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In estimating the profit of any such company for the purpose of making a division thereof
between the guaranty surplus fund and the special reserve fund, until these funds shall together
amount to a sum equal to the capital stock of the company or amount to the sum of $2,000,000,
there shall be deducted from the gross assets of the company, including for this purpose the
amount of the special reserve fund, the sum of the following items:
(1) the amount of all outstanding claims;
(2) an amount sufficient to meet the liability of the company for the unearned premiums
upon its unexpired policies, which amount shall at least equal one-half the premiums received on
policies having one year or less to run from the date of policy, and a pro rata proportion of the
premiums received on the policies having more than one year to run from the date of policy, and
shall be known as the reinsurance liability;
(3) the amount of its guaranty surplus fund and of its special reserve fund;
(4) the amount of the capital of the company; and
(5) interest at the rate of eight percent per annum upon the amount of capital, and six percent
per annum upon the amount of the said funds for whatever time shall have elapsed since the last
preceding cash dividend. The balance shall constitute the net surplus of the company, any portion
of which is subject to an equal division between these funds, as herein provided.
History: 1967 c 395 art 6 s 20

Official Publication of the State of Minnesota
Revisor of Statutes