40-234b.Unearned premium reserves required for domestic titleinsurance companies.The unearned premium reserve required to be maintained by any domestictitle insurance company engaged exclusively in the business of insuringtitles to real estate shall consist of:
(1) The amount of the unearned premium reserve held as of theeffective date of this act; and
(2) the amount of all additions required to be made to such reserveby this act, less the withdrawal therefrom as required by this section.
On or after the effective date of this act, a domestic titleinsurance company engaged exclusively in the business of insuring titlesto real estate shall add to its unearned premium reserve, in respect toeach title insurance policy, leasehold policy, contract or reinsuranceagreement issued by it, a sum equal to one dollar fifty cents ($1.50)plus twelve and one-half cents (12 1/2[) for each one thousand dollars($1,000) (or major portion of any fraction thereof) of the face amountof net retained liability on each such policy, contract or reinsuranceagreement, under the terms of which such domestic title insurerreinsures all or a portion of any risk assumed by another title insurerqualified to do business in this state, and shall separately record theaggregate amount so set aside and reserved in respect to such policies,contracts or agreements written in each calendar year. The amounts setaside as additions to the unearned premium reserve shall be deductedfrom income in determining net profits of any such domestic titleinsurance company. The entire amount of the unearned premium reserveheld, as of the effective date of this act, by any domestic titleinsurance company engaged exclusively in the business of insuring titlesto real estate shall be presumed to have been added to the reserve ofsuch title insurer in the calendar year during which this act becomeseffective, and such entire amount shall be released from said reserveand restored to income under the formula hereinafter set forth in thissection. For the purposes of determining the amounts of the unearnedpremium reserve that shall be withdrawn pursuant to this section, allpolicies, contracts or other agreements of title insurance, orreinsurance agreements of title insurance shall be considered as datedJuly 1 in the year of issue. The aggregate of the amounts set aside inunearned premium reserve by any domestic title insurance company engagedexclusively in the business of insuring titles to real estate in anycalendar year pursuant to this section shall be released from saidreserve and shall be restored to income pursuant to the followingformula: One-twentieth (1/20th) of said aggregate sum on July 1 of eachof the twenty (20) years next succeeding the year of addition to thereserve. If substantially the entire liability under all policies,contracts of title insurance and reinsurance agreements of any titleinsurance company shall be reinsured, the value of the considerationreceived by a reinsuring title insurance company authorized solely totransact the business of title insurance, shall constitute in itsentirety, unearned premium portions of original premiums and shall beadded to its unearned premium reserve, and shall be deemed, for recoverypurposes, to have been provided for liabilities assumed during the yearof such reinsurance. The amount of such addition to the unearned premiumreserve of such assuming title insurance company shall not be less thantwo-thirds of the amount of the unearned premium reserve required to bemaintained by the ceding title insurance company at the time of suchreinsurance.
40-234b.Unearned premium reserves required for domestic titleinsurance companies.The unearned premium reserve required to be maintained by any domestictitle insurance company engaged exclusively in the business of insuringtitles to real estate shall consist of:
(1) The amount of the unearned premium reserve held as of theeffective date of this act; and
(2) the amount of all additions required to be made to such reserveby this act, less the withdrawal therefrom as required by this section.
