A. Advance assessments received by mutual assessment property and casualty insurers shall be considered premiums and, except as provided in subsection B of this section, shall be subject to the requirement of an unearned premium reserve computed in accordance with § 38.2-1312. The reserves may be reduced for applicable reinsurance in accordance with the provisions of Article 3.1 (§ 38.2-1316.1 et seq.) of Chapter 13 of this title.
B. The amount each insurer shall maintain in reserves for unearned premium reserves shall be as follows:
1. For calendar year 1987, at least ten percent of the unearned premium reserve as calculated in subsection A of this section; and
2. For each subsequent year, at least an additional ten percent as calculated in subsection A for that subsequent year in order that the full amount of unearned premium reserves shall be established by December 31, 1996.
History
1986, c. 562; 1994, c. 316.
