Cal. Code Regs. tit. 10 § 2510.5
The actual loss of the mortgage guaranty insurer on any claim shall be determined as of the time of the settlement of the loss with the insured. In setting up the loss reserves on the case basis as required by Section 12640.16(c), any estimate of loss expected to be paid on any claim, or ultimately to be suffered on any claim settled by acquisition of title to the encumbered real estate or the authorized real estate security (as the term is defined in Section 12640.02(b) of the Insurance Code) shall be the maximum liability of the insurer under its policy of mortgage guaranty insurance until a different estimate of any such loss is supported by an appraisal by a qualified real estate appraiser of the real estate so acquired or which secures the authorized real estate security. No real property or authorized real estate security may be valued at an amount greater than that permitted for the valuation thereof by fire and casualty insurers.
Cal. Code Regs. Tit. 10, § 2510.5