10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

 QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

 TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ________________ to ________________

Commission file number 333-189686

HOMEOWNERS OF AMERICA HOLDING CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	57-1219329
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1333 Corporate Drive, Suite 325, Irving, TX 75038

(Address of principal executive offices)(Zip Code)

(972) 607-4241

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  Accelerated filer  Non-accelerated filer  Smaller Reporting Company 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   No 

The number of shares of the registrant's common stock, $0.0001 par value, outstanding as of May 13, 2015 was 16,397,125.

INDEX

		Page No.
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Consolidated Balance Sheets at March 31, 2015 (unaudited) and December 31, 2014	1
	Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2015 and 2014	2
	Consolidated Statements of Comprehensive Income (unaudited) for the three months ended March 31, 2015 and 2014	3
	Consolidated Statement of Stockholders' Equity (unaudited) for the three months ended March 31, 2015	4
	Consolidated Statement of Stockholders' Equity (unaudited) for the three months ended March 31, 2014	5
	Consolidated Statement of Cash Flows (unaudited) for the three months ended March 31, 2015 and 2014	6
	Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	18
Item 4.	Controls and Procedures	18
PART II	OTHER INFORMATION	18
Item 1.	Legal Proceedings	18
Item 1A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 6.	Exhibits	19
SIGNATURES		20

All other items called for by the instructions to Form 10-Q have been omitted because the items are not applicable or the relevant information is not material.

i

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

Homeowners of America Holding Corporation

CONSOLIDATED BALANCE SHEETS

March 31, 2015 and December 31, 2014

	March 31, 2015			December 31, 2014
	(Unaudited)
Assets:
Cash and cash equivalents	$	6,920,199		$	5,648,278
Short-term investments		546,881			1,231,881
Restricted cash and investments		2,760,000			3,790,000
Restricted fixed-maturity securities, available-for-sale, at fair value (amortized cost $539,602 as of March 31, 2015 and $539,558 as of December 31, 2014 )		542,824			539,654
Fixed-maturity securities, available-for-sale, at fair value (amortized cost $3,787,960 as of March 31, 2015 and $3,827,268 as of December 31, 2014)		3,791,487			3,827,245
Long-term investments		7,840,000			3,430,000
Accrued investment income		68,414			55,908
Due and deferred premiums		4,355,246			5,089,131
Balance due from reinsurers		55,805,474			54,157,528
Property, equipment and software, net		310,902			344,495
Deferred policy acquisition costs		7,861,318			7,897,806
Prepaid expenses and other		311,431			552,728
Deferred tax assets, net		1,499,484			1,517,935
Total assets	$	92,613,660		$	88,082,589
Liabilities:
Loss and loss adjustment expenses	$	14,768,255		$	15,009,506
Advance premiums		179,313			74,172
Ceded reinsurance premiums payable		8,449,205			4,342,874
Unearned premiums		39,846,287			40,021,934
Unearned ceding commissions		11,151,736			11,200,317
Commissions payable, reinsurers and agents		4,031,055			3,754,929
General and other accrued expenses payable		2,100,686			2,232,547
Income tax payable		170,784			-
Taxes, licenses and other fees payable		51,021			765,782
Total liabilities		80,748,342			77,402,061
Stockholders' equity:
Common stock, $0.0001 par value per share; 40,000,000 shares authorized; 17,708,125 shares issued and 16,397,125 shares outstanding as of March 31, 2015 and 17,479,852 shares issued and 16,168,852 shares outstanding as of December 31, 2014		1,640			1,617
Treasury stock, $0.0001 par value per share; 1,311,000 common shares as of March 31, 2015 and December 31, 2014		(131	)		(131	)
Additional paid-in-capital		6,368,379			6,209,265
Accumulated other comprehensive income		6,749			73
Retained earnings		5,488,681			4,469,704
Total stockholders' equity		11,865,318			10,680,528
Total liabilities and stockholders' equity	$	92,613,660		$	88,082,589

See accompanying notes to the consolidated financial statements.

1

Homeowners of America Holding Corporation

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Three Months Ended

March 31, 2015 and 2014

Revenues:	March 31, 2015			March 31, 2014
Premiums earned	$	18,433,681		$	14,444,123
Ceded premiums		(17,243,390	)		(13,146,456	)
Net premiums earned		1,190,291			1,297,667
Policy fees		1,369,250			1,126,725
Ceding commissions and reinsurance profit share		5,394,380			3,356,198
Investment income, net of investment expenses		16,132			7,447
Loss adjustment and other fee income		304,693			323,042
Total revenue		8,274,746			6,111,079
Expenses:
Losses and loss adjustment expenses		677,170			350,976
Policy acquisition and other underwriting expenses		4,444,055			3,559,222
General and administrative expenses		1,597,738			1,469,724
Total expenses		6,718,963			5,379,922
Income before income taxes		1,555,783			731,157
Provision (benefit)for income taxes:
Current		518,355			264,610
Deferred		18,451			(8,698	)
Total income taxes		536,806			255,912
Net income	$	1,018,977		$	475,245
Cumulative preferred stock dividends		-			-
Net income available to common stockholders	$	1,018,977		$	475,245
Basic income per common share	$	0.06		$	0.03
Diluted income per common share	$	0.06		$	0.03
Cash dividend declared per common share		-			-

See accompanying notes to the consolidated financial statements.

2

Homeowners of America Holding Corporation

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

March 31, 2015 and 2014

	Three Months Ended
	March 31,
	2015		2014
Net income	$	1,018,977	$	475,245
Other comprehensive income:
Change in unrealized gain on investments:
Unrealized gain arising from the period		6,676		-
Deferred income taxes on above change		-		-
Total other comprehensive income, net of income taxes		6,676		-
Comprehensive income	$	1,025,653	$	475,245

See accompanying notes to the consolidated financial statements.

3

Homeowners of America Holding Corporation

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED)

For the Three Months Ended

March 31, 2015

										Additional		Accumulated				Total
	Common Stock				Treasury Stock					Paid-In		Other Comprehensive		Retained		Shareholders'
	Shares		Amount		Shares		Amount			Capital		Income, net of Tax		Earnings		Equity
Balance December 31, 2014		16,168,852	$	1,617		1,311,000	$	(131	)	$	6,209,265	$	73	$	4,469,704	$	10,680,528
Net income		-		-		-		-			-		-		1,018,977		1,018,977
Total other comprehensive income, net of income taxes		-		-		-		-			-		6,676		-		6,676
Stock options exercised		1,000		-		-		-			400		-		-		400
Common stock issued		227,273		23		-		-			149,977		-		-		150,000
Stock-based compensation		-		-		-		-			8,737		-		-		8,737
Balance March 31, 2015		16,397,125	$	1,640		1,311,000	$	(131	)	$	6,368,379	$	6,749	$	5,488,681	$	11,865,318

See accompanying notes to the consolidated financial statements.

4

Homeowners of America Holding Corporation

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED)

For the Three Months Ended

March 31, 2014

										Additional		Accumulated				Total
	Common Stock				Treasury Stock					Paid-In		Other Comprehensive		Retained		Shareholders'
	Shares		Amount		Shares		Amount			Capital		Income, net of Tax		Earnings		Equity
Balance December 31, 2013		15,831,140	$	1,583		1,350,000	$	(135	)	$	5,969,550	$	-	$	2,305,579	$	8,276,577
Net income		-		-		-		-			-		-		475,245		475,245
Total other comprehensive income, net of income taxes		-		-		-		-			-		-		-		-
Stock options exercised		-		-		-		-			-		-		-		-
Common stock issued		288,462		29		-		-			149,971		-		-		150,000
Stock-based compensation		-		-		-		-			35,465		-		-		35,465
Balance March 31, 2014		16,119,602	$	1,612		1,350,000	$	(135	)	$	6,154,986	$	-	$	2,780,824	$	8,937,287

See accompanying notes to the consolidated financial statements.

5

Homeowners of America Holding Corporation

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Three Months Ended

March 31, 2015 and 2014

	March 31, 2015			March 31, 2014
Cash flows from operating activities:
Net income	$	1,018,977		$	475,245
Adjustments to reconcile net income to net cash provided by (used in) by operating activities:
Depreciation & amortization		38,362			27,295
Accounting charge related to stock-based compensation expense		8,737			35,465
Common stock compensation for management services		150,000			150,000
Amortization of premium/accretion of discount, net		34,068			-
Deferred tax assets		18,451			(8,698	)
(Increase) decrease in:
Accrued investment income		(12,506	)		1,607
Due and deferred premiums		733,885			516,025
Balance due from reinsurers		(1,647,946	)		(7,196,571	)
Deferred policy acquisition costs		36,488			(1,719	)
Prepaid and other		241,297			(283,546	)
Increase (decrease) in:
Losses and loss adjustment expenses		(241,251	)		1,578,257
Advance premiums		105,141			60,777
Ceded reinsurance premiums payable		4,106,331			5,944,404
Unearned premiums		(175,647	)		(15,178	)
Unearned ceding commissions		(48,581	)		(3,850	)
Commissions payable, reinsurance & agents		276,126			652,879
General and other accrued expenses		(131,861	)		47,197
Funds held under reinsurance treaty		-			2,782
Income tax payable		170,784			54,611
Taxes, licenses and other fees payable		(714,761	)		(474,503	)
Net cash provided by operating activities		3,966,094			1,562,479
Cash flows from investing activities:
Purchases of long-term certificate of deposit		(4,410,000	)		-
Maturities of long-term certificate of deposit		-			1,960,000
Purchases of short-term investments		(1,215,000	)		(2,715,000	)
Maturities of short-term investments		2,930,000			1,309,717
Purchases of fixed-maturity securities, available-for-sale		(464,804	)		-
Call or maturity of fixed-maturity securities, available-for-sale		470,000			-
Additions to furniture, equipment and software		(4,769	)		(12,362	)
Net cash provided by (used in) investing activities		(2,694,573	)		542,355
Cash flows from financing activities:
Proceeds from stock options exercised		400			-
Net cash provided by financing activities		400			-
Net increase in cash and cash equivalents		1,271,921			2,104,834
Cash and cash equivalents, beginning of period		5,648,278			8,104,310
Cash and cash equivalents, end of the period	$	6,920,199		$	10,209,144
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	-		$	210,000

See accompanying notes to the consolidated financial statements.

6

Homeowners of America Holding Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Homeowners of America Holding Corporation ("HAHC") is an insurance holding company established to hold insurance entities for the purpose of marketing homeowner's insurance products on a national basis. HAHC owns 100% of Homeowners of America Insurance Company ("HAIC"). HAIC is domiciled in Texas, licensed in multiple states and is authorized to write various forms of homeowners and auto insurance. Coverage is concentrated in Texas. HAHC also owns 100% of Homeowners of America MGA, Inc. ("MGA"), a Texas Corporation, formed as a captive managing general agency to produce business in Texas and to provide marketing and claims administration services for HAIC. HAHC, along with its subsidiaries HAIC and MGA, are collectively referred to as "the Company".

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Homeowners of America Holding Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Certain reclassifications of prior year amounts have been made to conform to the current year presentation.

Cash and Cash Equivalents

Cash and cash equivalents include cash and highly liquid short-term investments, with original maturities of three months or less. The amount is carried at cost, which approximates fair value. At March 31, 2015 and December 31, 2014, cash and cash equivalents consist of cash on deposit with financial institutions, as well as money market mutual funds.

General and other accrued expenses payable as of March 31, 2015 and December 31, 2014, include $1.1 million and $1.7 million, respectively, of checks issued in excess of cash book balances, not yet presented for payment.

Investments

The Company's investments are comprised of short-term, restricted, long-term investments and fixed-maturity securities classified as available-for-sale as of March 31, 2015 and December 31, 2014. Restricted investments and long-term investments are described below. Short-term investments include certificates of deposit with original maturities greater than three months and maturities of one year or less. Due to the short-term nature of these investments, significant changes in prevailing interest rates and economic conditions should not adversely affect the timing and amount of cash flows on such investments or their related values. Accordingly, certificates of deposit are carried at cost, which approximates fair value. Fixed-maturity securities are classified as available-for-sale when it is not management's intent to make profits by buying and selling the securities within a short period of time or when it is not management's intent to hold the securities to maturity.  Fixed-maturity securities classified as available-for-sale are carried at fair value. The unrealized holding gains and losses, net of applicable deferred income taxes, are shown as a separate component of stockholders' equity as a part of accumulated other comprehensive income (loss) and, as such, are not included in the determination of net income (loss).

As of March 31, 2015 and December 31, 2014, the Company has restricted cash and investments, in the amount of $3.3 million and $4.3 million, respectively, pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. Restricted assets are shown separately in the accompanying consolidated balance sheets as "Restricted cash and investments" and include money market accounts and certificates of deposits. "Restricted fixed-maturity securities, classified as available-for-sale" are shown separately in the accompanying consolidated balance sheets and recorded at fair value. With the approval of the Departments of Insurance, the Company may exchange the investments with other funds or investments. In respect to certificates of deposit, management intends to hold the portion of these restricted investments to their maturity. As such, these restricted certificates of deposit are carried at cost, which approximates fair value. Interest earned on these investments inures to the benefit of the Company.

The following table provides the Company's restricted cash and investments as of March 31, 2015 and December 31, 2014.

Restricted cash and investments	March 31, 2015		December 31, 2014
Money Market	$	300,000	$	300,000
Certificates of Deposit		2,460,000		3,490,000
US Treasury Bond		542,824		539,654
	$	3,302,824	$	4,329,654

As of March 31, 2015 and December 31, 2014, the Company's investments also included certificates of deposit that mature more than one year after the balance sheet date and are reflected on the consolidated balance sheets as Long-term investments. Based on management's intent to hold to maturity, these investments are carried at cost. Cost approximates fair value based on the rates currently offered for deposits of similar remaining maturities.

The Company's investments in certificates of deposits and money market accounts do not qualify as securities as defined in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 320, Investment – Debt and Equity Securities. Accordingly, the fair value disclosures required by FASB ASC Topic 820, Fair Value Measurements and Disclosures are not provided. The Company's fixed-maturity securities classified as available-for-sale are "marked to market" as of the end of each calendar quarter.  As of that date, unrealized gains and losses are recorded to Accumulated Other Comprehensive Income, except where such securities are deemed to be other-than-temporarily impaired. Where applicable, the Company assesses investments of an issuer currently carrying a net unrealized loss. If in management's judgment, the decline in value is other than temporary, the cost of the investment is written down to fair value with a corresponding charge to earnings. Factors considered in determining whether an impairment exists include financial condition, business prospects and creditworthiness of the issuer, the length of time and magnitude that the asset value has been less than cost, and the ability and intent to hold such investments until the fair value recovers.

Comprehensive Income

FASB ASC Topic 220 - Comprehensive Income, requires that recognized revenues, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the consolidated balance sheet, these items, along with net income (loss), are components of comprehensive income. The Company characterizes their fixed income portfolio as available-for-sale securities when it is not management's intent to make profits by buying and selling the securities within a short period of time or when it is not management's intent to hold the securities to maturity, with appropriate adjustments to other comprehensive income. For the three months ended March 31, 2015, the Company recorded $6,676 of unrealized gains on available-for-sale securities in other comprehensive income.  There were no qualifying items reported in other comprehensive income for the three months ended March 31, 2014.

7

Homeowners of America Holding Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Recognition of Premium Revenues

Premiums are recognized as revenue on a daily pro rata basis over the policy term. The portion of premiums related to the unexpired term of policies in force as of the end of the measurement period and to be earned over the remaining term of those polices, is deferred and reported as unearned premiums.

Ceding Commissions and Reinsurance Profit Share

Ceding commissions represent acquisition costs associated with insurance risk ceded to reinsurers and is earned on a pro-rata basis over the life of the associated policy. Reinsurance profit share is additional ceding commissions payable to the Company based upon attaining specified loss ratios within individual treaty years.  Reinsurance profit share income is recognized when earned, which includes adjustments to earned reinsurance profit share based on changes in incurred losses and reserves for future loss development.

Policy Fees

Policy fee income includes application fees which are intended to reimburse the Company for a portion of the costs incurred in establishing the insurance. Policy fees on policies where premium is traditionally paid in full upon inception of the policy are recognized when written, while fees charged on policies where premiums are paid in installments, are recognized when collected.

Loss Adjustment and Other Fee Income

Loss adjustment and other fee income is recognized as income when collected. There is no amount over 5% of total revenue within this classification on the consolidated statements of operations for the three months ended March 31, 2015 and 2014.

Property, Equipment and Software

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets, which range from three to five years. The cost and related accumulated depreciation of assets sold or disposed are removed from the accounts and the resulting gain or loss is included in the consolidated statements of operations. Maintenance and repairs are expensed as incurred.

Software installation and development is stated at cost, net of accumulated amortization. Amortization is calculated on a straight-line basis method over three years.

Impairment of Long-Lived Assets

Long-lived assets, such as property, equipment and software, are reviewed for impairment whenever business events or circumstances could lead to or indicate that the value of the asset may not be recoverable. The assessment of possible impairment is based on whether the carrying amount of the assets exceeds its fair value. The Company uses estimates of undiscounted future cash flows in determining the recoverability of long-lived assets. As of March 31, 2015 and December 31, 2014, no impairment has been recorded.

Deferred Policy and Acquisition Costs

Deferred policy acquisitions costs ("DAC") as of March 31, 2015 and December 31, 2014, consist of commissions, premium taxes and policy underwriting and production expenses which are incurred through and vary directly with, the level of production of new and renewal insurance business and are amortized over the terms of the policies they relate to. The method used in calculating DAC limits the amount of the deferred cost to their estimated realizable value, which gives effect to allocating their expense along with other period costs associated with the insurance business, in relation to the amount of gross premium earned on policies to which they relate and investment income. DAC is reviewed to determine if it is recoverable from future income, including investment income. The amount of DAC considered recoverable could be reduced in the near term if management's estimates of future premium and investment income is reduced which could impair the Company's ability to recover these costs.

Reserve for Losses and Loss Adjustment Expenses

The liability for losses and loss adjustment expenses ("LAE") are estimates of the amounts required to cover known incurred losses and LAE, developed through the review and assessment of loss reports, along with the development of known claims. In addition, loss and loss adjustment expense reserves include management's estimate of an amount for losses incurred but not reported ("IBNR"), determined from reviewing overall loss reporting patterns as well as the loss development cycles of individual claim cases. Such liabilities are necessarily based on estimates and while management believes that the amount is adequate, the ultimate liability may be more or less than the amounts provided. The approach and methods for making such estimates and for establishing the resulting liability are continually reviewed and any adjustments are reflected in current earnings.

Due and Deferred Premiums

Due and deferred premiums consist of uncollateralized premiums and agents' balances in the course of collection as well as premiums booked but not yet due.

Reinsurance

In the normal course of business, the Company seeks to reduce the overall exposure to losses that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk with other insurance enterprises or reinsurers. The Company uses only quality, financially rated reinsurers and continually monitors the financial ratings of these companies through its brokers. The amount and type of reinsurance purchased each year is based on management's analysis of liquidity and its estimate of its probable maximum loss and the conditions within the reinsurance market. The Company continually monitors its risk exposure through the use of the AIR modeling system and other modeling tools provided by its reinsurance brokers. Reinsurance premiums, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums paid for reinsurance are reported as reductions of earned premium income.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss carryforwards, and liabilities are measured using enacted tax rates expected to be recovered or settled.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  In assessing the realizable value of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.

Uncertain Tax Positions

The Company recognizes uncertain tax positions in the consolidated financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns, and that its accruals for tax liabilities are adequate for all open tax years based on an assessment of many factors including experience and interpretations of tax laws applied to the facts of each matter. At March 31, 2015, the Company's tax years from 2010 through 2014 remain subject to examination.

8

Homeowners of America Holding Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's primary areas of estimate are for liabilities for unpaid losses and loss adjustment expenses, deferred policy acquisition costs, deferred tax asset valuation, and reinsurance. Actual results could differ significantly from those estimates.

