Ins 3.09(3)(i)2. 2. Insures pursuant to s. Ins 6.75 (2) (j) against loss arising from failure of debtors to meet financial obligations to creditors under evidences of indebtedness secured by a junior lien or charge on real estate.

Ins 3.09(3)(j) (j) “Mortgage guaranty insurers report of policyholders position” means the annual supplementary report required by s. Ins 7.02, Forms 22-090 and 22-091.

Ins 3.09(3)(k) (k) “NAIC Ratio—Investment Yield” means net investment income earned after taxes from the annual statement divided by mean invested assets.

Ins 3.09(3)(L) (L) “Person” means any individual, corporation, association, partnership or any other legal entity.

Ins 3.09(3)(m) (m) “Policyholders position” includes the contingency reserve established under sub. (14), the deferred risk charge established under sub. (13) (b) and surplus as regards policyholders. “Minimum policyholders position” is calculated as described in sub. (5).

Ins 3.09(3)(n) (n) “Surplus as regards policyholders” means an insurer’s net worth, the difference between its assets and liabilities, as reported in its annual statement.

Ins 3.09(4) (4) Discrimination. No mortgage guaranty insurer may discriminate in the issuance or extension of mortgage guaranty insurance on the basis of the geographic location of the property or the applicant’s sex, marital status, race, color, creed or national origin.

Ins 3.09(5) (5) Minimum policyholders position.

Ins 3.09(5)(a) (a) For the purpose of complying with s. 623.11, Stats., a mortgage guaranty insurer shall maintain at all times a minimum policyholders position in the amount required by this section. The policyholders position shall be net of reinsurance ceded but shall include reinsurance assumed.

Ins 3.09(5)(b) (b) If a mortgage guaranty insurer does not have the minimum amount of policyholders position required by this section it shall cease transacting new business until such time that its policyholders position is in compliance with this section.

Ins 3.09(5)(c) (c) If a policy of mortgage guaranty insurance insures individual loans with a percentage claim settlement option on such loans, a mortgage guaranty insurer shall maintain a policyholders position based on: each $100 of the face amount of the mortgage; the percentage coverage; and the loan-to-value category. The minimum amount of policyholders position shall be calculated in the following manner:

Ins 3.09(5)(c)1. 1. If the loan-to-value is greater than 75%, the minimum policyholders position per $100 of the face amount of the mortgage for the specific percent coverage shall be as shown in the schedule below:

- See PDF for table

Ins 3.09(5)(c)2. 2. If the loan-to-value is at least 50% and not more than 75%, the minimum amount of the policyholders position shall be 50% of the minimum of the amount calculated under subd. 1.

Ins 3.09(5)(c)3. 3. If the loan-to-value is less than 50%, the minimum amount of policyholders position shall be 25% of the amount calculated under subd. 1.

Ins 3.09(5)(d) (d) If a policy of mortgage guaranty insurance provides coverage on a group of loans subject to an aggregate loss limit, the policyholders position shall be:

Ins 3.09(5)(d)1. 1. If the equity is not more than 50% and is at least 20%, or equity plus prior insurance or a deductible is at least 25% and not more than 55%, the minimum amount of policyholders position shall be calculated as follows:

- See PDF for table

Ins 3.09(5)(d)2. 2. If the equity is less than 20%, or the equity plus prior insurance or a deductible is less than 25%, the minimum amount of policyholders position shall be 200% of the amount required by subd. 1.

Ins 3.09(5)(d)3. 3. If the equity is more than 50%, or the equity plus prior insurance or a deductible is more than 55%, the minimum amount of policyholders position shall be 50% of the amount required by subd. 1.

Ins 3.09(5)(e) (e) If a policy of mortgage guaranty insurance provides for layers of coverage, deductibles or excess reinsurance, the minimum amount of policyholders position shall be computed by subtraction of the minimum position for the lower percentage coverage limit from the minimum position for the upper or greater coverage limit.

Ins 3.09(5)(f) (f) If a policy of mortgage guaranty insurance provides for coverage on loans secured by junior liens, the policyholders position shall be:

Ins 3.09(5)(f)1. 1. If the policy provides coverage on individual loans, the minimum amount of policyholders position shall be calculated as in par. (c) as follows:

Ins 3.09(5)(f)1.a. a. The loan-to-value percent is the entire loan indebtedness on the property divided by the value of the property;

Ins 3.09(5)(f)1.b. b. The percent coverage is the insured portion of the junior loan divided by the entire loan indebtedness on the collateral property; and

Ins 3.09(5)(f)1.c. c. The face amount of the insured mortgage is the entire loan indebtedness on the property.

Ins 3.09(5)(f)2. 2. If the policy provides coverage on a group of loans subject to an aggregate loss limit, the policyholders position shall be calculated according to par. (d) as follows:

Ins 3.09(5)(f)2.a. a. The equity is the complement of the loan-to-value percent calculated as in subd. 1.;

Ins 3.09(5)(f)2.b. b. The percent coverage is calculated as in subd. 1.; and