What must title underwriters do annually regarding their reserve requirements?

The correct answer is that title underwriters must calculate and validate their reserve requirements annually. Title underwriters are responsible for ensuring that they have sufficient reserves to cover potential claims arising from title policies. This calculation is a critical part of their financial management to ensure they remain solvent and can meet their obligations to policyholders.

By validating the reserve requirements, underwriters assess the risks associated with their policies and ensure that they have set aside the appropriate level of funds based on statistical data, past claims experience, and regulatory guidelines. Regular validation helps maintain financial stability and compliance with industry standards.

While options like submitting for external audit or filing a report with the Department of Insurance may be part of regulatory compliance, they do not specifically reflect the core responsibility of calculating and validating the reserves. Revising and submitting for approval may involve other aspects of underwriting or product offering but not directly completing the annual requirement regarding reserves. Therefore, the emphasis on calculation and validation encapsulates the essential duty of title underwriters in monitoring their financial health in relation to reserve requirements.