Fair Value of Cash, Cash Equivalents and Short-term Investments

The carrying value for the Company's cash and cash equivalents and short-term investments approximate fair values as of March 31, 2015 and December 31, 2014 due to their short-term nature. Fair value for securities are based on the framework for measuring fair value established by FASB ASC Topic 820, Fair Value Measurements and Disclosures.

Fair Value Fixed-Maturity Securities held as Available-for-Sale

The Company's fixed-maturity securities held as available-for-sale are carried at fair value as of March 31, 2015 and December 31, 2014. Fair value for securities are based on the framework for measuring fair value established by FASB ASC Topic 820, Fair Value Measurements and Disclosures.

Stock Based Compensation

The Company accounts for stock-based compensation under the fair value recognition provisions of FASB ASC Topic 718 – Compensation – Stock Compensation, which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock issuances based on estimated fair values. In accordance with FASB ASC Topic 718, the Company recognizes stock-based compensation, if any, in the consolidated statements of operations on a straight line basis over the vesting period of the stock award.  For those stock awards vesting 100% at the issue date, the Company recognizes stock-based compensation immediately.

Earnings (Loss) Per Share

Basic earnings (loss) per share of common stock is computed by dividing net income or loss, less cumulative preferred stock dividends for the period whether or not earned or paid, by the weighted-average number of common shares during the period.

Diluted earnings (loss) per share of common stock is computed by dividing net income or loss attributable to common stockholders, adjusted for the effect of potentially dilutive securities, by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include convertible notes payable, outstanding convertible preferred stock and common stock options.

9

Homeowners of America Holding Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

2. RECENT ACCOUNTING PRONOUNCEMENTS

There have been no recent accounting pronouncements or changes in recent accounting pronouncements during the three months ended March 31, 2015, as compared to those described in our Annual Report on Form 10-K for the year ended December 31, 2014, that are of significance, or potential significance, to the Company.

3. RELATED PARTY TRANSACTIONS

In August 2013, HAHC entered into an agreement or the "Advisory Agreement", with Inter-Atlantic Advisors III, Ltd., or "Inter-Atlantic", under which Inter-Atlantic agrees to perform certain management services for the Company. A number of our directors are among the beneficial owners of Inter-Atlantic.  The Advisory Agreement has an initial term of six years, to be automatically renewed from year-to-year thereafter, unless terminated by either party upon 60 days notice prior to the termination of the initial or any renewal term.  For its services, the Company will pay Inter-Atlantic an annual fee of $300,000, as well as, an annual grant of shares of our common stock with an aggregate fair market value of $150,000 at the time of grant, plus reimburse Inter-Atlantic's expenses incurred in connection with the performance of its service. As long as the Advisory Agreement is in effect and the fees and expense reimbursements are paid, the directors of the Company that are affiliated with Inter-Atlantic have agreed to waive any other compensation for their service as directors.

For the three months ended March 31, 2015, the Company incurred an expense of $225,000 (of which $150,000 is represented by the issuance of 227,273 shares of common stock) for services performed under the Advisory Agreement.

For the three months ended March 31, 2014, the Company incurred an expense of $225,000 (of which $150,000 is represented by the issuance of 288,462 shares of common stock) for services performed under the Advisory Agreement.

4. INVESTMENTS

Investment income, net of investment expenses totaled $16,132 and $7,447 for the three months ended March 31, 2015 and 2014, respectively.

For the three months ended March 31, 2015, there were $6,676 in unrealized gains/(losses) on fixed-maturity securities held as available-for-sale.  There were no realized gains or losses recognized for the three months ended March 31, 2015 and March 31, 2014.  The intent is to hold to maturity certificates of deposit carried at amortized cost.

The following table provides the Company's short-term, restricted and long-term investment holdings by type of financial instruments that were used to estimate the fair value disclosures for financial instruments as of March 31, 2015 and December 31, 2014, respectively:

	March 31, 2015						December 31, 2014
	Book Value			Fair Value / Carrying Value			Book Value			Fair Value / Carrying Value
Financial Assets:
Restricted certificates of deposit		$	2,460,000		$	2,460,000		$	3,490,000		$	3,490,000
Restricted money markets			300,000			300,000			300,000			300,000
Long-term investments			7,840,000			7,840,000			3,430,000			3,430,000
Short-term investments			546,881			546,881			1,231,881			1,231,881
Total		$	11,146,881		$	11,146,881		$	8,451,881		$	8,451,881

	March 31, 2015				December 31, 2014
	Range of Maturities		Interest Rates		Range of Maturities		Interest Rates
Restricted certificates of deposit		Less than 1 year		0.30% - 1.40%		Less than 1 year		0.10% - 1.40%
Restricted money markets		Less than 1 year		-		Less than 1 year		-
Long-term investments		More than 1 year		0.60% - 1.50%		More than 1 year		0.75% - 1.50%
Short-term investments		Less than 1 year		0.05% - 0.75%		Less than 1 year		0.35% - 0.70%

The following table provides the Company's fixed-maturity securities classified as available-for-sale which are carried at fair value as of March 31, 2015 and December 31, 2014:

	March 31, 2015
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Fixed Maturities:
Obligations of states, municipalities and political subdivisions	$	3,787,960	$	8,618	$	(5,091	)	$	3,791,487
U.S. Treasury- held as restricted		539,602		3,222		-			542,824
Total Fixed Maturities	$	4,327,562	$	11,840	$	(5,091	)	$	4,334,311

	December 31, 2014
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Fixed Maturities:
Obligations of states, municipalities and political subdivisions	$	3,827,268	$	6,331	$	(6,354	)	$	3,827,245
U.S. Treasury- held as restricted		539,558		96		-			539,654
Total Fixed Maturities	$	4,366,826	$	6,427	$	(6,354	)	$	4,366,899

The amortized cost and fair value of available-for-sale fixed-maturity securities at March 31, 2015 and December 31, 2014, by contractual maturity, are shown in the following table.  Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2015
Remaining Time to Maturity	Amortized Cost Basis		Fair Value
Less than one year	$	570,394	$	569,076
One to five years		1,926,643		1,928,435
Five to ten years		61,590		62,004
More than ten years		1,768,935		1,774,796
Total	$	4,327,562	$	4,334,311

	December 31, 2014
Remaining Time to Maturity	Amortized Cost Basis		Fair Value
Less than one year	$	570,236	$	569,734
One to five years		1,985,297		1,981,134
Five to ten years		162,124		162,519
More than ten years		1,649,169		1,653,512
Total	$	4,366,826	$	4,366,899

Other-than-temporary Impairment ("OTTI")

The Company regularly reviews its individual investment securities for OTTI.  The Company considers various factors in determining whether each individual security is other-than-temporarily-impaired, including:

• the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

• the length of time and the extent to which the market value of the security has been below its cost or amortized cost;

• general market conditions and industry or sector specific factors;

• nonpayment by the issuer of its contractually obligated interest and principal payments; and

• the Company's intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

Securities with gross unrealized loss positions at March 31, 2015 and December 31, 2014 were immaterial. The Company believes there were no fundamental issues such as credit losses or other factors with respect to any of its available-for-sale securities.  The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes.  It is expected that the securities would not be settled at a price less than par value of the investments.  Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold its available-for-sale investments until a market price recovery or maturity, the Company does not consider any of its investments to be other-than-temporarily impaired at March 31, 2015 and at December 31, 2014.

10

Homeowners of America Holding Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

5. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company's financial assets carried at fair value have been classified, for disclosure purposes, based on the hierarchy established within FASB ASC 820-10 – Fair Value Measurements and Disclosures. When market prices are not available, fair value is generally estimated utilizing valuation techniques that vary by asset class and incorporate available trade, bid and other market information, when available. The acceptable valuation techniques include (a) market approach, which uses prices or relevant information derived from market transactions for identical or comparable assets or liabilities, (b) the Income Approach, which converts future amounts such as cash flows or earnings to a single present value amount based on current market expectations about those future amounts, and (c) the Cost Approach, which is based on the amount that currently would be required to replace the service capacity of an asset. In certain circumstances, these valuation techniques may involve some level of management estimation and judgment which becomes significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk premium inherent in a particular methodology, model or input used.

The fair value hierarchy is used to prioritize valuation inputs into three levels:

● Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities. These inputs are considered to be the most reliable evidence of fair value.

● Level 2 – quoted prices for similar assets in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the investment. Such inputs include market interest rates and volatilities, spreads and yield curves.

● Level 3 – termed unobservable inputs which are utilized in situations where there is little or no market activity for the asset or liability at the measurement date. The approach typically involves a significant subjective management judgment toward the pricing of the security.

The Company's short-term investments comprised of certificates of deposit held at financial institutions which are not measured at fair value on a recurring basis. A portion of the Company's cash and cash equivalents include money market mutual fund accounts held at financial institutions which are measured at fair value on a recurring basis. Fixed-maturity securities held as available-for-sale are carried at fair value in our consolidated financial statements. The following tables provide information as of March 31, 2015 and December 31, 2014, about the Company's financial assets measured at fair value on a recurring basis:

	Fair Value Measurements Using
	Level 1			Level 2			Level 3			Total
As of March 31, 2015
Money market mutual funds		$	4,034,583		$	-		$	-		$	4,034,583
Restricted money market mutual funds			300,000			-			-			300,000
Securities-available-for-sale fixed-maturity:
Obligations of states, municipalities and political subdivisions			-			3,791,487			-			3,791,487
U.S. Treasury			-			542,824			-			542,824
Total		$	4,334,583		$	4,334,311		$	-		$	8,668,894
	Fair Value Measurements Using
	Level 1			Level 2			Level 3			Total
As of December 31, 2014
Money market mutual funds		$	3,372,527		$	-		$	-		$	3,372,527
Restricted money market mutual funds			300,000			-			-			300,000
Securities-available-for-sale fixed-maturity:
Obligations of states, municipalities and political subdivisions			-			3,827,245			-			3,827,245
U.S. Treasury			-			539,654			-			539,654
Total		$	3,672,527		$	4,366,899		$	-		$	8,039,426

The following methods and assumptions were used to estimate the fair value disclosures for financial instruments:

Money market mutual funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. As the funds are generally maintained at a net asset value which does not fluctuate, cost approximates fair value. These are included as a Level 1 measurement in the table above. The fair values for available-for-sale fixed-maturity securities are based upon prices provided by an independent pricing service.  The Company has reviewed these prices for reasonableness and has not adjusted any prices received from the independent provider.  Level 2 securities represent assets whose fair value is determined using observable market information such as previous day trade prices, quotes from less active markets or quoted prices of securities with similar characteristics.  There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2015 or during the year ended December 31, 2014 .

11

Homeowners of America Holding Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

6. PROPERTY, EQUIPMENT, AND SOFTWARE NET

Property, equipment, and software net consist of the following as of March 31, 2015 and December 31, 2014, respectively:

	March 31, 2015			December 31, 2014			Useful Life
Computer equipment	$	234,761		$	231,860		3 years
Office equipment		17,409			17,409		5 years
Furniture and fixtures		142,450			142,450		5 years
Software installation and development		931,184			929,316		3 years
Total, at cost		1,325,804			1,321,035
Less accumulated depreciation and amortization		(1,014,902	)		(976,540	)
Property and equipment, net	$	310,902		$	344,495

Depreciation and amortization expense for property, equipment and software totaled $38,362 and $27,295 for the three months ended March 31, 2015 and 2014, respectively.

7. DEFERRED POLICY ACQUISITION COSTS

Total capitalized deferred policy acquisition costs as of March 31, 2015 and March 31, 2014, comprised of commissions, premium taxes and costs associated with underwriting and issuing policies were $7,861,318 and $6,216,053, respectively.

Changes in deferred policy acquisition costs for the three months ended March 31, 2015 and March 31, 2014, are as follows:

	March 31, 2015			March 31, 2014
Deferred policy acquisition charges, beginning of the period	$	7,897,806		$	6,214,334
Capitalized costs		3,541,680			2,834,495
Amortized costs		(3,578,168	)		(2,832,776	)
Deferred policy acquisition charges, end of the period	$	7,861,318		$	6,216,053

8. UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES

Losses and loss adjustment expenses (LAE), less related reinsurance and deductibles, are charged to operations as incurred. Unpaid losses and LAE are based on claims adjusters' estimates of the cost of settlement plus an estimate for losses IBNR based upon historical experience, industry loss experience, and management's estimates.  Loss reserves reflect Company management's best estimate of the total cost of (i) claims that have been incurred but not yet paid, and (ii) claims that have been incurred, but not yet reported (IBNR).  Loss reserves that are established by Company management are not an exact calculation of our liability, but rather loss reserves represent management's best estimate for our Company's liability based on the application of actuarial techniques and other projection methodology, taking into consideration other facts and circumstances known as of the balance sheet date.  The process of setting reserves is complex and necessarily imprecise. The impact of both internal and external variables on ultimate loss and LAE costs is difficult to estimate.  To arrive at its best estimate for losses, the Company uses damage estimating software developed and owned by acknowledged industry leader, Insurance Service Office.  Reserve factors for IBNR are reviewed quarterly by an independent actuarial consultant.  In addition, our appointed independent actuary attests to the adequacy of our unpaid claim reserve, including IBNR at calendar year end.

Losses and Loss Adjustment Expenses

The following table provides the reconciliation of the beginning and ending reserve balances for losses and LAE, gross of reinsurance for the three months ended March 31, 2015 and for March 31, 2014:

	Three Months Ended March 31,
	2015			2014
Reserve for losses and LAE, beginning of period	$	15,009,506		$	15,884,062
Reinsurance recoverables on losses and LAE		(13,995,400	)		(15,090,175	)
Reserve for losses and LAE, net of reinsurance recoverables at beginning of year		1,014,106			793,887
Add provision for claims and LAE occurring in:
Current year		390,477			98,976
Prior years		286,693			252,000
Net incurred losses and LAE during the current period		677,170			350,976
Deduct payments for claims and LAE occurring in:
Current year		225,615			167,599
Prior years		347,693			222,628
Net claim and LAE payments during the current period		573,308			390,227
Reserve for losses and LAE, net of reinsurance recoverables, at end of period		1,117,968			754,636
Reinsurance recoverables on losses and LAE		13,650,287			16,707,683
Reserve for losses and LAE, end of period	$	14,768,255		$	17,462,319

As a result of additional information on claims occurring in prior years becoming available to management, changes in estimates of provisions of claims and claim adjustment expenses were made resulting in an increase of $286,693 and $252,000 for the three months ended March 31, 2015 and 2014, respectively.

9. STOCKHOLDERS' EQUITY

Preferred Stock

As of March 31, 2015 and December 31, 2014, the Company had 20,500,000 shares of preferred stock, convertible, 12.50% cumulative, $0.0001 par value per share, authorized and none issued and outstanding.

Common Stock

As of March 31, 2015, the Company had 40,000,000 shares authorized and 17,708,125 shares issued and 16,397,125 shares outstanding of $0.0001 par value common stock. Holders of common stock are entitled to one (1) vote for each share of common stock held at all meetings of stockholders.

On February 1, 2015, the Company issued 227,273 shares of common stock at $0.66 per share, to Inter-Atlantic Management Inc.  Per the terms of the Advisory Agreement dated August 1, 2013, Inter-Atlantic Management Inc. will be issued annually on February 1st, a grant of the Company's common stock which in aggregate had a fair market value of $150,000 at the time of the grant.

As of December 31, 2014, the Company had 40,000,000 shares of authorized and 17,479,852 shares issued and 16,168,852 shares outstanding of $0.0001 par value common stock.  Holders of common stock are entitled to one (1) vote for each share of common stock held at all meetings of stockholders.

There were no common stock warrants issued during the three months ended March 31, 2015 and March 31, 2014.

12

Homeowners of America Holding Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

10.   EARNINGS (LOSS) PER SHARE

The following table represents the reconciliation of the Company's basic earnings per common share and diluted earnings per common share computations reported on the Consolidated Statements of Operations for the three months ended March 31, 2015 and March 31, 2014:

	Three Months Ended
	March 31,
	2015		2014
Basic earnings per common share
Net income	$	1,018,977	$	475,245
Cumulative dividend		-		-
Adjusted net income	$	1,018,977	$	475,245
Weighted average common shares outstanding		16,320,867		16,023,448
Basic earnings per common share	$	0.06	$	0.03
	Three Months Ended
	March 31,
		2015		2014
Diluted earnings per common share
Net income	$	1,018,977	$	475,245
Weighted average common shares outstanding		16,320,867		16,023,448
Effect of diluted securities:
Stock options		1,286,250		902,500
Diluted common shares outstanding		17,607,117		16,925,948
Diluted earnings per common share	$	0.06	$	0.03

13

Homeowners of America Holding Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

11. STOCK BASED COMPENSATION

The Company accounts for stock-based compensation under the fair value recognition provision of FASB ASC Topic 718 – Compensation – Stock Compensation.

Incentive Plans

The Company's 2005 Management Incentive Plan (the "2005 Plan") provides for granting of stock options to enable the Company to obtain and retain the services of selected persons, both employees and directors, considered to be essential to the long-range success of the Company.  Under the 2005 Plan, options may be granted to purchase a total not to exceed 789,475 shares of common stock in the aggregate, made up of original issue shares, treasury shares or a combination of the two.  At March 31, 2015 and 2014, options to purchase 783,750 shares of common stock had been granted under the 2005 Plan.

The Company's 2013 Equity Compensation Plan (the "2013 Plan") provides for granting of stock options, incentive stock options, stock awards, and restricted stock units to enable the Company to obtain and retain the services of selected persons, both employees and directors, considered to be essential to the long-range success of the Company. Under the 2013 Plan, options may be granted to purchase a total not to exceed 2,925,000 shares of common stock, made up of original issue shares, treasury shares or a combination of the two. At March 31, 2015, options to purchase 1,965,000 shares of common stock and 39,000 shares of common stock in the form of a stock award had been granted under the 2013 Plan.

A summary of the activity of the Company's stock option plan for the three months ended March 31, 2015 and March 31, 2014 is as follows:

	Number of Options		Weighted Avg Exercise Price		Weighted Avg Remaining Cont. Term		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2014		2,738,500	$	0.59		7.32	$	226
Outstanding at March 31, 2015		2,737,500	$	0.59		7.07	$	747
Exercisable at March 31, 2015		1,286,250	$	0.67		5.70	$	262
Outstanding at December 31, 2013		2,708,750	$	0.58		8.41	$	4
Outstanding at March 31, 2014		2,708,750	$	0.58		8.16	$	21
Exercisable at March 31, 2014		902,500	$	0.73		5.55	$	6

The Company did not grant any stock options during the three months ended March 31, 2015 and 2014.

The Company records stock-based compensation expense related to granting stock options in underwriting and other operating expenses.  During the three months ended March 31, 2015, and 2014, the Company did not grant any stock options.  The Company recognized compensation expense as follows for the three months ended March 31:

	Three Months Ended March 31,
	2015				2014
Total gross compensation expense		$	8,737			$	35,465
Total tax benefit associated with compensation expense			(172	)			(7,163	)
Total net compensation expense		$	8,565			$	28,302

As of March 31, 2015, the Company expects to record compensation expense in the future as follows:

	Nine			Year ending December 31,
	months
	ending
	December 31, 2015			2016			2017			2018			2019
Total gross unrecognized compensation expense	$	26,208		$	34,944		$	34,944		$	28,365		$	81
Tax benefit associated with unrecognized compensation expense		(515	)		(686	)		(686	)		(556	)		-
Total net unrecognized compensation expense	$	25,693		$	34,258		$	34,258		$	27,809		$	81

14

Homeowners of America Holding Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

12. INCOME TAXES

During the three months ended March 31, 2015, the Company recorded $536,806 of income tax expense which resulted in estimated annual effective tax rate of 34.10%.  The effective tax rate was primarily impacted as a result of permanent tax differences on meals and entertainment and stock-based compensation.

