Cal. Code Regs. Tit. 10, § 2510.16 - Liability Limitations
The total liability of mortgage guaranty insurer under a pool insurance policy shall be limited as follows:
(a) To the maximum aggregate ceiling of
loss;
(b) If a mortgage guaranty
insurer agrees to write in excess of twenty-five percent (25%) at risk of the
entire indebtedness on individual mortgage loans, through utilization of
reinsurance, as provided for in Section
12640.09(c)
of the California Insurance Code, the total net liability of such insurer under
the pool insurance policy, both directly and indirectly, shall be limited to
the actual amount of loss to the insured on each individual loan
insured;
(c) The determination of
the actual amount of loss to the insured shall not be subject to any adjustment
resulting in any credit due to deductions, netting, or otherwise, upon resale
of the property in the event that the mortgage guaranty insurer exercises its
option during the claims period to acquire the property to mitigate its losses,
other than that which is described under Section
2510.9(m)(1) of
this Article, and
(d) The maximum
liability of the insurer will be reached when the cumulative actual amount of
loss to the insured equals the initial aggregate loss limit under the pool
insurance policy.
Notes
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