A plan shall establish loss reserves for all incurred losses, both reported and unreported, and for unearned premiums, in the same manner required for health insurers under Sections 38-9-170 and 38-9-190.

A plan also shall establish a surplus account equal to the greater of:

1. (a) three times the average paid monthly premium during the plan's most recent fund year;
2. (b) for plans which do not yet have one fund year's experience, three times estimated monthly premium; or
3. (c) one hundred thousand dollars.

HISTORY: Former 1976 Code SECTION 38-65-50 [1985 Act No. 137, SECTION 5] recodified as SECTION 38-41-70 by 1987 Act No. 155, SECTION 1; 1993 Act No. 181, SECTION 654.