During the three months ended March 31, 2014, the Company recorded $255,912 of income tax expense which resulted in estimated annual effective tax rate of 34.25%. The effective tax rate was primarily impacted as a result of permanent tax differences on meals and entertainment.

The Company's federal income tax return is consolidated with HAIC and MGA. Allocation of tax expense or refunds among the consolidated group is based on separate return calculations.

13. REINSURANCE

Certain premiums and benefits are ceded to other insurance companies under various reinsurance agreements. The reinsurance agreements provide HAIC with increased capacity to write larger risks and maintain its exposure to loss within its capital resources. Ceded reinsurance contracts do not relieve HAIC from its obligations to policyholders. HAIC remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize its exposure to significant losses from reinsurer insolvencies, HAIC evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers.

Commencing April 1, 2014 and ending March 31, 2015, the Company reinsured its property and casualty risk under quota share reinsurance treaties with third party reinsurers.  The treaties cover 80% of its risk under property coverage on any one loss occurrence not to exceed $110 million; 10% of its risk under property coverage on any one loss occurrence not to exceed $4 million and approximately 64% of its risk under casualty coverages.

Property catastrophe treaties, which went into effect on the same day and having the same term as the quota share treaties, develop over four layers and 20% of our risk on property coverage on a gross loss of $110 million excess of $4 million per occurrence. The Company's net retention is $400,000 per loss occurrence.

From April 1, 2013 and ending March 31, 2014, the Company reinsured with various third party reinsurers under residential quota share reinsurance treaties, 90% of its risk. The reinsurers' liability under the quota share arrangement beginning in respect to any one loss occurrence shall not exceed $80 million. Property catastrophe treaties, which went into effect on the same day and have the same term as the quota share treaties, develop over four layers and cover a gross loss of $76 million excess of $4 million per occurrence. The Company's net retention is $400,000 per occurrence.

The Company also purchases reinsurance covering non-weather losses (two occurrences) in excess of a gross loss of $500,000 per occurrence for all coverage lines (a net loss of $50,000). This coverage which was in force during 2015 and 2014 had been obtained principally to protect the Company in the event of a large fire loss.

The effects of reinsurance on premiums written and earned were as follows, for the three months ended March 31, 2015 and March 31, 2014:

	Three Months Ended March 31, 2015								Three Months Ended March 31, 2014
	Written				Earned				Written				Earned
Direct premiums		$	18,258,033			$	18,433,681			$	14,428,945			$	14,444,123
Ceded premiums			(16,166,379	)			(17,243,390	)			(12,883,015	)			(13,146,456	)
Net Premiums		$	2,091,654			$	1,190,291			$	1,545,930			$	1,297,667

Following is a summary of HAIC's reinsurance balances under the above described reinsurance treaties as of and for the three months ended March 31, 2015 and December 31, 2014:

	March 31, 2015		December 31, 2014
Ceded premiums payable	$	8,449,205	$	4,342,874
Ceded loss adjustment expenses	$	825,508	$	4,763,808
Ceded loss and loss adjustment expense reserve	$	13,650,287	$	13,995,400
Ceded unearned premium reserve	$	35,284,456	$	35,442,177
Ceded earned premiums	$	17,243,390	$	60,484,640

14. CONCENTRATION OF CREDIT RISK

The Company has exposure and remains liable in the event of an insolvency of one of its primary reinsurers. Management and its reinsurance intermediary regularly assess the credit quality and ratings of its reinsurer base companies.

Financial instruments which potentially subject the Company to credit risk consist principally of cash, money market accounts on deposit with financial institutions, money market funds, certificates of deposit and fixed-maturity securities, as well as premium balance in the course of collection.  At times, the Company's bank deposits may exceed the FDIC limit.

The concentration of credit risk with respect to premium balances in the course of collection is limited, due to the large number of insureds comprising the Company's customer base. However, substantially all of the Company's revenues are derived from customers in Texas, which could be adversely affected by economic conditions, an increase in competition, or other environmental changes.

15. COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company leases its corporate office space and certain office equipment under non-cancelable operating leases which expire at various dates through 2019. Future minimum lease payments required under the non-cancelable operating leases are as follows for the years ending December 31:

2015        (9 months)	$	125,136
2016		174,709
2017		91,284
2018		22,188
2019		12,519
	$	425,836

Rent expense under such leases for the three months ended March 31, 2015 and March 31, 2014 was $42,426 and $32,328, respectively.

Litigation

The Company is the defendant in routine litigation involving matters that are incidental to the claims function of the Company's insurance business for which estimated losses are included in unpaid loss and loss adjustment expense reserves in the Company's consolidated financial statements. It is management's opinion that these lawsuits are not material individually or in the aggregate to the Company's financial position, results of operations, or cash flow.

16. REGULATORY REQUIREMENTS AND RESTRICTIONS

HAIC is subject to the laws and regulations of the State of Texas and the regulations of any other states in which HAIC conducts business. State regulations cover all aspects of HAIC's business and are generally designed to protect the interests of insurance policyholders, as opposed to the interests of stockholders. The Texas Insurance Code requires all property and casualty insurers to have a minimum of $2.5 million in capital stock and $2.5 million in surplus. HAIC has capital and surplus in excess of this requirement.

As of December 31, 2014, HAIC's total statutory surplus was $12,317,735 (capital stock of $3,000,000 and surplus of $9,317,735).

As of March 31, 2015, HAIC's total statutory surplus was $13,544,812 (capital stock of $3,000,000 and surplus of $10,544,812).

As of March 31, 2015 and December 31, 2014, HAIC had restricted cash and investments totaling $3.3 million and  $4.3 million, respectively, pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. See Note 1, Organization and Summary of Significant Accounting Policies, Investments, for additional disclosure.

The Texas Insurance Code limits dividends from insurance companies to their stockholders to net income accumulated in the Company's surplus account, or "earned surplus".

The maximum dividend that may be paid without approval of the Insurance Commissioner is limited to the greater of 10% of the statutory surplus at the end of the preceding calendar year or the statutory net income of the preceding calendar year. No dividends were paid by HAIC in the first quarter of  2015 or during the year of 2014.

HAIC prepares its statutory-based financial statements in conformity with accounting practices prescribed or permitted by the Texas Department of Insurance. Prescribed statutory accounting practices primarily include those published as statements of SAP by the NAIC, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practice not so prescribed. As of March 31, 2015 and December 31, 2014, there were no material permitted statutory accounting practice utilized by HAIC.

15

Homeowners of America Holding Corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 2 – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

In addition to historical information, this quarterly report contains forward-looking statements as defined under federal securities laws. Such statements involve risks and uncertainties, such as statements about our plans, objectives, expectations, assumptions or future events. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from any future results, performances or achievements expressed or implied by the forward-looking statements. Typically, forward-looking statements can be identified by terminology such as "anticipate," "estimate," "plan," "project," "continuing," "ongoing," "expect," "believe," "intend," "may," "will," "should," "could," and similar expressions. The important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include but are not limited to the effect of governmental regulation; changes in insurance regulations; the frequency and extent of claims; uncertainties inherent in reserve estimates; catastrophic events; a change in the demand for, pricing of, availability of or collectability of reinsurance; restrictions on our ability to change premium rates; increased rate pressure on premiums; and other risks and uncertainties detailed herein and from time to time in our publicly available filings with the Securities and Exchange Commission (the " SEC").

You should read the following discussion in conjunction with our consolidated financial statements and related notes and information included under this Item 2 and elsewhere in this quarterly report on Form 10-Q and in our Form 10-K filed with the SEC on March 27, 2015. Unless the context requires otherwise, as used in this Form 10-Q, the terms "HAHC," "we," "us," "our," "the Company," "our company," and similar references refer to Homeowners of America Holding Corporation and its subsidiaries.

OVERVIEW

General

HAHC is a property and casualty insurance holding company incorporated in Delaware in 2005.  In May 2006, we began selling property and casualty insurance products in Texas through our subsidiary, Homeowners of America Insurance Company (or "HAIC"), in April 2014, we began offering property and casualty insurance products in Arizona, and in April 2015, South Carolina.  Through the use of highly automated underwriting tools, we currently offer homeowners, dwelling fire and extended coverage, tenant and condominium owner's policies, within market segments which have proven to have long term profitability.  Using internet-enabled applications, our products are offered to the public through independent insurance agents.

To support future business development, the Company has applied for licenses to write business in thirty-two states.  To date, we have received certificates of authority from twenty-five including Alabama, Arkansas, Colorado, Delaware, Georgia, Indiana, Illinois, Iowa, Kentucky, Louisiana, Michigan, Missouri, Montana, Nebraska, Nevada, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Tennessee, Utah, Virginia, Washington and Wyoming to offer homeowners, dwelling fire and extended coverage, tenant and condominium owner's policies.  As a condition of granting a Certificate of Authority, a number of states require alien insurance companies to maintain pledged assets for the purpose of meeting obligations to policyholders and creditors.

The Company began selling homeowners coverage in Arizona in 2014 and South Carolina in April, 2015. The Company plans to begin selling homeowners products in Virginia later in 2015. The Company is researching additional states for future expansion, which aren't planned for entry until 2016 or later. Dwelling fire and extended coverage, tenant and condominium owners policies will be added to our current expansion states when the Company decides the market is right.

The Company is seeing increased competition from companies entering Texas and has formulated marketing strategies to protect its market share.

As mentioned previously, the Company sells insurance policies predominately in Texas.  As such, the health of the Texas economy and housing market has a direct impact on the Company's business activity.  The following selected statistics published monthly by the Real Estate Center at Texas A&M University are key indicators that management monitors when evaluating the Company's current financial condition and operating results:

• Texas seasonally adjusted unemployment was 4.2% at March month end, as compared to the national U.S. rate of 5.5%.

• Single family building permits were up 10.0% year over year as of March month end and single family home sales were up 10.8% year over year as of March month end.

• Texas nonfarm employment rate increased 2.8% year over year as of March month end, as compared to an increase of the national U.S. rate of 2.3%.

  These favorable employment and housing economic trends, along with our competitive pricing in our target markets have resulted in improved premium production during the first quarter of 2015. The resulting increase in earned premium, along with improved reinsurance terms for the 2014 - 2015 treaty year are all factors which aided in the positive results recorded by the Company for the quarter ended March 31, 2015.

  The recent decline in the price of oil during the 4th quarter of 2014 is expected to have a negative impact on the Texas economy. If so, this will affect job growth and home sales, both of which were robust in 2014. The Company is taking steps to at least partially ameliorate the effects of a downturn. Expanding geographically into other states, as well as expansion into other parts of Texas, is the main component of this strategy.

Our principal revenues are earned premiums (which are reported net of reinsurance costs), ceding commissions and policy fees.  We cede a substantial portion of our earned premium to reinsurers under a quota share program to mitigate high frequency risks as well as protect us from catastrophic events and under an excess of loss contract program to mitigate losses from catastrophic events.  Our principal expenses are claims from policyholders, policy acquisition and other underwriting expenses, and general and administrative expenses.

Net income available to common stockholders was $1,018,977 for the three months ended March 31, 2015.  As of March 31, 2015 we had total assets of $92.6 million and stockholders' equity of $11.9 million.

At the end of 2014, our market share of the approximately $7.8 billion Texas homeowners insurance market was estimated to be 0.76% by SNL Financial, making us the 18^th largest Texas homeowners company in terms of Texas premium.  As of March 31, 2015, our property insurance policy in force count of 78,005 represents annualized premiums of approximately $78.2 million as compared to the same time last year when our policy in force count was 63,261 and our in force premium was approximately $61.3 million as of March 31, 2014. Our policy growth year over year was 23.31 %, while our in force premium grew 27.66 %.

16

RESULTS OF OPERATIONS

The following table summarizes our results of operations for the three months ended March 31, 2015 and 2014:

	Three Months Ended
	March 31,
Revenues:	2015			2014
Premiums earned	$	18,433,681		$	14,444,123
Ceded premiums		(17,243,390	)		(13,146,456	)
Net premiums earned		1,190,291			1,297,667
Policy fees		1,369,250			1,126,725
Ceding commissions and reinsurance profit share		5,394,380			3,356,198
Investment income, net of investment expenses		16,132			7,447
Loss adjustment and other fee income		304,693			323,042
Total revenue		8,274,746			6,111,079
Expenses:
Losses and loss adjustment expenses		677,170			350,976
Policy acquisition and other underwriting expenses		4,444,055			3,559,222
General and administrative expenses		1,597,738			1,469,724
Total expenses		6,718,963			5,379,922
Income before income taxes		1,555,783			731,157
Provision (benefit) for income taxes:
Current		518,355			264,610
Deferred		18,451			(8,698	)
Total income taxes		536,806			255,912
Net income	$	1,018,977		$	475,245
Cumulative preferred stock dividends		-			-
Net income available to common stockholders	$	1,018,977		$	475,245
Basic income per common share	$	0.06		$	0.03
Diluted income per common share	$	0.06		$	0.03
Cash dividend declared per common share		-			-
Losses and loss adjustment expenses  to net earned premium		56.89	%		27.05	%
Expenses to direct earned premium		32.78	%		34.82	%
Acquisition & underwriting and other operating expenses to fee income		85.48	%		104.64	%
Combined loss & expense to total earned revenue		81.36	%		88.14	%

17

Net income for the three months ended March 31, 2015 was $1,018,977as compared to net income of $475,245 for the three months ended March 31, 2014. Results for the three months ended March 31, 2015, improved over the same time frame last year primarily as a result of enhanced fee income from policy production and ceding commissions coming from our quota share reinsurance program.

Operating income for the three months ended March 31, 2015 was favorably impacted by an increase in policy fee income and ceding commission income offset by an increase in loss and loss adjustment expenses and policy acquisition costs due to higher volume.

Our results of operations for the three months ended March 31, 2015 reflect net income of $1,018,977, or $0.06 earnings per diluted common share, compared to net income of $475,245, or $0.03 earnings per diluted common share, for the three months ended March 31, 2014.

Commencing April 1, 2014 and ending March 31, 2015, the Company reinsured its property and casualty risk under quota share reinsurance treaties with third party reinsurers.  The treaties cover 80% of its risk under property coverage on any one loss occurrence not to exceed $110 million; 10% of its risk under property coverage on any one loss occurrence not to exceed $4 million and approximately 64% of its risk under casualty coverages.

Property catastrophe treaties, which went into effect on the same day and having the same term as the quota share treaties, develop over four layers and 20% of our risk on property coverage on a gross loss of $110 million excess of $4 million per occurrence. The Company's net retention is $400,000 per loss occurrence.

Three Months ended March 31, 2015 compared to the Three Months ended March 31, 2014

Revenue

Premium production for the three months ended March 31, 2015 was $18.3 million, an increase of $3.8 million or 26.54% over the same period in 2014.  The Company attributes this growth to the effects of an increased number of insured properties, increased pricing in selected markets and maintaining persistency on policies subject to renewal in its target markets.

Gross Premiums Earned for the three months ended March 31, 2015 and 2014 were $18.4 million and $14.4 million, respectively.  The $4.0 million increase or 27.62%, is primarily the result of increased property insurance premium, which increased $3.8 million or 26.54%.

Premiums Ceded for the three months ended March 31, 2015 and 2014 were approximately $17.2 million and $13.1 million, respectively. Our premiums ceded represent amounts paid to reinsurers to cover losses under both our quota share and excess of loss reinsurance treaties. Premiums ceded were 93.54% and 91.02% of gross premiums earned during the three months ended March 31, 2015 and 2014, respectively, primarily the result of our 90% quota share reinsurance program.  We expect our reinsurance premiums applicable to the current fiscal year, as well as the reinsurance treaty year, to remain in excess of 90% of direct earned premium, trending slightly upward reflecting our increase in in-force premium.

Net Premiums Earned for the three months ended March 31, 2015 and 2014 were $1.2 million and $1.3 million, respectively, and reflect the gross premiums earned less the appropriate reinsurance costs as described above.

Ceding Commission and Other Fee Income for the three months ended March 31, 2015 was $6.1 million compared to $4.3 million for the three months ended March 31, 2014.  The primary factors for this improvement include increased earned premium, further supported by improved reinsurance terms for the 2014 - 2015 treaty year.

Reinsurance Profit Sharing income for the three months ended ended March 31, 2015 was $0.9 million compared to $0.5 million for the three months ended March 31, 2014. Reinsurance profit sharing income, calculated on a treaty year basis (April - March), is recognized when earned, which includes adjustments to earned reinsurance profit share based on changes in incurred losses and reserves for future loss development. The $400,000 increase in income reported in 2015 is primarily due to the positive 4th quarter treaty year 2014 results reported in calendar year 2015.

Net Premiums Written during the three months ended March 31, 2015 and 2014 totaled $2.1millionand $1.5 million, respectively. Net premiums written represent the premiums charged on policies issued during a fiscal period less any applicable quota share reinsurance costs.

The following is a reconciliation of our total net premiums written to net premiums earned for the three months ended March 31, 2015 and 2014 (values in thousands):

	Three Months Ended
	March 31,
	2015			2014
Net premiums written	$	2,091		$	1,546
Change in unearned premium		18			2
Catastrophe & EXOL premium		(919	)		(250	)
Net premiums earned	$	1,190		$	1,298

Investment Income, Net of Investment Expenses increased approximately 116.62% in the three months ended March 31, 2015 as compared to the three months ended March 31, 2014, reflecting the Company's change in its investment policy, beginning June 1, 2014.  This change included the decision to invest a portion of its excess cash in high quality municipal bonds.

Expenses

Our Losses and Loss Adjustment Expenses amounted toat$0.7 million and $0.4 million, respectively, during the three months ended March 31, 2015 and 2014 primarily as a result of increased litigation costs associated with first party property claims. Our liability for losses and loss adjustment expense ("Reserves") is more fully described below under "Critical Accounting Policies and Estimates".  These Reserves include both case reserves on reported claims and our reserves for IBNR losses. At each period-end date, the balance of our Reserves is based on our best estimate of the ultimate cost of each claim for those known cases and the IBNR loss reserves are estimated based primarily on our historical experience.

Policy Acquisition and Other Underwriting Expenses for the three months ended March 31, 2015 and 2014 of $4.4 million and $3.6 million, respectively, primarily reflect the amortization of deferred acquisition costs including commissions payable to agents for production and renewal of policies, premium taxes and other costs associated with the acquisition of insurance policies.The net increase from the corresponding period in 2014 is primarily attributable to the increase in our overall production.

General and Administrative Expenses for the three months ended March 31, 2015 and 2014 were $1.6 million and $1.5 million, respectively.The $100,000 increase is primarily attributable to increases in compensation and compensation-related costs, a direct result of our increase in head count from 40 employees as of March 31, 2014 to 46 employees as of March 31, 2015.

Income Taxes for the three months ended March 31, 2015 and 2014 were $0.5 millionand $0.3 million, respectively, for state and federal taxes resulting in an effective tax rate of 34.10% for 2015 and 34.25% for 2014.  The effective tax rate for the three months ended March 31, 2015 was impacted as a result of permanent tax differences on meals and entertainment and stock-based compensation.

Ratios:

The loss ratio applicable to the three months ended March 31, 2015 (losses and loss adjustment expenses incurred related to net premiums earned) was 56.89% compared to 27.05% for the three months ended March 31, 2014. The primary factors contributing to our increased loss ratio include additional catastrophe reinsurance ceded premiums and an increase in after cession losses due to higher litigation costs associated with first party property claims.

Our expenses  (policy acquisition, underwriting, and other operating expenses), as a percentage of direct earned premium was 32.78% for the three months ended March 31, 2015, compared to 34.82% for the three months ended March 31, 2014. The decreasein our expense ratio is primarily attributable to our ability to control acquisition and operating costs during the continued expansion of our book of business.

