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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. |