Loss reserves, liability insurance

1. Law
2. US Virgin Islands Code
3. Insurance
4. Assets and Liabilities
5. General Provisions
6. Loss reserves, liability insurance

• The reserves for outstanding losses and loss expense under policies of personal injury liability insurance and under policies of employer's liability insurance shall be computed as follows:

  • (1) for all liability suits being defended under policies written:

    • (A) ten years or more prior to the date of determination, $1,500 for each suit;

    • (B) five or more and less than ten years prior to the date of determination, $1,000 for each suit; and

    • (C) three or more and less than five years prior to the date of determination, $850 for each suit.

    In any event the total loss and loss expense reserves for all such liability policies written more than three years prior to the date of determination shall not be less than the aggregate of the estimated unpaid losses and loss expenses under such policies computed on an individual case basis.

  • (2) For all liability policies written during the three years immediately preceding the date of determination, such reserves shall be the sum of the reserves for each such year, which shall be 60 percent of the earned premiums on liability policies written during such year less all loss and loss expense payments made under such policies written in such year. In any event such reserves for each of such three years shall be not less than the aggregate of the estimated unpaid losses and loss expenses for claims incurred under liability policies written in the corresponding year computed on an individual case basis.

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