§ 10-11-110 — Amount of unearned premium reserve - release

Colorado § 10-11-110

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

Text

(1) The unearned
premium reserve of every title insurance company required to maintain such
reserves in this state shall consist of:

(a) The amount of the unearned premium reserve held as of July 1, 1969,
pursuant to law; and

(b) The amount of all additions required to be made to such reserve by this
section, less the withdrawals therefrom as permitted by this section.

(2) On and after July 1, 1969, every title insurance company shall add to its
unearned premium reserve, in respect to each title insurance policy, leasehold
policy, contract, or reinsurance agreement issued by it, a sum equal to one dollar
for each such policy, contract, or agreement, plus fifteen cents for each one
thousand dollars face amount of net retained liability on each such policy, contract,
or reinsurance agreement, as defined in section 10-11-102 (4), or the amount
reinsured by it, and shall separately record the aggregate amounts so set aside and
reserved in respect to such policies, contracts, or agreements written in each
calendar year.

(3) The amounts set aside as additions to the unearned premium reserve
shall be deducted from income in determining net profits of any title insurance
company.

(4) For the purposes of determining the amounts of the unearned premium
reserve that may be withdrawn pursuant to subsection (5) of this section, all
policies, contracts of title insurance, or reinsurance agreements of title insurance
shall be considered as dated July 1 in the year of issue.

(5) On and before December 31, 2000, the aggregate of the amounts set
aside in unearned premium reserve in any calendar year pursuant to subsection (2)
of this section shall be released from said reserve and restored to income pursuant
to the following formula: One-tenth of said aggregate sum on July 1 of each of the
five years next succeeding the year of addition to the reserve and one-thirtieth of
said aggregate sum on July 1 of each succeeding year thereafter until the entire
sum has been so released and restored to income. On and after January 1, 2001, the
aggregate of the amounts set aside in unearned premium reserve in any calendar
year pursuant to subsection (2) of this section shall be released from said reserve
and restored to income in accordance with the formula prescribed by nationally
recognized insurance statutory accounting principles.

(6) (Deleted by amendment, L. 2001, p. 286, � 11, effective March 30, 2001.)

(7) If substantially the entire outstanding liability under all policies,
contracts of title insurance, and reinsurance agreements of any such title insurance
company shall be reinsured, the value of the consideration received by a reinsuring
title insurance company authorized to transact the business of title insurance in this
state shall constitute, in its entirety, unearned portions of original premiums and
shall be added to its unearned premium reserve, and shall be deemed, for recovery
purposes, to have been provided for liabilities assumed during the year of such
reinsurance. The amount of such addition to the unearned premium reserve of such
assuming title insurance company shall be not less than two-thirds of the amount
of the unearned premium reserve required to be maintained by the ceding title
insurance company at the time of such reinsurance.

Legislative History

Source: L. 69: p. 523, � 1. C.R.S. 1963: � 72-26-10. L. 2001: (5) and (6) amended, p. 286, � 11, effective March 30.