Kingstone Companies (KINS) 10-Q/A8 Nov 182018 Q3 Quarterly report (amended)Financial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2018	Nov. 08, 2018
Document And Entity Information
Entity Registrant Name	KINGSTONE COMPANIES, INC.
Entity Central Index Key	33,992
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		10,702,928
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Assets
Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $4,410,764 at September 30, 2018 and $5,150,076 at December 31, 2017)	$ 4,222,352	$ 4,869,808
Fixed-maturity securities, available-for-sale, at fair value (amortized cost of $144,572,834 at September 30, 2018 and $119,122,106 at December 31, 2017)	141,360,535	119,988,256
Equity securities, at fair value (cost of $18,494,308 at September 30, 2018 and $13,761,841 at December 31, 2017)	18,876,690	14,286,198
Other investments	2,241,444	0
Total investments	166,701,021	139,144,262
Cash and cash equivalents	29,893,676	48,381,633
Investment subscription receivable	0	2,000,000
Premiums receivable, net	13,484,547	13,217,698
Reinsurance receivables, net	25,018,461	28,519,130
Deferred policy acquisition costs	17,123,248	14,847,236
Intangible assets, net	755,000	1,010,000
Property and equipment, net	5,798,042	4,772,577
Deferred income taxes	122,003	0
Other assets	4,476,703	2,655,527
Total assets	263,372,701	254,548,063
Liabilities
Loss and loss adjustment expense reserves	53,942,957	48,799,622
Unearned premiums	75,574,404	65,647,663
Advance premiums	2,888,720	1,477,693
Reinsurance balances payable	1,723,844	2,563,966
Deferred ceding commission revenue	2,517,468	4,266,412
Accounts payable, accrued expenses and other liabilities	6,108,345	7,487,654
Deferred income taxes	0	600,342
Long-term debt, net	29,251,206	29,126,965
Total liabilities	172,006,944	159,970,317
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 11,729,166 shares at September 30, 2018 and 11,618,646 at December 31, 2017; outstanding 10,701,727 shares at September 30, 2018 and 10,631,837 shares at December 31, 2017	117,291	116,186
Capital in excess of par	68,220,714	68,380,390
Accumulated other comprehensive (loss) income	(2,595,040)	1,100,647
Retained earnings	28,335,344	27,152,822
Total	94,078,309	96,750,045
Treasury stock, at cost, 1,027,439 shares at September 30, 2018, and 986,809 shares at December 31, 2017	(2,712,552)	(2,172,299)
Total stockholders' equity	91,365,757	94,577,746
Total liabilities and stockholders' equity	$ 263,372,701	$ 254,548,063

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Condensed Consolidated Balance Sheets
Fixed-maturity securities, held-to-maturity, fair value	$ 4,410,764	$ 5,150,076
Fixed-maturity securities, available-for-sale, amortized cost	144,572,834	119,122,106
Equity securities, available-for-sale, cost	$ 18,494,308	$ 13,761,841
Stockholders' Equity
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized shares	2,500,000	2,500,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued shares	11,729,166	11,618,646
Common stock, outstanding shares	10,701,727	10,631,837
Treasury stock, Shares	1,027,439	986,809

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Net premiums earned	$ 27,533,907	$ 21,514,408	$ 74,476,138	$ 54,837,883
Ceding commission revenue	1,044,529	1,717,610	4,430,855	8,208,000
Net investment income	1,602,371	1,033,307	4,543,226	2,917,111
Net gains (losses) on investments	352,025	20,998	(277,835)	96,915
Other income	353,077	328,330	961,581	926,189
Total revenues	30,885,909	24,614,653	84,133,965	66,986,098
Expenses
Loss and loss adjustment expenses	13,296,708	7,073,323	41,739,123	22,821,241
Commission expense	6,594,323	5,500,483	18,411,460	15,491,027
Other underwriting expenses	5,193,679	4,475,455	15,301,168	12,887,488
Other operating expenses	683,309	1,069,005	1,773,983	2,731,499
Depreciation and amortization	440,383	378,518	1,273,975	1,023,390
Interest expense	456,545	0	1,365,052	0
Total expenses	26,664,947	18,496,784	79,864,761	54,954,645
Income from operations before taxes	4,220,962	6,117,869	4,269,204	12,031,453
Income tax expense	287,232	2,043,948	296,111	3,976,560
Net income	3,933,730	4,073,921	3,973,093	8,054,893
Other comprehensive (loss) income, net of tax
Gross change in unrealized (losses) gains on available-for-sale-securities	(242,453)	499,077	(4,591,699)	1,974,946
Reclassification adjustment for losses (gains) included in net income	131,978	(20,998)	451,877	(96,915)
Net change in unrealized (losses) gains	(110,475)	478,079	(4,139,822)	1,878,031
Income tax benefit (expense) related to items of other comprehensive (loss) income	12,416	(162,547)	858,377	(638,531)
Other comprehensive (loss) income, net of tax	(98,059)	315,532	(3,281,445)	1,239,500
Comprehensive income	$ 3,835,671	$ 4,389,453	$ 691,648	$ 9,294,393
Earnings per common share:
Basic	$ 0.37	$ 0.38	$ 0.37	$ 0.78
Diluted	$ 0.36	$ 0.38	$ 0.37	$ 0.77
Weighted average common shares outstanding
Basic	10,681,329	10,626,242	10,672,084	10,307,689
Diluted	10,791,123	10,832,739	10,780,590	10,500,272
Dividends declared and paid per common share	$ 0.1	$ 0.08	$ 0.3	$ 0.2225

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($)	Preferred Stock	Common Stock	Capital in Excess of Par	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Treasury Stock	Total
Beginning Balance, Shares at Dec. 31, 2017	0	11,618,646				986,809
Beginning Balance, Amount at Dec. 31, 2017	$ 0	$ 116,186	$ 68,380,390	$ 1,100,647	$ 27,152,822	$ (2,172,299)	$ 94,577,746
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018				(414,242)	414,242
Beginning Balance, Shares, as adjusted	0	11,618,646				986,809
Beginning Balance, Amount, as adjusted	$ 0	$ 116,186	68,380,390	686,405	27,567,064	$ (2,172,299)	94,577,746
Stock-based compensation			481,812				481,812
Shares deducted from exercise of stock options for payment of withholding taxes, Shares		(33,891)
Shares deducted from exercise of stock options for payment of withholding taxes, Amount		$ (337)	(674,314)				(674,651)
Vesting of restricted stock awards, Shares		15,752
Vesting of restricted stock awards, Amount		$ 155	(155)
Shares deducted from restricted stock awards for payment of withholding taxes, Shares		(2,213)
Shares deducted from restricted stock awards for payment of withholding taxes, Amount		$ (24)	(39,847)				(39,871)
Exercise of stock options, Shares		130,872
Exercise of stock options, Amount		$ 1,311	72,828				74,139
Acquisition of treasury stock, Shares						40,630
Acquisition of treasury stock, Amount						$ (540,253)	(540,253)
Dividends					(3,204,813)		(3,204,813)
Net income					3,973,093		3,973,093
Change in unrealized losses on available-for-sale securities, net of tax				(3,281,445)			(3,281,445)
Ending Balance, Shares at Sep. 30, 2018	0	11,729,166				1,027,439
Ending Balance, Amount at Sep. 30, 2018	$ 0	$ 117,291	$ 68,220,714	$ (2,595,040)	$ 28,335,344	$ (2,712,552)	$ 91,365,757

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 3,973,093	$ 8,054,893
Adjustments to reconcile net income to net cash flows provided by operating activities:
Net losses (gains) on investments	277,835	(96,915)
Depreciation and amortization	1,273,975	1,023,390
Amortization of bond premium, net	284,204	405,832
Amortization of discount and issuance costs on long-term debt	124,241	0
Stock-based compensation	481,812	198,046
Deferred income tax expense	136,032	322,608
(Increase) decrease in operating assets:
Premiums receivable, net	(266,849)	(1,745,402)
Reinsurance receivables, net	3,500,669	7,226,493
Deferred policy acquisition costs	(2,276,012)	(2,142,195)
Other assets	(1,824,401)	(219,189)
Increase (decrease) in operating liabilities:
Loss and loss adjustment expense reserves	5,143,335	554,078
Unearned premiums	9,926,741	8,448,528
Advance premiums	1,411,027	665,029
Reinsurance balances payable	(840,122)	(333,669)
Deferred ceding commission revenue	(1,748,944)	(2,898,092)
Accounts payable, accrued expenses and other liabilities	(1,379,309)	1,426,188
Net cash flows provided by operating activities	18,197,327	20,889,623
Cash flows from investing activities:
Purchase - fixed-maturity securities available-for-sale	(43,957,529)	(38,612,403)
Purchase - equity securities	(10,357,210)	(5,298,781)
Sale and redemption - fixed-maturity securities held-to-maturity	624,963	200,000
Sale or maturity - fixed-maturity securities available-for-sale	17,740,260	8,385,874
Sale - equity securities available-for-sale	5,694,121	2,571,122
? Acquisition of property and equipment	(2,044,440)	(1,944,342)
Net cash flows used in investing activities	(32,299,835)	(34,698,530)
Cash flows from financing activities:
Net proceeds from issuance of common stock	0	30,136,699
Proceeds from exercise of stock options	74,139	66,517
Withholding taxes paid on net exercise of stock options	(674,651)	0
Withholding taxes paid on vested retricted stock awards	(39,871)	(17,693)
Purchase of treasury stock	(540,253)	(176,837)
Dividends paid	(3,204,813)	(2,363,993)
Net cash flows (used in) provided by financing activities	(4,385,449)	27,644,693
(Decrease) increase in cash and cash equivalents	(18,487,957)	13,835,786
Cash and cash equivalents, beginning of period	48,381,633	12,044,520
Cash and cash equivalents, end of period	29,893,676	25,880,306
Supplemental disclosures of cash flow information:
Cash paid for income taxes	1,250,000	3,936,000
Cash paid for interest	$ 875,417	$ 0

1. Nature of Business and Basis

1. Nature of Business and Basis of Presentation	9 Months Ended
1. Nature of Business and Basis of Presentation	Sep. 30, 2018
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, Rhode Island, Massachusetts, Pennsylvania, Connecticut, Maine, New Hampshire and Texas. KICO is currently offering its property and casualty insurance products in New York, New Jersey, Rhode Island, Massachusetts and Pennsylvania. Although New Jersey, Rhode Island and Massachusetts are now growing expansion markets for the Company, 92.6% and 94.5% of KICO’s direct written premiums for the three months and nine months ended September 30, 2018, respectively, came from the New York policies. The accompanying unaudited condensed consolidated financial statements 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 10 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, 2017 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 15, 2018. The accompanying condensed consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with standards of the Public Company Accounting Oversight Board (United States) but, in the opinion of management, such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the Company’s financial position and results of operations. The results of operations for the three months and nine months ended September 30, 2018 may not be indicative of the results that may be expected for the year ending December 31, 2018.

2. Accounting Policies

2. Accounting Policies	9 Months Ended
2. Accounting Policies	Sep. 30, 2018
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. Actual results could differ from these estimates and assumptions, which include the reserves for losses and loss adjustment expenses and are subject to estimation errors due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of many years. In addition, estimates and assumptions associated with receivables under reinsurance contracts related to contingent ceding commission revenue require judgments by management. On an on-going basis, management reevaluates its assumptions and the methods for calculating these 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 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 – Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). 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, was effective for the Company for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted ASU 2014-09 effective January 1, 2018. The standard excludes from its scope the accounting for insurance contracts, financial instruments, and certain other agreements that are governed under other GAAP guidance. Accordingly, the adoption of ASU 2014-09, as amended, did not have a material impact on the Company’s condensed consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). Effective January 1, 2018, the Company adopted the provisions of ASU 2016-01. The updated guidance requires equity investments, including limited partnership interests, except those accounted for under the equity method of accounting, that have a readily determinable fair value to be measured at fair value with any changes in fair value recognized in net income. Equity securities that do not have readily determinable fair values may be measured at estimated fair value or cost less impairment, if any, adjusted for subsequent observable price changes, with changes in the carrying value recognized in net income. A qualitative assessment for impairment is required for equity investments without readily determinable fair values. The updated guidance also eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet. The adoption of this guidance resulted in the recognition of approximately $414,000 of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that increased retained earnings as of January 1, 2018 and decreased accumulated other comprehensive income (“AOCI”) by the same amount. The Company elected to report changes in the fair value of equity investments in net gains (losses) on investments in the condensed consolidated statements of income and comprehensive income. At December 31, 2017, equity investments were classified as available-for-sale on the Company's consolidated balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments. Furthermore, for the three months and nine months ended September 30, 2018, net gain (loss) on investments of approximately $352,000 and ($278,000), respectively, in the condensed consolidated statements of income and comprehensive income included gains of approximately $409,000 and $99,000, respectively, from the fair value change of equity securities. In August 2016, FASB issued ASU 2016-15 – Statement of Cash Flows (Topic 320): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). 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. The effective date of ASU 2016-15 was for interim and annual reporting periods beginning after December 15, 2017. The Company adopted this ASU effective January 1, 2018, and it did not have a material impact on the Company’s condensed consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). In February 2018, the FASB issued ASU 2018-02 - Income Statement – Reporting Comprehensive Income (Topic 220) – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). The deferred income tax liability for unrealized gains on available-for-sale securities that were re-measured due to the reduction in corporate income tax rates under the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) resulted in a stranded tax effect within AOCI. This is due to the effect of the tax rate change being recorded through continuing operations as required under Accounting Standards Codification 740 (“ASC 740”). The revised ASU allows for the reclassification of the stranded tax effects as a result of the Act from AOCI to retained earnings and requires certain other disclosures. Effective December 31, 2017, the Company chose to early adopt the provisions of ASU 2018-02 and recorded a one-time reclassification of $182,912 from AOCI to retained earnings for the stranded tax effects resulting from the newly enacted corporate tax rate. The amount of the reclassification was the difference between the historical corporate tax rate and the newly enacted 21% corporate tax rate. Accounting Pronouncements In February 2016, FASB issued ASU 2016-02 – Leases (Topic 842) (“ASU 2016-02”). 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 does not expect the adoption of ASU 2016-02 to 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 (“ASU 2016-13”). 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. The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

