Section 58-25-24 - Calculation of adjusted statutory or unearned premium reserve.
58-25-24. Calculation of adjusted statutory or unearned premium reserve. The insurer shall calculate an adjusted statutory or unearned premium reserve as of the year of first application of § 58-25-22. The adjusted reserve must be calculated as if § 58-25-22 had been in effect for each year beginning twenty years before the year of first application of § 58-25-22. For purposes of this calculation, the balance of the reserve as of that date is considered to be zero. If the adjusted reserve so calculated exceeds the aggregate amount set aside for statutory or unearned premiums in the insurer's most recent annual statement filed with the director, the insurer shall, out of total charges for policies of title insurance, increase its statutory or unearned premium reserve by an amount equal to one-sixth of that excess in each of the succeeding six years, beginning with the calendar year that includes the year of first application of § 58-25-22 until the entire excess has been added.
Source: SL 2002, ch 239, § 3.