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

Montana Statutes

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

Montana § 33-4-406

Title 33INSURANCE AND INSURANCE COMPANIES

Ch. 4FARM MUTUAL INSURERS

Part 4Finance

This text of Montana § 33-4-406 (Reserves -- Cash Premium Plan) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 33-4-406 (2026).

Text

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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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 reserve for unearned premiums as the aggregate amount of the pro rata unearned premiums for each policy in force as at the end of the calendar year to be covered by the financial statement.