On or after the effective date of this act, a domestic titleinsurance company engaged exclusively in the business of insuring titlesto real estate shall add to its unearned premium reserve, in respect toeach title insurance policy, leasehold policy, contract or reinsuranceagreement issued by it, a sum equal to one dollar fifty cents ($1.50)plus twelve and one-half cents (12 1/2[) for each one thousand dollars($1,000) (or major portion of any fraction thereof) of the face amountof net retained liability on each such policy, contract or reinsuranceagreement, under the terms of which such domestic title insurerreinsures all or a portion of any risk assumed by another title insurerqualified to do business in this state, and shall separately record theaggregate amount so set aside and reserved in respect to such policies,contracts or agreements written in each calendar year. The amounts setaside as additions to the unearned premium reserve shall be deductedfrom income in determining net profits of any such domestic titleinsurance company. The entire amount of the unearned premium reserveheld, as of the effective date of this act, by any domestic titleinsurance company engaged exclusively in the business of insuring titlesto real estate shall be presumed to have been added to the reserve ofsuch title insurer in the calendar year during which this act becomeseffective, and such entire amount shall be released from said reserveand restored to income under the formula hereinafter set forth in thissection. For the purposes of determining the amounts of the unearnedpremium reserve that shall be withdrawn pursuant to this section, allpolicies, contracts or other agreements of title insurance, orreinsurance agreements of title insurance shall be considered as datedJuly 1 in the year of issue. The aggregate of the amounts set aside inunearned premium reserve by any domestic title insurance company engagedexclusively in the business of insuring titles to real estate in anycalendar year pursuant to this section shall be released from saidreserve and shall be restored to income pursuant to the followingformula: One-twentieth (1/20th) of said aggregate sum on July 1 of eachof the twenty (20) years next succeeding the year of addition to thereserve. If substantially the entire liability under all policies,contracts of title insurance and reinsurance agreements of any titleinsurance company shall be reinsured, the value of the considerationreceived by a reinsuring title insurance company authorized solely totransact the business of title insurance, shall constitute in itsentirety, unearned premium portions of original premiums and shall beadded to its unearned premium reserve, and shall be deemed, for recoverypurposes, to have been provided for liabilities assumed during the yearof such reinsurance. The amount of such addition to the unearned premiumreserve of such assuming title insurance company shall not be less thantwo-thirds of the amount of the unearned premium reserve required to bemaintained by the ceding title insurance company at the time of suchreinsurance.
40-234b.Unearned premium reserves required for domestic titleinsurance companies.The unearned premium reserve required to be maintained by any domestictitle insurance company engaged exclusively in the business of insuringtitles to real estate shall consist of:
(1) The amount of the unearned premium reserve held as of theeffective date of this act; and
(2) the amount of all additions required to be made to such reserveby this act, less the withdrawal therefrom as required by this section.
On or after the effective date of this act, a domestic titleinsurance company engaged exclusively in the business of insuring titlesto real estate shall add to its unearned premium reserve, in respect toeach title insurance policy, leasehold policy, contract or reinsuranceagreement issued by it, a sum equal to one dollar fifty cents ($1.50)plus twelve and one-half cents (12 1/2[) for each one thousand dollars($1,000) (or major portion of any fraction thereof) of the face amountof net retained liability on each such policy, contract or reinsuranceagreement, under the terms of which such domestic title insurerreinsures all or a portion of any risk assumed by another title insurerqualified to do business in this state, and shall separately record theaggregate amount so set aside and reserved in respect to such policies,contracts or agreements written in each calendar year. The amounts setaside as additions to the unearned premium reserve shall be deductedfrom income in determining net profits of any such domestic titleinsurance company. The entire amount of the unearned premium reserveheld, as of the effective date of this act, by any domestic titleinsurance company engaged exclusively in the business of insuring titlesto real estate shall be presumed to have been added to the reserve ofsuch title insurer in the calendar year during which this act becomeseffective, and such entire amount shall be released from said reserveand restored to income under the formula hereinafter set forth in thissection. For the purposes of determining the amounts of the unearnedpremium reserve that shall be withdrawn pursuant to this section, allpolicies, contracts or other agreements of title insurance, orreinsurance agreements of title insurance shall be considered as datedJuly 1 in the year of issue. The aggregate of the amounts set aside inunearned premium reserve by any domestic title insurance company engagedexclusively in the business of insuring titles to real estate in anycalendar year pursuant to this section shall be released from saidreserve and shall be restored to income pursuant to the followingformula: One-twentieth (1/20th) of said aggregate sum on July 1 of eachof the twenty (20) years next succeeding the year of addition to thereserve. If substantially the entire liability under all policies,contracts of title insurance and reinsurance agreements of any titleinsurance company shall be reinsured, the value of the considerationreceived by a reinsuring title insurance company authorized solely totransact the business of title insurance, shall constitute in itsentirety, unearned premium portions of original premiums and shall beadded to its unearned premium reserve, and shall be deemed, for recoverypurposes, to have been provided for liabilities assumed during the yearof such reinsurance. The amount of such addition to the unearned premiumreserve of such assuming title insurance company shall not be less thantwo-thirds of the amount of the unearned premium reserve required to bemaintained by the ceding title insurance company at the time of suchreinsurance.