3. Investments

3. Investments	9 Months Ended
3. Investments	Sep. 30, 2018
Notes to Financial Statements
3. Investments	Fixed-Maturity Securities The amortized cost, fair value, and unrealized gains and losses of investments in fixed-maturity securities classified as available-for-sale as of September 30, 2018 and December 31, 2017 are summarized as follows: September 30, 2018 Net Cost or Gross Gross Unrealized Losses Unrealized Amortized Unrealized Less than 12 More than 12 Fair Gains/ Categor Cost Gains Months Months Value (Losses Fixed-Maturity Securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 8,214,959 $ - $ (75,222 ) $ - $ 8,139,737 $ (75,222 ) Political subdivisions of States, Territories and Possessions 6,545,242 26,468 (63,596 ) (50,343 ) 6,457,771 (87,471 ) Corporate and other bonds Industrial and miscellaneous 106,538,272 87,788 (2,461,966 ) (399,360 ) 103,764,734 (2,773,538 ) Residential mortgage and other asset backed securities (1) 23,274,361 288,079 (99,954 ) (464,193 ) 22,998,293 (276,068 ) Total $ 144,572,834 $ 402,335 $ (2,700,738 ) $ (913,896 ) $ 141,360,535 $ (3,212,299 ) (1) In 2017, KICO placed certain residential mortgage backed securities as eligible collateral in a designated custodian account related to its membership in the Federal Home Loan Bank of New York ("FHLBNY") (See Note 7). The eligible collateral would be pledged to FHLBNY if KICO draws an advance from the FHBLNY credit line. As of September 30, 2018, the fair value of the eligible investments was approximately $5,790,000. KICO will retain all rights regarding all securities if pledged as collateral. As of September 30, 2018, there was no outstanding balance on the FHLBNY credit line. December 31, 2017 Net Cost or Gross Gross Unrealized Losses Unrealized Amortized Unrealized Less than 12 More than 12 Fair Gains/ Categor Cost Gains Months Months Value (Losses Fixed-Maturity Securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ - $ - $ - $ - $ - $ - Political subdivisions of States, Territories and Possessions 11,096,122 250,135 (30,814 ) - 11,315,443 219,321 Corporate and other bonds Industrial and miscellaneous 87,562,631 1,189,207 (269,857 ) (340,516 ) 88,141,465 578,834 Residential mortgage and other asset backed securities (1) 20,463,353 305,499 (48,482 ) (189,022 ) 20,531,348 67,995 Total $ 119,122,106 $ 1,744,841 $ (349,153 ) $ (529,538 ) $ 119,988,256 $ 866,150 (1) In 2017, KICO placed certain residential mortgage backed securities as eligible collateral in a designated custodian account related to its membership in the FHLBNY (see Note 7). The eligible collateral would be pledged to FHLBNY if KICO draws an advance from the FHBLNY credit line. As of December 31, 2017, the fair value of the eligible investments was approximately $6,703,000. KICO will retain all rights regarding all securities if pledged as collateral. As of December 31, 2017, there was no outstanding balance on the FHLBNY credit line. A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of September 30, 2018 and December 31, 2017 is shown below: September 30, 2018 December 31, 2017 Amortized Amortized Remaining Time to Maturit Cost Fair Value Cost Fair Value Less than one year $ 1,689,356 $ 1,683,350 $ 2,585,479 $ 2,595,938 One to five years 39,607,252 39,173,793 31,716,345 32,065,197 Five to ten years 77,027,918 74,706,819 62,702,945 63,129,543 More than 10 years 2,973,947 2,798,280 1,653,984 1,666,230 Residential mortgage and other asset backed securities 23,274,361 22,998,293 20,463,353 20,531,348 Total $ 144,572,834 $ 141,360,535 $ 119,122,106 $ 119,988,256 The actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without penalties. Equity Securities Effective January 1, 2018, the Company adopted ASU 2016-01, which resulted in changes in the fair value of equity securities held at September 30, 2018 being reported in net income instead of being reported in comprehensive income. See Note 2, Accounting Policies, for additional discussion. The cost, fair value, and gross gains and losses of investments in equity securities as of September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 Gross Gross Fair Categor Cost Gains Losses Value Equity Securities: Preferred stocks $ 6,865,381 $ 20,121 $ (188,302 ) $ 6,697,200 Common stocks and exchange traded mutual funds 11,628,928 1,131,212 (580,650 ) 12,179,490 Total $ 18,494,309 $ 1,151,333 $ (768,952 ) $ 18,876,690 December 31, 2017 Gross Gross Fair Categor Cost Gains Losses Value Equity Securities: Preferred stocks $ 7,081,099 $ 60,867 $ (141,025 ) $ 7,000,941 Common stocks and exchange traded mutual funds 6,680,742 841,250 (236,735 ) 7,285,257 Total $ 13,761,841 $ 902,117 $ (377,760 ) $ 14,286,198 Other Investments The cost, fair value, and gross gains of the Company’s other investments as of September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 December 31, 2017 Gross Fair Gross Fair Categor Cost Gains Value Cost Gains Value Other Investments: Hedge fund $ 2,000,000 $ 241,444 $ 2,241,444 $ - $ - $ - Total $ 2,000,000 $ 241,444 $ 2,241,444 $ - $ - $ - Held-to-Maturity Securities The amortized cost, fair value, and unrealized gains and losses of investments in held-to-maturity fixed-maturity securities as of September 30, 2018 and December 31, 2017 are summarized as follows: September 30, 2018 Cost or Gross Gross Unrealized Losses Net Amortized Unrealized Less than 12 More than 12 Fair Unrealized Categor Cost Gains Months Months Value Gains/(Losses) Held-to-Maturity Securities: U.S. Treasury securities $ 729,496 $ 147,543 $ (7,649 ) $ - $ 869,390 $ 139,894 Political subdivisions of States, Territories and Possessions 998,852 24,393 - - 1,023,245 24,393 Corporate and other bonds Industrial and miscellaneous 2,494,004 36,835 (5,100 ) (7,610 ) 2,518,129 24,125 Total $ 4,222,352 $ 208,771 $ (12,749 ) $ (7,610 ) $ 4,410,764 $ 188,412 December 31, 2017 Cost or Gross Gross Unrealized Losses Net Amortized Unrealized Less than 12 More than 12 Fair Unrealized Categor Cost Gains Months Months Value Gains/(Losses) Held-to-Maturity Securities: U.S. Treasury securities $ 729,466 $ 147,573 $ (1,729 ) $ - $ 875,310 $ 145,844 Political subdivisions of States, Territories and Possessions 998,984 50,366 - - 1,049,350 50,366 Corporate and other bonds Industrial and miscellaneous 3,141,358 90,358 - (6,300 ) 3,225,416 84,058 Total $ 4,869,808 $ 288,297 $ (1,729 ) $ (6,300 ) $ 5,150,076 $ 280,268 Held-to-maturity U.S. Treasury securities are held in trust pursuant to various states’ minimum funds requirements. A summary of the amortized cost and fair value of the Company’s investments in held-to-maturity securities by contractual maturity as of September 30, 2018 and December 31, 2017 is shown below: September 30, 2018 December 31, 2017 Amortized Amortized Remaining Time to Maturit Cost Fair Value Cost Fair Value Less than one year $ - $ - $ - $ - One to five years 2,996,308 3,030,709 2,546,459 2,601,898 Five to ten years 619,548 626,016 1,716,884 1,794,139 More than 10 years 606,496 754,039 606,465 754,039 Total $ 4,222,352 $ 4,410,764 $ 4,869,808 $ 5,150,076 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 Nine months ended September 30, September 30, 2018 2017 2018 2017 Income: Fixed-maturity securities $ 1,386,931 $ 926,170 $ 3,898,730 $ 2,607,166 Equity securities 214,498 143,826 609,086 408,812 Cash and cash equivalents 44,024 5,772 159,865 14,446 Total 1,645,453 1,075,768 4,667,681 3,030,424 Expenses: Investment expenses 43,082 42,461 124,455 113,313 Net investment income $ 1,602,371 $ 1,033,307 $ 4,543,226 $ 2,917,111 Proceeds from the sale and redemption of fixed-maturity securities held-to-maturity were $624,963 and $200,000 for the nine months ended September 30, 2018 and 2017, respectively. Proceeds from the sale or maturity of fixed-maturity securities available-for-sale were $17,740,260 and $8,385,874 for the nine months ended September 30, 2018 and 2017, respectively. Proceeds from the sale of equity securities were $5,694,121 and $2,571,122 for the nine months ended September 30, 2018 and 2017, respectively. The Company’s net gains (losses) on investments are summarized as follows: Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Realized (Losses) Gains Fixed-maturity securities: Gross realized gains $ 4,750 $ 5,542 $ 116,961 $ 67,260 Gross realized losses (1) (77,192 ) (56,783 ) (560,418 ) (167,340 ) (72,442 ) (51,241 ) (443,457 ) (100,080 ) Equity securities: Gross realized gains 121,609 229,792 436,859 386,057 Gross realized losses (106,321 ) (107,553 ) (370,705 ) (139,062 ) 15,288 122,239 66,154 246,995 Net realized (losses) gains (57,154 ) 70,998 (377,303 ) 146,915 Other-than-temporary impairment losses: Fixed-maturity securities - (50,000 ) - (50,000 ) Unrealized Gains (Losses) Equity securities: Gross gains 288,435 - - - Gross losses - - (141,976 ) - 288,435 - (141,976 ) - Other investments: Gross gains 120,744 - 241,444 - Gross losses - - - - 120,744 - 241,444 - Net unrealized gains 409,179 - 99,468 - Net gains (losses) on investments $ 352,025 $ 20,998 $ (277,835 ) $ 96,915 (1) Gross realized losses for the nine months ended September 30, 2018 and 2017 include a $23,912 and a $747 loss, respectively, 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 reviewed its equity securities portfolios prior to January 1, 2018) 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 comprehensive (loss) 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 comprehensive (loss) 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 September 30, 2018 and December 31, 2017, there were 166 and 62 fixed-maturity securities, respectively, and 13 equity securities at December 31, 2017 that accounted for the gross unrealized loss, respectively. In December 2017, the Company disposed of one of its held-to-maturity debt securities that was previously recorded in OTTI, a bond issued by the Commonwealth of Puerto Rico. In July 2016, Puerto Rico defaulted on its interest payment to bondholders. Due to the credit deterioration of Puerto Rico, the Company recorded its first 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. In September 2017, Hurricane Maria significantly affected Puerto Rico. The impact of this event further contributed to the credit deterioration of Puerto Rico and, as a result, the Company recorded an additional credit loss component of OTTI on this investment for the amount of $50,000 during the quarter ended September 30, 2017. The total of the two OTTI write-downs of this investment through December 31, 2017 was $119,911. The Company determined that none of the other unrealized losses were deemed to be OTTI for its portfolio of investments for the nine months ended September 30, 2018 and 2017. 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 available-for-sale securities with unrealized losses representing declines that were considered temporary at September 30, 2018 as follows: September 30, 2018 Less than 12 months 12 months or more Total No. of No. of Aggregate Fair Unrealized Positions Fair Unrealized Positions Fair Unrealized Categor Value Losses Held Value Losses Held Value Losses Fixed-Maturity Securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 8,139,737 $ (75,222 ) 7 $ - $ - - $ 8,139,737 $ (75,222 ) Political subdivisions of States, Territories and Possessions 3,396,474 (63,596 ) 7 1,122,656 (50,343 ) 2 4,519,130 (113,939 ) Corporate and other bonds industrial and miscellaneous 86,846,478 (2,461,966 ) 108 6,950,836 (399,360 ) 14 93,797,314 (2,861,326 ) Residential mortgage and other asset backed securities 8,593,080 (99,954 ) 10 11,453,668 (464,193 ) 18 20,046,748 (564,147 ) Total fixed-maturity securities $ 106,975,769 $ (2,700,738 ) 132 $ 19,527,160 $ (913,896 ) 34 $ 126,502,929 $ (3,614,634 ) The Company held available-for-sale securities with unrealized losses representing declines that were considered temporary at December 31, 2017 as follows: December 31, 2017 Less than 12 months 12 months or more Total No. of No. of Aggregate Fair Unrealized Positions Fair Unrealized Positions Fair Unrealized Categor Value Losses Held Value Losses Held Value Losses Fixed-Maturity Securities: Political subdivisions of States, Territories and Possessions $ 1,549,839 $ (30,814 ) 4 $ - $ - - $ 1,549,839 $ (30,814 ) Corporate and other bonds industrial and miscellaneous 15,036,462 (269,857 ) 20 9,113,924 (340,516 ) 17 24,150,386 (610,373 ) Residential mortgage and other asset backed securities 6,956,371 (48,482 ) 6 7,867,572 (189,022 ) 15 14,823,943 (237,504 ) Total fixed-maturity securities $ 23,542,672 $ (349,153 ) 30 $ 16,981,496 $ (529,538 ) 32 $ 40,524,168 $ (878,691 ) Equity Securities: Preferred stocks $ 1,605,217 $ (20,313 ) 5 $ 1,776,675 $ (120,712 ) 3 $ 3,381,892 $ (141,025 ) Common stocks and exchange traded mutual funds 1,446,375 (222,205 ) 4 124,900 (14,530 ) 1 1,571,275 (236,735 ) Total equity securities $ 3,051,592 $ (242,518 ) 9 $ 1,901,575 $ (135,242 ) 4 $ 4,953,167 $ (377,760 ) Total $ 26,594,264 $ (591,671 ) 39 $ 18,883,071 $ (664,780 ) 36 $ 45,477,335 $ (1,256,451 )

4. Fair Value Measurements

4. Fair Value Measurements	9 Months Ended
4. Fair Value Measurements	Sep. 30, 2018
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, as characterized by current market conditions, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause a security to be reclassified between levels. The following table presents information about the Company’s investments that are measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017 indicating the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: September 30, 2018 Level 1 Level 2 Level 3 Total Fixed-maturity securities available-for-sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 8,139,737 $ - $ - $ 8,139,737 Political subdivisions of States, Territories and Possessions - 6,457,771 - 6,457,771 Corporate and other bonds industrial and miscellaneous 100,090,703 3,674,031 - 103,764,734 Residential mortgage backed securities - 22,998,293 - 22,998,293 Total fixed maturities 108,230,440 33,130,095 - 141,360,535 Equity securities 18,876,690 - - 18,876,690 Total investments $ 127,107,130 $ 33,130,095 $ - $ 160,237,225 December 31, 2017 Level 1 Level 2 Level 3 Total Fixed-maturity securities available-for-sale Political subdivisions of States, Territories and Possessions $ - $ 11,315,443 $ - $ 11,315,443 Corporate and other bonds industrial and miscellaneous 83,597,300 4,544,165 - 88,141,465 Residential mortgage backed securities - 20,531,348 - 20,531,348 Total fixed maturities 83,597,300 36,390,956 - 119,988,256 Equity securities 14,286,198 - - 14,286,198 Total investments $ 97,883,498 $ 36,390,956 $ - $ 134,274,454 Pursuant to ASC 820 “Fair Value Measurement,” an entity is permitted, as a practical expedient, to estimate the fair value of an investment within the scope of ASC 820 using the net asset value (“NAV”) per share (or its equivalent) of the investment. The following table sets forth the Company’s investment in a hedge fund investment measured at NAV per share (or its equivalent) as of September 30, 2018 and December 31, 2017. The Company measures this investment at fair value on a recurring basis. Fair value using NAV per share is as follows as of the dates indicated: Categor September 30, 2018 December 31, 2017 Other Investments: Hedge fund $ 2,241,444 $ - Total $ 2,241,444 $ - The investment is generally redeemable with at least 45 days prior written notice. The hedge fund investment is accounted for as a limited partnership by the Company. Revenue is earned based upon the Company’s allocated share of the partnership's changes in unrealized gains and losses to its partners. Such amounts have been recorded in the condensed consolidated statements of income and comprehensive income within net gains (losses) on investments.

5. Fair Value of Financial Inst

5. Fair Value of Financial Instruments and Real Estate	9 Months Ended
5. Fair Value of Financial Instruments and Real Estate	Sep. 30, 2018
Notes to Financial Statements
5. Fair Value of Financial Instruments and Real Estate	The Company uses the following methods and assumptions in estimating the fair value of financial instruments and real estate: Equity securities, available-for-sale fixed income securities, and other investments: Cash and cash equivalents: Premiums receivable, reinsurance receivables, and investment subscription receivable: Real estate: Reinsurance balances payable: Long-term debt: The estimated fair values of the Company’s financial instruments and real estate as of September 30, 2018 and December 31, 2017 are as follows: September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Fixed-maturity securities-held-to maturity $ 4,222,352 $ 4,410,764 $ 4,869,808 $ 5,150,076 Cash and cash equivalents $ 29,893,676 $ 29,893,676 $ 48,381,633 $ 48,381,633 Investment subscription receivable $ - $ - $ 2,000,000 $ 2,000,000 Premiums receivable, net $ 13,484,547 $ 13,484,547 $ 13,217,698 $ 13,217,698 Reinsurance receivables, net $ 25,018,461 $ 25,018,461 $ 28,519,130 $ 28,519,130 Real estate, net of accumulated depreciation $ 2,199,140 $ 2,705,000 $ 2,261,829 $ 2,705,000 Reinsurance balances payable $ 1,723,844 $ 1,723,844 $ 2,563,966 $ 2,563,966 Long-term debt, net $ 29,251,206 $ 29,251,206 $ 29,126,965 $ 29,126,965

