unearned premium reinsurance
The unearned premium reserve is often referred to as the reinsurance reserve because it provides a fund for the reinsurance of outstanding policies and bonds, whether voluntarily by the insurer or mandatorily by the Superintendent in the event of rehabilitation or insolvency.43 Am. Jur. 2d Insurance Â§ 28 (1962).he unearned premium reserve is often referred to as the reinsurance reserve because it provides a fund for the reinsurance of outstanding policies and bonds, whether voluntarily by the insurer or mandatorily by the Superintendent in the event of rehabilitation or insolvency. 43 Am.