New Hampshire Revised Statutes 416-A:10 – Amount of Unearned Premium Reserve, Release
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I. The unearned premium reserve of every title insurance company required to maintain such reserves in this state shall consist of:
(a) The amount of the unearned premium reserve held as of September 10, 1971, pursuant to law; and
(b) The amount of all additions required to be made to such reserve by this section, less the withdrawals therefrom as permitted by this section.
II. Every title insurance company shall add to its unearned premium reserve in respect to each title insurance policy, leasehold policy, contract, or reinsurance agreement issued by it, a sum equal to $1 for each such policy, contract, or agreement, plus $.15 for each $1,000 face amount of net retained liability on each such policy, contract, or reinsurance agreement, as defined in N.H. Rev. Stat. § 416-A:2, X, or the amount reinsured by it, and shall separately record the aggregate amounts so set aside and reserved in respect to such policies, contracts, or agreements written in each calendar year.
III. The amounts set aside as additions to the unearned premium reserve shall be deducted from income in determining net profits of any title insurance company.
IV. For the purposes of determining the amounts of the unearned premium reserve that may be withdrawn pursuant to paragraph V of this section, all policies, contracts of title insurance, or reinsurance agreements of title insurance shall be considered as dated July 1 in the year of issue.
V. The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to paragraph II of this section shall be released from said reserve and restored to income pursuant to the following formula:
1/10 of said aggregate sum on July 1 of each of the 5 years next succeeding the year of addition to the reserve and
1/30 of said aggregate sum on July 1 of each succeeding year thereafter until the entire sum shall have been so released and restored to income.
VI. The entire amount of the unearned premium reserve held as of September 10, 1971 pursuant to law shall be presumed to have been added to the reserve in the calendar year next preceding September 10, 1971 and shall be released from said reserve and restored to income under the formula set forth in paragraph V of this section.
VII. If substantially the entire outstanding liability under all policies, contracts of title insurance, and reinsurance agreements of any such title insurance company shall be reinsured, the value of the consideration received by a reinsuring title insurance company authorized to transact the business of title insurance in this state, shall constitute in its entirety, unearned portions of original premiums and shall be added to its unearned premium reserve, and shall be deemed, for recovery purposes, to have been provided for liabilities assumed during the year of such reinsurance. The amount of such addition to the unearned premium reserve of such assuming title insurance company shall be not less than
2/3 of the amount of the unearned premium reserve required to be maintained by the ceding title insurance company at the time of such reinsurance.
(a) The amount of the unearned premium reserve held as of September 10, 1971, pursuant to law; and
Terms Used In New Hampshire Revised Statutes 416-A:10
- business of title insurance: means the making or proposing to make, as insurer, guarantor, or surety, or any contract or policy of title insurance; or the transacting or proposing to transact, as insurer, guarantor, or surety, any phase of title insurance, including solicitation, negotiation preliminary to execution, execution of a contract of title insurance, and transacting matters subsequent to the execution of the contract and arising out of it, including reinsurance. See New Hampshire Revised Statutes 416-A:2
- Contract: A legal written agreement that becomes binding when signed.
- following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Net retained liability: means the total liability retained by a title insurance company under any policy or contract for insurance, or under a single insurance risk as defined in or computed in accordance with paragraph IX of this section, after the purchase of reinsurance. See New Hampshire Revised Statutes 416-A:2
- Premium: for title insurance is the amount charged by a title insurance company, agent for a title insurance company, or either of them, to an insured or an applicant for insurance for the assumption by the title insurance company of the risk created by the issuance of the title insurance policy. See New Hampshire Revised Statutes 416-A:2
- state: when applied to different parts of the United States, may extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall include said district and territories. See New Hampshire Revised Statutes 21:4
- 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 said property. See New Hampshire Revised Statutes 416-A:2
- Title insurance company: means any domestic company organized under the provisions of this chapter for the purpose of insuring titles to real property; any title insurance company organized under the laws of another state or foreign nation and licensed to insure titles to real estate within this state; and any domestic, foreign, or alien company having the power and authorized to insure titles to real estate within this state and which meets the requirements of this chapter. See New Hampshire Revised Statutes 416-A:2
(b) The amount of all additions required to be made to such reserve by this section, less the withdrawals therefrom as permitted by this section.
II. Every title insurance company shall add to its unearned premium reserve in respect to each title insurance policy, leasehold policy, contract, or reinsurance agreement issued by it, a sum equal to $1 for each such policy, contract, or agreement, plus $.15 for each $1,000 face amount of net retained liability on each such policy, contract, or reinsurance agreement, as defined in N.H. Rev. Stat. § 416-A:2, X, or the amount reinsured by it, and shall separately record the aggregate amounts so set aside and reserved in respect to such policies, contracts, or agreements written in each calendar year.
III. The amounts set aside as additions to the unearned premium reserve shall be deducted from income in determining net profits of any title insurance company.
IV. For the purposes of determining the amounts of the unearned premium reserve that may be withdrawn pursuant to paragraph V of this section, all policies, contracts of title insurance, or reinsurance agreements of title insurance shall be considered as dated July 1 in the year of issue.
V. The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to paragraph II of this section shall be released from said reserve and restored to income pursuant to the following formula:
1/10 of said aggregate sum on July 1 of each of the 5 years next succeeding the year of addition to the reserve and
1/30 of said aggregate sum on July 1 of each succeeding year thereafter until the entire sum shall have been so released and restored to income.
VI. The entire amount of the unearned premium reserve held as of September 10, 1971 pursuant to law shall be presumed to have been added to the reserve in the calendar year next preceding September 10, 1971 and shall be released from said reserve and restored to income under the formula set forth in paragraph V of this section.
VII. If substantially the entire outstanding liability under all policies, contracts of title insurance, and reinsurance agreements of any such title insurance company shall be reinsured, the value of the consideration received by a reinsuring title insurance company authorized to transact the business of title insurance in this state, shall constitute in its entirety, unearned portions of original premiums and shall be added to its unearned premium reserve, and shall be deemed, for recovery purposes, to have been provided for liabilities assumed during the year of such reinsurance. The amount of such addition to the unearned premium reserve of such assuming title insurance company shall be not less than
2/3 of the amount of the unearned premium reserve required to be maintained by the ceding title insurance company at the time of such reinsurance.