{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-5007","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-5007","heading":"Statutory premium reserve","body":"A. Statutory Premium Reserve Required.\n\n1. Each domestic title insurer doing title insurance business\n\nunder this chapter shall establish and maintain a statutory premium\n\nreserve during the period and for the uses and purposes provided by\n\nthis article, which shall at all times and for all purposes be\n\ndeemed and shall constitute unearned portions of the original\n\npremium, and shall be charged as a reserve liability of that insurer\n\nin determining its financial condition.\n\n2. The reserve required under this section shall be cumulative.\n\nThe reserve shall be established and shall consist of the amounts\n\nrequired under this article.\n\nB. Annual Additions to Reserves for Calendar Year 2014 and\n\nThereafter.\n\n1. For companies with annual gross premiums of Twenty Million\n\nDollars ($20,000,000.00) or more, beginning with premiums received\n\non January 1, 2015, the statutory premium reserve shall consist of\n\nan amount not less than five percent (5%) of the sum of the\n\nfollowing, as set forth in the title insurer's annual statement:\n\na. the direct premium written by the title insurer, and\n\nb. premium for reinsurance assumed less premium for\n\nreinsurance ceded during the year.\n\n2. Companies with annual gross premiums of less than Twenty\n\nMillion Dollars ($20,000,000.00) may, at their election, establish\n\npremium reserves as set forth in paragraph 1 of subsection B of this\n\nsection, or alternatively, in an amount not less than the title\n\ninsurer's reserve for incurred but not reported claims (IBNR) plus\n\nthe reserve for unallocated loss adjustment expense (ULAE). For\n\ncompanies electing the latter option, the remainder of subsections B\n\nand C of this section do not apply.\n\n3. The statutory premium reserve calculations in subsection B\n\nof this section are minimum amounts. A title insurance underwriter\n\nmay set aside amounts in excess of the minimum reserve requirement.\n\n4. Additions to the statutory premium reserve set aside for\n\ntitle insurance policies written or assumed under paragraph 1 of\n\nsubsection B of this section shall be reduced over a 20-year period\n\nbeginning in the year after the year in which the policies are\n\nwritten or assumed, as provided by paragraph 5 of this subsection,\n\nno faster than:\n\na. thirty-five percent (35%) of the additions in the\n\nfirst year succeeding the year of addition,\n\nb. fifteen percent (15%) of the additions in each of the\n\nsucceeding two years,\n\nc. ten percent (10%) of the additions in the next\n\nsucceeding year,\n\nd. three percent (3%) of the additions in the next three\n\nsucceeding years,\n\ne. two percent (2%) of the additions in the next three\n\nsucceeding years, and\n\nf. one percent (1%) of the additions in the next ten\n\nsucceeding years.\n\n5. The annual reductions under paragraph 4 of subsection B of\n\nthis section shall be made in increments of one-fourth (1/4) of the\n\nappropriate percentage of the additions on March 31, June 30,\n\nSeptember 30, and December 31 of each year.\n\nC. Establishment of Reserves for the Periods After 2014.\n\n1. In addition to the requirements imposed under this section,\n\neach domestic title insurer shall compute a total statutory premium\n\nreserve balance for all policy years combined as of December 31,\n\n2013.\n\n2. The balance shall be computed as if this section were in\n\neffect during the twenty-year period ending December 31, 2013. For\n\npurposes of this calculation, the balance of the reserve as of\n\nDecember 31, 1993, is considered to be zero.\n\na. If the total minimum statutory premium reserve so\n\ncalculated exceeds the aggregate amount set aside for\n\nstatutory premiums in the insurer's most recent annual\n\nstatement filed with the Insurance Commissioner, the\n\ninsurer shall, out of total charges for policies of\n\ntitle insurance, increase its statutory premium\n\nreserve by an amount equal to one-sixth (1/6) of that\n\ndeficit in each of the succeeding six (6) years,\ne aggregate amount set aside for\n\nstatutory premiums in the insurer's most recent annual\n\nstatement filed with the Insurance Commissioner, the\n\ninsurer shall, out of total charges for policies of\n\ntitle insurance, increase its statutory premium\n\nreserve by an amount equal to one-sixth (1/6) of that\n\ndeficit in each of the succeeding six (6) years,\n\nbeginning with calendar year 2014, until the entire\n\ndeficit has been added. These added amounts (the\n\nexcess reserve) shall be released in accordance with\n\nparagraph 3 of this subsection.