LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES (Tables)

12 Months Ended

Dec. 31, 2013

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Schedule of reconciliation of beginning and ending reserves for losses and settlement expenses

The following table sets forth a reconciliation of beginning and ending reserves for losses and settlement expenses of the Company. Amounts presented are on a net basis, with a reconciliation of beginning and ending reserves to the gross amounts presented in the consolidated financial statements.



	Year ended December 31,
	2013			2012			2011
Gross reserves at beginning of year	$	583,096,965		$	593,300,247		$	556,140,956
Less re-valuation due to foreign currency exchange rates	(1,569		)	(386		)	(392,276		)
Less ceded reserves at beginning of year	31,389,594			36,842,204			29,062,553
Net reserves at beginning of year	551,708,940			556,458,429			527,470,679

Incurred losses and settlement expenses related to:
Current year	346,072,934			329,120,220			376,073,620
Prior years	(12,785,485		)	(25,732,505		)	(33,099,183		)
Total incurred losses and settlement expenses	333,287,449			303,387,715			342,974,437

Paid losses and settlement expenses related to:
Current year	137,998,060			145,102,723			167,793,377
Prior years	167,268,783			163,034,481			146,193,310
Total paid losses and settlement expenses	305,266,843			308,137,204			313,986,687

Net reserves at end of year	579,729,546			551,708,940			556,458,429
Plus ceded reserves at end of year	30,118,493			31,389,594			36,842,204
Plus re-valuation due to foreign currency exchange rates	332,811			(1,569		)	(386		)
Gross reserves at end of year	$	610,180,850		$	583,096,965		$	593,300,247

Summary of the approximation of the implied favorable development that had an impact on earnings

The following table presents the reported amounts of favorable development experienced on prior years’ reserves and the portion of the reported development amounts that resulted solely from changes in the allocation of bulk reserves between the current and prior accident years in the property and casualty insurance segment (no impact on earnings). The result is an approximation of the implied amounts of favorable development that had an impact on earnings.



	Year ended December 31,
	2013			2012			2011
Reported amount of favorable development experienced on prior years' reserves	$	(12,785,485	)	$	(25,732,505	)	$	(33,099,183	)
Adjustment for (adverse) favorable development included in the reported development amount that had no impact on earnings	6,526,000			(4,551,000		)	1,396,000
Approximation of the implied amount of favorable development that had an impact on earnings	$	(6,259,485	)	$	(30,283,505	)	$	(31,703,183	)

- Definition

Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims.

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