Section 416-A:10 Amount of Unearned Premium Reserve, Release.
I. The unearned premium reserve of every title insurance company required to maintain such reserves in this state shall consist of:
(a) The amount of the unearned premium reserve held as of September 10, 1971, pursuant to law; and
(b) The amount of all additions required to be made to such reserve by this section, less the withdrawals therefrom as permitted by this section.
II. Every title insurance company shall add to its unearned premium reserve in respect to each title insurance policy, leasehold policy, contract, or reinsurance agreement issued by it, a sum equal to $1 for each such policy, contract, or agreement, plus $.15 for each $1,000 face amount of net retained liability on each such policy, contract, or reinsurance agreement, as defined in RSA 416-A:2, X, or the amount reinsured by it, and shall separately record the aggregate amounts so set aside and reserved in respect to such policies, contracts, or agreements written in each calendar year.
III. The amounts set aside as additions to the unearned premium reserve shall be deducted from income in determining net profits of any title insurance company.
IV. For the purposes of determining the amounts of the unearned premium reserve that may be withdrawn pursuant to paragraph V of this section, all policies, contracts of title insurance, or reinsurance agreements of title insurance shall be considered as dated July 1 in the year of issue.
V. The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to paragraph II of this section shall be released from said reserve and restored to income pursuant to the following formula: 1/10 of said aggregate sum on July 1 of each of the 5 years next succeeding the year of addition to the reserve and 1/30 of said aggregate sum on July 1 of each succeeding year thereafter until the entire sum shall have been so released and restored to income.
VI. The entire amount of the unearned premium reserve held as of September 10, 1971 pursuant to law shall be presumed to have been added to the reserve in the calendar year next preceding September 10, 1971 and shall be released from said reserve and restored to income under the formula set forth in paragraph V of this section.
VII. If substantially the entire outstanding liability under all policies, contracts of title insurance, and reinsurance agreements of any such title insurance company shall be reinsured, the value of the consideration received by a reinsuring title insurance company authorized to transact the business of title insurance in this state, shall constitute in its entirety, unearned portions of original premiums and shall be added to its unearned premium reserve, and shall be deemed, for recovery purposes, to have been provided for liabilities assumed during the year of such reinsurance. The amount of such addition to the unearned premium reserve of such assuming title insurance company shall be not less than 2/3 of the amount of the unearned premium reserve required to be maintained by the ceding title insurance company at the time of such reinsurance.
Source. 1971, 561:1, eff. Sept. 10, 1971.