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: 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.c.c. The face amount of the insured mortgage is the entire loan indebtedness on the property. Ins 3.09(5)(g)(g) If a policy of mortgage guaranty insurance provides for coverage on leases, the policyholders position shall be $4 for each $100 of the insured amount of the lease. Ins 3.09(5)(h)(h) If a policy of mortgage guaranty insurance insures loans with a percentage loss settlement option coverage between any of the entries in the schedules in this subsection, then the factor for policyholders position per $100 of the face amount of the mortgage shall be prorated between the factors for the nearest Percent Coverage listed. Ins 3.09(6)(6) Limitation on investment. A mortgage guaranty insurer shall not invest in notes or other evidences of indebtedness secured by mortgage or other lien upon real property. This section shall not apply to obligations secured by real property, or contracts for the sale of real property, which obligations or contracts of sale are acquired in the course of the good faith settlement of claims under policies of insurance issued by the mortgage guaranty insurer, or in the good faith disposition of real property so acquired. Ins 3.09(7)(a)(a) A mortgage guaranty insurer shall not insure loans secured by properties in a single or contiguous housing or commercial tract in excess of 10% of the insurer’s admitted assets. A mortgage guaranty insurer shall not insure a loan secured by a single risk in excess of 10% of the insurer’s admitted assets. In determining the amount of such risk or risks, the insurer’s liability shall be computed on the basis of its election to limit coverage and net of reinsurance ceded to an insurer authorized to transact such reinsurance in this state. “Contiguous” for the purpose of this subsection means not separated by more than one-half mile. Ins 3.09(7)(b)(b) A mortgage guaranty insurer shall not insure loans with balloon payment provisions unless the policy provides: Ins 3.09(7)(b)1.1. That liability for the balloon payment is specifically excluded; or Ins 3.09(7)(b)2.2. That at the time the lender calls the loan, the lender will offer new or extended financing at the then market rates; or Ins 3.09(7m)(7m) Segregated trust requirements. A segregated trust established under this section shall be established by a reinsurer for the benefit of a mortgage guaranty insurer and shall satisfy all of the following requirements: Ins 3.09(7m)(a)(a) Has a trustee domiciled in the mortgage guaranty insurer’s state of domicile, domiciled in Wisconsin or approved by the commissioner. Ins 3.09(7m)(d)(d) Makes quarterly and annual reports as required by the commissioner.