20-1569. Amount of unearned premium reserve;
release
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may be withdrawn pursuant to subsection E of this section, and the interest of the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.
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