ALBERT C. RITCHIE, GOVERNOR. 1187

by section 105, also at all times keep and maintain adequate
reserve sufficient to pay the claims which may have been filed
against such companies, computed as hereinafter provided.

SEC. 107. Liability and Compensation Claim Reserves. The
reserve for outstanding losses under insurance against loss or
damage resulting from accident to or injuries suffered by an
employee or other person and for which the insured is liable,
and under insurance against loss from liability 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 writ-
ten 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, (e) 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 dur-
ing the three years immediately 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 payments; (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
payments 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 re-
serve 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 premiums charged on all policies written, including all
determined excess and additional premiums, less return pre-