2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 515C - MORTGAGE GUARANTY INSURANCE
515C.4 - CONTINGENCY RESERVE.

        515C.4  CONTINGENCY RESERVE.
         For the protection of the people of this state and for the purpose
      of protecting against the effect of adverse economic cycles, the
      company shall establish a contingency reserve.  The company shall
      annually contribute fifty percent of the earned premiums to this
      reserve.  The earned premiums so reserved may be released annually
      after the period of time required by the commissioner, provided that
      said time shall not be less than one hundred twenty months.  However,
      subject to the approval of the commissioner, this reserve may be
      available only for loss payments, when the loss ratio (incurred
      losses to premiums earned) exceeds twenty percent.  This amount so
      used shall reduce the next subsequent annual release to surplus from
      the established contingency reserve.  

         [C66, 71, 73, 75, 77, 79, 81, § 515C.4]