{"data":{"id":"us-wa/rcw-48.12.040","jurisdiction":"us-wa","citation":"RCW 48.12.040","heading":"Unearned premium reserve, property, casualty, and surety insurance.","body":"(1) With reference to insurances against loss or damage to property, except as provided in RCW 48.12.050, and with reference to all general casualty insurances, and surety insurances, every insurer shall maintain an unearned premium reserve on all policies in force.\n(2) The commissioner may require that such reserve shall be equal to the unearned portions of the gross premiums in force after deducting authorized reinsurance, as computed on each respective risk from the policy's date of issue. If the commissioner does not so require, the portions of the gross premiums in force, less authorized reinsurance, to be held as a premium reserve, shall be computed according to the following table:\nTerm for which policy\nwas written\nReserve for\nunearned premium\nOne year, or less. . . .\n1/2\nTwo years. . . .\nFirst year\n3/4\nSecond year\n1/4\nThree years. . . .\nFirst year\n5/6\nSecond year\n1/2\nThird year\n1/6\nFour years. . . .\nFirst year\n7/8\nSecond year\n5/8\nThird year\n3/8\nFourth year\n1/8\nFive years. . . .\nFirst year\n9/10\nSecond year\n7/10\nThird year\n1/2\nFourth year\n3/10\nFifth year\n1/10\nOver five years. . . .\nPro rata\n(3) In lieu of computation according to such table, all of such reserves may be computed, at the insurer's option, on a monthly pro rata basis.\n(4) After adopting any one of the methods for computing such reserve an insurer shall not change methods without the commissioner's approval.\n(5) If, for certain policies, the insurer's exposure to loss is uneven over the policy term, the commissioner may grant permission to the insurer to use a different method of calculating the unearned premium reserve on those certain policies.","path":["Title 48","Chapter 48.12"],"source_url":"https://app.leg.wa.gov/rcw/default.aspx?cite=48.12.040","current_through":"July 15, 2026","vintage":"","retrieved_at":"2026-09-06T03:12:04Z","sha256":"a8bf49f409a4a93c5ef3d203a3e911a168b84b11ee29cc0c899e7432bc36d4db","source_id":"us-wa","stale":false,"prev":"us-wa/rcw-48.12.030","next":"us-wa/rcw-48.12.050"},"notice":"GroundRules: Original legal text. Not legal advice."}