Allows withdrawals from mortgage guaranty insurance contingency reserve if superintendent determines it won't harm policyholders.

This bill amends the insurance law to allow for withdrawals from the contingency reserve for mortgage guaranty insurance if the superintendent determines that such withdrawals will not be harmful to policyholders. The contingency reserve is established from net premiums remaining after the unearned premium reserve is set. The bill specifies that contributions to the contingency reserve must be maintained for 120 months, but withdrawals can be made with superintendent approval if actual incurred losses exceed 35% of earned premiums. The act takes effect immediately.

Allows withdrawals from mortgage guaranty insurance contingency reserve if superintendent determines it won't harm policyholders.

This bill amends the insurance law to allow for withdrawals from the contingency reserve for mortgage guaranty insurance if the superintendent determines that such withdrawals will not be harmful to policyholders. The contingency reserve is established from net premiums remaining after the unearned premium reserve is set. The bill specifies that contributions to the contingency reserve must be maintained for 120 months, but withdrawals can be made with superintendent approval if actual incurred losses exceed 35% of earned premiums. The act takes effect immediately.