Note 4 - Deferred Policy Acquisition Costs

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Deferred Policy Acquisition Costs [Text Block]

4

. Deferred Policy Acquisition Costs

The Company defers costs incurred which are incremental and directly related to the successful acquisition of new or renewal insurance business, net of corresponding amounts of ceded reinsurance commissions. Net deferred policy acquisition costs are amortized and charged to expense in proportion to premium earned over the estimated policy term. The Company anticipates that its deferred policy acquisition costs will be fully recoverable and there were no premium deficiencies for the three and nine months ended September 30, 2015 and 2014. The activity in deferred policy acquisition costs, net of reinsurance transactions, is as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Balance at beginning of period	$	7,659		$	7,004		$	5,679		$	5,747
Deferred policy acquisition costs		8,528			4,276			15,742			12,283
Amortization of policy acquisition costs		(4,605	)		(3,738	)		(9,839	)		(10,488	)
Net change		3,923			538			5,903			1,795
Balance at end of period	$	11,582		$	7,542		$	11,582		$	7,542