Section 1305. Unearned premium reserves

(a) Every authorized insurer shall,
  except  as to reserves required under section one thousand three hundred
  four of this article and subject to paragraph nine of subsection (a)  of
  section  one  thousand  three  hundred  one  of  this  article and other
  specific provisions of this chapter,  maintain  reserves  equal  to  the
  unearned  portions  of  the  gross  premiums  charged  on  unexpired  or
  unterminated risks and policies.
    (b) (1) No deductions may be made from the  gross  premiums  in  force
  except  for  original  premiums cancelled on risks terminated or reduced
  before expiration, or except for premiums paid  or  credited  for  risks
  reinsured  with  other  solvent assuming insurers authorized to transact
  such business in this state.
    (2) Premiums charged for bulk or portfolio reinsurances  assumed  from
  other  insurers  shall  be included as premiums in force on the basis of
  the original premiums and the original terms  of  the  policies  of  the
  ceding insurer.
    (3)  Reinsurance  ceded  to such an authorized assuming insurer may be
  deducted on the basis of original premiums and original terms except  in
  the case of excess loss or catastrophe reinsurance which may be deducted
  only  on the basis of actual reinsurance premiums and actual reinsurance
  terms.
    (c) (1) The liability for unearned premiums may  be  computed  on  the
  annual  pro  rata  fraction basis applicable to the date of statement as
  prescribed by the superintendent.
    (2) If the annual pro  rata  fractions  do  not  produce  an  adequate
  reserve,  the  superintendent may, in his discretion, require an insurer
  to calculate its unearned premium reserve  upon  the  monthly  pro  rata
  fractional basis or, if necessary, on each respective risk from the date
  of  the  issuance  of the policy, and as to premiums covering indefinite
  terms he may prescribe special regulations.
    (3) As to marine insurance, premiums  on  trip  risks  not  terminated
  shall be deemed unearned and the superintendent may require a reserve to
  be  carried thereon equal to one hundred percent of the premiums on trip
  risks written during the month ended as of the date of statement.
    (4) At least ninety percent of the gross amount of premium deposits on
  perpetual fire insurance risks shall be charged as a liability.
    (5) As to title insurance, unearned premium reserves shall be computed
  and maintained only  as  required  by  subsection  (a)  of  section  six
  thousand four hundred five of this chapter.