Section 376.1017

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 376

Effective - 28 Aug 1993   

  376.1017.  Plan to establish loss reserves — plan to establish surplus account, amount. — 1.  A plan shall establish loss reserves for all incurred losses, both reported and unreported, and for unearned premiums.

  2.  A plan also shall establish a surplus account equal to the greater of the following:

  (1)  Three times the average paid monthly premium during the plan's most recent fund year;

  (2)  For plans which do not yet have one fund year's experience, three times estimated monthly premium; or

  (3)  Six hundred thousand dollars.

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(L. 1993 H.B. 709 § 29)