20-1555. Loss reserve


A mortgage guaranty insurance company shall compute and maintain adequate case basis
and other loss reserves which accurately reflect loss frequency and loss severity and
shall include components for claims reported and unpaid, and for claims incurred but not
reported, including estimated losses on:


1. Insured loans which have resulted in the conveyance of property which remains
unsold.


2. Insured loans in the process of foreclosure.


3. Insured loans in default for four months or for any lesser period which is
defined as default for such purposes in the policy provisions.


4. Insured leases in default for four months or for any lesser period which is
defined as default for such purposes in policy provisions.