The agency shall establish reserve accounts for unearned premiums, losses, and potential catastrophic losses caused by economic cycles. The agency shall not cause sums to be withdrawn from the loan insurance reserve account in amounts which would reduce the moneys therein to less than the insurance reserve requirement, except as necessary to satisfy liabilities arising under contracts of loan insurance. In the event that the loan insurance reserve account is reduced to less than the insurance reserve requirement, the agency shall cease making commitments for, and contracts of, insurance until the loan insurance reserve account has been restored to satisfy that requirement.

(Added by Stats. 1993, Ch. 115, Sec. 4. Effective July 15, 1993.)

Terms Used In California Health and Safety Code 51639

  • Insurance reserve requirement: means an amount established by the agency, which shall, as of any particular date of computation, be at least equal to the total of both of the following:

    California Health and Safety Code 51603

  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  Previous section
Next section  
 Chapter 2 Contents