Another important measurement of operational effectiveness of the Company is the margin between our fee income and acquisition, underwriting, and other operating expenses due to our reliance on quota share reinsurance, under which approximately 90% of our property insurance premium is ceded to reinsurers. The Company receives a ceding commission from reinsurers for the production of the business.  This fee income, along with other policy related fees that the Company charges, are used to offset the underwriting and other operating expenses it incurs in the production of premium.  For the three months ended March 31, 2015 our acquisition and underwriting and other operating expenses were 85.48%, of policy related fee income, as compared to 104.64% for the three months ending March 31, 2014.

Due to the impact our reinsurance costs have on net premiums earned from period to period, our management believes the combined loss and expense ratio measured to total earned revenues is more relevant in assessing overall performance. The combined loss and expense ratio to total earned revenue for the three months ended March 31, 2015 was 81.36% compared to 88.14% for the three months ended March 31, 2014.

Seasonality of Our Business

Trends within our insurance business are seasonal, both as they relate to premium production and as they relate to incurred losses.  Premium production tends to increase during the late spring and summer due to increased home purchases, while our claims activity increase with the occurrence of convectional thunderstorms which often produce strong winds, tornadoes and hail typically during the period from March 1 through June 30 each year. With the commencement of our reinsurance treaty year on April 1, any variation in reinsurance costs, whether due to changes in rates or in total values insured will be reflected in our financial results beginning April 1 each year.

Reinsurance Agreements

The Company has completed negotiations with a panel of third party reinsurers on what management considers to be favorable terms, including extending coverage on the quota share portions of its reinsurance program to the end of 2016.

In addition, the Company completed the placement of an excess of loss catastrophe reinsurance program, effective April 1, 2015, with a panel of third party reinsurers. These treaties replace the Company's excess of loss reinsurance program which expired March 31, 2015 and provides coverage on the Company's retained risk on its propery insurance business. Approximately 60% of the program will be for a period of 21 months, while the remaining 40% will have a term of 12 months.

LIQUIDITY AND CAPITAL RESOURCES

  HAIC's operational goals of premium growth and state expansion are dependent upon capital and surplus.  

  Insurance companies capital and surplus levels are regularly monitored by the insurance department of its state of domicile. The primary tool used to monitor an insurance company's capital adequacy is the National Association of Insurance Commissioner's Risk Based Capital Model or "RBC". Remedial action of varying severity begin once an insurance company's RBC falls below 200%.  HAIC's ratio at December 31, 2014 was 458%.  The industry guidelines for net premium writings to surplus is approximately 3:1.  HAIC's net writings to surplus was .46 for the year ended December 31, 2014.

  Since inception, we have financed our cash flow requirements through net premiums received and investment income.  We believe our cash flow from net premiums and investment income will be sufficient to cover our cash outflows for at least the next 12 months.  Beyond the next 12 months, our primary cash flow sources will continue to be from premiums and investment income.

  In the insurance industry cash collected for premium from policies written is invested, interest and dividends earned thereon.   Our primary cash outflows are claim payments and operating expense.  In regard to claim payments, while the substantial portion of our claims are paid out within 90 – 180 days, the period of time payments are made varies by the circumstances of the claim, and loss settlement expenses can be paid over periods of  more than one year.  Additional cash outflow occurs through payments of underwriting costs such as commissions, taxes, payroll, and overhead expenses.

  We believe that we maintain sufficient liquidity to pay claims and expense obligations of HAIC as well as to satisfy any unforeseen events including inadequate premium rates and reserve deficiencies.  The Company maintains substantial reinsurance through reinsurers with superior financial ratings to provide sufficient liquidity in the case disasters impact the business we underwrite.

  Deferred policy acquisition costs "DAC" are reviewed quarterly by management and are expected to be recoverable from future income, including investment income.  However, the amount of DAC considered recoverable could be reduced in the near term if management's estimates of future premium and investment income is reduced, which could impair the Company's ability to recover these costs.

Cash Flows

      Our cash flows from operating and investing activities for the three months ended March 31, 2015 and 2014 are summarized below.

Summary of Cash Flows

	Three Months Ended
	March 31,
	2015				2014
Net cash provided by operating activities		$	3,966,094			$	1,562,479
Net cash provided by (used in) investing activities		$	(2,694,573	)		$	542,355
Net cash provided by financing activities		$	400			$	-

Cash Flows for the three months ended March 31, 2015

  Net cash provided by operating activities for the three months ended March 31, 2015 was approximately $4.0 million.  Significant factors in this movement consisted primarily of an increase in cash received from net written premiums and policy related fees less cash disbursed for operating expenses and losses and loss adjustment expenses.  Net cash used by investing activities of $2.7 million was primarily due to purchases of fixed-maturity securities, classified as available-for-sale of $0.5 million, purchases of short-term investments of $1.2 million and purchases of long-term investments of $4.4 million, offset by redemptions of short-term investments of $2.9 million and $0.5 million from an early call of a fixed-maturity security, classified as available for sale. Net cash provided by financing activities total $400 for proceeds from stock options exercised.

Cash Flows for the three months ended March 31, 2014

  Net cash provided by operating activities for the three months ended March 31, 2014 was approximately $1.6 million.  Significant factors in this movement consisted primarily of an increase in cash received from net written premiums and policy related fees less cash disbursed for operating expenses and losses and loss adjustment expenses.  Net cash provided by in investing activities of $0.5 million was primarily due to purchases of short-term investments of $2.7 million, offset by redemptions of short-term and long-term investments of $1.3 million and $1.9 million, respectively.

OFF-BALANCE SHEET ARRANGEMENTS

  As of March 31, 2015, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4) of Regulation S-K.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

  Our consolidated financial statements have been prepared in accordance with U.S. GAAP.  In the preparation of these consolidated financial statements, Company management has made estimates and judgments to develop amounts reported as part of our results.  Material estimates that are particularly susceptible to changes over time are primarily related to our claim reserves.  These include estimates for known claims, claims incurred but not yet reported and income taxes.

Reserves for Losses and Loss Adjustment Expenses

  We establish reserves for the estimated total unpaid cost of losses including loss adjustment expenses, or LAE.  Loss reserves reflect Company management's best estimate of the total cost of (i) claims that have been incurred but not yet paid, and (ii) claims that have been incurred, but not yet reported (IBNR).  Loss reserves that are established by Company management are not an exact calculation of our liability, but rather loss reserves represent management's best estimate for our Company's liability based on the application of actuarial techniques and other projection methodology, taking into consideration other facts and circumstances known as of the balance sheet date.  The process of setting reserves is complex and necessarily imprecise.  The impact of both internal and external variables on ultimate loss and LAE costs is difficult to estimate.  To arrive at its best estimate for reserves for losses and loss adjustment expenses, the Company uses damage estimating software developed and owned by acknowledged industry leader, Insurance Service Office.

Item 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

  Not applicable.

Item 4 – CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our Chief Executive Officer (our principal executive officer) and Chief Financial Officer (our principal financial officer) the Company has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report.   Based on this evaluation our Chief Executive Officer and our Chief Financial Officer have concluded these disclosure controls and procedures are effective as of March 31, 2015.

Changes in Internal Control Over Financial Reporting

The Company does not have any changes in our internal controls over financial reporting to report for the quarter ended March 31, 2015 which have materially affected or would likely materially affect our internal control over financial reporting.

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating the disclosures and procedures, we recognize that any controls and procedures no matter how well designed and operated can produce only reasonable assurance of achieving the desired control objectives.  In addition, implementation of possible controls and procedures depends on management's judgment in evaluation of their benefits relative to cost.

PART II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

The Company is party to a number of legal actions as a result of claims filed by policyholders.  These legal actions routinely arise in the ordinary course of our insurance business.  Although we cannot predict with certainty the ultimate resolution of the lawsuits asserted against us, we do not believe that any currently pending legal proceedings to which we are a party will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

ITEM 1a – RISK FACTORS

  There have been no material changes to the risk factors previously disclosed in the section entitled, "Risk Factors", in our Form 10-K which was filed with the SEC on March 27, 2015.

ITEM 2 – UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) Sales of Unregistered Securities

 None.

(b) Use of Proceeds

 None.

(c) Repurchase of Securities

 None.

18

ITEM 6 – EXHIBITS

31.1*	Certification of Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
32*	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*	XBRL INSTANCE DOCUMENT
101.SCH*	XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT
101.CAL*	XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT
101.DEF*	XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT
101.LAB*	XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT
101.PRE*	XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT

* Filed herewith

19

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		HOMEOWNERS OF AMERICA HOLDING CORPORATION
May 14, 2015	By:	/s/ Spencer Tucker
		Spencer Tucker
		Chief Executive Officer
May 14, 2015	By:	/s/ Michael C. Rosentraub
		Michael C. Rosentraub
		Chief Financial Officer

20

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

SECTION 302 OF THE SARBANES OXLEY ACT OF 2002

I, Spencer Tucker, certify that:

1. I have reviewed this report on Form 10-Q for the quarter ended March 31, 2015 of Homeowners of America Holding Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 14, 2015

/s/ Spencer Tucker

Name: Spencer Tucker

Title: Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

SECTION 302 OF THE SARBANES OXLEY ACT OF 2002

I, Michael C. Rosentraub, certify that:

1. I have reviewed this report on Form 10-Q for the quarter ended March 31, 2015 of Homeowners of America Holding Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

May 14, 2015

/s / Michael C. Rosentraub

Name: Michael C. Rosentraub

Title: Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Homeowners of America Corporation. (the "Company") on Form 10-Q for the fiscal period ended March 31, 2015 as filed with the Securities and Exchange Commission (the "Report"), the undersigned principal executive officer and principal financial officer of the Company, each hereby certify, solely for purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

1.	The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and
2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/ Spencer Tucker		/s/ Michael C. Rosentraub
Spencer Tucker		Michael C. Rosentraub
Chief Executive Officer		Chief Financial Officer
May 14, 2015		May 14, 2015

The foregoing certification is being furnished (but not filed) solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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PROPERTY, EQUIPMENT, AND SOFTWARE NET (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Total, at cost	$ 1,325,804		$ 1,321,035
Less accumulated depreciation and amortization	(1,014,902)		(976,540)
Property and equipment, net	310,902		344,495
Depreciation, amortization and accretion, net	38,362	27,295
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total, at cost	234,761		231,860
Useful life (in years)	3 years
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Total, at cost	17,409		17,409
Useful life (in years)	5 years
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total, at cost	142,450		142,450
Useful life (in years)	5 years
Software Installation and Development [Member]
Property, Plant and Equipment [Line Items]
Total, at cost	$ 931,184		$ 929,316
Useful life (in years)	3 years

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INCOME TAXES (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
INCOME TAXES [Abstract]
Income tax expense (benefit)	$ 536,806	$ 255,912
Income tax rate (in hundredths)	34.10%	34.25%

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STOCK BASED COMPENSATION, Compensation Expense (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Stock-Based Compensation Expense [Abstract]
Total gross compensation expense	$ 8,737	$ 35,465
Total tax benefit associated with compensation expense	(172)	(7,163)
Total net compensation expense	8,565	28,302
General and Administrative Expense [Member]
Stock-Based Compensation Expense [Abstract]
Total gross compensation expense	$ 8,737	$ 35,465

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REINSURANCE (Tables)

3 Months Ended

Mar. 31, 2015

REINSURANCE [Abstract]

Effects of reinsurance on premiums written and earned

The effects of reinsurance on premiums written and earned were as follows, for the three months ended March 31, 2015 and March 31, 2014:

	Three Months Ended March 31, 2015								Three Months Ended March 31, 2014
	Written				Earned				Written				Earned
Direct premiums		$	18,258,033			$	18,433,681			$	14,428,945			$	14,444,123
Ceded premiums			(16,166,379	)			(17,243,390	)			(12,883,015	)			(13,146,456	)
Net Premiums		$	2,091,654			$	1,190,291			$	1,545,930			$	1,297,667

Summary of reinsurance balances

Following is a summary of HAIC's reinsurance balances under the above described reinsurance treaties as of and for the three months ended March 31, 2015 and December 31, 2014:

	March 31, 2015		December 31, 2014
Ceded premiums payable	$	8,449,205	$	4,342,874
Ceded loss adjustment expenses	$	825,508	$	4,763,808
Ceded loss and loss adjustment expense reserve	$	13,650,287	$	13,995,400
Ceded unearned premium reserve	$	35,284,456	$	35,442,177
Ceded earned premiums	$	17,243,390	$	60,484,640

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2015

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Restricted cash and investments

The following table provides the Company's restricted cash and investments as of March 31, 2015 and December 31, 2014.

Restricted cash and investments	March 31, 2015		December 31, 2014
Money Market	$	300,000	$	300,000
Certificates of Deposit		2,460,000		3,490,000
US Treasury Bond		542,824		539,654
	$	3,302,824	$	4,329,654

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REINSURANCE, Effects of Reinsurance on Premiums Written and Earned (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
REINSURANCE [Abstract]
Direct premiums, Written	$ 18,258,033	$ 14,428,945
Ceded premiums, Written	(16,166,379)	(12,883,015)
Net Premiums, Written	2,091,654	1,545,930
Direct premiums, Earned	18,433,681	14,444,123
Ceded premiums, Earned	(17,243,390)	(13,146,456)
Net premiums earned	$ 1,190,291	$ 1,297,667

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STOCKHOLDERS' EQUITY (Details) (USD $)	0 Months Ended		3 Months Ended		12 Months Ended
	Feb. 02, 2015	Feb. 02, 2015	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
STOCKHOLDERS' EQUITY [Abstract]
Preferred stock, shares authorized (in shares)			20,500,000		20,500,000
Preferred stock, convertible cumulative percentage (in hundredths)			12.50%		12.50%
Preferred stock, par value (in dollars per share)			$ 0.0001		$ 0.0001
Preferred stock, shares issued (in shares)			0		0
Preferred stock, shares outstanding (in shares)			0		0
Common stock, shares authorized (in shares)			40,000,000	40,000,000	40,000,000
Common stock, shares issued (in shares)			17,708,125	17,469,602	17,479,852
Common stock, shares outstanding (in shares)			16,397,125	16,119,602	16,168,852
Common stock, par value (in dollars per share)		$ 0.66	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, voting rights			1	1	1
Common stock, compensation for management services		$ 150,000	$ 150,000	$ 150,000
Common stock issued (in shares)	227,273
Common stock warrants issued			$ 0	$ 0

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INVESTMENTS (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
INVESTMENTS [Abstract]
Investment income, net of investment expenses	$ 16,132	$ 7,447
Change in unrealized gain on investments:
Unrealized gain arising from the period	6,676	0
Schedule of Investments [Line Items]
Financial Assets Book Value	11,146,881		8,451,881
Financial Assets Fair Value / Carrying Value	11,146,881		8,451,881
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	3,787,960		3,827,268
Available-for-sale Securities, Debt Securities, Current	3,791,487		3,827,245
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract]
Less than one year, Amortized Cost Basis	570,394		570,236
One to five years, Amortized Cost Basis	1,926,643		1,985,297
Five to ten years, Amortized Cost Basis	61,590		162,124
More than ten years, Amortized Cost Basis	1,768,935		1,649,169
Total, Amortized Cost Basis	4,327,562		4,366,826
Fair value Rolling Maturity [Abstract]
Less than one year, Fair Value	569,076		569,734
One to five years, Fair Value	1,928,435		1,981,134
Five to ten years, Fair Value	62,004		162,519
More than ten years, Fair Value	1,774,796		1,653,512
Total, Fair Value	4,334,311		4,366,899
Obligations of States, Municipalities and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	3,787,960		3,827,268
Gross Unrealized Gain	8,618		6,331
Gross Unrealized Losses	(5,091)		(6,354)
Available-for-sale Securities, Debt Securities, Current	3,791,487		3,827,245
U.S. Treasury - Held as Restricted [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	539,602		539,558
Gross Unrealized Gain	3,222		96
Gross Unrealized Losses	0		0
Available-for-sale Securities, Debt Securities, Current	542,824		539,654
Fixed Maturities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	4,327,562		4,366,826
Gross Unrealized Gain	11,840		6,427
Gross Unrealized Losses	(5,091)		(6,354)
Available-for-sale Securities, Debt Securities, Current	4,334,311		4,366,899
Restricted certificates of deposit [Member]
Schedule of Investments [Line Items]
Financial Assets Book Value	2,460,000		3,490,000
Financial Assets Fair Value / Carrying Value	2,460,000		3,490,000
Range of Maturities	Less than 1 year		Less than 1 year
Restricted certificates of deposit [Member] | Maximum [Member]
Schedule of Investments [Line Items]
Interest Rates (in hundredths)	1.40%		1.40%
Restricted certificates of deposit [Member] | Minimum [Member]
Schedule of Investments [Line Items]
Interest Rates (in hundredths)	0.30%		0.10%
Restricted cash [Member]
Schedule of Investments [Line Items]
Financial Assets Book Value	300,000		300,000
Financial Assets Fair Value / Carrying Value	300,000		300,000
Range of Maturities	Less than 1 year		Less than 1 year
Long-term investments [Member]
Schedule of Investments [Line Items]
Financial Assets Book Value	7,840,000		3,430,000
Financial Assets Fair Value / Carrying Value	7,840,000		3,430,000
Range of Maturities	More than 1 year		More than 1 year
Long-term investments [Member] | Maximum [Member]
Schedule of Investments [Line Items]
Interest Rates (in hundredths)	1.50%		1.50%
Long-term investments [Member] | Minimum [Member]
Schedule of Investments [Line Items]
Interest Rates (in hundredths)	0.60%		0.75%
Short-term investments [Member]
Schedule of Investments [Line Items]
Financial Assets Book Value	546,881		1,231,881
Financial Assets Fair Value / Carrying Value	$ 546,881		$ 1,231,881
Range of Maturities	Less than 1 year		Less than 1 year
Short-term investments [Member] | Maximum [Member]
Schedule of Investments [Line Items]
Interest Rates (in hundredths)	0.75%		0.70%
Short-term investments [Member] | Minimum [Member]
Schedule of Investments [Line Items]
Interest Rates (in hundredths)	0.05%		0.35%

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COMMITMENTS AND CONTINGENCIES (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]
Operating leases, rent expense	$ 42,426	$ 32,328
2015 (9 months)	125,136
2016	174,709
2017	91,284
2018	22,188
2019	12,519
Total	$ 425,836

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STOCK BASED COMPENSATION, Future Compensation Expense (Details) (USD $)	Mar. 31, 2015
STOCK BASED COMPENSATION [Abstract]
Gross unrecognized compensation expense, remainder of 2015	$ 26,208
Tax benefit associated with unrecognized compensation expense, remainder of 2015	(515)
Net unrecognized compensation expense, remainder of 2015	25,693
Gross unrecognized compensation expense, Year ending December 31, 2016	34,944
Tax benefit associated with unrecognized compensation expense, Year ending December 31, 2016	(686)
Net unrecognized compensation expense, Year ending December 31, 2016	34,258
Gross unrecognized compensation expense, Year ending December 31, 2017	34,944
Tax benefit associated with unrecognized compensation expense, Year ending December 31, 2017	(686)
Net unrecognized compensation expense, Year ending December 31, 2017	34,258
Gross unrecognized compensation expense, Year ending December 31, 2018	28,365
Tax benefit associated with unrecognized compensation expense, Year ending December 31, 2018	(556)
Net unrecognized compensation expense, Year ending December 31, 2018	27,809
Gross unrecognized compensation expense, Year ending December 31, 2019	81
Tax benefit associated with unrecognized compensation expense, Year ending December 31, 2019	0
Net unrecognized compensation expense, Year ending December 31, 2019	$ 81

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RECENT ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2015

RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]

RECENT ACCOUNTING PRONOUNCEMENTS

2. RECENT ACCOUNTING PRONOUNCEMENTS

There have been no recent accounting pronouncements or changes in recent accounting pronouncements during the three months ended March 31, 2015, as compared to those described in our Annual Report on Form 10-K for the year ended December 31, 2014, that are of significance, or potential significance, to the Company.