\n\nb. If the total minimum statutory premium reserve so\n\ncalculated is less than the aggregate amount set aside\n\nfor statutory premiums in the insurer's most recent\n\nannual statement filed with the commissioner, the\n\ninsurer shall release the excess amount previously set\n\naside by an amount equal to one-sixth (1/6) of that\n\nexcess in each of the succeeding six (6) years,\n\nbeginning with calendar year 2014, until the entire\n\nexcess has been released. The balance of the reserve\n\n(equal to the calculated minimum statutory premium\n\nreserve) shall be released in accordance with each\n\ntitle insurer's previous method of amortizing its\n\nstatutory premium reserve.\n\n3. The aggregate of the amounts set aside, if any, in excess of\n\nthe statutory premium reserve pursuant to subparagraph a of\n\nparagraph 2 of this subsection in any calendar year as adjustments\n\nto the insurer's statutory premium reserve shall be released from\n\nthe reserve and restored to net profits, or equity directly, over a\n\nperiod not exceeding ten (10) years pursuant to the following table:\n\nYear of addition Release\n\nYear 1 Equally over ten (10) years\n\nYear 2 Equally over nine (9) years\n\nYear 3 Equally over eight (8) years\n\nYear 4 Equally over seven (7) years\n\nYear 5 Equally over six (6) years\n\nYear 6 Equally over five (5) years\n\nD. Companies Transitioning to five percent (5%) Statutory\n\nPremium Reserve After Calendar Year 2015.\n\n1. Companies with annual gross premiums of less than Twenty\n\nMillion Dollars ($20,000,000.00) as of January 1, 2014, which elect\n\nto set aside reserves in an amount not less than the title insurer's\n\nIBNR reserve plus the ULAE reserve as set forth in paragraph 2 of\n\nsubsection B of this section, may voluntarily transition to the five\n\npercent (5%) statutory premium reserve described elsewhere in\n\nsubsection B of this section beginning in any calendar year\n\nsubsequent to 2014.\n\n2. Companies with annual gross premiums of less than Twenty\n\nMillion Dollars ($20,000,000.00) as of January 1, 2015, which have\n\nnot voluntarily transitioned as set forth in subsection C of this\n\nsection, but which later earn annual gross premiums of Twenty\n\nMillion Dollars ($20,000,000.00) or more, shall transition to the\n\nfive percent (5%) statutory premium reserve standard beginning\n\nJanuary 1 of the year after they earn annual gross premiums of\n\nTwenty Million Dollars ($20,000,000.00) or more.\n\n3. Companies transitioning to the five percent (5%) statutory\n\npremium reserve, as set forth in subsections B and C of this\n\nsection, may, but need not, establish reserves for years prior to\n\nthe transitional year in accordance with subsection C of this\n\nsection. Alternatively, such companies may continue to use the\n\npreviously established reserves for prior years until such reserves\n\nare fully amortized. Reserves established on a go-forward basis\n\nbeginning with the year of transition, shall be amortized in\n\naccordance with paragraphs 4 and 5 of subsection B of this section.\n\nE. Maintenance of Fund.\n\nThe statutory premium reserve and supplemental reserve fund\n\nshall be held in cash or invested in first mortgage notes or other\n\nsecurities admissible for investment by Section 5002 this title.\n\nF. Effect of Insolvency or Dissolution.\n\nIn the event of the insolvency or dissolution of a title\namortized in\n\naccordance with paragraphs 4 and 5 of subsection B of this section.\n\nE. Maintenance of Fund.\n\nThe statutory premium reserve and supplemental reserve fund\n\nshall be held in cash or invested in first mortgage notes or other\n\nsecurities admissible for investment by Section 5002 this title.\n\nF. Effect of Insolvency or Dissolution.\n\nIn the event of the insolvency or dissolution of a title\n\ninsurer, the statutory premium reserve and supplemental reserve fund\n\nshall be used to protect title insurance contract holders, even if\n\nthere are no accrued title insurance claims and even if there are\n\nunpaid obligations of other types.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"4f175bcc75cebe92acbd4bcda6cf9d3842ae8bb961a169176d98daec1113dc46","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-5006","next":"us-ok/okla.-stat.-tit.-36-36-5008"},"notice":"GroundRules: Original legal text. Not legal advice."}