Section R. 500.1232 - Mortgage and land contract quaranty insurers; unearned premium reservesRule 2.
(1) The unearned premium reserve for premiums paid in advance on mortgage and land contract quaranty insurance policies covering a risk period of more than 1 year shall be calculated based upon the annual unearned premium factor specified in table 1.(2) On premiums paid in advance for coverage period in excess of 15 years, the unearned portion of the premium during the first 15 years of coverage shall be the premium collected minus an amount equal to the premium that would have been earned had the applicable premiums for 15 years' coverage been received. The premium remaining after 15 years shall be released from the unearned premium reserve pro rata over the remaining term of coverage.Mich. Admin. Code R. 500.1232