Alabama Administrative Code
Title 482 - ALABAMA DEPARTMENT OF INSURANCE
Chapter 482-1-043 - MORTGAGE GUARANTY INSURANCE
Section 482-1-043-.04 - Limitations
Current through Register Vol. 42, No. 11, August 30, 2024
In addition to laws or regulations otherwise applicable, mortgage guaranty insurers shall be subject to the following limitations:
(a) No insurer shall retain risk as to any one subject of insurance in any amount exceeding ten (10) percent of its surplus as to regards policyholders. In determining the amount of risk retained, applicable reinsurance in any assuming insurer authorized in this State via a subsisting Certificate of Authority or approved by the Commissioner shall pursuant to Section 27-5-12, Code of Ala. 1975, may be deducted from the total direct risk insured.
(b) The real estate loan secured by a mortgage deed of trust or other instrument constituting a first lien or charge on real estate is one which a bank, savings and loan association, mortgage company, or an insurance company is authorized to make.
Author: Commissioner of Insurance
Statutory Authority: Code of Ala. 1975, §§ 27-2-17.