(1) In addition to an adequate reserve for outstanding losses, a title insurance company shall either:
- (a) maintain and segregate an unearned premium reserve fund of not less than 10 cents for each $1,000 face amount of retained liability under each title insurance contract or policy on a single insurance risk issued; or
- (b) have the commissioner review and approve a contract of reinsurance applicable to the title insurance company's policies, which contract adequately covers the exposure or risk which the unearned premium reserve would serve.
- (2) The fund shall be maintained for the protection of policyholders and is not subject to the claims of stockholders or creditors other than policyholders.
- (3) The title insurance company may release the fund in accordance with the standards of the NAIC Accounting Practices and Procedures Manual.
Amended by Chapter 198, 2022 General Session