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EARNINGS (LOSS) PER SHARE (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Basic earnings per common share [Abstract]
Net income	$ 1,018,977	$ 475,245
Cumulative dividend	0	0
Adjusted net income	1,018,977	475,245
Weighted average common shares outstanding (in shares)	16,320,867	16,023,448
Basic earnings per common share	$ 0.06	$ 0.03
Diluted earnings per common share [Abstract]
Net income	$ 1,018,977	$ 475,245
Weighted average common shares outstanding (in shares)	16,320,867	16,023,448
Effect of diluted securities [Abstract]
Stock Options (in shares)	1,286,250	902,500
Diluted common shares outstanding (in shares)	17,607,117	16,925,948
Diluted earnings per common share	$ 0.06	$ 0.03

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DEFERRED POLICY ACQUISITION COSTS (Tables)

3 Months Ended

Mar. 31, 2015

DEFERRED POLICY ACQUISITION COSTS [Abstract]

Deferred policy acquisition costs

Changes in deferred policy acquisition costs for the three months ended March 31, 2015 and March 31, 2014, are as follows:

	March 31, 2015			March 31, 2014
Deferred policy acquisition charges, beginning of the period	$	7,897,806		$	6,214,334
Capitalized costs		3,541,680			2,834,495
Amortized costs		(3,578,168	)		(2,832,776	)
Deferred policy acquisition charges, end of the period	$	7,861,318		$	6,216,053

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PROPERTY, EQUIPMENT, AND SOFTWARE NET (Tables)

3 Months Ended

Mar. 31, 2015

PROPERTY, EQUIPMENT, AND SOFTWARE NET [Abstract]

Property, equipment and software, net

6. PROPERTY, EQUIPMENT, AND SOFTWARE NET

Property, equipment, and software net consist of the following as of March 31, 2015 and December 31, 2014, respectively:

	March 31, 2015			December 31, 2014			Useful Life
Computer equipment	$	234,761		$	231,860		3 years
Office equipment		17,409			17,409		5 years
Furniture and fixtures		142,450			142,450		5 years
Software installation and development		931,184			929,316		3 years
Total, at cost		1,325,804			1,321,035
Less accumulated depreciation and amortization		(1,014,902	)		(976,540	)
Property and equipment, net	$	310,902		$	344,495

Depreciation and amortization expense for property, equipment and software totaled $38,362 and $27,295 for the three months ended March 31, 2015 and 2014, respectively.

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STOCK BASED COMPENSATION, Incentive Plans (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
2005 Management Incentive Plan [Member]
Incentive Awards [Abstract]
Shares authorized (in shares)	789,475
Total options granted to purchase shares of common stock (in shares)	783,750	783,750
2013 Equity Compensation Plan [Member]
Incentive Awards [Abstract]
Shares authorized (in shares)	2,925,000
Total options granted to purchase shares of common stock (in shares)	1,965,000
Shares of common stock granted in the form of a stock award (in shares)	39,000

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UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES (Tables)

3 Months Ended

Mar. 31, 2015

UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES [Abstract]

Reserve balances for losses and LAE, gross of reinsurance

The following table provides the reconciliation of the beginning and ending reserve balances for losses and LAE, gross of reinsurance for the three months ended March 31, 2015 and for March 31, 2014:

	Three Months Ended March 31,
	2015			2014
Reserve for losses and LAE, beginning of period	$	15,009,506		$	15,884,062
Reinsurance recoverables on losses and LAE		(13,995,400	)		(15,090,175	)
Reserve for losses and LAE, net of reinsurance recoverables at beginning of year		1,014,106			793,887
Add provision for claims and LAE occurring in:
Current year		390,477			98,976
Prior years		286,693			252,000
Net incurred losses and LAE during the current period		677,170			350,976
Deduct payments for claims and LAE occurring in:
Current year		225,615			167,599
Prior years		347,693			222,628
Net claim and LAE payments during the current period		573,308			390,227
Reserve for losses and LAE, net of reinsurance recoverables, at end of period		1,117,968			754,636
Reinsurance recoverables on losses and LAE		13,650,287			16,707,683
Reserve for losses and LAE, end of period	$	14,768,255		$	17,462,319

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EARNINGS (LOSS) PER SHARE (Tables)

3 Months Ended

Mar. 31, 2015

EARNINGS (LOSS) PER SHARE [Abstract]

Basic and diluted earnings per share

	Three Months Ended
	March 31,
	2015		2014
Basic earnings per common share
Net income	$	1,018,977	$	475,245
Cumulative dividend		-		-
Adjusted net income	$	1,018,977	$	475,245
Weighted average common shares outstanding		16,320,867		16,023,448
Basic earnings per common share	$	0.06	$	0.03
	Three Months Ended
	March 31,
		2015		2014
Diluted earnings per common share
Net income	$	1,018,977	$	475,245
Weighted average common shares outstanding		16,320,867		16,023,448
Effect of diluted securities:
Stock options		1,286,250		902,500
Diluted common shares outstanding		17,607,117		16,925,948
Diluted earnings per common share	$	0.06	$	0.03

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2015

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Homeowners of America Holding Corporation ("HAHC") is an insurance holding company established to hold insurance entities for the purpose of marketing homeowner's insurance products on a national basis. HAHC owns 100% of Homeowners of America Insurance Company ("HAIC"). HAIC is domiciled in Texas, licensed in multiple states and is authorized to write various forms of homeowners and auto insurance. Coverage is concentrated in Texas. HAHC also owns 100% of Homeowners of America MGA, Inc. ("MGA"), a Texas Corporation, formed as a captive managing general agency to produce business in Texas and to provide marketing and claims administration services for HAIC. HAHC, along with its subsidiaries HAIC and MGA, are collectively referred to as "the Company".

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Homeowners of America Holding Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Certain reclassifications of prior year amounts have been made to conform to the current year presentation.

Cash and Cash Equivalents

Cash and cash equivalents include cash and highly liquid short-term investments, with original maturities of three months or less. The amount is carried at cost, which approximates fair value. At March 31, 2015 and December 31, 2014, cash and cash equivalents consist of cash on deposit with financial institutions, as well as money market mutual funds.

General and other accrued expenses payable as of March 31, 2015 and December 31, 2014, include $1.1 million and $1.7 million, respectively, of checks issued in excess of cash book balances, not yet presented for payment.

Investments

The Company's investments are comprised of short-term, restricted, long-term investments and fixed-maturity securities classified as available-for-sale as of March 31, 2015 and December 31, 2014. Restricted investments and long-term investments are described below. Short-term investments include certificates of deposit with original maturities greater than three months and maturities of one year or less. Due to the short-term nature of these investments, significant changes in prevailing interest rates and economic conditions should not adversely affect the timing and amount of cash flows on such investments or their related values. Accordingly, certificates of deposit are carried at cost, which approximates fair value. Fixed-maturity securities are classified as available-for-sale when it is not management's intent to make profits by buying and selling the securities within a short period of time or when it is not management's intent to hold the securities to maturity.  Fixed-maturity securities classified as available-for-sale are carried at fair value. The unrealized holding gains and losses, net of applicable deferred income taxes, are shown as a separate component of stockholders' equity as a part of accumulated other comprehensive income (loss) and, as such, are not included in the determination of net income (loss).

As of March 31, 2015 and December 31, 2014, the Company has restricted cash and investments, in the amount of $3.3 million and $4.3 million, respectively, pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. Restricted assets are shown separately in the accompanying consolidated balance sheets as "Restricted cash and investments" and include money market accounts and certificates of deposits. "Restricted fixed-maturity securities, classified as available-for-sale" are shown separately in the accompanying consolidated balance sheets and recorded at fair value. With the approval of the Departments of Insurance, the Company may exchange the investments with other funds or investments. In respect to certificates of deposit, management intends to hold the portion of these restricted investments to their maturity. As such, these restricted certificates of deposit are carried at cost, which approximates fair value. Interest earned on these investments inures to the benefit of the Company.

The following table provides the Company's restricted cash and investments as of March 31, 2015 and December 31, 2014.

Restricted cash and investments	March 31, 2015		December 31, 2014
Money Market	$	300,000	$	300,000
Certificates of Deposit		2,460,000		3,490,000
US Treasury Bond		542,824		539,654
	$	3,302,824	$	4,329,654

As of March 31, 2015 and December 31, 2014, the Company's investments also included certificates of deposit that mature more than one year after the balance sheet date and are reflected on the consolidated balance sheets as Long-term investments. Based on management's intent to hold to maturity, these investments are carried at cost. Cost approximates fair value based on the rates currently offered for deposits of similar remaining maturities.

The Company's investments in certificates of deposits and money market accounts do not qualify as securities as defined in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 320, Investment – Debt and Equity Securities. Accordingly, the fair value disclosures required by FASB ASC Topic 820, Fair Value Measurements and Disclosures are not provided. The Company's fixed-maturity securities classified as available-for-sale are "marked to market" as of the end of each calendar quarter.  As of that date, unrealized gains and losses are recorded to Accumulated Other Comprehensive Income, except where such securities are deemed to be other-than-temporarily impaired. Where applicable, the Company assesses investments of an issuer currently carrying a net unrealized loss. If in management's judgment, the decline in value is other than temporary, the cost of the investment is written down to fair value with a corresponding charge to earnings. Factors considered in determining whether an impairment exists include financial condition, business prospects and creditworthiness of the issuer, the length of time and magnitude that the asset value has been less than cost, and the ability and intent to hold such investments until the fair value recovers.

Comprehensive Income

FASB ASC Topic 220 - Comprehensive Income, requires that recognized revenues, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the consolidated balance sheet, these items, along with net income (loss), are components of comprehensive income. The Company characterizes their fixed income portfolio as available-for-sale securities when it is not management's intent to make profits by buying and selling the securities within a short period of time or when it is not management's intent to hold the securities to maturity, with appropriate adjustments to other comprehensive income. For the three months ended March 31, 2015, the Company recorded $6,676 of unrealized gains on available-for-sale securities in other comprehensive income.  There were no qualifying items reported in other comprehensive income for the three months ended March 31, 2014.

Recognition of Premium Revenues

Premiums are recognized as revenue on a daily pro rata basis over the policy term. The portion of premiums related to the unexpired term of policies in force as of the end of the measurement period and to be earned over the remaining term of those polices, is deferred and reported as unearned premiums.

Ceding Commissions and Reinsurance Profit Share

Ceding commissions represent acquisition costs associated with insurance risk ceded to reinsurers and is earned on a pro-rata basis over the life of the associated policy. Reinsurance profit share is additional ceding commissions payable to the Company based upon attaining specified loss ratios within individual treaty years.  Reinsurance profit share income is recognized when earned, which includes adjustments to earned reinsurance profit share based on changes in incurred losses and reserves for future loss development.

Policy Fees

Policy fee income includes application fees which are intended to reimburse the Company for a portion of the costs incurred in establishing the insurance. Policy fees on policies where premium is traditionally paid in full upon inception of the policy are recognized when written, while fees charged on policies where premiums are paid in installments, are recognized when collected.

Loss Adjustment and Other Fee Income

Loss adjustment and other fee income is recognized as income when collected. There is no amount over 5% of total revenue within this classification on the consolidated statements of operations for the three months ended March 31, 2015 and 2014.

Property, Equipment and Software

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets, which range from three to five years. The cost and related accumulated depreciation of assets sold or disposed are removed from the accounts and the resulting gain or loss is included in the consolidated statements of operations. Maintenance and repairs are expensed as incurred.

Software installation and development is stated at cost, net of accumulated amortization. Amortization is calculated on a straight-line basis method over three years.

Impairment of Long-Lived Assets

Long-lived assets, such as property, equipment and software, are reviewed for impairment whenever business events or circumstances could lead to or indicate that the value of the asset may not be recoverable. The assessment of possible impairment is based on whether the carrying amount of the assets exceeds its fair value. The Company uses estimates of undiscounted future cash flows in determining the recoverability of long-lived assets. As of March 31, 2015 and December 31, 2014, no impairment has been recorded.

Deferred Policy and Acquisition Costs

Deferred policy acquisitions costs ("DAC") as of March 31, 2015 and December 31, 2014, consist of commissions, premium taxes and policy underwriting and production expenses which are incurred through and vary directly with, the level of production of new and renewal insurance business and are amortized over the terms of the policies they relate to. The method used in calculating DAC limits the amount of the deferred cost to their estimated realizable value, which gives effect to allocating their expense along with other period costs associated with the insurance business, in relation to the amount of gross premium earned on policies to which they relate and investment income. DAC is reviewed to determine if it is recoverable from future income, including investment income. The amount of DAC considered recoverable could be reduced in the near term if management's estimates of future premium and investment income is reduced which could impair the Company's ability to recover these costs.

Reserve for Losses and Loss Adjustment Expenses

The liability for losses and loss adjustment expenses ("LAE") are estimates of the amounts required to cover known incurred losses and LAE, developed through the review and assessment of loss reports, along with the development of known claims. In addition, loss and loss adjustment expense reserves include management's estimate of an amount for losses incurred but not reported ("IBNR"), determined from reviewing overall loss reporting patterns as well as the loss development cycles of individual claim cases. Such liabilities are necessarily based on estimates and while management believes that the amount is adequate, the ultimate liability may be more or less than the amounts provided. The approach and methods for making such estimates and for establishing the resulting liability are continually reviewed and any adjustments are reflected in current earnings.

Due and Deferred Premiums

Due and deferred premiums consist of uncollateralized premiums and agents' balances in the course of collection as well as premiums booked but not yet due.

Reinsurance

In the normal course of business, the Company seeks to reduce the overall exposure to losses that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk with other insurance enterprises or reinsurers. The Company uses only quality, financially rated reinsurers and continually monitors the financial ratings of these companies through its brokers. The amount and type of reinsurance purchased each year is based on management's analysis of liquidity and its estimate of its probable maximum loss and the conditions within the reinsurance market. The Company continually monitors its risk exposure through the use of the AIR modeling system and other modeling tools provided by its reinsurance brokers. Reinsurance premiums, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums paid for reinsurance are reported as reductions of earned premium income.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss carryforwards, and liabilities are measured using enacted tax rates expected to be recovered or settled.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  In assessing the realizable value of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.

Uncertain Tax Positions

The Company recognizes uncertain tax positions in the consolidated financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns, and that its accruals for tax liabilities are adequate for all open tax years based on an assessment of many factors including experience and interpretations of tax laws applied to the facts of each matter. At March 31, 2015, the Company's tax years from 2010 through 2014 remain subject to examination.

Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's primary areas of estimate are for liabilities for unpaid losses and loss adjustment expenses, deferred policy acquisition costs, deferred tax asset valuation, and reinsurance. Actual results could differ significantly from those estimates.

Fair Value of Cash, Cash Equivalents and Short-term Investments

The carrying value for the Company's cash and cash equivalents and short-term investments approximate fair values as of March 31, 2015 and December 31, 2014 due to their short-term nature. Fair value for securities are based on the framework for measuring fair value established by FASB ASC Topic 820, Fair Value Measurements and Disclosures.

Fair Value Fixed-Maturity Securities held as Available-for-Sale

The Company's fixed-maturity securities held as available-for-sale are carried at fair value as of March 31, 2015 and December 31, 2014. Fair value for securities are based on the framework for measuring fair value established by FASB ASC Topic 820, Fair Value Measurements and Disclosures.

Stock Based Compensation

The Company accounts for stock-based compensation under the fair value recognition provisions of FASB ASC Topic 718 – Compensation – Stock Compensation, which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock issuances based on estimated fair values. In accordance with FASB ASC Topic 718, the Company recognizes stock-based compensation, if any, in the consolidated statements of operations on a straight line basis over the vesting period of the stock award.  For those stock awards vesting 100% at the issue date, the Company recognizes stock-based compensation immediately.

Earnings (Loss) Per Share

Basic earnings (loss) per share of common stock is computed by dividing net income or loss, less cumulative preferred stock dividends for the period whether or not earned or paid, by the weighted-average number of common shares during the period.

Diluted earnings (loss) per share of common stock is computed by dividing net income or loss attributable to common stockholders, adjusted for the effect of potentially dilutive securities, by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include convertible notes payable, outstanding convertible preferred stock and common stock options.

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STOCK BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2015

STOCK BASED COMPENSATION [Abstract]

Stock option plan activity

A summary of the activity of the Company's stock option plan for the three months ended March 31, 2015 and March 31, 2014 is as follows:

	Number of Options		Weighted Avg Exercise Price		Weighted Avg Remaining Cont. Term		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2014		2,738,500	$	0.59		7.32	$	226
Outstanding at March 31, 2015		2,737,500	$	0.59		7.07	$	747
Exercisable at March 31, 2015		1,286,250	$	0.67		5.70	$	262
Outstanding at December 31, 2013		2,708,750	$	0.58		8.41	$	4
Outstanding at March 31, 2014		2,708,750	$	0.58		8.16	$	21
Exercisable at March 31, 2014		902,500	$	0.73		5.55	$	6

Stock-based compensation expense

The Company records stock-based compensation expense related to granting stock options in underwriting and other operating expenses.  During the three months ended March 31, 2015, and 2014, the Company did not grant any stock options.  The Company recognized compensation expense as follows for the three months ended March 31:

	Three Months Ended March 31,
	2015				2014
Total gross compensation expense		$	8,737			$	35,465
Total tax benefit associated with compensation expense			(172	)			(7,163	)
Total net compensation expense		$	8,565			$	28,302

Future compensation expense

As of March 31, 2015, the Company expects to record compensation expense in the future as follows:

	Nine			Year ending December 31,
	months
	ending
	December 31, 2015			2016			2017			2018			2019
Total gross unrecognized compensation expense	$	26,208		$	34,944		$	34,944		$	28,365		$	81
Tax benefit associated with unrecognized compensation expense		(515	)		(686	)		(686	)		(556	)		-
Total net unrecognized compensation expense	$	25,693		$	34,258		$	34,258		$	27,809		$	81

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DEFERRED POLICY ACQUISITION COSTS (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
DEFERRED POLICY ACQUISITION COSTS [Abstract]
Deferred policy acquisition costs	$ 7,861,318	$ 6,216,053	$ 7,897,806
Deferred Acquisition Costs [Line Items]
Deferred policy acquisition charges, beginning of the period			7,897,806
Deferred policy acquisition charges, end of the period	7,861,318	6,216,053	7,897,806
Deferred Policy Acquisition Costs [Member]
DEFERRED POLICY ACQUISITION COSTS [Abstract]
Deferred policy acquisition costs	7,861,318	6,216,053
Deferred Acquisition Costs [Line Items]
Deferred policy acquisition charges, beginning of the period	7,897,806	6,214,334
Capitalized costs	3,541,680	2,834,495
Amortized costs	(3,578,168)	(2,832,776)
Deferred policy acquisition charges, end of the period	$ 7,861,318	$ 6,216,053

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REGULATORY REQUIREMENTS AND RESTRICTIONS (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
REGULATORY REQUIREMENTS AND RESTRICTIONS [Abstract]
Minimum in capital stock requires by insurance regulator	$ 2,500,000
Minimum in surplus requires by insurance regulator	2,500,000
Statutory accounting practices, statutory capital and surplus, balance	13,544,812	12,317,735
Statutory accounting practices statutory capital balance	3,000,000	3,000,000
Statutory accounting practices statutory surplus balance	10,544,812	9,317,735
Statutory accounting practices, future dividend payments restrictions	The maximum dividend that may be paid without approval of the Insurance Commissioner is limited to the greater of 10% of the statutory surplus at the end of the preceding calendar year or the statutory net income of the preceding calendar year
Restricted cash and investments, current, total	3,300,000	4,300,000
Restricted Assets	$ 0

