The deposit required pursuant to

Section shall be adjusted on or prior to March of each year in an amount as follows: (

a) Not less than the sum of the following amounts computed, less credits and deductions allowable with respect to reinsurance in admitted insurers, as provided under

Section 11691, as of the close of the last preceding December or as of any calendar quarter end as directed by the commissioner pursuant to

Section in respect to workers’ compensation insurance written subject to the workers’ compensation laws of this state:

(1) The aggregate of the present values at percent interest, or at the rate of the company’s investment yield as determined by the NAIC Insurance Regulatory Information System Ratio Number for Property and Casualty Companies, whichever is lower, of the determined and estimated future payments upon compensation claims not included in paragraph (2), including in those claims both benefits and loss expenses.

(2) The aggregate of the amounts computed as follows: For each of the preceding three years, 65 percent of the earned compensation premiums for that year less all loss and loss expense payments made upon claims incurred in the corresponding year from that percent; except that the amount for each year shall not be less than the present value at percent interest of the determined and the estimated unpaid claims incurred in that year, including both benefits and loss expenses. (

b) Not less than one hundred thousand dollars ($100,000). (

c) If the aggregate amount computed under subdivision (

a) exceeds fifty thousand dollars ($50,000), not more than double the aggregate amount. (

d) The commissioner may utilize securities valuation software programs or services to validate the value of securities held in workers’ compensation deposits of insurers authorized to transact workers’ compensation insurance in California as direct writers or reinsurers, or reinsurers of workers’ compensation under the class of disability.