31.05.10.04

.04 Credit Risk Exposure Limits.

A. A financial guaranty insurer's outstanding total liability for municipal obligation bonds, special revenue bonds, and industrial development bonds shall be investment grade to the following extent:

(1) For financial guaranty insurers rated AAA by a nationally recognized statistical rating organization, at least 95 percent;

(2) For financial guaranty insurers rated AA by a nationally recognized statistical rating organization, at least 85 percent; and

(3) For financial guaranty insurers rated A by a nationally recognized statistical rating organization, at least 70 percent.

B. By written request of a financial guaranty insurer, the Commissioner may approve any other level considered appropriate.