Arizona Laws 20-1569. Amount of unearned premium reserve; release
A. The unearned premium reserve of every title insurer shall consist of:
Terms Used In Arizona Laws 20-1569
- Net retained liability: means the total liability retained by a title insurer under any policy or contract of insurance, or under a single insurance risk as defined in or computed in accordance with paragraph 7, after the purchase of reinsurance. See Arizona Laws 20-1562
- Title insurance: means insuring, guaranteeing or indemnifying owners of real property or others interested therein against loss or damage suffered by reason of liens, encumbrances upon, defects in or the unmarketability of the title to such property, guaranteeing, warranting or otherwise insuring the correctness of searches relating to the title to real property, or doing any business in substance equivalent to any of the foregoing. See Arizona Laws 20-1562
- Title insurer: means any domestic company organized under the provisions of this title for the purpose of insuring titles to real property, any title insurance company organized under the laws of another state and licensed to insure titles to real estate within this state pursuant to the provisions of this article, and any domestic or foreign company having the power and authorized to insure titles to real estate within this state as of January 1, 1968 which meet the requirements of this article. See Arizona Laws 20-1562
1. The amount of the unearned premium reserve held as of January 1, 1968.
2. The amount of all additions required to be made to the reserve by this section, less withdrawals permitted by this section.
B. Every title insurer shall add to its unearned premium reserve in respect to each title insurance policy, whether primary insurance, reinsurance or coinsurance, issued by it on real estate a sum of money out of the fees due or received for the title insurance and deemed to be unearned portions of fees and a sum equal to ten cents for each one thousand dollars of the face amount of net retained liability, as defined in section 20-1562, and shall separately record the aggregate amounts set aside and reserved with respect to policies, contracts or agreements written in each calendar year.
C. The amounts set aside as additions to the unearned premium reserve shall be deducted in determining net profits of any title insurer.
D. For the purpose of determining the amounts of the unearned premium reserve that may be withdrawn pursuant to subsection E of this section, and the interest of the policyholders under section 20-1571, all policies of title insurance shall be considered as dated on July 1 in the year of issue.
E. The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to subsection B of this section shall be released from the reserve and restored to income in the year of release pursuant to the formula prescribed in the accounting practices and procedures manual adopted by the national association of insurance commissioners.