Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

COMMITMENTS AND CONTINGENCIES

a) Litigation

We are involved in claims-related legal actions arising in the ordinary course of business. We accrue amounts resulting from claims-related legal actions in unpaid losses and loss adjustment expenses during the period that we determine an unfavorable outcome becomes probable and we can estimate the amounts. Management makes revisions to our estimates based on its analysis of subsequent information that we receive regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages, and (iv) trends in general economic conditions, including the effects of inflation.

b) Other

Our note payable, as amended, requires us to meet certain covenants, the violation of which could cause an event of default. Among others, these covenants include maintaining statutory surplus in UPC equal to or greater than $50,000 less repayments of principal on the note, catastrophic losses paid since the note incepted and any deferred acquisition costs related to Florida policies; refraining from the payment of dividends when principal and/or interest payments related to the note are past due; and maintaining a minimum writing ratio. We did not contribute capital to UPC during the three-month period ended September 30, 2011, but we contributed $1,865 of capital to UPC during the three-month period ended September 30, 2010. During the nine-month periods ended September 30, 2011 and 2010, we contributed $3,800 and $4,865 of capital to UPC, respectively. We were in compliance with the terms of the covenants at September 30, 2011.