NAC681A.280. “Obligation” defined.

“Obligation” includes:

     1. Reinsured losses and allocated loss expenses paid by the ceding company, but not recovered from the assuming insurer;

     2. Reserves for reinsured losses reported and outstanding;

     3. Reserves for reinsured losses incurred but not reported; and

     4. Reserves for allocated reinsured loss expenses and unearned premiums.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)