HRS §431:5-301
Keeping reserve funds for insurance policies
Insurance companies must set aside money for policies that are still active, covering property, casualty, health, and surety insurance. This money is the part of premiums not yet earned, minus reinsurance. Companies can calculate it monthly or more often, but need approval to change methods.
The statute, as written — Unearned premium reserve
(a) Every insurer shall maintain an unearned premium reserve on all policies in force for: (1) Insurance against loss or damage to property, except as provided in section 431:5-302; (2) General casualty insurance; (3) Accident and health or sickness insurance, except as provided in section 431:5-303 and section 431:5-307; and (4) Surety insurance. (b) For purposes of this article, "unearned premium reserve" means the portions of the gross premiums in force, less authorized reinsurance. (c) All reserves may be computed, at the insurer's option, on a monthly or more frequent, pro rata basis. (d) After adopting any one of the methods for computing such reserve, an insurer shall not change methods without the commissioner's approval.
Sections this one refers to
§431:5-302 Reserve rules for marine and transportation trip insurance
§431:5-303 Rules for insurance reserves on noncancellable disability policies
§431:5-307 Standard valuation law for life insurance
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