§ 6405. Reserves. (a) Every title insurance corporation organized and\ndoing an insurance business under this article shall establish,\nsegregate and maintain a reinsurance reserve during the period and for\nthe uses and purposes hereinafter provided which shall at all times and\nfor all purposes be deemed and shall constitute unearned portions of the\noriginal premiums and shall be charged as a reserve liability of such\ncorporation in determining its financial condition.\n (1) Beginning June first, nineteen hundred forty-five, the amount of\nsuch reserve shall be cumulative and shall consist of (i) one dollar\nfifty cents for each risk assumed under a binder or policy of insurance\nor any certificate or agreement issued under either of them, plus\none-eightieth of one percent of the face amount of insurance effected\nthereby; and (ii) three percent of the gross fees and premiums received\nby it for guaranteed certificates of title, guaranteed searches and\nguaranteed abstracts of title not included in item (i) of this\nparagraph. That portion of the reinsurance reserve established as\nrequired by this paragraph more than one hundred eighty months prior\nshall be released and shall no longer constitute part of the reinsurance\nreserve and may be used for any corporation purpose.\n (2) Beginning January first, nineteen hundred eighty-six, the amount\nof such reserve provided shall consist of (i) one dollar fifty cents for\neach risk assumed under a binder or policy of insurance or any\ncertificate or agreement issued under either of them, plus one-eightieth\nof one percent of the face amount of insurance effected thereby; and\n(ii) three percent of the gross fees and premiums received by it for\nguaranteed certificates of title, guaranteed searches and guaranteed\nabstracts of title not included in item (i) of this paragraph. "Risk\nassumed" and "insurance effected", as used in this paragraph, shall not\ninclude the face amount of a policy insuring a lender to the extent of\nthe face amount of a policy insuring the owner of an interest in the\nsame land under an owner's policy which provides that any amount paid\nunder the lender's policy shall reduce the amount of, and be deemed a\npayment under, the owner's policy. A title insurer shall release from\nthe reinsurance reserve established as required by this paragraph a sum\nequal to five percent of the amount added to the reserve during each\nyear following the year in which the sum was added, until the entire\namount added has been released.\n (b) Every title insurance corporation organized or authorized to do\nbusiness in this state shall on or before March first each year, file a\nreport in such form as may be prescribed by the superintendent of all\nunpaid losses and claims upon title insurance policies, guaranteed\ncertificates of title, guaranteed searches and guaranteed abstracts of\ntitle (such policies, certificates, searches and abstracts being\nhereafter in this section called "guarantees") of which the corporation\nhas received due notice in writing from or on behalf of the insured or\nthe guaranteed and keep such records thereof as may be prescribed by the\nsuperintendent. Every title insurance corporation doing business under\nthis article shall set up and maintain a loss reserve at least equal to\nthe aggregate estimated amounts due or to become due on account of all\nsuch unpaid losses and claims.\n (c) The reinsurance reserve required by subsection (a) of this section\nshall be maintained as follows:\n Admitted assets of a value at least equal to the amount required for\nsuch reserve shall be continuously held by the corporation as a\nsegregated reserve fund at all times distinct and separate from all its\nother assets. Cash paid into such fund shall, unless invested, be kept\nin legal tender or deposited in a separate account. Securities which are\na part of such fund shall be kept separate from all other securities and\nshall be clearly identified as se
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