635.011 Definitions.
165 words·~1 min read·
/fl/title-xxxvii/chapter-635/635-011·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As used in this chapter, the term:
(1)“Mortgage guaranty insurance” means a form of casualty insurance insuring lenders against:
(a)Financial loss by reason of nonpayment of principal, interest, and other sums agreed to be paid under the terms of any note, bond, or other evidence of indebtedness secured by a mortgage, deed of trust, or other instrument constituting a lien or charge on real estate which contains a residential building or a building designed to be occupied for industrial or commercial purposes.
(b)Financial loss by reason of nonpayment of rent and other sums agreed to be paid under the terms of a written lease for the possession, use, or occupancy of real estate, provided such real estate is designed to be occupied for industrial or commercial purposes.
(2)“Contingency reserve” means a special premium reserve which is in addition to other premium reserves required by law and which is established for the protection of policyholders against the effect of adverse economic cycles.