38.2-1312 - Unearned premium reserves. - Virginia Statutes

§ 38.2-1312. Unearned premium reserves.

A. Except for risks or policies for which reserves are required under §§38.2-1311 and 38.2-4610.1, each insurer licensed to transact business in thisCommonwealth, subject to the applicable provisions of this title, shallmaintain reserves not less than the unearned portions of the gross premiumscharged on unexpired or unterminated risks and policies.

B. Premiums charged for bulk assumption reinsurance assumed from otherinsurers shall be included in gross premiums charged on the basis of theoriginal premiums and the original terms of the policies of the cedinginsurer.

C. No deduction shall be made from the gross unearned premiums except forpremiums paid or credited for risks reinsured as provided in Article 3.1 (§38.2-1316.1 et seq.) of this chapter.

D. Reserves required by this section shall be computed, valued, and reportedin conformity with guidance set forth in the National Association ofInsurance Commissioners accounting practices and procedures manuals.

(Code 1950, § 38-228; 1952, c. 317, § 38.1-171; 1982, c. 430; 1986, c. 562;2000, c. 46.)