§ 26.1-14-09 — Reserves for malpractice claims

1. The reserve maintained by the company for outstanding losses under insurance
against injury arising out of the rendering of or the failure to render professional
services by an insured for all policies written during the eight years immediately
preceding the date of the reserve determination must be seventy percent of the earned
premiums of each of the eight years less all losses and loss expense payments made
under policies written in the corresponding years.
2. In any event, the reserves for each of the eight years may not be less than the
aggregate of estimated unpaid losses and loss expenses for claims incurred under
liability policies written in the corresponding year computed on an individual case basis
as to cases known and reported, plus reserves in an amount estimated in the
aggregate to provide for the payment of all losses or claims incurred on or prior to the
date of valuation but not previously reported, including an amount estimated to provide
for the expenses of adjustment, settlement, or litigation of the losses or claims.