376.1017. Plan to establish loss reserves--plan to establish surplus account, amount.
Plan to establish loss reserves--plan to establish surplus account,amount.
376.1017. 1. A plan shall establish loss reserves for allincurred losses, both reported and unreported, and for unearnedpremiums.
2. A plan also shall establish a surplus account equal tothe greater of the following:
(1) Three times the average paid monthly premium during theplan's most recent fund year;
(2) For plans which do not yet have one fund year'sexperience, three times estimated monthly premium; or
(3) Six hundred thousand dollars.
(L. 1993 H.B. 709 § 29)