38.2-2529 - Unearned premium reserves required. - Virginia Statutes

§ 38.2-2529. Unearned premium reserves required.

A. Advance assessments received by mutual assessment property and casualtyinsurers shall be considered premiums and, except as provided in subsection Bof this section, shall be subject to the requirement of an unearned premiumreserve computed in accordance with § 38.2-1312. The reserves may be reducedfor applicable reinsurance in accordance with the provisions of Article 3.1(§ 38.2-1316.1 et seq.) of Chapter 13 of this title.

B. The amount each insurer shall maintain in reserves for unearned premiumreserves shall be as follows:

1. For calendar year 1987, at least ten percent of the unearned premiumreserve as calculated in subsection A of this section; and

2. For each subsequent year, at least an additional ten percent as calculatedin subsection A for that subsequent year in order that the full amount ofunearned premium reserves shall be established by December 31, 1996.

(1986, c. 562; 1994, c. 316.)