INSURANCE. 1845

The term " earned premiums " as used herein shall include gross pre-
miums charged on all policies written, including all determined excess
and additional premiums, less return premiums other than premiums
returned to policyholders as dividends, and less reinsurance premiums and
premiums on policies cancelled, and less unearned premiums on policies
in force. But any participating company which has charged in its pre-
miums a loading solely for dividends shall not be required to include such
loading in its earned premiums, provided a statement of the amount of
such loading had been filed with and approved by the insurance com-
missioner.

The term " compensation " as used in this act shall relate to all insur-
ances effected by virtue of statutes providing compensation to employees
for personal injuries irrespective of fault of the employer. The term
" liability " shall relate to all insurance, except compensation insurance,
against loss or damage from accident to or injuries suffered by an employee
or other person and for which the insured in 1 liable.

The term " loss payments " and " loss expense payments " as used herein
shall include all payments to claimants, including payments for medical
and surgical attendance, legal expenses, salaries and expenses of investi-
gators, adjusters and field men, rents, stationery, telegraph and telephone
charges, postage, salaries and expenses of office employees, home office
expenses, and all other payments made on account of claims whether such
payments shall be allocated to specific claims or unallocated.

All unallocated liability loss expense payments made in a given calendar
year subsequent to the first four years in which an insurer has been issuing
liability policies shall be distributed as follows: Thirty-five per centum
shall be charged to the policies written in that year, forty per centum to
the policies written in the preceding year, ten per centum to the policies
written in the second year preceding, ten per centum to the policies written
in the third year preceding and five per centum to the policies written in
the fourth year preceding. Such payments made in each of the first four
calendar years in which an insurer issued liability policies shall be dis-
tributed as follows: In the first calendar year one hundred per centum
shall be charged to the policies written in that year; in the second calendar
year fifty per centum shall be charged to the policies written in that year
and fifty per centum to the policies written in the preceding year; in the
third calendar year forty per centum shall be charged to the policies
written in that year, forty per centum to the policies written in the pre-
ceding year, and twenty per centum to the policies written in the second
year preceding; and in the fourth calendar year thirty-five per centum
shall be charged to the policies written in that year, forty per centum to
the policies written in the second year preceding, and ten per centum to
the policies written in the third year preceding, and a schedule showing
such distribution shall be included in the annual statement.

All unallocated compensation loss expense payments made in a given
calendar year subsequent to the first three years in which an insurer has
been issuing compensation policies shall be distributed as follows: Forty

1 Evidently a typographical error in the act.