Opinion ID: 38079
Heading Depth: 2
Heading Rank: 2

Heading: The Mortgage Insurance Agreement

Text: At all times pertinent to this case, NovaStar was party to a Mortgage Insurance Agreement with MLIC. This agreement obligated NovaStar to distribute “descriptive brochures and other promotional materials relating to [MLIC’s] insurance coverages” to its borrowers. As consideration, NovaStar received a percentage of the premiums collected on any insurance written by MLIC for NovaStar’s borrowers. The agreement also required NovaStar to facilitate the collection of premiums by including the amount of the premium in the insured borrower’s monthly invoice. All MLIC brochures and promotional materials required to be distributed under the Mortgage 2 Emphasis added. 3 Insurance Agreement by NovaStar to its borrowers were subject to NovaStar’s prior written approval. In January 2001, acting in accordance with its Mortgage Insurance Agreement with MLIC, NovaStar mailed the Jenkinses an unsolicited MLIC application (“the application”) for Mortgage Life and Disability Insurance underwritten by MLIC. The MLIC application was mailed to the Jenkinses by a cover letter written on NovaStar’s letterhead and was accompanied by a MLIC brochure describing the MLIC policy.