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Assets:
Cash and cash equivalents	$ 6,920,199	$ 5,648,278
Short-term investments	546,881	1,231,881
Restricted cash and investments	2,760,000	3,790,000
Restricted fixed-maturity securities, available-for-sale, at fair value (amortized cost $539,602 as of March 31, 2015 and $539,558 as of December 31, 2014)	542,824	539,654
Fixed-maturity securities, available-for-sale, at fair value (amortized cost $3,787,960 as of March 31, 2015 and $3,827,268 as of December 31, 2014)	3,791,487	3,827,245
Long-term investments	7,840,000	3,430,000
Accrued investment income	68,414	55,908
Due and deferred premiums	4,355,246	5,089,131
Balance due from reinsurers	55,805,474	54,157,528
Property, equipment and software, net	310,902	344,495
Deferred policy acquisition costs	7,861,318	7,897,806
Prepaid expenses and other	311,431	552,728
Deferred tax assets, net	1,499,484	1,517,935
Total assets	92,613,660	88,082,589
Liabilities:
Loss and loss adjustment expenses	14,768,255	15,009,506
Advance premiums	179,313	74,172
Ceded reinsurance premiums payable	8,449,205	4,342,874
Unearned premiums	39,846,287	40,021,934
Unearned ceding commissions	11,151,736	11,200,317
Commissions payable, reinsurers and agents	4,031,055	3,754,929
General and other accrued expenses payable	2,100,686	2,232,547
Income tax payable	170,784	0
Taxes, licenses and other fees payable	51,021	765,782
Total liabilities	80,748,342	77,402,061
Stockholders' equity:
Common stock, $0.0001 par value per share; 40,000,000 shares authorized; 17,708,125 shares issued and 16,397,125 shares outstanding as of March 31, 2015 and 17,479,852 shares issued and 16,168,852 shares outstanding as of December 31, 2014	1,640	1,617
Treasury stock, $0.0001 par value per share; 1,311,000 common shares as of March 31, 2015 and December 31, 2014	(131)	(131)
Additional paid-in-capital	6,368,379	6,209,265
Accumulated other comprehensive income	6,749	73
Retained earnings	5,488,681	4,469,704
Total stockholders' equity	11,865,318	10,680,528
Total liabilities and stockholders' equity	$ 92,613,660	$ 88,082,589

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STOCK BASED COMPENSATION, Stock Option Plan (Details) (Management Incentive Plan 2005 and Equity Compensation Plan 2013 [Member], Employee Stock Option [Member], USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
Management Incentive Plan 2005 and Equity Compensation Plan 2013 [Member] | Employee Stock Option [Member]
Options [Roll Forward]
Number of options outstanding (in shares)	2,737,500	2,708,750	2,738,500	2,708,750
Number of options exercisable (in shares)	1,286,250	902,500
Weighted average exercise price, outstanding (in dollars per shares)	$ 0.59	$ 0.58	$ 0.59	$ 0.58
Weighted average exercise price, exercisable (in dollars per share)	$ 0.67	$ 0.73
Weighted average remaining contractual term, outstanding	7 years 0 months 25 days	8 years 1 month 28 days	7 years 3 months 25 days	8 years 4 months 28 days
Weighted average remaining contractual term, exercisable	5 years 8 months 12 days	5 years 6 months 18 days
Aggregate intrinsic value, outstanding	$ 747	$ 21	$ 226	$ 4
Aggregate intrinsic value, exercisable	$ 262	$ 6
Options granted	0

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (USD $)	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income, Net of Tax [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2013	$ 1,583	$ (135)	$ 5,969,550	$ 0	$ 2,305,579	$ 8,276,577
Balance (in shares) at Dec. 31, 2013	15,831,140	1,350,000
Net income	0	0	0	0	475,245	475,245
Total other comprehensive income, net of income taxes	0	0	0	0	0	0
Stock options exercised	0	0	0	0	0	0
Common stock issued	29	0	149,971	0	0	150,000
Common stock issued (in shares)	288,462
Stock-based compensation	0	0	35,465	0	0	35,465
Balance at Mar. 31, 2014	1,612	(135)	6,154,986	0	2,780,824	8,937,287
Balance (in shares) at Mar. 31, 2014	16,119,602	1,350,000
Balance at Dec. 31, 2014	1,617	(131)	6,209,265	73	4,469,704	10,680,528
Balance (in shares) at Dec. 31, 2014	16,168,852	1,311,000
Net income	0	0	0	0	1,018,977	1,018,977
Total other comprehensive income, net of income taxes	0	0	0	6,676	0	6,676
Stock options exercised	0	0	400	0	0	400
Stock options exercised (in shares)	1,000	0
Common stock issued	23	0	149,977	0	0	150,000
Common stock issued (in shares)	227,273	0
Stock-based compensation	0	0	8,737	0	0	8,737
Balance at Mar. 31, 2015	$ 1,640	$ (131)	$ 6,368,379	$ 6,749	$ 5,488,681	$ 11,865,318
Balance (in shares) at Mar. 31, 2015	16,397,125	1,311,000

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	3 Months Ended				12 Months Ended
	Mar. 31, 2015		Mar. 31, 2014		Dec. 31, 2014
Cash and Cash Equivalents [Abstract]
Checks issued in excess of cash book balances not yet presented for payment	$ 1,100,000				$ 1,700,000
Restricted Cash and Investments [Abstract]
Restricted cash and investments	3,302,824				4,329,654
Restricted Assets	0
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax	6,676		0
Loss Adjustment and Other Fee Income [Abstract]
Loss adjustment and other fee income as a percentage of total revenue, minimum (in hundredths)	0.00%	[1]	0.00%	[1]
Impairment of Long-Lived Assets [Abstract]
Impairment charges	0				0
Uncertain Tax Positions [Abstract]
Percentage of settlement with tax authority (in hundredths)	50.00%
Stock Based Compensation [Abstract]
Vesting percentage of stock awards (in hundredths)	100.00%
Property and Equipment [Member] | Maximum [Member]
Property, Equipment and Software [Abstract]
Useful life (in years)	5 years
Property and Equipment [Member] | Minimum [Member]
Property, Equipment and Software [Abstract]
Useful life (in years)	3 years
Software Installation and Development [Member]
Property, Equipment and Software [Abstract]
Useful life (in years)	3 years
Money Market [Member]
Restricted Cash and Investments [Abstract]
Restricted cash and investments	300,000				300,000
Certificates of Deposit [Member]
Restricted Cash and Investments [Abstract]
Restricted cash and investments	2,460,000				3,490,000
US Treasury Bond [Member]
Restricted Cash and Investments [Abstract]
Restricted cash and investments	$ 542,824				$ 539,654
Homeowners of America Insurance Company [Member]
Organization and Summary of Significant Accounting Policies [Abstract]
Noncontrolling interest, ownership percentage by Parent (in hundredths)	100.00%
Homeowners of America MGA Inc [Member]
Organization and Summary of Significant Accounting Policies [Abstract]
Noncontrolling interest, ownership percentage by Parent (in hundredths)	100.00%

[1] No amount over 5%.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2015

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

15. COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company leases its corporate office space and certain office equipment under non-cancelable operating leases which expire at various dates through 2019. Future minimum lease payments required under the non-cancelable operating leases are as follows for the years ending December 31:

2015        (9 months)	$	125,136
2016		174,709
2017		91,284
2018		22,188
2019		12,519
	$	425,836

Rent expense under such leases for the three months ended March 31, 2015 and March 31, 2014 was $42,426 and $32,328, respectively.

Litigation

The Company is the defendant in routine litigation involving matters that are incidental to the claims function of the Company's insurance business for which estimated losses are included in unpaid loss and loss adjustment expense reserves in the Company's consolidated financial statements. It is management's opinion that these lawsuits are not material individually or in the aggregate to the Company's financial position, results of operations, or cash flow.

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RELATED PARTY TRANSACTIONS (Details) (USD $)	1 Months Ended	3 Months Ended
	Aug. 31, 2013	Mar. 31, 2015	Mar. 31, 2014
Related Party Transaction [Line Items]
Initial term of Advisory Agreement		6 years
Number of days notice required for termination of Advisory Agreement	60 days
Common stock issued		$ 150,000	$ 150,000
Shares of common stock issued (in shares)		227,273	288,462
Annual Advisory Fee [Member]
Related Party Transaction [Line Items]
Related party transaction amount	300,000	225,000	225,000
Annual Grant of Shares [Member]
Related Party Transaction [Line Items]
Related party transaction amount	150,000

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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2015

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Homeowners of America Holding Corporation and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Certain reclassifications of prior year amounts have been made to conform to the current year presentation.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash and highly liquid short-term investments, with original maturities of three months or less. The amount is carried at cost, which approximates fair value. At March 31, 2015 and December 31, 2014, cash and cash equivalents consist of cash on deposit with financial institutions, as well as money market mutual funds.

General and other accrued expenses payable as of March 31, 2015 and December 31, 2014, include $1.1 million and $1.7 million, respectively, of checks issued in excess of cash book balances, not yet presented for payment.

Investments

Investments

The Company's investments are comprised of short-term, restricted, long-term investments and fixed-maturity securities classified as available-for-sale as of March 31, 2015 and December 31, 2014. Restricted investments and long-term investments are described below. Short-term investments include certificates of deposit with original maturities greater than three months and maturities of one year or less. Due to the short-term nature of these investments, significant changes in prevailing interest rates and economic conditions should not adversely affect the timing and amount of cash flows on such investments or their related values. Accordingly, certificates of deposit are carried at cost, which approximates fair value. Fixed-maturity securities are classified as available-for-sale when it is not management's intent to make profits by buying and selling the securities within a short period of time or when it is not management's intent to hold the securities to maturity.  Fixed-maturity securities classified as available-for-sale are carried at fair value. The unrealized holding gains and losses, net of applicable deferred income taxes, are shown as a separate component of stockholders' equity as a part of accumulated other comprehensive income (loss) and, as such, are not included in the determination of net income (loss).

As of March 31, 2015 and December 31, 2014, the Company has restricted cash and investments, in the amount of $3.3 million and $4.3 million, respectively, pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. Restricted assets are shown separately in the accompanying consolidated balance sheets as "Restricted cash and investments" and include money market accounts and certificates of deposits. "Restricted fixed-maturity securities, classified as available-for-sale" are shown separately in the accompanying consolidated balance sheets and recorded at fair value. With the approval of the Departments of Insurance, the Company may exchange the investments with other funds or investments. In respect to certificates of deposit, management intends to hold the portion of these restricted investments to their maturity. As such, these restricted certificates of deposit are carried at cost, which approximates fair value. Interest earned on these investments inures to the benefit of the Company.

The following table provides the Company's restricted cash and investments as of March 31, 2015 and December 31, 2014.

Restricted cash and investments	March 31, 2015		December 31, 2014
Money Market	$	300,000	$	300,000
Certificates of Deposit		2,460,000		3,490,000
US Treasury Bond		542,824		539,654
	$	3,302,824	$	4,329,654

As of March 31, 2015 and December 31, 2014, the Company's investments also included certificates of deposit that mature more than one year after the balance sheet date and are reflected on the consolidated balance sheets as Long-term investments. Based on management's intent to hold to maturity, these investments are carried at cost. Cost approximates fair value based on the rates currently offered for deposits of similar remaining maturities.

The Company's investments in certificates of deposits and money market accounts do not qualify as securities as defined in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 320, Investment – Debt and Equity Securities. Accordingly, the fair value disclosures required by FASB ASC Topic 820, Fair Value Measurements and Disclosures are not provided. The Company's fixed-maturity securities classified as available-for-sale are "marked to market" as of the end of each calendar quarter.  As of that date, unrealized gains and losses are recorded to Accumulated Other Comprehensive Income, except where such securities are deemed to be other-than-temporarily impaired. Where applicable, the Company assesses investments of an issuer currently carrying a net unrealized loss. If in management's judgment, the decline in value is other than temporary, the cost of the investment is written down to fair value with a corresponding charge to earnings. Factors considered in determining whether an impairment exists include financial condition, business prospects and creditworthiness of the issuer, the length of time and magnitude that the asset value has been less than cost, and the ability and intent to hold such investments until the fair value recovers.

Comprehensive Income

Comprehensive Income

FASB ASC Topic 220 - Comprehensive Income, requires that recognized revenues, expenses, gains and losses be included in net income (loss). Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the consolidated balance sheet, these items, along with net income (loss), are components of comprehensive income. The Company characterizes their fixed income portfolio as available-for-sale securities when it is not management's intent to make profits by buying and selling the securities within a short period of time or when it is not management's intent to hold the securities to maturity, with appropriate adjustments to other comprehensive income. For the three months ended March 31, 2015, the Company recorded $6,676 of unrealized gains on available-for-sale securities in other comprehensive income.  There were no qualifying items reported in other comprehensive income for the three months ended March 31, 2014.

Recognition of Premium Revenues

Recognition of Premium Revenues

Premiums are recognized as revenue on a daily pro rata basis over the policy term. The portion of premiums related to the unexpired term of policies in force as of the end of the measurement period and to be earned over the remaining term of those polices, is deferred and reported as unearned premiums.

Ceding Commission and Reinsurance Profit Share

Ceding Commissions and Reinsurance Profit Share

Ceding commissions represent acquisition costs associated with insurance risk ceded to reinsurers and is earned on a pro-rata basis over the life of the associated policy. Reinsurance profit share is additional ceding commissions payable to the Company based upon attaining specified loss ratios within individual treaty years.  Reinsurance profit share income is recognized when earned, which includes adjustments to earned reinsurance profit share based on changes in incurred losses and reserves for future loss development.

Policy Fees

Policy Fees

Policy fee income includes application fees which are intended to reimburse the Company for a portion of the costs incurred in establishing the insurance. Policy fees on policies where premium is traditionally paid in full upon inception of the policy are recognized when written, while fees charged on policies where premiums are paid in installments, are recognized when collected.

Loss Adjustment and Other Fee Income

Loss Adjustment and Other Fee Income

Loss adjustment and other fee income is recognized as income when collected. There is no amount over 5% of total revenue within this classification on the consolidated statements of operations for the three months ended March 31, 2015 and 2014.

Property, Equipment and Software

Property, Equipment and Software

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets, which range from three to five years. The cost and related accumulated depreciation of assets sold or disposed are removed from the accounts and the resulting gain or loss is included in the consolidated statements of operations. Maintenance and repairs are expensed as incurred.

Software installation and development is stated at cost, net of accumulated amortization. Amortization is calculated on a straight-line basis method over three years.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Long-lived assets, such as property, equipment and software, are reviewed for impairment whenever business events or circumstances could lead to or indicate that the value of the asset may not be recoverable. The assessment of possible impairment is based on whether the carrying amount of the assets exceeds its fair value. The Company uses estimates of undiscounted future cash flows in determining the recoverability of long-lived assets. As of March 31, 2015 and December 31, 2014, no impairment has been recorded.

Deferred Policy and Acquisition Costs

Deferred Policy and Acquisition Costs

Deferred policy acquisitions costs ("DAC") as of March 31, 2015 and December 31, 2014, consist of commissions, premium taxes and policy underwriting and production expenses which are incurred through and vary directly with, the level of production of new and renewal insurance business and are amortized over the terms of the policies they relate to. The method used in calculating DAC limits the amount of the deferred cost to their estimated realizable value, which gives effect to allocating their expense along with other period costs associated with the insurance business, in relation to the amount of gross premium earned on policies to which they relate and investment income. DAC is reviewed to determine if it is recoverable from future income, including investment income. The amount of DAC considered recoverable could be reduced in the near term if management's estimates of future premium and investment income is reduced which could impair the Company's ability to recover these costs.

Reserve for Losses and Loss Adjustment Expenses

Reserve for Losses and Loss Adjustment Expenses

The liability for losses and loss adjustment expenses ("LAE") are estimates of the amounts required to cover known incurred losses and LAE, developed through the review and assessment of loss reports, along with the development of known claims. In addition, loss and loss adjustment expense reserves include management's estimate of an amount for losses incurred but not reported ("IBNR"), determined from reviewing overall loss reporting patterns as well as the loss development cycles of individual claim cases. Such liabilities are necessarily based on estimates and while management believes that the amount is adequate, the ultimate liability may be more or less than the amounts provided. The approach and methods for making such estimates and for establishing the resulting liability are continually reviewed and any adjustments are reflected in current earnings.

Due and Deferred Premiums

Due and Deferred Premiums

Due and deferred premiums consist of uncollateralized premiums and agents' balances in the course of collection as well as premiums booked but not yet due.

Reinsurance

Reinsurance

In the normal course of business, the Company seeks to reduce the overall exposure to losses that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk with other insurance enterprises or reinsurers. The Company uses only quality, financially rated reinsurers and continually monitors the financial ratings of these companies through its brokers. The amount and type of reinsurance purchased each year is based on management's analysis of liquidity and its estimate of its probable maximum loss and the conditions within the reinsurance market. The Company continually monitors its risk exposure through the use of the AIR modeling system and other modeling tools provided by its reinsurance brokers. Reinsurance premiums, expense reimbursements, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums paid for reinsurance are reported as reductions of earned premium income.

Income Taxes

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss carryforwards, and liabilities are measured using enacted tax rates expected to be recovered or settled.

The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  In assessing the realizable value of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment.

Uncertain Tax Positions

Uncertain Tax Positions

The Company recognizes uncertain tax positions in the consolidated financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company believes that it has appropriate support for the income tax positions taken and to be taken on its tax returns, and that its accruals for tax liabilities are adequate for all open tax years based on an assessment of many factors including experience and interpretations of tax laws applied to the facts of each matter. At March 31, 2015, the Company's tax years from 2010 through 2014 remain subject to examination.

Estimates

Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company's primary areas of estimate are for liabilities for unpaid losses and loss adjustment expenses, deferred policy acquisition costs, deferred tax asset valuation, and reinsurance. Actual results could differ significantly from those estimates.

Fair Value Cash, Cash Equivalents and Short-term Investments

Fair Value of Cash, Cash Equivalents and Short-term Investments

The carrying value for the Company's cash and cash equivalents and short-term investments approximate fair values as of March 31, 2015 and December 31, 2014 due to their short-term nature. Fair value for securities are based on the framework for measuring fair value established by FASB ASC Topic 820, Fair Value Measurements and Disclosures.

Fair Value of Fixed-Maturity Securities held as Available-for-Sale

Fair Value Fixed-Maturity Securities held as Available-for-Sale

The Company's fixed-maturity securities held as available-for-sale are carried at fair value as of March 31, 2015 and December 31, 2014. Fair value for securities are based on the framework for measuring fair value established by FASB ASC Topic 820, Fair Value Measurements and Disclosures.

Stock Based Compensation

Stock Based Compensation

The Company accounts for stock-based compensation under the fair value recognition provisions of FASB ASC Topic 718 – Compensation – Stock Compensation, which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock issuances based on estimated fair values. In accordance with FASB ASC Topic 718, the Company recognizes stock-based compensation, if any, in the consolidated statements of operations on a straight line basis over the vesting period of the stock award.  For those stock awards vesting 100% at the issue date, the Company recognizes stock-based compensation immediately.

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Basic earnings (loss) per share of common stock is computed by dividing net income or loss, less cumulative preferred stock dividends for the period whether or not earned or paid, by the weighted-average number of common shares during the period.

