56-35-115 - Unearned premium reserve.
56-35-115. Unearned premium reserve.
On any policy of title insurance hereafter issued by any domestic insurer, there shall be reserved initially a sum equal to ten percent (10%) of the risk rate charge on the policy. At the end of each year, for the first five (5) years thereafter, there shall be a reduction of one tenth (1/10) of the sum so reserved, and thereafter, for a period of twenty (20) years, there shall be a reduction of one twentieth (1/20) of the remainder of the sum. The sum required to be reserved for unearned risk rates on contracts of title insurance shall at all times and for all purposes be considered as, and shall constitute, unearned portions of the risk rates. In calculating reserves, all contracts of title insurance shall be assumed to be dated in the middle of the year in which they are issued. Any foreign title insurance corporation doing business in this state shall be required to comply with this section, unless, by the laws of its state of domicile, it is required to set aside unearned premium or risk rate reserves in at least as great an amount as required by this section.
[Acts 1955, ch. 173, § 10; T.C.A., § 56-3415.]