§ 26-23-311 — Loss and loss expense reserve

(a) All title insurers licensed in this state shall
establish and maintain reserves against unpaid losses and loss
expenses.
(b) Upon receiving notice from or on behalf of the insured
of a title defect in or lien or adverse claim against the title
of the insured that may result in a loss or cause expense to be
incurred in the proper disposition of the claim, the title
insurer shall determine the amount to be added to the reserve,
which amount shall reflect a careful estimate of the loss or
loss expense likely to result by reason of the claim.
(c) Reserves required under this section may be revised
from time to time and shall be redetermined at least once each
year.