Kentucky Statutes 304.6-050 – Unearned premium reserve
Current as of: 2024 | Check for updates
|
Other versions
(1) As to property, casualty, surety and mortgage guaranty insurance the insurer shall maintain an unearned premium reserve on all policies in force.
(2) Except as provided in KRS § 304.6-060 as to marine and transportation risks and in subsection (3) of this section the unearned premium reserve shall be computed, after deduction of applicable reinsurance in solvent insurers, at the insurer’s election either:
(a) On a daily pro rata method basis on each item of premium; or
(b) On a monthly pro rata basis as to all such reserves.
(3) As to mortgage guaranty insurers, premiums on risks written for one (1) year or less must be reserved on a monthly pro rata basis.
(4) After adopting a method for computing such reserve, an insurer shall not change methods without the approval of the insurance supervisory official of the insurer’s domicile.
Effective: July 13, 2004
History: Amended 2004 Ky. Acts ch. 24, sec. 14, effective July 13, 2004. — Created
1970 Ky. Acts ch. 301, subtit. 6, sec. 5, effective June 18, 1970.
(2) Except as provided in KRS § 304.6-060 as to marine and transportation risks and in subsection (3) of this section the unearned premium reserve shall be computed, after deduction of applicable reinsurance in solvent insurers, at the insurer’s election either:
Terms Used In Kentucky Statutes 304.6-050
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Year: means calendar year. See Kentucky Statutes 446.010
(a) On a daily pro rata method basis on each item of premium; or
(b) On a monthly pro rata basis as to all such reserves.
(3) As to mortgage guaranty insurers, premiums on risks written for one (1) year or less must be reserved on a monthly pro rata basis.
(4) After adopting a method for computing such reserve, an insurer shall not change methods without the approval of the insurance supervisory official of the insurer’s domicile.
Effective: July 13, 2004
History: Amended 2004 Ky. Acts ch. 24, sec. 14, effective July 13, 2004. — Created
1970 Ky. Acts ch. 301, subtit. 6, sec. 5, effective June 18, 1970.