New York Laws
Article 13 - Assets and Deposits
1305 - Unearned Premium Reserves.

(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.