INSURANCE 2149

on account of the death of or injury to an employee not caused by the
negligence of the employer, shall be determined as follows:

(1) For all liability suits being defended under policies written more
than (a) Ten Years prior to the date as of which the statement is made,
one thousand five hundred dollars for each suit, (b) Five and less than
Ten Years prior to the date as of which the statement is made, one thousand
dollars for each suit, (c) Three and less than Five Years prior to the date
as of which the statement is made, eight hundred and fifty dollars for each
suit; (2) For all liability policies written during the three years immedi-
ately preceding the date as of which the statement is made, such reserve
shall be sixty per centum of the earned liability premiums of each of such
three years, less all loss and loss expense payments made under liability
policies written in the corresponding years; but in any event, such reserve
shall, for the first of such three years, be not less than seven hundred and
fifty dollars for each outstanding liability suit on said year's policies;
(3) For all compensation claims under policies written more than three
years prior to the date as of which the statement is made, the present values
at four per centum interest of the determined and estimated future pay-
ments ; (4) For all compensation claims under policies written in the three
years immediately preceding the date as of which the statement is made,
such reserve shall be sixty-five per centum of the earned compensation
premiums of each of such three years, less all loss and loss expense pay-
ments made in connection with such claims under policies written in the
corresponding years; but in any event, in the case of the first year of any
such three-year period such reserve shall not be less than the present value
at four per centum interest of the determined and the estimated unpaid
compensation claims under policies written during such year.

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 Article 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, postages, 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.

¹ Evidently a typographical error in the act.