New Jersey Administrative Code › Title 11 - INSURANCE › Chapter 2 - INSURANCE GROUP › Subchapter 27 - DETERMINATION OF INSURERS IN A HAZARDOUS FINANCIAL CONDITION › Section 11:2-27.5 - Mortgage guaranty insurance; waivers

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A mortgage guaranty insurance company shall not transact any new business if the total outstanding liability under its aggregate insurance policies, as computed as set forth in 17:46A-3, exceeds 25 times its policyholders' surplus.
(b) From February 1, 2011 until January 31, 2014, the Commissioner may approve a written request for a waiver of the restriction set forth in (a) above received from a mortgage guaranty insurer. The request shall be made in writing at least 90 days in advance of the date that the mortgage guaranty insurer expects to exceed the said restriction. Waiver requests shall be directed to: The Office of Solvency Regulation
Department of Banking and Insurance
PO Box 325
Trenton, New Jersey 08625-0325
Fax: 609 292-6765
Email: mailto:osr@dobi.state.nj.us
(c) A written request for a waiver as referenced in (b) above shall include all the following information:
1. The size of the mortgage guaranty insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force, and other appropriate criteria;
2. The extent to which the mortgage guaranty insurer's business is diversified across time, geography, credit quality, origination, and distribution channels;
3. The nature and extent of the mortgage guaranty insurer's reinsurance program, demonstrated by a general description of the mortgage guaranty insurers' reinsurance program and a summary of the reinsurance contracts;
4. The mortgage guaranty insurer's assets and its investment portfolio, including information on its quality, diversity and liquidity;
5. The historical and forecasted trend in the size of the mortgage guaranty insurer's policyholder position;
6. The mortgage guaranty insurer's reserves and information on the adequacy of the reserves;
7. The extent and liquidity of the mortgage guaranty insurer's investments in affiliates, including information on the quality and liquidity of the investments. The Commissioner may treat any such investment as a non-admitted asset for purposes of determining the adequacy of surplus as regards policyholders;
8. The mortgage guaranty insurer's earnings, including information on the quality of the earnings, and the extent to which the reported earnings of the mortgage guaranty insurer include extraordinary items;
9. An independent actuary's opinion as to the reasonableness and adequacy of the mortgage guaranty insurer's historical and projected policyholder position;
10. The capital contributions which have been infused or are available for future infusion into the mortgage guaranty insurer; and
11. The historical and projected trends in the components of the mortgage guaranty insurer's aggregate insured risk, including, but not limited to, the quality and type of the risks included in the aggregate insured risk. Information on quality and type of risks should include the percentage of high risk loans and the percentage of primarily sub-prime lenders included in the aggregate risk.