Deferred Policy Acquisition Costs

12 Months Ended

Dec. 31, 2011

Deferred Policy Acquisition Costs [Abstract]

4.	Deferred Policy Acquisition Costs

The Company incurs certain costs related to acquiring policies. These costs are deferred and expensed over the life of the related policies. Major categories of the Company's deferred policy acquisition costs are summarized as follows:


	December 31,
	2011		2010
	(In thousands)
Agents' commissions	$	11,745	$	11,005
Premium taxes		3,569		2,954
Deferred underwriting expenses		3,442		3,441

Total deferred policy acquisition costs	$	18,756	$	17,400

The following summarizes the activity in the deferred policy acquisition costs:


	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Balance, beginning of year	$	17,400		$	18,128		$	20,289
Policy acquisition costs deferred		40,802			32,442			34,967
Amortization expense during the year		(39,446	)		(33,170	)		(37,128	)

Balance, end of year	$	18,756		$	17,400		$	18,128

- Definition

Disclosure of accounting policy for capitalizing costs incurred to write or acquire insurance contracts, the basis for and methodology for capitalizing such costs, the accounting for such deferred acquisition costs (DAC) when modifications or internal replacements of related insurance contracts occur and the effect on results of operations, and the methodology and amount of amortization. This disclosure addresses the nature, type, and amount of capitalized costs incurred to write or acquire insurance contracts.

+ References+ Details