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Income Taxes | 12 Months Ended
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Dec. 31, 2014
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 12 – INCOME TAXES The following table reconciles the statutory federal income tax rate to the Company’s effective tax rate for the periods presented:
|  | For the years ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
Statutory federal income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Increases (decreases) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Disallowed meals & entertainment |  |  | 0.4 | % |  |  | 0.4 | % |  |  | 0.6 | %
Disallowed compensation |  |  | 4.2 | % |  |  | 2.3 | % |  |  | 3.2 | %
State income tax, net of federal tax benefit (1) |  |  | 3.6 | % |  |  | 3.6 | % |  |  | 3.6 | %
Other, net |  |  | (0.4 | %) |  |  | — |  |  |  | (0.1 | %)
Effective tax rate |  |  | 42.8 | % |  |  | 41.3 | % |  |  | 42.3 | %
(1) | Included in income tax is Florida income tax at a statutory rate of 5.5%.
Deferred income taxes represent the temporary differences between the U.S. GAAP and tax basis of the Company’s assets and liabilities. The tax effects of temporary differences are as follows as of the dates presented (in thousands):
|  | As of December 31, |
|  | 2014 |  |  | 2013 |
Deferred income tax assets: |  |  |  |  |  |  |  |
Unearned premiums |  | $ | 15,835 |  |  | $ | 10,976 |
Advanced premiums |  |  | 1,332 |  |  |  | 1,742 |
Unpaid losses and LAE |  |  | 1,654 |  |  |  | 2,598 |
Regulatory assessments |  |  | 111 |  |  |  | 345 |
Share-based compensation |  |  | 520 |  |  |  | 1,459 |
Accrued wages |  |  | 539 |  |  |  | 255 |
Allowance for uncollectible receivables |  |  | 138 |  |  |  | 172 |
Additional tax basis of securities |  |  | 53 |  |  |  | 45 |
Capital loss carryforwards |  |  | 918 |  |  |  | 1,149 |
Other comprehensive income |  |  | 1,152 |  |  |  | — |
Total deferred income tax assets |  |  | 22,252 |  |  |  | 18,741 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Deferred policy acquisition costs, net |  |  | (9,898 | ) |  |  | (6,133 | )
Prepaid expenses |  |  | (504 | ) |  |  | (548 | )
Other comprehensive income |  |  | — |  |  |  | (9 | )
Total deferred income tax liabilities |  |  | (10,402 | ) |  |  | (6,690 | )
Net deferred income tax asset |  | $ | 11,850 |  |  | $ | 12,051 |
A valuation allowance is deemed unnecessary as of December 31, 2014 and 2013, respectively, because management believes it is probable that the Company will generate taxable income sufficient to realize the tax benefits associated with the net deferred income tax asset shown above in the near future. Liabilities for unrecognized tax benefits, if any, are recorded in accordance with issued FASB guidance on Accounting for Uncertainty in Income Taxes. The Company recognizes accruals for interest and penalties, if any, related to unrecognized tax benefits in income tax expense. The Company filed a consolidated federal income tax return for the fiscal years ended December 31, 2013, 2012 and 2011 and intends to file the same for the year ended December 31, 2014. The tax allocation agreements between the Company and the Insurance Entities provide that they will incur income taxes based on a computation of taxes as if they were stand-alone taxpayers. The computations are made utilizing the financial statements of the Insurance Entities prepared on a statutory basis of accounting and prior to consolidating entries which include the conversion of certain balances and transactions of the statutory financial statements to a U.S. GAAP basis. Tax years that remain open for purposes of examination of the Company’s income tax liability due to taxing authorities, include the years ended December 31, 2013, 2012 and 2011. However, there is currently an IRS examination underway related to the loss carryback of realized losses from securities sold during 2012 applied to the 2009 tax year.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: 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 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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