§ 514. Reserve credit for reinsurance
(a) An insurer may take credit for reserves on risks ceded to a reinsurer to the extent reinsured, except that no credit shall be allowed, as an asset or as a deduction from liability, to any ceding insurer for reinsurance unless the reinsurance is payable by the assuming insurer on the basis of the liability […]
§ 506. Noncancellable disability insurance reserve
(a) The legal minimum standard for computing the active life reserve, including the unearned premium reserve of noncancellable disability policies shall be based on Conference Modification of Class III Disability Experience with interest at not to exceed 3 ½ percent per annum on the full preliminary term basis. (b) For policies with a waiting period […]
§ 507. Loss records
An insurer shall maintain a complete and itemized record showing all losses and claims as to which it has received notice, including with regard to property, casualty, surety, and marine and transportation insurances, all notices received of the occurrence of any event which may result in a loss.
§ 508. Increased reserves
(a) If the Commissioner determines that an insurer’s unearned premium reserves, however computed, are inadequate, he may require the insurer to compute such reserves or any part thereof according to such other method or methods as are prescribed in this chapter. (b) If the loss experience of an insurer shows that its loss reserves, however […]
§ 509. Loss reserves, liability insurance
The reserves for outstanding losses and loss expense under policies of personal injury liability insurance and under policies of employer’s liability insurance shall be computed as follows: (1) for all liability suits being defended under policies written: (A) ten years or more prior to the date of determination, $1,500 for each suit; (B) five or […]
§ 505. Unearned premium reserve, marine and transportation insurance
With reference to marine and transportation insurance, premiums on trip risks not terminated shall be deemed unearned and the Commissioner may require the insurer to carry a reserve thereon equal to 100 percent on trip risks written during the month ended as of the date of statement and computed upon a pro rata basis or, […]
§ 501. Assets defined
In any determination of the financial condition of any insurer there shall be allowed as assets only such assets as belong wholly and exclusively to the insurer, which are registered, recorded, or held under the insurer’s name, and which consist of— (1) cash in the possession of the insurer or in transit under its control, […]
§ 502. Nonallowable assets
In addition to assets impliedly excluded under section 501 of this title the following expressly shall not be allowed as assets in any determination of the financial condition of an insurer: (1) goodwill, trade names, agency plants and other like intangible assets; (2) prepaid or deferred charges for expenses and commissions paid by the insurer; […]
§ 503. Liabilities
In any determination of the financial condition of an insurer, liabilities to be charged against its assets shall include— (1) the amount of its capital stock outstanding, if any; (2) the amount, estimated consistent with the provisions of this chapter, necessary to pay all of its unpaid losses and claims incurred on or prior to […]
§ 504. Unearned premium reserve, property, casualty, disability and surety insurance
(a) With reference to insurances against loss or damage to property, except as provided in section 505 of this title and with reference to all general casualty insurances, disability insurance except as provided in section 506 of this title and surety insurance, every insurer shall maintain an unearned premium reserve on all policies in force. […]