2005 Idaho Code - 41-2653 — LIMITS OF RISK

                                  TITLE  41
                                  INSURANCE
                                 CHAPTER 26A
                         MORTGAGE GUARANTY INSURANCE
    41-2653.  LIMITS OF RISK. (1) The insurer shall limit its coverage to an
amount not exceeding twenty-five per cent (25%) of the entire indebtedness to
the insured, or in lieu thereof, the insurer may elect to pay the entire
indebtedness to the insured, and acquire title to the authorized real property
security.
    (2)  The insurer shall not retain risk as to any one (1) loan, or as to
all loans secured by properties in a single housing tract or a contiguous
tract, in an amount in excess of ten per cent (10%) of the insurer's
policyholders surplus. In determining the amount of risk retained, applicable
reinsurance in an assuming insurer authorized to transact insurance in this
state or approved by the director shall be deducted from the total direct risk
insured. For the purposes of this provision "contiguous" means not separated
by more than one-half (1/2) of a mile.
    (3)  The insurer shall not at any time have outstanding aggregate risk
liability, net of applicable reinsurance, under mortgage guaranty insurance in
amount in excess of twenty-five (25) times its policyholders surplus.
    (4)  If at any time the insurer's outstanding risk liability as to
mortgage guaranty insurance exceeds the limitations stated in subsection (3),
the insurer shall accept no new mortgage guaranty insurance risks while such
excess exists.
    (5)  The director may suspend or revoke the certificate of authority of an
insurer which violates this section.