Insurance Reserves

9 Months Ended

Sep. 30, 2011

Insurance Reserves [Abstract]

Insurance Reserves

9. Insurance Reserves

The Company records expenses and liabilities for losses and loss adjustment expenses for claims associated with: (1) insurance policies with Allegiant Insurance Company, Inc., A Risk Retention Group ("Allegiant") and re-insurance agreements issued by StarAmerican Insurance Ltd. ("StarAmerican"); (2) self-insurance, including workers compensation; and (3) deductible amounts under the Company's insurance policies. The establishment of the provisions for outstanding losses and loss adjustment expenses is based on actuarial studies that include known facts and interpretations of circumstances, including the Company's experience with similar cases and historical trends involving claim payment patterns, pending levels of unpaid claims, product mix or concentration, claim severity, frequency patterns such as those caused by natural disasters, fires, or accidents, depending on the business conducted, and changing regulatory and legal environments.

The following table summarizes the insurance reserve activity for the three and nine months ended September 30, 2011 and 2010 (in thousands).

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Balance at beginning of period	$	52,310		$	48,312		$	52,901		$	51,606
Expense provisions		645			841			1,712			2,655
Cash payments		(1,380	)		(212	)		(3,386	)		(5,320	)
Adjustments		-			-			348			-
Balance at end of period	$	51,575		$	48,941		$	51,575		$	48,941