Arizona Laws 20-1543. Limitation on geographic concentration
A. A mortgage guaranty insurance company shall not:
Terms Used In Arizona Laws 20-1543
- Contingency reserve: means an additional premium reserve established to protect policyholders against the effect of adverse economic cycles. See Arizona Laws 20-1541
- department: means the department of insurance and financial institutions. See Arizona Laws 20-101
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage guaranty insurance: means insurance against financial loss by reason of nonpayment of:
(a) Principal, interest or other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust or other instrument constituting a lien or charge on real estate if the improvement on such real estate is a residential building or a condominium unit or buildings designed for occupancy by not more than four families. See Arizona Laws 20-1541
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. Insure loans secured by a single risk in excess of ten per cent of the company’s aggregate capital, surplus and contingency reserve.
2. Have more than twenty per cent of its total insurance in force in any one standard metropolitan statistical area, as defined by the United States department of commerce.
B. The provisions of this section shall not apply to a mortgage guaranty insurance company until it has possessed a certificate of authority in this state for three years.