20-1569. Amount of unearned premium reserve; release

281 words·~1 min read·/az/title-20/20-1569

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. The unearned premium reserve of every title insurer shall consist of:

1. The amount of the unearned premium reserve held as of January 1, 1968.

2. The amount of all additions required to be made to the reserve by this section, less withdrawals permitted by this section.

B. Every title insurer shall add to its unearned premium reserve in respect to each title insurance policy, whether primary insurance, reinsurance or coinsurance, issued by it on real estate a sum of money out of the fees due or received for the title insurance and deemed to be unearned portions of fees and a sum equal to ten cents for each one thousand dollars of the face amount of net retained liability, as defined in section 20-1562, and shall separately record the aggregate amounts set aside and reserved with respect to policies, contracts or agreements written in each calendar year.

C. The amounts set aside as additions to the unearned premium reserve shall be deducted in determining net profits of any title insurer.

D. For the purpose of determining the amounts of the unearned premium reserve that may be withdrawn pursuant to subsection E of this section, and the interest of the policyholders under section 20-1571, all policies of title insurance shall be considered as dated on July 1 in the year of issue.

E. The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to subsection B of this section shall be released from the reserve and restored to income in the year of release pursuant to the formula prescribed in the accounting practices and procedures manual adopted by the national association of insurance commissioners.