3 Colo. Code Regs. § 702-3-1-15-5
The Premium Deficiency Reserve must be calculated, according to the following methodology and, if greater than zero, disclosed as a liability on each financial statement filed with the Colorado Division of Insurance, with a corresponding charge to operations. The reserve must be calculated, for each contract grouping, as the sum of the:
Present value of future paid claims through the end of the deficiency period;
Present value of future expenses; and
Present value of the claim and contract reserves at the end of the deficiency period. Less:
The claim reserves as of the valuation date, including special large claim reserves;
The contract reserves as of the valuation date;
The present value of the future earned premiums and appropriate investment income for the deficiency period; and
Any current balance sheet accruals for future expenses.
3 CCR 702-3-1-15-5