commitments and Contingen55

10. Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Notes to Financial Statements
Lease and rental expenses	$ 41,342	$ 26,126	$ 82,684	$ 52,252