<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".02" citation="COMAR 31.05.10.02" title_num="31" subtitle_num="05" chapter_num="10" heading="Contingency Reserve Requirements.">
  <paragraph num="A.">
    <text>In General.</text>
    <paragraph num="(1)">
      <text>In addition to the unearned premium reserve and the liability established for unpaid losses and loss adjustment expenses, a financial guaranty insurer shall maintain a contingency reserve.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The purpose of the contingency reserve is to protect policyholders against loss during periods of extreme economic contraction.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Amount of Contingency Reserve. The contingency reserve shall be computed in accordance with COMAR 31.04.01.04.</text>
  </paragraph>
</regulation>