Mich. Admin. Code R. 500.1232 - Mortgage and land contract quaranty insurers; unearned premium reserves
Rule 2.
(1) The
unearned premium reserve for premiums paid in advance on mortgage and land
contract quaranty insurance policies covering a risk period of more than 1 year
shall be calculated based upon the annual unearned premium factor specified in
table 1.
(2) On premiums paid in
advance for coverage period in excess of 15 years, the unearned portion of the
premium during the first 15 years of coverage shall be the premium collected
minus an amount equal to the premium that would have been earned had the
applicable premiums for 15 years' coverage been received. The premium remaining
after 15 years shall be released from the unearned premium reserve pro rata
over the remaining term of coverage.
Notes
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