6. Property and Casualty Insura

6. Property and Casualty Insurance Activity	9 Months Ended
6. Property and Casualty Insurance Activity	Sep. 30, 2018
Notes to Financial Statements
6. Property and Casualty Insurance Activity	Premiums Earned Premiums written, ceded and earned are as follows: Direct Assumed Ceded Net Nine months ended September 30, 2018 Premiums written $ 107,175,413 $ 842 $ (19,409,423 ) $ 87,766,832 Change in unearned premiums (9,930,503 ) 3,762 (3,363,953 ) (13,290,694 ) Premiums earned $ 97,244,910 $ 4,604 $ (22,773,376 ) $ 74,476,138 Nine months ended September 30, 2017 Premiums written $ 89,423,758 $ 18,203 $ (20,719,037 ) $ 68,722,924 Change in unearned premiums (8,456,690 ) 8,162 (5,436,513 ) $ (13,885,041 ) Premiums earned $ 80,967,068 $ 26,365 $ (26,155,550 ) $ 54,837,883 Three months ended September 30, 2018 Premiums written $ 38,785,453 $ 18 $ (2,683,699 ) $ 36,101,772 Change in unearned premiums (4,435,174 ) 698 (4,133,389 ) (8,567,865 ) Premiums earned $ 34,350,279 $ 716 $ (6,817,088 ) $ 27,533,907 Three months ended September 30, 2017 Premiums written $ 32,839,891 $ 11,910 $ (590,482 ) $ 32,261,319 Change in unearned premiums (4,407,894 ) (165 ) (6,338,852 ) (10,746,911 ) Premiums earned $ 28,431,997 $ 11,745 $ (6,929,334 ) $ 21,514,408 Premium receipts in advance of the policy effective date are recorded as advance premiums. The balance of advance premiums as of September 30, 2018 and December 31, 2017 was $2,888,720 and $1,477,693, 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: Nine months ended September 30, 2018 2017 Balance at beginning of period $ 48,799,622 $ 41,736,719 Less reinsurance recoverables (16,748,908 ) (15,776,880 ) Net balance, beginning of period 32,050,714 25,959,839 Incurred related to: Current year 41,611,658 23,071,466 Prior years 127,465 (250,225 ) Total incurred 41,739,123 22,821,241 Paid related to: Current year 23,404,909 12,955,928 Prior years 12,160,419 8,176,715 Total paid 35,565,328 21,132,643 Net balance at end of period 38,224,509 27,648,437 Add reinsurance recoverables 15,718,448 14,642,360 Balance at end of period $ 53,942,957 $ 42,290,797 Incurred losses and LAE are net of reinsurance recoveries under reinsurance contracts of $11,668,527 and $8,503,237 for the nine months ended September 30, 2018 and 2017, 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 nine months ended September 30, 2018 and 2017 was $127,465 unfavorable and $(250,225), 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 period’s results. Reserves are closely monitored and are recomputed periodically using the most recent information on reported claims and a variety of statistical techniques. On at least a quarterly basis, the Company reviews by line of business existing reserves, new claims, changes to existing case reserves and paid losses with respect to the current and prior periods. Several methods are used, varying by line of business and accident year, in order to select the estimated period-end loss reserves. These methods include the following: Paid Loss Development Incurred Loss Development Paid Bornhuetter-Ferguson (“BF”) Incurred Bornhuetter-Ferguson (“BF”) Incremental Claim-Based Methods 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 claim 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 September 30, 2015 and prior is limited, although there remains the possibility of adverse development on reported claims (“case development” IBNR). In certain rare circumstances states have retroactively revised a statute of limitations. The Company is not aware of any such effort that would have a material impact on the Company’s results. The following is information about incurred and paid claims development as of September 30, 2018, net of reinsurance, as well as the cumulative reported claims by accident year and total IBNR reserves as of September 30, 2018 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, 2009 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 Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance September 30, 2018 For the Years Ended December 31, Nine Months Ended September 30, IBNR Cumulative Number of Reported Claims by Accident Year Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited 2009 - 2015) (Unaudited) 2009 $ 4,403 $ 4,254 $ 4,287 $ 4,384 $ 4,511 $ 4,609 $ 4,616 $ 4,667 $ 4,690 $ 4,670 $ 0 1,136 2010 5,598 5,707 6,429 6,623 6,912 6,853 6,838 6,840 6,785 (1) 1,616 2011 7,603 7,678 8,618 9,440 9,198 9,066 9,144 9,147 2 1,913 2012 9,539 9,344 10,278 10,382 10,582 10,790 10,770 19 4,702 (1) 2013 10,728 9,745 9,424 9,621 10,061 10,000 132 1,560 2014 14,193 14,260 14,218 14,564 14,954 309 2,129 2015 22,340 21,994 22,148 22,186 642 2,546 2016 26,062 24,941 24,256 1,646 2,860 2017 31,605 32,146 3,376 3,322 2018 39,653 6,386 2,953 Total $ 174,567 (1) Reported claims for accident year 2012 includes 3,406 claims from Superstorm Sandy All Lines of Business (in thousands) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Nine Months Ended September 30, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited 2009 - 2015) (Unaudited) 2009 $ 2,298 $ 3,068 $ 3,607 $ 3,920 $ 4,134 $ 4,362 $ 4,424 $ 4,468 $ 4,487 $ 4,659 2010 2,566 3,947 4,972 5,602 6,323 6,576 6,720 6,772 6,778 2011 3,740 5,117 6,228 7,170 8,139 8,540 8,702 8,717 2012 3,950 5,770 7,127 8,196 9,187 10,236 10,302 2013 3,405 5,303 6,633 7,591 8,407 8,834 2014 5,710 9,429 10,738 11,770 13,508 2015 12,295 16,181 18,266 19,473 2016 15,364 19,001 20,098 2017 16,704 23,499 2018 22,223 Total $ 138,091 Net liability for unpaid loss and allocated loss adjustment expenses for the accident years presented $36,476 All outstanding liabilities before 2009, net of reinsurance 199 Liabilities for loss and allocated loss adjustment expenses, net of reinsurance $ 36,675 The reconciliation of the net incurred and paid loss development tables to the loss and LAE reserves in the consolidated balance sheet is as follows: Reconciliation of the Disclosure of Incurred and Paid Loss Development to the Liability for Loss and LAE Reserves As of (in thousands) September 30, 2018 Liabilities for allocated loss and loss adjustment expenses, net of reinsurance $ 36,675 Total reinsurance recoverable on unpaid losses 15,718 Unallocated loss adjustment expenses 1,550 Total gross liability for loss and LAE reserves $ 53,943 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 nine months ended September 30, 2018 for its personal lines business, which primarily consists of homeowners’ policies, were covered under the July 1, 2017/June 30, 2018 treaty year (“2017/2019 Treaty”) (two year treaty as described below). The Company’s quota share reinsurance treaties in effect for the nine months ended September 30, 2017 were covered under the 2017/2019 Treaty and July 1, 2016/June 30, 2017 treaty year (“2016/2017 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 53%, from 52% in the 2016/2017 Treaty. The 2017/2019 Treaty covers a two year period from July 1, 2017 through June 30, 2019. In August 2018, the Company reduced its quota share ceding rate under the 2017/2019 Treaty to 10%, from 20%, effective July 1, 2018. The Company entered into new excess of loss and catastrophe reinsurance treaties effective July 1, 2018. Material terms for reinsurance treaties in effect for the treaty years shown below are as follows: Treaty Year July 1, 2018 July 1, 2017 July 1, 2016 to to to Line of Business June 30, 2019 June 30, 2018 June 30, 2017 Personal Lines Homeowners, dwelling fire and canine legal liability Quota share treaty: Percent ceded 10 % 20 % 40 % Risk retained $ 900,000 $ 800,000 $ 500,000 Losses per occurrence subject to quota share reinsurance coverage $ 1,000,000 $ 1,000,000 $ 833,333 Excess of loss coverage and facultative facility above quota share coverage (1) $ 9,000,000 $ 9,000,000 $ 3,666,667 in excess of in excess of in excess of $ 1,000,000 $ 1,000,000 $ 833,333 Total reinsurance coverage per occurrence $ 9,100,000 $ 9,200,000 $ 4,000,000 Losses per occurrence subject to reinsurance coverage $ 10,000,000 $ 10,000,000 $ 4,500,000 Expiration date June 30, 2019 June 30, 2019 June 30, 2017 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 $ 4,900,000 Losses per occurrence subject to quota share reinsurance coverage $ 5,000,000 $ 5,000,000 $ 5,000,000 Expiration date June 30, 2019 June 30, 2018 June 30, 2017 Commercial Lines General liability commercial policies Quota share treaty None None None Risk retained $ 750,000 $ 750,000 $ 500,000 Excess of loss coverage above risk retained $ 3,750,000 $ 3,750,000 $ 4,000,000 in excess of in excess of in excess of $ 750,000 $ 750,000 $ 500,000 Total reinsurance coverage per occurrence $ 3,750,000 $ 3,750,000 $ 4,000,000 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 % 90 % Percent ceded - excess of $1,000,000 of coverage 100 % 100 % 100 % Risk retained $ 100,000 $ 100,000 $ 100,000 Total reinsurance coverage per occurrence $ 4,900,000 $ 4,900,000 $ 4,900,000 Losses per occurrence subject to quota share reinsurance coverage $ 5,000,000 $ 5,000,000 $ 5,000,000 Expiration date June 30, 2019 June 30, 2018 June 30, 2017 Catastrophe Reinsurance Initial loss subject to personal lines quota share treaty $ 5,000,000 $ 5,000,000 $ 5,000,000 Risk retained per catastrophe occurrence (2) $ 4,500,000 $ 4,000,000 $ 3,000,000 Catastrophe loss coverage in excess of quota share coverage (3) (4) $ 445,000,000 $ 315,000,000 $ 247,000,000 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) Effective July 1, 2018, the top $50,000,000 layer of catastrophe reinsurance coverage has a two year term expiring on June 30, 2020. (5) 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. Effective July 1, 2018, reinstatement premium protection for $210,000,000 of catastrophe coverage in excess of $5,000,000. The single maximum risks per occurrence to which the Company is subject under the treaties effective July 1, 2018 are as follows: July 1, 2018 - June 30, 2019 Treaty Extent of Loss Risk Retained Personal Lines (1) Initial $1,000,000 $900,000 $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 $4,500,000 $5,000,000 - $450,000,000 None Over $450,000,000 100% (1) Treaty for July 1, 2018 – June 30, 2019 is a two year treaty with expiration date of June 30, 2019. (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 single maximum risks per occurrence to which the Company is subject under the treaty years shown below are as follows: July 1, 2017 - June 30, 2018 July 1, 2016 - June 30, 2017 Treaty Range of Loss Risk Retained Range of Loss Risk Retained Personal Lines (1) Initial $1,000,000 $800,000 Initial $833,333 $500,000 $1,000,000 - $10,000,000 None(2) $833,333 - $4,500,000 None(3) Over $10,000,000 100% 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 - $5,000,000 None Over $5,000,000 100% Over $5,000,000 100% Commercial Lines Initial $750,000 $750,000 Initial $500,000 $500,000 $750,000 - $4,500,000 None(3) $500,000 - $4,500,000 None(3) Over $4,500,000 100% Over $4,500,000 100% Commercial Umbrella Initial $1,000,000 $100,000 Initial $1,000,000 $100,000 $1,000,000 - $5,000,000 None $1,000,000 - $5,000,000 None Over $5,000,000 100% Over $5,000,000 100% Catastrophe (4) Initial $5,000,000 $4,000,000 Initial $5,000,000 $3,000,000 $5,000,000 - $320,000,000 None $5,000,000 - $252,000,000 None Over $320,000,000 100% Over $252,000,000 100% (1) Treaty for July 1, 2017 – June 30, 2018 is a two year treaty with expiration date of June 30, 2019. (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 nine months ended September 30, 2018 are attributable to contracts for the 2017/2019 Treaty. The Company’s estimated ultimate treaty year Loss Ratios for treaties in effect for the three months and nine months ended September 30, 2017 are attributable to contracts for the 2017/2019 Treaty and 2016/2017 Treaty. Treaty in effect for the three months and nine months ended September 30, 2018 Under the 2017/2019 Treaty, the Company receives an upfront fixed provisional rate that is subject to a sliding scale contingent adjustment based upon Loss Ratio. Under this arrangement, the Company earns and earned provisional ceding commissions that are subject to later adjustment dependent on changes to the estimated Loss Ratio for the 2017/2019 Treaty. The Company’s Loss Ratios for the period July 1, 2018 through September 30, 2018 attributable to the 2017/2019 Treaty were consistent with the contractual Loss Ratio at which provisional ceding commissions were earned, and therefore no contingent commission adjustment was recorded for the three months ended September 30, 2018. The Company’s Loss Ratios for the period July 1, 2017 through June 30, 2018 attributable to the 2017/2019 Treaty were higher than the contractual Loss Ratio at which provisional ceding commissions were earned. Accordingly, for the six months ended June 30, 2018, the Company incurred negative contingent ceding commissions as a result of the estimated Loss Ratio for the 2017/2019 Treaty, which reduced contingent ceding commissions earned. Treaty in effect for the three months and nine months ended September 30, 2017 Under the 2017/2019 and 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, 2017 through September 30, 2017 (attributable to the 2017/2019 Treaty), and from 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 adjustments were recorded for the three months and nine months ended September 30, 2017 with respect to these treaties. In addition to the treaties that were in effect for the three months and nine months ended September 30, 2018 and 2017, 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 Nine months ended September 30, September 30, 2018 2017 2018 2017 Provisional ceding commissions earned $ 1,255,034 $ 1,921,457 $ 5,468,314 $ 8,689,803 Contingent ceding commissions earned (210,505 ) (203,847 ) (1,037,459 ) (481,803 ) $ 1,044,529 $ 1,717,610 $ 4,430,855 $ 8,208,000 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. As of September 30, 2018 and December 31, 2017, net contingent ceding commissions payable to reinsurers under all treaties was approximately $1,205,000 and $1,850,000, respectively, which is recorded in reinsurance balances payable on the accompanying condensed consolidated balance sheets.

7. Debt

7. Debt	9 Months Ended
7. Debt	Sep. 30, 2018
Debt
7. Debt	Short-term Debt In July 2017, KICO became a member of, and invested in, the Federal Home Loan Bank of New York (“FHLBNY”). The aggregate investment in dividend bearing common stock was $18,400 as of September 30, 2018. FHLBNY members have access to a variety of flexible, low cost funding through FHLBNY’s credit products, enabling members to customize advances. Advances are to be fully collateralized; eligible collateral to pledge to FHLBNY includes residential and commercial mortgage backed securities, along with U.S. Treasury and agency securities. See Note 3 – Investments for eligible collateral held in a designated custodian account available for future advances. Advances are limited to 5% of KICO’s net admitted assets as of December 31 of the previous year and are due and payable within one year of borrowing. The maximum allowable advance as of September 30, 2018 was approximately $9,849,000 based on KICO’s net admitted assets as of December 31, 2017. Advances are limited to the amount of available collateral, which was approximately $5,790,000 as of September 30, 2018. There were no borrowings under this facility during the period ended September 30, 2018. Long-term Debt On December 19, 2017, the Company issued $30 million of its 5.50% Senior Unsecured Notes due December 30, 2022 (the “Notes”) in an underwritten public offering. Interest is payable semi-annually in arrears on June 30 and December 30 of each year, beginning on June 30, 2018 at the rate of 5.50% per year from December 19, 2017. The net proceeds of the issuance were $29,121,630, net of discount of $163,200 and transaction costs of $715,170, for an effective yield of 5.67%. The balance of long-term debt as of September 30, 2018 and December 31, 2017 is as follows: September 30, December 31, 2018 2017 5.50% Senior Unsecured Notes $ 30,000,000 $ 30,000,000 Discount (137,877 ) (162,209 ) Issuance costs (610,917 ) (710,826 ) Long-term debt, net $ 29,251,206 $ 29,126,965 The Notes are unsecured obligations of the Company and are not the obligations of or guaranteed by any of the Company's subsidiaries. The Notes rank senior in right of payment to any of the Company's existing and future indebtedness that is by its terms expressly subordinated or junior in right of payment to the Notes. The Notes rank equally in right of payment to all of the Company's existing and future senior indebtedness, but will be effectively subordinated to any secured indebtedness to the extent of the value of the collateral securing such secured indebtedness. In addition, the Notes will be structurally subordinated to the indebtedness and other obligations of the Company's subsidiaries. The Company may redeem the Notes, at any time in whole or from time to time in part, at the redemption price equal to the greater of: (i) 100% of the principal amount of the Notes to be redeemed; and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed that would be due if the Notes matured on the applicable redemption date (exclusive of interest accrued to the applicable redemption date) discounted to the redemption date on a semi-annual basis at the Treasury Rate, plus 50 basis points. On December 20, 2017, the Company used $25,000,000 of the net proceeds from the offering to contribute capital to KICO, to support additional growth. The remainder of the net proceeds will be used for general corporate purposes. A registration statement relating to the debt issued in the offering of the notes was filed with the SEC and became effective on November 28, 2017.

