Deferred Policy Acquisition Costs

3 Months Ended

Mar. 31, 2017

Deferred Policy Acquisition Costs Disclosures [Abstract]

Deferred Policy Acquisition Costs

6. Deferred Policy Acquisition Costs

Deferred policy acquisition costs (“DPAC”) consist primarily of commissions, premium taxes, assessments and other policy processing fees incurred which are related to successful efforts to acquire new or renewal insurance contracts. Acquisition costs deferred on insurance products are amortized over the period in which the related revenues are earned. Costs associated with unsuccessful efforts or costs that cannot be tied directly to a successful policy acquisition are expensed as incurred.

DPAC as well as the related amortization expense associated with DPAC for the three months ended March 31, 2017 and 2016, is as follows:

	Three months ended March 31,
	2017			2016
Balance, January 1, net	$	4,389		$	4,030
Additions		2,559			1,637
Amortization		(2,522	)		(1,990	)
Balance, March 31, net	$	4,426		$	3,677