§ 10-11-109 — Unearned premium reserve

Colorado § 10-11-109

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Title Insurance

Text

(1) In lieu of those reserves required
for other insurance companies, every domestic title insurance company, and every
foreign or alien title insurance company which under the state of domicile is not
required to maintain a substantially equivalent unearned premium reserve, shall, in
addition to other reserves, establish and maintain a reserve to be known as the
unearned premium reserve for title insurance, which shall, at all times and for all
purposes, constitute the unearned portions of premiums due or received and shall
be charged as a reserve liability of such title insurance company in determining its
financial condition.

(2) The unearned premium reserve shall be retained and held by such title
insurance company for the protection of the policyholders' interest in policies which
have not expired. Except upon liquidation, dissolution, or insolvency, assets equal to
the amount of such reserve shall not be subject to distribution among depositors or
other creditors or stockholders of such title insurance company until all claims of
policyholders or holders of other title insurance contracts or agreements of such
title insurance company have been paid in full and all liability on the policies or
other title insurance contracts or agreements, whether contingent or actual, has
been discharged or lawfully reinsured. Income from the investment of the amount
of such reserve shall be the unrestricted property of the title insurance company.

Legislative History

Source: L. 69: p. 522, � 1. C.R.S. 1963: � 72-26-9.