8. Stockholders' Equity

8. Stockholders' Equity	9 Months Ended
8. Stockholders' Equity	Sep. 30, 2018
Notes to Financial Statements
8. 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 are being 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 and Paid Dividends declared and paid on common stock were $3,204,813 and $2,363,993 for the nine months ended September 30, 2018 and 2017, respectively. The Company’s Board of Directors approved a quarterly dividend on November 7, 2018 of $.10 per share payable in cash on December 14, 2018 to stockholders of record as of November 30, 2018 (see Note 13). Stock Options Pursuant to the Company’s 2005 Equity Participation Plan (the “2005 Plan”), which provides for the issuance of incentive stock options, non-statutory stock options and restricted stock, a maximum of 700,000 shares of the Company’s common stock are permitted to be issued pursuant to options granted and restricted stock issued. 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 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 September 30, 2018 and 2017 include stock-based compensation expense related to stock options totaling approximately $1,000 and $5,000 respectively. The results of operations for the nine months ended September 30, 2018 and 2017 include stock-based compensation expense related to stock options totaling approximately $5,000 and $35,000, respectively. Stock-based compensation expense related to stock options is net of estimated forfeitures of 17% for the three months and nine months ended September 30, 2018 and 2017. Such amounts have been recorded in the condensed consolidated statements of income and comprehensive income within other operating expenses. Stock-based compensation expense 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 nine months ended September 30, 2018 and 2017. 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 nine months ended September 30, 2018 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, 2018 341,150 $ 6.69 1.67 $ 4,131,028 Granted - $ - - $ - Exercised (175,250 ) $ 6.32 - $ 2,364,143 Forfeited - $ - - $ - Outstanding at September 30, 2018 165,900 $ 7.09 1.22 $ 1,976,245 Vested and Exercisable at September 30, 2018 155,900 $ 7.01 1.14 $ 1,869,508 The aggregate intrinsic value of options outstanding and options exercisable at September 30, 2018 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 $19.00 closing price of the Company’s common stock on September 30, 2018. The total intrinsic value of options exercised during the nine months ended September 30, 2018 was $2,364,143, determined as of the date of exercise. 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”), or by exchanging a number of shares owned for a period of greater than one year having a fair market value equal to the exercise price of the option being exercised (“Share Exchange”). The Company received cash proceeds of $74,063 from the exercise of options for the purchase of 12,750 shares of common stock during the nine months ended September 30, 2018. The Company received 7,855 shares from the exercise of options under a Share Exchange for the purchase of 30,000 shares of common stock during the nine months ended September 30, 2018. The remaining 132,500 options exercised during the nine months ended September 30, 2018 were Net Exercises, resulting in the issuance of 54,231 shares of common stock. The Company received cash proceeds of $66,517 from the exercise of options for the purchase of 11,750 shares of common stock during the nine months ended September 30, 2017. The remaining 2,750 options exercised during the nine months ended September 30, 2017 were Net Exercises, resulting in the issuance of 1,828 shares of common stock. As of September 30, 2018, the fair value of unamortized compensation cost related to unvested stock option awards was approximately $2,000. Unamortized compensation cost as of September 30, 2018 is expected to be recognized over a remaining weighted-average vesting period of 0.05 years. As of September 30, 2018, there were 463,034 shares reserved for grants under the 2014 Plan. Restricted Stock Awards A summary of the restricted common stock activity under the Company’s 2014 Plan for the nine months ended September 30, 2018 is as follows: Restricted Stock Awards Shares Weighted Average Grant Date Fair Value per Share Aggregate Fair Value Balance at January 1, 2018 47,337 $ 14.35 $ 679,180 Granted 90,004 $ 19.09 $ 1,717,958 Vested (15,752 ) $ 14.07 $ (221,613 ) Forfeited (664 ) $ 15.00 $ (9,960 ) Balance at September 30, 2018 120,925 $ 17.91 $ 2,165,565 Fair value was calculated using the closing price of the Company’s common stock on the grant date. For the three months ended September 30, 2018 and 2017, stock-based compensation of approximately $196,000 and $65,000, respectively, for these grants is included in other operating expenses in the condensed consolidated statements of income and comprehensive income. For the nine months ended September 30, 2018 and 2017, stock-based compensation of approximately $477,000 and $163,000, respectively, for these grants is included in other operating expenses 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 directors, executives and employees.

9. Income Taxes

9. Income Taxes	9 Months Ended
9. Income Taxes	Sep. 30, 2018
Notes to Financial Statements
9. 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 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 sheets reflect temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and income tax purposes, tax effected at a various rates depending on whether the temporary differences are subject to federal taxes, state taxes, or both. On December 22, 2017, the Tax Act was enacted by the U.S. federal government. The Company has accounted for the material impacts of the Tax Act by re-measuring its deferred tax assets/(liabilities) at the 21% enacted tax rate as of December 31, 2017. Upon completion of the 2017 U.S. income tax return in 2018, the Company may identify additional re-measurement adjustments to its recorded deferred tax liabilities and the one-time transition tax. The Company will continue to assess its provision for income taxes as future guidance is issued, but does not currently anticipate significant revisions will be necessary. Any such revisions will be treated in accordance with the measurement period guidance outlined in Staff Accounting Bulletin No. 118. Significant components of the Company’s deferred tax assets and liabilities are as follows: September 30, December 31, 2018 2017 Deferred tax asset: Net operating loss carryovers (1) $ 87,018 $ 103,655 Claims reserve discount 357,793 300,005 Unearned premium 3,048,775 2,431,301 Deferred ceding commission revenue 528,668 895,947 Net unrealized loss of securities - available for sale 537,678 - Other 329,273 382,522 Total deferred tax assets 4,889,205 4,113,430 Deferred tax liability: Investment in KICO (2) 759,543 759,543 Deferred acquisition costs 3,595,882 3,117,920 Intangibles 158,550 212,100 Depreciation and amortization 253,227 328,735 Net unrealized gains of securities - available for sale - 295,474 Total deferred tax liabilities 4,767,202 4,713,772 Net deferred income tax asset (liability) $ 122,003 $ (600,342 ) _____________________________ (1) The deferred tax assets from net operating loss carryovers (“NOL”) are as follows: September 30, December 31, Type of NOL 2018 2017 Expiration State only (A) $ 1,146,036 $ 824,996 December 31, 2038 Valuation allowance (1,061,118 ) (725,541 ) State only, net of valuation allowance 84,918 99,455 Amount subject to Annual Limitation, federal only (B) 2,100 4,200 December 31, 2019 Total deferred tax asset from net operating loss carryovers $ 87,018 $ 103,655 (A) Kingstone generates operating losses for state purposes and has prior year NOLs available. The state NOL as of September 30, 2018 and December 31, 2017 was approximately $17,631,000 and $12,692,000, respectively. KICO 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 2038. (B) The Company has an NOL of $10,000 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 loss subject to the Annual Limitation will expire on December 31, 2019. (2) Deferred tax liability – Investment in KICO On July 1, 2009, the Company completed the acquisition of 100% of the issued and outstanding common stock of KICO (formerly known as Commercial Mutual Insurance Company (“CMIC”)) pursuant to the conversion of CMIC from an advance premium cooperative to a stock property and casualty insurance company. Pursuant to the plan of conversion, the Company acquired a 100% equity interest in KICO, in consideration for the exchange of $3,750,000 principal amount of surplus notes of CMIC. In addition, the Company forgave all accrued and unpaid interest on the surplus notes as of the date of conversion. As of the date of acquisition, unpaid accrued interest on the surplus notes along with the accretion of the discount on the original purchase of the surplus notes totaled $2,921,319 (together “Untaxed Interest”). As of the date of acquisition, the deferred tax liability on the Untaxed Interest was $1,169,000. A temporary difference with an indefinite life exists when the parent has a lower carrying value of its subsidiary for income tax purposes. The deferred tax liability was reduced to $759,543 upon the reduction of federal income tax rates as of December 31, 2017. The Company is required to maintain its deferred tax liability of $759,543 related to this temporary difference until the stock of KICO is sold, or the assets of KICO are sold or KICO and the parent are merged. In assessing the valuation of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. No valuation allowance against deferred tax assets has been established, except for NOL limitations, as the Company believes it is more likely than not the deferred tax assets will be realized based on the historical taxable income of KICO, or by offset to deferred tax liabilities. The Company had no material unrecognized tax benefit and no adjustments to liabilities or operations were required. There were no interest or penalties related to income taxes that have been accrued or recognized as of and for the nine months ended September 30, 2018 and 2017. 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, 2014 through December 31, 2017 remain subject to examination. In March 2018, the Company received a notice that its federal income tax return for the year ended December 31, 2016 was selected for examination by the Internal Revenue Service. The final results of this examination are unknown, although management believes that the return, as filed, is fully compliant with applicable tax code.

10. Earnings Per Common Share

10. Earnings Per Common Share	9 Months Ended
10. Earnings Per Common Share	Sep. 30, 2018
Notes to Financial Statements
10. Earnings Per Common Share	Basic earnings per common share is computed by dividing income available to common stockholders 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 as well as non-vested restricted stock awards. 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. 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 Nine months ended September 30, September 30, 2018 2017 2018 2017 Weighted average number of shares outstanding 10,681,329 10,626,242 10,672,084 10,307,689 Effect of dilutive securities, common share equivalents Stock options 98,749 197,133 100,628 189,211 Restricted stock awards 11,045 9,364 7,878 3,372 Weighted average number of shares outstanding, used for computing diluted earnings per share 10,791,123 10,832,739 10,780,590 10,500,272

11. Commitments and Contingenci

11. Commitments and Contingencies	9 Months Ended
11. Commitments and Contingencies	Sep. 30, 2018
Notes to Financial Statements
11. Commitments and Contingencies	Litigation From time to time, the Company is involved in various legal proceedings in the ordinary course of business. For example, to the extent a claim is 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 The Company is a party to a non-cancellable operating lease, dated March 27, 2015, for its office facility for KICO located in Valley Stream, New York. In June 2016, the Company entered into a lease modification agreement. The original lease had a term of seven years and nine months. The lease modification increased the space occupied by KICO and extended the lease term to seven years and nine months to be measured from the additional premises commencement date. The additional premises commencement date was September 19, 2016, and additional rent was payable beginning March 19, 2017. The original lease commencement date was July 1, 2015 and rent commencement began January 1, 2016. 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 September 30, 2018, cumulative rent expense exceeded cumulative rent payments by $91,900. This difference is recorded as deferred rent and is included in accounts payable, accrued expenses and other liabilities in the condensed consolidated balance sheets. As of September 30, 2018, aggregate future minimum rental commitments under the Company’s modified lease agreement are as follows: For the Year Ending December 31, Total 2018 (three months) $ 41,379 2019 169,861 2020 175,806 2021 181,959 2022 188,328 Thereafter 244,064 Total $ 1,001,397 Rent expense for the three months ended September 30, 2018 and 2017 amounted to $41,342 for each period. Rent expense for the nine months ended September 30, 2018 and 2017 amounted to $124,026 for each period. Rent expense is included in the condensed consolidated statements of income and comprehensive income within other underwriting expenses. Employment Agreement Barry Goldstein On October 16, 2018, the Company entered into an amended and restated employment agreement with Barry Goldstein, its President, Chairman of the Board and Chief Executive Officer, effective as of January 1, 2019 and expiring on December 31, 2021 (the “Amended Employment Agreement”). Pursuant to the Amended Employment Agreement, Mr. Goldstein will step down as Chief Executive Officer on January 1, 2019 and has currently been named Executive Chairman of the Board. Mr. Goldstein will be entitled to receive an annual base salary of $636,500 for the calendar year 2019 and $500,000 for each of the calendar years 2020 and 2021. In addition, Mr. Goldstein is eligible to receive an annual performance bonus equal to 3% of the Company’s consolidated income from operations before taxes, exclusive of the Company’s consolidated net investment income (loss) and net realized gains (losses) on investments. In addition, pursuant to the Amended Employment Agreement, Mr. Goldstein will continue to be entitled to a long-term compensation award (“LTC”) (which is a continuation of the previous terms under the agreement in effect since January 1, 2017) of between $945,000 and $2,835,000 based on a specified minimum increase in the Company’s adjusted book value per share (as defined in the Amended Employment Agreement) as of December 31, 2019 as compared to December 31, 2016 (with the maximum LTC payment being due if the average per annum increase is at least 14%). Further, pursuant to the Amended Employment Agreement, in the event that Mr. Goldstein’s employment is terminated by the Company without cause or he resigns for good reason (each as defined in the Amended Employment Agreement), Mr. Goldstein would be entitled to receive separation payments equal to his then applicable base salary, the 3% bonus and the LTC payment for the remainder of the term. Mr. Goldstein would be entitled, under certain circumstances, to a payment equal to three times his then annual salary and the target LTC payment in the event of the termination of his employment following a change of control of the Company. Pursuant to the Amended Employment Agreement, Mr. Goldstein will be entitled to receive a grant, under the terms of the 2014 Plan, during the first 30 days of January, 2020, with respect to a number of shares of restricted stock determined by dividing $436,500 by the fair market value of the Company stock on the date of grant. The January 2020 grant will become vested with respect to fifty percent (50%) of the award on each of December 31, 2020 and December 31, 2021 based on continued provision of services on each vesting date. Also pursuant to the Amended Employment Agreement, Mr. Goldstein will be entitled to receive a grant, under the 2014 Plan, during the first 30 days of 2021, with respect to a number of shares of restricted stock determined by dividing $236,500 by the fair market value of the Company stock on the date of grant. The January 2021 grant will become vested as of December 31, 2021 based on continued provision of services on the vesting date. Dale A. Thatcher (1) Agreement in effect for the year ended December 31, 2018 On March 14, 2018, the Company and Dale A. Thatcher, a director of the Company, entered into an employment agreement (the “Thatcher Employment Agreement”) pursuant to which Mr. Thatcher serves as the Company’s Chief Operating Officer. Mr. Thatcher also serves as KICO’s President. The Thatcher Employment Agreement became effective as of March 15, 2018 and expires on December 31, 2018. Pursuant to the Thatcher Employment Agreement, Mr. Thatcher is entitled to receive a base salary of $500,000 per annum and a minimum bonus equal to 15% of his base salary. Concurrently with the execution of the Thatcher Employment Agreement, the Company granted to Mr. Thatcher 35,715 shares of restricted Common Stock under the 2014 Plan. The shares granted will vest in three equal installments on each of the three anniversaries following the grant date, subject to the terms of the restricted stock grant agreement between the Company and Mr. Thatcher. (2) Agreement in effect as of January 1, 2019 On October 16, 2018, the Company and Mr. Thatcher entered into an Employment Agreement effective as of January 1, 2019 and expiring on December 31, 2021 (the “2019 Thatcher Employment Agreement”). Pursuant to the 2019 Thatcher Employment Agreement, Mr. Thatcher will be promoted at such time to succeed Mr. Goldstein as Chief Executive Officer. Mr. Thatcher will continue to serve as a director and will remain President of KICO. Mr. Thatcher will be entitled to receive an annual base salary of $500,000 for 2019, $630,000 for 2020 and no increase in 2021. In addition, Mr. Thatcher is eligible to receive an annual performance bonus equal to 3% of the Company’s consolidated income from operations before taxes, exclusive of the Company’s consolidated net investment income (loss) and net realized gains (losses) on investments. Pursuant to the 2019 Thatcher Employment Agreement, in the event that Mr. Thatcher’s employment is terminated by the Company without cause or he resigns for good reason (each as defined in the 2019 Thatcher Employment Agreement), Mr. Thatcher would be entitled to receive separation payments equal to his then applicable base salary and the 3% bonus for the remainder of the term. Pursuant to the 2019 Thatcher Employment Agreement, Mr. Thatcher will be entitled to receive a grant, under the terms of the 2014 Equity Plan, with respect to a number of shares of restricted stock in each of 2019, 2020 and 2021 determined by dividing $750,000, $1,250,000 and $1,500,000, respectively, by the fair market value of the Company stock on the date of grant. Each grant vests ratably over a three year period from the date of grant.

