Montana Statutes

§ 33-4-406 — Reserves -- Cash Premium Plan

Montana·Title 33 INSURANCE AND INSURANCE COMPANIES·Ch. 4 FARM MUTUAL INSURERS·Part 4 Finance

33-4-406 . Reserves -- cash premium plan. Each insurer transacting business on the cash premium plan shall maintain the following reserves:

(1)a loss reserve, in amount reasonably adequate to pay in full all losses already incurred but currently unpaid. The amount subsequently paid on such losses shall be credited against this reserve.
(2)a reserve for unearned premiums, which reserve shall be computed at 50% of net premiums (gross premiums less premiums returned) charged and collected for unexpired policy periods that commenced during the calendar year covered by the financial statement plus 100% of such net premiums charged and collected in advance for policy periods that are to commence after such calendar year. In the alternative, the insurer may at its option compute its entire rese

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Legislative History

En. Sec. 505, Ch. 286, L. 1959; R.C.M. 1947, 40-4838.

Nearby Sections

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