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Income Taxes (Tables) | 6 Months Ended
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Jun. 30, 2012
Income Taxes [Abstract] |
Deferred income tax effects of temporary differences | Deferred income taxes represent the temporary differences between the GAAP and tax basis of the Company’s assets and liabilities. The tax effects of temporary differences are as follows for the periods presented (in thousands):
|  | As of June 30, |  |  | As of December 31, |
|  | 2012 |  |  | 2011 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Unearned premiums |  | $ | 12,276 |  |  | $ | 9,007 |
Advanced premiums |  |  | 1,918 |  |  |  | 1,451 |
Unpaid losses and LAE |  |  | 2,935 |  |  |  | 3,139 |
Stock-based compensation |  |  | 4,377 |  |  |  | 4,341 |
Accrued wages |  |  | 833 |  |  |  | 958 |
Allowance for uncollectible receivables |  |  | 190 |  |  |  | 276 |
Additional tax basis of securities |  |  | 482 |  |  |  | 2,407 |
Unrealized losses on investments |  |  | 5,114 |  |  |  | 6,425 |
Total deferred income tax assets |  |  | 28,125 |  |  |  | 28,004 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Deferred policy acquisition costs, net |  |  | (6,845 | ) |  |  | (5,013 | )
Total deferred income tax liabilities |  |  | (6,845 | ) |  |  | (5,013 | )
Net deferred income tax asset |  | $ | 21,280 |  |  | $ | 22,991 |
Reconciles the statutory federal income tax rate to the Company' s effective tax rate | The following table reconciles the statutory federal income tax rate to the Company’s effective tax rate for the periods presented:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Statutory federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Increases resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Disallowed meals & entertainment |  |  | 0.2 | % |  |  | 0.1 | % |  |  | 0.2 | % |  |  | 0.1 | %
Disallowed compensation |  |  | 1.0 | % |  |  | 2.0 | % |  |  | 0.7 | % |  |  | 1.2 | %
State income tax, net of federal tax benefit (1) |  |  | 3.6 | % |  |  | 3.6 | % |  |  | 3.6 | % |  |  | 3.6 | %
Other, net (2) |  |  | 0.3 | % |  |  | 1.8 | % |  |  | 0.1 | % |  |  | 0.8 | %
Effective tax rate |  |  | 40.1 | % |  |  | 42.5 | % |  |  | 39.6 | % |  |  | 40.7 | %
(1) | Included in income tax is State of Florida income tax at a statutory tax rate of 5.5%.
(2) | Other, net, includes estimated penalties and interest of 1.8% and 0.7% for the three and six months ended June 30, 2011, respectively, regarding an underpayment of estimated taxes in 2011.

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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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