COMPILED CODE - Iowa Legislature - State of Iowa

Tit. XVni, Ch. 7.
373
INSURANCE OTHER THAN LIFE. § 5625-al.
SEC. 5625-al. Unearned premium reserve—computation.
1 The policy liability of any company or association, transacting
2 business under the provisions of this chapter, and the amount such
3 company or association shall hold as a reserve for unearned premiums,
4 shall be computed in the following manner :
5 1. On all policies written or renewed prior to January first, nine-
6 teen hundred twenty-two, there shall be held as such unearned pre-
7 mium reserve an amount equal to forty per cent of the aggregate
8 gross premiums written in all policies in force, less deductions for
9 reinsurance in authorized companies or associations.
10 2. On all policies written or renewed on and after January first,
11 nineteen hundred twenty-two, and running one year or less from date
12 of policy or last renewal thereof, shall be held as such unearned pre-
13 mium reserve an amount equal to fifty per cent of the aggregate gross
14 premiums written in all policies in force, less deductions for reinsur-
15 anee in authorized companies or associations.
16 3. On all policies written or renewed on and after January first,
17 nineteen hundred twenty-two, and running for more than one year,
18 and not exceeding five years, from date of policy or last renewal
19 thereof there shall be held as such unearned premium reserve an
20 amount of the aggregate gross premiums written in all policies in
21 force, less deductions for reinsurance in authorized companies or as-
22 sociations, computed in accordance with the following table :
Term for which
Policy was written.
Reserve for
Unearned Premium.
Two years 1st year 3-4
2nd year 1-4
Three years 1st year 5-6
2nd year 1-2
3rd year 1-6
Four years 1st year 7-8
2nd year 5-8
3rd year 3-8
4th year 1-8
Five years 1st year 9-10
2nd year 7-10
3rd year 1-2
4th year 3-10
5th year 1-10
23 4. On all policies written or renewed on and after January first,
24 nineteen hundred twenty-two, and running for more than five years
25 from date of policy or last renewal thereof, there shall be held as such
26 unearned premium reserve an amount of the aggregate gross pre-
27 miums, less deductions for reinsurance in authorized companies or
28 associations equal to the pro rata unearned premium on all policies
29 in force. The term pro rata used herein shall be such proportion
30 of the gross premiums on policies in force as the number of months