§ 58-3-75. Loss and loss expense reserves of fire and marine insurance companies. - North Carolina Statutes

§58‑3‑75.  Loss and loss expense reserves of fire and marineinsurance companies.

In any determination of thefinancial condition of any fire or marine or fire and marine insurance companyauthorized to do business in this State, such company shall be charged, inaddition to its unearned premium liability as prescribed in G.S. 58‑3‑71,with a liability for loss reserves in an amount equal to the aggregate of theestimated amounts payable on all outstanding claims reported to it which aroseout of any contract of insurance or reinsurance made by it, and in additionthereto an amount fairly estimated as necessary to provide for unreportedlosses incurred on or prior to the date of such determination, as defined inG.S. 58‑3‑81(a), and including, both as to reported and unreportedclaims, an amount estimated as necessary to provide for the expense ofadjusting such claims, and there shall be deducted, in determining suchliability for loss reserves, the amount of reinsurance recoverable by suchcompany, in respect to such claims, from assuming insurers in accordance withG.S. 58‑7‑21. Such loss and loss expense reserves shall becalculated in accordance with any method adopted or approved by the NAIC,unless the Commissioner determines that another more conservative method isappropriate. (1945, c. 377; 1993, c. 452, s. 2; 1993 (Reg. Sess.,1994), c. 678, s. 4.)