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Code · California · Insurance Code

§ 12382.6

135 words·~1 min read·/ca/insurance-code/12382-6

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If substantially the entire outstanding liability under all policies and contracts of title insurance or reinsurance of any ceding company shall be reinsured, pursuant to and as authorized by Section 12385, the total charge received by any reinsuring company authorized to transact the business of title insurance in this state shall constitute, in its entirety, unearned portions of original premiums, and shall be added to its unearned premium reserve and shall be deemed, for recovery purposes, to have been provided for liabilities assumed during the year of such reinsurance.
The amount of such addition to the unearned premium reserve of such reinsuring company shall be not less than two-thirds ( 2 3 rds) of the amount of the unearned premium reserve required to be maintained by the ceding company at the time of such reinsurance.
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