Diluted earnings (loss) per share of common stock is computed by dividing net income or loss attributable to common stockholders, adjusted for the effect of potentially dilutive securities, by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include convertible notes payable, outstanding convertible preferred stock and common stock options.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$ 1,018,977	$ 475,245
Adjustments to reconcile net income to net cash provided by (used in) by operating activities:
Depreciation & amortization	38,362	27,295
Accounting charge related to stock-based compensation expense	8,737	35,465
Common stock compensation for management services	150,000	150,000
Amortization of premium/accretion of discount, net	34,068	0
Deferred tax assets	18,451	(8,698)
(Increase) decrease in:
Accrued investment income	(12,506)	1,607
Due and deferred premiums	733,885	516,025
Balance due from reinsurers	(1,647,946)	(7,196,571)
Deferred policy acquisition costs	36,488	(1,719)
Prepaid and other	241,297	(283,546)
Increase (decrease) in:
Losses and loss adjustment expenses	(241,251)	1,578,257
Advance premiums	105,141	60,777
Ceded reinsurance premiums payable	4,106,331	5,944,404
Unearned premiums	(175,647)	(15,178)
Unearned ceding commissions	(48,581)	(3,850)
Commissions payable, reinsurance & agents	276,126	652,879
General and other accrued expenses	(131,861)	47,197
Funds held under reinsurance treaty		2,782
Interest on notes convertible	0
Income tax payable	170,784	54,611
Taxes, licenses and other fees payable	(714,761)	(474,503)
Net cash provided by (used in) operating activities	3,966,094	1,562,479
Cash flows from investing activities:
Purchases of long-term certificate of deposit	(4,410,000)	0
Maturities of long-term certificate of deposit	0	1,960,000
Purchases of short-term investments	(1,215,000)	(2,715,000)
Maturities of short-term investments	2,930,000	1,309,717
Purchases of fixed-maturity securities, available-for-sale	(464,804)	0
Call or maturity of fixed-maturity securities, available-for-sale	470,000	0
Additions to furniture, equipment and software	(4,769)	(12,362)
Net cash used in investing activities	(2,694,573)	542,355
Cash flows from financing activities:
Proceeds from stock options exercised	400	0
Net cash provided by (used in) financing activities	400	0
Net increase (decrease) in cash and cash equivalents	1,271,921	2,104,834
Cash and cash equivalents, beginning of period	5,648,278	8,104,310
Cash and cash equivalents, end of the period	6,920,199	10,209,144
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 0	$ 210,000

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CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Assets:
Restricted fixed-maturity securities, available for sale, amortized cost	$ 539,602	$ 539,558
Fixed-maturity securities, available for sale, amortized cost	$ 3,787,960	$ 3,827,268
Stockholders' equity:
Preferred stock, convertible cumulative percentage (in hundredths)	12.50%	12.50%
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	20,500,000	20,500,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	17,708,125	17,479,852
Common stock, shares outstanding (in shares)	16,397,125	16,168,852
Treasury stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Treasury stock (in shares)	1,311,000	1,311,000

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EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2015

EARNINGS (LOSS) PER SHARE [Abstract]

EARNINGS (LOSS) PER SHARE

10.   EARNINGS (LOSS) PER SHARE

The following table represents the reconciliation of the Company's basic earnings per common share and diluted earnings per common share computations reported on the Consolidated Statements of Operations for the three months ended March 31, 2015 and March 31, 2014:

	Three Months Ended
	March 31,
	2015		2014
Basic earnings per common share
Net income	$	1,018,977	$	475,245
Cumulative dividend		-		-
Adjusted net income	$	1,018,977	$	475,245
Weighted average common shares outstanding		16,320,867		16,023,448
Basic earnings per common share	$	0.06	$	0.03
	Three Months Ended
	March 31,
		2015		2014
Diluted earnings per common share
Net income	$	1,018,977	$	475,245
Weighted average common shares outstanding		16,320,867		16,023,448
Effect of diluted securities:
Stock options		1,286,250		902,500
Diluted common shares outstanding		17,607,117		16,925,948
Diluted earnings per common share	$	0.06	$	0.03

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 13, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Entity Common Stock, Shares Outstanding		16,397,125
Entity Registrant Name	Homeowners of America Holding Corp
Entity Central Index Key	0001346922
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company

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STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2015

STOCK BASED COMPENSATION [Abstract]

STOCK BASED COMPENSATION

11. STOCK BASED COMPENSATION

The Company accounts for stock-based compensation under the fair value recognition provision of FASB ASC Topic 718 – Compensation – Stock Compensation.

Incentive Plans

The Company's 2005 Management Incentive Plan (the "2005 Plan") provides for granting of stock options to enable the Company to obtain and retain the services of selected persons, both employees and directors, considered to be essential to the long-range success of the Company.  Under the 2005 Plan, options may be granted to purchase a total not to exceed 789,475 shares of common stock in the aggregate, made up of original issue shares, treasury shares or a combination of the two.  At March 31, 2015 and 2014, options to purchase 783,750 shares of common stock had been granted under the 2005 Plan.

The Company's 2013 Equity Compensation Plan (the "2013 Plan") provides for granting of stock options, incentive stock options, stock awards, and restricted stock units to enable the Company to obtain and retain the services of selected persons, both employees and directors, considered to be essential to the long-range success of the Company. Under the 2013 Plan, options may be granted to purchase a total not to exceed 2,925,000 shares of common stock, made up of original issue shares, treasury shares or a combination of the two. At March 31, 2015, options to purchase 1,965,000 shares of common stock and 39,000 shares of common stock in the form of a stock award had been granted under the 2013 Plan.

A summary of the activity of the Company's stock option plan for the three months ended March 31, 2015 and March 31, 2014 is as follows:

	Number of Options		Weighted Avg Exercise Price		Weighted Avg Remaining Cont. Term		Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2014		2,738,500	$	0.59		7.32	$	226
Outstanding at March 31, 2015		2,737,500	$	0.59		7.07	$	747
Exercisable at March 31, 2015		1,286,250	$	0.67		5.70	$	262
Outstanding at December 31, 2013		2,708,750	$	0.58		8.41	$	4
Outstanding at March 31, 2014		2,708,750	$	0.58		8.16	$	21
Exercisable at March 31, 2014		902,500	$	0.73		5.55	$	6

The Company did not grant any stock options during the three months ended March 31, 2015 and 2014.

The Company records stock-based compensation expense related to granting stock options in underwriting and other operating expenses.  During the three months ended March 31, 2015, and 2014, the Company did not grant any stock options.  The Company recognized compensation expense as follows for the three months ended March 31:

	Three Months Ended March 31,
	2015				2014
Total gross compensation expense		$	8,737			$	35,465
Total tax benefit associated with compensation expense			(172	)			(7,163	)
Total net compensation expense		$	8,565			$	28,302

As of March 31, 2015, the Company expects to record compensation expense in the future as follows:

	Nine			Year ending December 31,
	months
	ending
	December 31, 2015			2016			2017			2018			2019
Total gross unrecognized compensation expense	$	26,208		$	34,944		$	34,944		$	28,365		$	81
Tax benefit associated with unrecognized compensation expense		(515	)		(686	)		(686	)		(556	)		-
Total net unrecognized compensation expense	$	25,693		$	34,258		$	34,258		$	27,809		$	81

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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues:
Premiums earned	$ 18,433,681	$ 14,444,123
Ceded premiums	(17,243,390)	(13,146,456)
Net premiums earned	1,190,291	1,297,667
Policy fees	1,369,250	1,126,725
Ceding commissions and reinsurance profit share	5,394,380	3,356,198
Investment income, net of investment expenses	16,132	7,447
Loss adjustment and other fee income	304,693	323,042
Total Revenue	8,274,746	6,111,079
Expenses:
Losses and loss adjustment expenses	677,170	350,976
Policy acquisition and other underwriting expenses	4,444,055	3,559,222
General and administrative expenses	1,597,738	1,469,724
Total Expenses	6,718,963	5,379,922
Income before income taxes	1,555,783	731,157
Provision (benefit) for income taxes:
Current	518,355	264,610
Deferred	18,451	(8,698)
Total income taxes	536,806	255,912
Net income	1,018,977	475,245
Cumulative preferred stock dividends	0	0
Adjusted net income	$ 1,018,977	$ 475,245
Basic income per common share (in dollars per share)	$ 0.06	$ 0.03
Diluted income per common share (in dollars per share)	$ 0.06	$ 0.03
Cash dividend declared per common share (in dollars per share)	$ 0	$ 0

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FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2015

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

5. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company's financial assets carried at fair value have been classified, for disclosure purposes, based on the hierarchy established within FASB ASC 820-10 – Fair Value Measurements and Disclosures. When market prices are not available, fair value is generally estimated utilizing valuation techniques that vary by asset class and incorporate available trade, bid and other market information, when available. The acceptable valuation techniques include (a) market approach, which uses prices or relevant information derived from market transactions for identical or comparable assets or liabilities, (b) the Income Approach, which converts future amounts such as cash flows or earnings to a single present value amount based on current market expectations about those future amounts, and (c) the Cost Approach, which is based on the amount that currently would be required to replace the service capacity of an asset. In certain circumstances, these valuation techniques may involve some level of management estimation and judgment which becomes significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk premium inherent in a particular methodology, model or input used.

The fair value hierarchy is used to prioritize valuation inputs into three levels:

● Level 1 - unadjusted quoted prices in active markets for identical assets or liabilities. These inputs are considered to be the most reliable evidence of fair value.

● Level 2 – quoted prices for similar assets in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the investment. Such inputs include market interest rates and volatilities, spreads and yield curves.

● Level 3 – termed unobservable inputs which are utilized in situations where there is little or no market activity for the asset or liability at the measurement date. The approach typically involves a significant subjective management judgment toward the pricing of the security.

The Company's short-term investments comprised of certificates of deposit held at financial institutions which are not measured at fair value on a recurring basis. A portion of the Company's cash and cash equivalents include money market mutual fund accounts held at financial institutions which are measured at fair value on a recurring basis. Fixed-maturity securities held as available-for-sale are carried at fair value in our consolidated financial statements. The following tables provide information as of March 31, 2015 and December 31, 2014, about the Company's financial assets measured at fair value on a recurring basis:

	Fair Value Measurements Using
	Level 1			Level 2			Level 3			Total
As of March 31, 2015
Money market mutual funds		$	4,034,583		$	-		$	-		$	4,034,583
Restricted money market mutual funds			300,000			-			-			300,000
Securities-available-for-sale fixed-maturity:
Obligations of states, municipalities and political subdivisions			-			3,791,487			-			3,791,487
U.S. Treasury			-			542,824			-			542,824
Total		$	4,334,583		$	4,334,311		$	-		$	8,668,894
	Fair Value Measurements Using
	Level 1			Level 2			Level 3			Total
As of December 31, 2014
Money market mutual funds		$	3,372,527		$	-		$	-		$	3,372,527
Restricted money market mutual funds			300,000			-			-			300,000
Securities-available-for-sale fixed-maturity:
Obligations of states, municipalities and political subdivisions			-			3,827,245			-			3,827,245
U.S. Treasury			-			539,654			-			539,654
Total		$	3,672,527		$	4,366,899		$	-		$	8,039,426

The following methods and assumptions were used to estimate the fair value disclosures for financial instruments:

Money market mutual funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. As the funds are generally maintained at a net asset value which does not fluctuate, cost approximates fair value. These are included as a Level 1 measurement in the table above. The fair values for available-for-sale fixed-maturity securities are based upon prices provided by an independent pricing service.  The Company has reviewed these prices for reasonableness and has not adjusted any prices received from the independent provider.  Level 2 securities represent assets whose fair value is determined using observable market information such as previous day trade prices, quotes from less active markets or quoted prices of securities with similar characteristics.  There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2015 or during the year ended December 31, 2014 .

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INVESTMENTS

3 Months Ended

Mar. 31, 2015

INVESTMENTS [Abstract]

INVESTMENTS

4. INVESTMENTS

Investment income, net of investment expenses totaled $16,132 and $7,447 for the three months ended March 31, 2015 and 2014, respectively.

For the three months ended March 31, 2015, there were $6,676 in unrealized gains/(losses) on fixed-maturity securities held as available-for-sale.  There were no realized gains or losses recognized for the three months ended March 31, 2015 and March 31, 2014.  The intent is to hold to maturity certificates of deposit carried at amortized cost.

The following table provides the Company's short-term, restricted and long-term investment holdings by type of financial instruments that were used to estimate the fair value disclosures for financial instruments as of March 31, 2015 and December 31, 2014, respectively:

	March 31, 2015						December 31, 2014
	Book Value			Fair Value / Carrying Value			Book Value			Fair Value / Carrying Value
Financial Assets:
Restricted certificates of deposit		$	2,460,000		$	2,460,000		$	3,490,000		$	3,490,000
Restricted money markets			300,000			300,000			300,000			300,000
Long-term investments			7,840,000			7,840,000			3,430,000			3,430,000
Short-term investments			546,881			546,881			1,231,881			1,231,881
Total		$	11,146,881		$	11,146,881		$	8,451,881		$	8,451,881

	March 31, 2015				December 31, 2014
	Range of Maturities		Interest Rates		Range of Maturities		Interest Rates
Restricted certificates of deposit		Less than 1 year		0.30% - 1.40%		Less than 1 year		0.10% - 1.40%
Restricted money markets		Less than 1 year		-		Less than 1 year		-
Long-term investments		More than 1 year		0.60% - 1.50%		More than 1 year		0.75% - 1.50%
Short-term investments		Less than 1 year		0.05% - 0.75%		Less than 1 year		0.35% - 0.70%

The following table provides the Company's fixed-maturity securities classified as available-for-sale which are carried at fair value as of March 31, 2015 and December 31, 2014:

	March 31, 2015
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Fixed Maturities:
Obligations of states, municipalities and political subdivisions	$	3,787,960	$	8,618	$	(5,091	)	$	3,791,487
U.S. Treasury- held as restricted		539,602		3,222		-			542,824
Total Fixed Maturities	$	4,327,562	$	11,840	$	(5,091	)	$	4,334,311

	December 31, 2014
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Fixed Maturities:
Obligations of states, municipalities and political subdivisions	$	3,827,268	$	6,331	$	(6,354	)	$	3,827,245
U.S. Treasury- held as restricted		539,558		96		-			539,654
Total Fixed Maturities	$	4,366,826	$	6,427	$	(6,354	)	$	4,366,899

The amortized cost and fair value of available-for-sale fixed-maturity securities at March 31, 2015 and December 31, 2014, by contractual maturity, are shown in the following table.  Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2015
Remaining Time to Maturity	Amortized Cost Basis		Fair Value
Less than one year	$	570,394	$	569,076
One to five years		1,926,643		1,928,435
Five to ten years		61,590		62,004
More than ten years		1,768,935		1,774,796
Total	$	4,327,562	$	4,334,311

	December 31, 2014
Remaining Time to Maturity	Amortized Cost Basis		Fair Value
Less than one year	$	570,236	$	569,734
One to five years		1,985,297		1,981,134
Five to ten years		162,124		162,519
More than ten years		1,649,169		1,653,512
Total	$	4,366,826	$	4,366,899

Other-than-temporary Impairment ("OTTI")

The Company regularly reviews its individual investment securities for OTTI.  The Company considers various factors in determining whether each individual security is other-than-temporarily-impaired, including:

• the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

• the length of time and the extent to which the market value of the security has been below its cost or amortized cost;

• general market conditions and industry or sector specific factors;

• nonpayment by the issuer of its contractually obligated interest and principal payments; and

• the Company's intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

Securities with gross unrealized loss positions at March 31, 2015 and December 31, 2014 were immaterial. The Company believes there were no fundamental issues such as credit losses or other factors with respect to any of its available-for-sale securities.  The unrealized losses on investments in fixed-maturity securities were caused primarily by interest rate changes.  It is expected that the securities would not be settled at a price less than par value of the investments.  Because the declines in fair value are attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold its available-for-sale investments until a market price recovery or maturity, the Company does not consider any of its investments to be other-than-temporarily impaired at March 31, 2015 and at December 31, 2014.

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REGULATORY REQUIREMENTS AND RESTRICTIONS

3 Months Ended

Mar. 31, 2015

REGULATORY REQUIREMENTS AND RESTRICTIONS [Abstract]

REGULATORY REQUIREMENTS AND RESTRICTIONS

16. REGULATORY REQUIREMENTS AND RESTRICTIONS

HAIC is subject to the laws and regulations of the State of Texas and the regulations of any other states in which HAIC conducts business. State regulations cover all aspects of HAIC's business and are generally designed to protect the interests of insurance policyholders, as opposed to the interests of stockholders. The Texas Insurance Code requires all property and casualty insurers to have a minimum of $2.5 million in capital stock and $2.5 million in surplus. HAIC has capital and surplus in excess of this requirement.

As of December 31, 2014, HAIC's total statutory surplus was $12,317,735 (capital stock of $3,000,000 and surplus of $9,317,735).

As of March 31, 2015, HAIC's total statutory surplus was $13,544,812 (capital stock of $3,000,000 and surplus of $10,544,812).

As of March 31, 2015 and December 31, 2014, HAIC had restricted cash and investments totaling $3.3 million and  $4.3 million, respectively, pledged to the Department of Insurance in certain states as a condition of its Certificate of Authority for the purpose of meeting obligations to policyholders and creditors. See Note 1, Organization and Summary of Significant Accounting Policies, Investments, for additional disclosure.

The Texas Insurance Code limits dividends from insurance companies to their stockholders to net income accumulated in the Company's surplus account, or "earned surplus".

The maximum dividend that may be paid without approval of the Insurance Commissioner is limited to the greater of 10% of the statutory surplus at the end of the preceding calendar year or the statutory net income of the preceding calendar year. No dividends were paid by HAIC in the first quarter of  2015 or during the year of 2014.

HAIC prepares its statutory-based financial statements in conformity with accounting practices prescribed or permitted by the Texas Department of Insurance. Prescribed statutory accounting practices primarily include those published as statements of SAP by the NAIC, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practice not so prescribed. As of March 31, 2015 and December 31, 2014, there were no material permitted statutory accounting practice utilized by HAIC.

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INCOME TAXES

3 Months Ended

Mar. 31, 2015

INCOME TAXES [Abstract]

INCOME TAXES

12. INCOME TAXES

During the three months ended March 31, 2015, the Company recorded $536,806 of income tax expense which resulted in estimated annual effective tax rate of 34.10%.  The effective tax rate was primarily impacted as a result of permanent tax differences on meals and entertainment and stock-based compensation.

During the three months ended March 31, 2014, the Company recorded $255,912 of income tax expense which resulted in estimated annual effective tax rate of 34.25%. The effective tax rate was primarily impacted as a result of permanent tax differences on meals and entertainment.

The Company's federal income tax return is consolidated with HAIC and MGA. Allocation of tax expense or refunds among the consolidated group is based on separate return calculations.

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UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES

3 Months Ended

Mar. 31, 2015

UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES [Abstract]

UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES

8. UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES

Losses and loss adjustment expenses (LAE), less related reinsurance and deductibles, are charged to operations as incurred. Unpaid losses and LAE are based on claims adjusters' estimates of the cost of settlement plus an estimate for losses IBNR based upon historical experience, industry loss experience, and management's estimates.  Loss reserves reflect Company management's best estimate of the total cost of (i) claims that have been incurred but not yet paid, and (ii) claims that have been incurred, but not yet reported (IBNR).  Loss reserves that are established by Company management are not an exact calculation of our liability, but rather loss reserves represent management's best estimate for our Company's liability based on the application of actuarial techniques and other projection methodology, taking into consideration other facts and circumstances known as of the balance sheet date.  The process of setting reserves is complex and necessarily imprecise. The impact of both internal and external variables on ultimate loss and LAE costs is difficult to estimate.  To arrive at its best estimate for losses, the Company uses damage estimating software developed and owned by acknowledged industry leader, Insurance Service Office.  Reserve factors for IBNR are reviewed quarterly by an independent actuarial consultant.  In addition, our appointed independent actuary attests to the adequacy of our unpaid claim reserve, including IBNR at calendar year end.

