Income Taxes

The following table summarizes the provision for income taxes:



	Year Ended December 31,
	2011		2010		2009
Federal:
Current	4,864		(843	)	868
Deferred	(656	)	423		1,058
Provision for (benefit from) Federal income tax expense	4,208		(420	)	1,926

State:
Current	664		8		148
Deferred	56		(71	)	196
Provision for (benefit from) State income tax expense	720		(63	)	344
Provision for (benefit from) income taxes	4,928		(483	)	2,270

The actual income tax expense differs from the expected income tax expense computed by applying the combined applicable effective federal and state tax rates to income before the provision for income taxes as follows:



	Year Ended December 31,
	2011		2010		2009
Expected income tax expense (benefit) at federal rate	4,425		(479	)	2,151
State tax expense (benefit), net of federal deduction benefit	472		(71	)	287
Dividend received deduction	(38	)	(60	)	(83	)
Other, net	69		127		(85	)
Reported income tax expense (benefit)	4,928		(483	)	2,270

Deferred income taxes, which is included in other assets or other liabilities as appropriate, reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The table below summarizes the significant components of our net deferred tax asset:



	December 31,
	2011		2010
Deferred tax assets:
Unearned premiums	4,356		2,998
Assessments	4		179
Tax-related discount on loss reserve	726		499
Bad debt expense	30		23
Other-than-temporary impairment	105		140
Acquired deferred tax asset	172		172
Other	304		178
Total deferred tax assets	5,697		4,189
Deferred tax liabilities:
Unrealized gain	(1,470	)	136
Deferred acquisitions costs	(4,285	)	(3,264	)
Capitalized software	(297	)	(323	)
Other	(104	)	(192	)
Total deferred tax liabilities	(6,156	)	(3,643	)
Less: valuation allowance	(172	)	(172	)
Net deferred tax asset (liability)	(631	)	374

In assessing the net realizable value of deferred tax assets, we consider whether it is more likely than not that we will not realize some portion or all of the deferred tax assets. The ultimate realization of deferred tax assets depends upon the generation of future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

The statute of limitations related to our consolidated Federal income tax returns and our Florida income tax returns expired for all tax years up to and including 2007; therefore, only the 2008 through 2011 tax years remain subject to examination by taxing authorities. No taxing authorities are currently examining any of our federal or state income tax returns.

As of December 31, 2011, we have not taken any uncertain tax positions with regard to our tax returns.