(a)�The provisions of Article 10 (commencing with Section 900), Chapter 1, Part 2, Division 1, relating to financial statements, shall apply to mortgage guaranty insurers.
(b)�The unearned premium reserve shall be computed in accordance with the other applicable sections of this code, except that on all policies covering a risk period of more than one year the unearned premium reserve shall be computed in accordance with standards promulgated by the commissioner after appropriate hearings.
(c)�In addition to the contingency reserve required under Section 12640.04, the case basis method shall be used to determine the loss reserve, which shall include a reserve for claims reported and unpaid and claims incurred but not reported, including:
(i)�Estimated losses on insured loans which have resulted in the conveyance of property which remains unsold.
(ii)�Insured loans in the process of foreclosure.
(iii)�Insured loans in default for four or more months.
(Added by Stats. 1961, Ch. 719.)