Section 33-10-6 - Unearned premium reserve required for property, general casualty, and surety insurance generally(a) With reference to insurance against loss or damage to property, except as provided in Code Section 33-10-7, and with reference to all general casualty insurance and surety insurance, every insurer shall maintain an unearned premium reserve on all policies in force.(b) The Commissioner may require that such reserves shall be equal to the unearned portions of the gross premiums in force after deducting reinsurance in solvent insurers as computed on each respective risk from the policy's date of issue. If the Commissioner does not so require, the portions of the gross premium in force, less reinsurance in solvent insurers to be held as a premium reserve, shall be computed according to the following table: Term for Which Policy | Reserve for Unearned |
Was Written | Premium |
1 year or less ........................ | 1/2 |
2 years ........................ | First year 3/4 |
....................... | Second year 1/4 |
3 years ........................ | First year 5/6 |
....................... | Second year 1/2 |
....................... | Third year 1/6 |
4 years ........................ | First year 7/8 |
....................... | Second year 5/8 |
....................... | Third year 3/8 |
....................... | Fourth year 1/8 |
5 years ........................ | First year 9/10 |
....................... | Second year 7/10 |
....................... | Third year 1/2 |
....................... | Fourth year 3/10 |
....................... | Fifth year 1/10 |
Over 5 years ........................ | Pro rata |
(c) Unearned premium reserves on policies written for an intermediate period shall be calculated on a monthly pro rata basis.(d) In lieu of computation according to the foregoing table, all of such reserves may be computed, at the option of the insurer, on a monthly or more frequent pro rata basis.(e) After adopting a method for computing such reserve, a domestic insurer shall not change methods without approval of the Commissioner, and a foreign or alien insurer shall not change methods without approval of the insurance supervisory official of the state of its domicile.(f) This Code section does not apply to title insurance.