Section 11554 Of Article 1. Reserves Of Insurers From California Insurance Code >> Division 2. >> Part 3. >> Chapter 1. >> Article 1.

. In estimating the condition of any insurer admitted to transact such liability or compensation insurance, the commissioner shall charge as liabilities, among any other items, the following:
  (a) All outstanding indebtedness of such insurer.
  (b) A premium reserve on policies in force, equal to the unearned portions of the gross premiums charged for covering the risks and computed on each respective risk from the date of the issuance of the policy.
  (c) Proper reserves for outstanding losses, computed as set forth in this article.