20-1541. Definitions In this article, unless the context otherwise requires: 1. " Authorized real estate security" means either: (a) Any amortized note, bond or other evidence of indebtedness that is secured by both a mortgage, deed of trust or other instrument that constitutes or is equivalent to a first lien or charge on real estate […]
20-1542. Capital and surplus A. A mortgage guaranty insurance company shall not transact the business of mortgage guaranty insurance unless: 1. If a stock insurance company, it has paid in capital of at least one million dollars and paid in surplus of at least one million dollars. 2. If a mutual insurance company, it has […]
20-1543. Limitation on geographic concentration A. A mortgage guaranty insurance company shall not: 1. Insure loans secured by a single risk in excess of ten per cent of the company’s aggregate capital, surplus and contingency reserve. 2. Have more than twenty per cent of its total insurance in force in any one standard metropolitan statistical […]
20-1544. Limitation on advertising A mortgage guaranty insurance company or any agent or representative of a mortgage guaranty insurance company shall not prepare or distribute or assist in preparing or distributing any brochure, pamphlet, report or any form of advertising to the effect that the real estate investments of any financial institution are " insured […]
20-1545. Limitation on investment A mortgage guaranty insurance company shall not invest in notes or other evidences of indebtedness secured by mortgage or other lien upon real property. This section shall not apply to obligations secured by real property, or contracts for the sale of real property, which are acquired in the course of the […]
20-1547. Mortgage guaranty insurance as monoline A. A mortgage guaranty insurance company that anywhere transacts any class of insurance other than mortgage guaranty insurance is not eligible for the issuance or renewal of a certificate of authority to transact mortgage guaranty insurance in this state. B. A mortgage guaranty insurance company that anywhere transacts the […]
20-1548. Underwriting discrimination A. Nothing in this article shall be construed as limiting the right of any mortgage guaranty insurance company to impose reasonable requirements upon the lender with regard to the terms of any note or bond or other evidence of indebtedness secured by a mortgage or deed of trust, such as requiring a […]
20-1549. Policy forms and premium rates filed A. A mortgage guaranty insurer shall file all policy forms, endorsements and rates a mortgage guaranty insurer proposes to use with the director pursuant to chapter 2, article 4.1. With respect to owner-occupied, single-family dwellings, the mortgage guaranty insurance policy shall provide that the borrower shall not be […]
20-1550. Minimum policyholder position; definitions A. A mortgage guaranty insurer shall maintain at all times a minimum policyholder position in an amount not less than the amount required by this section. The face amount of an insured mortgage shall include reinsurance assumed and shall be calculated net of reinsurance that is ceded to an insurer […]
20-1551. Rebates, commissions and charges A. A mortgage guaranty insurance company shall not pay or cause to be paid either directly or indirectly, to any owner, purchaser, lessor, lessee, mortgagee or prospective mortgagee of the real property which secures the authorized real estate security or which is the fee of an insured lease, or any […]
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 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 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 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 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 […]
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 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 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 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 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. […]
