58-26-37. Unearned premium reserve--Computation--Use of table.
149 words·~1 min read·
/sd/title-58/chapter-58-26/58-26-37·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The director may require that reserves required by § 58-26-36 shall be equal to the unearned portions of the gross premiums in force after deducting applicable reinsurance in solvent insurers as computed on each respective risk from the policy's date of issue. If the director does not so require, the portions of the gross premium in force, less applicable reinsurance in solvent insurers, to be held as an unearned premium reserve, shall be computed according to the following table:
Term for which policy was written
Reserve for unearned premium
1 Year or less
1/2
2 Years
1st Year
3/4
2nd Year
1/4
3 Years
1st Year
5/6
2nd Year
1/2
3rd Year
1/6
4 Years
1st Year
7/8
2nd Year
5/8
3rd Year
3/8
4th Year
1/8
5 Years
1st Year
9/10
2nd Year
7/10
3rd Year
1/2
4th Year
3/10
5th Year
1/10
Over 5 Years
Pro Rata