1. A plan shall establish loss reserves for all incurred losses, both reported and unreported, and for unearned premiums.
2. A plan also shall establish a surplus account equal to the greater of the following:
(1) Three times the average paid monthly premium during the plan's most recent fund year;
(2) For plans which do not yet have one fund year's experience, three times estimated monthly premium; or
(3) Six hundred thousand dollars.