Losses and Loss Adjustment Expenses

The following table provides the reconciliation of the beginning and ending reserve balances for losses and LAE, gross of reinsurance for the three months ended March 31, 2015 and for March 31, 2014:

	Three Months Ended March 31,
	2015			2014
Reserve for losses and LAE, beginning of period	$	15,009,506		$	15,884,062
Reinsurance recoverables on losses and LAE		(13,995,400	)		(15,090,175	)
Reserve for losses and LAE, net of reinsurance recoverables at beginning of year		1,014,106			793,887
Add provision for claims and LAE occurring in:
Current year		390,477			98,976
Prior years		286,693			252,000
Net incurred losses and LAE during the current period		677,170			350,976
Deduct payments for claims and LAE occurring in:
Current year		225,615			167,599
Prior years		347,693			222,628
Net claim and LAE payments during the current period		573,308			390,227
Reserve for losses and LAE, net of reinsurance recoverables, at end of period		1,117,968			754,636
Reinsurance recoverables on losses and LAE		13,650,287			16,707,683
Reserve for losses and LAE, end of period	$	14,768,255		$	17,462,319

As a result of additional information on claims occurring in prior years becoming available to management, changes in estimates of provisions of claims and claim adjustment expenses were made resulting in an increase of $286,693 and $252,000 for the three months ended March 31, 2015 and 2014, respectively.

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PROPERTY, EQUIPMENT, AND SOFTWARE NET

3 Months Ended

Mar. 31, 2015

PROPERTY, EQUIPMENT, AND SOFTWARE NET [Abstract]

PROPERTY, EQUIPMENT, AND SOFTWARE NET

6. PROPERTY, EQUIPMENT, AND SOFTWARE NET

Property, equipment, and software net consist of the following as of March 31, 2015 and December 31, 2014, respectively:

	March 31, 2015			December 31, 2014			Useful Life
Computer equipment	$	234,761		$	231,860		3 years
Office equipment		17,409			17,409		5 years
Furniture and fixtures		142,450			142,450		5 years
Software installation and development		931,184			929,316		3 years
Total, at cost		1,325,804			1,321,035
Less accumulated depreciation and amortization		(1,014,902	)		(976,540	)
Property and equipment, net	$	310,902		$	344,495

Depreciation and amortization expense for property, equipment and software totaled $38,362 and $27,295 for the three months ended March 31, 2015 and 2014, respectively.

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DEFERRED POLICY ACQUISITION COSTS

3 Months Ended

Mar. 31, 2015

DEFERRED POLICY ACQUISITION COSTS [Abstract]

DEFERRED POLICY ACQUISITION COSTS

7. DEFERRED POLICY ACQUISITION COSTS

Total capitalized deferred policy acquisition costs as of March 31, 2015 and March 31, 2014, comprised of commissions, premium taxes and costs associated with underwriting and issuing policies were $7,861,318 and $6,216,053, respectively.

Changes in deferred policy acquisition costs for the three months ended March 31, 2015 and March 31, 2014, are as follows:

	March 31, 2015			March 31, 2014
Deferred policy acquisition charges, beginning of the period	$	7,897,806		$	6,214,334
Capitalized costs		3,541,680			2,834,495
Amortized costs		(3,578,168	)		(2,832,776	)
Deferred policy acquisition charges, end of the period	$	7,861,318		$	6,216,053

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STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2015

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

9. STOCKHOLDERS' EQUITY

Preferred Stock

As of March 31, 2015 and December 31, 2014, the Company had 20,500,000 shares of preferred stock, convertible, 12.50% cumulative, $0.0001 par value per share, authorized and none issued and outstanding.

Common Stock

As of March 31, 2015, the Company had 40,000,000 shares authorized and 17,708,125 shares issued and 16,397,125 shares outstanding of $0.0001 par value common stock. Holders of common stock are entitled to one (1) vote for each share of common stock held at all meetings of stockholders.

On February 1, 2015, the Company issued 227,273 shares of common stock at $0.66 per share, to Inter-Atlantic Management Inc.  Per the terms of the Advisory Agreement dated August 1, 2013, Inter-Atlantic Management Inc. will be issued annually on February 1st, a grant of the Company's common stock which in aggregate had a fair market value of $150,000 at the time of the grant.

As of December 31, 2014, the Company had 40,000,000 shares of authorized and 17,479,852 shares issued and 16,168,852 shares outstanding of $0.0001 par value common stock.  Holders of common stock are entitled to one (1) vote for each share of common stock held at all meetings of stockholders.

There were no common stock warrants issued during the three months ended March 31, 2015 and March 31, 2014.

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2015

COMMITMENTS AND CONTINGENCIES [Abstract]

Future minimum lease payments

The Company leases its corporate office space and certain office equipment under non-cancelable operating leases which expire at various dates through 2019. Future minimum lease payments required under the non-cancelable operating leases are as follows for the years ending December 31:

2015        (9 months)	$	125,136
2016		174,709
2017		91,284
2018		22,188
2019		12,519
	$	425,836

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REINSURANCE, Reinsurance Balances (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
REINSURANCE [Abstract]
Ceded premiums payable	$ 8,449,205	$ 4,342,874
Ceded loss and loss adjustment expense reserve	13,650,287	13,995,400
Ceded unearned premium reserve	35,284,456	35,442,177
Ceded loss adjustment expenses	825,508	4,763,808
Ceded earned premiums	$ 17,243,390	$ 60,484,640

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CONCENTRATION OF CREDIT RISK

3 Months Ended

Mar. 31, 2015

CONCENTRATION OF CREDIT RISK [Abstract]

CONCENTRATION OF CREDIT RISK

14. CONCENTRATION OF CREDIT RISK

The Company has exposure and remains liable in the event of an insolvency of one of its primary reinsurers. Management and its reinsurance intermediary regularly assess the credit quality and ratings of its reinsurer base companies.

Financial instruments which potentially subject the Company to credit risk consist principally of cash, money market accounts on deposit with financial institutions, money market funds, certificates of deposit and fixed-maturity securities, as well as premium balance in the course of collection.  At times, the Company's bank deposits may exceed the FDIC limit.

The concentration of credit risk with respect to premium balances in the course of collection is limited, due to the large number of insureds comprising the Company's customer base. However, substantially all of the Company's revenues are derived from customers in Texas, which could be adversely affected by economic conditions, an increase in competition, or other environmental changes.

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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2015

INVESTMENTS [Abstract]

Short-term, restricted and long-term investment holdings

The following table provides the Company's short-term, restricted and long-term investment holdings by type of financial instruments that were used to estimate the fair value disclosures for financial instruments as of March 31, 2015 and December 31, 2014, respectively:

	March 31, 2015						December 31, 2014
	Book Value			Fair Value / Carrying Value			Book Value			Fair Value / Carrying Value
Financial Assets:
Restricted certificates of deposit		$	2,460,000		$	2,460,000		$	3,490,000		$	3,490,000
Restricted money markets			300,000			300,000			300,000			300,000
Long-term investments			7,840,000			7,840,000			3,430,000			3,430,000
Short-term investments			546,881			546,881			1,231,881			1,231,881
Total		$	11,146,881		$	11,146,881		$	8,451,881		$	8,451,881

	March 31, 2015				December 31, 2014
	Range of Maturities		Interest Rates		Range of Maturities		Interest Rates
Restricted certificates of deposit		Less than 1 year		0.30% - 1.40%		Less than 1 year		0.10% - 1.40%
Restricted money markets		Less than 1 year		-		Less than 1 year		-
Long-term investments		More than 1 year		0.60% - 1.50%		More than 1 year		0.75% - 1.50%
Short-term investments		Less than 1 year		0.05% - 0.75%		Less than 1 year		0.35% - 0.70%

Fixed-maturity securities classified as available-for-sale

The following table provides the Company's fixed-maturity securities classified as available-for-sale which are carried at fair value as of March 31, 2015 and December 31, 2014:

	March 31, 2015
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Fixed Maturities:
Obligations of states, municipalities and political subdivisions	$	3,787,960	$	8,618	$	(5,091	)	$	3,791,487
U.S. Treasury- held as restricted		539,602		3,222		-			542,824
Total Fixed Maturities	$	4,327,562	$	11,840	$	(5,091	)	$	4,334,311

	December 31, 2014
			Gross Unrealized
	Amortized Cost		Gains		Losses			Fair Value
Fixed Maturities:
Obligations of states, municipalities and political subdivisions	$	3,827,268	$	6,331	$	(6,354	)	$	3,827,245
U.S. Treasury- held as restricted		539,558		96		-			539,654
Total Fixed Maturities	$	4,366,826	$	6,427	$	(6,354	)	$	4,366,899

Available-for-sale fixed-maturity securities by contractual maturity

The amortized cost and fair value of available-for-sale fixed-maturity securities at March 31, 2015 and December 31, 2014, by contractual maturity, are shown in the following table.  Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2015
Remaining Time to Maturity	Amortized Cost Basis		Fair Value
Less than one year	$	570,394	$	569,076
One to five years		1,926,643		1,928,435
Five to ten years		61,590		62,004
More than ten years		1,768,935		1,774,796
Total	$	4,327,562	$	4,334,311

	December 31, 2014
Remaining Time to Maturity	Amortized Cost Basis		Fair Value
Less than one year	$	570,236	$	569,734
One to five years		1,985,297		1,981,134
Five to ten years		162,124		162,519
More than ten years		1,649,169		1,653,512
Total	$	4,366,826	$	4,366,899

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REINSURANCE, Reinsurance Agreements (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015 Occurence	Dec. 31, 2014 Occurence
Property Insurance Treaties on Any One Loss Occurrence not to Exceed $110,000,000 [Member] | Treaties from April 1, 2014 through March 31, 2015 [Member] | Maximum [Member]
Effects of Reinsurance [Line Items]
Percentage reinsured (in hundredths)	80.00%
Reinsurance recoverables on losses and LAE	$ 110,000,000
Property Insurance Treaties on Any One Loss Occurrence not to Exceed $40,000,000 [Member] | Treaties from April 1, 2014 through March 31, 2015 [Member] | Maximum [Member]
Effects of Reinsurance [Line Items]
Percentage reinsured (in hundredths)	10.00%
Reinsurance recoverables on losses and LAE	4,000,000
Casualty Insurance Treaties [Member] | Treaties from April 1, 2014 through March 31, 2015 [Member] | Maximum [Member]
Effects of Reinsurance [Line Items]
Percentage reinsured (in hundredths)	64.00%
Residential Quota Share Reinsurance Treaties [Member] | Treaties from April 1, 2013 through March 31, 2014 [Member]
Effects of Reinsurance [Line Items]
Percentage reinsured (in hundredths)	90.00%
Number of layers for reinsurance	4
Gross loss covered	76,000,000
Retention payable, total	4,000,000
Net retention amount under reinsurance liability	400,000
Residential Quota Share Reinsurance Treaties [Member] | Treaties from April 1, 2013 through March 31, 2014 [Member] | Maximum [Member]
Effects of Reinsurance [Line Items]
Reinsurance recoverables on losses and LAE	80,000,000
Property Catastrophe Treaties [Member] | Treaties from April 1, 2014 through March 31, 2015 [Member]
Effects of Reinsurance [Line Items]
Percentage reinsured (in hundredths)	20.00%
Number of layers for reinsurance	4
Gross loss covered	110,000,000
Retention payable, total	4,000,000
Net retention amount under reinsurance liability	400,000
Non-Weather Losses [Member]
Effects of Reinsurance [Line Items]
Gross loss covered	500,000	500,000
Net loss covered	$ 50,000	$ 50,000
Number of loss occurrences	2	2

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UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES [Abstract]
Reserve for losses and LAE, beginning of period	$ 15,009,506	$ 15,884,062
Reinsurance recoverables on losses and LAE	(13,995,400)	(15,090,175)
Reserve for losses and LAE, net of reinsurance recoverables at beginning of year	1,014,106	793,887
Add provision for claims and LAE occurring in:
Current year	390,477	98,976
Prior years	286,693	252,000
Net incurred losses and LAE during the current period	677,170	350,976
Deduct payments for claims and LAE occurring in:
Current year	225,615	167,599
Prior years	347,693	222,628
Net claim and LAE payments during the current period	573,308	390,227
Reserve for losses and LAE, net of reinsurance recoverables, at end of period	1,117,968	754,636
Reinsurance recoverables on losses and LAE	13,650,287	16,707,683
Reserve for losses and LAE, end of period	14,768,255	17,462,319
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years	$ 286,693	$ 252,000

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Income and Comprehensive Income [Abstract]
Net income	$ 1,018,977	$ 475,245
Change in unrealized gain on investments:
Unrealized gain arising from the period	6,676	0
Deferred income taxes on above change	0	0
Total other comprehensive income, net of income taxes	6,676	0
Comprehensive income	$ 1,025,653	$ 475,245

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2015

RELATED PARTY TRANSACTIONS [Abstract]

RELATED PARTY TRANSACTIONS

3. RELATED PARTY TRANSACTIONS

In August 2013, HAHC entered into an agreement or the "Advisory Agreement", with Inter-Atlantic Advisors III, Ltd., or "Inter-Atlantic", under which Inter-Atlantic agrees to perform certain management services for the Company. A number of our directors are among the beneficial owners of Inter-Atlantic.  The Advisory Agreement has an initial term of six years, to be automatically renewed from year-to-year thereafter, unless terminated by either party upon 60 days notice prior to the termination of the initial or any renewal term.  For its services, the Company will pay Inter-Atlantic an annual fee of $300,000, as well as, an annual grant of shares of our common stock with an aggregate fair market value of $150,000 at the time of grant, plus reimburse Inter-Atlantic's expenses incurred in connection with the performance of its service. As long as the Advisory Agreement is in effect and the fees and expense reimbursements are paid, the directors of the Company that are affiliated with Inter-Atlantic have agreed to waive any other compensation for their service as directors.

For the three months ended March 31, 2015, the Company incurred an expense of $225,000 (of which $150,000 is represented by the issuance of 227,273 shares of common stock) for services performed under the Advisory Agreement.

For the three months ended March 31, 2014, the Company incurred an expense of $225,000 (of which $150,000 is represented by the issuance of 288,462 shares of common stock) for services performed under the Advisory Agreement.

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2015

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

Financial assets measured at fair value on a recurring basis

The Company's short-term investments comprised of certificates of deposit held at financial institutions which are not measured at fair value on a recurring basis. A portion of the Company's cash and cash equivalents include money market mutual fund accounts held at financial institutions which are measured at fair value on a recurring basis. Fixed-maturity securities held as available-for-sale are carried at fair value in our consolidated financial statements. The following tables provide information as of March 31, 2015 and December 31, 2014, about the Company's financial assets measured at fair value on a recurring basis:

	Fair Value Measurements Using
	Level 1			Level 2			Level 3			Total
As of March 31, 2015
Money market mutual funds		$	4,034,583		$	-		$	-		$	4,034,583
Restricted money market mutual funds			300,000			-			-			300,000
Securities-available-for-sale fixed-maturity:
Obligations of states, municipalities and political subdivisions			-			3,791,487			-			3,791,487
U.S. Treasury			-			542,824			-			542,824
Total		$	4,334,583		$	4,334,311		$	-		$	8,668,894
	Fair Value Measurements Using
	Level 1			Level 2			Level 3			Total
As of December 31, 2014
Money market mutual funds		$	3,372,527		$	-		$	-		$	3,372,527
Restricted money market mutual funds			300,000			-			-			300,000
Securities-available-for-sale fixed-maturity:
Obligations of states, municipalities and political subdivisions			-			3,827,245			-			3,827,245
U.S. Treasury			-			539,654			-			539,654
Total		$	3,672,527		$	4,366,899		$	-		$	8,039,426

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Securities-available-for-sale fixed maturity [Abstract]
U.S. treasury	$ 542,824	$ 539,654
Fair Value Measured on a Recurring Basis [Member]
Fair Value of Financial Assets [Abstract]
Money market mutual funds	4,034,583	3,372,527
Restricted money market mutual funds	300,000	300,000
Securities-available-for-sale fixed maturity [Abstract]
Obligations of states, municipalities and political subdivisions	3,791,487	3,827,245
U.S. treasury	542,824	539,654
Total assets	8,668,894	8,039,426
Transfers Between Level 1 and Level 2 [Abstract]
Transfers from Level 1 to Level 2	0
Transfers from Level 2 to Level 1	0
Fair Value Measured on a Recurring Basis [Member] | Level 1 [Member]
Fair Value of Financial Assets [Abstract]
Money market mutual funds	4,034,583	3,372,527
Restricted money market mutual funds	300,000	300,000
Securities-available-for-sale fixed maturity [Abstract]
Obligations of states, municipalities and political subdivisions	0
U.S. treasury	0	0
Total assets	4,334,583	3,672,527
Fair Value Measured on a Recurring Basis [Member] | Level 2 [Member]
Fair Value of Financial Assets [Abstract]
Money market mutual funds	0	0
Restricted money market mutual funds	0	0
Securities-available-for-sale fixed maturity [Abstract]
Obligations of states, municipalities and political subdivisions	3,791,487	3,827,245
U.S. treasury	542,824	539,654
Total assets	4,334,311	4,366,899
Fair Value Measured on a Recurring Basis [Member] | Level 3 [Member]
Fair Value of Financial Assets [Abstract]
Money market mutual funds	0	0
Restricted money market mutual funds	0	0
Securities-available-for-sale fixed maturity [Abstract]
Obligations of states, municipalities and political subdivisions	0
U.S. treasury	0	0
Total assets	$ 0	$ 0

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REINSURANCE

3 Months Ended

Mar. 31, 2015

REINSURANCE [Abstract]

REINSURANCE

13. REINSURANCE

Certain premiums and benefits are ceded to other insurance companies under various reinsurance agreements. The reinsurance agreements provide HAIC with increased capacity to write larger risks and maintain its exposure to loss within its capital resources. Ceded reinsurance contracts do not relieve HAIC from its obligations to policyholders. HAIC remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize its exposure to significant losses from reinsurer insolvencies, HAIC evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers.

Commencing April 1, 2014 and ending March 31, 2015, the Company reinsured its property and casualty risk under quota share reinsurance treaties with third party reinsurers.  The treaties cover 80% of its risk under property coverage on any one loss occurrence not to exceed $110 million; 10% of its risk under property coverage on any one loss occurrence not to exceed $4 million and approximately 64% of its risk under casualty coverages.

Property catastrophe treaties, which went into effect on the same day and having the same term as the quota share treaties, develop over four layers and 20% of our risk on property coverage on a gross loss of $110 million excess of $4 million per occurrence. The Company's net retention is $400,000 per loss occurrence.

From April 1, 2013 and ending March 31, 2014, the Company reinsured with various third party reinsurers under residential quota share reinsurance treaties, 90% of its risk. The reinsurers' liability under the quota share arrangement beginning in respect to any one loss occurrence shall not exceed $80 million. Property catastrophe treaties, which went into effect on the same day and have the same term as the quota share treaties, develop over four layers and cover a gross loss of $76 million excess of $4 million per occurrence. The Company's net retention is $400,000 per occurrence.

The Company also purchases reinsurance covering non-weather losses (two occurrences) in excess of a gross loss of $500,000 per occurrence for all coverage lines (a net loss of $50,000). This coverage which was in force during 2015 and 2014 had been obtained principally to protect the Company in the event of a large fire loss.

The effects of reinsurance on premiums written and earned were as follows, for the three months ended March 31, 2015 and March 31, 2014:

	Three Months Ended March 31, 2015								Three Months Ended March 31, 2014
	Written				Earned				Written				Earned
Direct premiums		$	18,258,033			$	18,433,681			$	14,428,945			$	14,444,123
Ceded premiums			(16,166,379	)			(17,243,390	)			(12,883,015	)			(13,146,456	)
Net Premiums		$	2,091,654			$	1,190,291			$	1,545,930			$	1,297,667

Following is a summary of HAIC's reinsurance balances under the above described reinsurance treaties as of and for the three months ended March 31, 2015 and December 31, 2014:

	March 31, 2015		December 31, 2014
Ceded premiums payable	$	8,449,205	$	4,342,874
Ceded loss adjustment expenses	$	825,508	$	4,763,808
Ceded loss and loss adjustment expense reserve	$	13,650,287	$	13,995,400
Ceded unearned premium reserve	$	35,284,456	$	35,442,177
Ceded earned premiums	$	17,243,390	$	60,484,640