Section 21: Contingency reserves.

(1) An insurer shall establish and maintain contingency reserves to cover fluctuations in securities and variation in statistical estimates.
(2) The contingency reserves shall be credited with an amount not less than 3 per centum of the total premium or 20 per centum of the net profits (whichever is greater) and the amount shall accumulate until it reaches the amount of the minimum paid-up capital or 50 per centum of the net premiums (whichever is greater).