When determining its liabilities, a health maintenance organization shall include an amount estimated in the aggregate to provide:

1. (1) for any unearned premium;

2. (2) for the payment of all claims for health care expenditures, whether reported or unreported:

   1. (A) that have been incurred;
   2. (B) that are unpaid; and
   3. (C) for which the organization is or may be liable; and
3. (3) for the expense of adjustment or settlement of claims described in subdivision (2).

As added by P.L.26-1994, SEC.25.