Reinsurance
 12 Months Ended
Dec. 31, 2015
Reinsurance [Abstract]  
Reinsurance [Text Block]
REINSURANCE
As is customary in the insurance industry, the Company reinsures portions of certain insurance policies it writes, thereby providing a greater diversification of risk and minimizing exposure on larger risks. The Company remains contingently at risk with respect to any reinsurance ceded and would incur an additional loss if an assuming company were unable to meet its obligation under the reinsurance treaty.
The Company monitors the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Letters of credit are maintained for any unauthorized reinsurer to cover ceded unearned premium and ceded unpaid loss and loss adjustment expenses balances.
For most of the non-standard automobile business, the liability is limited to the minimum statutory liability limits, which are typically not greater than $50,000 per occurrence, depending on the state. The Company's reinsurance includes excess of loss reinsurance to reduce its exposure to individual losses as well as losses related to catastrophic events which may simultaneously affect many of our policyholders. During 2015 and 2014, the Company entered into an excess of loss reinsurance arrangement to reduce its exposure to losses related to certain catastrophic events which may occur in any of the states in which the Company writes non-standard automobile business.
Ceded premiums, loss and loss adjustments expenses, and commissions as of and for the years ended December 31, 2015 and 2014 are summarized as follows:
(in thousands)
 
Years ended December 31,
 
 
 
2015

 
2014

Ceded premiums written
 
$
165


$
(3,695
)
Ceded premiums earned
 
166


1,104

Ceded loss and loss adjustment expenses
 
(571
)

655

Ceded unpaid loss and loss adjustment expenses
 
1,207


3,203

Ceded unearned premiums
 
7


533

Ceding commissions
 
(138
)

5


 
The maximum amount of return commission, which would have been due to reinsurers if they or the Company had canceled all of the Company's reinsurance, with the return of the unearned premium, is as follows at December 31, 2015:
(in thousands)
 
 
 
December 31, 2015

 
 
Unearned Premium Reserve

 
Commission Equity

Assumed
 
$
5,041


$
776

Ceded
 
7


—

Net
 
$
5,034

 
$
776


The amounts of assumed premiums written were $19.0 million and $20.1 million for the years ended December 31, 2015 and 2014, respectively. The amounts of assumed premiums earned were $19.8 million and $19.9 million for the years ended December 31, 2015 and 2014, respectively.