2006 Kentucky Revised Statutes - .090   Mortgage guaranty insurer to maintain statutory contingency reserve -- Release.

304.6-090 Mortgage guaranty insurer to maintain statutory contingency reserve -- Release. For the protection of the policyholders against loss during periods of extreme economic contraction, each mortgage guaranty insurer shall maintain a liability referred to as a statutory contingency reserve. The statutory contingency reserve shall be a separate fund, in addition to the mortgage guaranty insurer's unearned premium reserve. The insurer shall annually contribute fifty percent (50%) of the earned premiums from mortgage guaranty insurance contracts to this liability, which shall be maintained for ten (10) years regardless of the coverage period for which premiums were paid. Subject to the approval of the executive director, the contingency reserve may be released in any year in which actual incurred losses exceed thirty-five percent (35%) of the corresponding earned premiums. Any reductions shall be made on a first-in, first-out basis. Changes in the reserve shall be recorded directly to unassigned funds. Effective: July 13, 2004 History:Amended 2004 Ky. Acts ch. 24, sec. 15, effective July 13, 2004. -- Created 1970 Ky. Acts ch. 301, subtit. 6, sec. 9, effective June 18, 1970 Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to agencies and officers whose names have been changed in 2005 legislation confirming the reorganization of the executive branch. Such a correction has been made in this section.