Hewlett, N.Y.-based DCAP Group says its Commercial Mutual Insurance Co. converted to a stock property-casualty company July 1.

The company also announced that it has sold its three Pennsylvania retail insurance stores, as it continues to exit the retail insurance business and enter the insurance company business.

The new insurance company is Kingstone Insurance Co. and DCAP is now Kingstone Cos.

The company has been working to leave the brokerage sector for several months, with the Pennsylvania stores sales the final step. On April 17, DCAP sold its store locations in New York State. On May 1, DCAP sold its franchise business.

“The exiting from the insurance brokerage sector was part of our strategic plan to change our company into an insurance carrier.” Barry Goldstein, DCAP chairman and CEO, said in a statement.

Kingstone, an insurance brokerage, has acquired a 100% equity interest in CMIC as it converted $3.75 million of surplus notes of CMIC.

Goldstein said the new Kingstone corporate name “reflects the importance of this new, wholly-owned subsidiary to our company.”

The process of converted to a stock insurance company began in February 2007.

On Dec. 31, 2008, Commercial Mutual had $21.58 million in total assets, a $7.75 million policyholder surplus and $24.74 million in gross premium written.