226 CORPORATIONS. [ART. 23

edness for that year, provided, however, that if the remainder in the
case of any year of the first three years of the five years immediately
preceding the date as of which the statement is made shall be less than
the sum of the three following items for that year at. that date (a) the
number of suits, except suits in which liability is not dependent upon
negligence of the insured, being defended under policies written in
that year and a charge of seven hundred and fifty dollars for each suit,
(b) the amount necessary to pay for all deaths for which the insured
are liable without proof of negligence, covered by policies written
in that year, and (c) the present value of estimated unpaid claims on
account of non-fatal injuries for which the insured are liable without
proof of negligence, covered by policies written in that year, then the
sum of said items (a), (b) and (c) shall be in the indebtedness for
that year. A corporation which has been issuing such policies for a
period of less than ten years shall nevertheless include in its annual
statement, a schedule as hereinbefore required for the years in which
it shall have issued such policies, and shall be charged with an indebted-
ness determined in the same manner, but in determining the indebted-
ness for policies written in the five years immediately preceding the
date as of which the statement is made, the minimum ratio hereinbefore
prescribed shall be used subject to the same deductions and provisions
as in the case of corporations that have been issuing such policies for
ten years or more.

Thirteenth. The reserve for all other outstanding losses under any
and all other classes of casualty insurance policies and under every
character of bond and writing obligatory, executed by such casualty or
bonding insurance company, shall be determined by a consideration of
the facts and circumstances of each particular claim, the amount so set
aside as a reserve to be reasonably sufficient to cover the probable
expenses and payments in each case. The reserves for claims of the
classes mentioned in this sub-section (Thirteenth) shall be first esti-
mated and set aside by each such corporation, and may be inquired into
and verified by the Insurance Commissioner, or any deputy, examiner,
or assistant from his office, during any regular examination of said cor-
poration, and, if found to be inadequate, the said corporation may be
required to set aside such reserves on claims mentioned in this section
as may in the aggregate be deemed reasonably and fairly sufficient by
the Insurance Commissioner.

Fourteenth. On all policies of casualty insurance and bonds in force
and written for one year or less there shall be maintained a premium
reserve of fifty per centum of the current year's premium. On all such
policies and bonds in force and written for more than one year there
shall be maintained a premium reserve of fifty per centum of the cur-
rent year's premium, plus the whole of the premium for subsequent
years. If the premium for the entire term is paid in one installment
the premium for the current year shall be calculated on a pro rata basis.