515C.4 Contingency reserve. For the protection of the people of this state and for the purpose of protecting against the effect of adverse economic cycles, the company shall establish a contingency reserve. Thecompany shall annually contribute fifty percent of the earned premiums to this reserve. Theearned premiums so reserved may be released annually after the period of time required bythe commissioner, provided that said time shall not be less than one hundred twenty months.However, subject to the approval of the commissioner, this reserve may be available onlyfor loss payments, when the loss ratio (incurred losses to premiums earned) exceeds twentypercent. This amount so used shall reduce the next subsequent annual release to surplusfrom the established contingency reserve. [C66, 71, 73, 75, 77, 79, 81, §515C.4] Sat Dec 23 00:48:25 2023 Iowa Code 2024, Section 515C.4 (15, 0)
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