12. Deferred Compensation Plan

12. Deferred Compensation Plan	9 Months Ended
12. Deferred Compensation Plan	Sep. 30, 2018
Deferred Compensation Plan
12. Deferred Compensation Plan	On June 18, 2018, the Company adopted the Kingstone Companies, Inc. Deferred Compensation Plan (the "Deferred Compensation Plan"). The Deferred Compensation Plan is offered to a select group (“Participants”), consisting of management and highly compensated employees as a method of recognizing and retaining such Participants. The Deferred Compensation Plan provides for eligible Participants to elect to defer up to 75% of their base compensation and up to 100% of bonuses and other compensation and to have such deferred amounts deemed to be invested in specified investment options. In addition to the Participant deferrals, the Company may choose to make matching contributions to some or all of the Participants in the Deferred Compensation Plan to the extent the Participant did not receive the maximum matching or non-elective contributions permissible under the Company’s 401(k) Plan due to limitations under the Internal Revenue Code or the 401(k) Plan. Participants may elect to receive payment of their account balances in a single cash payment or in annual installments for a period of up to ten years. The first payroll subject to the Deferred Compensation Plan was in July 2018. The deferred compensation liability as of September 30, 2018 amounted to $149,359 and is recorded in accounts payable, accrued expenses and other liabilities in the condensed consolidated balance sheets. The Company made voluntary contributions of $1,482 for the three months and nine months ended September 30, 2018, which are recorded in other operating expenses in the condensed consolidated statements of income and comprehensive income.

13. Subsequent Events

13. Subsequent Events	9 Months Ended
13. Subsequent Events	Sep. 30, 2018
Notes to Financial Statements
13. Subsequent Events	The Company has evaluated events that occurred subsequent to September 30, 2018 through the date these condensed consolidated financial statements were issued for matters that required disclosure or adjustment in these condensed consolidated financial statements. Dividends Declared On November 7, 2018, the Company’s Board of Directors approved a quarterly dividend of $.10 per share payable in cash on December 14, 2018 to stockholders of record as of the close of business on November 30, 2018 (see Note 8). Employment Agreements See Note 11 Commitments and Contingencies.

2. Accounting Policies (Policie

2. Accounting Policies (Policies)	9 Months Ended
2. Accounting Policies (Policies)	Sep. 30, 2018
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. Actual results could differ from these estimates and assumptions, which include the reserves for losses and loss adjustment expenses and are subject to estimation errors due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of many years. In addition, estimates and assumptions associated with receivables under reinsurance contracts related to contingent ceding commission revenue require judgments by management. On an on-going basis, management reevaluates its assumptions and the methods for calculating these 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 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 – Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). 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, was effective for the Company for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted ASU 2014-09 effective January 1, 2018. The standard excludes from its scope the accounting for insurance contracts, financial instruments, and certain other agreements that are governed under other GAAP guidance. Accordingly, the adoption of ASU 2014-09, as amended, did not have a material impact on the Company’s condensed consolidated financial statements. In January 2016, the FASB issued ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). Effective January 1, 2018, the Company adopted the provisions of ASU 2016-01. The updated guidance requires equity investments, including limited partnership interests, except those accounted for under the equity method of accounting, that have a readily determinable fair value to be measured at fair value with any changes in fair value recognized in net income. Equity securities that do not have readily determinable fair values may be measured at estimated fair value or cost less impairment, if any, adjusted for subsequent observable price changes, with changes in the carrying value recognized in net income. A qualitative assessment for impairment is required for equity investments without readily determinable fair values. The updated guidance also eliminates the requirement to disclose the method and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost on the balance sheet. The adoption of this guidance resulted in the recognition of approximately $414,000 of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that increased retained earnings as of January 1, 2018 and decreased accumulated other comprehensive income (“AOCI”) by the same amount. The Company elected to report changes in the fair value of equity investments in net gains (losses) on investments in the condensed consolidated statements of income and comprehensive income. At December 31, 2017, equity investments were classified as available-for-sale on the Company's consolidated balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments. Furthermore, for the three months and nine months ended September 30, 2018, net gain (loss) on investments of approximately $352,000 and ($278,000), respectively, in the condensed consolidated statements of income and comprehensive income included gains of approximately $409,000 and $99,000, respectively, from the fair value change of equity securities. In August 2016, FASB issued ASU 2016-15 – Statement of Cash Flows (Topic 320): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). 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. The effective date of ASU 2016-15 was for interim and annual reporting periods beginning after December 15, 2017. The Company adopted this ASU effective January 1, 2018, and it did not have a material impact on the Company’s condensed consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). In February 2018, the FASB issued ASU 2018-02 - Income Statement – Reporting Comprehensive Income (Topic 220) – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). The deferred income tax liability for unrealized gains on available-for-sale securities that were re-measured due to the reduction in corporate income tax rates under the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) resulted in a stranded tax effect within AOCI. This is due to the effect of the tax rate change being recorded through continuing operations as required under Accounting Standards Codification 740 (“ASC 740”). The revised ASU allows for the reclassification of the stranded tax effects as a result of the Act from AOCI to retained earnings and requires certain other disclosures. Effective December 31, 2017, the Company chose to early adopt the provisions of ASU 2018-02 and recorded a one-time reclassification of $182,912 from AOCI to retained earnings for the stranded tax effects resulting from the newly enacted corporate tax rate. The amount of the reclassification was the difference between the historical corporate tax rate and the newly enacted 21% corporate tax rate.
Accounting Pronouncements	In February 2016, FASB issued ASU 2016-02 – Leases (Topic 842) (“ASU 2016-02”). 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 does not expect the adoption of ASU 2016-02 to 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 (“ASU 2016-13”). 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. The Company has determined that all other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its operations.

3. Investments (Tables)

3. Investments (Tables)	9 Months Ended
3. Investments (Tables)	Sep. 30, 2018
Notes to Financial Statements
Schedule of Available for Sale Securities	September 30, 2018 Net Cost or Gross Gross Unrealized Losses Unrealized Amortized Unrealized Less than 12 More than 12 Fair Gains/ Categor Cost Gains Months Months Value (Losses Fixed-Maturity Securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 8,214,959 $ - $ (75,222 ) $ - $ 8,139,737 $ (75,222 ) Political subdivisions of States, Territories and Possessions 6,545,242 26,468 (63,596 ) (50,343 ) 6,457,771 (87,471 ) Corporate and other bonds Industrial and miscellaneous 106,538,272 87,788 (2,461,966 ) (399,360 ) 103,764,734 (2,773,538 ) Residential mortgage and other asset backed securities (1) 23,274,361 288,079 (99,954 ) (464,193 ) 22,998,293 (276,068 ) Total $ 144,572,834 $ 402,335 $ (2,700,738 ) $ (913,896 ) $ 141,360,535 $ (3,212,299 ) (1) In 2017, KICO placed certain residential mortgage backed securities as eligible collateral in a designated custodian account related to its membership in the Federal Home Loan Bank of New York ("FHLBNY") (See Note 7). The eligible collateral would be pledged to FHLBNY if KICO draws an advance from the FHBLNY credit line. As of September 30, 2018, the fair value of the eligible investments was approximately $5,790,000. KICO will retain all rights regarding all securities if pledged as collateral. As of September 30, 2018, there was no outstanding balance on the FHBLNY credit line. December 31, 2017 Net Cost or Gross Gross Unrealized Losses Unrealized Amortized Unrealized Less than 12 More than 12 Fair Gains/ Categor Cost Gains Months Months Value (Losses Fixed-Maturity Securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ - $ - $ - $ - $ - $ - Political subdivisions of States, Territories and Possessions 11,096,122 250,135 (30,814 ) - 11,315,443 219,321 Corporate and other bonds Industrial and miscellaneous 87,562,631 1,189,207 (269,857 ) (340,516 ) 88,141,465 578,834 Residential mortgage and other asset backed securities (1) 20,463,353 305,499 (48,482 ) (189,022 ) 20,531,348 67,995 Total $ 119,122,106 $ 1,744,841 $ (349,153 ) $ (529,538 ) $ 119,988,256 $ 866,150 (1) In 2017, KICO placed certain residential mortgage backed securities as eligible collateral in a designated custodian account related to its membership in the FHLBNY (see Note 7). The eligible collateral would be pledged to FHLBNY if KICO draws an advance from the FHBLNY credit line. As of December 31, 2017, the fair value of the eligible investments was approximately $6,703,000. KICO will retain all rights regarding all securities if pledged as collateral. As of December 31, 2017, there was no outstanding balance on the FHLBNY credit line. A summary of the amortized cost and fair value of the Company’s investments in available-for-sale fixed-maturity securities by contractual maturity as of September 30, 2018 and December 31, 2017 is shown below: September 30, 2018 December 31, 2017 Amortized Amortized Remaining Time to Maturit Cost Fair Value Cost Fair Value Less than one year $ 1,689,356 $ 1,683,350 $ 2,585,479 $ 2,595,938 One to five years 39,607,252 39,173,793 31,716,345 32,065,197 Five to ten years 77,027,918 74,706,819 62,702,945 63,129,543 More than 10 years 2,973,947 2,798,280 1,653,984 1,666,230 Residential mortgage and other asset backed securities 23,274,361 22,998,293 20,463,353 20,531,348 Total $ 144,572,834 $ 141,360,535 $ 119,122,106 $ 119,988,256
Schedule of Available for Sale Securities by contractual maturity	September 30, 2018 Gross Gross Fair Categor Cost Gains Losses Value Equity Securities: Preferred stocks $ 6,865,381 $ 20,121 $ (188,302 ) $ 6,697,200 Common stocks and exchange traded mutual funds 11,628,928 1,131,212 (580,650 ) 12,179,490 Total $ 18,494,309 $ 1,151,333 $ (768,952 ) $ 18,876,690 December 31, 2017 Gross Gross Fair Categor Cost Gains Losses Value Equity Securities: Preferred stocks $ 7,081,099 $ 60,867 $ (141,025 ) $ 7,000,941 Common stocks and exchange traded mutual funds 6,680,742 841,250 (236,735 ) 7,285,257 Total $ 13,761,841 $ 902,117 $ (377,760 ) $ 14,286,198
Schedule of Other Investments	September 30, 2018 December 31, 2017 Gross Fair Gross Fair Categor Cost Gains Value Cost Gains Value Other Investments: Hedge fund $ 2,000,000 $ 241,444 $ 2,241,444 $ - $ - $ - Total $ 2,000,000 $ 241,444 $ 2,241,444 $ - $ - $ -
Schedule of Held to Maturity Securities	September 30, 2018 Cost or Gross Gross Unrealized Losses Net Amortized Unrealized Less than 12 More than 12 Fair Unrealized Categor Cost Gains Months Months Value Gains/(Losses) Held-to-Maturity Securities: U.S. Treasury securities $ 729,496 $ 147,543 $ (7,649 ) $ - $ 869,390 $ 139,894 Political subdivisions of States, Territories and Possessions 998,852 24,393 - - 1,023,245 24,393 Corporate and other bonds Industrial and miscellaneous 2,494,004 36,835 (5,100 ) (7,610 ) 2,518,129 24,125 Total $ 4,222,352 $ 208,771 $ (12,749 ) $ (7,610 ) $ 4,410,764 $ 188,412 December 31, 2017 Cost or Gross Gross Unrealized Losses Net Amortized Unrealized Less than 12 More than 12 Fair Unrealized Categor Cost Gains Months Months Value Gains/(Losses) Held-to-Maturity Securities: U.S. Treasury securities $ 729,466 $ 147,573 $ (1,729 ) $ - $ 875,310 $ 145,844 Political subdivisions of States, Territories and Possessions 998,984 50,366 - - 1,049,350 50,366 Corporate and other bonds Industrial and miscellaneous 3,141,358 90,358 - (6,300 ) 3,225,416 84,058 Total $ 4,869,808 $ 288,297 $ (1,729 ) $ (6,300 ) $ 5,150,076 $ 280,268
Schedule of Held to Maturity Securities by contractual maturity	September 30, 2018 December 31, 2017 Amortized Amortized Remaining Time to Maturit Cost Fair Value Cost Fair Value Less than one year $ - $ - $ - $ - One to five years 2,996,308 3,030,709 2,546,459 2,601,898 Five to ten years 619,548 626,016 1,716,884 1,794,139 More than 10 years 606,496 754,039 606,465 754,039 Total $ 4,222,352 $ 4,410,764 $ 4,869,808 $ 5,150,076
Schedule of Investment Income	Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Income: Fixed-maturity securities $ 1,386,931 $ 926,170 $ 3,898,730 $ 2,607,166 Equity securities 214,498 143,826 609,086 408,812 Cash and cash equivalents 44,024 5,772 159,865 14,446 Total 1,645,453 1,075,768 4,667,681 3,030,424 Expenses: Investment expenses 43,082 42,461 124,455 113,313 Net investment income $ 1,602,371 $ 1,033,307 $ 4,543,226 $ 2,917,111
Schedule of Securities with realized gains and losses on investments	Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Realized (Losses) Gains Fixed-maturity securities: Gross realized gains $ 4,750 $ 5,542 $ 116,961 $ 67,260 Gross realized losses (1) (77,192 ) (56,783 ) (560,418 ) (167,340 ) (72,442 ) (51,241 ) (443,457 ) (100,080 ) Equity securities: Gross realized gains 121,609 229,792 436,859 386,057 Gross realized losses (106,321 ) (107,553 ) (370,705 ) (139,062 ) 15,288 122,239 66,154 246,995 Net realized (losses) gains (57,154 ) 70,998 (377,303 ) 146,915 Other-than-temporary impairment losses: Fixed-maturity securities - (50,000 ) - (50,000 ) Unrealized Gains (Losses) Equity securities: Gross gains 288,435 - - - Gross losses - - (141,976 ) - 288,435 - (141,976 ) - Other investments: Gross gains 120,744 - 241,444 - Gross losses - - - - 120,744 - 241,444 - Net unrealized gains 409,179 - 99,468 - Net gains (losses) on investments $ 352,025 $ 20,998 $ (277,835 ) $ 96,915 (1) Gross realized losses for the nine months ended September 30, 2018 and 2017 include a $23,912 and a $747 loss, respectively, from the redemption of fixed-maturity securities held-to-maturity.
Schedule of Securities with Unrealized Losses	September 30, 2018 Less than 12 months 12 months or more Total No. of No. of Aggregate Fair Unrealized Positions Fair Unrealized Positions Fair Unrealized Categor Value Losses Held Value Losses Held Value Losses Fixed-Maturity Securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 8,139,737 $ (75,222 ) 7 $ - $ - - $ 8,139,737 $ (75,222 ) Political subdivisions of States, Territories and Possessions 3,396,474 (63,596 ) 7 1,122,656 (50,343 ) 2 4,519,130 (113,939 ) Corporate and other bonds industrial and miscellaneous 86,846,478 (2,461,966 ) 108 6,950,836 (399,360 ) 14 93,797,314 (2,861,326 ) Residential mortgage and other asset backed securities 8,593,080 (99,954 ) 10 11,453,668 (464,193 ) 18 20,046,748 (564,147 ) Total fixed-maturity securities $ 106,975,769 $ (2,700,738 ) 132 $ 19,527,160 $ (913,896 ) 34 $ 126,502,929 $ (3,614,634 ) December 31, 2017 Less than 12 months 12 months or more Total No. of No. of Aggregate Fair Unrealized Positions Fair Unrealized Positions Fair Unrealized Categor Value Losses Held Value Losses Held Value Losses Fixed-Maturity Securities: Political subdivisions of States, Territories and Possessions $ 1,549,839 $ (30,814 ) 4 $ - $ - - $ 1,549,839 $ (30,814 ) Corporate and other bonds industrial and miscellaneous 15,036,462 (269,857 ) 20 9,113,924 (340,516 ) 17 24,150,386 (610,373 ) Residential mortgage and other asset backed securities 6,956,371 (48,482 ) 6 7,867,572 (189,022 ) 15 14,823,943 (237,504 ) Total fixed-maturity securities $ 23,542,672 $ (349,153 ) 30 $ 16,981,496 $ (529,538 ) 32 $ 40,524,168 $ (878,691 ) Equity Securities: Preferred stocks $ 1,605,217 $ (20,313 ) 5 $ 1,776,675 $ (120,712 ) 3 $ 3,381,892 $ (141,025 ) Common stocks and exchange traded mutual funds 1,446,375 (222,205 ) 4 124,900 (14,530 ) 1 1,571,275 (236,735 ) Total equity securities $ 3,051,592 $ (242,518 ) 9 $ 1,901,575 $ (135,242 ) 4 $ 4,953,167 $ (377,760 ) Total $ 26,594,264 $ (591,671 ) 39 $ 18,883,071 $ (664,780 ) 36 $ 45,477,335 $ (1,256,451 )

