State Codes and Statutes
Statutes > Nebraska > Chapter44 > 44-198844-1988. Reserves.(1) Indetermining the financial condition of a title insurer transacting the businessof title insurance under the Title Insurers Act, the general provisions ofthe insurance laws of this state requiring the establishment of reserves sufficientto cover all known and unknown liabilities, including allocated and unallocatedloss adjustment expense, shall apply except as provided in subsections (2)through (4) of this section.(2) A title insurer shall establish and maintain a known claim reservein an amount estimated to be sufficient to cover all unpaid losses, claims,and allocated loss adjustment expenses arising under title insurance policies,guaranteed certificates of title, guaranteed searches, and guaranteed abstractsof title and all unpaid losses, claims, and allocated loss adjustment expensesfor which the title insurer may be liable and for which the title insurerhas received notice by or on behalf of the insured, holder of a guaranteeor escrow, or security depositor.(3)(a) If a title insurer is a foreign or non-United-States title insurer,the title insurer shall establish and maintain a statutory or unearned premiumreserve consisting of the amount of statutory or unearned premium reserverequired by the laws of the domiciliary state of the title insurer.(b)(i) If a title insurer is a domestic insurer of this state, the titleinsurer shall establish and maintain a statutory or unearned premium reserve inan amount equal to seventeen cents per one thousand dollars of net retainedliability for each insurance policy.(ii) The amount set asidein the reserve required under subdivision (3)(b)(i) of this section shallbe released from the reserve and restored to net profits over a period oftwenty years pursuant to the following formula: Thirty percent of the aggregatesum in the year next succeeding the year of addition; fifteen percent of theaggregate sum in the next succeeding year; ten percent of the aggregate sumin each of the next succeeding two years; five percent of the aggregate sumin each of the next succeeding two years; three percent of the aggregate sumin each of the next succeeding two years; two percent of the aggregate sumin each of the next succeeding seven years; and one percent of the aggregatesum in each of the next succeeding five years. For each year in which a releaseof statutory or unearned premium reserve is authorized under this subdivision,such reserve shall be released over the course of the year in twelve equalmonthly amounts, beginning on July 1.(c)(i) Ifa title insurer that is organized under the laws of another state transfersits domicile to this state, the statutory or unearned premium reserve shallbe that amount required by the laws of the state of the title insurer's formerstate of domicile as of the date of transfer of domicile. Thereafter, theaggregate of such statutory or unearned premium reserve shall be releasedfrom the reserve and restored to profits over a period of twenty years pursuantto the formula set forth in subdivision (3)(c)(iii) of this section. (ii) Following the transferof domicile to this state of the title insurer described in subdivision (3)(c)(i) of this section,for business written after the date of transfer of domicile, the title insurershall add to and set aside in the statutory or unearned premium reserve suchamount as provided in subdivision (3)(b)(i) of this section.(iii) The amounts set aside in the reserverequired under subdivision (3)(c)(i) of this section shall be releasedfrom the reserve and restored to net profits over a period of twenty yearspursuant to the following formula: An initial release of thirtypercent of the aggregate of such reserves on the forty-fifth day followingthe last day of the calendar quarter in which the insurer transfers its domicile; fifteenpercent of the aggregate sum in thenext succeeding year; ten percent of the aggregate sum in eachof the next succeeding two years; five percent of the aggregate sum in each of the next succeeding two years; threepercent of the aggregate sum in eachof the next succeeding two years; two percent of the aggregate sum in each of the next succeeding seven years;and one percent of the aggregate sum in eachof the next succeeding five years. Foreach year in which a release of statutory or unearned premium reserve is authorizedunder this subdivision, such reserve shall be released over the course ofthe year in twelve equal monthly amounts, beginning on July 1.(4) A title insurer shall establish and maintain a supplemental reserveconsisting of any other reserves necessary, when taken in combination withthe reserves required by subsections (2) and (3) of this section, to coverthe title insurer's liabilities with respect to all losses, claims, and lossadjustment expenses.(5) Each title insurer subject to the Title Insurers Act shall filewith its annual financial statement required under section 44-322 a certificationby a member in good standing of the American Academy of Actuaries. The actuarialcertification required of a title insurer shall conform to the National Associationof Insurance Commissioners' annual statement instructions for title insurers. SourceLaws 1997, LB 53, § 11; Laws 2006, LB 875, § 3; Laws 2009, LB192, § 2.
