A mortgage guaranty insurer shall not insure loans secured by properties in a single housing tract or a contiguous tract in excess of ten (10) percent of the insurer’s policyholders surplus. In determining the amount of such risk, applicable reinsurance in any assuming insurer authorized to transact mortgage guaranty insurance in this State shall be deducted from the total direct risk insured. “Contiguous,” for the purposes of this section, means not separated by more than one-half mile.

(Added by Stats. 1961, Ch. 719.)

Terms Used In California Insurance Code 12640.08

  • Mortgage guaranty insurance: means :

    California Insurance Code 12640.02

  • Policyholders surplus: means the aggregate of capital, surplus, and contingency reserve. See California Insurance Code 12640.02
  • State: means the State of California, unless applied to the different parts of the United States. See California Insurance Code 28
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