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Section 12382.5 Of Article 3.5. Unearned Premium Reserve And Reserve For Unpaid Losses And Loss Expense From California Insurance Code >> Division 2. >> Part 6. >> Chapter 1. >> Article 3.5.
12382.5
. (a) The aggregate of the amounts set aside in unearned
premium reserve in any calendar year pursuant to subdivision (a) of
Section 12382.2 shall be released from that reserve and restored to
net profits pursuant to the following formula: one-tenth of that
aggregate sum on July 1 of each of the five years next succeeding the
year of addition to the reserve and one-thirtieth of that aggregate
sum on July 1 of each succeeding year thereafter until the entire sum
shall have been so released and restored to net profits. The
aggregate of the amounts set aside in unearned premium reserve
pursuant to subdivision (a) of Section 12382 shall be released from
the reserve and restored to net profits and surplus pursuant to the
foregoing formula, provided that the amounts so set aside shall be
treated as if subdivision (a) of Section 12382 and this section had
been effective during the calendar years 1962, 1963, and 1964.
(b) The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to subdivision (b) of Section 12382.2 shall be released from the reserve and restored to net profits pursuant to the following formula: one-tenth of the aggregate sum on July 1 of each of the 10 years next succeeding the year of addition to the reserve until the entire sum shall have been so released and restored to net profits.
(c) The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to subdivision (c) of Section 12382.2 shall be released from the reserve and restored to net profits over a period of 20 years pursuant to the following formula: 10 percent of the aggregate sum on July 1 of each of the five years next succeeding the year of addition; 9 percent of the aggregate sum on July 1 of each of the next succeeding five years; and one-half of 1 percent of the aggregate sum on July 1 of each of the last 10 years.
(d) The aggregate of the amounts set aside in unearned premium reserve in any calendar year as adjustments to the insurer's unearned premium reserve pursuant to subdivision (d) of Section 12382.2 shall be released from the reserve and restored to net profits, or equity if the additions required by subdivision (d) of Section 12382.2 reduced equity directly, over a period not exceeding 10 years pursuant to the following table:
(b) The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to subdivision (b) of Section 12382.2 shall be released from the reserve and restored to net profits pursuant to the following formula: one-tenth of the aggregate sum on July 1 of each of the 10 years next succeeding the year of addition to the reserve until the entire sum shall have been so released and restored to net profits.
(c) The aggregate of the amounts set aside in unearned premium reserve in any calendar year pursuant to subdivision (c) of Section 12382.2 shall be released from the reserve and restored to net profits over a period of 20 years pursuant to the following formula: 10 percent of the aggregate sum on July 1 of each of the five years next succeeding the year of addition; 9 percent of the aggregate sum on July 1 of each of the next succeeding five years; and one-half of 1 percent of the aggregate sum on July 1 of each of the last 10 years.
(d) The aggregate of the amounts set aside in unearned premium reserve in any calendar year as adjustments to the insurer's unearned premium reserve pursuant to subdivision (d) of Section 12382.2 shall be released from the reserve and restored to net profits, or equity if the additions required by subdivision (d) of Section 12382.2 reduced equity directly, over a period not exceeding 10 years pursuant to the following table:
