§ 6501. Definitions. In this article: (a) “Mortgage guaranty insurance” means insurance against financial loss by reason of nonpayment of any sum required to be paid under the terms of any instrument of indebtedness secured by a lien on real estate. (b) “Mortgage insurer” means a person licensed to transact the business of mortgage guaranty […]
§ 6502. Financial requirements. (a) A mortgage insurer shall not transact business 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 or, if a mutual insurance company, a minimum initial surplus of two million dollars. A stock company […]
§ 6503. Limitations. (a) Mortgage guaranty insurance may be transacted in this state only by a company licensed to do so and shall be written only: (1) to insure loans secured by authorized real estate securities; or (2) to insure pools of loans secured by instruments constituting a first lien on real estate and evidenced […]
§ 6504. Required approvals; prohibitions. (a) Every mortgage insurer shall file with the superintendent for his approval in accordance with article twenty-three of this chapter its premium rates, forms of policies, certificates, applications and other forms pertaining to mortgage guaranty insurance. The premium rate charged for mortgage guaranty insurance shall not be deemed to be […]
§ 6505. Licensing of agents. The standards in subsections (d) through (k), (m) and (o) of section two thousand one hundred three of this chapter shall apply to the licensing of agents for a mortgage insurer. Such license may be limited to mortgage guaranty insurance. In such event, the superintendent may, in his discretion, provide […]
§ 6506. Advertising. No regulated mortgage investor, any of whose authorized real estate securities are insured by mortgage guaranty insurance pursuant to this article may state in any form of report or advertising that the real estate loans of the investor are “insured loans” unless the report or any form of advertising also clearly states […]
§ 6507. Reinsurance. (a) A mortgage insurer may, by contract, reinsure any insurance it transacts and receive credit for such reinsurance as an asset or as a reduction from liabilities, including its contingency reserve liability, in its financial statements where such reinsurance is placed with another mortgage insurer licensed under this article. (b) Notwithstanding any […]
§ 6508. Additional powers of superintendent. The superintendent may adopt regulations necessary to carry out this article including restrictions on investments, giving full consideration to the desirability of high liquidity.