4. Fair Value Measurements (Tab

4. Fair Value Measurements (Tables)	9 Months Ended
4. Fair Value Measurements (Tables)	Sep. 30, 2018
Notes to Financial Statements
Schedule of Fair Value Measurements	September 30, 2018 Level 1 Level 2 Level 3 Total Fixed-maturity securities available-for-sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 8,139,737 $ - $ - $ 8,139,737 Political subdivisions of States, Territories and Possessions - 6,457,771 - 6,457,771 Corporate and other bonds industrial and miscellaneous 100,090,703 3,674,031 - 103,764,734 Residential mortgage backed securities - 22,998,293 - 22,998,293 Total fixed maturities 108,230,440 33,130,095 - 141,360,535 Equity securities 18,876,690 - - 18,876,690 Total investments $ 127,107,130 $ 33,130,095 $ - $ 160,237,225 December 31, 2017 Level 1 Level 2 Level 3 Total Fixed-maturity securities available-for-sale Political subdivisions of States, Territories and Possessions $ - $ 11,315,443 $ - $ 11,315,443 Corporate and other bonds industrial and miscellaneous 83,597,300 4,544,165 - 88,141,465 Residential mortgage backed securities - 20,531,348 - 20,531,348 Total fixed maturities 83,597,300 36,390,956 - 119,988,256 Equity securities 14,286,198 - - 14,286,198 Total investments $ 97,883,498 $ 36,390,956 $ - $ 134,274,454
Schedule of Hedge Fund Investments	Categor September 30, 2018 December 31, 2017 Other Investments: Hedge fund $ 2,241,444 $ - Total $ 2,241,444 $ -

5. Fair Value of Financial In_2

5. Fair Value of Financial Instruments and Real Estate (Tables)	9 Months Ended
	Sep. 30, 2018
Notes to Financial Statements
Schedule of Fair Value of Financial Instruments	September 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Fixed-maturity securities-held-to maturity $ 4,222,352 $ 4,410,764 $ 4,869,808 $ 5,150,076 Cash and cash equivalents $ 29,893,676 $ 29,893,676 $ 48,381,633 $ 48,381,633 Investment subscription receivable $ - $ - $ 2,000,000 $ 2,000,000 Premiums receivable, net $ 13,484,547 $ 13,484,547 $ 13,217,698 $ 13,217,698 Reinsurance receivables, net $ 25,018,461 $ 25,018,461 $ 28,519,130 $ 28,519,130 Real estate, net of accumulated depreciation $ 2,199,140 $ 2,705,000 $ 2,261,829 $ 2,705,000 Reinsurance balances payable $ 1,723,844 $ 1,723,844 $ 2,563,966 $ 2,563,966 Long-term debt, net $ 29,251,206 $ 29,251,206 $ 29,126,965 $ 29,126,965

6. Property and Casualty Insu_2

6. Property and Casualty Insurance Activity (Tables)	9 Months Ended
6. Property and Casualty Insurance Activity (Tables)	Sep. 30, 2018
Notes to Financial Statements
Schedule of Earned Premiums	Direct Assumed Ceded Net Nine months ended September 30, 2018 Premiums written $ 107,175,413 $ 842 $ (19,409,423 ) $ 87,766,832 Change in unearned premiums (9,930,503 ) 3,762 (3,363,953 ) (13,290,694 ) Premiums earned $ 97,244,910 $ 4,604 $ (22,773,376 ) $ 74,476,138 Nine months ended September 30, 2017 Premiums written $ 89,423,758 $ 18,203 $ (20,719,037 ) $ 68,722,924 Change in unearned premiums (8,456,690 ) 8,162 (5,436,513 ) $ (13,885,041 ) Premiums earned $ 80,967,068 $ 26,365 $ (26,155,550 ) $ 54,837,883 Three months ended September 30, 2018 Premiums written $ 38,785,453 $ 18 $ (2,683,699 ) $ 36,101,772 Change in unearned premiums (4,435,174 ) 698 (4,133,389 ) (8,567,865 ) Premiums earned $ 34,350,279 $ 716 $ (6,817,088 ) $ 27,533,907 Three months ended September 30, 2017 Premiums written $ 32,839,891 $ 11,910 $ (590,482 ) $ 32,261,319 Change in unearned premiums (4,407,894 ) (165 ) (6,338,852 ) (10,746,911 ) Premiums earned $ 28,431,997 $ 11,745 $ (6,929,334 ) $ 21,514,408
Schedule of Loss and Loss Adjustment Expenses	Nine months ended September 30, 2018 2017 Balance at beginning of period $ 48,799,622 $ 41,736,719 Less reinsurance recoverables (16,748,908 ) (15,776,880 ) Net balance, beginning of period 32,050,714 25,959,839 Incurred related to: Current year 41,611,658 23,071,466 Prior years 127,465 (250,225 ) Total incurred 41,739,123 22,821,241 Paid related to: Current year 23,404,909 12,955,928 Prior years 12,160,419 8,176,715 Total paid 35,565,328 21,132,643 Net balance at end of period 38,224,509 27,648,437 Add reinsurance recoverables 15,718,448 14,642,360 Balance at end of period $ 53,942,957 $ 42,290,797
Allocated Claim Adjustment Expenses	All Lines of Business (in thousands, except reported claims data) As of Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance September 30, 2018 For the Years Ended December 31, Nine Months Ended September 30, IBNR Cumulative Number of Reported Claims by Accident Year Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited 2009 - 2015) (Unaudited) 2009 $ 4,403 $ 4,254 $ 4,287 $ 4,384 $ 4,511 $ 4,609 $ 4,616 $ 4,667 $ 4,690 $ 4,670 $ 0 1,136 2010 5,598 5,707 6,429 6,623 6,912 6,853 6,838 6,840 6,785 (1) 1,616 2011 7,603 7,678 8,618 9,440 9,198 9,066 9,144 9,147 2 1,913 2012 9,539 9,344 10,278 10,382 10,582 10,790 10,770 19 4,702 (1) 2013 10,728 9,745 9,424 9,621 10,061 10,000 132 1,560 2014 14,193 14,260 14,218 14,564 14,954 309 2,129 2015 22,340 21,994 22,148 22,186 642 2,546 2016 26,062 24,941 24,256 1,646 2,860 2017 31,605 32,146 3,376 3,322 2018 39,653 6,386 2,953 Total $ 174,567 (1) Reported claims for accident year 2012 includes 3,406 claims from Superstorm Sandy All Lines of Business (in thousands) Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Nine Months Ended September 30, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited 2009 - 2015) (Unaudited) 2009 $ 2,298 $ 3,068 $ 3,607 $ 3,920 $ 4,134 $ 4,362 $ 4,424 $ 4,468 $ 4,487 $ 4,659 2010 2,566 3,947 4,972 5,602 6,323 6,576 6,720 6,772 6,778 2011 3,740 5,117 6,228 7,170 8,139 8,540 8,702 8,717 2012 3,950 5,770 7,127 8,196 9,187 10,236 10,302 2013 3,405 5,303 6,633 7,591 8,407 8,834 2014 5,710 9,429 10,738 11,770 13,508 2015 12,295 16,181 18,266 19,473 2016 15,364 19,001 20,098 2017 16,704 23,499 2018 22,223 Total $ 138,091 Net liability for unpaid loss and allocated loss adjustment expenses for the accident years presented $36,476 All outstanding liabilities before 2009, net of reinsurance 199 Liabilities for loss and allocated loss adjustment expenses, net of reinsurance $ 36,675
Reconciliation of the net incurred and paid claims	Reconciliation of the Disclosure of Incurred and Paid Loss Development to the Liability for Loss and LAE Reserves As of (in thousands) September 30, 2018 Liabilities for allocated loss and loss adjustment expenses, net of reinsurance $ 36,675 Total reinsurance recoverable on unpaid losses 15,718 Unallocated loss adjustment expenses 1,550 Total gross liability for loss and LAE reserves $ 53,943
Schedule of line of business	Treaty Year July 1, 2018 July 1, 2017 July 1, 2016 to to to Line of Business June 30, 2019 June 30, 2018 June 30, 2017 Personal Lines Homeowners, dwelling fire and canine legal liability Quota share treaty: Percent ceded 10 % 20 % 40 % Risk retained $ 900,000 $ 800,000 $ 500,000 Losses per occurrence subject to quota share reinsurance coverage $ 1,000,000 $ 1,000,000 $ 833,333 Excess of loss coverage and facultative facility above quota share coverage (1) $ 9,000,000 $ 9,000,000 $ 3,666,667 in excess of in excess of in excess of $ 1,000,000 $ 1,000,000 $ 833,333 Total reinsurance coverage per occurrence $ 9,100,000 $ 9,200,000 $ 4,000,000 Losses per occurrence subject to reinsurance coverage $ 10,000,000 $ 10,000,000 $ 4,500,000 Expiration date June 30, 2019 June 30, 2019 June 30, 2017 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 $ 4,900,000 Losses per occurrence subject to quota share reinsurance coverage $ 5,000,000 $ 5,000,000 $ 5,000,000 Expiration date June 30, 2019 June 30, 2018 June 30, 2017 Commercial Lines General liability commercial policies Quota share treaty None None None Risk retained $ 750,000 $ 750,000 $ 500,000 Excess of loss coverage above risk retained $ 3,750,000 $ 3,750,000 $ 4,000,000 in excess of in excess of in excess of $ 750,000 $ 750,000 $ 500,000 Total reinsurance coverage per occurrence $ 3,750,000 $ 3,750,000 $ 4,000,000 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 % 90 % Percent ceded - excess of $1,000,000 of coverage 100 % 100 % 100 % Risk retained $ 100,000 $ 100,000 $ 100,000 Total reinsurance coverage per occurrence $ 4,900,000 $ 4,900,000 $ 4,900,000 Losses per occurrence subject to quota share reinsurance coverage $ 5,000,000 $ 5,000,000 $ 5,000,000 Expiration date June 30, 2019 June 30, 2018 June 30, 2017 Catastrophe Reinsurance Initial loss subject to personal lines quota share treaty $ 5,000,000 $ 5,000,000 $ 5,000,000 Risk retained per catastrophe occurrence (2) $ 4,500,000 $ 4,000,000 $ 3,000,000 Catastrophe loss coverage in excess of quota share coverage (3) (4) $ 445,000,000 $ 315,000,000 $ 247,000,000 Reinstatement premium protection (5) Yes Yes Yes
Schedule of Single maximum risks under treaties	July 1, 2018 - June 30, 2019 Treaty Extent of Loss Risk Retained Personal Lines (1) Initial $1,000,000 $900,000 $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 $4,500,000 $5,000,000 - $450,000,000 None Over $450,000,000 100% July 1, 2017 - June 30, 2018 July 1, 2016 - June 30, 2017 Treaty Range of Loss Risk Retained Range of Loss Risk Retained Personal Lines (1) Initial $1,000,000 $800,000 Initial $833,333 $500,000 $1,000,000 - $10,000,000 None(2) $833,333 - $4,500,000 None(3) Over $10,000,000 100% 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 - $5,000,000 None Over $5,000,000 100% Over $5,000,000 100% Commercial Lines Initial $750,000 $750,000 Initial $500,000 $500,000 $750,000 - $4,500,000 None(3) $500,000 - $4,500,000 None(3) Over $4,500,000 100% Over $4,500,000 100% Commercial Umbrella Initial $1,000,000 $100,000 Initial $1,000,000 $100,000 $1,000,000 - $5,000,000 None $1,000,000 - $5,000,000 None Over $5,000,000 100% Over $5,000,000 100% Catastrophe (4) Initial $5,000,000 $4,000,000 Initial $5,000,000 $3,000,000 $5,000,000 - $320,000,000 None $5,000,000 - $252,000,000 None Over $320,000,000 100% Over $252,000,000 100%
Schedule of Ceding Commission Revenue	Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Provisional ceding commissions earned $ 1,255,034 $ 1,921,457 $ 5,468,314 $ 8,689,803 Contingent ceding commissions earned (210,505 ) (203,847 ) (1,037,459 ) (481,803 ) $ 1,044,529 $ 1,717,610 $ 4,430,855 $ 8,208,000

7. Debt (Tables)

7. Debt (Tables)	9 Months Ended
7. Debt (Tables)	Sep. 30, 2018
Debt Tables Abstract
Schedule of debt	September 30, December 31, 2018 2017 5.50% Senior Unsecured Notes $ 30,000,000 $ 30,000,000 Discount (137,877 ) (162,209 ) Issuance costs (610,917 ) (710,826 ) Long-term debt, net $ 29,251,206 $ 29,126,965

8. Stockholders' Equity (Tables

8. Stockholders' Equity (Tables)	9 Months Ended
8. Stockholders' Equity (Tables)	Sep. 30, 2018
Notes to Financial Statements
Schedule of Stock Options And Restricted Stock Awards Activity	Stock Options Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2018 341,150 $ 6.69 1.67 $ 4,131,028 Granted - $ - - $ - Exercised (175,250 ) $ 6.32 - $ 2,364,143 Forfeited - $ - - $ - Outstanding at September 30, 2018 165,900 $ 7.09 1.22 $ 1,976,245 Vested and Exercisable at September 30, 2018 155,900 $ 7.01 1.14 $ 1,869,508 Restricted Stock Awards Shares Weighted Average Grant Date Fair Value per Share Aggregate Fair Value Balance at January 1, 2018 47,337 $ 14.35 $ 679,180 Granted 90,004 $ 19.09 $ 1,717,958 Vested (15,752 ) $ 14.07 $ (221,613 ) Forfeited (664 ) $ 15.00 $ (9,960 ) Balance at September 30, 2018 120,925 $ 17.91 $ 2,165,565

9. Income Taxes (Tables)

9. Income Taxes (Tables)	9 Months Ended
9. Income Taxes (Tables)	Sep. 30, 2018
Notes to Financial Statements
Schedule of Deferrred Tax Assets and Liabilities	September 30, December 31, 2018 2017 Deferred tax asset: Net operating loss carryovers (1) $ 87,018 $ 103,655 Claims reserve discount 357,793 300,005 Unearned premium 3,048,775 2,431,301 Deferred ceding commission revenue 528,668 895,947 Net unrealized loss of securities - available for sale 537,678 - Other 329,273 382,522 Total deferred tax assets 4,889,205 4,113,430 Deferred tax liability: Investment in KICO (2) 759,543 759,543 Deferred acquisition costs 3,595,882 3,117,920 Intangibles 158,550 212,100 Depreciation and amortization 253,227 328,735 Net unrealized gains of securities - available for sale - 295,474 Total deferred tax liabilities 4,767,202 4,713,772 Net deferred income tax asset (liability) $ 122,003 $ (600,342 )
Losses subject to Annual Limitation	September 30, December 31, Type of NOL 2018 2017 Expiration State only (A) $ 1,146,036 $ 824,996 December 31, 2038 Valuation allowance (1,061,118 ) (725,541 ) State only, net of valuation allowance 84,918 99,455 Amount subject to Annual Limitation, federal only (B) 2,100 4,200 December 31, 2019 Total deferred tax asset from net operating loss carryovers $ 87,018 $ 103,655

10. Earnings Per Common Share (

10. Earnings Per Common Share (Tables)	9 Months Ended
10. Earnings Per Common Share (Tables)	Sep. 30, 2018
Earnings per common share:
Schedule of Net Income Per Common Share	Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 Weighted average number of shares outstanding 10,681,329 10,626,242 10,672,084 10,307,689 Effect of dilutive securities, common share equivalents Stock options 98,749 197,133 100,628 189,211 Restricted stock awards 11,045 9,364 7,878 3,372 Weighted average number of shares outstanding, used for computing diluted earnings per share 10,791,123 10,832,739 10,780,590 10,500,272

11. Commitments and Contingen_2

11. Commitments and Contingencies (Tables)	9 Months Ended
11. Commitments and Contingencies (Tables)	Sep. 30, 2018
Commitments And Contingencies
Schedule of future minimum rental commitments	For the Year Ending December 31, Total 2018 (three months) $ 41,379 2019 169,861 2020 175,806 2021 181,959 2022 188,328 Thereafter 244,064 Total $ 1,001,397

