Section 376.1017 – Plan to establish loss reserves — plan to establish surplus account, amount.

Effective – 28 Aug 1993

376.1017. Plan to establish loss reserves — plan to establish surplus account, amount. — 1. A plan shall establish loss reserves for all incurred losses, both reported and unreported, and for unearned premiums.

2. A plan also shall establish a surplus account equal to the greater of the following:

(1) Three times the average paid monthly premium during the plan’s most recent fund year;

(2) For plans which do not yet have one fund year’s experience, three times estimated monthly premium; or

(3) Six hundred thousand dollars.

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(L. 1993 H.B. 709 § 29)