§ 20-1556.01 – Premium deficiency reserve
20-1556.01. Premium deficiency reserve If the mortgage guaranty insurance company’s anticipated losses, loss adjustment expenses, commissions and other acquisition costs and maintenance costs are more than the recorded unearned premium reserve, contingency reserve and estimated future renewal premiums on existing policies, the company shall establish a premium deficiency reserve by recording an additional liability for […]
§ 20-1557 – Reinsurance
20-1557. Reinsurance A. If a mortgage guaranty insurance company obtains reinsurance from an insurance company that is properly licensed to provide such reinsurance or from an appropriate governmental agency, the mortgage guaranty insurer and the reinsurer shall establish and maintain the reserves required in this article in appropriate proportions in relation to the risk retained […]
§ 20-1558 – Miscellaneous reserves
20-1558. Miscellaneous reserves A. If the laws of any other jurisdiction in which a mortgage guaranty insurance company, subject to the requirement of this article is also licensed to transact mortgage guaranty insurance, require a larger unearned premium reserve or contingency reserve in the aggregate than that set forth in this article, the establishment of […]
§ 20-1559 – Mortgage guaranty insurers; dividend payment
20-1559. Mortgage guaranty insurers; dividend payment A. Notwithstanding section 20-722, a domestic mortgage guaranty insurance company may pay dividends out of any available surplus monies if the mortgage guaranty insurance company continues to comply with the policyholder surplus and reserve requirements under this article. B. The payment of a dividend by a domestic mortgage guaranty […]
§ 20-1560 – Examinations; rules
20-1560. Examinations; rules A. The director may use independent contractor examiners pursuant to sections 20-148 and 20-159 to conduct examinations to review compliance with this article. All examination and examination related expenses shall be borne by the mortgage guaranty insurer and shall be paid by the insurance examiners’ revolving fund pursuant to section 20-159. B. […]
§ 20-1552 – Compensating balances prohibited
20-1552. Compensating balances prohibited A. Except for commercial checking accounts and normal deposits in support of an active bank line of credit, a mortgage guaranty insurance company, its holding company or any affiliate of either such companies shall not maintain funds on deposit with the lender for which the mortgage guaranty insurance company has insured […]
§ 20-1553 – Conflict of interest
20-1553. Conflict of interest A. If it is a member of a holding company system, a mortgage guaranty insurance company licensed to transact business in this state shall not, as a condition of its certificate of authority, knowingly underwrite mortgage guaranty insurance on mortgages originated by the holding company system or an affiliate or on […]
§ 20-1554 – Unearned premium reserve
20-1554. Unearned premium reserve A mortgage guaranty insurance company shall compute and maintain an unearned premium reserve that is according to the method approved by the director and that is consistent with the accounting practices and procedures manual adopted by the national association of insurance commissioners.
§ 20-1555 – Loss reserve
20-1555. Loss reserve A mortgage guaranty insurance company shall compute and maintain adequate case basis and other loss reserves which accurately reflect loss frequency and loss severity and shall include components for claims reported and unpaid, and for claims incurred but not reported, including estimated losses on: 1. Insured loans which have resulted in the […]
§ 20-1556 – Contingency reserve
20-1556. Contingency reserve A. In addition to the paid in capital and surplus provided in section 20-1542 each mortgage guaranty insurer shall establish a contingency reserve after establishing the unearned premium reserve. The mortgage guaranty insurer shall annually contribute to the contingency reserve an amount that in the aggregate is the greater of either fifty […]