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Commitments and Contingencies
 6 Months Ended
Jun. 30, 2012
Commitments and Contingencies [Abstract]  
Commitments and Contingencies
11. Commitments and Contingencies

Employment Agreements

The Company has employment agreements with certain employees which are in effect as of June 30, 2012. The agreements provide for minimum salaries, which may be subject to annual percentage increases, and non-equity incentive compensation for certain executives based on pre-tax income or net income levels attained by the Company. The agreements also provide for payments contingent upon the occurrence of certain events.

 

The following table presents the amount of commitments and estimated contingent payments the Company is obligated to pay in the form of salaries and non-equity incentive compensation under the agreements with named executive officers (in thousands):

 

                         
    As of June 30, 2012  
    Salaries     Non-equity
incentive
compensation		     Equity
compensation		  

Commitments

   $ 7,328     $ 3,772       —    
       

Contingent payments upon certain events:

                        

Termination

   $ 4,374     $ 2,823       —    

Change in control

   $ 13,634     $ 5,016     $ 260  

Death

   $ 4,924     $ 2,671       —    

Disability

   $ 3,278     $ 1,760       —    

 

Litigation

Certain lawsuits have been filed against the Company. These lawsuits involve matters that are routine litigation incidental to the claims aspect of the Company’s business for which estimated losses are included in Unpaid Losses and Loss Adjustment Expenses in the Company’s Condensed Consolidated Financial Statements. In the opinion of management, these lawsuits are not material individually or in the aggregate to the Company’s financial position or results of operations. Accruals made or assessments of materiality of disclosure related to probable or possible losses do not consider any anticipated insurance proceeds.

Loss Contingencies

In July 2012, a dispute arose between the Insurance Entities and one of their reinsurers over certain provisions of a reinsurance contract that expired May 31, 2012. While the Company believes it has meritorious claims in the dispute, the ultimate resolution of the matter, the date of which is not yet determinable, could result in a pre-tax loss ranging from zero to $5.4 million.