Cal. Code Regs. Tit. 10, § 2510.7 - Use of Contingency Reserves for Loss Payments

Subject to the written consent of the Insurance Commissioner or supervisory official of the jurisdiction in which a mortgage guaranty insurer is domiciled, the contingency reserve shall be available for loss payments only when and to the extent that the incurred losses in any calendar year exceed expected losses for such year. The term "expected losses" as used herein and in Section 12640.04 of the Insurance Code is defined to mean an amount equal to 20 percent of the premium earned during such calendar year without diminution because of contributions to the contingency reserve.

Notes

Cal. Code Regs. Tit. 10, § 2510.7

1. Renumbering of Section 2517 to Section 2510.7 filed 8-23-78; effective thirtieth day thereafter (Register 78, No. 34).

1. Renumbering of Section 2517 to Section 2510.7 filed 8-23-78; effective thirtieth day thereafter (Register 78, No. 34).