20-1572. Reserve for unpaid losses and loss
expense
A. Each title insurer shall at all times establish and maintain, in addition to
other reserves, a reserve against unpaid losses, and against loss expense, and shall
calculate the reserves by making a careful estimate in each case of the loss and loss
expense likely to be incurred, by reason of every claim presented, pursuant to notice
from or on behalf of the insured, of a title defect in or lien or adverse claim against
the title insured, that may result in a loss or cause expense to be incurred for the
proper disposition of the claim. The sums of the items estimated pursuant to this section
shall be the total amounts of the reserves against unpaid losses and loss expenses of the
title insurer.
B. In combination with the reserves prescribed in section 20-1569 and subsection A
of this section, each title insurer shall establish a supplemental reserve that consists
of all other reserves that are necessary to cover the insurer's liabilities for all
losses, claims and loss adjustment expenses.
C. The amounts estimated pursuant to this section may be revised from time to time
as circumstances warrant, but shall be redetermined at least once each year.
D. The amounts set aside in the reserves in any year shall be deducted in
determining the net profits of any title insurer for that year.
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