A. If the laws of any other jurisdiction in which a mortgage guaranty insurance company, subject to the requirement of this article is also licensed to transact mortgage guaranty insurance, require a larger unearned premium reserve or contingency reserve in the aggregate than that set forth in this article, the establishment of such larger unearned premium reserve or contingency reserve in the aggregate shall be deemed to be in compliance with this article.

Terms Used In Arizona Laws 20-1558

  • Contingency reserve: means an additional premium reserve established to protect policyholders against the effect of adverse economic cycles. See Arizona Laws 20-1541
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • 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

B. Unearned premium reserves and contingency reserves shall be computed and maintained on risks insured after the effective date of this article as required by sections 20-1554 and 20-1556. Unearned premium reserves and contingency reserves on risks insured before the effective date of this article may be computed and maintained as required previously.

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