3. Investments (Details)

3. Investments (Details) - USD ($)	9 Months Ended	12 Months Ended
3. Investments (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
U.S. Treasury Securities and Obligations of U.S. Government [Member]
Cost or Amortized Cost	$ 8,214,959	$ 0
Gross Unrealized Gains	0	0
Gross Unrealized Losses-Less than 12 Months	(75,222)	0
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	8,139,737	0
Net Unrealized Gains/(Losses)	(75,222)	0
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions [Member]
Cost or Amortized Cost	6,545,242	11,096,122
Gross Unrealized Gains	26,468	250,135
Gross Unrealized Losses-Less than 12 Months	(63,596)	(30,814)
Gross Unrealized Loss-More than 12 Months	(50,343)	0
Fair Value	6,457,771	11,315,443
Net Unrealized Gains/(Losses)	(87,471)	219,321
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous [Member]
Cost or Amortized Cost	106,538,272	87,562,631
Gross Unrealized Gains	87,788	1,189,207
Gross Unrealized Losses-Less than 12 Months	(2,461,966)	(269,857)
Gross Unrealized Loss-More than 12 Months	(399,360)	(340,516)
Fair Value	103,764,734	88,141,465
Net Unrealized Gains/(Losses)	(2,773,538)	578,834
Fixed Maturity Securities Residential Mortgage and other asset backed securities [Member]
Cost or Amortized Cost	23,274,361	20,463,353
Gross Unrealized Gains	288,079	305,499
Gross Unrealized Losses-Less than 12 Months	(99,954)	(48,482)
Gross Unrealized Loss-More than 12 Months	(464,193)	(189,022)
Fair Value	22,998,293	20,531,348
Net Unrealized Gains/(Losses)	(276,068)	67,995
Fixed Maturity Securities Total Fixed Maturity Securities [Member]
Cost or Amortized Cost	144,572,834	119,122,106
Gross Unrealized Gains	402,335	1,744,841
Gross Unrealized Losses-Less than 12 Months	(2,700,738)	(349,153)
Gross Unrealized Loss-More than 12 Months	(913,896)	(529,538)
Fair Value	141,360,535	119,988,256
Net Unrealized Gains/(Losses)	(3,212,299)	866,150
Equity Securities Preferred Stocks [Member]
Cost or Amortized Cost	6,865,381	7,081,099
Gross Unrealized Gains	20,121	60,867
Gross Unrealized Losses	(188,302)	(141,025)
Fair Value	6,697,200	7,000,941
Net Unrealized Gains/(Losses)		(80,158)
Equity Securities Common Stocks [Member]
Cost or Amortized Cost	11,628,928	6,680,742
Gross Unrealized Gains	1,131,212	841,250
Gross Unrealized Losses	(580,650)	(236,735)
Fair Value	12,179,490	7,285,257
Net Unrealized Gains/(Losses)		604,515
Equity Securities Total Equity Securities [Member]
Cost or Amortized Cost	18,494,309	13,761,841
Gross Unrealized Gains	1,151,333	902,117
Gross Unrealized Losses	(768,952)	(377,760)
Fair Value	$ 18,876,690	14,286,198
Net Unrealized Gains/(Losses)		$ 524,357

3. Investments (Details 1)

3. Investments (Details 1) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Amortized Cost	$ 144,572,834	$ 119,122,106
Fair Value	141,360,535	119,988,256
Less Than One Year [Member]
Amortized Cost	1,689,356	2,585,479
Fair Value	1,683,350	2,595,938
One To Five Years [Member]
Amortized Cost	39,607,252	31,716,345
Fair Value	39,173,793	32,065,197
Five To Ten Years [Member]
Amortized Cost	77,027,918	62,702,945
Fair Value	74,706,819	63,129,543
More Than 10 Years [Member]
Amortized Cost	2,973,947	1,653,984
Fair Value	2,798,280	1,666,230
Residential mortgage-backed securities [Member]
Amortized Cost	23,274,361	20,463,353
Fair Value	$ 22,998,293	$ 20,531,348

3. Investments (Details 2)

3. Investments (Details 2) - USD ($)	9 Months Ended	12 Months Ended
3. Investments (Details 2) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Cost	$ 2,000,000	$ 0
Fair Value	2,241,444	0
Unrealized Gain	241,444	0
Hedge Fund
Cost	2,000,000	0
Fair Value	2,241,444	0
Unrealized Gain	$ 241,444	$ 0

3. Investments (Details 3)

3. Investments (Details 3) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Cost or Amortized Cost	$ 4,222,352	$ 4,869,808
Gross Unrealized Gains	208,771	288,297
Gross Unrealized Losses-Less than 12 Months	(12,749)	(1,729)
Gross Unrealized Loss-More than 12 Months	(7,610)	(6,300)
Fair Value	4,410,764	5,150,076
Net Unrealized Gains/(Losses)	188,412	280,268
US Treasury Securities [Member]
Cost or Amortized Cost	729,496	729,466
Gross Unrealized Gains	147,543	147,573
Gross Unrealized Losses-Less than 12 Months	(7,649)	(1,729)
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	869,390	875,310
Net Unrealized Gains/(Losses)	139,894	145,844
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions [Member]
Cost or Amortized Cost	998,852	998,984
Gross Unrealized Gains	24,393	50,366
Gross Unrealized Losses-Less than 12 Months	0	0
Gross Unrealized Loss-More than 12 Months	0	0
Fair Value	1,023,245	1,049,350
Net Unrealized Gains/(Losses)	24,393	50,366
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous [Member]
Cost or Amortized Cost	2,494,004	3,141,358
Gross Unrealized Gains	36,835	90,358
Gross Unrealized Losses-Less than 12 Months	(5,100)	0
Gross Unrealized Loss-More than 12 Months	(7,610)	(6,300)
Fair Value	2,518,129	3,225,416
Net Unrealized Gains/(Losses)	$ 24,125	$ 84,058

3. Investments (Details 4)

3. Investments (Details 4) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Amortized Cost	$ 4,222,352	$ 4,869,808
Fair Value	4,410,764	5,150,076
Less Than One Year [Member]
Amortized Cost	0	0
Fair Value	0	0
One To Five Years [Member]
Amortized Cost	2,996,308	2,546,459
Fair Value	3,030,709	2,601,898
Five To Ten Years [Member]
Amortized Cost	619,548	1,716,884
Fair Value	626,016	1,794,139
More Than 10 Years [Member]
Amortized Cost	606,496	606,465
Fair Value	$ 754,039	$ 754,039

3. Investments (Details 5)

3. Investments (Details 5) - USD ($)	3 Months Ended		9 Months Ended
3. Investments (Details 5) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income:
Fixed-maturity securities	$ 1,386,931	$ 926,170	$ 3,898,730	$ 2,607,166
Equity securities	214,498	143,826	609,086	408,812
Cash and cash equivalents	44,024	5,772	159,865	14,446
Total	1,645,453	1,075,768	4,667,681	3,030,424
Expenses:
Investment expenses	43,082	42,461	124,455	113,313
Net investment income	$ 1,602,371	$ 1,033,307	$ 4,543,226	$ 2,917,111

3. Investments (Details 6)

3. Investments (Details 6) - USD ($)	3 Months Ended		9 Months Ended
3. Investments (Details 6) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Fixed-maturity securities:
Gross realized gains	$ 4,750	$ 5,542	$ 116,961	$ 67,260
Gross realized losses	(77,192)	(56,783)	(560,418)	(167,340)
Total fixed-maturity securities	(72,442)	(51,241)	(443,457)	(100,080)
Equity securities:
Gross realized gains	121,609	229,792	436,859	386,057
Gross realized losses	(106,321)	(107,553)	(370,705)	(139,062)
Total equity securities	15,288	122,239	66,154	246,995
Net realized (losses) gains	(57,154)	70,998	(377,303)	146,915
Equity securities:
Gross gains	288,435	0	0	0
Gross losses	0	0	(141,976)	0
Total equity securities	288,435	0	(141,976)	0
Other investments:
Gross gains	120,744	0	241,444	0
Gross losses	0	0	0	0
Total other investments	120,744	0	241,444	0
? Net unrealized gains	409,179	0	99,468	0
Net gains (losses) on investments	$ 352,025	$ 20,998	$ (277,835)	$ 96,915

3. Investments (Details 7)

3. Investments (Details 7) - USD ($)	9 Months Ended	12 Months Ended
3. Investments (Details 7) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Fair Value-Less than 12 months	$ 106,975,769	$ 26,594,264
Unrealized Losses-Less than 12 Months	(2,700,738)	(591,671)
No. of Positions Held-Less than 12 Months	132	39
Fair Value-12 months or more	19,527,160	18,883,071
Unrealized Losses-12 months or more	(913,896)	(664,780)
No. of Positions Held-12 months or more	34	36
Aggregate Fair Value-Total	126,502,929	45,477,335
Unrealized Losses-Total	(3,614,634)	(1,256,451)
U.S. Treasury Securities and Obligations of U.S. Government [Member]
Fair Value-Less than 12 months	8,139,737
Unrealized Losses-Less than 12 Months	(75,222)
No. of Positions Held-Less than 12 Months	7
Fair Value-12 months or more	0
Unrealized Losses-12 months or more	0
No. of Positions Held-12 months or more	0
Aggregate Fair Value-Total	8,139,737
Unrealized Losses-Total	(75,222)
Fixed Maturity Securities Political Subdivisions Of States Territories And Possessions [Member]
Fair Value-Less than 12 months	3,396,474	1,549,839
Unrealized Losses-Less than 12 Months	(63,596)	(30,814)
No. of Positions Held-Less than 12 Months	7	4
Fair Value-12 months or more	1,122,656	0
Unrealized Losses-12 months or more	(50,343)	0
No. of Positions Held-12 months or more	2	0
Aggregate Fair Value-Total	4,519,130	1,549,839
Unrealized Losses-Total	(113,939)	(30,814)
Fixed Maturity Securities Corporate And Other Bonds Industrial And Miscellaneous [Member]
Fair Value-Less than 12 months	86,846,478	15,036,462
Unrealized Losses-Less than 12 Months	(2,461,966)	(269,857)
No. of Positions Held-Less than 12 Months	108	20
Fair Value-12 months or more	6,950,836	9,113,924
Unrealized Losses-12 months or more	(399,360)	(340,516)
No. of Positions Held-12 months or more	14	17
Aggregate Fair Value-Total	93,797,314	24,150,386
Unrealized Losses-Total	(2,861,326)	(610,373)
Fixed Maturity Securities Residential Mortgage and other asset backed securities [Member]
Fair Value-Less than 12 months	8,593,080	6,956,371
Unrealized Losses-Less than 12 Months	(99,954)	(48,482)
No. of Positions Held-Less than 12 Months	10	6
Fair Value-12 months or more	11,453,668	7,867,572
Unrealized Losses-12 months or more	(464,193)	(189,022)
No. of Positions Held-12 months or more	18	15
Aggregate Fair Value-Total	20,046,748	14,823,943
Unrealized Losses-Total	(564,147)	(237,504)
Fixed Maturity Securities Total Fixed Maturity Securities [Member]
Fair Value-Less than 12 months	106,975,769	23,542,672
Unrealized Losses-Less than 12 Months	(2,700,738)	(349,153)
No. of Positions Held-Less than 12 Months	132	30
Fair Value-12 months or more	19,527,160	16,981,496
Unrealized Losses-12 months or more	(913,896)	(529,538)
No. of Positions Held-12 months or more	34	32
Aggregate Fair Value-Total	126,502,929	40,524,168
Unrealized Losses-Total	$ (3,614,634)	(878,691)
Equity Securities Preferred Stocks [Member]
Fair Value-Less than 12 months		1,605,217
Unrealized Losses-Less than 12 Months		(20,313)
No. of Positions Held-Less than 12 Months		5
Fair Value-12 months or more		1,776,675
Unrealized Losses-12 months or more		(120,712)
No. of Positions Held-12 months or more		3
Aggregate Fair Value-Total		3,381,892
Unrealized Losses-Total		(141,025)
Equity Securities Common Stocks [Member]
Fair Value-Less than 12 months		1,446,375
Unrealized Losses-Less than 12 Months		(222,205)
No. of Positions Held-Less than 12 Months		4
Fair Value-12 months or more		124,900
Unrealized Losses-12 months or more		(14,530)
No. of Positions Held-12 months or more		1
Aggregate Fair Value-Total		1,571,275
Unrealized Losses-Total		(236,735)
Equity Securities Total Equity Securities [Member]
Fair Value-Less than 12 months		3,051,592
Unrealized Losses-Less than 12 Months		(242,518)
No. of Positions Held-Less than 12 Months		9
Fair Value-12 months or more		1,901,575
Unrealized Losses-12 months or more		(135,242)
No. of Positions Held-12 months or more		4
Aggregate Fair Value-Total		4,953,167
Unrealized Losses-Total		$ (377,760)

3. Investments (Details Narrati

3. Investments (Details Narrative) - USD ($)	9 Months Ended
3. Investments (Details Narrative) - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Investments Details Narrative Abstract
Proceeds from the sale and maturity of fixed-maturity securities	$ 17,740,260	$ 8,385,874
Proceeds from the sale of equity securities	$ 5,694,121	$ 2,571,122

4. Fair Value Measurements (Det

4. Fair Value Measurements (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$ 8,139,737
Political subdivisions of States, Territories and Possessions	6,457,771	$ 11,315,443
Corporate and other bonds industrial and miscellaneous	103,764,734	88,141,465
Residential mortgage and other asset backed securities	22,998,293	20,531,348
Total fixed maturities	141,360,535	119,988,256
Equity securities	18,876,690	14,286,198
Total investments	160,237,225	134,274,454
Level 1
U.S. Treasury securities and obligations of U.S. government corporations and agencies	8,139,737
Political subdivisions of States, Territories and Possessions	0	0
Corporate and other bonds industrial and miscellaneous	100,090,703	83,597,300
Residential mortgage and other asset backed securities	0	0
Total fixed maturities	108,230,440	83,597,300
Equity securities	18,876,690	14,286,198
Total investments	127,107,130	97,883,498
Level 2
U.S. Treasury securities and obligations of U.S. government corporations and agencies	0
Political subdivisions of States, Territories and Possessions	6,457,771	11,315,443
Corporate and other bonds industrial and miscellaneous	3,674,031	4,544,165
Residential mortgage and other asset backed securities	22,998,293	20,531,348
Total fixed maturities	33,130,095	36,390,956
Equity securities	0	0
Total investments	33,130,095	36,390,956
Level 3
U.S. Treasury securities and obligations of U.S. government corporations and agencies	0
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

4. Fair Value Measurements (D_2

4. Fair Value Measurements (Details 1) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Hedge fund investments	$ 2,241,444	$ 0
Hedge Fund
Hedge fund investments	$ 2,241,444	$ 0

5. Fair Value of Financial In_3

5. Fair Value of Financial Instruments and Real Estate (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Investment subscription receivable	$ 0	$ 2,000,000
Reinsurance balances payable	1,723,844	2,563,966
Long-term debt, net	29,251,206	29,126,965
Carrying Value [Member]
Fixed-maturity securities held-to-maturity	4,222,352	4,869,808
Cash and cash equivalents	29,893,676	48,381,633
Investment subscription receivable	0	2,000,000
Premiums receivable	13,484,547	13,217,698
Reinsurance receivables	25,018,461	28,519,130
Real estate, net of accumulated depreciation	2,199,140	2,261,829
Reinsurance balances payable	1,723,844	2,563,966
Long-term debt, net	29,251,206	29,126,965
Fair Value [Member]
Fixed-maturity securities held-to-maturity	4,410,764	5,150,076
Cash and cash equivalents	29,893,676	48,381,633
Investment subscription receivable	0	2,000,000
Premiums receivable	13,484,547	13,217,698
Reinsurance receivables	25,018,461	28,519,130
Real estate, net of accumulated depreciation	2,705,000	2,705,000
Reinsurance balances payable	1,723,844	2,563,966
Long-term debt, net	$ 29,251,206	$ 29,126,965

