Ala. Admin. Code r. 482-1-043-.04

Current through Register Vol. 43, No. 02, November 27, 2024

Section 482-1-043-.04 - Limitations

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

Ala. Admin. Code r. 482-1-043-.04

New Rule: January 12, 1976; effective January 22, 1976. Revised: Filed December 19, 2007; effective January 1, 2008. Filed with LRS December 19, 2007. Rule is not subject to the Alabama Administrative Procedure Act.

Statutory Authority:Code of Ala. 1975, §§ 27-2-17.