Washington § 48.12.040 - Unearned premium reserve, property, casualty, and surety insurance.

Full text of Washington Revised Code of Washington § 48.12.040 — Unearned premium reserve, property, casualty, and surety insurance., with citation guidance and answers to common questions.

§ 48.12.040. Unearned premium reserve, property, casualty, and surety insurance.

(1) With reference to insurances against loss or damage to property, except as provided in RCW 48.12.050, and with reference to all general casualty insurances, and surety insurances, every insurer shall maintain an unearned premium reserve on all policies in force.
(2) The commissioner may require that such reserve shall be equal to the unearned portions of the gross premiums in force after deducting authorized reinsurance, as computed on each respective risk from the policy's date of issue. If the commissioner does not so require, the portions of the gross premiums in force, less authorized reinsurance, to be held as a premium reserve, shall be computed according to the following table:
Term for which policy
was written
Reserve for
unearned premium
One year, or less. . . .
 
1/2
Two years. . . .
First year
3/4
 
Second year
1/4
Three years. . . .
First year
5/6
 
Second year
1/2
 
Third year
1/6
Four years. . . .
First year
7/8
 
Second year
5/8
 
Third year
3/8
 
Fourth year
1/8
Five years. . . .
First year
9/10
 
Second year
7/10
 
Third year
1/2
 
Fourth year
3/10
 
Fifth year
1/10
Over five years. . . .
Pro rata
 
(3) In lieu of computation according to such table, all of such reserves may be computed, at the insurer's option, on a monthly pro rata basis.
(4) After adopting any one of the methods for computing such reserve an insurer shall not change methods without the commissioner's approval.
(5) If, for certain policies, the insurer's exposure to loss is uneven over the policy term, the commissioner may grant permission to the insurer to use a different method of calculating the unearned premium reserve on those certain policies.
[ 1995 c 35 s 1; 1973 1st ex.s. c 162 s 2; 1947 c 79 s .12.04; Rem. Supp. 1947 s 45.12.04.]

Source: official Washington text · Last verified 2026-08-27

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Frequently Asked Questions About Washington § 48.12.040

What does Revised Code of Washington § 48.12.040 cover?

Section 48.12.040 ("Unearned premium reserve, property, casualty, and surety insurance.") is part of the Revised Code of Washington, the codified statutory law of Washington. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Washington § 48.12.040?

A common citation format is "Revised Code of Washington § 48.12.040" (Washington). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Washington law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Washington official source linked on this page or consult a licensed Washington attorney.

How does Washington § 48.12.040 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Washington can advise on how this section applies to you. Contact your state or local bar association for a referral.

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