TITLE 50: INSURANCE
CHAPTER I: DEPARTMENT OF INSURANCE
SUBCHAPTER l: PROVISIONS APPLICABLE TO ALL COMPANIES
PART 912 COMMISSION ACCOUNTING FOR DIRECT PREMIUM
SECTION 912.30 MANDATORY COMMISSION RESERVE


 

Section 912.30  Mandatory Commission Reserve

 

A reserve shall be established for unpaid commissions whenever  commissions are paid on an earned premium basis but are not dependent on loss experience under the insurance written.  This reserve shall be known as a Mandatory Commission Reserve and shall be based on the unearned premium reserve and shall be computed by use of the company's weighted average commission rate for a certain line times the unearned premium for the same line.