(a) The unearned premium reserve of every title insurance company shall consist of:

(b) Except as otherwise provided in this subsection, every title insurance company shall add to its unearned premium reserve, in respect to each policy or contract or reinsurance agreement issued by it, a sum of money out of the fees due or received for such title insurance made by it, a sum equal to one dollar ($1) for each such policy or contract or agreement, plus ten cents (10¢) for each one thousand dollars ($1000) face amount of net retained liability, and shall each year separately report the amounts so set aside in respect to policies, contracts or agreements written in such year. If substantially the entire outstanding liability of any such title insurance company shall be reinsured, the unearned premium reserve of the reinsurer shall be equal in amount to the reserve of the ceding title insurance company in respect to such outstanding liability so reinsured.

(c) The amounts set aside as additions to the unearned premium reserve shall be deducted in determining net profits of any title insurance company.

(d) For the purposes of determining the amounts of the unearned premium reserve that may be withdrawn, and the interest of the policyholders therein under section 717 of this act,¹ all policies, contracts or reinsurance agreements of title insurance shall be considered as dated on July 1 in the year of issue.

(e) Additions to the unearned premium reserve which shall have been held for a period of twenty years shall be released, shall no longer constitute a part of the unearned premium reserve, shall constitute a part of net profit for the year in which the release is made and may be used for any corporate purposes, including the payment of dividends.

(f) Additions to the unearned premium reserve made since the establishment of the unearned premium reserve by sections 690 to 694² shall continue to be released in the manner prescribed in subsection (e) of this section.

(g) That part of the unearned premium reserve created by sections 690 to 694, consisting of the aggregation of the reinsurance reserve fund, title reserve fund and title reserve, held as of February 1, 1956, shall continue to be released as provided in subsection (e) of this section, Provided, That the aggregated reserve created by those sections shall continue to be presumed to have been established out of income in twenty equal annual additions over the twenty years preceding February 1, 1956, whether or not such title insurance company had been in existence for that period.