2006 New York Code - Unearned Premium Reserves.

 
    § 1305. Unearned premium reserves. (a) Every authorized insurer shall,
  except  as to reserves required under section one thousand three hundred
  four of this article and subject to paragraph fourteen of subsection (a)
  of section one thousand three hundred one  of  this  article  and  other
  specific  provisions  of  this  chapter,  maintain reserves equal to the
  unearned  portions  of  the  gross  premiums  charged  on  unexpired  or
  unterminated risks and policies.
    (b)  (1)  No  deductions  may be made from the gross premiums in force
  except for original premiums cancelled on risks  terminated  or  reduced
  before  expiration,  or  except  for premiums paid or credited for risks
  reinsured with other solvent assuming insurers  authorized  to  transact
  such business in this state.
    (2)  Premiums  charged for bulk or portfolio reinsurances assumed from
  other insurers shall be included as premiums in force on  the  basis  of
  the  original  premiums  and  the  original terms of the policies of the
  ceding insurer.
    (3) Reinsurance ceded to such an authorized assuming  insurer  may  be
  deducted  on the basis of original premiums and original terms except in
  the case of excess loss or catastrophe reinsurance which may be deducted
  only on the basis of actual reinsurance premiums and actual  reinsurance
  terms.
    (c)  (1)  The  liability  for unearned premiums may be computed on the
  annual pro rata fraction basis applicable to the date  of  statement  as
  prescribed by the superintendent.
    (2)  If  the  annual  pro  rata  fractions  do not produce an adequate
  reserve, the superintendent may, in his discretion, require  an  insurer
  to  calculate  its  unearned  premium  reserve upon the monthly pro rata
  fractional basis or, if necessary, on each respective risk from the date
  of the issuance of the policy, and as to  premiums  covering  indefinite
  terms he may prescribe special regulations.
    (3)  As  to  marine  insurance,  premiums on trip risks not terminated
  shall be deemed unearned and the superintendent may require a reserve to
  be carried thereon equal to one hundred percent of the premiums on  trip
  risks written during the month ended as of the date of statement.
    (4) At least ninety percent of the gross amount of premium deposits on
  perpetual fire insurance risks shall be charged as a liability.
    (5) As to title insurance, unearned premium reserves shall be computed
  and  maintained  only  as  required  by  subsection  (a)  of section six
  thousand four hundred five of this chapter.