Section 2510.16 - Liability LimitationsThe total liability of mortgage guaranty insurer under a pool insurance policy shall be limited as follows:
(a) To the maximum aggregate ceiling of loss;(b) If a mortgage guaranty insurer agrees to write in excess of twenty-five percent (25%) at risk of the entire indebtedness on individual mortgage loans, through utilization of reinsurance, as provided for in Section 12640.09(c) of the California Insurance Code, the total net liability of such insurer under the pool insurance policy, both directly and indirectly, shall be limited to the actual amount of loss to the insured on each individual loan insured;(c) The determination of the actual amount of loss to the insured shall not be subject to any adjustment resulting in any credit due to deductions, netting, or otherwise, upon resale of the property in the event that the mortgage guaranty insurer exercises its option during the claims period to acquire the property to mitigate its losses, other than that which is described under Section 2510.9(m)(1) of this Article, and(d) The maximum liability of the insurer will be reached when the cumulative actual amount of loss to the insured equals the initial aggregate loss limit under the pool insurance policy.Cal. Code Regs. Tit. 10, § 2510.16
1. New section filed 8-23-78; effective thirtieth day thereafter (Register 78, No. 34). 1. New section filed 8-23-78; effective thirtieth day thereafter (Register 78, No. 34).