6. Property and Casualty Insu_3

6. Property and Casualty Insurance Activity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Premiums Written [Member]
Direct	$ 38,785,453	$ 32,839,891	$ 107,175,413	$ 89,423,758
Assumed	18	11,910	842	18,203
Ceded	(2,683,699)	(590,482)	(19,409,423)	(20,719,037)
Net	36,101,772	32,261,319	87,766,832	68,722,924
Changes In Unearned Premiums [Member]
Direct	(4,435,174)	(4,407,894)	(9,930,503)	(8,456,690)
Assumed	698	(165)	3,762	8,162
Ceded	(4,133,389)	(6,338,852)	(3,363,953)	(5,436,513)
Net	(8,567,865)	(10,746,911)	(13,290,694)	(13,885,041)
Premiums Earned [Member]
Direct	34,350,279	28,431,997	97,244,910	80,967,068
Assumed	716	11,745	4,604	26,365
Ceded	(6,817,088)	(6,929,334)	(22,773,376)	(26,155,550)
Net	$ 27,533,907	$ 21,514,408	$ 74,476,138	$ 54,837,883

6. Property and Casualty Insu_4

6. Property and Casualty Insurance Activity (Details 1) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Property And Casualty Insurance Activity
Balance at beginning of period	$ 48,799,622	$ 41,736,719
Less reinsurance recoverables	(16,748,908)	(15,776,880)
Net balance, beginning of period	32,050,714	25,959,839
Incurred related to:
Current year	41,611,658	23,071,466
Prior years	127,465	(250,225)
Total incurred	41,739,123	22,821,241
Paid related to:
Current year	23,404,909	12,955,928
Prior years	12,160,419	8,176,715
Total paid	35,565,328	21,132,643
Net balance at end of period	38,224,509	27,648,437
Add reinsurance recoverables	15,718,448	14,642,360
Balance at end of period	$ 53,942,957	$ 42,290,797

6. Property and Casualty Insu_5

6. Property and Casualty Insurance Activity (Details 2)	9 Months Ended
6. Property and Casualty Insurance Activity (Details 2)	Sep. 30, 2018USD ($)Number
2,009
2,009	$ 4,403
IBNR	$ 0
Cumulative Number of Reported Claims \| Number	1,136
2,010
2,009	$ 4,254
2,010	5,598
IBNR	$ (1)
Cumulative Number of Reported Claims \| Number	1,616
2,011
2,009	$ 4,287
2,010	5,707
2,011	7,603
IBNR	$ 2
Cumulative Number of Reported Claims \| Number	1,913
2,012
2,009	$ 4,384
2,010	6,429
2,011	7,678
2,012	9,539
IBNR	$ 19
Cumulative Number of Reported Claims \| Number	4,702
2,013
2,009	$ 4,511
2,010	6,623
2,011	8,618
2,012	9,344
2,013	10,728
IBNR	$ 132
Cumulative Number of Reported Claims \| Number	1,560
2,014
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	$ 309
Cumulative Number of Reported Claims \| Number	2,129
2,015
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	$ 642
Cumulative Number of Reported Claims \| Number	2,546
2,016
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	$ 1,646
Cumulative Number of Reported Claims \| Number	2,860
2,017
2,009	$ 4,690
2,010	6,840
2,011	9,144
2,012	10,790
2,013	10,061
2,014	14,564
2,015	22,148
2,016	24,941
2,017	31,605
IBNR	$ 3,376
Cumulative Number of Reported Claims \| Number	3,322
2,018
2,009	$ 4,670
2,010	6,785
2,011	9,147
2,012	10,770
2,013	10,000
2,014	14,954
2,015	22,186
2,016	24,256
2,017	32,146
2,018	39,653
Total	174,567
IBNR	$ 6,386
Cumulative Number of Reported Claims \| Number	2,953

6. Property and Casualty Insu_6

6. Property and Casualty Insurance Activity (Details 3)	Sep. 30, 2018USD ($)
2,009	$ 4,659
2,010	6,778
2,011	8,717
2,012	10,302
2,013	8,834
2,014	13,508
2,015	19,473
2,016	20,098
2,017	23,499
2,018	22,223
Total	138,091
Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented	36,476
All outstanding liabilities before 2007, net of reinsurance	199
Liabilities for claims and claim adjustment expenses, net of reinsurance	36,675
2,009
2,009	2,298
2,010
2,009	3,068
2,010	2,566
2,011
2,009	3,607
2,010	3,947
2,011	3,740
2,012
2,009	3,920
2,010	4,972
2,011	5,117
2,012	3,950
2,013
2,009	4,134
2,010	5,602
2,011	6,228
2,012	5,770
2,013	3,405
2,014
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
2,009	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
2,009	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
2,009	4,487
2,010	6,772
2,011	8,702
2,012	10,236
2,013	8,407
2,014	11,770
2,015	18,266
2,016	19,001
2,017	$ 16,704

6. Property and Casualty Insu_7

6. Property and Casualty Insurance Activity (Details 4) $ in Thousands	Sep. 30, 2018USD ($)
Property And Casualty Insurance Activity Details 4Abstract
Liabilities for allocated loss and loss adjustment expenses, net of reinsurance	$ 36,675
Total reinsurance recoverable on unpaid losses	15,718
Unallocated loss adjustment expenses	1,550
Total gross liability for loss and LAE reserves	$ 53,943

6. Property and Casualty Insu_8

6. Property and Casualty Insurance Activity (Details 5) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Personal Lines [Member]
Percent ceded	10.00%	20.00%	40.00%
Risk retained	$ 900,000	$ 800,000	$ 500,000
Losses per occurrence subject to quota share reinsurance coverage	1,000,000	1,000,000	833,333
Excess of loss coverage above quota share coverage	9,000,000	9,000,000	3,666,667
In excess of	1,000,000	1,000,000	833,333
Total reinsurance coverage per occurrence	9,100,000	9,200,000	4,000,000
Losses per occurrence subject to reinsurance coverage	$ 10,000,000	$ 10,000,000	$ 4,500,000
Expiration date	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2017
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	4,900,000
Losses per occurrence subject to reinsurance coverage	$ 5,000,000	$ 5,000,000	$ 5,000,000
Expiration date	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Commercial Lines [Member]
Risk retained	$ 750,000	$ 750,000	$ 500,000
Excess of loss coverage above quota share coverage	3,750,000	3,750,000	4,000,000
In excess of	750,000	750,000	500,000
Total reinsurance coverage per occurrence	3,750,000	3,750,000	4,000,000
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%	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	4,900,000
Losses per occurrence subject to reinsurance coverage	$ 5,000,000	$ 5,000,000	$ 5,000,000
Expiration date	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Catastrophe [Member]
Initial loss subject to personal lines quota share treaty	$ 5,000,000	$ 5,000,000	$ 5,000,000
Risk retained per catastrophe occurrence	4,000,000	4,000,000	3,000,000
Catastrophe loss coverage in excess of quota share coverage	$ 445,000,000	$ 315,000,000	$ 247,000,000
Reinstatement premium protection	Yes	Yes	Yes

6. Property and Casualty Insu_9

6. Property and Casualty Insurance Activity (Details 6)	12 Months Ended
6. Property and Casualty Insurance Activity (Details 6)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Personal Lines [Member] \| Initial $833,333 [Member]
Risk Retained			$ 500,000
Personal Lines [Member] \| $833,333 - $4,500,000 [Member]
Risk Retained			None3
Personal Lines [Member] \| Over $4,500,000 [Member]
Risk Retained			100%
Personal Lines [Member] \| Initial $1,000,000 [Member]
Risk Retained	$ 900,000	$ 800,000
Personal Lines [Member] \| $1,000,000 - $10,000,000 [Member]
Risk Retained	None2	None2
Personal Lines [Member] \| Over $10,000,000 [Member]
Risk Retained	100%	100%
Personal Umbrella [Member] \| Initial $1,000,000 [Member]
Risk Retained	$ 100,000	$ 100,000	$ 100,000
Personal Umbrella [Member] \| $1,000,000 - $5,000,000 [Member]
Risk Retained	None	None	None
Personal Umbrella [Member] \| Over $5,000,000 [Member]
Risk Retained	100%	100%	100%
Commercial Lines [Member] \| Over $4,500,000 [Member]
Risk Retained	100%	100%	100%
Commercial Lines [Member] \| Initial $500,000 [Member]
Risk Retained			$ 500,000
Commercial Lines [Member] \| $500,000 - $4,500,000 [Member]
Risk Retained			None3
Commercial Lines [Member] \| Initial $750,000 [Member]
Risk Retained	$ 750,000	$ 750,000
Commercial Lines [Member] \| $750,000 - $4,500,000 [Member]
Risk Retained	None3	None3
Commercial Umbrella [Member] \| Initial $1,000,000 [Member]
Risk Retained	$ 100,000	$ 100,000	$ 100,000
Commercial Umbrella [Member] \| $1,000,000 - $5,000,000 [Member]
Risk Retained	None	None	None
Commercial Umbrella [Member] \| Over $5,000,000 [Member]
Risk Retained	100%	100%	100%
Catastrophe [Member] \| Initial $5,000,000 [Member]
Risk Retained	$ 4,500,000	$ 4,000,000	$ 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%
Catastrophe [Member] \| $5,000,000 - $320,000,000 [Member]
Risk Retained		None
Catastrophe [Member] \| Over $320,000,000 [Member]
Risk Retained		100%
Catastrophe [Member] \| $5,000,000 - $450,000,000 [Member]
Risk Retained	None
Catastrophe [Member] \| Over $450,000,000 [Member]
Risk Retained	100%

6. Property and Casualty Ins_10

6. Property and Casualty Insurance Activity (Details 7) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Property And Casulty Insurance Activity Details 2Abstract
Provisional ceding commissions earned	$ 1,255,034	$ 1,921,457	$ 5,468,314	$ 8,689,803
Contingent ceding commissions earned	(210,505)	(203,847)	(1,037,459)	(481,803)
Total commissions earned	$ 1,044,529	$ 1,717,610	$ 4,430,855	$ 8,208,000

6. Property and Casualty Ins_11

6. Property and Casualty Insurance Activity (Details Narrative)	9 Months Ended
	Sep. 30, 2018USD ($)Number	Sep. 30, 2017USD ($)	Dec. 31, 2017Number
Property And Casulty Insurance Activity Details Narrative Abstract
Incurred Losses and Loss Adjustment Expenses are net of reinsurance recoveries under reinsurance contracts	$ 11,668,527	$ 8,503,237
Prior year loss development	$ 127,465	$ (250,225)
Net contingent ceding commissions payable \| Number	1,205,000		1,850,000

7. Debt (Details)

7. Debt (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Long-term debt, net	$ 29,251,206	$ 29,126,965
Issuance costs
Long-term debt, net	(610,917)	(710,826)
5.50% Senior Unsecured Notes
Long-term debt, net	30,000,000	30,000,000
Discount
Long-term debt, net	$ (137,877)	$ (162,209)

8. Stockholders' Equity (Detail

8. Stockholders' Equity (Details)	9 Months Ended
8. Stockholders' Equity (Details)	Sep. 30, 2018USD ($)$ / sharesshares
Number of Options Outstanding, Beginning \| shares	341,150
Number of Options Granted \| shares	0
Number of Options Exercised \| shares	(175,250)
Number of Options Forfeited \| shares	0
Number of Options Outstanding, Ending \| shares	165,900
Number of Options Vested and Exercisable \| shares	155,900
Weighted Average Exercise Price Outstanding, Beginning	$ 6.69
Weighted Average Exercise Price Granted	0
Weighted Average Exercise Price Exercised	6.32
Weighted Average Exercise Price Forfeited	0
Weighted Average Exercise Price Outstanding, Ending	7.09
Weighted Average Exercise Price Vested and Exercisable	$ 7.01
Weighted Average Remaining Contractual Life (in years) Outstanding Beginning	1 year 8 months 1 day
Weighted Average Remaining Contractual Life (in years) Outstanding Ending	1 year 2 months 19 days
Weighted Average Remaining Contractual Life (in years) Vested and Exercisable	1 year 1 month 20 days
Aggregate Intrinsic Value Outstanding, Beginning \| $	$ 4,131,028
Aggregate Intrinsic Value Granted	$ 0
Aggregate Intrinsic Value Exercised \| $	$ 2,364,143
Aggregate Intrinsic Value Forfeited/canceled	$ 0
Aggregate Intrinsic Value Outstanding, Ending \| $	$ 1,976,245
Aggregate Intrinsic Value Vested and Exercisable \| $	$ 1,869,508
Restricted Stock
Number of Options Outstanding, Beginning \| shares	47,337
Number of Options Granted \| shares	90,004
Number of Options Exercised \| shares	(15,752)
Number of Options Forfeited \| shares	(664)
Number of Options Outstanding, Ending \| shares	120,925
Weighted Average Exercise Price Outstanding, Beginning	$ 14.35
Weighted Average Exercise Price Granted	19.09
Weighted Average Exercise Price Exercised	14.07
Weighted Average Exercise Price Forfeited	15
Weighted Average Exercise Price Outstanding, Ending	$ 17.91
Aggregate Intrinsic Value Outstanding, Beginning \| $	$ 679,180
Aggregate Intrinsic Value Granted	$ 1,717,958
Aggregate Intrinsic Value Exercised \| $	$ (221,613)
Aggregate Intrinsic Value Forfeited/canceled	$ (9,960)
Aggregate Intrinsic Value Outstanding, Ending \| $	$ 2,165,565

8. Stockholders' Equity (Deta_2

8. Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
8. Stockholders' Equity (Details Narrative) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Dividends Declared			$ 3,204,813	$ 2,363,993
Stock-based compensation expense related to stock options is net of estimated forfeitures	$ 5,000	$ 1,000	$ 5,000	$ 35,000
Closing price of common stock	$ 19		$ 19
Total intrinsic value of options exercised	$ 2,364,143		$ 2,364,143
Unamortized compensation cost related to unvested stock option awards	$ 2,000		$ 2,000
Unamortized compensation cost vesting period			5 months 8 days
2014 Plan [Member]
Shares reserved	463,034		463,034

9. Income Taxes (Details)

9. Income Taxes (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Deferred tax asset:
Net operating loss carryovers	$ 87,018	$ 103,655
Claims reserve discount	357,793	300,005
Unearned premium	3,048,775	2,431,301
Deferred ceding commission revenue	528,668	895,947
Net unrealized loss of securities - available for sale	537,678	0
Other	329,273	382,522
Total deferred tax assets	4,889,205	4,113,430
Deferred tax liability:
Investment in KICO	759,543	759,543
Deferred acquisition costs	3,595,882	3,117,920
Intangibles	158,550	212,100
Depreciation and amortization	253,227	328,735
Net unrealized appreciation of securities - available for sale	0	295,474
Total deferred tax liabilities	4,767,202	4,713,772
Net deferred income tax asset (liability)	$ 122,003	$ (600,342)

9. Income Taxes (Details 1)

9. Income Taxes (Details 1) - USD ($)	9 Months Ended
9. Income Taxes (Details 1) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Income Taxes Details 2Abstract
State only	$ 1,146,036	$ 824,996
Valuation allowance	(1,061,118)	(725,541)
State only, net of valuation allowance	84,918	99,455
Amount subject to Annual Limitation, Federal only	2,100	4,200
Total deferred tax asset from net operating loss carryovers	$ 87,018	$ 103,655
State only expiration date	31-Dec-38
Amount subject to Annual Limitation, Federal only expiration date	31-Dec-19

9. Income Taxes (Details Narrat

9. Income Taxes (Details Narrative) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Income Taxes Details Narrative Abstract
Net operating loss carryover	$ 17,631,000	$ 12,692,000

10. Earnings Per Common Share_2

10. Earnings Per Common Share (Details) - USD ($)	3 Months Ended		9 Months Ended
10. Earnings Per Common Share (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Earnings Per Common Share
Weighted average number of shares outstanding	10,681,329	10,626,242	10,672,084	10,307,689
Effect of dilutive securities, common share equivalents, Stock options	$ 98,749	$ 197,133	$ 100,628	$ 189,211
Effect of dilutive securities, common share equivalents, Restricted stock awards	$ 11,045	$ 9,364	$ 7,878	$ 3,372
Weighted average number of shares outstanding, used for computing diluted earnings per share	10,791,123	10,832,739	10,780,590	10,500,272

11. Commitments and Contingen_3

11. Commitments and Contingencies (Details)	Sep. 30, 2018USD ($)
Notes to Financial Statements
2018 (three months)	$ 41,379
2,019	169,861
2,020	175,806
2,021	181,959
2,022	188,328
Thereafter	244,064
Total	$ 1,001,397

11. Commitments and Contingen_4

11. Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Notes to Financial Statements
Lease and rental expenses	$ 41,342	$ 41,342	$ 124,026	$ 124,026