A mortgage guaranty insurer shall not insure loans secured by properties in a single housing tract or a contiguous tract in excess of ten (10) percent of the insurer’s policyholders surplus. In determining the amount of such risk, applicable reinsurance in any assuming insurer authorized to transact mortgage guaranty insurance in this State shall be deducted from the total direct risk insured. “Contiguous,” for the purposes of this section, means not separated by more than one-half mile.
Cal. Ins. Code § 12640.08
Limitations and Restrictions for Transacting Business
Known as the Mortgage Guaranty Insurance Act
The act spans §§ 12640.01 to 12640.20 (23 sections).
Added by Stats. 1961, Ch. 719.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.