379.1851.  Definitions. — As used in sections 379.1850 to 379.1869, the following terms shall mean:

  (1)  "Affiliate", a person who directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the person specified;

  (2)  "Individual lender-placed insurance", coverage for individual real property evidenced by a certificate of coverage under a master lender-placed insurance policy or a lender-placed insurance policy for individual real property;

  (3)  "Insurance producer", a person or entity, or its affiliates, required to be licensed under the laws of this state to sell, solicit, or negotiate insurance;

  (4)  "Insurer", an insurance company, association, or exchange, or its affiliates, authorized to issue lender-placed insurance in this state;

  (5)  "Investor", a person or entity, or its affiliates, holding a beneficial interest in loans secured by real property;

  (6)  "Lapse", the moment in time in which a mortgagor has failed to secure or maintain valid or sufficient insurance upon mortgaged real property as required by a mortgage agreement;

  (7)  "Lender", a person or entity, or its affiliates, making loans secured by an interest in real property;

  (8)  "Lender-placed insurance", insurance obtained by a lender or servicer when a mortgagor does not maintain valid or sufficient insurance upon mortgaged real property as required by the terms of the mortgage agreement.  Such term shall include insurance purchased unilaterally by the lender or servicer, who is the named insured, subsequent to the date of the credit transaction, providing coverage against loss, expense, or damage to collateralized property as a result of fire, theft, collision, or other risks of loss that would either impair a lender, servicer, or investor's interest, or adversely affect the value of collateral covered by limited dual interest insurance.  Such term is limited to insurance purchased according to the terms of a mortgage agreement as a result of the mortgagor's failure to provide evidence of required insurance;

  (9)  "Loss ratio", the ratio of incurred losses to earned premium;

  (10)  "Master lender-placed policy", a group policy issued to a lender or servicer providing coverage for all loans in the lender or servicer's loan portfolio as needed;

  (11)  "Mortgage agreement", the written document that sets forth an obligation or liability of any kind secured by a lien on real property and due from, owing, or incurred by a mortgagor to a lender on account of a mortgage loan, including a security agreement, deed of trust, or any other document of similar effect, and any other documents incorporated by reference;

  (12)  "Mortgage loan", a loan, advance, guarantee, or other extension of credit from a lender to a mortgagor;

  (13)  "Mortgage transaction", a transaction by the terms of which the repayment of money loaned or payment of real property sold is to be made at a future date or dates;

  (14)  "Mortgagee", the person who holds mortgaged real property as security for repayment of a mortgage agreement;

  (15)  "Mortgagor", the person who is obligated on a mortgage loan pursuant to a mortgage agreement;

  (16)  "Person", an individual or entity;

  (17)  "Real estate owned property", property owned or held by a lender or servicer following foreclosure under the related mortgage agreement or the acceptance of a deed in lieu of foreclosure;

  (18)  "Replacement cost value" or "RCV", the estimated cost to replace covered property at the time of the loss or damage without deduction for depreciation.  Replacement cost value is not market value, but it is instead the cost to replace covered property to its pre-loss condition, as best determined under section 379.1855;

  (19)  "Servicer", a person or entity, or its affiliates, contractually obligated to service one or more mortgage loans for a lender or investor.  Such term shall include entities involved in subservicing arrangements.