40-3518. Contingency reserve requirement; withdrawals.
40-3518
40-3518. Contingency reserve requirement; withdrawals.Each mortgage guaranty insurance company shall establish a contingency reserveout of net premiums remaining (gross premiums less premiums returned topolicyholders net of reinsurance) after establishment of the unearned premiumreserve. The mortgage guaranty insurance company shall contribute to thecontingency reserve an amount equal to fifty percent (50%) of such remainingearned premiums. Contributions to the contingency reserve made during eachcalendar year shall be maintained for a period of one hundred twenty (120)months, except that withdrawals may be made by the company in any year inwhich the actual incurred losses exceed thirty-five percent (35%) of thecorresponding earned premiums, and no such releases shall be made withoutprior approval by the commissioner of the mortgage guaranty insurance company'sstate of domicile.
History: L. 1977, ch. 154, § 18; Jan. 1, 1978.