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)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)(b)(b) Meets the criteria in sub. (12) (g) and (h).

Ins 3.09(7m)(c)(c) Invests in the type of assets permitted by s. Ins 6.20 (5), or, for the reserves required by subs. (13) and (15), in funds as defined by ch. Ins 52.

Ins 3.09(7m)(d)(d) Makes quarterly and annual reports as required by the commissioner.

Ins 3.09(7m)(e)(e) Is subject to withdrawals only by and under the control of the ceding mortgage guaranty insurer.

Ins 3.09(7m)(f)(f) Permits examinations by the commissioner.

Ins 3.09(7m)(g)(g) Designates a Wisconsin agent for service of process.

Ins 3.09(7m)(h)(h) Provides to the commissioner an opinion of counsel stating that the segregated trust and its governing agreements comply with the applicable sections of this section and that the reinsured will have a valid and perfected security interest or an equitable interest in the assets transferred under the trust agreements, or both, and will be entitled to use those assets for the purpose of satisfying a reinsurer’s obligations under the trust agreement in the event of the bankruptcy of the reinsurer.

Ins 3.09(7m)(i)(i) Is governed by an agreement which, together with all amendments, has been approved by the commissioner.

Ins 3.09(8)(a)(a) A mortgage guaranty insurer may, by contract, reinsure any insurance it transacts, except that no mortgage guaranty insurer may enter into reinsurance arrangements designed to circumvent the compensation control provisions of sub. (16) or the contingency reserve requirement of sub. (14). The unearned premium reserve required by sub. (13), the contingency reserve required by sub. (14) and the loss reserve required by sub. (15) shall be established and maintained by the original insurer or by the assuming reinsurer so that the aggregate reserves shall be equal to or greater than the reserves required by subs. (13), (14) and (15).

Ins 3.09(8)(b)(b) If reinsurance is assumed by an insurer which insures or reinsures other lines of insurance in addition to mortgage guaranty insurance, then in order for a mortgage guaranty insurer to receive credit for reinsurance ceded in its financial statements and in the calculation of minimum policyholders position, all of the following shall occur:

Ins 3.09(8)(b)1.1. The reinsurance agreement and the segregated account or segregated trust arrangements shall be submitted to the commissioner for approval.

Ins 3.09(8)(b)2.2. The reinsurer shall establish and maintain in a segregated account or segregated trust the reserves required by subs. (13), (14) and (15).

Ins 3.09(8)(b)3.b.b. The commissioner shall approve any amendments to the reinsurance agreement before the amendments become effective;