515C.4 Contingency reserve.
For the protection of the people of this state and for the purpose of protecting against the effect of adverse economic cycles, the company shall establish a contingency reserve. The company shall annually contribute fifty percent of the earned premiums to this reserve. The earned premiums so reserved may be released annually after the period of time required by the commissioner, provided that said time shall not be less than one hundred twenty months. However, subject to the approval of the commissioner, this reserve may be available only for loss payments, when the loss ratio (incurred losses to premiums earned) exceeds twenty percent. This amount so used shall reduce the next subsequent annual release to surplus from the established contingency reserve.
[C66, 71, 73, 75, 77, 79, 81, ยง515C.4]
Structure Iowa Code
Chapter 515C - MORTGAGE GUARANTY INSURANCE
Section 515C.2 - Eligibility for insurance.
Section 515C.3 - Bases for computations.
Section 515C.4 - Contingency reserve.
Section 515C.5 - Limit of outstanding liability.
Section 515C.6 - Determination of loss reserves.
Section 515C.7 - Rate-making provisions.
Section 515C.8 - Policy forms approved.
Section 515C.9 - Restrictions on advertising.
Section 515C.10 - Law applicable.
Section 515C.11 - Mortgages secured by first lien on real estate.